Fighting for the future Scottish Premier League Football
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Fighting for
the future
Scottish Premier
League Football
22nd Annual Financial
Review of Scottish Premier
League football
season 2009-10Contents Introduction 3 Profit and loss 5 Balance sheet 16 Cashflow 22 Appendix one 2009/10 the season that was 39 Appendix two What the directors thought 41 Appendix three Significant transfer activity 2009/10 42 Appendix four The Scottish national team 43
compared to the previous season’s run
Introduction
in the Champions League group stage.
Making reasonable adjustments for
these items shows that the league
generated an underlying loss of c£16m.
Adjustments (£m)
Headline profit 1
Less: exceptional
profit adjustment (7)
Less: Champions League
profit adjustment (10)
Welcome to our 22nd annual financial review £(16)
of Scottish Premier League (SPL) football. Adjusted underlying turnover was
c£156m, representing a fall of 6%, and
the underlying operating loss was £6m
with only the Old Firm and Dundee
with both clubs’ results being boosted
Back to black? by related parties forgiving £8m and
United generating an operating profit
In season 2009/10, the SPL posted its – every other club was loss-making at
£1m of debt, respectively. These are
fifth bottom-line profit in the past six this level.
one-off items and don’t represent a
seasons. On the face of it, this modest
true flow of income for the clubs. It is therefore clear that the SPL clubs
£1m profit appears positive, given the
ongoing turbulent economic climate, have not been immune to the impact
The season’s results were particularly
but when we delve deeper, our analysis of the recessionary environment.
enhanced by a good European run
reveals a different story. It could well The uncertainty of a potential double-
for Rangers. On the back of playing in
be that more pain is to come as the dip recession, coupled with supporters’
the Champions League group phase,
league strives to find a sustainable fears over job security, left many with
Rangers turned a prior year operating
financial footing. very difficult decisions to make when
loss of £8.5m into a £12.4m operating
it was time for season ticket renewals.
profit, with turnover increasing by £17m.
We need to adjust for two significant This discretionary income is often
This £20.9m operating profit swing is
items to establish the underlying the first to be sacrificed in times of
almost entirely due to the positive
performance, which are: financial hardship. Add to this the
turnaround in European performance
drop in corporate hospitality and
1. exceptional debt forgiveness, and when compared to last year’s early exit
entertaining, and season 2009/10 was
to FBK Kaunas. On the other hand,
another challenging year financially.
2. Rangers’ success in Europe. Celtic’s operating profit fell £6.8m to
£4.5m thanks to their participation in Other highlights:
Exceptional credits were realised in the less lucrative Europa League,
the year by Hearts and Kilmarnock, • Rangers was the most profitable club,
with a profit of £4.2m;
The SPL clubs’ combined profit and loss account
• At £2.1m, Celtic recorded the
largest loss;
2010 £m 2009 £m
Turnover 171 167
• Overall, six clubs recorded a bottom
line profit and six clubs reported a loss;
Wages (105) (110)
Other operating expenses (62) (65)
• The wage-to-turnover ratio fell to
61% (2009: 66%), albeit still skewed
Operating profit/(loss) 4 (8)
upwards by Hearts’ continued
Amortisation of player registrations (17) (22) excessive ratio of 115%;
Net gain/(loss) on player registations 12 13
• Net debt marginally grew to £109m
Operating loss before interest (2009: £108m), with only Hamilton
and exceptionals (1) (17) and St Johnstone operating debt
Exceptional items 7 (1) free; half of the clubs recorded a rise
Net receivable (payable) (5) (6) in their debt;
Profit/(Loss) 1 (22) • A £12m gain on disposal of player
Source: Statutory Accounts registrations (2009: £13m).
Season 2009-10 3Arguably, this model could be causing A 14 team set-up would require a
The player trading model a perceived drop in the quality of the rather unusual split to take place after
The analysis overleaf shows that the retained talent, which in turn could be 26 games, with the top six teams
majority of clubs continue to struggle affecting attendances. Overall, the playing a further 10 matches and the
to generate a basic operating profit. average gate was down 10% this year, bottom eight playing a further 14.
What’s more, the ‘big money’ TV deal with a total of 347,000 fewer fans This could essentially create an SPL
that clubs had hoped for didn’t attending SPL games compared to last ‘1.5’, with the bottom eight not only
materialise, leaving them to continue season, and I would argue that a fall of playing four games more, but also
their search for alternative income this magnitude is not solely due to the playing one fewer game against each
streams and long-term sustainable financial climate. Indeed, over the past of the Old Firm. Whilst there might
business models. It’s becoming more four years attendances have fallen by be no financial impact for the top six,
and more apparent that one of the over half a million fans a season, in comparison, with the current 12
most likely solutions to balance the therefore other causal factors must be team set-up, a bigger financial question
books will be an ongoing reliance on in play. When the economy starts to remains for the bottom eight as to
profitable player trading. The warning fully recover, there is no guarantee that whether the revenue from an extra
here is that applying a successful fans will flock back to the turnstiles. two home games will compensate for
model must be carefully balanced There is a real danger of losing a an extended run of potentially lower
against appeasing fans’ expectations generation of football fans; once you quality games.
and compromising playing standards. lose your customers, it’s hard to win
them back. That leaves us with the known quantity
The past three seasons have yielded of the current 12 team set-up versus a
cumulative gains on player registrations 10 team set-up.
of £53.5m, which highlights the League reconstruction
significance of profitable player trading Thoughts inevitably turn to finding A return to the 10 team set-up would
to the SPL’s business model. The current ways to revitalise interest levels in maintain the current number of Old
season’s £12m gain was mainly down the game, and talks continue over the Firm games at four each season, but
to the high-profile departures of Scott prospect of league reconstruction. reduce the overall number of games
McDonald (£3.5m) and Barry Robson For any of the proposals to be accepted played from 38 to 36 for each club.
