MOVES aimed at making Sheffield United a self-sustained business were outlined today in its annual report and accounts which saw the League One club announce a retained loss of £13m.
The loss of revenue from television and commercial income (£4m) following relegation and the retention of players on high wages in an effort to secure an immediate return to the Championships impacted significantly on the Blades
Kevin McCabe, chairman of Sheffield United plc, said: “The financial impact of a season back in League One is self-evident, reinforcing the need to move forward as a financially sustainable organisation still having clear aims and objectives of playing football in the higher echelons of the English league pyramid.
“On the playing side the transition to recruit younger players on wages the club is structured to afford is well under way, also enabling us to comply with new Football League financial control mechanisms – the Salary Cost Management Protocol. In simple terms, driven by Football League enforced regulations, this club, like any other in Leagues One and Two, will now only recruit players its revenues can support.
“The focus going forward will be to develop and grow a high performing player talent base, maintaining a sustainable business where we can see a maximum return on our assets and ensuring we are a true family and community club,” said Mr McCabe who added that parent company Scarborough United Group’s capital raising initiatives with leading Nigerian businessman and banker Jacob Esan were continuing.
For the year ended June 2012, turnover fell by £4.1m to £10.2m. The loss on continuing operations was £12m (2011: £12.3m). Player trading in the year contributed a profit of £1.6m offsetting some of the interest costs (£2.6m) taking Sheffield United plc to a retained loss of £13m (2011: £13.6m).