Birmingham City Football Club's profits have been slashed by more than £4 million to almost £1.6 million over the course of a year, the club announced yesterday.
As Blues profits fell from £5.8 million in 2003-4, the Premiership strugglers also recorded a declining turnover, down from £45.3 million to £42.7 million last year.
The figures, for the year ending August 2005, were described as "satisfactory" by the club's co-chairman, David Sullivan.
The club also announced in its preliminary statement of final results an increase in operating costs, from £30.9 million to £34.1 million, due to an increase in wages.
The reduced turnover was attributed to a decrease in television revenues and a cut in Blues' Premier League Merit Award payment, which is linked to league position achieved.
Sullivan said: "I am pleased to report that 2004/5 was a satisfactory year for Birmingham City, albeit not as good as the previous year."
The club's salary payments represented 64 per cent of turnover, a significant rise from 51 per cent in the previous year.
"The current season has been difficult," said Sullivan. Blues have been in the relegation zone for most of the season.