(£1.5m) to Middlesbrough from Celtic, and successful, they must also be Arguments over familiarity breeding
and David Murphy (£1.5m) to financially viable and ideally increase contempt would likely return to the
Birmingham from Hibernian. The most revenues across the board. Suggestions fore, but this may be offset by the
successful form of this model is to include creating an SPL2 to reduce the enhanced quality of games as the two
nurture young talent into the first team current financial disparity between the weakest performers would drop into
and sell them on for pure gain. I would existing SPL and Division one clubs. the SPL2.
single out Hibernian as the best
A move to the English leagues appears Detailed financial modelling will
example of this in recent times, though
to be off the agenda for the Old Firm, have to be undertaken to estimate
not always to the delight of the Easter
and the focus is now on a change from the additional finance that would need
Road faithful.
the current SPL ‘split’ league system – to be generated; a key factor will be
The majority of supporters will find the only one in Europe – to a 10, 14 or whether this represents a more
it hard to stomach as a conveyor belt 16 team top flight. valuable model for broadcasters.
of talent departs south, seduced by Until this happens, it remains to be
Taking each scenario in turn, a 16
the affluent Premiership and top seen whether a compelling case can be
team league would result in 30 games
Championship sides whose purchasing made for any of the proposed set-ups to
a season (four fewer home games for
power is fuelled by ‘big-money’ successfully repackage the Scottish top
each team), and with only two Old
broadcasting contracts. This trend of flight and increase interest from fans
Firm matches each year, this presents
luring away the very best SPL talent and broadcasters alike.
a major drawback to any potential
does not appear be stopping and there
broadcaster. In addition, bringing in
will need to be greater acceptance and
more smaller clubs – and with them
Thanks
realisation from supporters that the As ever, I am indebted to my Sports
the potential for more meaningless
future success of the league in its Unit team for their help in compiling
end-of-season mid-table clashes –
current format relies on this income. this report, particularly David Auld
will likely further harm the perception
and Stuart MacDougall.
of quality. Without putting a figure on
it, it can be reasonably deduced that David Glen
this combination would bring in Tax Partner, PwC
reduced revenue. July 2011
4 PwC Annual Financial Review of Scottish FootballProfit and loss
Overview
The SPL clubs’ reliance on their fans’ Even before the collapse of Setanta,
As the economy discretionary spending on merchandise, the SPL was in a unique position
compounded by reduced revenue from compared to the other big leagues such
recovers from the corporate sponsorship, marketing and as the Premiership, Ligue 1, Serie A
global economic hospitality, has made them particularly and the Bundeslige, with ticket sales
vulnerable to the global downturn. forming the SPL’s most important
downturn, Scottish Meanwhile, many Scottish clubs – in revenue stream (with TV and radio
football clubs – like particular those with high debt levels deals being second and sponsorship
– have been hit hard by a lack of liquidity. taking third place). This means the SPL
many businesses – clubs have been hit relatively harder by
What’s more, the 12 clubs that make
have found trading up the SPL have also had to deal with
the declining attendance levels than
other major leagues. Add to this the
conditions difficult. a drop in broadcasting revenue, average 18,277 fewer fans attending
following the £65m five-year deal their team’s home matches during
agreed between the SPL and Sky/ESPN 2009/10 compared to last season and
before season 2008/09. This compared the average resulting impact wipes
unfavourably to the previous four-year £10m off the SPL’s aggregate revenue.
£125m deal with the now-defunct
Setanta, with the SPL’s 12 clubs Outside of the clubs’ top-level sponsors
expected to lose an estimated £18m a and kit partners, they face further
season in aggregate. Although this is challenges. Merchandising revenue
dwarfed by the £2.7bn the 20 English relies on supporters spending their
Premiership clubs got from 2007 to disposable income, while reduced
2010, the shortfall of the current deal corporate budgets have put pressure on
was further put into perspective during secondary sponsorships. The chairmen
April 2011 when Sky Sports and the and chief executives have subsequently
Football League (Leagues One and cut costs through using more loans as
Two in England) agreed to a £195m opposed to cash transfers and also by
three-year deal worth £1.35m a club reducing squad sizes and players’
per season. salaries and bonuses. However, it
remains an art to apply a sensible
financial model without compromising
playing standards, while all along
keeping the fans happy.
Season 2009-10 5The fact remains that the SPL was Historic profit/(loss) analysis
seriously impacted by the current TV
deal no longer reflecting the true value 30000
of Scottish football. This reduction in 20000
TV money, coupled with attendance 10000
levels falling 10% on average, means £0
the financial gap between Scotland
-10000
and England continues to grow.
-20000
However, the cost-controlling
mechanisms and prudent stewardship -30000
undertaken by many of the clubs’ -40000
chairmen and chief executives during -50000
the past seasons have given the clubs -60000
a more solid platform to weather the
-70000
financial storm and return the SPL to
-80000
a collective profit for the fifth time in 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
six seasons. Old Firm Profits/(Losses) Other Profits/(Losses) Total Profits/(Losses)
Source: Statutory Accounts
The SPL clubs’ combined profit and loss account
We have obtained the 2010 £m 2009 £m Movement%
financial results of the Turnover 171 167 2%
SPL clubs from their Wages (105) (110) -5%
statutory accounts for Other operating expenses
Operating profit/(loss) before player
(62) (65) -3%
the year ending 2010. registrations 4 (8) -151%
Amortisation of player registrations (17) (19) -12%
Impairment on player registrations 0 (3) -100%
Net gain on player registrations 12 13 -7%
Operating loss (1) (17) -93%
(Loss)/gain on tangible fixed assets (0) 2 -105%
Exceptional items 7 (1) -693%
Net interest payable (5) (6) -21%
Profit/(loss) before and after tax 1 (22) -106%
Taxation 0 2 -94%
Profit/(loss) after tax 1 (20) -107%
Source: Statutory Accounts
6 PwC Annual Financial Review of Scottish FootballThe key financial Turnover grew 2% from last season’s
£167m, despite seven of the 12 clubs
• Total wages dropped by 5% to £105m
(2009: £110m), with the majority
highlights of experiencing a fall in top-line revenue. attributable to cost-cutting at
season 2009/10. This rise was primarily driven by
Rangers and St Johnstone, as when
Aberdeen, Celtic, Hearts and Rangers.
During season 2009/10, it was
comparing like-for-like, the former’s notable that the contracts of the
revenues were supplemented by high-earning players at these clubs
participation in the UEFA Champions were either allowed to run out, with
League, while the latter’s growth was the player released or kept on at a
principally due to season 2009/10 reduced rate. This was on the back of
being the club’s first back in Scottish the 3% wage drop we outlined in our
football’s top flight. However, revenue 21st review – once again evidence of
still remains significantly below the the measures club chairmen and
record high of £196m in season chief executives are taking to control
2008/09, because of the fall in both their cost bases.
match-day and broadcasting revenue.
