Swansea City accounts to show 'significant loss', says Huw Jenkins
Swansea City chairman Huw Jenkins says the club's next accounts, due to be released in October, will show "a significant loss for last season".
The deficit has been partly caused by the Swans' increased wage bill, which has since been reduced this summer.
But the losses are not thought to have directly affected the club's transfer activity, with funds available to head coach Francesco Guidolin.
"I am happy with the squad I have available," Guidolin said.
"There is plenty of quality there and the club has done well to allow me to do my job in the right way.
"I am confident we can and will have a good season."
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An American consortium, led by Jason Levien and Steve Kaplan, bought a controlling stake of 68% in the club in July.
The 2015-16 losses contributed to the eagerness of Swansea's existing directors to attract additional investment.
Some of Swansea's highest earners have left this summer, with Ashley Williams joining Everton, Andre Ayew moving to West Ham and Bafetimbi Gomis signing for Marseille on loan.
The Swans have signed strikers Borja Baston - for a club-record £15m fee - and Fernando Llorente, as well as midfielder Leroy Fer, defenders Mike van der Hoorn and Alfie Mawson and goalkeeper Mark Birighitti.
Swansea failed to make any further additions on transfer deadline day, though chairman Jenkins defended the club's business.
"The team has been in transition over the last year or two, with a number of players who have been the bedrock of our success in first achieving and then maintaining our Premier League status moving on for different reasons," he said.
"That transition, which happens to all clubs and proved the downfall of many, has to be managed.
"The recent majority shareholder takeover will help us secure that future, which is one of the reasons they came on board.
"Our accounts are due out next month and it will highlight a significant loss for last season.
"That's why we always have to strike a balance to work financially within the budgets we have."