Scottish clubs face survival battle, warns Dons chief

The Pittodrie chief believes that more clubs could follow Gretna by going out of business unless they can solve the problems of Scottish football individually and collectively.

Milne chose his club's agm this week to outline his concerns about the financial state of the game. He has recently had to lay off hundreds of Stewart Milne Group employees because the new housing market has ground to a halt, and he is under no illusions about the chill wind that will blow through the game until there is an economic upturn.

He said: "Football has come through some challenging times recently but I think the next few years are going to be even more challenging for football clubs in financial terms.

"There will be casualties because there is no doubt that in general football is still spending more than it is generating and that can't go on indefinitely."

Milne's message is in tune with that of his Rangers counterpart, Sir David Murray, whose club posted a record turnover for the previous financial year but overall debt increased. Sir David stated in September: "Existing levels of expenditure cannot be maintained in the current economic climate."

David Glen, a partner with accountants Pricewaterhouse Coopers, believes that the effects of the credit crunch have not been fully experienced in football yet, and will come into effect next season. However, he believes that Scottish clubs are in a better position to deal with the crisis than they were a few years ago, and predicts that the damage could be greater in England than in Scotland.

"Most of the Scottish clubs have had a fright in recent years and have brought their houses in order," said Glen. "To put it into context, I think the English Premier League is in a worse position. Their debt is approaching 2.5 billion, whereas the SPL debt is sitting at 100 million. So the English clubs are probably where SPL clubs were a few years ago when they thought the money wasn't going to dry up.

"We will get an early indicator of what's coming to football in the January transfer window. Not a great deal was spent in August, and I can see clubs trying to offload players first before they bring anyone else in."

FACT BOX

ABERDEEN

Turnover: 7.52m

Wages: 5.15m

Wages/Turnover Ratio: 69%

Debt: 11.46m

CELTIC

Turnover: 75.24m

Wages: 36.42m

Wages/Turnover Ratio: 48%

Debt: 9.16m

FALKIRK

Turnover: 3.98m

Wages: 2.31m

Wages/Turnover Ratio: 58%

Debt: None

DUNDEE UNITED

Turnover: 4.01m

Wages: 2.58m

Wages/Turnover Ratio: 64%

Debt:7.28m

DUNFERMLINE ATHLETIC

Turnover: 5.15m

Wages: 3.34m

Wages/Turnover Ratio: 65%

Debt:8.92m

HEARTS

Turnover: 10.32m

Wages: 12.49m

Wages/Turnover Ratio: 121%

Debt:37.57m

HIBERNIAN

Turnover: 9.85m

Wages: 4.06m

Wages/Turnover Ratio: 41%

Debt:2.88m

INVERNESS CT

Turnover: 2.88m

Wages: 1.35m

Wages/Turnover Ratio: 47%

Debt:20,000

KILMARNOCK

Turnover: 8.06m

Wages: 3.90m

Wages/Turnover Ratio: 48%

Debt:11.60m

MOTHERWELL

Turnover: 3.68m

Wages: 2.37m

Wages/Turnover Ratio: 64%

Debt:0.5m

RANGERS

Turnover: 41.77m

Wages: 24.26m

Wages/Turnover Ratio: 58%

Debt:16.54m

ST MIRREN

Turnover: 2.96m

Wages: 1.75m

Wages/Turnover Ratio: 59%

Debt:1.37m

Source: Price Waterhouse Coopers Annual Review 2008 (Figures from accounts for 2006-07 season)