Aberdeen chairman Dave Cormack insists he is prepared to cover the shortfall required to keep the Dons competitive.
Costs are rising on and off the pitch as the club looks to win a return to European football this season but the chairman insists he is committed to making the team a challenger in Scottish football.
The chairman has revealed a significant operational loss will be announced when the club’s annual accounts are announced next month but he has ensured the club remains debt-free.
He said: We’ll announce our results soon and you will see approximately a £4million operational loss for last season which doesn’t include player sales.
“We’re speculating to accumulate to be able to compete with the likes of Hearts and Hibs who have a bigger season ticket base than us and our wage bill has gone up by £2-3million in the last five years.
“We have to be competitive on the field and invest in the youth academy.”
European football vital for the Dons
The Dons’ eight-year diet of European football was broken this summer as they competed in the group stages of the Premier Sports Cup for the first time due to their 10th-place finish in the league last season.
Cormack has praised commercial director Rob Wicks and his team for mitigating the loss somewhat but remains steadfast in his commitment to backing the club financially.
He said: “We budget to be there (Europe) every year. The good news is we’re up about £1.5million in our off-the-field revenue with partnerships.
“Rob Wicks and the guys have done a brilliant job on that front which balances things for us.
“The player sales this summer help and I’m prepared to cash flow this change in model from spending what we bring in to needing to be competitive as the league is competitive.
“Hearts, Hibs and Dundee United have decent investment now coming through.
“I’m prepared to fund the club through any sort of dip but hopefully it’s not every year.”
Maximising player sales is key to club model
Selling players at a premium remains pivotal for the Dons’ business model.
Cormack points to the summer sales of Calvin Ramsay to Liverpool and Lewis Ferguson to Bologna as excellent business for the club.
He said: “We sell players but not to the detriment to the team’s ability to compete. We’re not in control of some of that.
“When Ryan Jack and Kenny McLean left we effectively got nothing for these guys as their contracts had run down.
“If players won’t sign a new deal then when they have two years left is the optimal time to sell. But players and agents are in control of that.
“We’re also able to offer players longer contracts which we couldn’t do before.”
Barron has received a good offer to stay
Connor Barron is the latest member of the club’s youth academy to attract interest.
The midfielder was reluctant to discuss his future when asked about contract negotiations last week but Cormack insists the player has received a good offer from the club.
The chairman said: “We’ve made significant offer to the player to stay with Aberdeen but we’re not in control of that situation. He and his agent are in control.
“But it is incumbent on us, and we’ve expanded our recruitment team, to expand our conveyor belt.
“I would argue it was the right time for Calvin Ramsay and Lewis Ferguson to move on and I would argue we have the right squad and age profile in place with the club’s model.
“It all comes down to whether Connor sees his future at Aberdeen beyond the two years he has left on his deal.”
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