HARTLEPOOL United chairman Ken Hodcroft insists the club's future is in safe hands - despite recording a loss of over £900,000 announced at the Annual General Meeting yesterday.

Hodcroft told shareholders that there is no worries over the deficit of £917,319 for the financial year ending December 31, 2000 and revealed that parent company Increased Oil Recovery Ltd is happy to carry the loss.

The chairman is also chief executive of the Aberdeen-based oil company and the latest loss means the club is now operating a trading deficit of over £2.36m after a loss of over £650,000 was recorded for the previous 12 months.

Despite enjoying success on the field - the club reached the play-offs against Darlington in May 2000 - Pool lost £17,640 a week.

Hodcroft said: "We have taken a few things in that make the figures look bad - there's a few magic words in there - but a one-off cost can make it look like that.

"The biggest increase is in the players' wages, but next year there will be a bigger income from both ITV and the internet site and there is no undue concern from either myself or IOR.''

He added: "Although it is rarely known for Third Division clubs to operate at a profit - or just break even - it is a fact of business that costs and overheads need to be controlled.''

Turnover dropped from £1.4m to £1.2m, due to a drop in transfer fees received from the sale of players.

Just £15,000 was received in 2000 while Pool picked up £272,500 in transfer fees the previous year, thanks mainly to the sale of Jon Cullen to Sheffield United.

Pool's biggest outlay is on wages and £1.17m was spent on paying players and staff, while it cost the club £136,000 to release players as manager Chris Turner rebuilt the squad.

And while the wage bill was increased by 17 per cent, Hodcroft is hoping for support within the game in his bid to revolutionise players' contracts.

"We are now finding that the Bosman ruling is working in our favour,'' he admitted.

"But I feel sorry for the players because we are now able to pick and choose and it is becoming a buyers market,'' he said.

"The present contract does not benefit the players in the lower leagues. We are hoping to implement a new policy, but it will take time to get players in on a performance related scheme based on a salary and topped up with appearances and bonuses.

"What we want to do gives the players an incentive to do well and they will be paid on how they do.

"Just turning up for work to collect a salary does no business any good.

"Performance must be part of the job and performance should be rewarded.

"It's a ground-breaking move, but there's a couple of the younger lads we can do it with because the older players are so used to operating on the traditional contracts.

"We put the basics in the contract and then develop it.

"At the moment everyone has fixed contracts and when you have players who don't come up with the goods we are stuck with them - what other business operates like that?

"It is only going to hurt the players who are not good enough. I would like to see that come in because the current contracts are old and outdated.''

And Hodcroft warned: "If the Phoenix League comes into being, the Second and Third Divisions will not survive in its present form and if transfer and contract rules don't change unemployment will increase for PFA members and clubs will financially fail.

"This club needs to be prepared and plan ahead and be ready for changes.''

*Striker Jon Parkin will be handed a chance to impress Turner this afternoon when Pool's second-string travel to Mansfield.

The target man, who has signed a month's loan from Barnsley, was due to make his Pool bow in last week's reserve game with Chesterfield was washed out.

Gordon Watson should be fit for Saturday's trip to Bristol Rovers after missing last Saturday's defeat at Luton with a hamstring strain.

Read more about Hartlepool here.