Huge Loss for Southampton

Southampton football club, who visit Edgar Street for a friendly next Tuesday evening, are expected to show a huge loss when their next accounts are released.

The club has released some provisional details of the latest financial situation for the year to 30th June 2008 and director David Jones has expained some of the reason behind the poor results.

"With the loss of the parachute payment from the Premier League and reduced ticket and commercial income, revenue year on year looks to have dropped to around £14m and with the club's cost base this forecasts a gross loss of around £8m and an operating loss before player trading of around £13m."

Chairman Rupert Lowe said that income was down by about 35% but players and coaches wages hasd risen by 15%.

Although the club made £12m from transfers, the loss before tax will be around £5m.

"The financial results will show an increase in the level of borrowings which has necessitated extensive discussions with the company's bank and loan note holder.

"With little spare family silverware left to sell, we will continue to reduce the costs at operating levels."

In some ways the problems at Southampton are similar to those at Hereford United over a decade ago when costs increased whilst the Bulls tried to hold onto their League status.

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