Swan Districts paid their players $35,000 under the WAFL salary cap last season as part of the dramatic financial turnaround that saw the club return a trading profit for the year.
As former police superintendant David Parkinson was ratified as Swans president at the annual general meeting, members were informed that Swans had managed to overcome the massive $913,000 loss in 2011.
Swans reported a $24,234 loss for the 2012 year, but the figure included a depreciation amount of $86,000.
Parkinson warned that Swans faced several tough years but was pleased with the club's direction after the dire period when a salary cap investigation compounded the WAFL's biggest-ever annual club loss.
"There is still plenty of work to do and we have to continue to cut our costs," Parkinson said.
"We may not be back in the black for two years but there are some promising signs."
Swans were boosted by several sponsorship increases. BHP lifted their contribution by $160,000 to $790,000, while Chevron added an extra $285,000 to $540,000.
And the club's lucrative relationship with the Wooroloo prison team put another $174,000 into the coffers.
Expenses were also cut dramatically with Swans reporting player payments of just $182,600, significantly below the 2012 salary cap of $217,000.