GRAHAM Taylor's Watford can provide the inspiration for smaller clubs like York City with aspirations of the footballing big time.

Despite their relegation from the Premiership after just one season, Minstermen season ticket-holder Paul Rawnsley, co-author of the Deloitte & Touche annual review of Football Finance, predicts a bright future for the Hornets.

According to Rawnsley, Watford's financial foresight meant they did not over-stretch themselves in reaching the Premiership, nor did they blow all their extra revenue on trying to stay there.

"It was only a couple of seasons ago that York City were playing Watford and yet they had a great party in the Premiership while they were there.

"They reinvested much of the money on ground improvements and their youth system and will no doubt be stronger because of it. I am sure in the near future they will be able to have another real crack at getting into the Premiership."

Rawnsley praised City's impressive' financial footing but reasoned there is room for improvement.

"York City has a sound financial base but the club needs to work positively to get a greater level of support from the local community it serves so as to generate more income.

"The important thing is getting more fans through the turnstiles. With average attendances of 3,500, City is a Third Division club and it needs a greater level of support.

"It has taken steps over the last 12 months to become more friendly with the local community and the appointment of Sophie McGill (the club's first public relations executive) has been another positive move."

Rawnsley admitted the new television money coming football club's way offered a real chance for the cash-strapped club's to get themselves on an even keel financially. But he fears the worst.

"Since the new TV deal was announced back in June, clubs know there going to be a lot of extra money coming their way.

"They have a choice as to what they do with it. They can spend it on more players and bigger wages so that their levels of loss remain as they are or are even greater.

"Or they have got a chance to correct the situation almost over night and go from loss makers of £500,000 to breaking even.

"Unfortunately, a lot of clubs spend money before they get it. It's the chairman choice."