Aberdeen sees losses deepen as Covid hits revenue
Dave Cormack: avoided redundancies (pic: SNS Group)
Aberdeen saw its loss deepen to £5.19m last year as turnover was hit by the continued absence of spectators, sponsors and corporate entertaining at Pittodrie.
The Scottish Premiership club’s annual accounts to 30 June show a decrease in turnover from £14.33m to £11.07m and a £2.27m rise in losses.
Chairman Dave Cormack said: “We had optimistically assumed that we might get a return to some degree of normality from the start of 2021.
“But, other than one trial match, which 300 fans were allowed to attend, we had to wait until the start of the current season before fans were allowed back in a limited capacity.
“The exclusion of fans not only impacted on the atmosphere at matches but also decimated the club’s mainstream commercial revenues of match-day gate receipts, hospitality, advertising, sponsorship and retail sales.”
The club’s wage bill was slightly lower, falling from £9.77m to £9.36m but “due to the decrease in turnover, the wages‐to‐turnover ratio increased from 68% to 85%”.
Redundancies were avoided by a combination of player sales, business interruption insurance, fans buying more season tickets than anticipated, staff taking a temporary cut in pay, an injection of new cash from investors, as well as an interest‐free loan from the Scottish Government.
Mr Cormack added: “Supporters, sponsors, clients, staff, management and the board have all contributed to the club getting through the pandemic and navigating our way through a projected £10m shortfall.”
He said that despite “these unprecedented challenges”, Aberdeen remained committed to investing in its youth academy, training facilities and plans for a new stadium.