Sheffield United have fallen further into the red because of the collapse of ITV Digital, the slowdown in the market for selling players and higher footballers' salaries.

The club have been working on reducing player wages and this trend simply needs to continue

Kevin McCabe Sheffield United chairman

The First Division club saw losses increase to �1.8m ($2.8m) in the year to the end of June, compared with �0.4m the previous year.

Sheffield United said they were suffering from the "traumatic times" affecting the whole of the football industry.

The collapse of pay-TV company ITV Digital meant the club has lost more than �2m a season in broadcasting income.

The end of the television deal also meant that the club's revenue from advertising boards and corporate sponsors would fall.

Selling players

United said they were also having to battle against the increasing cost of players' salaries.

"In line with many other clubs, Sheffield United have been working on reducing player wages and this trend simply needs to continue," chairman Kevin McCabe said.

Another problem for United was that changes in the player transfer market had made it more difficult to buy and sell footballers.

"No longer will clubs be able to rely upon the regular transfer of footballers to support annual revenue," said Mr McCabe.

And he warned that although the Blades wanted to hold on to all of their talented young players they might have to consider selling some of them if the right opportunities arose.

Fewer spectators

Mr McCabe added that, because its share price was so low, the club would be transferring its listing from the London Stock Exchange to the smaller and more lightly regulated AIM market.

The move should cut costs.

On the field United have got off to a promising start and are fourth in the league.

"If current form is progressed, then April of next year should see us with a realistic chance of returning to the Premiership," Mr McCabe said.

But he expressed disappointment at the reduction in the number of spectators attending home league matches.