"The Board, therefore, took a conscious decision to continue to invest in the team in the summer of 2003 and to budget for a loss.
"Instead, the main financial target was to ensure there was no increase in net debt. Both these objectives were achieved.
"The loss is essentially attributable to two factors. The loss of Champions League revenue and the decision to change the management team.
"The loss in itself does not constrain player spending, after all we did invest significantly in the summer.
"It is the level of debt and future cash flows that govern our transfer activity."