The 20th annual financial review of Scottish Premier League football - Season 2007/08
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The 20th annual financial review of Scottish Premier League football Season 2007/08
Contents Introduction 4 Profit and Loss 6 Balance Sheet 22 Cash Flow 30 Club Five-Year Review 36 Post Balance Sheet Events 44 Appendix 1: The Season That Was 2007/08 46 Appendix 2: What The Chairmen Thought 50 Appendix 3: Significant Transfer Activity 52 Appendix 4: The National Team 54 Appendix 5: January Transfer Activity 56
Introduction
David Glen
Welcome to the 20th annual Other financial highlights include:
PricewaterhouseCoopers financial
review of Scottish Premier League • Combined turnover increased by
(SPL) football finance. an impressive 15% from £170m
to £196m. Aberdeen and Rangers
A record-breaking year? were the main drivers of this rise,
posting increases of 71% and
The eye-catching number from 54% respectively.
this year’s report is the £23m profit
• Total wage costs increased by
generated by the SPL clubs. Not
16% from £96m to £112m. This
only is this a remarkable turnaround
was largely impacted by the
from a decade of losses but it stands
successful European campaigns
as the largest profit ever recorded in
of Aberdeen and Rangers, and
SPL history.
the resulting increase in wages
and bonuses arising from the
With the exception of Hearts,
additional games played.
every club recorded a profit or was
close to break-even, whilst eight • The wage to turnover ratio has
clubs reduced their debts and two remained constant at 57%.
(Inverness and Falkirk) operated However Inverness and St
with no debt. This performance is Mirren have edged past the
testament to the action that has been recommended sustainable
taken across the sector to rein in ratio of 60% during the year,
costs and finally achieve a sustainable whilst Hearts’ ratio remains in
business model. excess of 120% for the second
successive season.
Before we get too carried away
however, there were also a number
• Combined gains on player sales
increased from £19m in 2007 to
of significant, and perhaps one-
£29m in 2008. In addition to those
off, factors that occurred during
already mentioned, significant
this season:
gains were made by Hibernian and
Kilmarnock from their respective
• Hearts sale of Craig Gordon to
sales of Steven Whittaker and
Sunderland for £9m.
Steven Naismith, both to Rangers.
• St Mirren’s sale of Love Street
generating a gain of £9.2m.
• Total SPL net debt reduced 8%
in the year to £88m. Rangers
• Rangers sale of Alan Hutton to was the only club to increase its
Tottenham Hotspur for £9m. net debt, whilst Hearts benefited
from a £12m debt-for-equity swap
Having said that, the underlying undertaken during the period.
operating profit for the SPL showed a The four most leveraged clubs,
creditable growth from £7m to £10m, Aberdeen, Hearts, Kilmarnock and
driven by the success of SPL clubs Rangers now constitute 83% of
on the European stage. the total net debt (2007: 73%).
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Introduction. 4Credit before the crunch? Should Setanta not be able to fulfil its Gretna’s progress from the Third
contract, it will be imperative that the Division to SPL within six years was
A record profit is not to be knocked, SPL move as quickly as possible to phenomenal and even encompassed
however it was generated, but it may secure an alternative broadcaster, as a Scottish Cup Final in addition to
flatter to deceive, particularly in the a number of the clubs may struggle to an appearance in the UEFA Cup.
current economic environment. survive without this income. However, on the back of this success,
the reality was that at the other end of
The world economy is in recession Whatever happens on this front we the spectrum the club also managed
and Scottish football is not immune can expect a close season with most to break the SPL’s low attendance
from the financial fallout, and the clubs reducing their squad sizes and record on 5 April 2008 at a game
first signs of which were apparent proceeding with extreme caution in against Inverness, when just 431
during the last season with reductions the transfer market. Cutting costs turned up.
in corporate hospitality and is the only way to go in this fragile
sponsorship. We will be keeping a financial world as the banks are no Gretna’s games against the Old Firm
close eye on this year’s season ticket longer there to plug the gap as they didn’t capture the public’s imagination
sales to see to what extent the clubs’ have in the past. either with the average attendance
supporters are tightening their belts. being just short of 2,300 over the
course of the season. These gate
On top of all of this, at the time ‘the largest profit ever receipts effectively only covered
of writing, there are signs that the recorded in SPL history’ the much quoted £25k the club
television rights contract with Setanta was paying to stage home games
may be under threat, with Setanta at a ground 70 miles away from its
having defaulted on its final payment Raydale home, whilst paying the
for season 2008/09. playing and backroom staff was
funded by the Setanta income, and
The current Setanta contract is any shortfall met by the owner. In this
worth c£13m per season to the SPL, sense it is easy to understand that
or close to £1m per club. For the The fans aren’t going to like it but, this was never going to be a profitable
smaller clubs this can represent 20- unless someone develops a technique arrangement, and when the main
30% of their income; moreover they for the agricultural cultivation of contributor withdrew his support,
were looking forward to this revenue money, that is how life is going to be the club was unable to stand on its
more than doubling to c£31m per for the foreseeable future. own feet.
season under the terms of the new
contract which extended Setanta’s And let’s not forget Gretna Thanks
rights to 2014.
Gretna’s rise to the higher echelons of Thanks once again to my Sports
Scottish Football eventually came at Unit for helping me compile this
a price with the club being dissolved report, in particular David Auld and
at the end of the 2007/08 season. Stuart MacDougall.
Principally its rapid growth, lack of
‘Combined turnover a core fan base and reliance on its
increased by an owner Brooks Mileson’s continued
impressive 15% from financial support meant that when
£170m to £196m’ the latter was withdrawn the club was
unable to survive. David Glen, June 2009
5 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. IntroductionProfit
and Loss
Overview
In contrast to the current financial climate 2007/08, the 111th season of
competitive Scottish football, turned out to be the most financially successful
season ever with the SPL yielding a cumulative profit for the third consecutive
season. These results emanated from the tremendous financial results posted
by the Old and New Firms respectively, and with St Mirren contributing the
greatest pre-tax profit (£10m) following the sale of its Love Street stadium.
