Sussex chairman David Green today warned the county will struggle to maintain its place at the top of English cricket unless they are able to develop the County Ground.

The club posted a financial loss of £389,466 last year and although that was an improvement on their £631,366 deficit in 2005 it means they have posted operating losses for the last six years.

Despite this, Sussex are the best side in the country. Next month they begin the defence of the LV County Championship they won for the second time in five seasons last year and the Friends Provident Trophy.

But Green insists if Sussex are to continue to compete with wealthier rivals they must generate more income - and that means getting permission to redevelop the southern end of the County Ground.

Planners have recommended the club's amended proposals are rejected and Green has warned that if they are Sussex might look to relocate elsewhere in the county after 167 years at Hove.

He said: "Everyone knows we have punching above our weight in cricketing terms. What we have achieved on the playing side is fantastic when you compare our resources to other counties and is a testament to everyone involved in the cricket department - coaches and players.

"But our success actually increased cricket costs. Other clubs are showing an interest in our players and coaching staff and we are finding it increasingly difficult to retain and attract good players within the cost restraints imposed upon us.

"That is why we need to develop the ground to improve the revenue streams so we can try and sustain the success we are having and keep the squad together."

The latest accounts reveal Sussex are spending £350,000 more on cricket, including their Academy and youth development, than they were five years ago. The interest generated by the £10m inheritance from former vice-president Spen Cama has allowed for more investment on the playing side.

Income from gate receipts rose £102,000 last year thanks to the continued success of the Twenty20 Cup while the Elton John concert helped increase marketing revenue by £32,000.

But the turnover pales into significance compared to other counties, particularly those who stage international cricket.

The latest ECB figures reveal Sussex were 11th out of the 18 first-class counties in money from gate receipts and sponsorship, 16th in revenue from sports facilities such as indoor nets and last from retail.

Treasurer Jim May said: "We have to be realistic. Even if the development goes ahead we are never going to be able to compete with the likes of Surrey, Warwickshire, Lancashire and Yorkshire.

"We are rated the 11th highest income generator but our cricketers have achieved a number one performance.

"We are always going to be beaten by the Test-match staging grounds but we should be aiming to be the best of the rest and the development at Hove is key to that. We have to do something about our sub-standard facilities."

Meanwhile, former captain Ted Dexter has been elected as the club's new president in succession to Robin Marlar.