19th annual financial review of Scottish football

Transcription

19th annual financial
review of Scottish football
Season 2006/07
PricewaterhouseCoopers
2
Contents
Introduction 4
Profit and loss 6
Balance sheet 20
Cash flow 28
Club five year review 34
Post balance sheet events 48
Appendix one: The season that was 2006/07 52
Appendix two: What the chairmen thought 56
Appendix three: Significant transfer activity 58
Appendix four: The national team 60
3
19th
Football Review.
An introduction by
David Glen
David Glen
Welcome to the 19th annual financial review of the Scottish
football premier league, covering the season 2006/07.
Steady as she goes
For the majority of the SPL clubs, financially season 2006/07
has been a stable one. For the first time in over 10 years the
clubs have collectively generated a profit of £3m, a figure
that was particularly assisted by some very successful
trading in the transfer market with a record net gain of £19m
being recorded. Celtic and Hibs led the way, recording
gains of £9.4m and £6.4m respectively from the sales of the
likes of Stilian Petrov, Shaun Maloney, Kevin Thomson and
Scott Brown.
The most profitable club was Celtic, who recorded a surplus
of over £15m, boosted by the financial rewards of a very
successful run to the last 16 in the Champions league.
At the other end of the scale, Hearts posted the largest loss
of just under £13m. A wage bill of almost £12.5m, with an
income of only £10.3m is clearly not sustainable and will
require some trimming going forward.
Overall, 8 of the 12 clubs recorded a profit, which is a far cry
from the depths of financial despair we were confronted with
just 4 years ago.
4
The combined net debt has risen by £10m to £105m, with
both Rangers and Hearts posting increases of c£10m. In
Heart’s case this pushed their debt to over £37m which
is now greater than Celtic (£9m) and Rangers (£16m)
combined. Since these results were published steps have
been taken by Hearts to reduce this debt by converting
£12m into shares in the club.
In total seven of the clubs posted a decrease in their
debt and of them, two (Falkirk and Inverness Caledonian
Thistle) operate with no net debt.
Other highlights include :
• Combined turnover (gross income) increased from
£170m to £175m. A modest 3%, representing no more
than an inflationary increase. Of this Celtic accounted
for a record £75m and Rangers £42m.
• The combined wage bill increased by 7% from £93m
to £100m with the Old Firm again dominating (Celtic
£36m and Rangers £24m)
Is there another Gretna out there?
Gretna were promoted to the SPL in season 2007/08
and therefore do not feature in the analysis of this review.
However, such a significant event as the complete
financial annihilation of a club cannot be ignored.
On a number of occasions I have been asked if there is
another Gretna waiting to happen?
Gretna were not the first, and will not be the last, club
to be financially supported by a significant benefactor
however, in comparison to most other clubs, Gretna had
virtually nothing to fall back on when their financial lifeline
was cut‑off; there was no significant value in its stadium and
there was no significant fan base from which to generate
a significant income stream. Therefore the circumstances
were fairly unique and I do not believe other clubs would be
so readily faced with oblivion, but the situation nevertheless
demonstrates the fragile nature of football finance.
Will the credit crunch?
At the time of writing, the other interesting aspect that
surrounds is the so‑called ‘credit crunch’ that is currently
impacting the UK economy and the question is to what
extent might this impact the SPL clubs?
Certainly, having got themselves onto a sounder financial
footing with reduced debt and more affordable wage
structures, the majority of the clubs are perhaps better
equipped to deal with a down‑turn. It is too early to predict
the extent to which the clubs might be affected as we do
not yet know how deep this crunch might be, however,
for the corporate and individual supporters of clubs,
their expenditure on football can clearly be defined as
discretionary. There are some early signs that cut backs
on such expenditure are being made, with household
and commercial budgets having to be prioritised – how
extensive these cuts will be and how deeply they will affect
football, at this stage, we can only wait and see.
Thanks
Thanks once again to my Sports Unit for helping me compile
this report, in particular David Auld, Stuart MacDougall and
Rory Forrest.
David Glen
August 2008
5
Profit and loss.
Overview
The 2006–07 season was the 110th season of competitive football in Scotland
and was financially one of the most successful seasons in over a decade with
the SPL yielding a ‘real’ cumulative profit for the first time in 11 years of £2.8m.
This was primarily a result of Celtic posting a profit after tax of £15m, while at the
other end of the scale, Hearts produced the highest loss in the year of £12.9m.
Overall, these results are a significant improvement from the prior year’s loss
of £9.4m.
10,000
Historic Profit/(Loss) Analysis £000’s
0
(10,000)
(20,000)
(30,000)
(40,000)
(50,000)
Old Firm profits/(losses)
Other profits/(losses)
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
(70,000)
1996
(60,000)
Total SPL profits/(losses)
The financial results of the SPL clubs have been obtained from their Statutory
Accounts for the year ended 2007.
6
The SPL Clubs’ Combined Profit and Loss Account
2007
£’mill
175
(100)
(72)
2006
£’mill
170
(93)
(76)
Movement
%
3%
7%
‑5%
Operating loss before player registrations
Amortisation of player registrations
Impairment on player registrations
Net gain/(loss) on player registrations
4
(10)
(2)
19
2
(8)
(0)
4
138%
22%
490%
395%
Operating loss
Gain/(loss) on tangible fixed assets
Exceptional debt write‑offs
Net interest cost
10
(0)
0
(7)
(4)
(0)
2
(7)
‑343%
89%
‑79%
‑1%
(Loss)/Profit before and after tax
Taxation
Loss after tax
3
0
3
(9)
(0)
(9)
‑131%
‑600%
‑131%
Turnover
Wages
Other operating expenses
Source: Statutory Accounts
‘one of the most
successful seasons
in over a decade
with the SPL yielding
a ‘real’ cumulative
profit for the first
time in 11 years’
The key financial highlights of season 2006/07 are as follows:
• Turnover increased by 3% to £175m (2006: £170m). The Old Firm had mixed results with Celtic’s turnover increasing by
31% to a record breaking £75m. Rangers on the other hand saw total revenue fall by 32%, although this is principally
a result of this season being the first to incorporate their licensing deal with JJB. As part of this deal, the club no
longer operates retail stores, hence losing a significant amount of merchandising revenue. In order to gauge a true
comparative, like for like turnover only fell by £1.7m from £43.5m in the previous year. Further success was noted at
Dunfermline and St Mirren with exceptional increases of 77% and 74% respectively, buoyed by a Scottish Cup Final
appearance for the former and a return to top flight football for the latter club.
• Total wages increased by 7% to £100m (2006: £93m). This figure is skewed by an exceptional increase in Dunfermline’s
wage bill of 95%, as the club attempted to stave off the threat of relegation by bringing in a number of loan players.
• Amortisation cost of player registrations increased by £2m to £10m, with £9.6m of this cost assigned to the Old Firm
(2006: £6.9m).
• Almost 50% of the gain on sale of player registrations related to the departure of Stilian Petrov, Shaun Maloney, Stephen
Pearson, Stanislav Varga, and Ross Wallace from Celtic realising a total gain of £9.4m. In addition, Hibernian made an
impressive gain of £6.4m due to the big money sales of Scott Brown to Celtic and Kevin Thomson to Rangers.
• Total net interest costs remained stable at £7m (2006: £7m).
7
Profit and loss.
Turnover
The total turnover of the SPL increased by 3.1% to £175.4m in season 2006/07
(2006: £170.2m). Ten out of the twelve member clubs managed to increase
their turnover as a result of improved European and domestic performances.
Furthermore, an additional 28,000 spectators attended games throughout the
course of the season, positively impacting upon turnover.
Turnover By Club
Aberdeen
Celtic
Falkirk
Dundee United
Dunfermline Athletic
Heart of Midlothian
Hibernian
Inverness CT
Kilmarnock
St Mirren
Motherwell
Rangers
Total
Average
Average exl/Old Firm
2007
£’000
7,519
75,237
3,997
4,011
5,149
10,319
9,847
2,877
8,061
2,956
3,681
41,768
175,422
14,618
5,842
2006
£’000
6,772
57,411
3,303
4,151
2,905
10,277
8,706
2,742
7,395
1,702
3,622
61,165
170,151
14,179
5,158
2007
Increase
11%
31%
21%
‑3%
77%
0%
13%
5%
9%
74%
2%
‑32%
3.1%
17%
18%
2006
Increase
‑6%
‑8%
64%
‑23%
‑12%
22%
20%
0%
20%
‑12%
‑10%
11%
2.5%
6%
1%
8
Aberdeen
An improved end league position,
beating Rangers 2‑0 on the last day
of the season in front of a capacity
crowd at Pittodrie to snatch third
spot, impacted their turnover directly
with an 11% increase to £7.5m (2006:
£6.8m). This was largely due to a
combination of broadcasting income
being up because of the new Setanta
contract; the improved SPL position
and corporate sales income increasing
by 9%. These increases offset the
slight fall in average gate receipts
experienced during the year to 12,404
(2006: 12,728).
