Scottish clubs face survival battle, warns Dons chief
The Pittodrie chief believes that more clubs could follow Gretna by going out of business unless they can solve the problems of Scottish football individually and collectively.
Milne chose his club's agm this week to outline his concerns about the financial state of the game. He has recently had to lay off hundreds of Stewart Milne Group employees because the new housing market has ground to a halt, and he is under no illusions about the chill wind that will blow through the game until there is an economic upturn.
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Hide AdHe said: "Football has come through some challenging times recently but I think the next few years are going to be even more challenging for football clubs in financial terms.
"There will be casualties because there is no doubt that in general football is still spending more than it is generating and that can't go on indefinitely."
Milne's message is in tune with that of his Rangers counterpart, Sir David Murray, whose club posted a record turnover for the previous financial year but overall debt increased. Sir David stated in September: "Existing levels of expenditure cannot be maintained in the current economic climate."
David Glen, a partner with accountants Pricewaterhouse Coopers, believes that the effects of the credit crunch have not been fully experienced in football yet, and will come into effect next season. However, he believes that Scottish clubs are in a better position to deal with the crisis than they were a few years ago, and predicts that the damage could be greater in England than in Scotland.
"Most of the Scottish clubs have had a fright in recent years and have brought their houses in order," said Glen. "To put it into context, I think the English Premier League is in a worse position. Their debt is approaching 2.5 billion, whereas the SPL debt is sitting at 100 million. So the English clubs are probably where SPL clubs were a few years ago when they thought the money wasn't going to dry up.
"We will get an early indicator of what's coming to football in the January transfer window. Not a great deal was spent in August, and I can see clubs trying to offload players first before they bring anyone else in."
FACT BOX
ABERDEEN
Turnover: 7.52m
Wages: 5.15m
Wages/Turnover Ratio: 69%
Debt: 11.46m
CELTIC
Turnover: 75.24m
Wages: 36.42m
Wages/Turnover Ratio: 48%
Debt: 9.16m
FALKIRK
Turnover: 3.98m
Wages: 2.31m
Wages/Turnover Ratio: 58%
Debt: None
DUNDEE UNITED
Turnover: 4.01m
Wages: 2.58m
Wages/Turnover Ratio: 64%
Debt:7.28m
DUNFERMLINE ATHLETIC
Turnover: 5.15m
Wages: 3.34m
Wages/Turnover Ratio: 65%
Debt:8.92m
HEARTS
Turnover: 10.32m
Wages: 12.49m
Wages/Turnover Ratio: 121%
Debt:37.57m
HIBERNIAN
Turnover: 9.85m
Wages: 4.06m
Wages/Turnover Ratio: 41%
Debt:2.88m
INVERNESS CT
Turnover: 2.88m
Wages: 1.35m
Wages/Turnover Ratio: 47%
Debt:20,000
KILMARNOCK
Turnover: 8.06m
Wages: 3.90m
Wages/Turnover Ratio: 48%
Debt:11.60m
MOTHERWELL
Turnover: 3.68m
Wages: 2.37m
Wages/Turnover Ratio: 64%
Debt:0.5m
RANGERS
Turnover: 41.77m
Wages: 24.26m
Wages/Turnover Ratio: 58%
Debt:16.54m
ST MIRREN
Turnover: 2.96m
Wages: 1.75m
Wages/Turnover Ratio: 59%
Debt:1.37m
Source: Price Waterhouse Coopers Annual Review 2008 (Figures from accounts for 2006-07 season)