Bristol City Football Club has confirmed it will undertake a financial restructuring plan as the club attempts to cut down the size of its debts.
Bristol City Holding Limited had £35 m of debt removed from its balance sheet following successful negotiations between the board and majority shareholder, Steve Lansdown.
The remaining debt is interest-free, with no fixed repayment date, and any new funds acquired by the football club will be introduced as equity instead of further debt.
The company’s accounts showed a loss of £12.9m for the year ending 31 May 2013, compared to a loss of £14.4m for the previous financial year.
Turnover decreased from £11.8m to £9.9m, while staff costs dropped from £18.6m to £16.8m.
Doug Harman, chief executive of Bristol City, said: “We have made it clear that financial prudent and control is one of our five strategic pillars.
“Actions speak louder than words and after completing this transaction the football club has cut its total debts by nearly 65% and what remains is at no ongoing cost to the club.”
Keith Dawes, in the chairman’s statement to accompany the 2013 Accounts, wrote: “I said at the Annual Meeting in December (2012) that we face many challenges in the months ahead and that has proved to be the case.
“Much work has taken place to reduce long term costs during the year, although this has proved difficult with players on fixed term contracts.”
Harman added: “The club continues to make significant progress in reducing its annual losses and shaping the way in which it does business, while seeking to ensure it remains competitive on the pitch.
“This is a difficult balancing act, but is crucial to the long term sustainability of the club.”