19th annual financial review of Scottish football

The 19th Annual Review of Scottish Football Finance demonstrated significant progress for Scottish clubs in 2006/2007. Many were plunged in financial despair only four years ago despite the hype surrounding Euro 2004, with over half technically insolvent and a total debt level of £186m. This was principally due to squad sizes, players’ wages, transfer fees and a mountain of debt.

David Glen, partner, said: “A year on and the picture continues to look bright for Scottish Football with many clubs now displaying shrewd business acumen and even restraint in the transfer market, with trading over this period recording a net gain of £19m.

"The clubs also demonstrated improved use of assets such as stadiums for corporate and hospitality events and strong strategies to tackle debt.”

Against expectation, the report records a rise in combined turnover from £170m to £175m (a three per cent increase year on year), and a dramatic turnaround from combined losses in 2005/2006 of nine million (£9.4) to collectively generated profits of three million.

The total wage bill, however, increased by seven per cent to £100m with the old firm teams of Rangers and Celtic accounting for over half of this.

David said: “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.”

Contact details
Email: David Glen
Tel: +44 (0)141 242 7255