New Southampton director Hans Hofstetter says the club's board has inherited a "difficult financial situation". Hofstetter spoke as Southampton published their annual results for the year ending 30 June 2013 - their first back in the Premier League.
The club posted a net loss of £7.1m and will enter the summer window owing £27m in outstanding transfer fees.
"Whilst I perceive that we have inherited a difficult situation financially, there are now clear and structured plans in place to progress the club and avoid a similar situation from occurring again," Hofstetter said in a statement.
Speaking to BBC Radio Solent, he added: "Of course it's a burden, but it's a burden that has to be covered and will be covered.
"When I came in from the outside I had different information, I was surprised but not disappointed. It is what it is and my culture is to look to the future and accept the past."
"The most important point is that we are in a position where we do not need to sell any player Mauricio [Pochettino] wants to keep," Hofstetter added.
"We have a very strong squad and we are still in a situation where we are free enough to act quickly if quick action is asked from us."
However, the wage-to-turnover ratio has fallen sharply - from 102% to a healthier 65% - after the removal of exceptional bonuses associated with promotion.
Operating profit is up to £8.7m, although that becomes a net loss of £7.1m once transfer expenditure is taken into account.
Commercial income rose from £4.8m to £6.7m after Southampton's rise to the top flight.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball