Losses rocket to £9m at Preston North End

LOSSES soared at Coca Cola championship side Preston North End from £1.1m to  £9.1m after striving unsuccessfully to win promotion to the Premier League.

The ambitious Lancashire club – which lost in the play-off semi finals to Sheffield United – admitted that such levels of loss was “unsustainable” and that it was reliant on shareholder Guild Ventures – a company owned by businessman Trevor Hemmings – for support.

Last night Preston said it had extended a £10.1m loan from Guild to the end of Janaury 2011, and said that it had agreed to borrow a further £1.3m from Guild, conditional on Bank of Scotland increasing the club’s overdraft by another £1m.

Turnover in the year to the end of June was flat at £8.5m.

Chairman Derek Shaw said despite “once again knocking on the door of the Premier League”, from a financial point of view, it had been a “very challenging year.”

“Players’ wages were yet again higher than the previous year and we did not have a significant player sale in the financial year.

“It is becoming increasingly difficult to continue to meet the expectations of fans who want the club to be competing for promotion every year. Of course, we all want to see this level of success.

“However, the competition from the relegated Premier League sides and their financial resources makes this extremely difficult.”

Player wages rose 25% in the year from £8.9m to £11.2m.

To balance the books PNE has previously relied on player sales – the previous year saw a £5m+ transfer of striker David Nugent to Portsmouth.

Mr Shaw added: “We have once again been heavily reliant on the assistance of our major shareholder, Guild Ventures Limited for continuing financial support. Without this we certainly could not continue to compete with the cost of the squad we have maintained which remains well in excess of our total football income.”

Mr Shaw said a number of fringe players had been released to curb the wage bill since the year end.

He said the recession had made it difficult for the club to expand hospitality and advertising revenues.