Scottish football, with the notable exception of Gretna, is beginning to look
robust, making the SPL more competitive. This is due to the hard work and
prudent decisions made in earlier years now creating a more sustainable
financial position. However, at the time of writing, a dark shadow is cast over
the SPL with Setanta, its television broadcast partner, in apparent financial
difficulty combined with the general financial malaise associated with the
current global economic downturn. The SPL member clubs were hoping
to benefit from an extended four year contract with Setanta worth £125m.
However, this is dwarfed by the £2.7bn English Premiership clubs will receive
from 2007 to 2010. Each English top flight club receives an average media
income from league games of £45m per annum, whereas the combined media
income for SPL clubs totals just over £31m per annum. Further putting this
deal into perspective, the BBC retained the rights to show highlights only of
the English Premiership for the same three seasons (on Match of the Day)
for £171.6m.
Should Setanta be unable to fulfil its financial obligations, it will be imperative
that the SPL find other media partners as soon as possible. For some clubs the
income from the Setanta contract represents up to 30% of their total income.
Without this income drastic cost reductions will be required and some clubs
might not be able to survive this process.
‘The 111th season of competitive Scottish football turned out to
be the most financially successful season ever’
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 6Historic profit/(loss) analysis
£25,000k
£20,000k
£15,000k
£10,000k
£5,000k
£0
(£5,000k)
(£10,000k)
(£15,000k)
(£20,000k)
(£25,000k)
(£30,000k)
(£35,000k)
(£40,000k)
(£45,000k) Old Firm profits/(losses)
(£50,000k) Other profits/(losses)
Total SPL profits/(losses)
(£55,000k)
(£60,000k)
(£65,000k) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
7 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football..Profit and LossOverview continued
The SPL clubs’ combined profit and loss account
2008 2007 Movement
£m £m %
Turnover 196 170 15
Wages (112) (97) 15
Other operating expenses (75) (67) 12
Operating profit before player registrations 10 7 43
Amortisation of player registrations (16) (12) 33
Impairment on player registrations (3) (3) 20
Net gain/(loss) on player registrations 29 19 53
Operating profit 19 11 73
Gain/(loss) on tangible fixed assets 9 (0) (2753)
Exceptional items 2 (1) (282)
Net interest cost (7) (7) 4
Profit before tax 23 3 814
Taxation (0) 0 (938)
Profit after tax 23 3 781
Source: Statutory Accounts
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 8The financial results of the SPL • Total wages increased by 16%
clubs have been obtained from to £112m (2007: £97m), with the
their Statutory Accounts for the majority of it being attributable
year ending 2008. The key financial to Rangers’ £10.1m rise in staff
highlights of season 2007/08 were costs following its domestic and
as follows: European run and the bonus
payments which resulted from this.
• Turnover increased by a
convincing 15% to £196m (2007:
• Amortisation cost of player
registrations increased by £4m
£170m). The Old Firm had mixed
to £16m, with £12.6m of this
results with Celtic’s turnover
cost assigned to the Old Firm
decreasing from its previous
(2007: £9.6m).
record breaking campaign to
£73m (2007: £75.2m). • One third of the gain on sale
of player registration related to
• Rangers witnessed a 54%
the departure of Craig Gordon
increase in revenue to £64.5m
from Hearts – a gain of £10m. In
as a result of its successful
addition, the sale of Alan Hutton to
European and domestic cup
Tottenham Hotspur contributed a
campaigns. The Ibrox club
further £9m to the total SPL gain
played an exhausting 68 games
of £29m. Internally within the SPL,
over the course of the season,
other notable sales were that of
a Scottish record. This record-
Steven Naismith from Kilmarnock
breaking season with regards to
to Rangers and Barry Robson from
both turnover and bottom line
Dundee United to Celtic, for £1.9m
profits is notable considering that
and £1.3m respectively.
this was the second season to
incorporate the club’s licensing • Total net interest costs remained
deal with JJB Sports. As part stable at £7m (2007: £7m).
of this deal the club no longer
operates retail stores, and so
loses out on a significant amount
of merchandising income,
which was disclosed as £17.2m
in the previous season, as
discontinued operations.
• Further success was noted at
Aberdeen with an exceptional
turnover increase of 71%, buoyed
by semi-final appearances in both ‘Further success was
domestic cups, a fourth place noted at Aberdeen with
finish in the SPL and qualifying an exceptional turnover
from the group stages of the increase of 71%’
UEFA Cup.
9 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football..Profit and LossTurnover
The total turnover of the SPL increased by 15% to £196m in season 2007/08
(2007: £170m). Despite this increase, only six of the twelve member clubs
managed to increase their turnover during the year. The principal factors
driving this total increase were the European successes of Aberdeen and
Rangers, which led to both clubs posting record-breaking top line figures.
Turnover By Club
2008 2007 2008 2007
£000 £000 Movement % Movement%
Aberdeen 12,869 7,519 71 11
Celtic 72,953 75,237 (3) 31
Dundee United 5,845 4,011 46 (3)
Falkirk 4,505 4,190 8 21
Gretna – – – –
Heart of Midlothian 9,161 10,319 (11) 0
Hibernian 8,053 9,847 (18) 13
Inverness CT 2,377 2,877 (17) 5
Kilmarnock 8,664 8,061 7 9
Motherwell 4,653 3,681 26 2
Rangers 64,452 41,768 54 (32)
St Mirren 2,956 2,956 0 74
Total 196,488 170,466 15 3
Source: Statutory Accounts
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss 10Aberdeen front the club progressed to the last utilisation increased to 58% (2007:
16 of the UEFA Champions League 50%) as average attendances
The 2007/08 season was the most for the second successive season. increased by 1,145 spectators per
successful trading year in the club’s home game.
history. The significantly improved Dundee United
financial figures were a consequence Falkirk
of the additional commercial 2007/08 was the first full season with
opportunities from its UEFA Cup run. Craig Levein at the helm and it proved In its fourth consecutive season in
Gate receipts rose 61%, primarily to be one of the most successful the SPL Falkirk once again managed
due to the European run, although seasons in recent times, both on an increase in turnover, witnessing
reaching both the domestic semi- and off the park. The Tannadice club a 8% rise to £4.5m. This followed
finals also helped. Sponsorship and managed a top six finish in the SPL, another seventh placed finish to the
advertising revenue rose 55% on the progression to the fifth round of the season, although narrowly missing
back of selling the overseas rights to Scottish Cup, and was runners up in out on a top six place following
the European games. the League Cup, in what would prove defeat to Aberdeen in the last game
to be a fitting last full season for of the third quarter of the league.