• The amortisation of player registrations
As we mentioned in last year’s review,
fell by £2m to £17m (2009: £19m)
given that the majority of season
– back to 2007/08 levels. Of this,
tickets were bought in May/June 2009
£15.7m (2009: £16.2m) was directly
for season 2009/10, this was essentially
attributable to the Old Firm.
the first time the clubs felt the full
extent of the recession. When coupled • The £12m gain on sale of player
with the demise of Setanta during registrations was attributable to the
season 2008/09, it’s clear that unless gains posted at Celtic (£6m) and
a substantially improved broadcasting Hibernian (£2.3m), following
deal can be negotiated, it’ll be extremely the high-profile departures of
tough for clubs to return to the heights Scott McDonald (£3.5m) and
of season 2008/09. Barry Robson (£1.5m) to
Middlesbrough, and of David
• The Old Firm had mixed results, Murphy (£1.5m) to Birmingham.
with Rangers’ turnover increasing by
an impressive 42% to £56.3m (2009: • Total net interest costs dropped
£39.7m) as a result of its participation slightly to £5m (2009: £6m), due
in the Champions League group stages. directly to the reduction in external
Conversely, due to Celtic’s absence net debt across the 12 member clubs
from Europe’s premier competition, totalling £74.5m (2009: £86.8).
turnover fell dramatically to £61.7m
(2009: £72.6m). Despite their
contrasting fortunes during the year,
Rangers still couldn’t match their
Glasgow rival’s top line – partly due
to the impact of the JJB licensing
deal and the capped level of
merchandising income available
to the Ibrox club.
Season 2009-10 7Turnover
The SPL’s total turnover grew by 2% to Aberdeen League as opposed to the UEFA
£171m in season 2009/10 (2008/09: Overall turnover fell 18% to £7.1m Champions League. Further contributing
£167m), mainly arising from Rangers (2009: £8.6m), with £0.8m of this factors included substantially lower
and Celtic’s participation in the UEFA fall attributable to the decrease in average attendances and season ticket
Champions League and Europa League. broadcasting income associated with revenue, and a drop in domestic media
Conversely, in 2008/09, the Ibrox club the new broadcasting contract with income following the demise of Setanta.
didn’t participate in Europe, after Sky/ESPN. A further £0.3m drop in
being knocked out during the second Merchandising income fell £1.68m
turnover is directly driven by the fall
qualifying round by FBK Kaunus, (9.8%) to £15.5m due to one kit launch
in gate receipts due to the club’s bottom
whereas Celtic enjoyed Champions rather than two, while general trading
six finish and lack of progress in both
League football. within the retail market was very
cup competitions and corresponding
competitive in light of the current
home ties. The fall in commercial,
The impact of 2009/10 performance economic climate. Revenue from
sponsorship and advertising income
on the field was Rangers yielding a multimedia and other commercial
streams reflect a similar pattern,
further £16.1m in commercial income, activities declined £8.2m (43.3%) to
outlining the correlation between the
which more than offset the £10.9m drop £10.7m, due to the reduced television
club’s turnover and performance in
in revenue at Celtic. This highlights the income offered by the Europa League,
the SPL and in the cup.
significance of European football to and reduced domestic media income
the results of the two Glasgow giants. Celtic thanks to the Setanta situation.
Of the other clubs, Dundee United, After two years of consistently posting
Hamilton, St Johnstone and St Mirren turnover above the £70m threshold,
Dundee United
grew turnover during the year thanks The club achieved record revenues of
the Parkhead club saw a reversal of
to a combination of relative success £6.1m, representing a 4% increase for
fortunes, with turnover dropping 15%
on the pitch – notably within the cup season 2009/10, despite average home
to £61.7m (2009: £72.6m). This drop
competitions – when compared to last attendances falling 9% year-on-year
was almost entirely attributable to
season, and also with St Johnstone and last season having benefitted from
participation in the UEFA Europa
enjoying its first season back in the SPL. the £0.4m sale of the club shop’s
operations. The increase was largely
attributable to improved first team
Turnover by club results, such as winning the Scottish
2010 2009 2010 2009 Cup (2009: fifth round) and a third-
£’000 £’000 Movement Movement place finish in the SPL (2009: fifth).
Aberdeen 7,053 8,557 -18% -34%
Falkirk
Celtic 61,715 72,587 -15% -1%
Season 2009/10 proved to be a
Dundee United 6,052 5,792 4% -1% dramatic turn-around from last year’s
Falkirk 3,839 5,366 -28% 18% record season. Turnover fell from
Hamilton 2,543 1,859 37% 67% £5.4m to £3.8m due to the club’s poor
performances on the pitch. Not only
Heart of Midlothian 7,908 8,307 -5% -9%
was Falkirk relegated from the SPL,
Hibernian 7,064 7,711 -8% -4% but it also failed to replicate the success
Kilmarnock 6,136 6,922 -11% -20% of last season when it reached the CIS
Motherwell 4,380 4,430 -1% -5% Cup semi-final and the Scottish Cup
Final, and consequently boosted
Rangers 56,287 39,704 42% -38%
revenues by £0.8m. Add to this the
St Johnstone 4,045 2,474 64% -2%
Setanta effect and the impact of the
St Mirren 3,875 3,546 9% 20% recession, and commercial income
Total 170,897 167,255 2% -15% was hit badly.
Source: Statutory Accounts
8 PwC Annual Financial Review of Scottish FootballHamilton Kilmarnock This increase in revenue is
Hamilton is in the unenviable position The Ayrshire side managed to avoid commendable given the economic
of propping up the SPL turnover table, relegation on a dramatic last day of the backdrop that beset season 2009/10 in
deriving c£2.5m of turnover in season season, when a no-score draw against terms of ticketing and hospitality,
2009/10 (2009: £1.9m). As this club relegation rivals Falkirk condemned combined with the collapse of Setanta,
filed abbreviated accounts in the current their opponents to First Division football. which directly cost the club £1.4m in
year, these numbers are based on However, any celebrations on the field broadcasting revenue in comparison to
projections using the previous year’s were tempered by the financial results the prior year. Average attendances fell
information, with more TV revenue off it. Turnover fell 11% to £6.1m by c2,000 season-on-season. However,
and player sales offsetting the (2009: £6.9m). This was principally this was more than offset by Rangers
reduction in gate receipts. attributable to the following factors: playing 54 home matches in the current
a bottom six league finish; poor runs season compared to 49 in the prior year.
Heart of Midlothian in both cup competitions; lingering
Hearts was unable to emulate last effects of the fall of Setanta in 2009; St Mirren
season’s success on the pitch, finishing and a £0.15m drop in hotel income. St Mirren’s fourth consecutive season
sixth (2009: third) in the Clydesdale in the SPL and first full season at their
Bank Premier League, which reduced Motherwell new St Mirren Park home brought
performance-related turnover. 2009/10 was a successful season for further security to the revenues of the
Overall, the Tynecastle side’s turnover the Fir Park club finishing fifth in the Paisley club. Turnover eclipsed last
fell 5% to £7.9m (2009: £8.3m). SPL (2009: seventh), which ensured season’s record of £3.5m by 9% –
However, match-day revenues held qualification for the Europa League for due to both football and commercial
firm as Hearts consolidated its place as the second successive season (although income streams enhancing the top line
the third-best-supported team for the qualification in the prior season was to £3.9m. On a football front, St Mirren
fifth consecutive season, with average achieved through the fair-play rule). finished the season in an improved
home attendances in excess of 14,000. This on-the-field success mitigated 10th position (2009: 11th), while an
the impact of the financial downturn appearance at Hampden for the League
Hibernian (particularly the reduction in revenue Cup Final contributed to the majority
Hibs’ turnover fell 8% to £7.1m (2009: attributable to Setanta’s departure and of the year-on-year increase.
