Cormack backs player sales strategy as Dons post £1.1m net profit
Chief executive Dave Cormack insisted Aberdeen would continue striving to improve their player trading model after the Dons recorded a net profit of £1.1 million for the year ended June 30 2023.
The Pittodrie club have moved to a strategy where they invest significantly more in wages, operating costs and transfer fees than their operating income in an attempt to capitalise on player sales.
The Dons’ accounts for the 12 months from July 1 2022, reveal that turnover increased by almost £2m, up 14% from £13.86m in 2021-22 to £15.77m.
This has been attributed to an increase in gate, sponsorship, commercial and broadcasting income, due in part to the club finishing third in the Premiership and reaching the Viaplay Cup semi-final last term.
The combined impact of not competing in Europe last season allied to increased investment in the squad led to an operating loss of £6.27m, although this was offset by £7.45m of gains from player sales to deliver a net profit for the 2022-23 financial year of £1.1m.
Continued investment in the first team plus higher bonuses for finishing third and guaranteeing European groupstage football this term resulted in wages rising by £1.7m.
Cormack feels the Dons’ best hope of thriving in the longer term is to develop players and sell them on, as they have done with the likes of Scott McKenna, Ross McCrorie, Calvin Ramsay and Lewis Ferguson.
“To compete at the highest levels in Scottish football and to qualify for Europe each season, we continue to invest more in player wages and transfer fees,” he told the Aberdeen website.
“This has led to annual operating losses which, over time, have to be balanced by positive player trading and increased commercial and
football performance-related income.
“I’m pleased to report we are making progress on balancing the significant additional investment in football wages and transfer fees, which leads to these operating losses, against positive income as a result of successful player trading.
“The club’s board and investors are committed to this strategy which has required a significant expansion of recruitment resources to unearth and invest in emerging talent such as Bojan Miovski, Duk and Leighton Clarkson.”
Cormack feels Aberdeen, who will play in the Viaplay Cup final next month, are in good fettle.
“This steady, off-thepitch financial performance, combined with progress in our football performance – most notably playing in the group stages of European club competition for the first time in 15 seasons – and getting to our first cup final in five years, puts the club on a good footing,” he said.