The stark reality that York City must sell to survive has been confirmed in the club's latest balance sheet published today.

That grim fact remains despite the club making a record profit of £1,274,202 pounds for the year ending June 30, 1999. However, but for the six-figure sales of star players Richard Cresswell to Sheffield Wednesday and Graeme Murty to Reading and the club would have made record losses. Their sales, plus the cash raked in from Jonathan Greening's continuing appearances at Manchester United and the sell-on money received following the switch of former Minstermen 'keeper Dean Kiely from Bury to Charlton, helped offset a trading loss of £483,906. The final operating loss of £483,096, up more than £75,000 on last year's restated deficit, confirm that City rely on the cash generated from the sale of their brightest talent.

Gate receipts, although showing a slight increase on last year, are not sufficient at the present levels to sustain the club, especially in a year when the Bootham Crescent payroll reached £1,427,028, a staggering rise of 23 per cent on last season's total of £1,159,062 and confirms the growing consequence of the 'Bosman' ruling where a decrease in cash transfers is resulting in higher wages for players. Over the last five years at Bootham Crescent wages have risen by 80 per cent. The blunt reality means that, despite the million pound profit, if its current rate of operating losses was maintained the club could only guarantee its survival for a maximum of just over two years.

In his chairman's report, to be presented with the balance sheet to the shareholders of Bootham Crescent Holdings (BCH), the former shareholders of York City Football Club, on December 20, Douglas Craig states: "Once again the accounts show just how important it is for the club to attract and develop young talent for it is only by selling these home grown assets that the club remains financially viable. "Directors remain committed to this policy and will continue to invest in the facilities and staff necessary to sustain it."

Income at the club, excluding transfers, stood at £1,501,008, up almost £290,000 on last year's restated figures. However, much of that increase comes from the first £138,000 instalment of a four year grant from the Premier League and English Sports Council, coupled together with a £69,444 grant from the Football League carried over from last year. The money must be used solely for youth development activities at the club, including City's Centre of Excellence.