WREXHAM FC is debt free say club directors - but they have warned current levels of spending on players ‘cannot be sustained’.
Directors have published their draft statement of accounts for the year ending June 30, 2009.
The move to the club becoming debt free was achieved after Wrexham Village Ltd bought development land from Wrexham FC for £6million.
The amount was enough to pay off debts from both its pre and post-administration period, and losses sustained after that.
The land had been valued by professional valuers in March 2009 at around £3m.
And the club ‘internally valued’ the stadium and the land and buildings at Colliers Park, Gresford, at £2.75m.
A statement by the directors reads: “Therefore we consider that Wrexham Village Ltd has paid a substantial premium to the club and more than recompensed it.”
The statement by directors continues: “Whilst there are normal trading related creditors disclosed in the accounts, plus a £145,000 loan due to Dickens Group (which is interest free and for which there is no pressure regarding repayment), we believe that these do not constitute ‘debt’ and as such the company is therefore debt free.”
Income over the course of the year fell nearly £1 million compared to the previous year - including a £300,000 drop in match receipts and a further fall in league funding.
A club spokesman said: “The principal reason for the continued losses was our determination to offer both Brian Little initially and Dean Saunders thereafter, sufficient funding to seek promotion.
“Obviously this has been unsuccessful. We believe our player and management expenditure of £1.4m was a valid attempt to regain League status but that it cannot be sustained at these levels of income.”
The statement adds: “The summer of 2010, with most player contracts ending, allows us the opportunity to have a fresh and realistic approach to next season's squad. Discussions are already underway with (manager) Dean Saunders regarding this.”