Scottish clubs will be “pushed to the brink of insolvency” by the coronavirus crisis.
Ken Pattullo, of insolvency specialists Begbies Traynor, says the lack of income and no clear plan of when play can resume will count inexorably against Scottish sides.
He did add, however, that he thought most clubs would survive but insolvency would be increasingly likely. Some prize money has been doled out in the lower leagues by the ending of the season but the Scottish Premiership is in a state of stagnation, with the league hoping to complete the remaining games.
But with each passing week with no fixtures and income streams drying up, issues will start to mount for those in the Scottish game.
“There are real concerns that cash-strapped clubs may be pushed to the brink of insolvency,” said Pattullo. “Finances are already stretched and every match that isn’t played means income from matchday ticket sales and hospitality is lost. With several matches that were still left to play across all Scottish leagues, that represents hundreds of thousands of pounds of lost income, which clubs operating on small budgets can ill afford to lose.”
“Some clarity from the Scottish Government would be helpful now because, while in England the Premier League is in discussions about Project Restart, to resume playing televised matches behind closed doors, Scotland’s top-tier clubs seem to be nowhere near having a road map towards the resumption of any form of play, and meanwhile they remain in financially-corrosive limbo.
“Our Scottish Premiership clubs are the most reliant on ticket sales of all the top-flight European clubs, which also makes them extremely vulnerable to escalating financial problems, especially if it is decreed that the remainder of the season is to be played behind closed doors. It also means they lack the financial clout of the English Premier League and the cost to clubs of completing the outstanding games, when they have little or no income, could be devastating.”
As yet there have been no clubs that have reported any imminent financial trouble publicly, however several have warned of the cash shortages they face because of the shutdown.
Pattullo added: “It’s the mid-size clubs without wealthy backers or lucrative television or sponsorship deals that are in the most perilous position.
“Unfortunately, the double whammy of significant wage bills and sizeable fan bases that make them heavily reliant on match-day gate receipts could prove fatal in this unprecedented situation.
“While I don’t believe we are looking at a doomsday scenario and most Scottish clubs will survive, I’m afraid that some insolvencies are probably inevitable among the hardest hit clubs.”
