Aston Villa made a pre-tax loss of Â£27million to the year ending May 31, 2015, new accounts show.
The Premier League strugglers – who look certain to be relegated this season – also reduced their debt from Â£102million to Â£30.6million.
Villa finished 17th in the Premier League in 2014-15 with the annual report calling it “its worst performance since the creation of the league in 1992”, although the club did reach the FA Cup final last May under former manager Tim Sherwood.
The club remains for sale but the report said no active discussions were taking place with potential buyers.
Turnover for the period was Â£115.7million compared with Â£116.9million a year earlier.
Villa saw gate receipts for matches rise by Â£1million but TV broadcasting income fell to Â£71.4million from Â£72.7million the previous season.
Villa’s operating expenses rose by more than Â£17million to Â£139.4million, including a Â£19.7million cost from player transactions. The biggest item was staff costs at the club, including player wages, which rose to Â£83.8million from Â£69.3million the year before.
The club host Tottenham in the Premier League on Sunday nine points from safety with just nine games left.