The Fife club, who are awaiting £85,000 from ticket sales following their league match against Rangers on February 11 at East End Park, admitted yesterday that there is a cash-flow problem but are confident of making a second payment early next week. It is believed some players have only received 60% of their salaries.
"The Rangers situation has had a knock-on effect. I can confirm full wages were not paid. We have made other arrangements to get monies in and it should be all squared up on Monday," said John Yorkston, the Dunfermline chairman, who said he had written to the Scottish Premier League to clarify the club's position.
The development came on the day the club announced it had made a loss of £431,621 in the last financial year. In the accounts which revealed an overall debt of £9.4m, Yorkston, highlighted the impact of Rangers' insolvency. Turnover was up 31%, but the loss included £185,000 paid as bonuses to the staff for achieving promotion, which generated £40,000 in prize money.
"We had budgeted to make a small profit this year," said Yorkston. "That, I guess, will now be a small loss. When you look at the total loss, you can see what a big portion the money owed by Rangers is to our budget."
The accounts also carried a warning about the club's reliance on director Gavin Masterton's support. While losses fell from £1m the previous year, the auditors included an emphasis on the club's status as a going concern.
Masterton owns 100% of Charlestown Holdings Ltd, which in turn owns 94% of Dunfermline. Through that company, Masterton has lent the club more than £8m. Accounts highlighted this support and its requirement if Dunfermline are to continue trading. Yet the most recent Charlestown Holdings Ltd accounts, for the year ended May 31 2010, show a loss of £3.5m, liabilities that exceed assets held by £3.8m and a "material uncertainty" the loans could be repaid, which may cast doubt on "the group's ability to continue as a going concern".