Celtic
After consecutive falls in turnover
from the previous two seasons, an
extremely successful season both
on and off the pitch resulted in a
31% increase (£17m) in turnover to
a record breaking £75.2m, a first for
any Scottish club. On the field Celtic
completed a domestic double, winning
the SPL by 12 points and the Tennents
Scottish Cup for the 34th time after
defeating Dunfermline 1‑0. On the
European front they progressed to
the last 16 of the UEFA Champion’s
League for the first time in the Club’s
history. This followed a successful
pre‑season with trips to Japan, Poland
and North America enabling the club to
spread the Celtic brand.
Falkirk
Falkirk consolidated their second
season in the SPL with a respectable
7th place finish (2006: 10th). This was
reflected in their enhanced turnover, up
21% to almost £4m. About half of this
was attributed to increased income
from their SPL finish and the remainder
from improved gate receipts and other
commercial activities.
‘an additional 28,000
spectators attended
games throughout
the course of
the season’
Dundee United
A marginal 3% decrease in revenues
was characterised by their stagnant
9th placed league finish and early cup
exits. Match day revenues fell as a
result of average attendances dropping
by just over 1,000 spectators per
home game.
Dunfermline
The club’s turnover increased for the
first time in 4 years to £5.1m (2006:
£2.9m). However, the 2006/07 season
ultimately ended in disappointment
with Dunfermline being relegated to
the First Division after seven seasons
in the top flight. The Fife club were
still able to achieve a place in the
final of the Scottish Cup, although
eventually losing 1‑0 to Celtic. In
addition the club’s results were
strengthened by the inclusion of their
conference and hospitality business
which was previously operated as a
separate entity.
9
Profit and loss.
Turnover
‘Hibs achieved
a record level of
season ticket sales,
up by 11% to 10,500
for season 2006/07’
Hearts
After conquering the Old Firm’s stranglehold on the top two spots the year before,
Hearts began the season attempting to qualify for the UEFA Champion’s League.
This European adventure was short‑lived, however, the additional turnover
generated from the gate receipts from ‘home games’ at Murrayfield offset the
lost revenues from poor domestic cup runs. These home games included a
lucrative pre‑season friendly against Barcelona in which a record 57,857 crowd
watched an inspirational performance from Ronaldinho help Barcelona to a 3‑1
victory. This still remains the biggest ‘home’ attendance in their 133 year history.
These opposing factors resulted in a negligible rise on last year’s record turnover
of £10.3m, coupled with season ticket sales having to be capped at 13,500 for
the season.
Hibernian
Hibernian’s turnover increased by 13% (£1.1m) in the year to £9.8m, this being
their second successive season of strong growth. To underpin the healthy
figures Hibs achieved a record level of season ticket sales, up by 11% to 10,500
for season 2006/07, in addition to a successful season on the park. Under the
stewardship of John Collins, they won the CIS Insurance Cup and reached a
Scottish Cup semi‑final, only to be beaten by Dunfermline 1‑ 0 in a replay.
Inverness Caledonian Thistle
As Inverness Caledonian Thistle filed abbreviated accounts in the current year no
information in regard to turnover was available.
Kilmarnock
Kilmarnock finished in 5th place for the second consecutive season as well
as reaching their first domestic Cup Final since 2001, although they were
comfortably beaten 5 – 1 by Hibernian. This appearance in a cup final, in addition
to enhanced match day revenues, helped to increase turnover c£700k to £8.1m.
(2006: £7.4m)
10
Motherwell
A disappointing SPL campaign saw Motherwell finish in the bottom six once
again, and resulted in a trifling increase in turnover of 2% to £3.7m (2006: £3.6m).
Rangers
Rangers entered the season under the new management of Paul Le Guen under
an immense wave of expectation, but unfortunately the Frenchman was unable
to mirror his previous successes at Lyon. Leaving by mutual consent in January,
Le Guen was replaced by fans favourite Walter Smith returning for his second
managerial spell at the Ibrox club. Under Smith’s stewardship Rangers finished
the SPL season in second place and gained subsequent entry to the UEFA
Champions League second qualifying round after defeating Celtic 2–0 at Ibrox.
A drop in sponsorship and advertising revenue of £8.2m was a direct result of
no Champion’s League football, and highlights the importance of participation
in this competition. Overall turnover fell by £19m from the record high of £61m
in 2005/06, however £17.2m of this drop is attributable to the aforementioned
discontinued operations. Furthermore, this was compounded by 3rd and 4th
round exits from the Scottish and League Cups respectively.
St Mirren
The club’s return to the SPL for the first time since their relegation in 2001
witnessed an unprecedented 74% increase in turnover to £3.0m (2006: £1.7m).
This remarkable increase can be attributed to a combination of increased
attendances at Love Street, up 48%, and higher ticket prices.
11
Profit and loss.
Attendance level
The SPL attracted slightly higher crowds during the 2006/07 season with average
attendance figures up 3% from the previous season. Total average attendance
for a round of SPL fixtures was 194,321, in comparison to 192,857 the season
before. On the back of St Mirren’s return to the SPL, their first time since
season 2000/01, the club witnessed the largest percentage increase in average
attendance: a staggering 48%. Kilmarnock was second with an increase of 7%.
The largest crowd of the season was on 28 January 2007 at Celtic Park where
59,659 spectators witnessed Celtic defeat Hibernian 1–0.
Total stadium utilisation has remained constant at 76% in the year, and similarly
a third of SPL stadiums remained half empty as in the previous year. Note
that utilisation figures are based on average attendance as a proportion of
stadium capacity.
12
Average Attendence
by Club
Aberdeen
Celtic
Falkirk
Dundee United
Dunfermline
Heart of Midlothian
Hibernian
Inverness CT
Kilmarnock
St Mirren
Motherwell
Rangers
Totals
Source: Scotprem.com
Average
Attendence
2007
Average
Attendence
2006
Utilisation
2006/07
Utilisation
2005/06
12,474
57,927
5,386
7,146
6,105
16,889
14,586
4,814
7,556
5,608
5,876
49,954
194,321
12,727
58,149
5,515
8,197
6,260
16,767
13,816
5,061
7,070
3,800
6,250
49,245
192,857
58%
96%
68%
50%
49%
97%
84%
64%
42%
52%
43%
98%
76%
59%
96%
69%
58%
50%
96%
79%
67%
39%
35%
46%
98%
76%
‘On the back of St
Mirren’s return to
the SPL, their first
time since season
2000/01, the club
witnessed the
largest percentage
increase in average
attendance: a
staggering 48%.’
13
Profit and loss.
Employee costs
Wage to Turnover Ratio Analysis
Total Wages
2007
£’000
Aberdeen
5,155
Celtic
36,421
Falkirk
2,310
Dundee United
2,582
3,339
Heart of Midlothian
12,488
Hibernian
4,063
1,349
Kilmarnock
3,899
St Mirren
1,752
Motherwell
2,371
Rangers
24,258
Total
99,987
Employee Costs
Aberdeen
The wage bill at Aberdeen increased
significantly during the year by 20%
to £5.2m (2006: £4.3m). This is partly
explained by an end of season bonus
paid to the players for achieving
a 3rd place finish in the league,
accompanied by an increase in first
team wages to improve the quality
of the squad. This has resulted in a
drift away from the more sustainable
wage to turnover ratio of 59% from the
season before.
Celtic
Once again, Celtic continues to have
the highest wage bill in the SPL. At
£36.4m the employee costs for 2007
were 33% higher than their Old Firm
rivals, partly due to their successful
season on the park and the increased
bonus payments that accompany it.
However, this increase was more than
offset by the club’s record breaking
2006
£’000
4,312
32,490
1,827
2,825
1,708
10,499
3,678
1,310
3,329
1,012
2,449
27,989
93,428
Movement
%
20%
12%
26%
‑9%
95%
19%
10%
3%
17%
73%
‑3%
‑13%
7%
turnover during the year, leading to a
reduction in the wage to turnover ratio
to an extremely manageable 48%.
