West Brom 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.
In the first full set of accounts released by West Bromwich Albion Group Ltd since its formation in August 2010, the club also reported a record turnover of ?66.7million.
But Albion's total salaries topped the ?50million mark and represented 74 per cent of the club's turnover.
West Brom paid out ?6million during the summer of 2011 to sign striker Shane Long from Reading.
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."