Celtic Eddie Thompson. Although revenue from season tickets
and gate receipts was comparable
Total revenue fell 3% from £75.2m to Financially this compares favourably to the prior year, the increase in
£73m – principally due to a reduction with the clubs previous season’s revenue was achieved through the
in merchandising sales following the ninth placed league finish and early continued support from sponsors
club’s decision to keep the same cup exits, and resulted in revenues and advertisers.
playing kit as the previous season. rising a very creditable 46% to £5.8m
In line with the prior season these (2007: £4m). This means the club Gretna
strong results a were a reflection of is on a better financial footing now
the significance of participation in the than when Thompson first acquired Gretna’s debut season was
higher echelons of European football it in 2002, which is testament to his blighted by financial difficulty as
in addition to the club’s vast global dogged determination to carry out the club entered administration and
commercial appeal. On the field Celtic his responsibilities at Tannadice for subsequently no financial information
won the SPL on the last day of the as long as possible. Revenue was was available for both the 2007 and
season after the title race went down also boosted as a result of improving 2008 seasons.
to the wire, while on the European the product on the pitch – stadium
11 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and LossTurnover continued
Gretna’s rise to the higher echelons of Heart of Midlothian
Scottish Football eventually came at
a price with the club being dissolved Turnover for the period fell 11% to
at the end of the 2007/08 season. £9.2m (2007: £10.3m) due to the
Principally its rapid growth, lack of club’s eighth-placed domestic league
core fan base and reliance on its finish and the associated negative
owner Brooks Mileson’s continued repercussions arising from this. In
financial support, meant that when addition, the club’s early exit from the
the latter was withdrawn the club was Tennents Scottish Cup also directly
unable to survive. affected retail and ticket sales,
contributing to the drop in its top line.
Gretna’s progress from the Third The prior year’s turnover was inflated
Division to SPL within six years was by a lucrative pre-season friendly
phenomenal and even encompassed against Barcelona, which a record
a Scottish Cup Final in addition to crowd of 57,857 attended.
an appearance in the UEFA Cup.
However, even on the back of this Hibernian
success, the reality was that at the
other end of the spectrum the club After two seasons of successive
also managed to break the SPL's low growth, Hibs’ turnover decreased
attendance record on 5 April 2008 at by 18% (£1.8m) in the year to
a game against Inverness, when just £8.1m, due to early exits from both
431 turned up. domestic cup competitions and no
European involvement. This was
Gretna’s games against the Old Firm in stark contrast to the previous
didn’t capture the public’s imagination season when the club won the CIS
either with the average attendance Insurance Cup under the stewardship
being just short of 2,300 over the of John Collins. Despite announcing
course of the season. These gate a modern day record for the number
receipts effectively only covered of season tickets sold, this failed to
the much quoted £25k the club offset the financial ramifications of the
was paying to stage home games poor on-field performance.
at a ground 70 miles away from its
Raydale home, whilst paying the Inverness Caledonian Thistle
playing and backroom staff was
funded by the Setanta income, and As Inverness Caledonian Thistle
any shortfall met by the owner. In this filed abbreviated accounts in the
sense it is easy to understand that current year, no information regarding
this was never going to be a profitable turnover was available.
arrangement, and when the main
contributor withdrew his support,
the club was unable to stand on its
own feet.
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss 12Kilmarnock Rangers participation in this competition,
whilst reaching the club’s first
An extremely disappointing season Season 2007/08 was Rangers’ first European Final in 36 years resulted
on the pitch inversely correlated full season under the management in a further £3m within this revenue
with improved financial results off it. team of Walter Smith, Ally McCoist stream. This is even more impressive
Kilmarnock finished the campaign and Kenny McDowell. The team considering that £17.2m of the
in 11th place, which was in stark delivered trophies and exceeded previous record high turnover was
contrast to 2006/07 where it managed all fans’ expectations by reaching attributable to the discontinued
a very creditable fifth place finish in the UEFA Cup Final, winning both operations prior to the JJB licensing
addition to supplemental revenues domestic cups and whilst taking the agreement being initiated. Gross retail
earned from reaching a domestic title race to the last day of the season. sales have now been replaced within
cup final. This disappointing season Overall, turnover increased by an turnover as net royalty income.
was alleviated somewhat by the £2m incredible 54% to £64.4m, beating
profit on player transfers yielded the previous record of £61m achieved Rangers’ season was dominated by
during the period (2007: £25k), a in the 2005/06 season. these European performances and
major contributing factor to the fixture congestion which resulted
club’s financial results. Overall, Not only was the team successful in 68 games being played, 17 more
turnover was up £0.5m to £8.6m in these four tournaments, but it than in the previous season and 14
(2007: £8.1m). also participated in the lucrative more than the next Scottish club. This
Champions League for the first time directly resulted in income from gate
Motherwell in three seasons and this alone meant receipts and hospitality increasing
a substantial increase in sponsorship by £10m to £35.9m, one of the main
The 2007/08 season was one of and advertising revenue of £8.1m. drivers in improved revenue.
mixed emotions for Motherwell It highlights the importance of
following the tragic death of its St Mirren
captain Phil O’Donnell, whilst
managing to obtain the club’s highest A second successive season in the
league finish in the SPL, closing out SPL saw the club maintaining, almost
the year in third place behind the Old to the pound, its record-breaking
Firm (2006/07: tenth). Principally as turnover levels from the prior year
a result of the club’s vastly improved despite the club experiencing the
league position, turnover increased effects of second-season syndrome in
by £0.97m to £4.65m (2007: £3.68m) the 2007/08 SPL campaign. Interest
following a marked improvement in the Paisley club was reignited on
in gate receipts due to this top six ‘The total turnover of the the back of promotion to the top
finish. Furthermore, the top line was SPL increased by 15% to flight. However, one year on and the
enhanced via the ground sharing £196m in season 2007/08’ fan interest dwindled with a 19% drop
agreement with Gretna. in average attendances.
