DUNDEE UNITED REDUCE LOSSES DESPITE SUBSTANTIAL INCOME DROP

Reporting the Annual Accounts for the year ended 30 June 2017, Chairman Mike Martin reinforced the implications of playing in the Ladbrokes Championship. The main take-aways include:
 
• £2.2 million of cost savings across the Club
• Total losses reduced by a third from £1.5 million to £1 million
• Operating losses narrowed by 42%
• Revenue, due to operating in the Championship, dropped by 24%
• Debt reduced to £1.8m from £7.3m ten years ago
 
Dundee United continues to battle the effects of Championship football and the severe financial disparity when compared to participation in the Premiership. Promotion to the Premiership therefore remains the priority for the Club and the Board remains committed to financing the infrastructure and resource required to provide the best opportunity possible for that outcome.
 
The Board remains confident that a combination of new revenue streams, including investment in new and improved match day hospitality facilities, balanced with further selective loan finance and carefully targeted cost-cutting will enhance the Club’s Premiership ambitions while addressing the company’s current financial challenges.
 
The company’s revenue dropped by 24% to £3,499,612 (2016: £4,613,609) due, in the main, to reduced prize money connected to finishing 3rd in the Championship (2016: 12th in Premiership) and the associated drop in match attendances. The continued loyalty of Dundee United supporters attending games at Tannadice was not enough in itself to offset the loss of income from the larger travelling supports of Premiership teams including the loss of two derby games.
 
Income was also down due to the failure of the team to progress beyond its introduction at Round 4 of the Scottish Cup compared to a semi-final appearance the season before. While the Club enjoyed trophy success in the Irn-Bru Cup and progressed to the Premiership Play-Off Final, both events had a neutral net financial effect due to the related costs and SPFL levies.
 
Reduction in income was however offset by cost savings of £2.2 million across the Club. Expenses were cut by 30% as the Board took decisive action to deal with the change of footballing circumstances.
 
The Board feels that this year’s accounts demonstrate its commitment and ability to address the aforementioned challenges. The Board would also like to extend its thanks for the support of all its shareholders, staff, corporate partners and supporters.
 
Chairman Mike Martin said, “The Club continues to address the financial challenges of life out with the top league. While we remain in the Championship we will continue to incur losses. The support of our corporate partners and fans continues to be impressive and we are very grateful for this.
 
“Promotion to the Premiership remains the priority for the Club and the Board are committed to financing the infrastructure and resource required to achieve this.”