Dundee United
Dundee United was one of only three
clubs that managed to reduce their
year on year wage costs. A 9% fall to
£2.6m equated to a saving of £240k
for the Tangerines. This follows the
club’s stated strategy of reducing the
wage bill by disposing of the higher
earning players. Even though the club
experienced a drop in turnover for the
year, the significantly greater reduction
in wage costs enabled the club’s
wage to turnover ratio to fall to 64%
(2006: 68%).
Dunfermline
After finally reaching the recommended
industry wage to turnover ratio of
c60% in 2006, the Pars wage bill
soared this year by a staggering
95%. This was in part due to the
club reaching the Scottish Cup Final
14
Total Turnover
2007
£’000
7,519
75,237
3,997
4,011
5,149
10,319
9,847
2,877
8,061
2,956
3,681
41,768
175,422
2006
£’000
7,320
57,411
3,303
4,151
2,905
10,277
8,706
2,742
7,395
1,702
3,622
61,165
170,699
Movement
%
3%
31%
21%
‑3%
77%
0%
13%
5%
9%
74%
2%
‑32%
3%
and the associated bonus payments,
however it was mainly a result of
the increased playing squad which
was required to compensate for
a catalogue of injuries as the club
attempted to stave off relegation.
Furthermore, Dunfermline created a
new position of Director of Football
during the year alongside the
appointment of a new Manager in
Stephen Kenny and his backroom
management staff. These factors have
had the net effect of a shift in the wage
to turnover ratio from 59% to 65%.
Falkirk
Following Falkirk’s survival in the
league, this enabled the directors
to procure increased quality in their
playing squad, as the club look to
continue the strides made in the
previous season. In spite of this
increase, the wage to turnover
ration remains at a respectable 58%
(2006: 55%).
Wages/Turnover Ratio
2007
2006
£’000
£’000
69%
59%
48%
57%
58%
55%
64%
68%
65%
59%
121%
102%
41%
42%
47%
48%
48%
45%
59%
72%
64%
68%
58%
46%
57%
55%
Hearts
2006/07 saw Hearts continue to
maintain a wage to turnover ratio in
excess of 100% with an additional
£2m being tied up in employment
costs. Hearts’ wage costs have nearly
tripled in three seasons from £4.5m
in 2005 to a present figure of £12.5m
due in part to additions in the playing
squad during the year coupled with
an improvement in terms offered to
existing players. As a result of the
significant increase in costs, the
wage to turnover ratio now sits at an
unsustainable 121%.
Hibernian
Despite a 10% increase in wage costs,
Hibernian continues to operate with
the lowest wages to turnover ratio in
the SPL. The 13% increase in turnover
during the year more than covered
the increased employee costs, as the
wage to turnover ratio reduced from
42% to 41% in the year.
As Inverness Caledonian Thistle
produced abbreviated accounts in the
current year no information in regard to
wage costs was available.
Kilmarnock
Kilmarnock increased wages by 17%
to £3.9m (2006: £3.3m), following the
Club’s appearance at Hampden for
the CIS Insurance Cup Final. This
successful cup run contributed to an
increased turnover of £700k, resulting
in a slight increase in the wage to
turnover ratio by 3%.
Motherwell
Motherwell’s wages to turnover
ratio was positively impacted by the
marginal increase to turnover, coupled
with the negligible drop in wages. The
current year ratio of 64% is down from
68% in the previous year.
Rangers
This season has witnessed Rangers’
continual push to run a sustainable
business by slashing £3.7m off their
wage bill. The 13% fall was the single
biggest decrease of all the clubs
in the SPL. However, the greater
proportional decrease in turnover
resulted in the club’s wage to turnover
ratio rising by 8% to 58%.
St Mirren
St Mirren’s return to the SPL and the
need to improve the strength and
depth of their playing squad in order
to maintain top flight status directly
impacted both employment costs
and turnover, with rises of 73% and
74% respectively. The net impact on
the wage to turnover ratio remained
constant at 59%, thus demonstrating
a prudent but effective approach to
SPL survival.
15
Profit and loss.
Player registration
fees
The costs associated with the amortisation of player transfer fees have risen 38%
to £11.5m (2006: £8.3m), on the back of increased activity in the transfer market
for both halves of the Old Firm.
Celtic’s amortisation charge increased £800k to £5.9m, demonstrating the club’s
increased investment in the first team squad. This increase of 15.1% from the
previous year is mainly a result of the charge for players acquired during the year
including Thomas Gravesen, Paul Hartley and Jan Vennegoor of Hesselink, offset
by elimination of the charge in respect of football players who left following the
end of the 2005/06 season.
Rangers’ amortisation charge also increased from £1.8m to £3.8m, with a total
of £7.2m worth of additions made in the year, constituting Kevin Thomson, Filip
Sebo, Jérémy Clément, Saša Papac and DaMarcus Beasley.
After doubling their charge in 2006 from 2005, Hearts’ charge for the year almost
doubled again to £1.3m (2006: £0.75m), mainly due to their persistent transfer
market activity.
The gain on sale of player transfer increased dramatically from £4m in the prior
year to £18.8m, a staggering rise of 360%. Notable gains were made by Celtic
and Hibernian, being £9.4m and £6.4m respectively. Celtic’s gain was derived
from the sales of Stilian Petrov, Shaun Maloney, Stephen Pearson, Stan Varga and
Ross Wallace. Hibernian’s gain is principally attributable to departing midfielders
Kevin Thomson and Scott Brown. After a lengthy struggle from both sides of the
Old Firm to procure their signatures, Kevin Thomson moved first to Ibrox during
the January transfer window in a £2m deal. After months of speculation, Scott
Brown completed his move to the other side of Glasgow for £4.5m. This was in
spite of their agent’s desire to package the players in a combined deal to obtain a
synergised price.
16
17
Profit and loss.
Profit/Loss
before tax
The SPL generated an overall profit before tax of £2.8m, this being the first time
that the clubs produced a combined ‘real’ profit since 1996. ‘Real’ in the sense
that the surplus that was recorded in Season 05/06 was as a consequence of
the write off of debt following administration proceedings. Only four SPL clubs
adversely impacted this profit during the year by generating losses.
Net profit/(loss) before tax by club
£’000
Aberdeen
Celtic
Falkirk
Dundee United
Heart of Midlothian
Hibernian
Kilmarnock
St Mirren
Motherwell
Rangers
Total
2007
‑537
15,040
146
‑989
319
‑12,933
7,418
278
52
277
7
‑6,310
2006
‑1,500
‑4,222
479
‑786
‑359
‑5,768
2,222
219
127
27
122
92
Movement
‑64%
‑456%
‑70%
26%
‑189%
124%
234%
27%
‑59%
926%
‑94%
‑6959%
2,768
‑9,347
‑130%
18
Aberdeen
Aberdeen were one of the four clubs
to post a loss during the year, however
this was approximately one third of the
loss incurred in 2006, at £0.5m (2006:
£1.5m). This operational improvement
was impacted by their improvement on
the park and their third place finish in
the SPL. This financial improvement
assisted in reducing their interest costs
by c£100k.
Celtic
For the third successive season,
Celtic generated an operating profit.
Aided by record levels of turnover and
significant gains on the sale of players,
the club managed to convert this into
a record bottom line profit before tax
of £15m.
Dundee United
Dundee United buck the recent trend
and posted an increased loss following
a reduction in turnover during the year.
Total loss was £1m compared to £0.8m
last year.
Dunfermline
Dunfermline yielded a profit of £0.3m
in the year compared to a loss of
£0.4m in the previous year. Wages
skyrocketed but this was offset by a
significant increase in turnover due
to their successful Scottish Cup run.
The financial success this season was
further boosted by an exceptional loan
write off by Wood Investments Limited
of £904k.
Falkirk
Their second successive year in the
SPL continued to be profitable, albeit
with a depressed profit of £150k (2006:
£480k). This was attributable to the
rising costs in the club’s attempts
to attract a higher calibre of player
to the first team squad resulting in
enlarged salaries of £500k in addition
to a similar rise in operating costs.
However, this return to profitability
for the Falkirk club further highlights
the importance of sustaining their
SPL status.
Hearts
Hearts generated a loss of £12.9m in
the current year; an increase of £7.2m
from the previous season. Although
record income was posted for the year
alongside a gain in player registrations
of £1.1m, this was counteracted by
the significant increase in wage costs
(£2m). Furthermore, the additional
operating costs incurred during the
season negated the record turnover.
