Spl Clubs’ Finances On The Rise
The latest review of Scottish football finances has revealed a commercial upturn for the majority of Scottish Premier League clubs.
The report by PricewaterhouseCoopers focuses on season 2006/2007 when eight out of the 12 clubs made a profit.
The healthier finances are being put down to an overall reduction in transfer fees and wages.
Overall, turnover increased by 3% and the clubs collectively generated profits of £3m – a dramatic turnaround from the previous season’s combined losses of £9.4m.
Net gain on transfers increased by £4m to almost £19m but wages also rose, with the Celtic and Rangers accounting for over half of the £100m total.
Celtic turned the most impressive profit, the sales of Stilian Petrov and Shaun Maloney and qualification to the last 16 of the Champions League contributing towards a surplus of more than £15m.
Seven of the clubs reduced their debts with Falkirk and Inverness operating with no debt.
‘The picture continues to look bright for Scottish football with many clubs now displaying shrewd business acumen,’ said PWC partner David Glen.
‘The clubs demonstrated improved use of assets such as stadiums for corporate and hospitality events and strong strategies to tackle debt.
‘While it is too early to predict the real impact of the credit crunch on Scottish football, this sounder financial footing, with reduced debt and more affordable wage structures, should help the majority of clubs to weather any financial storms as a result of a down-turn.
‘Potentially one of the biggest impacts in 2008/09 will not be a decline in ordinary supporters buying tickets – many are expected to continue juggling finances to ensure they don’t miss any matches – but in the corporate sector where sponsorship and support is discretionary and may be cut back if budgets have to be prioritised or shareholders pile on pressure.
‘This year’s mantra is really ‘steady as she goes,’ with clubs finally consolidating their position, ensuring they are strong enough to enough to weather the economic turbulence felt in the UK and further afield, and developing strategies for growth in what is a tough marketplace.’