£7.7m), despite an improved fourth- the 4% fall in attendances) to maintain
placed league finish (2009: sixth). turnover at £3.4m. St Johnstone
This was partly due to reduced St Johnstone’s first season back in the
seasonal membership prices, the Rangers SPL after a seven-year absence brought
absence of European football and the Season 2009/10 saw Rangers crowned additional revenue to the Perth club.
closure of the club’s East Terrace from SPL champions for the second Turnover broke the £4m barrier for the
February 2010 until the end of the successive season. However, the first time in the club’s history (2009:
season to enable the construction of growth in revenue to £56.3m (2009: £2.5m) on the back of match-day
the new East Stand. These results are £39.7m) was primarily due to attendances increasing 34% in addition
in stark contrast to three seasons ago, commercial income rising £16.1m to improved commercial income streams.
when the club won the CIS Insurance to £21.7m as a result of participation On the field, St Johnstone finished the
Cup and participated in European bonuses and market pool-related season in a respectable eighth place,
competition, posting record turnover income deriving from the UEFA guaranteeing its SPL status for a
levels of £9.8m. (This drives home the Champions League group phase. further season.
need for the club’s fortunes on the park This compares favourably with the
to stimulate its off-the-park finances.) prior year, when FBK Kaunus knocked
Additionally, the increased capacity of Rangers out at the qualifying stage.
the completed East Stand will bring the In the current season, Rangers was
total capacity to 20,400 seats, the sole Scottish representative,
providing more opportunities to create enhancing the market pool element
extra revenue from home matches. and underlining the significance of
the Old Firm’s continued involvement
in this competition.
Season 2009-10 9Attendance levels
The impact of the recession – Total stadium utilisation plummeted to their discretionary expenditure in
specifically: increasing unemployment, 68% (2009: 75%), with the largest falls all areas. Attendances mirror the
job insecurity, diminished disposable in average attendances being felt by deterioration in the financial climate
income and corporates reducing Aberdeen and Celtic – 2,468 and in 2009/10, with the clubs increasingly
entertainment budgets – has hit 12,089 respectively. Of the SPL stadia, facing pricing pressure from general
match-day attendances hard. 42% remained greater than half-empty admission and corporate attendees alike.
Our research outlines the presence of during the season (2009: 17%), We’ll monitor the average attendances
a time lag, as a result of the economic emphasising the impact of the recession and the resultant match-day revenues
downturn taking place after supporters on even the most loyal fans’ pockets. with great interest in our next annual
had committed to season tickets during It should be noted that utilisation review – as further decline to the main
2008/09, with the impact being felt by figures are based on average attendance income stream for the SPL clubs could
nine of the 12 SPL clubs during 2009/10. as a proportion of stadium capacity. have serious ramifications when
(Only Hearts, Kilmarnock and newly coupled with the stagnant TV revenue.
promoted St Johnstone witnessed Acknowledging the financial climate, This is a particular concern for Celtic,
improved gate numbers season- Rangers froze season ticket prices for which still has by far the largest wage
on-season.) the third successive season and bill in the league. Should the club’s
introduced a family initiative at the 12,000 regulars stay away again
On the back of SPL crowds holding up start of season 2008/09 that would during season 2010/11, this would
well during season 2008/09 (up 1% prove more timely and relevant than remove about £5m from the club’s
from the prior year), season 2009/10 the board expected, by driving sales bottom line.
witnessed the greatest drop in to a record 43,107 full-price season
attendances since the inauguration tickets. Consequently, Rangers has
of the SPL in season 1998/99, with now replaced Celtic as the club with
average attendances declining by the highest average attendance in the
around 1,523 spectators a game. SPL, with 1,982 more regularly
Nine teams saw an average of more attending Ibrox.
than 5,000 a game (2008/09: 10);
far from the halcyon days of 2000/01 Clubs are undoubtedly facing a
and 2002/03, when every SPL club challenge in the corporate sector at a
drew more than 5,000 on average. time when businesses are reviewing
Average attendance by club
Average Average Utilisation Utilisation 09 vs. 10 Stadium Unoccupied % change
attendance attendance 2009/10 2008/09 capacity seats in average
2010 2009 2010 attendance
Aberdeen 10,461 12,929 47% 58% (2,468) 22,199 11,738 -19%
Celtic 45,582 57,671 76% 96% (12,089) 60,355 14,773 -21%
Dundee United 7,864 8,654 55% 61% (790) 14,209 6,345 -9%
Falkirk 5,635 5,639 81% 81% (4) 6,935 1,300 0%
Hamilton 3,005 3,708 50% 62% (703) 6,000 2,995 -19%
Heart of Midlothian 14,484 14,398 83% 83% 86 17,420 2,936 1%
Hibernian 12,164 12,684 70% 72% (520) 17,500 5,336 -4%
Kilmarnock 5,919 5,727 33% 32% 192 18,128 12,209 3%
Motherwell 5,307 5,522 39% 40% (215) 13,742 8,435 -4%
Rangers 47,564 49,534 93% 97% (1,970) 51,082 3,518 -4%
St Johnstone 4,717 3,516 44% 33% 1,201 10,673 5,956 34%
St Mirren 4,414 5,411 55% 68% (997) 8,006 3,592 -18%
Totals 167,116 185,393 68% 75% (18,277) 246,249 79,133 -10%
Source: Scotprem.com
10 PwC Annual Financial Review of Scottish FootballWage-to-turnover
Aberdeen Additionally, as a result of the increased These successive annual rises are in
Aberdeen’s wage bill fell 20% to £4.6m proportionate drop in revenues contrast to the club’s previous strategy
(2009: £5.8m), mainly because last described previously, Celtic’s wage-to- of removing the higher-earning players.
season the Pittodrie side completed the turnover ratio rose to 59% (2009: 53%). The overall impact of the increased
process started several years ago by This ratio, which incorporates the wage costs and turnover saw the
Duncan Fraser and the board to better income from European progression, wage-to-turnover ratio go up to 65%
align the bonus structure to team compares with an average of 68% (2009: 62%).