Hibernian
Hibernian announced record annual
net profits of £7.4m following a
highly successful year on and off
the pitch. Big‑money sales of Scott
Brown to Celtic and Kevin Thomson
to Rangers saw a net gain of £6.4m
from transfers together with turnover
increasing by £1.1m to £9.8m (2006:
£8.7m). Hibs results were underpinned
by a year‑end operating profit of
£1.4m, being their third successive
year in which the Edinburgh club
has traded profitably; demonstrating
that the club's costs are in line with
revenues. This provides Hibs with a
solid platform for continued growth
and prosperity, in contrast with their
Edinburgh rivals.
Inverness
In their third season in the SPL,
generated a profit of £0.3m (2006:
£0.2m) which is a reflection of the
tightly run Highland league club
whereby increased costs are more
than met by enhanced turnover.
Kilmarnock
Following on from the club’s return to
a profit for the first time since 1999
last year, Killie managed to generate
a second successive profit during
2007 albeit slightly reduced at £52k
(2006: £127k). This profit was driven
by increased turnover generated in
the year, whereas 2006 figures were
skewed by a gain of £100k on the sale
of fixed assets.
Motherwell
Motherwell remained in the black for
the fourth consecutive year generating
a small £7k profit, down £115k from
the previous year. The reduction in
profit is principally due to increased
operating expenditure.
Rangers
2006/07 was the first full year
which incorporated the impact of
Rangers’ licensing deal with JJB
Sports plc. Coupled with a second
successive trophy‑less season, and no
participation in the Champion’s League
group stages, the club’s profit before
tax in the previous year was eroded
and a loss of £6.3m was incurred.
Despite the reduction in wage costs
and improved operational efficiencies,
the loss was compounded by the
doubling of the annual amortisation
charge and a startling 32% fall in top
line turnover. These results underscore
the significance of Champion’s League
football to the Old Firm’s financial
health, and the adverse effect of lost
merchandising revenue.
St Mirren
The SPL factor was epitomised
by the soaring profits of St Mirren,
demonstrating the financial rewards
that a place in the SPL brings for
provincial clubs. Profits before tax
were up by a monumental 924% to
£277k (2006: £27k). This was due to
a combination of higher sponsorship,
television revenues and attendances.
19
Balance sheet.
Overview
The total net assets of the SPL clubs at the end of season 2006/07 was £98.2m,
up by 10% from the previous year (2006: £89.5m). The current year increase
follows significant improvements in profitability and, consequently the cash held
at both Celtic and Hibernian due to the recognition of income received on player
sales recognised.
The SPL Clubs’
Combined Balance Sheet
Fixed Assets
Investments
Intangible Assets
Tangible Assets
Total Fixed Assets
Current Assets
Stocks
Debtors
Cash at bank and in hand
Total Current Assets
Creditors: due with one year.
Net current assets
Total Assets Less Current Liabilities
Creditors: due > 1year.
Net Assets
Capital and reserves
Called up share capital
Share premium account
Rangers Bond
Revaluation reserve
Captial redemption reserve
Other reserves
Profit and loss account
Total
Total
Total
Movement
2007
£’000
2006
£’000
%
2,868
28,947
267,809
299,624
2,868
19,727
254,935
277,530
4,292
24,151
26,806
55,249
3,004
21,251
29,805
54,060
(122,794)
(67,545)
232,079
(133,856)
98,223
(110,552)
(56,492)
221,038
(131,502)
89,536
44,742
150,373
7,736
92,648
2,440
30,829
(230,545)
98,223
44,727
149,219
7,736
88,897
1,739
30,827
(233,609)
89,536
0%
47%
5%
8%
43%
14%
‑10%
2%
11%
20%
5%
2%
10%
0%
1%
0%
4%
40%
0%
‑1%
10%
20
Key balance sheet highlights are noted as follows:
• Intangible assets (player contracts) increased 47% to £28.9m in the year due
to continued significant investment by Celtic, Hearts and Rangers.
• Tangible fixed assets witnessed a 5% increase following Aberdeen’s upward
revaluation of Pittodrie stadium and Celtic’s considerable investment in their
new training facilities at Lennoxtown.
‘Ten clubs in the
SPL improved their
net asset position in
the year’
• Ten clubs in the SPL improved their net asset position in the year, with the
most notable increases at Aberdeen Celtic and Hibernian as outlined above.
• Net debt increased by 12% to £105.9m (2006: £94.9m), led by Hearts with a
£9m increase. Rangers met with a £10.6m increase and at the other end of
the scale, Celtic and Hibernian offset some of this increase with improved net
debt positions of £4.8m and £4m respectively.
Net Assets/Liabilities per Club
Aberdeen
Celtic
Falkirk
Dundee United
Heart of Midlothian
Hibernian
Inverness CT
Kilmarnock
St Mirren
Motherwell
Rangers
Total
2007
2006
Movement %
2,948
36,729
3,480
‑3,887
‑7,894
‑24,891
12,375
1,141
3,394
1,613
1,313
71,902
98,223
‑235
22,097
3,324
‑4,003
‑8,215
‑12,444
4,758
862
2,595
1,337
1,305
78,155
89,536
‑1354%
66%
5%
‑3%
‑4%
100%
160%
32%
31%
21%
1%
‑8%
10%
21
Balance sheet.
Overview
Source of Borrowings
£’000
Borrowings due < 1
Borrowings due > 1
Club
External
Connected
External
Connected
‑
(901)
‑
‑
(12,331)
(15,112)
‑
(6,000)
(1,840)
(14,600)
(6,532)
‑
(1,200)
(5,249)
5%
2%
‑
(158)
‑
(226)
‑
(17,066)
(80)
‑
‑
(462)
‑
‑
(17,992)
17%
12%
(8,663)
‑
‑
(22,073)
(87,151)
82%
85%
(300)
‑
‑
(10)
(3,757)
‑
(1,280)
(20)
‑
(678)
(1,104)
‑
(7,149)
7%
9%
Aberdeen
Celtic
Falkirk
Dundee United
Heart of Midlothian
Hibernian
Kilmarnock
St Mirren
Motherwell
Rangers
Total
2007%
2006%
(3,000)
(70)
‑
(78)
Analysis of combined SPL net debt
2007
£’000
2006
£’000
Cash at bank and in hand
Bank Overdraft
Net cash/(overdraft)
Borrowings due within one year
Borrowings due in more than one year
Amounts owed under hire purchase
26,806
(10,380)
16,426
(23,241)
(94,300)
(4,764)
29,806
(17,205)
12,601
(12,951)
(89,640)
(4,954)
(105,879)
(94,944)
Net debt
22
HP/ Finance
Leases
Total Borrowing
Overdraft/(Cash)
balance
Net Debt
(261)
‑
‑
(48)
(79)
‑
(59)
‑
‑
(17)
(8)
(4,292)
(4,764)
4%
5%
(12,892)
(16,171)
‑
(6,284)
(5,676)
(34,666)
(8,021)
(20)
(8,741)
(1,157)
(1,112)
(27,565)
(122,305)
‑
‑
1,434
7,006
980
(999)
(3,248)
(2,902)
5,145
430
(2,860)
(217)
634
11,023
16,426
‑16%
‑13%
(11,458)
(9,165)
980
(7,283)
(8,924)
(37,568)
(2,876)
410
(11,601)
(1,374)
(478)
(16,542)
(105,879)
100%
100%
Movement
%
2007
% of total debt
2006
% of total debt
‑10%
‑40%
30%
79%
5%
‑4%
‑16%
22%
89%
4%
‑13%
14%
94%
5%
12%
100%
100%
23
Balance sheet.
Overview
Net Debt by Club
2007
Net Debt
£’000
2006
Net Debt
£’000
Movement
£’000
Movement
%
Aberdeen
Celtic
Falkirk
Dundee United
Heart of Midlothian
Hibernian
Kilmarnock
St Mirren
Motherwell
Rangers
Total
Average per Club
‑11,458
‑9,165
980
‑7,283
‑8,924
‑37,568
‑2,876
410
‑11,601
‑1,374
‑478
‑16,542
‑105,879
‑8,823
‑10,876
‑13,965
926
‑7,634
‑7,803
‑28,405
‑6,834
179
‑12,444
‑1,817
‑388
‑5,883
‑94,944
‑7,912
‑582
4,800
54
351
‑1,121
‑9,163
3,958
231
843
443
‑90
‑10,659
‑10,935
‑911
5%
‑34%
6%
‑5%
14%
32%
‑58%
129%
‑7%
‑24%
23%
181%
12%
12%
‑8,017
‑7,510
‑508
7%
Average per Club
(excl Old Firm)
The rise in net debt during season 2006/07 has bucked the trend of recent years
which have seen many of the clubs take additional measures to reduce their debt
burden and experience the benefit from improved operating results. The current
year has been impacted by the first full season of Rangers’ JJB deal, in addition
to their poor trading year following early exits from both cup competitions in
addition to no Champions League football. This has subsequently reduced the
in cash balance to £11m (2006: £22m). Furthermore the continuation of the
Romanov era at Hearts has doubled their net liability position to £24.9m this year
(2006: £12.4m).
