Aberdeen announce more than £3m cash boost to aid £5m gap due to current climate
Aberdeen’s players, management and higher-paid non-football staff have agreed to a wage deferral to aid the club through the next four months.
Chairman Dave Cormack announced the moves and admitted that they are planning for football coming back in September.
The wage referral is expected to free up £1.1million, while more than half of the staff will not be affected.
A further £2million is coming in from investors with Aberdeen able to fill more than £3million of an expected £5million cash flow issue.
Cormack told the club’s official site: “The club has worked diligently to minimise the impact on its lower paid employees and we’re pleased to confirm that more than 50% of our hard working and loyal staff are unaffected by this deferral. The balance of employees have agreed to defer salaries by between 10% and 30%, plus certain bonuses including football performance.”
The chairman was full of praise for manager Derek McInnes’ role in dealing with the players as well as taking a wage deferral.
McInnes said: “It is incumbent on all of us to help the Club through this challenging period. I want to thank the players, my coaching staff and all staff at the Club for being so forthcoming and willing to do what is required to get the us through these exceptional circumstances and for supporting our fans and the wider community.”
Aberdeen have been boosted by strong season ticket sales for next season as they target to reach 10,000. At the moment they are further ahead than this time last season.
“I’m hugely encouraged on two counts,” Cormack said. “Firstly, by the response from our fans to our predicament when many are worried about their jobs and facing financial difficulties. Secondly, by the willingness of directors, management, players and staff across the Club to pull together to see us through this, including deferring salary and bonus payments.
“Our investor group, including myself, who invested an additional £5million last December, has committed £2million more to the cause. We now need to focus our efforts on selling season tickets and AberDNA memberships to meet the remaining shortfall in cashflow.
“Season tickets will generate about £2million in cash, with AberDNA delivering net income of £600,000 over the next 12 months. Those fans who are able to support this effort in the coming weeks will be playing a huge part in helping us through this very testing time.”