Al Fayed insists spending was crucial

The Cottagers revealed a deficit of �33.6m for the year ended 30 June 2002, which included their first year back in football's top flight.

Al Fayed is adamant that Fulham had to spend to consolidate their position in the Premiership, but says they must now look to cut back.

He said: "The days of profligate spending are now over and we must tighten our belts and introduce a regime of prudent budgetary control from top to bottom.

"Transfer fees, player salaries and stadium development will all be scrutinised."

Fulham announce record losses

"The season 2001/2 was to be an historic year for our club. We consolidated our place in the Premier League and reached the semi-finals of the FA Cup for the first time in 27 years.

"This moderate success came at an exorbitant cost to the club and necessitated a huge additional capital investment."

And Al Fayed insists that it is not just his club that needs to get a grip on football's change in financial reality.

"Make no mistake, football is in danger of going broke if it continues to pay itself more than it earns and we must address the situation immediately if we are to survive in the top flight of English football," Al Fayed said.

The club are confident that they can get their finances in order once they have confirmed their place in the top flight.

"Getting the club established in the Premier League, with all the attendant outlay in buying players, was obviously a costly exercise and these figures represent that," said finance director Andy Ambler.

"But over the past 12 months we have returned to more prudent fiscal policies and with the budgetary controls we now have in place we hope we will see the club breaking even within the next two or three years."