CHARLTON’S relegation from the Premier League contributed to a significant reduction in turnover which led to overall operating losses of £11.8 million, despite profits of £11.3 million from player sales.

In his annual report for 2007, Charlton plc chairman Richard Murray discloses that the financial year recorded a fall in turnover to £35.9 million due to the reduction in the Premier League merit award received, lower matchday revenues and a reduction in cup revenues compared to the previous year.

The club’s 19th final position in the Premier resulted in a 75 per cent merit award reduction, demonstrating that the financial effects of a poor season and relegation are felt in that season in addition to those that follow.

Overall receipts from Premier League broadcast contracts and other central agreements fell by nearly 14 per cent.

Season-ticket sales were lower for 2006-07 with 17,188 holders at the end of the season, representing a fall of eight per cent. This was slightly mitigated by improved match-by-match sales, though combined revenues fell five per cent.

But Mr Murray stressed: “I was pleased that overall attendances at The Valley remained high at an average of 26,197, utilising nearly 96 per cent of the stadium’s capacity.”

Darren Bent’s sale to Tottenham in June, 2007 was for a net fee of £12.9 million after accounting for a contractual profit share with Ipswich.

Mr Murray explained: “As is customary with transfer deals of this size, the agreement with Tottenham allowed for fees to be paid over a number of installments.

“The first of these was received in July, 2007 and so the current financial statement does not show the benefit of any cash flows from this transaction.

“Total revenues from players sold within the 12-month period were £14.9 million after net fees due to Ipswich, generated profits of £11.3 million.

Further players were sold after the balance sheet date, notably Souleymane Diawara, Dennis Rommedahl and Luke Young.

“Everyone on the company’s board and the football company board is a committed Charlton supporter who wants the club to be both successful on the pitch and a benefit to the community.

“Relegation was a setback but we remain committed to returning to the Premier League at the earliest opportunity.”