24
Aberdeen
Aberdeen’s net debt increased by 5%
to £11.5m in the year (2006: £10.9m).
Their debt is mainly funded through
the new banking arrangements that
the club entered into during the year,
namely a £12.3m loan from the Bank
of Scotland which the club managed to
secure through the sale and leaseback
of Pittodrie stadium. This is in stark
contrast to the previous years whereby
debt was continually increasing due
to the additional usage of the clubs
overdraft facilities as opposed to
drawing down on loans. In addition
to this change in the company’s debt
structure, the net assets of the Dons
were uplifted by the revaluation of
Pittodrie stadium during the year. This
was responsible for adding £3.6m to
their net assets during the year.
Celtic
The principal factor affecting Celtic’s
financial performance was the volume
of transfer activity during the year
mainly to the English Premiership,
the most affluent league in the world
following the FAPL television contract
with BSkyB. The effect of these player
sales combined with their success on
the park resulted in the Glasgow club
reducing their net debt by £4.8m to
£9.2m (2006: £14.0m). Further, due
to the application of FRS 25, funds
previously classified as equity are now
presented as debt. This has had the
effect of increasing debt by £4.0m
in the current year and £4.7m in the
previous year.
Falkirk
The Bairns are the only club in the SPL
to have a positive cash position with
no debt. Funds were improved further
in the year via increased turnover more
than covering the increased costs.
This was Falkirk’s second successive
year in the SPL and in order for the
club to continue to sustain their net
asset position it is essential that they
continue to consolidate their place in
the top tier of Scottish football.
Dundee United
Net debt levels at Dundee United
reduced by 5% to £7.3m (2006:
£7.6m) due in full to the reduction in
the loan balance to the current owner
Eddie Thompson. The majority of the
debt (£6m) is held with the Bank of
Scotland, to which Eddie Thompson
acts as personal guarantor.
Dunfermline
Dunfermline’s net debt increased by
14% to £8.9m (2006: £7.8m). The
reasons being two‑fold: the club
attempted to stave off the threat of
relegation whilst trying to compensate
for the horrific injury list by bringing in
additional players during the January
transfer window. This resulted in the
club borrowing an additional £840k
from the bank in order to meet these
needs. Unfortunately the club did not
win the battle against the drop and
in order to reverse this debt position
going forward the club will be hoping
for a quick return to SPL football.
Hearts
The Edinburgh club’s debt continued
to soar from the previous year to a
record £37.6m (2006: £28.4m). This
increase in net debt of £9.2m was
second only to Rangers during the year
as the club continued to be bankrolled
by UAB Ukio Banko Investicine Grupe
and the additional usage of bank
overdraft facilities. Hearts now have
the unenviable position of having more
debt than both Celtic and Rangers
combined (£25.7m).
Hibernian
In contrast to their rivals, Hibs’
net debt dropped £4m to a very
manageable £2.9m, down 58% from
the previous year (2006: £6.8m). The
reduction is due to a combination of
improved operating results in addition
to the sales of both Kevin Thomson
(£2m) and Scott Brown (£4.5m) to
Rangers and Celtic respectively.
Both of these factors contributed
to improving the net cash position
at the year‑end by £3.3m from the
previous year. The main component
of the remaining debt is unchanged
from the previous year and includes a
£6.5m stadium mortgage and £1.4m of
connected parent company debt.
25
Balance sheet.
Overview
As in the previous years, the Highland
club continues to operate with a net
cash position as they hold only £20k
of debt which is in the form of an
interest‑free loan. This follows the
extremely prudent approach by both
the Chairman Alan Savage and the
Board, as the clubs inflows continue to
exceed their outflows resulting in the
clubs net assets increasing to £410k
(2006: £179k).
Kilmarnock
Kilmarnock’s net debt decreased by
£0.8m to £11.6m in the year primarily
due the improvement in the clubs
200000
gross cash position (2006: £12.4m).
This was assisted by the clubs
impressive season operating under a
tight budget, they managed to make
a League Final and cement their place
with another top six place finish in the
SPL. The mixture of debt continues
in a similar vein to the previous year
with both bank overdrafts and loans
being utilised.
Motherwell
Motherwell’s net debt increased in the
year to £0.5m (2006: £0.4m) primarily
due to the clubs poor domestic league
finish and early exits from both cup
competitions. As the club does not
Historic debt vs loss £000’s
150000
100000
50000
0
(50000)
(100000)
1997
1998
1999
2000
26
have an overdraft, the rise in debt
is due to the poor operating results.
Furthermore, the club has also taken
steps to reduce the amount due to
Chairman John Boyle at the year end
to £1.1m (2006: £1.2m).
Rangers
As a result of the £18m JJB Deal
upfront payment, Rangers’ net debt
reduced significantly from £23.1m
(2005) to £5.9m (2006). However,
the current year was the first to
feel the full impact of this deal and
subsequently Rangers have lost
out on the additional revenue which
was previously generated from
merchandising. Add to this the
clubs lost broadcasting revenue from
missing out on the Champions League
and early exits in both domestic cup
competitions resulted in depressing
their cash balance to £11m from
2006 and increasing net debt back
to its 2005 levels (2007: £16.5m).
Gross borrowings remaining relatively
unchanged at £27.6m, which is largely
made up of a £22.1m bank loan and
£4.3m of finance lease creditors.
position to £1.4m (2006: £1.8m)
thus highlighting the importance of
sustaining their SPL status. Similar
to many of the provincial clubs that
experienced enhanced net debt figures
during the year, this was attributable
to the club reducing its reliance on its
overdraft due to improved operating
performance coupled with the
increased gate receipts, broadcasting
revenues and sponsorship deals that
the SPL brings.
St Mirren
The Paisley clubs return to the top
flight for the first time since 2001
helped the club improve its net debt
Total SPL profits/(losses)
Net debt
2001
2002
2003
2004
2005
2006
2007
27
Cash flow.
Overview
For the third successive year, the SPL generated a net cash inflow of funds of
£21.7m, up from £8.3m in the previous year. These results are somewhat skewed
by the JJB financing provided to Rangers. The club received £15m upfront in the
previous year, but due to the accounting treatment adopted, this cash inflow did
not have any impact on the accounts until the current year.
Financing levels decreased slightly from that experienced in the previous year
£14.8m (2006: £16.4m) however this was primarily due to the previous year figure
containing the £15m rights issue that was undertaken by Celtic in order to repay
£8.4m of their debt. By far and away the greatest contributor to this balance
in the current year was Aberdeen who undertook a large refinancing operation
following the revaluation of Pittodrie to reduce the interest burden of their
overdraft by replacing it with a long term loan.
Cash generated from operating activities has decreased by 53% to £13.0m
(2006: £27.4m).
Rangers suffered the greatest turnaround in the cash flow generated from
operating activities. During the current year they had a net cash outflow of £4.3m
while in the previous year they yielded a cash inflow of £24.7m. This follows
the clubs disappointing operating activities, whilst the previous year figure
incorporates the funds received from JJB Sports.
Hearts managed to decrease their cash outflow from £5.2m in the previous
year to £3.0m in the present year. Similar to the previous year Hearts were
bankrolled by considerable investment from their parent company, UAB Ukio
Banko Investicine Grupe who again invested £10m into the Tynecastle club. This
additional loan resulted in Hearts incurring £1.8m in interest costs during the year
(2006: £1.3m).
On the contrary Celtic’s record breaking season with regards to turnover and
profits transformed the net cashflow they generated from operating activities
£18m (2006: £5m). Although significant sums were then reinvested into their new
training facilities, the first team squad and the repayment of a further £0.9m of
debt, the Parkhead club still managed to generate a greater cash inflow than the
previous year £4.1m (2006: £2.7m). This is even more remarkable given that the
previous year’s balance included the results of a fully underwritten £15m rights
issue by Celtic’s influential non‑executive director Dermot Desmond.
