'This situation is clearly unsustainable' - Aberdeen chief Dave Cormack voices concern at £5m outgoings and no income

The Dons are the latest Scottish club who have opened up about the financial difficulties of the coronavirus pandemic

Aberdeen chief Dave Cormack has voiced his concern at the predicament Aberdeen face in the coming months.

In a statement on the club’s website, the Dons chairman told fans the club’s situation is “clearly unsustainable” with outgoings of £5million in the next four months or so but with no income.

Hide Ad
Hide Ad

The club had been expecting to bring in around £6million in revenue, from four home league matches, the Scottish Cup final, as well as season ticket and shirt sales.

Dave Cormack has expressed his concern regarding Aberdeen's financial position in the current climate. Picture: SNSDave Cormack has expressed his concern regarding Aberdeen's financial position in the current climate. Picture: SNS
Dave Cormack has expressed his concern regarding Aberdeen's financial position in the current climate. Picture: SNS

Yet, the Dons become the latest club to express unease at the future, with rivals Hearts already asking players and staff to take a 50 percent reduction in salary or the option of termination.

Cormack noted that the club want to provide “clear and transparent leadership” and that the priority is health and well-being of employees, fans and stakeholders.

“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,” Cormack said in a 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.”

Cormack suggested tough decisions will likely have to be made to steer the club through the current climate.

Hide Ad
Hide Ad

He said: “We are doing everything we can to mitigate this over the next few months and protect our hardworking, dedicated and loyal workforce and all those who depend on the club.

“Once we have answers to these questions, the Board will recommend a course of action to ensure the club’s future. This will include asking investors, including myself, to support the plan. We will be facing some tough decisions and we will need everyone to come together and play their part in efforts to make sure the club get through this period.”

Related topics: