Cheltenham Town announced this morning that they have an operating loss of £531,000 for the 2023 financial year.
The figure means their finances have swung by £943,000 since their profit in 2022 of £412,000.
With the club in the midst of a survival battle in League One, the financial figure will come as a shock and puts more urgency on the importance of staying in League One this season.
In the course of the last financial year, the club recorded their second-highest-ever finish in the EFL coming 16th in League One as well as reaching the semi-finals of the EFL Trophy losing to Plymouth Argyle on penalties.
They also purchased their training facility in the north-west of the town which may be one of the reasons for the loss.
The club issued a statement saying: “The club has not been immune from the current set of economic challenges.
“The number of fans coming through the turnstiles remains good despite a difficult campaign, having achieved a record number of season ticket holders in the summer.”
The total revenue at the club was reduced by £88,000 compared to last year, the club explained that reduced gate receipts, EFL and Premier League subscriptions and, player sales and manager compensations all contributed.
While prize money, thanks to the EFL Trophy run, rose by £132,000 as well as a £318,000 rise in commercial revenue.
The biggest rising costs were the rise in wages, as they grew £418,000 as the club looked to continue competing both on and off the pitch.
The club said: “Player sales have mitigated the challenges we continue to face in the current financial year with costs rising at a greater rate than revenue.
“As a result, the Board has embarked on a strategic mapping process to identify the key areas for growth and stability alongside the ongoing task of League One survival.”
They have said the club will continue its approach of player development through the academy as well as focusing on bringing young talent in through recruitment.
They earmarked the new Sky TV deal as a reason for hope of increased funds from the start of the 2024/25 season.
As well as suggesting that the board are: “actively looking at all areas of the football club to ensure continued financial sustainability is maintained while competing at the highest level possible.”
The club statement finished by saying there will be another fans forum before the end of the season and details will follow shortly.
