(Pic Credit: Wikimedia Commons)
The Tangerines, who were relegated last year posted an enormous loss of more than £2.4 million – it’s hard to believe that the same team were fighting for a place in the UEFA Conference league only one season ago.
United’s total wage costs during the 2022/23 campaign stood at over £6 million following a signing spree that saw the likes of Steven Fletcher, Aziz Behich and Dylan Levitt arrive in Tayside.
Those costs were up by 18% compared to the 2021/22 campaign, while the wage-to-turnover ratio rose to 86% from 71%.
While the likes of Glenn Middleton, Mark Birighitti and Levitt arrived for undisclosed fees, United spent a combined £377,000 on new arrivals.
With the players’ wages piling up too it looks certain that the team just cannot carry on like this and either must sell its assets or gain promotion, this has left American owner Mark Ogren wallowing.
The wage bill was a staggering £6.9 million, which is an increase of nearly 20% from last year left the chairman to say, “quite clearly the 2022/23 season was a difficult one for the club.”
Ogren, who has overseen more than £13 million of investment since arriving in December 2018, told Dundee United’s official website: “A full review was conducted in the summer across the club.
“Dropping down to the Championship is extremely challenging financially for the business. The board estimate a £2-3 million drop in turnover.”
They currently sit top of the championship, albeit on goal deference, after beating Inverness Caledonian Thistle 1-0 via a late goal from Tony Watt. This proved to be a crucial moment as United were able to get one over on former player and now current Inverness manager Duncan Ferguson.
The cost of sacking managers also has a part to play in these worrying finances as they axed Jack Ross, Liam Fox and then spent a pretty penny on brining in the former Aberdeen and St Mirren gaffer Jim Goodwin.
Goodwin couldn’t help his team avoid the drop last year, but he was trusted to get the job done this year and steer his team onto promotion.
Ogren added: “The board are confident that despite the difficulties of 2022/23, we remain on course to achieve the long-term aim of being a sustainable and leading competitor within the Scottish Professional Football League.”
United’s AGM will take place in Lounge 87 at Tannadice Park on February 1.
Is this type of spending sustainable for a Scottish Championship club?