Tough times off the park for Saints
Chairman hits out at roadworks
St Johnstone chairman Steve Brown has announced £258,000 losses after missing out on a top six finish in the Scottish Premiership last season.
And in his annual report to shareholders the Perth chief yesterday revealed running costs had touched a record £65,000 a week.
Brown also took the opportunity to highlight a hefty £400,000 financial hit the club had taken because of major roadworks enveloping McDiarmid Park over recent years.
He admitted: “The A9/A85 link road has been a distraction and irritant to the board of directors since October 2013 and back then we certainly didn’t envisage that we would be looking at a scheduled completion date of January 2019.
“I said from the outset that this project would have a huge effect on the operation of the club and it has certainly had a highly detrimental effect on our commercial income, as well as creating significant disruption to both home and away supporters and the wider local community on match days.
“However, with the proposed completion date on the horizon we can look forward to better access and egress making traffic management smoother.”
On the football front, Saints are enjoying an unprecedented spell in Scotland’s top flight and despite missing out on the top six last season, Brown praised manager Tommy Wright and his players.
But he observed: “The football operation now runs at a cost in the region of £65,000 per week - the highest ever in the club’s history - with players in our first team squad on six-figure basic salaries.
“That level of investment can only be sustained through success on the pitch.
“In that respect, season 2017/2018 was extremely disappointing from a financial perspective.
“The board is not reluctant to invest in the playing squad but if we are going to spend at a high level then success is imperative and if we underperform then a net loss is inevitable.
“In terms of league performance, I would not be too critical of a team that finished in eighth place in an increasingly competitive environment.
“Indeed, it served to highlight the fantastic achievement of recent top six finishes by the management and players.
“However, the harsh reality is that the difference in fees received between sixth place and eighth place is the best part of £200,000 - a figure which would put a very different complexion on the financial outcome we are reporting.”
Brown has given the green light to a string of signings over the summer, including Tony Watt, Drey Wright, Matty Kennedy, Danny Swanson and
But Saints’failure to grab a top six spot had ramifications for the financial performance
Steve Brown described the A9/A85 link road works as “a distraction and irritant”
Ross Callachan.
He said: “We are continuing to be competitive in respect of player salaries and, as ever, we will strive to give the manager as much financial support as is available to us.”
The McDiarmid club has cash reserves in the region of £2 million but the chairman warned he is monitoring the financial impact of the Scottish Football Association’s “Project Brave” youth development initiative.
He said: “The requirements of Project Brave for club youth academies has seen a very steep increase in the financial commitment for clubs in terms of coaching, support staff and facilities and it is notable that two clubs have already felt it necessary to abandon their youth academies.
“I have no doubt that more will follow if essential change to the minimum criteria does not follow.
“At this stage, in the first year of the new set-up, we are still assessing and discovering the true overall financial implications for the club but you can be sure that only a fraction of the additional outlay will be met by an increase in Scottish FA funding.”
The A9/A85 link road has been a distraction and an irritant