28
Due to the additional investment
made in both player registrations
and Celtic’s investment in their new
training facilities at Lennoxtown
during the year, cash outflow from
capital expenditure was up 16% to
£16.5m (2006: £14.3m). The main
contributors to this outflow continued
to be both halves of the Old Firm
with Celtic spending £12.1m (2006:
£6.9m) to Rangers £5.2m (2006:
£5.8m). However Hearts’ investment
levels continued in a similar vein to
the previous year as they attempted
to break the Glasgow clubs as the
top two clubs in the SPL at £3.3m
(2005: £2.5m).
Combined SPL Cash Flow
Net Cashflow from Operating Activities
ROI and Servicing of Finance
Capital Expenditure & Financial Investment
Taxation
Acquistions
Management of liquid resources
2007
£’000
2006
£’000
13,009 27,390
(4,818) (6,284)
(16,497) (14,260)
174
272
‑
(221)
15,000 (15,000)
Movement
%
‑53%
‑23%
16%
‑36%
100%
100%
Cash Inflow/(Outflow) before Financing
6,868
(8,103)
‑185%
Financing
14,827
16,384
‑10%
Net Cash Inflow/(Outflow)
21,695
8,281
162%
The management of liquid resources of
£15m (2006: ‑£15m) is derived solely
from Rangers and represents the funds
received from the JJB deal transferred
from the short‑term deposit account,
which they were placed in during the
previous year.
Due to the fact that no cashflow
statement was presented in their
statutory accounts both Dunfermline
and Inverness Caledonian Thistle were
omitted from the analysis.
29
Cash flow.
New finance
raised
Cashflow from financing activities has decreased by 10% to £14.8m
(2006: £16.4m). The previous year was inflated by the funds raised via Celtic’s
rights issue which raised £14.6m, while there were smaller issues at Falkirk and
Dundee United. During the current year only Dundee United issue share capital
of any significance totalling £1.1m. Further details on the debt raised in the period
are contained within the Balance Sheet section of this report.
New Finance Raised
2007
£’000
2006
£’000
Movement
%
Net Proceeds from Share Issue
Debts
Inflow from new finance
1,124
21,818
22,942
15,126
12,224
27,350
‑93%
78%
‑16%
Repayment of Debt
Capital Element of finance lease
Outflow from finance
(7,928)
(188)
(8,116)
(10,555)
(411)
(10,966)
‑25%
‑54%
‑26%
Net cashflow from financing
14,826
16,384
‑10%
30
31
Cash flow.
Player transfers
Analysis of cash movement from player transfers
2007
£’000
Outflow
Inflow
Net
Outflow
Inflow
Net
‑25
689
664
‑242
35
‑207
‑10,959
5,974
‑4,985
‑4,477
643
‑3,834
Aberdeen
Celtic
Dundee United
2006
‑172
364
192
‑397
463
66
‑3,822
1,280
‑2,542
‑1,517
113
‑1,404
Hibernian
‑409
6474
6065
‑230
1,555
1,325
Rangers
‑6359
2336
‑4023
‑4,017
1,527
‑2,490
St Mirren
‑25
0
‑25
‑5
0
‑5
‑21,771
17,117
‑4,654
‑10,885
4,336
‑6,549
Heart of Midlothian
Totals
The net cash outflow from player transfers decreased in the year to £4.7m (2006:
£6.5m). The level of cash outflow has doubled in comparison with the previous
year. The cash inflow has also increased significantly year on year experiencing
a 295% increase from the 2006 levels at £17.1m (2006: £4.3m). This is directly
attributable to the level of transfer market activity of both sides of the old firm,
whilst Hearts continue to remain the third most prominent force in player activity.
The principal factor affecting the transfer market activity was the buoyant market
in England which was stimulated by the FAPL television contract. This enabled
various English clubs to take advantage of less affluent conditions north of
the border with the lure of offering greater wages. Although there are financial
advantages which the Scottish clubs are able to reap from this contract, the gap
between the two markets has grown enormously in the past two years resulting
in the movement of the best players from the SPL to the English Premiership
becoming more pronounced. This has consequently impacted the talent pool
which clubs out‑with the old firm are able to draw on, as they find themselves
competing with clubs within England’s second tier, which has recently been
named the 5th richest league in the world.
Domestically within the SPL, Hibs benefited from the sales of their home grown
duo Kevin Thomson (£2m) to Rangers and Scott Brown to Celtic (£4.5m), whilst
only a fraction of this money was reinvested in the playing squad with the most
notable addition being Rob Jones (£0.1m) from Grimsby.
Out‑with the SPL Celtic realised inflows from the sale of the following players:
Ross Wallace and Stan Varga left to join Sunderland for a combined fee in the
region of £1m, while Stilian Petrov went to Aston Villa for £6.5m. During the
January transfer window Shaun Maloney joined Martin O’Neill at Aston Villa for
a fee of £1m while Stephen Pearson went to Derby for £0.8m. The fact that the
32
£5000k
1997
1998
1999
Net transfer fees
2000
2001
2002
2003
2004
2005
2006
2007
£0k
£-5000k
£-10000k
£-15000k
£-20000k
£-25000k
£-30000k
club only received £6m in the way of
transfer fees is a result of the Shaun
Maloney fee being dependent on the
number of appearances he makes for
the Midlands club.
Celtic spent heavily in the transfer
market on the back of the guaranteed
Champions League broadcasting
and sponsorship revenue on Scott
Brown as outlined above. In addition,
the other notable purchases
were Jan Vennegoor of Hesselink
(£3.4m) from PSV Eindhoven, Jiri
Jarošík (undisclosed) from Chelsea
and Thomas Gravesen from Real
Madrid (£2m).
Hearts inflow was derived from the
sale of Rudi Skácel to Southampton
for £1.6m, however this fee was
conditional on certain factors meaning
the Tynecastle club have only banked
£1.3m to date. Hearts were particularly
active in strengthening their squad
as they pursued Champions League
qualification. Hristos Karipidis was
signed from PAOK Salonika £0.2m,
Laryea Kingston from Terek Grozny
All Clubs
(undisclosed) and the FBK Kaunas duo
of Eduardas Kurskis and Arkadiusz
Klimek joined for undisclosed fees.
This pair joined four of their colleagues
that had previously been loaned to the
Edinburgh club for the season.
Rangers’ main source of inflow was
generated from the sale of Fernando
Ricksen to Zenit St Petersburg (£1m)
and Julien Rodriguez to Olympique
de Marseille (undisclosed). During the
summer months previous manager
Paul Le Guen brought in the following
notable additions Karl Svensson
(£0.6m), Jérémy Clément (£1.1m), Filip
Sebo (£1.8m) and Saša Papac (£0.5m).
However following the managerial
change, Walter Smith brought in British
players during the January transfer
window in the form of David Weir, Andy
Webster and Ugo Ehiogu all on free
transfers in addition to securing the
transfer of Hibs' highly rated midfielder
Kevin Thomson for £2m.
No balances in respect of movement
in players’ transfers were disclosed for
Falkirk, Kilmarnock and Motherwell in
Celtic
Rangers
their Cashflow Statement.
The main influence in recent years
on the net transfer fees of the SPL
is a club’s ability to raise funds in
player sales as significant spending
in the transfer market by Scottish
clubs remains scarce. Since the
high spending days of the 1999/2000
season Rangers have spent over
£40m in player acquisitions including
that of Tore Andre Flo and Jean Alain
Boumsong, whilst Celtic have spent
£56m over the same period due to
high profile arrivals of Chris Sutton
and Neil Lennon. In more recent times
the trend has continued towards the
development of home grown players
and between the end of the 2006/07
season and the time of writing,
clubs such as Rangers and Hearts
have benefitted substantially with
the sales of Alan Hutton and Craig
Gordon to Tottenham Hotspur and
Sunderland respectively for £9m each,
hence underlining the importance of
developing youth.
33
Club five
year review
This section provides a snapshot of
the key financial numbers of turnover,
profit/(loss) before tax, wages and net
debt over the past five years for each
SPL club.
34
35
Aberdeen
Aberdeen’s successful season helped
to ensure that they posted their best
financial performance over the last
five years. While wages and salaries
increased by £0.8m, a corresponding
increase in turnover helped to reduce
losses for the period to £0.5m, a five
year low. The only slight downside to
this being that debt levels did again
rise, however, only by £0.6m, £1.0m
less than the previous year increase.
Turnover
Profit before tax
Wages
Debt
£12,000k
£10,000k
£8,000k
£6,000k
£4,000k
£2,000k
£0k
(£2,000k)
(£4,000k)
2002/03
2003/04
2004/05
2005/06
2006/07
36
Celtic
Celtic’s financial performance over the
past five years has largely been driven
by success in European Competitions,
typified by an appearance in the UEFA
Cup final in 2002/03 and a last 16
spot in the 2006/07 UEFA Champions
League. Turnover rose to a new peak
in season 2006/07 of £75m principally
as a result of this run to the last 16 of
the Champions League, coupled with a
domestic double.