13 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and LossAttendance level
The SPL attracted slightly lower crowds during the 2007/08 season with
average attendance figures down 3% from the prior season to 184,297. Two
thirds of the SPL teams experienced a decrease in attendance levels with
the largest absolute fall of 2,636 per match attributable to Hearts. Celtic and
Kilmarnock also noted falls in attendance numbers, down 1,251 and 1,375
respectively. Bucking this trend, Dundee United and Motherwell posted
improved numbers due to a top six finish for the former, while the tragic
death of Phil O’Donnell attracted greater numbers through the gates for the
latter. A more significant impact on the overall level, however, was Gretna
with its relatively poor supporter base as compared with the 6,000 average of
Dunfermline whom they replaced in the SPL.
Total stadium utilisation remained constant at 75% in the year, and similarly
33% of SPL stadia remained half as empty as the prior year. Note that
utilisation figures are based on average attendance as a proportion of stadium
capacity. Acknowledging the financial climate, Rangers froze the price of
season tickets for adults and concessions, whilst juvenile tickets were reduced
by one third leading to the sale of 2,500 more season tickets than the same
period the year before.
Average Attendance by Club
Average Average Utilisation Utilisation
Attendance Attendance 2007/08 2006/07
2008 2007 % %
Aberdeen 11,994 12,474 54 56
Celtic 56,676 57,927 94 96
Dundee United 8,291 7,146 58 50
Falkirk 5,568 5,386 80 78
Gretna 2,288 1,599 17 12
Heart of Midlothian 14,253 16,889 82 97
Hibernian 14,004 14,586 80 83
Inverness CT 4,753 4,814 63 64
Kilmarnock 6,181 7,556 34 42
Motherwell 6,599 5,876 48 43
Rangers 49,143 49,954 96 98
St Mirren 4,547 5,608 42 52
Totals 184,297 189,815 75 75
Source: Scotprem.com
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 14Wage Level
Wage to Turnover Ratio Analysis
Total Wages Total Turnover Wages/Turnover Ratio
2008 2007 Movement 2008 2007 Movement 2008 2007
£000 £000 % £000 £000 % % %
Aberdeen 5,931 5,155 15 12,869 7,519 71 46 69
Celtic 38,981 36,421 7 72,953 75,237 (3) 53 48
Dundee United 3,338 2,582 29 5,845 4,011 46 57 64
Falkirk 2,630 2,310 14 4,505 4,190 8 58 55
Gretna – – – – – – – –
Heart of Midlothian 11,319 12,488 (9) 9,161 10,319 (11) 124 121
Hibernian 4,591 4,063 13 8,053 9,847 (18) 57 41
Inverness Caledonian Thistle 1,484 1,349 10 2,377 2,877 (17) 62 47
Kilmarnock 3,764 3,899 (3) 8,664 8,061 7 43 48
Motherwell 3,412 2,371 44 4,653 3,681 26 73 64
Rangers 34,339 24,258 42 64,452 41,768 54 53 58
St Mirren 2,202 1,752 26 2,956 2,956 0 74 59
Total 111,991 96,648 16 196,488 170,466 15 57 57
Source: Statutory Accounts
Aberdeen Celtic Dundee United
The wage bill at Aberdeen increased Once again Celtic continued to carry With improved performances on the
significantly during the year by 15% the heaviest wage burden in the SPL. pitch, Dundee United’s year-on-year
to £5.9m (2007: £5.2m) and this At £39m the employee costs for 2008 wage costs soared by 29% (£0.8m)
followed a 20% rise from 2006. This were 14% higher than their Old Firm as Craig Levein brought in several
arose partly from an increase in the rivals, partly due to having greater new faces financed by the departure
base wage level but mainly as a numbers of players in the high earning of Barry Robson to Celtic, whilst the
consequence of the bonuses paid out bracket. This increase in wage costs, club’s Hampden appearance and top
to staff as a result of the European coupled with the fall in turnover, led six finish brought with it additional
run. However, despite the increase in to an increase in the wage to turnover bonus payments to the first team
gross wages, the wages to turnover ratio to 53%, which is still comfortably squad. This is in contrast to recent
ratio is now at a far more sustainable below the recommended sustainable seasons where the club’s stated
46% (2007:69%). This was assisted ratio of 60%. strategy has been to reduce the wage
by Aberdeen’s drive to keep the bill by disposing of the higher earning
playing squad at a static level to the players. However, on the back of the
prior season despite having to play improved top line financials, United
additional matches. has been able to operate at a more
sustainable wage to turnover ratio,
which has fallen from 64% to 57%.
15 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football..Profit and LossWage Level continued
Falkirk Hibernian
Falkirk’s seventh placed finish for A significant 13% increase (£0.5m)
the second successive year meant in staff costs was felt by the club.
wage costs remained fairly stable This, coupled with the fall in revenue,
as the club maintained its prior resulted in a sharp increase in the
season investment in the first team wage to turnover ratio to 57%. This
squad. Total wages rose 14% to is in stark contrast to the 2007 season
£2.6m (2007: £2.3m); however this when Hibs operated at the most
was offset by the improved turnover sustainable wage to turnover ratio in
leading to a healthy wage to turnover the SPL at 41%.
ratio of 58% (2007: 55%).
Inverness Caledonian Thistle
Gretna
As Inverness Caledonian Thistle
No information was available. produced abbreviated accounts in the
current year no information in regard
Heart of Midlothian to wage costs was available.
Although the Gorgie club managed to Kilmarnock
reduce its total wage bill by £1.2m in
the year to £9.1m, this was offset by Kilmarnock had a negligible 3%
a fall in turnover, leading to a wage reduction in wages to £3.8m (2007:
to turnover ratio in excess of 120% £3.9m), although there was an
for the second successive season. increase in the number of backroom
This represents a significant increase support staff. Total headcount at the
from the pre-Romanov era, when the club increased by six during the year
wage bill was c£4.5m, partly arising on the back of investment in sports
from Hearts having one of the largest science. However, the club’s poor
playing squads in the SPL. performance on the park resulted in
fewer bonuses payable, compared
with the prior year’s run to a domestic
cup final coupled with a top six
finish. The subsequent net effect
‘Wage costs spiralled means Kilmarnock achieves the top
during the year’ spot in terms of the wage to turnover
criterion at 43%.
