YORK City are on course to record a financial loss after their first season in the Nationwide Conference.

Although gates are well above the break-even figure of 2,000, a drop of income in other areas will push the struggling club into the red.

Prior to today's home game against Dagenham & Redbridge and next Saturday's final match against Farnborough, the average attendance at KitKat Crescent this season was just over 2,300.

But the loss of an estimated £20,000 from the cancelled pre-season friendly against Newcastle United and lack of sponsorship monies from the Conference have more than wiped out any profit.

City finance director Terry Doyle said: "Our financial results for the year ending June 20, 2005 will inevitably show a loss.

"We have suffered a drop in income in other areas over that budgeted. In particular, the cancellation of the Newcastle United friendly hit us hard with an estimated £20,000 lost from that game.

"Furthermore, despite what we were led initially to believe, in our first year we receive no sponsorship monies from the Conference as we are in receipt of a Football League parachute payment. We initially believed we would receive some monies and these were included in our budget."

Doyle admitted that without success on the pitch the club's financial position will always be a struggle.

He added: "Chris Brass, who was manager at the beginning of the season, committed almost the entire budget early on and unfortunately the harsh facts show that the team assembled was nowhere near the right one to challenge in the Conference.

"We have learned our lessons and hopefully next season can start at last to put matters right on the field."

Fans recently raised £10,000 to save the reserve team and Doyle confirmed that City would rejoin the Pontin's League again next season. A total of £6,100 in cash was received with pledges of a further £5,650. The excess will go towards draining and sanding the pitches at the training ground and running the reserves in 2006-07.

But the fund-raising will not stop as cash is needed to make loan repayments to the Football Foundation of £100,000 each year.

Communications director Sophie McGill said: "When a football club has an owner, that owner bank-rolls the club and therefore puts money in.

"It's great that the supporters own the club but there has to be a collective responsibility.

"It's difficult asking the same people to help again and again but being part of the Trust is not really a situation where you can just pay your £10 and that's it. We have battled to save this club and we have to keep it going."

The Supporters' Trust is to draw up a fund-raising schedule with several events planned for the close season.

Updated: 10:52 Saturday, April 16, 2005