£80,000k
£70,000k
£60,000k
£50,000k
Celtic continues to manage the
wage bill effectively whilst enjoying
continued success on and off the
field. Profit before tax soared to £15m,
eclipsing the four previous periods
by some distance, with losses being
recorded in each of them. Not only
did Celtic post a £15m PBT, they also
managed to reduce net debt by £4.8m.
£40,000k
£30,000k
£20,000k
Turnover
Profit before tax
Wages
Debt
£10,000k
£0k
(£10000k)
2002/03
2003/04
2004/05
2005/06
2006/07
37
Dundee United
Dundee United have reduced their
total loss by £2.0m over the past five
years as a result of revenue growth,
particularly in the 2004/05 season
when the club experienced successful
runs in domestic cup competitions.
Wage costs have remained relatively
stable over the period, although
they have reduced by £1m since the
2003/04 season.
Debt levels have remained fairly
constant over the past four seasons.
However, the continued reduction in
losses has allowed Dundee United
to reduce the net debt in 2006/07,
by £0.4m.
£8,000k
£7,000k
£6,000k
£5,000k
£4,000k
£3,000k
£2,000k
Turnover
Profit before tax
Wages
Debt
£1,000k
£0k
(£1,000k)
(£2,000k)
(£3,000k)
2002/03
2003/04
2004/05
2005/06
2006/07
38
Dunfermline
Dunfermline suffered a season
indicative of a team that was battling
relegation. Turnover increased by
£2.2m, principally as a result of a
run to the Scottish Cup Final and
the additional revenues associated
with that success. However, wages
doubled from the previous year as a
result of adding players in an attempt
to beat the drop, as well as a serious
injury crisis. However, while the wage
rise eradicated a significant majority of
the increased turnover, a PBT of £0.3m
was still reported.
£15,000k
£12,000k
£9,000k
£6,000k
Net debt rose by £1.1m in the 2006/07
season, with the reasons for this
being consistent with the those noted
in explaining the increased wage
expenditure – spending in the January
transfer window and a crippling
injury list.
£3,000k
£0k
Turnover
Profit before tax
Wages
Debt
(£3000k)
(£6000k)
2002/03
2003/04
2004/05
2005/06
2006/07
39
Falkirk
Falkirk’s promotion to the SPL in
season 2005/06 helped to produce
the most successful set of financial
results the club had enjoyed for several
seasons. While PBT fell in 2006/07,
principally as a result of a £0.7m
increase in wages, a profit was still
posted as a result of a 21% increase
in turnover. Falkirk also have no
exposure with respect to the increasing
cost of debt financing due to them
being in a positive cash position (£1m
at the end of 2006/07), as opposed to
a net debt position. This was achieved
through the sale of their old Brockville
stadium to a supermarket chain over 5
years ago.
£4,000k
Turnover
Profit before tax
Wages
Debt
£1,000k
£3,500k
£3,000k
£2,500k
£2,000k
£1,500k
£500k
£0k
(£500k)
(£1000k)
2002/03
2003/04
2004/05
2005/06
2006/07
40
Hearts
£40,000k
The financial effects of the take‑over
of Hearts by Vladimir Romanov was
revealed in the 2005/06 financial
results. The most significant impact
was the considerable increase in
wages. In the years previous to the
Romanov takeover, wages remained
around the £5m mark, however, they
more than doubled in the 2005/06
season. This trend continued in
2006/07 with wages totalling £12.5m
and more worryingly for Hearts,
exceeding the club’s turnover. This is
wholly unsustainable and with wages
only being one cost component of
running a club, the record £12.9m
loss Hearts suffered in the year was a
highly unsatisfactory bottom line. Debt
levels again continued to rise, with
an additional £9.2m of debt financing
utilised in the period, taking total debt
to £37.6m, £11.9m greater than the
combine debt of Celtic and Rangers.
£35,000k
£30,000k
£25,000k
£20,000k
£15,000k
£10,000k
£5,000k
£0k
Turnover
Profit before tax
Wages
Debt
(£5000k)
(£10000k)
(£15000k)
2002/03
2003/04
2004/05
2005/06
2006/07
41
Hibernian
Over the past five years, Hibs have
seen wage costs remain relatively
constant, never deviating greatly
from the £4m mark. By contrast,
PBT has strengthened year on year
from 2003/04, culminating in a £7.4m
profit being recognised in 2006/07.
This can principally be attributed to
the big money sales of Scott Brown
(to Celtic) and Kevin Thomson (to
Rangers), as well as the increased
revenues associated with a run to
the CIS Insurance cup final. Debt
levels have fallen since the peak of
£14.5m in 2002/03 after the write off of
connected party debt, with numerous
gains on player transfers being utilised
in reducing debt to its current 2006/07
level of £2.9m.
Turnover
Profit before tax
Wages
Debt
£15,000k
£12,000k
£9,000k
£6,000k
£3,000k
£0k
(£3000k)
2002/03
2003/04
2004/05
2005/06
2006/07
42
Inverness
Caledonian Thistle
Promotion to the SPL in season
2004/05 had the most significant
impact on Inverness Caledonian
Thistle’s results in the past five years,
with turnover more than doubling to
£2.7m as a result. Wage costs have
also risen over the years but remain
one of the smallest wages bill in the
SPL. The club has operated in recent
years with no net debt as management
run the club on a prudent basis. At the
end of 2006/07, ICT were in a net cash
position of £0.4m.
£3,000k
£2,500k
£2,000k
£1,500k
As the club filed abbreviated accounts
in 2006/07, no current year details on
turnover or wages was available.
£1,000k
Turnover
Profit before tax
Wages
Debt
£500k
£0k
(£500k)
2002/03
2003/04
2004/05
2005/06
2006/07
43
Kilmarnock
Losses have reduced gradually over
the past five years at Kilmarnock, with
£0.1m profits being posted in both
the 05/06 and 06/07 seasons. This
is principally due to steady increases
in turnover as a result of increased
match day revenues and a trip to the
CIS Insurance Cup Final, as well as
the careful management of wages
expenditure. Debt levels however
remain high, although having peaked at
£13m in 2004/05, debt has decreased
by £1.4m in the past 2 years.
Turnover
Profit before tax
Wages
Debt
£15000k
£12000k
£9000k
£6000k
£3000k
£0k
£-3000k
2002/03
2003/04
2004/05
2005/06
2006/07
44
Motherwell
Motherwell was the first club in the
SPL to be placed into administration
after debt levels peaked at £9m in
2002/03. As a result of the process,
debt levels fell by c£8m as club owner,
John Boyle wrote off the majority of
the liability. Post‑administration results
continue to show steady wages and
turnover which in turn has kept debt
levels below the £1m mark.
£10,000k
£8,000k
£6,000k
Turnover
Profit before tax
Wages
Debt
£4,000k
£2,000k
£0k
(£2000k)
2002/03
2003/04
2004/05
2005/06
2006/07
45
Rangers
Rangers have undergone the most
significant financial restructuring of
all the SPL clubs after reducing net
debt levels by £68m in recent years.
In 2003/04, Rangers net debt was
£73.9m however the combination of a
£52m rights issue and £18m upfront
payment from the JJB Licensing
Agreement deal has heavily impacted
the current net debt level of £16.5m.
While the Ibrox side broke through the
£60m turnover barrier in 2005/06, a
drop in sponsorship and advertising
revenue of £8.2m in the current year
as a result of no UEFA Champions
League football, as well as early exits
in both domestic cup competitions
meant that turnover fell by £19.4m.
Wages continued to fall however, with
a £10.7m drop being evidenced in the
past five years.
The profit generated in 2004/05 was
due to the release of negative good
will and not trading related. Rangers
endured a £6.3m loss in the current
year as a result of a disappointing
season on the field, no Champions
League football and the increased
costs associated with servicing the
increased debt.
£80000k
£70000k
£60000k
£50000k
£40000k
£30000k
£20000k
£10000k
£0k
£-10000k
£-20000k
£-30000k
2002/03
2003/04
2004/05
2005/06
2006/07
Turnover
Profit before tax
Wages
Debt
46
St. Mirren
St. Mirren reaped the benefits of a
return to the SPL, with an improvement
in both their net debt position, as well
as their profit for the period. Turnover
increased by 74% in the period and
together with the management of
wage and other costs associated
with a return to the Premier League,
St. Mirren posted a £0.3m profit before
tax. SPL survival was ensured and the
club’s net debt position was reduced
from £1.8m to £1.4m, in what must be
classed as a successful season for the
Love Street outfit.
