Cardiff City made £34m loss in year they won promotion

Cardiff City mascot
Last year's report showed Cardiff City owed owner Vincent Tan over £100m

Cardiff City made a £34m loss in the year they won promotion to the Premier League, but cut their overall debt.

Latest accounts state owner Vincent Tan turned £79.095m worth of loans into equity and waived payable interest as Cardiff returned to the top flight for the first time since 2014.

Cardiff's successful season saw them pay £23.165m in bonuses and contractual commitments following promotion.

Malaysian businessman Tan is still owed around £72m by the club.

Additional shareholder loans have been issued since the accounts, including to fund £35.397m worth of transfers in the summer transfer window.

Paperwork filed at Companies House discloses a £28.3m loan from "an unrelated third party to help with working capital".

However, the club's net deficit in May 2018 stood at £10.719m, down from £80.771m.

Cardiff's £34.026m losses - up by £15.674m from the previous 12 months - came despite an increase in revenue to £34.794m from £28.673m for the financial year ending 31 May, 2018. The promotion bonuses due to players and clubs for previous transfer deal account for much of that total.

Under manager Neil Warnock they upped wages last season by 51% to spend £31.201m on player salaries as they finished runners-up to Wolves in the Championship.

Directors' wages jumped up from £283,000 for the 2016-17 season to £1.429m.

In a statement in the accounts, chairman Mehmet Dalman said the club's aim and challenge was to "secure our place in the (Premier League) and continue building the infrastructure of the club around that".

In the directors notes, it was stated: "The company has the support of its controlling shareholder (Tan) and whilst his funding is not guaranteed, the ultimate owner has indicated that providing business develops as planned, he will continue to support the group in the foreseeable future and provide additional funding in order that it can settle its liabilities as they fall due."