West Bromwich Albion have announced a reduced pre-tax profit of £1.5million for the financial year ending June 30, 2012.
The profit compared with a surplus of £9.1million for the previous 12 months. It means the club's net debt has been reduced from £2million to just £500,000.
The club also reported a record turnover of £66.7million.
But Albion's total salaries topped the £50million mark and represented 74% of the club's turnover.
Club chief executive Mark Jenkins said in a statement: "The club has continued to invest in its playing squad, both in transfer fees and wages and total salaries now exceed £50million per year.
"However, with careful budgeting and tight financial controls, we have managed to match our revenue to our costs and record a pre-tax profit of £1.5million."