ABERDEEN chairman Dave Cormack has warned that the collapse in income caused by the coronavirus shutdown is unsustainable as the Pittodrie chief outlined the dire financial situation now facing our football clubs.
Cormack says that Aberdeen have expected outgoings of £5million over the minimum expected period that football will be suspended for, with no money at all coming into the club during that time.
With no indication yet of when professional football will be able to resume or whether the current Premiership season will be played to a conclusion, the lack of certainty over the immediate future of Scottish football is a major concern to Cormack.
“What we do know is that we are facing a collapse of income that is going to be almost impossible to sustain for a prolonged period,” he said in a club statement.
“Three weeks ago, we were in a healthy financial position; free of external debt, with £1.5million in the bank. We had expected income of about £1million from four home league games and the Scottish Cup Semi-Final and, potentially, £5million in season ticket sales, seasonal hospitality and new shirt sales coming in through mid-July. Our monthly running costs are about £1.2million and it’s only prudent to assume that, realistically, there will be no football until July perhaps, at the earliest.
“During this period, we are therefore facing £5million in outgoings with no expected income. No matches are planned, and we have no idea when a new season starts, never mind the current season ending, and it is highly unlikely there will be any player sales in the summer.
“This situation is clearly unsustainable. No club, whatever their size, scale or level of investment, can withstand a total lack of income over a period of anything between three to six months.”
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