Aberdeen FC chairman Dave Cormack has issued a stark warning about the club’s financial situation, as the Covid pandemic and a disappointing season have taken a toll on the club’s income and expenses.
Covid Impact on Aberdeen FC
The Covid pandemic has had a profound impact on Aberdeen FC, as the club has lost millions of pounds in revenue from matchday income, hospitality, sponsorship and merchandising. The club has also faced increased costs due to Covid testing, travel and accommodation arrangements, and player welfare.
According to the club’s annual accounts for the year ended 30 June 2023, the club’s turnover decreased by almost £2m, down 14% from £15.77m in 22/23 to £13.86m in 23/24. This has resulted in an operating loss of £6.27m, compared to £5.29m in the previous financial year.
Cormack said that the club has been relying on the support of its investors, fans and staff to survive the crisis, but warned that the situation is unsustainable in the long term. He said: “We are extremely grateful to our investors, who have provided £12.5m of funding over the last three years, and to our fans and staff, who have shown incredible loyalty and commitment throughout this challenging period. However, we cannot continue to rely on this level of support indefinitely. We need to find new ways of generating income and reducing costs, while maintaining our competitiveness on the pitch.”
Poor Performance on the Pitch
The club’s financial woes have been compounded by a poor performance on the pitch, as the club finished tenth in the Scottish Premiership in the 23/24 season, missing out on European qualification for the first time in nine years. The club also failed to reach the final of any domestic cup competition, losing to Celtic in the semi-final of the Scottish League Cup and to Dundee United in the quarter-final of the Scottish Cup.
Cormack admitted that the club’s performance was unacceptable and that a major overhaul of the playing squad was needed. He said: “We are all bitterly disappointed with how the season ended. We had high expectations and ambitions, but we fell well short of them. We have to accept responsibility for our failures and learn from our mistakes. We have to rebuild our squad and our confidence, and regain the trust and respect of our fans and the wider football community.”
The club parted ways with manager Stephen Glass and his coaching staff in May 2024, after less than a year in charge. Glass had replaced Derek McInnes in March 2023, but failed to improve the club’s fortunes, winning only 11 of his 38 games in charge. The club appointed Jim Goodwin as the new manager in June 2024, hoping that the former St Mirren boss can revive the club’s fortunes.
Player Trading Strategy
The club’s chairman also revealed that the club has adopted a player trading strategy, where it invests more in wages, operating costs and transfer fees than its operating income, and balances the books by selling players at a profit. The club has spent almost £4m in transfer fees in the last two seasons, acquiring young and emerging talent such as Bojan Miovski, Duk, Leighton Clarkson, Vicente Besuijen, Ylber Ramadani and others.
The club has also sold some of its key players, such as Lewis Ferguson, Ross McCrorie, Scott McKenna and Calvin Ramsey, for a combined fee of over £15m in the same period. Cormack said that the club’s strategy is to develop and sell players at the right time and conditions, and to reinvest the proceeds in the squad and the club’s infrastructure. He said: “We have a clear vision and a long-term plan for the club. We want to be one of the best developers of young talent in Scotland, and to provide a platform and an environment where players can flourish and progress. We also want to be competitive and successful on the pitch, and to qualify for Europe every season. We believe that our player trading strategy is the best way to achieve these goals, while also ensuring the financial stability and sustainability of the club.”
Future Plans
The club’s chairman also outlined the club’s future plans, which include improving the fan engagement, increasing the commercial and broadcasting income, being at the heart of the community, and developing a new stadium. He said: “We have a lot of work to do, but we also have a lot of opportunities and potential. We have a loyal and passionate fan base, a dedicated and professional staff, a talented and ambitious manager, and a supportive and visionary board. We have a state-of-the-art training facility at Cormack Park, which has enhanced our youth academy and our recruitment capabilities. We have a strong and positive relationship with the city council and the local community, who share our vision for a new stadium at Kingsford. We have a clear and coherent strategy, which we are confident will deliver results in the short and long term. We are optimistic and excited about the future of Aberdeen FC, and we hope that our fans and stakeholders will join us on this journey.”
