Barnsley insist chairman Neerav Parekh "remains fully financially committed" to the club after speculation Conor Hourihane will be working with a much-reduced budget next season, but they are trying to wean themselves off dependence on owner funding.

The League One club posted losses of £6.6m in their most recent accounts, leading to speculation in some quarters that next season's transfer budget could be as low as £3.5m.

Barnsley put out a statement on Monday insisting "The figures quoted are simply incorrect", although when questioned by The Yorkshire Post they have not revealed what the budget will be, beyond what was said in the statement.

"Alongside the Cryne family, owners will continue to invest millions of pounds into Barnsley FC next season to ensure the club is competitive on and off the field," said the statement. “There is no expectation that any money will be taken out of the club, underlining once again the board's continued desire to see Barnsley FC prosper.

MONEY ISSUES: Barnsley FC (Image: Pete Norton/Getty Images)

placeholder image — MONEY ISSUES: Barnsley FC (Image: Pete Norton/Getty Images)

"However, we do need to work smarter and ensure that every element of the budget is used effectively.

"We cannot continue to depend indefinitely on owner investment from Neerav and the Cryne family, and in order to remain competitive, we must ensure our costs are controlled and we are working with all partners and fans to maximise opportunities."

Barnsley are typical of League One clubs – and Football League (EFL) clubs generally – in being heavily dependent on owner subsidies to remain viable as a business, with the gulf in income between Premier League clubs and the rest vast, but some clubs lower down the pyramid prepared to take huge financial risks to move up it.

In their statement, the Reds pointed out that a £6.6m loss is the average in the division, a £2.2m increase in four years.

SUBSIDIES: Neerav Parekh (second from right) and Jean Cryne (second from left) (Image: Bruce Rollinson)

"Over this period, owner funding has risen from £2.8m to £9m per annum," it stressed. "More than half of EFL clubs have only one month's worth of cash in the bank. This is an incredibly fragile situation for such important community assets.

"In discussions with several League One owners and CEOs, it is clear that across the division there is a growing recognition that clubs must reduce losses, operate more efficiently and create stable financial models for the years ahead."

The new football regulator recently spoke to The Yorkshire Post and other media outlets about its plans to demand clubs have "appropriate resources" in reserve to protect themselves against major changes in circumstances, including the withdrawal of owner funding, to avoid the kind of crisis which has engulfed Sheffield Wednesday this season.

"Importantly, reducing losses not only protects the club's sustainability – it also strengthens our position when engaging with potential new investors or strategic partners,” argued Barnsley. “Financial discipline today creates opportunities that are simply not accessible when operating at high levels of annual loss."

The club say they are continuing to work with Barnsley Premier Leisure and Barnsley Council to upgrade their Oakwell home.

Selling Davis Keillor-Dunn and replacing him with 33-year-old loanee Tom Bradshaw smacked of a lack of ambition from a club whose business model resolves around developing and selling on young talent but in their defence, events at Hillsborough this season have shown the folly of over-extending financially.