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 16Motherwell St Mirren
Motherwell’s wage to turnover ratio Wage costs spiralled during the
was negatively impacted by its year and the reasons for this were
increase in wages failing to be offset threefold. Due to the success of
by a proportional increase in turnover. the previous season the club had
The current year ratio of 73% is up to compete with other clubs when
from 64% in the prior year. This is renegotiating the contracts of many
a departure from the recommended first team players on short-term
sustainable level of 60% that the deals. Add to this bonus payments
club was heading towards following for securing SPL survival and the
concerted efforts to reduce the wage increased playing squad for the club’s
bill in prior years. assault on a second SPL season, and
St Mirren’s wage to turnover ratio
Rangers soared by 15 percentage points to
74%. (2007: 59%).
There has been continual pressure on
the management team to reduce the
wage bill and run a more sustainable
business. However, net operating
expenses increased £13.7m due to
the 42% increase in wage costs,
together with costs associated with
European competition. Higher base
remuneration costs were incurred to
strengthen the squad, whilst bonus-
related payments were earned based
on both European and domestic
success. The ratio of total wages to ‘The subsequent net
turnover was 53% against 58% in effect means Kilmarnock
the prior season, which compares achieves the top spot
favourably with the average of in terms of the wage to
63% for the English Premiership turnover criterion at 43%’
2006/07 season.
17 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and LossPlayer Registration Fees The costs associated with the amortisation of player transfer fees have similarly risen 36% to £16.4m (2007: £11.5m), on the back of an overall increase in transfer market activity for the Old Firm. Celtic’s amortisation charge of £5.6m compares favourably with the prior season (£5.86m), reflecting the continued investment in the playing squad. This spend is mainly a result of the charge for players acquired during the year including, Scott McDonald, Andreas Hinkel and Barry Robson, offset by elimination of the charge in respect to players who left following the end of the 2006/07 season. Rangers’ amortisation on player registrations increased to £7m from £3.8m, with a total of £18m worth of additions made in the year in order to improve the composition of the playing squad. The gain on disposal of player registrations of £7.7m largely comprises the sale of Alan Hutton, which enhanced the profit before interest and tax to £8.3m, a dramatic turnaround of £13.3m from the previous season and the best performance for many years. After doubling their charge over the prior three years, Hearts’ charge for the year almost doubled again to £2.8m (2007: £1.9m), principally due to its persistent transfer market activity. The gain on sale of player transfers increased dramatically from £18.8m in the prior year to £28.8m, a rise of 53%. Notable gains were made by Celtic, Hearts and Rangers, these being £5.7m, £10.0m and £7.7m respectively. Celtic’s gain was derived from the sales of Kenny Miller, Craig Beattie and Jiri Jarosik. Hearts benefited from the record sale of Craig Gordon to Sunderland, whilst Rangers generated a similar gain from the sale of Alan Hutton to Spurs. This demonstrates the purchasing power of the entire English league, compared with the top SPL clubs, on the back of their lucrative TV contract – it is no longer only the elite clubs which can attract the very best of Scottish talent. PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 18
Profit/Loss Before Tax
The SPL (excluding Gretna) generated during the previous season. Moreover match day costs due to the necessity
an overall profit for the second the net gains made on the sale of to meet new regulatory demands.
season in a row of £23.4m (2007: players enabled the club to convert Going forward, the club’s reliance on
£2.6m). This is only the second time this into a secure bottom line profit sponsorship income from the building
that the member clubs have yielded before tax of £4.4m. Although down industry may significantly impact its
a combined ‘real’ profit since 1996. substantially from the previous results as these firms struggle in the
Only three SPL clubs adversely campaign, this profit is indicative of current economic climate, and they
impacted this profit during the year the club’s solid financial core and scale back their financial support for
by generating losses, thus displaying worldwide commercial appeal. the club.
a prudent approach during these
turbulent financial times. This is in Dundee United Gretna
stark contrast to the free-spending
days at the turn of the century, where Like their New Firm rivals, Dundee No information was available.
the combined SPL was producing United operated at a profit for the
total losses approaching £65m. first time in recent memory due to Heart of Midlothian
the club’s top six finish coupled
Aberdeen with its appearance in the Hampden Hearts reported positive progress,
showpiece League Cup Final. This taking strides towards its mid-to
Aberdeen managed to turn around profit of £0.5m was a £1m turnaround long-term strategy of returning to
the previous season’s loss of £0.4m from the previous year’s loss. profitability. Pre-tax losses reduced
to a respectable profit of £1.5m. This Furthermore, player sales, namely by 73% to £3.5m (2007: £12.5m)
operational improvement was brought Barry Robson’s move to Celtic, mainly arising from the sales of
about by its playing success on the contributed almost £0.9m to the Craig Gordon (£10m) and Roman
park both domestically and in Europe. bottom line. This was an encouraging Bednar (£2m) to Premiership sides
Following these impressive results, season for the club and highlights Sunderland and West Bromwich
the Managing Director Duncan Fraser the importance of a continued Albion respectively. Furthermore, a
authorised early repayment of its top six involvement, as turnover 10% reduction in employment costs
outstanding bank debt, which was and operating costs were directly and improved operational efficiencies
due to be repaid during the period influenced by the performance of the led to a further £2.5m saving on the
from July 2008 to March 2011. club in this competition. previous year. Going forward, it is
Following this, the net bank debt the directors’ intentions to redevelop
position at 30 July 2008 was £6.5m. Falkirk Tynecastle stadium and with this they
believe the company will return to
Celtic A fourth SPL campaign for Falkirk profitability and derive positive cash
saw the club slide into the red for the flows in the longer term.
