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SPL clubs shows healthy finances
Scotland - 20 August, 2007
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Half of the 12 Scottish Premier League (SPL) clubs were able to make a profit for the 2005-2006 season even though the aggregate was a GBP 9 million loss for all clubs.
The 18th annual Pricewaterhouse Coopers review of Scottish football finances showed Falkirk, Hibernian, Inverness, Kilmarnock, Motherwell and Rangers all made profits. All clubs, however, combined for the GBP 9 million loss.
While the news beat earlier reviews that showed all clubs were losing money, there still wasn't much in the way of optimism from Pricewaterhouse Coopers.
"While comfort can be taken from these results, the financial situation in Scottish football remains fragile and we are unlikely to see a return to the free spending days that marked the early part of this decade," David Glen a partner at PricewaterhouseCoopers told Soccerinvestor.
Other findings were that turnover collectively increased by 3 percent to GBP 172 million while the wage bill went up 1 percent. Net debt fell from GBP 23 million to GBP 94 million.
Rangers' run in the Champions League also had a strong revenue effect, but it was too early to gauge how much of a factor an impressive showing in European championships is for Scottish finances as a whole.
For Rangers, however, the impact was obvious.
"The financial situation in Scottish football remains fragile and we are not going to see a return to the free-spending days that marked the early part of the decade," Glen said. "Take Rangers as a case in point. In the 2005-2006 season, their turnover drove beyond the (GBP) 60 million mark, the business generated an operating profit of (GBP) 4.4 million and the net debt was reduced to under (GBP) 6 million – thanks to a successful run in the Champions League and the JJB licensing agreement.
"Move forward just 12 months to season 2006-2007, the financial results for which have just been published, and an operating loss of (GBP) 5.1 million arose whilst net debt increased to (GBP) 16.5 million.
"What a difference a season makes, and principally as a consequence of no Champions League participation. … the above situation demonstrates the direct impact that success, or lack of it, on the park can have on a club's financial situation."
The 18th annual Pricewaterhouse Coopers review of Scottish football finances showed Falkirk, Hibernian, Inverness, Kilmarnock, Motherwell and Rangers all made profits. All clubs, however, combined for the GBP 9 million loss.
While the news beat earlier reviews that showed all clubs were losing money, there still wasn't much in the way of optimism from Pricewaterhouse Coopers.
"While comfort can be taken from these results, the financial situation in Scottish football remains fragile and we are unlikely to see a return to the free spending days that marked the early part of this decade," David Glen a partner at PricewaterhouseCoopers told Soccerinvestor.
Other findings were that turnover collectively increased by 3 percent to GBP 172 million while the wage bill went up 1 percent. Net debt fell from GBP 23 million to GBP 94 million.
Rangers' run in the Champions League also had a strong revenue effect, but it was too early to gauge how much of a factor an impressive showing in European championships is for Scottish finances as a whole.
For Rangers, however, the impact was obvious.
"The financial situation in Scottish football remains fragile and we are not going to see a return to the free-spending days that marked the early part of the decade," Glen said. "Take Rangers as a case in point. In the 2005-2006 season, their turnover drove beyond the (GBP) 60 million mark, the business generated an operating profit of (GBP) 4.4 million and the net debt was reduced to under (GBP) 6 million – thanks to a successful run in the Champions League and the JJB licensing agreement.
"Move forward just 12 months to season 2006-2007, the financial results for which have just been published, and an operating loss of (GBP) 5.1 million arose whilst net debt increased to (GBP) 16.5 million.
"What a difference a season makes, and principally as a consequence of no Champions League participation. … the above situation demonstrates the direct impact that success, or lack of it, on the park can have on a club's financial situation."
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