Three clubs in Scotland’s top three divisions are in critical financial distress according to the latest report into the financial health of Scotland’s football clubs.
But there was some good news with Aberdeen boosting their revenue thanks to an increase in their average attendance by 4,000 this season.
Begbies Traynor’s Red Flag Alert Football Distress Report provides six-monthly updates on Scottish football and the latest figures have revealed the outlook is grim for one in 10 of the clubs in Scotland’s top three leagues.
That is an improvement on the figure which stood at four clubs in the last survey in October 2013 but 16 of the 32 clubs included in the report are showing early but less serious signs of distress.
Clubs claim depleted attendance figures and subsequent ticket revenue have been key to the economic downturn.
Overall attendances across all four leagues were down 6%.
Ross County’s second season in the top flight resulted in their average attendance dropping 14.5% to 3,787, while Caley Thistle’s average of 3,558 was also down 11.9% on last year.
Aberdeen bucked the trend with their 12,918 average an impressive increase of 34.4% but Ken Pattullo, of Begbies Traynor in Scotland, knows the Dons are very much in the minority.
He said: “It’s good news that one of the top-level clubs, at least, has managed to clamber back from the financial precipice since the start of the season, and Hearts’ future also appears brighter, with the club recently sold out of administration in a supporter-based buyout backed by a local benefactor.
“However, it is worrying that three clubs are facing grave financial pressure and that the early symptoms of financial distress are affecting 50% of the clubs in Scotland’s top three divisions.
“The wettest winter in decades dampened supporters’ enthusiasm and declining attendance figures may prove to be the final nail in the coffin for some clubs already locked into a cycle of distress.”
With the money continuing to slowly drain out of the Scottish game as clubs struggle to attract major investment, Pattullo believes community and supporter -based ownership could provide the answer to many club’s woes.
“Annan Athletic, Ayr United and Motherwell are the latest clubs to take steps towards an ownership model based on the supporters who have tirelessly supported them through thick and thin and who offer a sounder prospect for building a secure future than the whim of the mythical wealthy benefactor.
“We can expect to see this movement towards an alternative business model gather momentum as the community interest company (CIC) proves its merit and offers a real prospect of salvation for financially weaker clubs.”