For the fourth successive season, first time in three years. A loss of
Celtic continued to lead by example £107k was incurred during the year Hibernian
in the club’s ability to combine on- compared with a £150k profit from the
field success with stellar financial prior season. This was attributable The club traded at a bottom line profit
results. The Parkhead outfit once to increased costs from continued of £1.2m (2007: £7.4m), making it the
again generated an operating profit investment in the youth academy, fourth consecutive year of bottom line
and nearly managed to preserve its the running costs of the new pavilion profitable trading. However, unlike
record levels of turnover achieved at Stirling University and escalating each of the previous three years,
19 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and LossProfit/Loss Before Tax continued
the club traded at an operating loss. Motherwell
This was principally due to the club’s
disappointing sixth-placed finish, Motherwell remained in the black for
resulting in a fall in turnover and with the fifth consecutive year, generating
more than half of the SPL’s central an impressive £0.4m profit from a
revenues being distributed to clubs practically break-even position in
based on their final league position, the prior year. This increase in profit
the club’s income was affected was principally due to the net gain
accordingly. Once again the Easter on disposal of player registrations,
Road outfit was dependent on player which offset the costs of significant
sales to generate income to cover pitch repairs.
annual expenditure, with the sales
of Steven Whittaker to Rangers and Rangers
David Murphy to Birmingham yielding
a cumulative gain of £3.5m, which 2007/08 was the second year
kept the club in the black. incorporating the impact of Rangers’
licensing deal with JJB Sports and,
Inverness Caledonian Thistle following the emphatic season on
the pitch, Rangers may feel that the
In its fourth season in the SPL, reduced retail sales were a missed
Inverness Caledonian Thistle opportunity due to the fact that in the
witnessed a £700k drop in the bottom region of 150,000 fans descended on
line, generating a loss of £0.4m (2007: Manchester, whilst back in Glasgow
£0.3m profit). This followed reduced the retail outlets were unable to
participation in cup competitions, meet the demand for replica strips.
which consequently resulted in three Within the 2005/06 accounts,
fewer home games and reduced gate the retail outlets were disclosed
receipts from the prior season. The as a discontinued operation and
gain on the sale of the Romanian culminated in £5.2m operating profit,
international Marius Niculae (circa whereas this season the bottom
£100k) prevented the club from line with regards to the JJB royalty
incurring even higher losses. payments totalled £3.2m.
Kilmarnock Overall the £13.3m rise in pre-
tax profits to £7.2m reflects the
The Ayrshire club managed to remarkable year for the Ibrox club,
produce a third consecutive profit overturning a pre-tax loss of £5m
before tax of £1.6m (2007: £52k). on the previous 12 months. This
However this profit was a result of the improved profitability is attributable
sale of Steven Naismith to Rangers, in to the club’s participation in the
addition to a £0.5m profit generated Champions League group stages and
on the disposal of land. Stripping run to the UEFA Cup Final. These
out these non-recurring one-off results underpin the necessity for
gains, the club would have posted a Rangers to qualify for Europe every
significant loss. season to meet the overheads that
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and Loss. 20Net profit/(loss) before tax by club
2008 2007 Movement
£000 £000 %
Aberdeen 1,475 (433) (441)
Celtic 4,435 15,040 (71)
Dundee United 834 (989) (184)
Falkirk (107) 147 (173)
Gretna – – –
Heart of Midlothian (3,530) (12,933) (73)
Hibernian 1,185 7,418 (84)
Inverness Caledonian Thistle (432) 278 (255)
Kilmarnock 1,576 52 2931
Motherwell 384 7 5386
Rangers 6,567 (6,310) (204)
St Mirren 10,968 277 3860
Total 23,355 2,554 814
Source: Statutory Accounts
exist to run a club of this magnitude. St Mirren
Again this demonstrates the
significance of Champions League The gain on the sale of their Love
football to the Old Firm’s financial Street ground to Tesco (£9.2m)
health, and the adverse effect of lost resulted in St Mirren taking the mantle
merchandising revenue. as most profitable team in the SPL
(£11.0m) from a marginal break-even
position in the prior year. Another
remarkable statistic is that the bottom
line profit matches that of the Old
Firm combined, which is testament to
Stewart Gilmour’s extremely prudent
handling of the club’s affairs over the
course of his tenure. This impressive
stewardship bodes well for the long-
‘the bottom line profit term future of the club, particularly
matches that of the Old in light of the turbulent economic
Firm combined’ [St Mirren] conditions experienced by all member
clubs at present.
21 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Profit and LossBalance Sheet
Overview
The total net assets of the SPL clubs at the end of season 2007/08 were
£141.8m, up 34% from the prior year (2007: £106m). The current year increase
is positively skewed by exceptional transactions such as Hearts’ £12m debt for
equity swap and the £10m gain made by St Mirren on the sale of Love Street.
The SPL clubs’ combined balance sheet
Total Total Movement
2008 2007
£000 £000 %
Fixed Assets
Investments 2,868 2,868 0
Intangible assets 36,369 28,947 26
Tangible assets 264,118 265,622 (1)
Total Fixed Assets 303,355 297,945 2
Current Assets
Stocks 3,404 4,232 (20)
Debtors 41,777 23,674 76
Cash at bank and in hand 22,119 26,791 (17)
Total Current Assets 67,300 54,749 23
Creditors: due within one year (107,318) (117,758) (9)
Net current assets (40,018) (63,662) (37)
Total Assets Less Current Liabilities 263,337 234,283 12
Creditors: due > 1 year (121,499) (128,259) (5)
Net Assets/Liabilities 141,838 106,001 34
Capital and reserves
Called-up share capital 48,846 44,431 10
Share premium account 154,942 146,251 6
Rangers bond 7,736 7,736 0
Revaluation reserve 92,109 92,648 (1)
Capital redemption reserve 2,766 2,440 13
Other reserves 30,829 30,829 0
Profit and loss account (195,390) (218,218) (10)
Total 141,838 106,001 34
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance Sheet. 22Key balance sheet highlights:
• Intangible assets increased 25% to £36.4m in the year due to continued
investment by Rangers in its playing squad.
• Tangible fixed assets witnessed a negligible 1% decrease, with the most
significant transactions during the year being St Mirren’s sale of Love Street
partly offset by Hibs’ opening its new £6m training centre in East Lothian.
• Nine clubs in the SPL improved their net asset position in the year, with the
most notable increases at Hearts, Rangers and St Mirren as outlined above.
• Net debt reduced by 8% to £88m (2007: £95.7m). Hearts principally
contributed to this decrease in net debt following its £12m debt for equity
swap. Other notable reductions came from Aberdeen and Celtic, with the
latter continuing the trend spearheaded by Chief Executive Peter Lawwell
of gradually eating away at its net debt balance and heading towards a zero
debt position.
