Wrexham reveals nearly £1m losses

Wrexham FC has announced losses of £940,482 for the year ending June 2008.

The north Wales club was relegated from the Football League at the end of that season to the Blue Square Premier.

Wrexham says it also expects similar losses for the next financial year, but these will be funded by chairman Geoff Moss via an interest free loan.

"Relegation meant a reduction in income and our failure to be promoted straight back has resulted in a further loss of income," read a Wrexham club statement.

"The continued funding of new management, new players and loan players during the 2008-09 season will mean that we will have similar results for the year ending 30 June 2009.

"Whilst we managed to recover from a disappointing opening two months of the [2008/9] season, our attempts to gain a big pay day via promotion; a play-off final; or an FA Trophy final did not materialise."

Wrexham's statement also stressed that loan interest charged during the year: "...relates to interest paid on loans from third parties, made to the club via Mr Moss and Mr Dickens [former owner Neville Dickens] - neither has received any benefit from interest on any loan."

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The - as yet unaudited - accounts also show that on 6 October 2008 the club managed to repay £300,000 of a £500,000 loan provided by former Wrexham AM Dr John Marek.

The club says it is confident that better times are ahead thanks to redevelopment plans for its Racecourse Ground home, which will "clear the debts" of Wrexham FC.

In April, Wrexham councillors approved the planning application for a project to build 800 student flats on the site.

As part of that process, it has been announced that Moss will sell his 100% shareholding in Wrexham FC to Wrexham Village Ltd - the development company created to handle the project.

"This company will buy the development land from the club and in return clear the debts of the club and also invest desperately needed working capital into the club," the statement continued.

Wrexham Supporters' Trust had previously said it was concerned over the "element of risk" in the scheme if the club's assets were used as security against the redevelopment.

Wrexham FC went into administration in 2004 with debts of around £4m, before being bought out by a consortium led by local businessman Dickens.

Dickens' 50% shareholding was bought in 2008 by Moss, who then had a controlling interest in the club.