York City have announced a loss of £413,590 for the year ending 30 June 2008. Loan interest, amounting to almost £200,000, represents a significant proportion of the sum lost by the Conference side. Approximately £150,000 of that interest relates to the Football Foundation loan, acquired by the club to regain ownership of their KitKat Crescent home from three former directors. The remainder is made up of the accrued interest on the 75 per cent majority shareholders’ JM Packaging’s loan to the club, but that money is not due to be paid until the club has moved stadium.
York City have announced a loss of £413,590 for the year ending 30 June 2008. Loan interest, amounting to almost £200,000, represents a significant proportion of the sum lost by the Conference side. Approximately £150,000 of that interest relates to the Football Foundation loan, acquired by the club to regain ownership of their KitKat Crescent home from three former directors. The remainder is made up of the accrued interest on the 75 per cent majority shareholders’ JM Packaging’s loan to the club, but that money is not due to be paid until the club has moved stadium. A rise in the playing budget, as the Minstermen sought to build on their play-off success the previous season, also saw total salaries swell to £864,305 which represents 74 per cent of turnover. The total income for the year was £1,152,419, which was slightly improved on the previous 12 months despite gate receipts dropping by £137,112 to £494,372 as the team failed to meet expectations. Fans dug into their pockets to made donations totalling £77,257.
The loan interest payments to the Football Stadia Improvement Fund have now been placed on a moratorium and the debt will be paid when the ground is sold. Finance director Terry Doyle commented, ‘What has become evident is that our income cannot, on its own, sustain the Football League structure we have tried to maintain at the club and produce a team which can compete effectively in the Conference. We continue to look at all aspects of the club to identify where savings can be made, but the reality is without JM Packaging’s support the club would be in a difficult trading position. It is likely that we will continue to require further funding from JM Packaging this year.’