Dundee United have reported a wage to turnover ratio of 120% in their annual accounts for the year ending June 2020.
Although the Tannadice outfit released a report in April outlining a loss of £3m — down from £3.76m a year prior — the full accounts were made available by Companies House on Wednesday.
United increased their turnover from £3.12m in June 2019 to £3.91m, owing much to a 37% increase in gate receipts, substantial prize money for winning the Championship and more than £500,000 banked via retail sales.
It was confirmed that the club earned £425,929 from the sale of Scott Banks to Crystal Palace, compensation paid for manager Robbie Neilson by Hearts and “additional monies from previous player sales”.
However, total employee salaries rose from £3.7m to £4.1m as they sought to secure their return to the Premiership.
Nevertheless, the 120% wage to turnover ratio is still a notable reduction from the 133% posted in 2019.
Challenges ahead
Looking ahead, it was confirmed that — like many other clubs — tackling the pandemic will have a major impact on the balance sheet for the year ending June 2021.
It was stated: “Internal financial projections for the year to 30 June 2021 are predicting a further operating deficit, principally due to the loss of an estimated £2.1m of matchday income as a direct result of all matches played without spectators in the stadium.
“The club is also incurring significant incremental costs in meeting all the Covid-19 regulations imposed by the government and football governing bodies, including regular testing of all first team staff and players.”