Cardiff City FC has reported a £12m loss for the year ending May 31, 2011.
The loss is detailed in the accounts of the club’s holding company, Cardiff City Football Club (Holdings) Limited.
The accounts cover the 2010/11 season, when Dave Jones led the Bluebirds to the brink of Premier League promotion.
But the season ended in disappointment when Cardiff City lost to Reading in the playoffs.
The £12m loss followed a £900,000 loss in the 2009/10 season, the accounts show.
The biggest change being profit on disposal of fixed assets, which dropped from £11.4m in 2009/10 to £460,000 in 20010/11.
This related principally to the sale of Ninian Park in September 2009, together with the sale of the neighbouring hotel and House of Sports sites.
The accounts also showed the club’s turnover dropped from £16.9m in 2009/10 to £15.9m in 2010/11.
In the directors’ report, club chief executive Alan Whitely said while the dream of reaching the Premiership wasn’t realised, increased sales in season tickets, ticketing, hospitality, commercial and retail revenues were achieved.
Mr Whitely writes: “The club continues to face the challenging financial environment presented by the Championship competition, as illustrated by the comparable operating loss year-on-year, despite significant reductions in back-office costs – these gains being absorbed by increased direct football costs, whilst the club did not have the benefit of the one-off profits from asset disposals available in the year to May 2010 to bolster its final result for the financial year.”
Mr Whitely said the club received “substantial” new investment, principally from Malaysian businessmen in May 2010, together with the restructuring of a number of new major creditors.
“Following this the club was able to commence settlement of a number of its longstanding debts including its historic tax liability,” he writes.
“The new investment has stabilised the club’s position, allowing the club to work towards the delivery of a coherent and sustainable business strategy, as formulated by the new board and its management team.”
Looking to the future, Mr Whitely adds: “In addition whilst their funding is not guaranteed, the new investors have indicated that providing the business develops as planned, they will continue to support the club in the foreseeable future and provide additional finance in order that it can settle its liabilities.”
