High-flying Aberdeen have announced a record turnover of £23.6 million but recorded a loss of just under £900,000 because their big-money sale of Bojan Miovski falls into next year’s account.
The Dons confirmed their record turnover was up 49% from £15.8 million last year, thanks to European group stage and extended runs in both domestic cup competitions. The Pittodrie wage bill was also up £810,000 to £12,742 million but the increased turnover saw the turnover-to-wages ratio drop from 76% to 54%.
The club sold Ylber Ramadani, Lewis Pirie and got additional payments from Lewis Ferguson but also paid fees for the likes of Dimitar Mitov, Gavin Molloy and Peter Ambrose, while there were the managerial departures of Barry Robson and interim Neil Warnock.
Financially the Dons registered a loss of £880,000 although their club record sale of Miovski to Girona, which could eventually go in excess of £6 million, happened after the June 30th cut-off.
Aberdeen chairman Dave Cormack said: “These robust accounts, showing record turnover and positive EBITDA, underlines the strides the club is making, both on and off the pitch, towards achieving its strategic goals, most notably growth and football success through financial sustainability. While the increase in turnover is largely due to European group stage football, together with domestic cup runs, it has been bolstered by significant increases in retail and commercial income streams.
“A key criteria of a well-run, financially sustainable club is the wages to turnover ratio, and, during this period, we are sitting at a very healthy 54%. Our player trading model, where we need to carefully balance significant additional investment in football wages and transfer fees against income from player sales, continues to show positive momentum. But, due to the cyclical nature of player sales, the recent real gains will only be reflected in next year’s results.”
The club’s commercial and retail streams have gone by 13% to £7 million and increased capacities and an impressive start under Jimmy Thelin could also help raise the bar again. Cormack added: “The club has just sold out Pittodrie for four home games in a row – something never achieved before in our history.
“The catalyst for these sell-outs is a combination of the team playing well, delivering attacking and entertaining football, together with our long-term investment in fan engagement and fan experience. I’d like to pay tribute to our investors, directors and dedicated staff for all their hard work and efforts in contributing to our financial performance.”
Aberdeen also confirmed there were no developments on a new stadium and they would be remaining at Pittodrie for the short to medium term. Cormack added: “A combination of significant construction inflation through COVID and the depressed Aberdeen property market means we will need to be patient with these plans and it is unlikely the club will move from Pittodrie in the short to medium term.”
Shareholders will also be asked to back a move at next month’s Annual General Meeting so directors can buy new shares to put in the money to make planned improvements to their Cormack Park training ground. The club has previously done a paper into a possible added indoor facility.