performance – with substantial recently reported for the English
rewards only being paid if success is Premiership in season 2009/10 – Falkirk
achieved (thereby providing better and remains below our recommended Following the board’s decision at the
control over the cost base.) For season sustainable ratio of 60%. start of season 2008/09 to grow the
2009/10, this meant the club’s poor first team budget as part of its quest for
The Celtic board has recognised the a top-six place continuing to filter into
performance on the park was reflected
need (indeed, it’s a worldwide need) the current season (and combined with
by below-budget wage costs.
to maintain strict control of wage costs, the drop in revenues mentioned above),
The overriding impact of these actions,
and while the collapse of Setanta the wage-to-turnover ratio soared 9%
coupled with the fall in turnover
resulted in reduced television revenues, to 74% (2009: 62%.) In absolute terms,
mentioned above, resulted in the
the board plans to achieve a managed the total wage bill fell 14% to £2.9m
wage-to-turnover ratio falling to 65%
ratio between revenue and labour costs (2009: £3.3m) following cuts made
(2009: 67%). Although this is still
against a backdrop of enhanced to get the club’s finances back on an
above the recommended ratio of
television contracts agreed in England. even keel.
60%, the reduction is a move toward
sustainability. It remains the club’s
Dundee United Hamilton
strategic goal to enhance revenues
Wage costs at the Tannadice club grew As Hamilton filed abbreviated accounts
to reduce this ratio further.
for the third successive season, up 4% on in the current year, no information
the back of 8% and 29% increases in the regarding wages was available.
Celtic
past two seasons. This was a result of The figures are for illustrative
Celtic continues to carry the heaviest
Peter Houston’s predecessor Craig Levein purposes only.
wage burden in the SPL and although
striving (with the board’s support) to
this cost fell £2.3m to £36.5m (2009:
build a squad capable of fulfilling
£38.8m), it’s still 23% greater than the
European aspirations. As a result,
club’s Glasgow rival Rangers, partly
many of these players were under
due to its greater squad size.
attractive contracts.
Wage-to-turnover ratio analysis
Total wages Total turnover Wages/turnover ratio
2010 2009 Movement 2010 2009 Movement 2010 2009
£’000 £’000 % £’000 £’000 % £’000 £’000
Aberdeen 4,601 5,756 -20% 7,053 8,557 -18% 65% 67%
Celtic 36,483 38,751 -6% 61,715 72,587 -15% 59% 53%
Dundee United 3,963 3,604 10% 6,052 5,792 4% 65% 62%
Falkirk 2,859 3,327 -14% 3,839 5,366 -28% 74% 62%
Hamilton 1,543 1,050 47% 2,543 1,859 37% 61% 56%
Heart of Midlothian 9,114 10,477 -13% 7,908 8,307 -5% 115% 126%
Hibernian 4,798 4,742 1% 7,064 7,711 -8% 68% 61%
Kilmarnock 4,043 4,052 0% 6,136 6,922 -11% 66% 59%
Motherwell 3,350 3,413 -2% 4,380 4,430 -1% 76% 77%
Rangers 28,133 30,662 -8% 56,287 39,704 42% 50% 77%
St Johnstone 2,831 1,926 47% 4,045 2,474 64% 70% 78%
St Mirren 2,955 2,734 8% 3,875 3,546 9% 76% 77%
Total 104,673 110,494 -5% 170,897 167,255 2% 61% 66%
Source: Statutory Accounts
Season 2009-10 11The wage-to-turnover ratio fell to 61%
(2009: 66%) albeit still skewed upwards by
Hearts’ continued excessive ratio of 115%.
Heart of Midlothian acknowledged this rise and it is changing the management team.
The Gorgie club managed to reduce expected that the reduction in Add to this one further member of the
its total wage bill by £1.4m during the employees will assist cost control playing staff being on the books and
year to £9.1m. This, coupled with the going forward. the club’s wage costs grew 8% to £3.0m
relatively reduced fall in turnover, led (2009: £2.7m). However, when
to the wage-to-turnover ratio falling Motherwell considered along with the 9% growth
from 126% to 115%. This is the first Although the current season witnessed in turnover, the wage-to-turnover ratio
time in four seasons that the ratio has a 1% reduction in Motherwell’s reduced 1% to 76%. (2009: 77%).
fallen below 120%, but it remains wage-to-turnover ratio, the Lanarkshire Although an improvement, the ratio
significantly in excess of the pre- club continues to be the second-poorest remains adrift from the recommended
Romanov era, when the wage bill was performer on this measure – at 76% sustainable wage-to-turnover ratio of
c£4.5m. This is partly due to Hearts (2009: 77%) – with only Hearts faring 60% so it remains imperative for the
having one of the largest playing worse. 76% remains above the Paisley club to service this level of
squads in the SPL. sustainable 60% which the club was operating costs to remain in the SPL.
heading towards following concerted
Hibernian efforts to reduce the wage bill during St Johnstone
Hibs’ expenditure increased prior seasons. To ensure the club’s For the fifth consecutive season, wage
marginally to £4.8m (2009: £4.7m). long-term prosperity, the board will costs increased. This was because of
However, combined with a larger need to continue to pull on the support the increased costs of attainment
proportionate drop in turnover as of the entire Motherwell community to coupled with attracting a greater
outlined above, the result is a further redress the declining revenues. It will calibre of player given the club’s SPL
rise in the wage-to-turnover ratio to also need to monitor the club’s wage involvement, resulting in wage costs
68% (2009: 61%) – the highest level structure closely. increasing 47% to £2.8m (2009: £1.9m).
experienced by the club for over five However, when considered alongside
seasons, and above the recommended Rangers the 64% rise in turnover, the wage-
sustainable level of 60%. In addition, For the second consecutive season, net to-turnover ratio fell 8% to 70%
this is in contrast to the 2007 season operating expenditure went down – (2009: 78%). Similar to St Mirren, this
when Hibs operated at the most falling £4.4m to £43.9m. This reflected represents progress. Nevertheless, the
sustainable wage-to-turnover ratio in the reduced salary levels and other ratio remains above the recommended
the SPL (41%) due to falling income. efficiencies introduced during the year. sustainable wage-to-turnover ratio so
When considering this in tandem with it’s essential that St Johnstone remains
Inverness Caledonian the greater proportionate rise in in the SPL to service these costs.
