£20k loss ‘decent result’ for Saints
Full impact of COVID yet to be felt says chairman
St Johnstone chief Steve Brown has warned the full financial impact of the pandemic on Scottish football has still to be felt.
Reporting a £20,000 loss for the year through to May 2020, the Perth chairman admitted he is braced for a serious hit this season, with no sign of fans being allowed back into stadiums.
Top flight rivals Kilmarnock have already indicated they are seeking a £1 million loan from the Scottish Government’s emergency sports fund to pay the bills.
But after building-up a healthy £2.8m “rainy day fund”, Saints are better placed than most to ride out the storm.
“The cash at the bank shows a healthy figure. However, there are deferred liabilities which will reduce that figure significantly,” cautioned Brown in his annual report to shareholders.
“The full effect of the decimation of the income will be shown in the coming financial year and potentially beyond.
“The accounts show a loss of approximately £20,000 which, whilst disappointing, can be seen as a decent result given the fact that there was little or no income during the last fifth of the year.
“The board required to make numerous difficult decisions during the height of the pandemic.”
Brown paid tribute to directors and predecessor, father Geoff, for buildingup a cash pot.
“Without the reserves which have been prudently built up over a number of years, the club would almost certainly have been in dire financial straits moving into the next financial year.
“This policy has sometimes proved unpopular with a small section of our fan base, but the club remains free of borrowing and debt.”
Brown warned the lack of income could not go on indefinitely.
But he acknowledged the country remained in the grip of a “devastating” pandemic.
“It remains essential that there is a return of fans to football and a return to normality,” he stressed.
“But we must be mindful that we are in the clutches of a pandemic.
“We all know through recent experiences that there has been, and continues to be, numerous personal challenges and sacrifices.
“As a board we are fully aware that football is an important part of the national psyche and particularly for our loyal supporters.
“But health is the most important wealth, and it must always come first.”
Despite initially taking advantage of the government furlough scheme, and enjoying offers of support from fans, Brown admitted Saints were reluctantly forced into redundancies in the wake of the March lockdown.
“With little or no income from either football or commercial activities, hard decisions were required and regrettably a number of redundancies were made, which included several long serving and loyal employees,” he said.
Brown paid warm tribute to Scottish Cup winning manager and departed “club legend” Tommy Wright, and appearance record holder Steven Anderson.
He welcomed another top six finish when the season was called but acknowledged the summer of turmoil after Celtic were confirmed champions and Hearts were relegated.
“Although we have been great advocates for league reconstruction, the club did not believe that there was sufficient time to properly introduce a sufficient alternative and we were also mindful that the broadcasting deals be preserved, as this appeared to be both the club’s and Scottish football’s main source of income for the foreseeable future.
“The decision by the SPFL, and the circumstances surrounding it, caused a huge amount of controversy which was perpetuated by way of court and arbitration proceedings.
“The SPFL was in a state of disarray, being roundly criticised in the press and elsewhere for its lack of leadership and handling of the COVID crisis.”
Health is the most important wealth, and it must always come first