York City reveal annual loss of £500,000

York City have reported an operating loss of £500,000 for the financial year ending 30th June 2017 after returning to the National League.

That’s a marked increase of £200,000 from the deficit incurred during the club’s final season in the Football League.

However, the reduction in parachute payment from the Football League was slightly met by the prize money from reaching the FA Trophy final, although total overall income from central funding, donations, transfer fees and sponsorship fell by around £310,000.

There was also a reduction in net gate income, once again partially helped by gate receipts from the FA Trophy final, leaving a net reduction of around £140,000.

This in turn required playing costs being reduced by around £265,000, while there was a negligible increase in the general overheads of around £15,000.

There was a central funding reduction of £240,000 during 2017-18, while for the final season at Bootham Crescent, and taking into account the loss of Youth funding, there will be a further shortfall of £500,000 – meaning an overall reduction in central funding from 2015-16 to 2018-19 is expected to be around £1,000,000.

As usual the principal expense for the club in 2016-17 was wages, and total playing costs, including player and football management wages, bonuses as well as administration and match day wages, in total represent around 87% of the overall income of £2,167,768.

Meanwhile, the loan balance, including accrued interest, with major shareholders JM Packaging stood at £5.8m.

“Following the changes previously announced, the new Board will seek to increase income and reduce costs,” Pete Rookes, the club’s Financial Management Consultant, told York’s official website. “Although with vastly reduced income and the move from Bootham Crescent still over a year away, the size of this task should not be underestimated and 2018-19 is expected to be a challenging season.”