‘Nine clubs in the SPL improved their net asset position in the year’
Net assets/(liabilities) per club
2008 2007 Movement
£000 £000 £
Aberdeen 4,055 2,948 1,107
Celtic 41,241 36,729 4,512
Dundee United (3,036) (4,003) 967
Falkirk 3,375 3,480 (105)
Gretna – – –
Heart of Midlothian (15,385) (24,891) 9,506
Hibernian 14,677 12,375 2,302
Inverness CT 1,013 1,141 (128)
Kilmarnock 4,888 3,394 1,494
Motherwell 1,697 1,313 384
Rangers 79,208 71,902 7,306
St Mirren 10,105 1,613 8,492
Total 141,838 106,001 35,837
23 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance SheetNet Debt
Source of Borrowings 2008
Borrowings due < 1 year £000
Club External Connected
Aberdeen
Celtic (154)
Dundee United - (192)
Falkirk 0 -
Gretna
Heart of Midlothian (3,000) (9,915)
Hibernian (490)
Inverness Caledonian Thistle - -
Kilmarnock (78) -
Motherwell
Rangers (1,450)
St Mirren - (138)
Total (4,528) (10,889)
2008% 5 12
2007% 5 17
Source: Statutory Accounts
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance Sheet 24Borrowings due > 1 year £000
External Connected HP/Finance Leases Total Borrowing Overdraft/(Cash) balance Net Debt
(10,508) (2,300) (192) (13,000) 3,598 (9,402)
(15,027) (15,181) 8,475 (6,706)
(5,500) - (71) (5,763) (92) (5,855)
- - - - 572 572
- - -
(14,600) (27,515) (2,985) (30,500)
(6,260) - (32) (6,782) 3,931 (2,851)
- - - - 365 365
(8,085) - (55) (8,218) (3,206) (11,424)
(954) (5) (959) 528 (431)
(20,500) (4,199) (26,149) 4,590 (21,559)
- - (10) (148) (105) (253)
(80,480) (3,254) (4,564) (103,715) 15,671 (88,044)
91 4 5 - (18) 100
82 7 4 - (16) 100
25 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance SheetNet Debt continued
Analysis of combined SPL net debt
2008 2007
2008 2007 Movement % of % of
£000 £000 % total debt total debt
Cash at bank
22,119 26,791 (17)
and in hand
Bank overdraft (6,446) (7,117) (9)
Net cash/(overdraft) 15,673 19,674 (20) (18) (21)
Borrowings due
(15,417) (21,941) (30) 18 23
within one year
Borrowings due in
(83,734) (88,703) (6) 95 93
more than one year
Amounts owed
(4,564) (4,696) (3) 5 5
under hire purchase
Net debt (88,042) (95,666) (8) 100 100
Net Debt by Club
2008 2007
Net Debt Net Debt Movement Movement
£000 £000 £000 %
Aberdeen (9,402) (11,458) 2,056 (18)
Celtic (6,706) (9,165) 2,459 (27)
Dundee United (5,855) (7,283) 1,428 (20)
Falkirk 572 980 (408) (42)
Gretna - - - N/A
Heart of Midlothian (30,500) (36,268) 5,768 (16)
Hibernian (2,851) (2,876) 25 (1)
Inverness Caledonian Thistle 365 410 (45) (11)
Kilmarnock (11,424) (11,612) 188 (2)
Motherwell (431) (478) 47 (10)
Rangers (21,559) (16,542) (5,017) 30
St Mirren (253) (1,374) 1,121 (82)
Total (88,042) (95,666) 7,622 (8)
Average per Club (7,337) (7,972) 635 (8)
Average per Club (excl Old Firm) (5,978) (6,996) 1,018 (15)
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance Sheet 26The fall in net debt during season
2007/08 was a result of many of
the member clubs taking a more
prudent financial stance in light of the ‘Celtic’s continual
anticipated recession and adopting chipping away at its net
additional measures to ease the debt balance over the
financial credit pressures imposed past four years places
by lenders before the crunch was the club in an extremely
to really bite. Heart of Midlothian strong financial position to
continued to rely on the short- weather the unpredictable
term support of its ultimate parent financial storm’
company, UAB Ukio Banko Investicine
Grupe, to maintain its going concern
status, which was demonstrated Celtic
by the £12m debt for equity swap
agreed by both parties during the The Parkhead club realised a net
year, relieving Hearts of an estimated gain on player sales during the year,
£0.6m of annual interest costs going which had the positive impact of
forward. Celtic’s continual chipping reducing net debt to £6.7m (2007:
away at its net debt balance over the £9.8m). Furthermore, another
past four years places the club in an successful season on the pitch in
extremely strong financial position to terms of Champions League football
weather the unpredictable financial and revenue resulted in the club
storm that continues to blight the being able to repay a further portion
entire economy. of its debt. Overall the prudent
stewardship of Celtic plc translates
Aberdeen into a strong balance sheet capable
of weathering the effects of the
Aberdeen’s net debt decreased by global financial storm. The recently-
18% to £9.4m in the year (2007: published unaudited interim results
£11.5m). This debt is mainly funded (discussed later within the post
through the banking arrangements balance sheet section on page 44)
entered into during the prior year. further display the continuing trend of
Due to the club’s outstanding reducing the club’s reliance on debt.
financial performance during the year,
Managing Director Duncan Fraser Falkirk
authorised early repayment to the
Bank of Scotland of the debt servicing The Bairns are one of only two SPL
income due to it between now and clubs to have a positive cash position
March 2011. Following this the net with no debt. Funds deteriorated in
bank debt position at the year-end the year via increased costs; however
stood at £6.5m. A further reflection this had a marginal effect on net
of this incredible season saw the assets, which fell £0.1m in the year
balance sheet strengthen directly as a to £3.4m (2007: £3.5m) displaying
result of the improved cash balance at the financial stability received from
the bank (£3.6m, 2007: £1.4m). continual SPL involvement.
