Bristol City Football Club’s annual accounts have revealed record breaking losses of £11.8million for the twelve months up until 31st May 2010.
Club chairman Steve Lansdown said the loss is a result of trying to establish the Npower Championship side Bristol City as a major football club and “reflects the investment made in the playing squad, management structure, training ground and stadium developments.”
Bristol has received planning permission for a new £92million stadium but an application for the area to become a town green has now been recommended for approval which could jeopardise the project entirely. Although as Football Trade Directory reported earlier this week the club has been boosted by a poll showing that 69% of Bristolians asked are in favour of the new stadium.
In an official statement the chairman explained: “By now we had hoped we would have started the construction phase and been able to draw down on the facility we have arranged for this purpose.
“Certain fees have been incurred by the group pending construction and should be recoverable against the project when it gets underway, which will help our cashflow. However, until there is certainty over the project it would be wrong of us to draw any funds down.”
Mr Lansdown also blamed a drop in ticket revenue, the recession, a poor start to the new season and a higher wage bill as contributing factors to the club’s financial problems going forward.
Looking to the future the chairman added: "In the short term the support of the board will see the club through these difficult times; in the longer term, however, it needs to increase its turnover and control its costs.”