A loss of £800k on turnover of £2m implies costs of £2.8m, a 40% loss, which would be alarming for most companies.
In business that means two options, which can be taken forward jointly:
1. Increase revenue
2. Reduce costs.
We look to have tried (and failed) to increase revenue (eg concerts) so we must now look at costs.
This does not have to mean players and their contracts, but we need to look at all the non playing staff and see what economies are possible. Do we need a staff of 90 odd?
There may be “non cash” items in the costs, for example if we are depreciating assets over a defined period, but I would not expect any such items to be substantial.
The other key element is cash flow and whether it is positive, or dependent on ongoing loans from Directors.
Looking forward, as well as a thorough review of all costs, we should get any realistic prospects tied up on long term contracts if possible so we maximise the chances of decent transfer income.
And a win on Friday would also help immensely!