TIM Waddington is confident Colchester United’s budget will not be dramatically affected by their relegation to League Two.

The U’s general manager admits the club will face a “financial drop” after their eight-year stint in the third tier came to an end, last month.

But Waddington says the way in which the club’s finances are structured means they have been prepared for any eventuality, both on and off the field.

Waddington told the Daily Gazette: “The biggest issue we face from relegation as a club is a financial drop.

“But the way in which we’ve structured things puts things in our favour and we’re prepared on and off the field for the future.

“It means that the budget we have will not be dramatically affected by us going down.”

Colchester recently announced that ticket prices for the 2016-17 campaign at the Weston Homes Community Stadium will be reduced, after crowds were up for a third successive year despite their relegation.

“We’ve had a strategy in place for the possibility of League One, League Two and the Championship and you have to be mindful of the entertainment that is on offer and what people will generally expect to pay in those three respective leagues.

“We knew full well that we would have to look at reduction in prices with a relegation and it’s very much a balancing act – making sure that the attendances remain good but ensuring that the budget doesn’t suffer.

“I’d have been terrified had our gates and revenue dropped this season but they’ve actually increased and we’ve got ourselves in a position where we’re thriving.

“We’ll obviously be looking to avoid the pitfalls associated with clubs who have been relegated but there are things in place to stop us going the wrong way.

“We’re all disappointed with being relegated and it’s natural for everyone to feel a bit knocked.

“But I think the reason why we’ve done so well with season-ticket sales over the last few years is because the place has a huge amount going for it.”

As one of four teams who went down to the fourth tier this season, Colchester will receive 12.6 per cent of the Basic Award payment awarded to relegated League One clubs for one season.

“We receive a parachute payment out of League One for one year,” added Waddington.

“It’s not a massive amount of money but it will certainly help to soften the blow and help to get back in line.

“Financially, relegation is a knock but because of Financial Fair Play and other factors, the pain isn’t necessarily immediate.”