The authoritative Swiss Ramble takes a look at Aberdeen's financial results for 2018/19. Aberdeen’s loss widened from £0.4m to £5.0m, almost entirely due to the £4.3m impairment of Pittodrie stadium. However, revenue rose £0.5m (3%) to another club record of £15.9m, though profit on player sales was unchanged at £0.3m. The only club in Scotland to generate sizeable profits from this activity was Celtic £17.7m, followed by Rangers £3.1m.
Aberdeen’s revenue growth was driven by gate receipts, which increased £0.6m (13%) to £5.4m, due to the cup runs, and commercial income, up £0.5m (7%) to £7.4m, despite a reduction in sponsorship. Broadcasting fell £0.6m (17%) to £3.1m.
The good news is that Aberdeen’s £16m revenue is the third highest in Scotland, but the bad news is that they are miles behind the big two Glasgow clubs. They are around a fifth of Celtic’s £83m and less than a third of Rangers’ £53m. The revenue gap between Aberdeen and Rangers has been increasing, as their rivals progressed up the Scottish leagues. Compared to Celtic, the difference is around the same as it was in 2013, but that is a hefty £67m.
Aberdeen have announced significant further investment of £5m from Dave Cormack, Tom Crotty, Roger Lee plus new investor, AMB Sports & Entertainment (who own MLS club Atlanta United).
Aberdeen’s reported loss of £5m is the second worst in the SPFL Premiership, though less than half of Rangers’ £11.4m. If the £4.3m stadium impairment were excluded, the loss would be cut to £0.7m. Highest profits reported by Celtic £11.3m and Hearts £2.9m.
Aberdeen have only managed to post an overall profit once in the last decade - £7.2m in 2015, which was largely due to a £6.6m debt write-off. In fairness, most of the losses in this period have been relatively small, so the total deficit over the decade is only £8.7m.
As noted by long-standing chairman, Stewart Milne, Aberdeen 'have more than doubled revenue from around £7.8m in 2013 to almost £16m today.' The £8.1m growth has been spread around the three revenue streams: gate receipts £3.2m, commercial £3.1m and broadcasting £1.7m.
SPFL chief executive Neil Doncaster described the latest domestic TV deal as “the highest prize fund in the history of the Scottish game”, but Aberdeen’s 4th place in the SFPL Premiership was only worth £1.8m. League winners Celtic received £3.4m. For some perspective, English Championship clubs receive more than twice as much (£7m), while those with parachute payments get £45m in the first year after relegation.
Aberdeen’s average attendance of 14,872 is around 43,000 lower than Celtic and 35,000 less than Rangers. Also below the Edinburgh clubs: Hearts 17,553 and Hibernian 17,474.
Aberdeen have been looking for a new stadium since 2009, but now have the site at Kingsford, where the training facility was opened last month. Milne admits that it will be a challenge to secure £45m funding required for the stadium, though some would come from sale of Pittodrie.
Aberdeen’s wage bill increased £0.7m (8%) to £9.2m, due to continued investment in the playing squad. Wages to turnover ratio worsened from 56% to 58%, though 'still within accepted industry norms and compares favourably to other clubs.' Milne has pointed out the difficulties of maintaining a competitive squad, particularly with rising wages in the English market, as evidenced by Adam Rooney’s move to 5th tier Salford City for a higher salary. Aberdeen’s £9m wage bill is lower than all English Championship clubs.
The Swiss Ramble concludes, 'These are interesting times at Aberdeen. As new chairman Dave Cormack said, “The new investment and this partnership with Atlanta will allow us to punch above our weight, trying to level the playing field against significantly higher income generated by Celtic and Rangers.”'
Comments
Post a Comment