Owner Norman Hassall has revealed Crewe will have to sell a star player in the summer in order to balance the club`s books.
Alex recorded post-tax losses of £821,934 for the 2009/10 season after turnover fell from £5.43million to £3.5million and gate receipts dropped by almost half to £396,773 following relegation to League Two.
Transfer fees were also down from £2.84million to £1.3million, despite the sale of James Bailey and John Brayford to Derby.
"We need to sell players to balance the books every year. The reality is that we have to sell to survive," said Hassall, speaking at the club`s 111th Annual General Meeting on Wednesday night.
"The trend (of losses) is continuing in the current year and if we don't sell another player between now and June we will be posting a loss of £1million.
"Our reduction in transfer income has been significantly more than the reduction in our expenses."