Swansea City have announced a pre-tax loss of £3.2 million for the financial year ending July 2018 in their latest set of accounts.
Relegation from the Premier League has hit the club hard, with owners Jason Levien and Steve Kaplan conducting a stern financial restructuring of the club on and off the field.
Several members of Graham Potter's first-team squad were sold last summer and further departures occurred in January, while last month the club announced that redundancies among non-playing staff members would be taking place over the next few weeks.
Swansea state though that they remain "committed" to investment, but in "sustainable manner".
The loss follows a profit of £13.4 million from the previous year.
Turnover for the year was down £1 million, from £127.8 million to £126.8 million.
"The club’s 18th-place finish in the Premier League resulted in a loss of broadcast revenue of £4.7 million, down from £109.3 million to £104.6 million," the club wrote on the club's website.
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"Total operating costs, including an increase of £27.7 million in player amortisation costs of £51.9 million, amounted to £175.1 million compared with £150.8 million for the previous year."
Player amortisation cost relates to the purchase cost of the player together with associated fees written off over the term of the player's employment contract. For example, a player purchased for £12 million on a three-year contract would lead to an annual amortisation cost of £4million per annum.
A statement in the club accounts read: “The 2017-18 season proved another difficult season which ultimately led to relegation from the Premier League after a stay of seven years.
“The Under-23 team finished fourth in Premier League 2 Division 1 which was an excellent achievement in their first season in the top division, together with being runners-up in the Premier League Cup and a good run in the International Cup and Checkatrade Trophy.
“The directors are committed to providing the resources necessary for investment in players, coaches and management to ensure the team is competitive. However, the club needs to continue to do this in a sustainable manner.’’
It was also revealed that staff numbers have increased (409) from the previous year (369), but that costs had gone down (£98.7 million to £90.7million).
A statement on the club website read: "While relegation from the Premier League has resulted in a loss of revenue amounting to approximately £65 million, running a financially-sound football operation remains of paramount importance to the club.
"As a result, the club will continue to work hard to find the right balance between success on the field and prudent financial management in order to secure the club’s long-term future for its supporters and an eventual return to the Premier League."
The club also revealed that no dividends were paid to directors during the financial year.