Thistle turnover, the resultant ratio of total
As Inverness Caledonian Thistle wages-to-turnover fell from 77%
produced abbreviated accounts in the (2009) to a healthier 50%. These steps
current year, no information on wage outline the board’s efforts to stabilise
costs was available. running costs so it can operate at a
more sustainable level, while also
Kilmarnock underpinning the significance of
Kilmarnock’s wage bill remained Champions League-related income to
unchanged from last season at £4m, servicing the cost base of the Ibrox club.
even though total employees fell from
256 to 207. This, coupled with the drop St Mirren
in turnover mentioned above, resulted For the fourth straight season, wage
in Kilmarnock’s wage-to-turnover ratio costs rose due to the club’s on-field
increasing from 59% to an unsustainable success directly correlating with the
66%. Chairman Michael Johnson, who greater bonuses accruing to the
took steps during the current financial players, in addition to the financial
year to reduce the wage bill, contractual liabilities incurred in
12 PwC Annual Financial Review of Scottish FootballPlayer registration fees
Celtic’s enhanced amortisation charge The gain on sale of player transfers
The costs associated of £8.4m compares with last season’s
£7.4m, reflecting the continued
remained fairly stagnant at £12m due to
there being no significant player sales
with the amortisation investment in the playing squad. either this season or last. (Season 2007/08
of player transfer fees This spend is mainly a result of the
charge for players acquired during the
stood out when a gain of £29m was seen
thanks to the high-profile departures
have fallen slightly to year, including KiKi Sung-Yong and of Craig Gordon and Alan Hutton to
£17m (2009: £19m) Marc-Antoine Fortuné for £2.1m and
£3.8m respectively (offset by the
Sunderland and Tottenham Hotspur
respectively). As outlined above,
on the back of a net elimination of the charge for players although Scott McDonald (£3.5m),
decrease in transfer who left following the end of the
2008/09 season).
Barry Robson (£1.5m) and David Murphy
(£1.5m) departed south to the
market activity for Premiership, the magnitude of these
Rangers’ amortisation on player
the Old Firm. registrations fell to £7.4m (2009:
transfers was in line with the prior
season. This demonstrates the relative
£8.8m) with the cash flow impact purchasing power of the English
of £8m worth of additions made last league clubs on the back of their
season affecting this year’s accounts. lucrative TV contracts as it’s no longer
The gain on disposal of player the case that only the elite clubs can
registrations largely comprises the sale attract the best Scottish talent.
of Barry Ferguson (£1.5m) and Charlie
Adam (£0.5m), which enabled the
Ibrox club to make this investment but
still derive a positive cash inflow.
After quadrupling its charge in the past
five years, Hearts’ charge for the year
dropped to £0.7m (2009: £2.1m),
principally due to its fall in transfer
market activity.
Season 2009-10 13Dundee United
Profit/(loss) before tax Dundee moved out of the red, posting
a profit of £67k (2009: loss of £0.1m).
However, the 2009 loss was impacted
through a non-recurring exceptional
item; a bad debt of £0.3m relating to
the collapse of Setanta. Excluding this
exceptional item, the company’s profit
for the year fell £55k, primarily due
to reduced gains on player and
This £20.9m operating profit swing management disposals. This underlines
The SPL made an is almost entirely due the positive
turnaround in European performance
the reliance of non-Old Firm clubs on
player sales.
aggregate profit for the when compared to last year’s early
fifth time in six seasons. exit to FBK Kaunas. Falkirk
The Bairns’ sixth SPL campaign saw
Aberdeen the club return to the red after having
Standing at £1.3m, this represents The loss before tax position improved posted a £0.1m profit last season due
a significant turn-around from last to £0.1m (2009: £1.6m), largely due to to a successful Scottish Cup Final run.
season’s loss of £22.4m. Given that the the directors reviewing the carrying This was due to Setanta and the
broadcasting contract with Sky/ESPN value of all freehold land and stands, resultant drop in SPL income, as well
has remained constant, this underpins executive boxes and permanent fixtures as the recession causing commercial
the flexibility of the clubs’ business at the year end with reference to a revenues to suffer badly. The resultant
models to realign their cost bases with depreciated replacement cost valuation. loss for the season of £0.9m was
the prevailing market conditions. The resulting valuation of Pittodrie reported despite attendance levels in
In addition, the SPL clubs’ relatively Stadium and the surrounding land on a the SPL holding firm from the resilient
better performance in European depreciated replacement cost basis was supporter base.
competitions compared to the prior £17m – an increase of £1.8m from the
season boosted their top and bottom book value. Stripping this revaluation Hamilton
lines respectively. gain out, the club continued to suffer The South Lanarkshire club’s second
from the impact of the renegotiated season of top-flight stability was
Six of the SPL clubs made a profit Sky/ESPN deal, which contributed a rewarded with the club posting a
during the year (2009: five), with hit of approximately £1m to the bottom £0.9m profit (2009: £0.3m). This was
Celtic being the only club to post a line, while poor on-field performances predominately derived from the sale
loss of more than £2m on the face of it. adversely impacted revenue streams. of James McCarthy to English
This shows the tight stewardship and
Premiership club Wigan, offsetting
cost-controlling measures being Celtic the reduction in revenues from gate
implemented by chairmen and chief For the first time since season 2005/06, receipts (down 19%).
executives as they sought to weather Celtic slipped into the red and posted
the impact of the economic downturn. an overall bottom line loss for the year. Heart of Midlothian
However we need to adjust for two The club experienced a £4m swing in the On a profit before tax basis, Hearts
significant items to establish the bottom line, falling from a profit of £2.0m managed to break even, with a profit
underlying performance which are – to a loss of £2.1m in the current year. of £39k (2009: loss of £8.6m) being the
exceptional debt forgiveness and While the loss is slightly disconcerting, club’s first in 11 years. This turn-
Rangers’ success in Europe. it was almost inevitable following the around was primarily due to a £7.9m
Exceptional credits were realised in reduction in turnover during the year. forgiveness of debt by the club’s main
the year by Hearts and Kilmarnock, The club still managed to post an shareholder and related parties.
