Southampton struggling off the field, as club expect £5m pre-tax loss

The loss of parachute payments from the Premier League, reduced ticket revenue and commercial income have led to the poor financial showings for the financial year ended June 30, 2008. 

The official results will be published in 12 weeks time and are expected to show a revenue of £14million and increased levels of borrowing.  

Lowe: Regained his grasp on the club in March

Following the club's poor on-field performance last season, newly-installed chairman Rupert Lowe has moved to ease the situation by appointing Dutch coach Jan Poortvliet and is optimistic about the coming Championship campaign.  

Lowe said: 'The directors are aware that this is clearly not sustainable and are concentrating on reducing costs, however the directors remain hopeful about the prospects for the forthcoming season.  

'Jan Poortvliet and Mark Wotte are very excited about what will be a young dynamic team determined to play fast and attractive football.'

Earlier this month, the hard-up Championship club forfeited a chunk of the transfer fee owed by Tottenham for Gareth Bale in a bid to ease their immediate financial problems.

Spurs paid Saints an initial £5million for the Wales international left-back last summer, while agreeing a further £5m based on appearances.

But Southampton's plc chairman Rupert Lowe, who returned to the club at the end of last season, has accepted an earlier settlement as part of the deal which brought young goalkeeper Tommy Forecast to St Mary's.

Southampton were forced to strike a similar deal last season with Arsenal for Theo Walcott, sacrificing a reported £2.9million in order to collect the cash sooner.