27 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance SheetNet Debt continued
Dundee United £30.5m (2007: £36.25m). However,
Heart’s net debt continues to remain
Net debt levels at Dundee United in excess of that of the Old Firm
reduced £1.4m to £5.9m (2007: combined (£28.3m). The club is
£7.3m) following the best set of still dependent upon the short-term
financial figures released by the financial support of its ultimate
club. This consequently enabled parent in order to meet its day to day
the outfit to reduce its overdraft funding requirements.
and long-term debt by £0.9m and
£0.5m respectively. The majority of Hibernian
debt (£5.5m), upon which the club
is dependent, is held with the Bank In contrast to its Edinburgh
of Scotland and is secured over neighbours, Hibs’ net debt stabilised
a floating charge of the assets of at £2.9m, with no movement from the
the club. prior year. This was primarily due to
the sales of Steven Whittaker (£2m)
Gretna and David Murphy (£1.5m) to Rangers
and Birmingham respectively.
No information regarding the The sole component of the club’s
balance sheet position of the club debt relates to the £6.5m stadium
for 2007/08 was available following mortgage following repayment of the
the club’s demise into liquidation. £1.4m connected parent company
However, it was revealed by the debt held at the start of the year.
club’s administrator that Gretna had
creditors of £4m and assets (Raydale Inverness Caledonian Thistle
Park) of less than £1m. HM Revenue
& Customs were owed nearly £600k As in prior years, the Highland club
in total and it was their threat to wind continues to operate with a net
up the company that precipitated cash position as it holds zero debt
the move into administration. As following repayment of its historic
no buyer could be found, the club £20k interest-free loan. This follows
could not be rescued as a going the extremely prudent approach
concern and was formally liquidated by Chairman George Fraser and
on 8 August 2008, with all remaining the Board.
employees being made redundant.
Kilmarnock
Heart of Midlothian
Kilmarnock’s net debt decreased by
The successful conclusion of a debt £0.2m to £11.4m in the year, primarily
capitalisation saw UAB Ukio Banko due to cash received in connection
Investicine Grupe swap £12m of with the sale of Steven Naismith,
debt for equity in the Gorgie club. which consequently enabled the club
This contributed to a reduction to repay £0.6m of external debt. The
in the club’s total debt figure to heavy burden of this debt led to an
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance Sheet 28Historic Debt vs Loss
£200,000k Total SPL Profits/(Losses) Net Debt
£150,000k
£100,000k
£50,000k
0
(£50,000k)
(£100,000k) 2000 2001 2002 2003 2004 2005 2006 2007 2008
annual servicing cost of £0.6m paid in seasons both on and off the pitch, in the playing squad, this will have
interest, being the highest such figure Rangers’ net debt increased back a detrimental impact on the club’s
outside the Old Firm and Hearts. to levels last witnessed during the finances going forward and will now
summer of 2005, up £5m on the make it more imperative than ever for
Motherwell prior season to £21.6m. This was the club to become self-sufficient.
principally due to investment in
Motherwell’s net debt fell back the playing squad, both in terms of St Mirren
to its 2006 level of £0.4m (2007: capital expenditure (£10.6m) and a
£0.5m). This was primarily due to rise of £10m in wage costs, whilst the The Paisley club’s balance sheet
the club achieving the coveted title transfer fee received in relation to the position has been significantly
of ‘Best of the Rest’ following its sale of Alan Hutton is spread over a bolstered by the sale of the club’s
third placed finish. As the club does 29 month period to June 2010 and is Love Street ground to Tesco during
not have an overdraft, the fall in therefore only partly reflected in this the year. This has resulted in no
debt is attributable to the improved year’s cash flow. requirement to draw down further
operating results. Furthermore, the bank borrowings during the period
club has also taken steps to reduce Gross borrowings have been reduced and left St Mirren in an enviable
the amount due to John Boyle at the by £1.5m to £26.1m (2007: £27.6m) financial position in comparison with
year-end to £0.95m (2007: £1.1m). with the composition being similar to many of the provincial SPL clubs.
the prior season, a £21m bank loan Net debt fell to £0.3m at the year end
Rangers (repayable in 21 years) and £4.2m (2007: £1.4m) which was attributable
of finance lease creditors. Rangers to the receipt of a government grant.
Following the £18m JJB Sports deal are relative newcomers to prudence; However, the sale of Love Street
up-front payment, Rangers’ net debt however, given the debts of the contributed to a monumental 526%
had reduced significantly, reaching club’s parent company, the lack of shift in net assets from the prior year
a low of £5.9m in 2006. However, European football in the 2008/09 to £10.1m (2007: £1.6m).
despite one of its most successful season and the increased investment
29 PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Balance SheetCash Flow
Overview
For the fourth successive year the windfall from participation in the
SPL generated a net cash inflow of Champions League group stages.
funds of £2.7m, down 85% from the This was a major blow on the back of
prior year, due to the prior year results such a successful season with the full
being somewhat skewed by the impact yet to be felt.
JJB financing provided to Rangers.
Financing levels decreased as several Hearts witnessed a negligible cash
clubs managed to reduce their debt outflow compared with an inflow of
burden during the year, following £2.9m in the prior year. However,
successful trading results. its reliance on the bankroll of UAB
Ukio Banko Investicine Grupe is
Cash generated from operating considerably reduced following debt
activities increased by 72% to capitalisation and the sale of Craig
£15.9m (2007: £9.2m). Gordon during the financial year.
These measures should be continued
Despite the successful season on going forward for the club to become
the pitch and record breaking season self sufficient.
with regards to both profitability and
turnover, Rangers suffered from a net
cash outflow, primarily as a result of
investment in the playing squad. This
resulted in a cash outflow of £6.4m
for the year and an increase in the
closing net debt of £21.6m. This was
in contrast to the prior year when the
club experienced a net cash inflow of
£4.3m following the realisation of the
upfront payment received from JJB
Sports. This is an area of concern
going forward for Rangers following ‘Cash generated from
its early exit in season 2008/09 at operating activities
the second qualifying round of the increased by 72% to
Champions League to FBK Kaunas £15.9m (2007: £9.2m)’
and the loss of an estimated £10m
PricewaterhouseCoopers’ 20th annual financial review of Scottish Premier League football. Cash Flow 30You can also read