with both clubs’ results being boosted operating profit of £4.5m; however, This also means Hearts is on course to
by related parties forgiving £8m and this was considerably down from the meet future UEFA financial fair-play
£1m of debt, respectively. These are £11.2m realised in the prior year. As a guidelines being phased in across
one-off items and don’t represent a result, if the club wishes to operate at Europe’s clubs from season 2011/12
true flow of income for the clubs. a sustainable level without relying on onwards. Although Hearts didn’t
Champions League revenues, it will manage to take further strides toward
The season’s results were particularly
need to cut costs further. Nevertheless, its medium-term strategy of reaching
enhanced by a good European run for
the fall in top line didn’t directly result operational break-even (following
Rangers. On the back of playing in
in an equivalent fall in bottom line – operating costs increasing to £5m
the Champions League group phase,
indicative of Celtic’s solid financial core (2009: £4.3m)), these are expected to
Rangers turned a prior year operating
and worldwide commercial appeal. reduce significantly in season 2010/11
loss of £8.5m into a £12.4m operating
profit, with turnover increasing by £17m. following a series of improvements to
the effectiveness of the operating side
of the business. Going forward,
14 PwC Annual Financial Review of Scottish Footballthe directors intend to improve Motherwell St Mirren
operational efficiencies in tandem with After returning to the red for the first St Mirren returned to the red and
investigating the related revenue- time in six years during the prior season, posted a trading loss before tax of
generating opportunities through a the Lanarkshire club returned to £0.3m (2009: £0.9m profit). This was
redeveloped Tynecastle Stadium. profitability (albeit £19k) during primarily due to the financial
season 2009/10. This was mainly contractual liabilities incurred in
Hibernian derived from the sale of players changing the management team, as
The club achieved a profit before tax totalling £1.1m. Meanwhile, well as the interest income associated
of £0.1m (2009: £0.7m), making it the participation in the Europa League with the sale of the club’s Love Street
sixth consecutive year of bottom line and a top-six finish offset the ground not recurring during the
profitable trading. However, as in the additional burden placed on the club season (2009: £0.5m.) However, when
prior two seasons, the club traded at an by falling attendances, the revenue stripping out depreciation from the
operating loss of £1.4m (2009: £1m) losses incurred following the demise bottom line, the club achieved its
and yet again relied on player trading of Setanta and the fall in corporate target of a cash break-even.
for profitability. The net contribution support and hospitality due to the
from player sales was £2.3m (2009: economic downturn. St Johnstone
£2.4m) primarily due to the sale of In what would be its first season back
David Murphy to FA Premier League Rangers playing in top-flight football, the Perth
club Birmingham. Hibs would prefer 2009/10 was the third full season side made a second successive loss of
not to rely on profitable player trading incorporating the JJB Sports licensing £0.06m (2009: £0.2m). This was
as a viable long-term strategy and has agreement. However, in stark contrast principally attributable to the higher
undertaken measures such as a pay to last season, the club’s participation administration costs associated with
freeze for the second successive year in the Champions League group stage the demands of participating in the
to move closer toward operational directly resulted in a bottom line SPL and the costs of the enhanced
profitability. profit of £4.2m (2009: £14.1m loss). squad more than offsetting the
These results are similar to the profit commercial revenue and additional
Kilmarnock of £6.6m posted in season 2007/08, gate receipts from the 1,201 fans on
The Ayrshire club posted a second when the Ibrox club last participated average attending each home game.
successive loss before tax (2010: in this competition and stresses the
£0.5m; 2009: £0.9m), even after the need for Rangers to qualify for the
incorporation of a £0.9m exceptional group phase every season to meet the
credit following the part write-off by overheads of a club of this magnitude.
Jamie Moffat from his loan account. Again, this demonstrates that
Stripping out this exceptional item, Champions League football is of
the underlying loss before tax of the paramount importance to the Old
club increases to £1.4m. This is Firm’s financial health.
principally derived from the £0.8m
drop in turnover mentioned above.
Outlining the significance of profitable
Net profit/(loss) before tax by club
underlying trading – trading the club
will need to improve in the absence of 2010 2009 Movement
£’000 £’000 %
any new capital being introduced or
yielding significant surpluses from Aberdeen (84) (1,642) -95%
player transfers. Celtic (2,131) 2,003 -206%
Dundee United 67 (137) -149%
Falkirk (930) 120 -875%
Hamilton 863 269 221%
Heart of Midlothian 39 (8,634) -100%
Hibernian 139 686 -80%
Kilmarnock (467) (950) -51%
Motherwell 19 (704) -103%
Rangers 4,209 (14,085) -130%
St Johnstone (60) (190) -68%
St Mirren (328) 906 -136%
Total 1,336 (22,358) -106%
Source: Statutory Accounts
Season 2009-10 15Balance sheet
Overview
The SPL clubs’ combined balance sheet
The total net assets of Total Total Movement
the SPL clubs at the 2010
£’000
2009
£’000
end of season 2009/10 Fixed assets
remained consistent Investments 10 9 11%
with the prior year at Intangible assets 26,690 35,818 -25%
Tangible assets 272,867 272,975 0%
£119m, with the £3.5m Total fixed assets 299,567 308,802 -3%
deterioration in the net Current assets
assets position at Celtic Stocks 2,289 2,810 -19%
being offset by the Debtors 18,920 19,489 -3%
£4.2m improvement Cash at bank and in hand 11,634 20,108 -42%
Total current assets 32,843 42,407 -23%
in the debt profile of Creditors: due < 1 year (105,740) (132,583) -20%
Rangers, the club’s Net current liabilities (72,897) (90,176) -19%
Glasgow rival. Total assets less current liabilities 226,670 218,626 4%
Creditors: due > 1 year (107,901) (99,986) 8%
Net assets 118,769 118,640 0%
Capital and reserves
Called up share capital 46,790 46,501 1%
Share premium account 154,970 155,012 0%
Rangers Bond 7,736 7,736 0%
Revaluation reserve 90,238 89,864 0%
Capital redemption reserve 2,728 2,768 -1%
Other reserves 30,829 30,829 0%
Profit and loss reserves (214,522) (214,070) 0%
Total 118,769 118,640 0%
Source: Statutory Accounts
16 PwC Annual Financial Review of Scottish FootballNet assets (liabilities) per club
Key balance sheet 2010 2009 Movement £ Movement %
highlights: Aberdeen 2,329 2,413 (84) -3%
Celtic 39,860 43,350 (3,490) -8%
Dundee United (3,107) (3,173) 66 -2%
Falkirk 1,614 2,211 (597) -27%
Hamilton (484) (1,348) 864 -64%
Heart of Midlothian (23,980) (24,019) 39 0%
Hibernian 15,010 14,988 22 0%
Kilmarnock 2,674 3,139 (465) -15%
Motherwell 1,014 995 19 2%
Rangers 70,766 66,557 4,209 6%
St Johnstone 2,138 2,361 (223) -9%
St Mirren 10,935 11,166 (231) -2%
Total 118,769 118,640 129 0%
Source: Statutory Accounts
• Intangible assets fell 25% to £26.7m • Net debt grew at seven member
(2009: £35.8m) during the year, clubs. And, in aggregate, net debt
due to reduced investment by the crept up 1% to £109.4m (2008:
member clubs in their playing £108.4m) – with Aberdeen, Celtic
squads. This was particularly evident and Hearts contributing to the
at Rangers, where intangibles fell majority of this increase. However
£9.3m alone on the back of player external debt reduced to £74.5m
contracts being allowed to run their from £86.8m resulting in a £1m
course due to the cash flow reduction in the interest cost to
constraints at the Ibrox club. service the debt.
