The parent company of Salford City, the club co-owned by a raft of former Manchester United stars, lost more than £4.7m last year according to new figures.
Accounts released by Project 92 Limited for the year ending June 30, 2021 show the company was losing an average of £91,000 per week. Project 92 Ltd was formed by ex-United stars Gary Neville, his brother Phil, Ryan Giggs, Paul Scholes, David Beckham and Nicky Butt. Each of the six former players, together with Singaporean business magnate Peter Lim, own the League Two club.
The latest accounts show that Project 92 has total losses of over £15million since it was set up in 2015 and its liabilities are more than £19million. The club borrowed more than £7m in the two years prior to the release of their most recent accounts (£3.55m in 2021) , possibly through investors, while their assets were valued at £3.7m.
Salford are in only their third-ever season in the Football League, having won promotion in 2019. But Gary Neville has repeatedly insisted the aim is to achieve promotion higher up the pyramid. The accounts also show that Salford City bought players totalling £156,000 in 2020/21 but offset that by raising £237,000 in player sales.
In terms of wages, City's wage bill increased by 10 per cent from the previous year. It shows for every £100 of income they are spending £143 on salaries. Since the purchase of the club the former United stars have invested heavily, transforming the club's infrastructure, turning them professional and guiding them into the EFL.
Within the statement is a strategic report from the club's directors' that says: "Despite promotion to the EFL for the first time in the club's history in 2018-19, the club is yet to enjoy a full season in the EFL without restrictions; meaning that we have not yet managed to maximise potential revenue opportunities against the increase in operations costs and administrative expenses that are associated with running an EFL club.
"Investment continued to be made both on and off the pitch. New computer and administration systems were introduced club-wide, additional staff employed and work continued to upgrade the facilities at the Peninsula Stadium. This investment running alongside the recruitment and amassing of a playing squad deemed capable of achieving the desired objective of promotion from League Two to League One."
The new figures - brought to light by football finance expert Keiran Maguire - will only strengthen the owners' desire to win promotion this season. The Ammies host Port Vale on Tuesday night knowing a win will move them into the League Two play-off places with six games remaining. Manager Gary Bowyer was appointed in the summer but has seen both of his predecessors pay the price for not reaching the play-offs.
Richie Wellens was axed in March 2021 - just a week after winning the EFL Trophy - whilst Graham Alexander got the chop in October 2020 just weeks into the new season.
Neville would later go on to admit the axing of Alexander was a mistake. He said on Sky Sports last year: "When you're an owner and you've got a football background, your passion is the dressing room, the field and the grass and you can't do anything about it, you're making decisions from a distance. We don't go and watch training. From our point of view, last season I have to take the blame for it. Every season that we haven't gone up, I've made bad decisions or we haven't done certain things well.
"Last season, Graham Alexander should never have left this club. He should never have left, I should never have made that decision that I made. It goes against everything that I believe in and that's what owning a football club does to you, it takes you to that place where you do things that you don't believe you ever would do."
Regarding the latest set of financial accounts, Salford City have been contacted for comment by Mirror Football .
