Ann Budge has slashed the wage bill in half at Tynecastle whilst Dave Cormack says the Dons stand to lose £5 million in revenue. These are the effects of such a drastic Scottish football move.
Scottish football’s suspension is already having an economic impact and this is only the start.
Plenty in the same boat
Already you’ve had the social media snipers out and some pundits armed with knives, ready to sink the boot into our financially struggling clubs. What good is that going to do here?
Whilst Aberdeen and Hearts are the two high-profile cases in Scotland, they are far from the only ones making financial moves. If you want to stay in Scotland, some lower league clubs like Dumbarton and Montrose have implemented wage cuts.
Some chairmen have already said that whilst they’re ok for now, that could all change very quickly. Motherwell chief executive Alan Burrows for example said recently that whilst the Steelmen have cash in the bank, one or two small things going against them could change everything.
Scottish football is going to be hit square in the face with this nationwide. If you’re looking up the football food chain, why don’t we single out Barcelona, who are pondering the idea of financial cuts.
They’re arguably the biggest club in the world and yet they are clearly feeling the effects of shutdowns implemented globally due to the ongoing health pandemic. There’s only so long one business, whether that’s your football club or local gardening centre, can do without revenue streams.
Sooner or later the grass gets a little less greener and the weeds shoot up. A recent study said 43% of all income for top flight sides in Scotland comes directly from matchday revenue.
That’s huge and the added boost of selling players on for big fees might not even be there this summer as clubs far and wide try to weigh up their financial futures. In truth, the whole situation is a bit of a mess.
A new hope?
No, this isn’t some tacky Star Wars joke, but chancellor Rishi Sunak using his force to push through a bill on wages could prove significant for some Scottish clubs. His new move will allow businesses of any size to have 80% of workers on up to £2,500 per month’s wages paid by the government.
Whilst players won’t be covered by that at most clubs, it will help pay the office staff, cleaners, catering, media teams, you get the jist. It’s a potentially big boost at a time where every penny counts.
These are uncertain moments. Many could not have predicted the sheer chaos and despair this virus has caused and the economic impact is what may hit our football clubs hardest. Here’s hoping we get through this with all them in tact.
It’s a time for splitting party lines and banding together. We’re in a football community that loves to hate but there will be nothing to feed off should some go to the wall. It’s a reality not worth thinking about, although it may creep up on us.