• Tangible fixed assets remained • Borrowings due within the year
constant during the year at £273m, reduced 27% to £26.8m
outlining that any depreciation has (2009: £36.6m).
been offset with capital expenditure.
• Six of the SPL clubs witnessed
deterioration in their net asset/
liability position during the year,
with the most notable fall being at
Celtic as a direct consequence of the
club’s additional debt.
Season 2009-10 17Analysis of combined SPL net debt
2010 % of total 2009 % of total
2010 2009 Movement % debt debt
Cash at bank and in hand 11,837 20,109 -41%
Bank overdraft (7,150) (12,880) -44%
Net cash/(overdraft) 4,687 7,229 -35% -4% -7%
Borrowings due within one year (26,808) (36,613) -27% 25% 34%
Borrowings due in more than one year (76,438) (67,587) 13% 70% 62%
Amounts owed under hire purchase (10,850) (11,476) -5% 10% 11%
Net debt (109,409) (108,447) 1% 100% 100%
Source of borrowings 2010 £’000
Borrowings due < 1 year Borrowings due > 1 year
Overdraft/
HP/ Finance Total (Cash)
Club External Connected External Connected Leases Borrowing balance Net Debt
Aberdeen (11,492) (300) (2,000) (118) (13,910) 1,044 (12,866)
Celtic (136) - (13,225) - (6,583) (19,944) 5,867 (14,077)
Dundee Utd (250) (435) (5,150) (45) (5,880) 154 (5,726)
Falkirk (10) (184) (7) (201) 138 (63)
Hamilton (20) (10) (30) 238 208
Hearts (11,867) - - (24,284) - (36,151) 51 (36,100)
Hibernian (240) (250) (5,780) - (32) (6,302) 2,240 (4,062)
Kilmarnock (78) (7,088) (11) (7,177) (3,361) (10,538)
Motherwell - - - (634) (11) (645) 238 (407)
Rangers (1,000) (700) (18,000) - (4,027) (23,727) (3,347) (27,074)
St Johnstone - - - - - - 1,320 1,320
St Mirren - (30) - (83) (16) (129) 105 (24)
Total (25,093) (1,715) (49,437) (27,001) (10,850) (114,096) 4,687 (109,409)
2009% 23% 2% 45% 25% 10% - -4% 100%
2010% 18% 15% 65% 3% 5% - -6% 100%
Source: Statutory Accounts
18 PwC Annual Financial Review of Scottish FootballNet debt by club Aberdeen
2010 Net 2009 Net Movement Movement Aberdeen’s net debt rose 17% to
Club debt £’000 debt £’000 £’000 % £12.9m (2009: £11.0m), principally
Aberdeen (12,866) (10,977) (1,889) 17% due to the club’s poor on-field
performance and subsequent decline
Celtic (14,077) (11,851) (2,226) 19%
in trading conditions. The club’s debt
Dundee United (5,726) (6,172) 446 -7% continues to be funded through the
Falkirk (63) 24 (87) -363% banking arrangements entered into
Hamilton 208 (7) 215 N/A three seasons ago and is due for
renewal during season 2010/11.
Heart of Midlothian (36,100) (34,779) (1,321) 4%
The term loan at the year end remained
Hibernian (4,062) (3,584) (478) 13%
at £9.7m; however, the club’s accrued
Kilmarnock (10,538) (11,232) 694 -6% unpaid interest grew a further £0.7m,
Rangers (27,074) (31,118) 4,044 -13% with the cash at bank position
Motherwell (407) (471) 64 -14%
deteriorating £1.3m to £1.0m (2009:
£2.3m) following the club’s disappointing
St Johnstone 1,320 1,635 (315) -19%
ninth-place finish in the SPL and poor
St Mirren (24) 85 (109) -128% performances in the cup competitions.
Total (109,409) (108,447) (962) 1%
Average per club (9,117) (9,037) (80) 1% Celtic
The Parkhead club’s financial
Average per club
(excl Old Firm) (6,826) (6,548) (278) 4% performance during the past five years
has largely been driven by success in
Source: Statutory Accounts
European competitions, typified by
appearances in the group stages of the
UEFA Champions League for seasons
The £1m rise in net debt during season rapidly. Although seven of the clubs 2006/07, 2007/08 and 2008/09
2009/10 was predominately driven by witnessed deterioration in their debt sustaining turnover at the £70m level.
the deteriorating position at Aberdeen, position, of these only Aberdeen, However, the absence of Europe’s
Celtic and Hearts not being fully offset Celtic and Hearts witnessed an premier club competition in the
by the improved positions at increase in their debt of more than current season saw revenues alone fall
Kilmarnock and Rangers. £0.5m. £10.9m, contributing to a £2.1m loss
(2009: profit £2.0m). Net debt slipped
The rise in debt at Aberdeen was This is even more impressive given
£2.2m during the season to £14.1m
mainly driven by reduced revenues the fall in match-day revenues through
(including the HP and finance leases
arising from the fall in average season ticket and match-day ticket
liability), being the first such decline
attendances. Meanwhile, Celtic didn’t sales alike resulting in 18,277 fans
in five seasons following the club’s
play in the UEFA Champions League choosing not to attend their club’s home
prudent stewardship.
for the first time in four seasons. games every other week. What’s more,
Hearts’ debt went up £1.3m, even the majority of SPL clubs noted a fall in
Falkirk
after incorporating the effect of the corporate hospitality and advertising
Falkirk was one of only three SPL clubs
forgiveness of £7.9m in debt via an revenues as businesses cut back on
to return a positive cash position and
investment from the club’s main non-essential expenditure. Add to this
operate without debt. Although funds
shareholder and related parties. the stagnant broadcasting revenue
were boosted in the year via a £0.3m
However, in light of the turbulent from ESPN and Sky following the
rights issue. However, net assets
current economic climate, it’s also much-publicised demise of the more
reduced £0.6m to £1.6m (2009: £2.2m)
testament to the stewardship of the lucrative Setanta deal, and it’s evident
due to the downturn in revenues
chairmen and chief executives of the that the prudent approaches taken by
following the demise of Setanta and
other SPL clubs that they’ve managed many chairmen in comparison to previous
the impact of the recession on
to weather the financial storm without seasons has contributed to preventing
commercial revenues, resulting in
their clubs’ finances deteriorating a repeat of the Gretna situation.
Falkirk slipping into a debt position.
Season 2009-10 19You can also read
