Minstermen announce major losses
Despite winning twice at Wembley and achieving their ultimate dream of a return to the Football League, York City are set to announce a £467,000 operating loss for last season.
|"Operating losses of this size were inevitable if York City wanted to challenge for promotion" - Peter Rookes|
However, their subsequent long-awaited elevation back into the Football League means City should break even this time around as the club are now subjected to the Salary Cost Management Protocol, which effectively means they can only spend a maximum of 55% of their total income on player salaries, bonuses, transfer fees and expenses. Meanwhile, additional Football League central funding together with available monies for the club's youth programme should also make a massive difference.
The combined income from last season's glorious FA Trophy and Blue Square Bet Premier play-off final triumphs totalled £235,000, according to the club, with the eventual operating loss just £2,000 short of their originally budgeted figure.
Those losses have once again been covered by club owners JM Packaging on an interest-free basis repayable on the relocation to a new stadium. That sum now stands at £1.32 million.
"This is the cost of promotion to the Football League," York's financial management consultant Peter Rookes told The Press. "Throughout the club's time in the Conference, operating losses of this size were inevitable if York City wanted to put together a team that would compete and challenge for promotion.
"The accounts show that maximum resources were made available to Gary Mills to enable promotion to the Football League," he added. "Income from two successful Wembley trips totalling £235,000 ultimately helped keep the losses in line with the original budgets."