Financial Armegeddon?
Posted: Sun Nov 22, 2020 12:52 pm
There is a view that the owners aren’t too concerned if we are relegated to the Championship, as it will be easier to bring our youth players through in that environment. Ronnie admitted as much at a fans forum when he said how difficult it was to develop young players in the Premiership. Despite repeated protestations from Ronnie, Les and Maitland that no, the Premiership is where they want to be its easy to buy into such a view particularly when you see what is unfolding on the pitch this season. .
However the evidence out there suggests that it makes no sense for the owners to accept relegation as it’s going contribute to a potential financial armegeddon. First off the obvious loss of match day revenue from the fans. I’m not talking about home fans, as the club seems to have discounted their financial input but the money that comes from the visits of the old firm and the likes of Hibs, Aberdeen and Motherwell. Not just gate receipts but hospitality etc. Then there’s the prize money. Even finishing 11th brings in a hell of a lot more than the Championship. Last season we got £1.18m while Ross County got £562,000 for winning the Championship. A mid table championship position gets you £225,000. Ok next season if relegated there would be a parachute payment and we would still get the UEFA payout for one season but unless we went straight back up they are gone after that one season. Then there is the revenue from advertising and sponsorship. With less exposure comes less revenue. Not allowing for the fact that our sponsors aren’t really serious financial players.
I know we have been relegated before and survived but then there is the latest and most significant nail in the financial coffin namely the rent from the North Stand that Accies get from South Lanarkshire Council. McGowan was throwing around a figure of a £300,000 loss of rental income after the Lanarkshire Joint Valuation Board said they were moving out at the end of their lease in May next year. I took that with a pinch of salt as I do with any of McGowan’s financial claims but started digging around annual reports and accounts and it turns out McGowan is right! Since 2001, South Lanarkshire Council has leased the entire North Stand from Accies. They then sub lease it to the Joint Valuation Board and to South Lanarkshire Leisure and Culture. The publicly available accounts for both bodies show the Valuation Board for year 17/18 paid the Council £318,000 annual rental. SLC Leisure and Culture for year 18/19 paid £138,000. Total £456,000. The Council will probably take a small percentage of that for an admin fee but Accies are receiving well over £400k a year in rental income and have been for nearly the last 20 years. That income has paid the mortgage on the stadium meaning income form other renters e.g. the gym, accountants and nursery pay for the upkeep of the stadium and provide a surplus.
So combine the loss of rental income and premiership status (never mind this seasons’ coved impact) and the only reason you would want to see the club relegated is if you have a potential death wish. Over to you Owners. Oh and don't kid yourself that Jamie Hamilton is going anytime soon for million.
However the evidence out there suggests that it makes no sense for the owners to accept relegation as it’s going contribute to a potential financial armegeddon. First off the obvious loss of match day revenue from the fans. I’m not talking about home fans, as the club seems to have discounted their financial input but the money that comes from the visits of the old firm and the likes of Hibs, Aberdeen and Motherwell. Not just gate receipts but hospitality etc. Then there’s the prize money. Even finishing 11th brings in a hell of a lot more than the Championship. Last season we got £1.18m while Ross County got £562,000 for winning the Championship. A mid table championship position gets you £225,000. Ok next season if relegated there would be a parachute payment and we would still get the UEFA payout for one season but unless we went straight back up they are gone after that one season. Then there is the revenue from advertising and sponsorship. With less exposure comes less revenue. Not allowing for the fact that our sponsors aren’t really serious financial players.
I know we have been relegated before and survived but then there is the latest and most significant nail in the financial coffin namely the rent from the North Stand that Accies get from South Lanarkshire Council. McGowan was throwing around a figure of a £300,000 loss of rental income after the Lanarkshire Joint Valuation Board said they were moving out at the end of their lease in May next year. I took that with a pinch of salt as I do with any of McGowan’s financial claims but started digging around annual reports and accounts and it turns out McGowan is right! Since 2001, South Lanarkshire Council has leased the entire North Stand from Accies. They then sub lease it to the Joint Valuation Board and to South Lanarkshire Leisure and Culture. The publicly available accounts for both bodies show the Valuation Board for year 17/18 paid the Council £318,000 annual rental. SLC Leisure and Culture for year 18/19 paid £138,000. Total £456,000. The Council will probably take a small percentage of that for an admin fee but Accies are receiving well over £400k a year in rental income and have been for nearly the last 20 years. That income has paid the mortgage on the stadium meaning income form other renters e.g. the gym, accountants and nursery pay for the upkeep of the stadium and provide a surplus.
So combine the loss of rental income and premiership status (never mind this seasons’ coved impact) and the only reason you would want to see the club relegated is if you have a potential death wish. Over to you Owners. Oh and don't kid yourself that Jamie Hamilton is going anytime soon for million.