Dunfermline have set up a subsidiary company geared at providing future players for the club.
The Pars have founded Black and White (Dunfermline) Ltd, which is entirely devoted to youth football. The company was formed in September 2010 and is believed to be unique in Scottish football.
The Pars are challenging for promotion back to the Scottish Premier League, and revealed that they have an operating loss of £1,098,558 for the 2009/10 financial year.
The financial results were issued by the club this week. Turnover fell from £2,606,046 in 2009 to £1,807,804 and the club still have more than £9 million owed to various creditors.
Dunfermline FC managed to cut their costs of paying employees, including its players, from £2,238,780 in 2009 to £1,784,848 in 2010.
The average gate for Dunfermline FC was 2923 for the financial year up to May 31, 2010, but this is forecast to rise to 3566 this season. The main reason given is the inclusion of Falkirk FC and Cowdenbeath FC in the first division.
The club’s operating loss increased from £795,724 in 2009 to £1,098,558 in 2010. Chairman John Yorkston blamed the recession and also the severe winter weather for part of this. However, he said the club is firmly focused on promotion and has formed a company aimed at producing future players for the Pars.Challenges”As a result of the continuing economic recession, coupled with one of the harshest winters in decades, the football industry in general had a difficult season last year with reduced attendances and lower than expected commercial income,” he said. “Despite these challenges, the club has been able to continue with investment in the first team and 2010/11 has been extremely positive.
“In order to improve the focus on youth development, the club has created a subsidiary company devoted to youth football called Black and White (Dunfermline) Ltd, and all our efforts to encourage players for the future will be channelled through this company.
“Further investment has been undertaken at our Pitreavie training ground with the replacement of artificial pitches, which will not only be a huge asset to the community but also provide a revenue for the club. They will be available to both the first team and all of our youth teams for training during the winter months.”
Chief executive Bill Hodgins said that the fall of £800,000 in turnover was mainly down to a lack of a cup run and a 23% drop in season ticket sales. Mr Hodgins said hospitality numbers continue to grow year on year and forecast the club will break even by May this year.
“In the face of the club loss, we have been able to continue investing in the first team and the start to the season has been extremely positive,” he said. “There are exciting plans under way for our training and five-a-side facility at Pitreavie with the objective of replacing the existing artificial pitches and creating a full-size 3G pitch through partnerships with various government bodies.”
He added, “In order to improve the focus on youth development, the club has created a subsidiary company devoted to youth football called Black and White (Dunfermline) Ltd and all our efforts to encourage new players for the future will be channelled through this company.”