Scottish Premier League profits GBP 2.8m

For the first time in more than a decade, Scottish Premier League (SPL) teams made a collective operating profit of GBP 2.8 million according to the 17th Annual Financial Review of Scottish Football published by PricewaterhouseCoopers LLP.

Combined debt fell to GBP 129 million from GBP184 million, thanks mainly to Rangers' GBP 52 million rights issue, and wage costs fell below GBP 100 million for the first time in five years.

Seven of the 12 clubs now have a wage to turnover ratio of less than 60 percent.

"Clubs are now feeling the effects of the financial recovery which began last year," David Glen, partner at PricewaterhouseCoopers, said. "But before we get too carried away it is important to understand that the results benefit from one-off credits which total GBP 22 million. These include a GBP 15 million accounting gain at Rangers, GBP 3.6 million from debt write-off at Dundee and a similar GBP 3.3 million debt write off at Dunfermline."

He went on to add that clubs have continued to reign in spending on wages (GBP 96 million total). They have also resisted the urge to spend major amounts in the transfer market.

"With debts gradually going in the right direction after a tumultuous few years it is now time for clubs to look forward to the next phase, to try to secure and increase revenues and attain a truly sustainable business model."

The review shows that Celtic (GBP 62 million revenue) and Rangers (GBP55 million revenue) continue to be the financial powerhouses in Scotland's top flight.

Meanwhile, clubs outside the Old Firm have seen revenues increase by an average of 18 percent.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.