Watford Football Club has revealed a £2.5m pre-tax loss for the six months ending December 2010 as the npower Championship club aims to become self dependent.
The Hornets attributed the loss to no player sales being made during the period. In a statement released by current owners Watford Leisure PLC, Watford chairman Graham Taylor commented: “This last six-month period does not include any instances of player sales, which is a key part of the model that underpins our stated aim to be a sustainable business.
"Given the nature of the two-part football transfer market, (the summer and January trading windows), our focus on ensuring we remain true to our business plan means that failure to trade in either window inevitably leads to the need for a working capital injection from alternative sources."
Revenue was up to £5,437,000 although match day revenues and season ticket income fell. Commercial income fell to £862,000 whilst media revenue increased by £324,500 to £2,573,500.
The statement added that the club was ‘dependent on the continued financial support of certain shareholders and a director and/or alternative sources of funding including most importantly player sales.’
Taylor continued: "I feel it important, right at the start of my report, that I should once again place on record the club’s gratitude to the club’s major shareholder, Fordwat Limited – and Lord Ashcroft in particular, for continued support during a time when the Club is certainly attempting to live to the values set out in its five-year rolling business plan ‘The Watford Way’."
Lord Ashcroft recently agreed to the sale of the club to Watford Football Club Limited who have made an offer of £440,000.