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Aberdeen FC trying to mitigate against impact of “unsustainable” financial situation amid coronaviurs crisis

Monday March 23rd 2020 at 12:24 PM

Aberdeen FC Chairman Dave Cormack has promised fans they’re doing everything they can to mitigate against the “unsustainable” financial impact of Covid-19.

All football in Scotland is currently suspended after the UK and Scottish Government’s imposed a ban on gatherings of more than 500 people to stop the spread of coronavirus. 

A number of clubs across the country have warned that, without financial support, the lack of income could lead to job losses and even financial collapse.

And the Dons are now warning that, assuming football won’t resume before July, they face a £5 mil deficit. 

Bosses are now facing “tough decisions” and have promised to reveal a planned course of action in due course to secure the club’s future. 

Chairman, Dave Cormack, said: “It is hard to comprehend the extent of the unprecedented circumstances we are facing.

“In these worrying times, what happens in football needs to be put into context. However, we recognise that many, particularly those who depend on the Club for their livelihoods and our fans, are looking to us for some answers.

“Our priority has, and will continue to be, the health and well-being of all our employees, including football management and players, our fans and sponsors as well as our suppliers and contractors. We are acutely aware of the anxiety they will be feeling, which is exacerbated by everyone working from home.

“The over-riding aim of the Board is to provide clear and transparent leadership in this unparalleled period of uncertainty. But, as Scottish Clubs await the decisions on what happens next, there are so many moving parts, largely outwith our control, that it’s impossible to provide any degree of clarity or certainty at this time.

“What we do know is that we are facing a collapse of income that is going to be almost impossible to sustain for a prolonged period.

“Three weeks ago we were in a healthy financial position; free of external debt, with £1.5million in the bank. We had expected income of about £1million from four home league games and the Scottish Cup Semi-Final and, potentially, £5million in season ticket sales, seasonal hospitality and new shirt sales coming in through mid-July. Our monthly running costs are about £1.2million and it’s only prudent to assume that, realistically, there will be no football until July perhaps, at the earliest.

“During this period, we are therefore facing £5million in outgoings with no expected income. No matches are planned and we have no idea when a new season starts, never mind the current season ending, and it is highly unlikely there will be any player sales in the summer.

“This situation is clearly unsustainable. No club, whatever their size, scale or level of investment, can withstand a total lack of income over a period of anything between three to six months. 

“We are doing everything we can to mitigate this over the next few months and protect our hard-working, dedicated and loyal workforce and all those who depend on the Club.

“Once we have answers to these questions, the Board will recommend a course of action to ensure the Club’s future. This will include asking investors, including myself, to support the plan. We will be facing some tough decisions and we will need everyone to come together and play their part in efforts to make sure the Club get through this period.

“We will be issuing regular updates as the situation becomes clearer and the Club has explored all its options. In the meantime, the Club, along with the AFC Community Trust, remains committed to our #StillStandingFree campaign which is providing valuable, practical support to those in need among our fanbase and the wider community.”

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