Chairman Doug Ellis admitted the figures were not helped by gate receipts and commercial revenue being reduced by reconstruction of the Trinity Road stand at Villa Park.

Ellis said: "I have consistently pointed to the challenge facing our industry of fees and salaries relating to players increasing at a faster rate than incomes."

He acknowledged there was much work to be done before the club were challenging for honours on the pitch.

"Whilst in the main the team has proved difficult to beat, our lack of goals has resulted in drawing or losing too many games that we should have won," he said.

"We enter 2001 with a lot to do in playing terms but with a sound balance sheet, which will be further strengthened by the receipt of the second tranche of the (sponsors) NTL monies in February, and with an expanded management team ready to exploit the opportunities becoming available to us."