THE new cash-conscious owners of York City today predicted the football club will break even next season.

The announcement comes less than six months after the financially stricken club teetered on the bring of extinction and was facing an end of season debt of more than £1.5million.

The news also comes just two seasons after City had a wages/turnover ratio of more than 150 per cent, said to be one of the worst recorded figures in the history of British football.

Publishing an overview of City's financial results from 1996-97 to 2003-04, the Supporters' Trust said the club is budgeting for an income of £1.6 million next season to cover expected costs of also £1.6million.

Some 38 per cent of that income will come from gate receipts, with the club having stated it has budgeted for crowds of 3,500 next season.

Today's report states income from commercial activities and donations will break through the £500,000 barrier for the first time in the club's history.

A further £470,000 is budgeted to be received from the Football League, television monies, centrally negotiated sponsorship agreements and grants.

Significantly, the club estimates City's total wage bill next season will be approximately £1.2million, yielding a wages/turnover ratio of 75 per cent.

Today's trust newsletter highlights the dramatic downturn in City's finances in seasons 1999-2000 and 2001-02 shortly after the then directors restructured the club and set up Bootham Crescent Holdings.

Next season's wage bill contrasts sharply with the 2000-01 season, when wages topped £2.2million, more than double the wage bill of the 1996-97 season. At the same time, operating losses exceeded £1 million in each of 1999-2000 and 2000-01 seasons.

Looking ahead to next season, as part of a cut-back crusade the club reckons "other costs" - which include items as diverse as company cars, travel costs and laundry - will be limited to around £400,000.

That figure is almost half the amount spent in 2001-02 and some £300,000 less than last season.

Today's trust report states: "The boards of both the trust and the club cannot allow the excessive costs and underachieving income generation of the past to continue.

"The new club board, appointed by the trust just three months ago, has been working very hard to generate further income for the club and to reduce costs."

It has been confirmed the loan note issue scheme set-up by the trust to help fund their rescue package raised £176,000 with 503 loan notes issued.

Today's Trust report coincides with the publication of the Deloitte & Touche Annual Review of Football Finance, of which trust board member Paul Rawnsley is co-author.

The annual review, based on club accounts in 2001-02, reports positively on the contribution supporters' trusts have made to safeguarding the future of clubs.

While it warns transfer income - the lifeblood of clubs like City in the past - will never again reach the levels of the last five years, the review argues lower division clubs are facing a healthy new realism.

It predicts clubs now hold the balance of power in wage negotiations with players.

Updated: 11:28 Thursday, July 31, 2003