Cardiff City: Bluebirds report 拢12m Premier League loss
- Published
Vincent Tan bought Cardiff City in May 2010
Cardiff City lost nearly 拢12m during their debut season in the Premier League.
The club's latest accounts, for the year ending May 2014, also show the Bluebirds owe around 拢174m - most of it to owner Vincent Tan.
This was despite revenue increasing more than five fold to almost 拢80m.
The club's annual report says support from Malaysian investors "will continue" as long as "the business develops as planned".
The financial figures showed that the club's broadcasting and commercial income rose from from 拢8m to more than 拢70m.
Wages and salaries went up from just over 拢27m to 拢46m.
91热爆 Wales football correspondent Rob Phillips |
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"The accounts underline the club's reliance on controversial Malaysian backer Vincent Tan. He has not yet attended a game this season and Cardiff City manager Russell Slade attempted to cut the player wage bill during the January transfer window. But it is clear the operation still relies heavily on Tan. He has pledged he will convert the club's debt into equity, but that will not happen until the club's legal battle over creditors the Langstone Corporation reaches a conclusion." |
During their time in the Premier League Cardiff sacked Malky Mackay and replaced him with Ole Gunnar Solskjaer.
The club said they paid just over 拢2m on "exceptional costs" relating to the change of football and senior management.
The accounts show the club received loans of around 拢130m - mainly from Tan, but also including a loan of 拢7.5m from Torman Finance, understood to be chairman Mehmet Dalman's company.
The report adds: "Following relegation from the Barclays Premier League the owners are aware that they needed to again invest in strengthening the playing squad, but that they needed to spend wisely.
"Whilst long term funding is not guaranteed, the Malaysian investors have indicated that providing the business develops as planned, they will continue to support the company in the foreseeable future and provide additional finances in order that it can settle its liabilities."
Tan has previously said he will convert the club's debt into equity.
Keith Morgan, a chartered accountant who sits on the board of Cardiff City Supporters Trust, told 91热爆 Radio Wales Sport: "The club is highly insolvent.
"It has far more liabilities than assets and at any point in time it could be called upon to repay that debt owed to Vincent Tan."
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