£3,000k
£2,500k
£2,000k
£1,500k
Turnover
Turnover
Profit
Profit
before
before
tax tax
Wages
Wages
Debt
Debt
£1,000k
£500k
£0k
(£500k)
2002/03
2003/04
2004/05
2005/06
2006/07
47
Post balance
sheet events.
Celtic
Unaudited interim results released by Celtic
for the period ended 31 December 2007 highlight:
• Turnover decreased by 9.3%, to £42.4m,
from the corresponding period a year ago.
• Profit before tax decreased to £10.1m, a fall of 43.9% from
the £17.9m reported at the same stage in the previous year.
• Net debt decreased from £9.2m at 30 June 2007
to £6.8m at 31 December 2007, a decrease of 26%.
The dip in turnover and profit before tax can principally be attributed to the
following factors; two fewer home games were played at Celtic Park in the
period, giving rise to less revenues from ticket sales and match day commercial
revenues, while Celtic and Rangers’ dual participation in the UEFA Champions
League constitutes the sharing of certain multimedia and commercial revenues.
In the corresponding period, Celtic were the sole Scottish representatives in the
Champions League.
48
Rangers
Unaudited interim results released by Rangers
for the period ended 31 December 2007 highlight:
• Turnover increased by 43%, to £33.1m,
from the corresponding period a year ago.
• Profit before tax increased to £2.3m, from a loss making position
of £1.5m, as reported at the same stage in the previous year.
• Rangers do not prepare a Consolidated Balance Sheet in releasing
their interim results, thus, no comment can be made with respect to
their latest net debt position.
Rangers’ improvement in financial performance is primarily due to the UEFA
Champions League performance, associated market pool income and the
positive impact on ticketing and hospitality sales. An increase in operating
costs, as a result of expenditure on the playing staff, tempered the 43% increase
in turnover; however, a profit was still reported as opposed to a loss in the
corresponding period a year ago.
49
Appendices
50
51
Appendix one.
The season that
was 2006/07
Bank of Scotland Scottish Premier League
Winners: Celtic
Runners‑up:Rangers
On April 22 2007, Celtic beat Kilmarnock 2‑1 to win the title for the second
season running with a last‑minute winner from Shunsuke Nakamura. This
secured a consecutive title for Celtic in a season which they dominated from the
outset. Aberdeen and Rangers battled it out for second place, with the departure
of Paul Le Guen and arrival of Walter Smith acting as the catalyst for Rangers to
secure the lucrative second Champions League spot, with Aberdeen settling for
UEFA Cup qualification.
At the other end of the table, Dunfermline Athletic ended their seven year stay
in the SPL, going down in a dramatic final day. A point behind St. Mirren going
into the final round of fixtures, a Jim McIntyre goal put the Pars 1‑0 up after 37
minutes of their encounter with Caley Thistle at the Tulloch Caledonian Stadium.
With St. Mirren trailing 2‑0 to Motherwell at one point, Dunfermline looked
destined to beat the drop. However, three unanswered goals from Motherwell,
coupled with two late Caley goals, consigned Dunfermline to the Scottish
Football League.
Tennents Scottish Cup
Winners: Celtic
Runners‑up:Dunfermline
In a repeat of the 2005/06 seasons CIS Insurance Cup final, league champions
Celtic met the already relegated Dunfermline Athletic, in the Hampden season
finale. In a far tighter contest than many predicted, it took an 84th minute strike
from Celtic’s Cameroonian left‑back, Jean‑Joël Perrier‑Doumbé, to break the
deadlock. Dunfermline were unable to respond and Celtic went on to complete
their 34th Scottish Cup victory.
CIS Insurance Cup
Winners: Hibernian
Runners‑up:Kilmarnock
With both sides of the Old Firm falling at the quarter final stage, the 2006/07 CIS
Insurance Cup presented a great opportunity to four semi finalists; Kilmarnock,
Falkirk, St. Johnstone and Hibernian, to collect some silverware. It was
Kilmarnock and Hibernian that triumphed in their respective semi‑finals, with
Hibernian and their new manager John Collins, who went onto dominate their
Ayrshire opponents in the final, running out 5‑1 victors, with goals from Rob
Jones, Abdessalam Benjelloun (2) and Steven Fletcher (2). This was the Easter
Road men’s 9th major Scottish Honour.
19th Annual Scottish Premier League Report
52
European Qualification
Champions League: Celtic, Rangers
UEFA Cup: Aberdeen, Dunfermline
Scottish Football Writer’s Association Player of the Year 2007:
Shunsuke Nakamura (Celtic)
Scottish Football Writer’s Association Young Player of the Year 2007:
Scott Brown (Hibernian)
Scottish Professional Footballers Association Player of the Year 2007:
Shunsuke Nakamura (Celtic)
Scottish Professional Footballers Association Young Player of the Year 2007:
Steven Naismith (Kilmarnock)
53
Appendix one.
The season that
was 2006/07
European Competitions
Thanks to an increasing UEFA coefficient, Celtic were afforded the luxury of direct
entry into the lucrative UEFA Champions League group stages, where they were
drawn with Danish outfit FC Copenhagen, Portuguese heavyweights Benfica and
Sir Alex Ferguson’s Manchester United. It was Celtic’s imperious home form that
ensured they would emulate great rivals Rangers’ achievement in the previous
season, and reach the competition’s last 16 for the first time in its revised format.
The highlight of this being a trademark Shunsuke Nakamura free‑kick, which
secured a 1‑0 victory against a star studded Manchester United side in the
penultimate round robin match. Italian giants AC Milan were next up for Celtic,
and after a closely contested 0‑0 draw at Celtic Park in the first leg, it took a extra
time goal from World Footballer of the Year, Kaka, to end Celtic’s Champions
League challenge against a team that would go on to be crowned champions.
After splitting the Old Firm during the 2005/06 league season, Hearts’ reward
was entry into the 2nd Qualifying Round of the European Champions League.
Murrayfield, the 67,000 capacity home of Scottish rugby, was selected as the
venue for Hearts’ home games in this competition, rather than their traditional
home ground, Tynecastle. A combination of Tynecastle falling short of UEFA
requirements in terms of pitch size and hospitality facilities, and Murrayfield's
greater capacity, meant that Murrayfield was the preferred choice for the
Tynecastle board. Having successfully defeated Bosnian champions Široki Brijeg
3‑0 on aggregate, in their 2nd round qualifying tie, Hearts were drawn against
Greek side AEK Athens in the final qualifying round. The Greek side won 2‑1 at
Murrayfield thanks to two late goals and then went on to win 3‑0 in the Athens
Olympic Stadium. Indiscipline cost Hearts dearly in this tie, with one player
(Bruno Aguiar) sent off in the first leg and two players (Julien Brellier and Neil
McCann) sent off in the second leg.
Despite a stuttering start to the domestic season, Rangers started their 2006/07
UEFA Cup campaign in an exceptionally strong fashion. Norwegian cup holders
Molde were disposed of in the 1st round, before topping a round‑robin group
that included Livorno (Italy), Auxerre (France), Partizan Belgrade (Serbia) and
Maccabi Haifa (Israel). More Israeli opposition followed in the last 32, with the
Ibrox men disposing of Hapoel Tel‑Aviv 5‑2 on aggregate, setting up a clash with
Spanish outfit, Osasuna. A hard‑fought 1‑1 draw at home, left Rangers needing
a goal in Pamplona to stand any chance of progressing. The Osasuna defence,
marshalled by ‘soon‑to‑be Rangers stopper’ Carlos Cuellar, proved impenetrable
and a further Osasuna goal meant that the Ibrox men exited the UEFA Cup at the
last 16 stage.
54
Changes in Management
Frenchman Paul Le Guen was the highest profile
managerial casualty in 2006/07. Arriving at Ibrox with
a reputation as one of Europe’s top coaches, Le Guen
left with the unenviable record of being the club's
shortest‑serving manager, and the only one to leave
the club without completing a full season in charge.
With Rangers languishing in the league and out of both
domestic cup’s (the Scottish Cup departure suffered
at the hands of Dunfermline Athletic under caretaker
manager Ian Durrant), Rangers chairman turned to a
trusted and respected Rangers legend to restore pride
at Ibrox. Walter Smith, who in the 90s led Rangers to
nine league titles in a row, was installed as Rangers
manager on January 10th 2007, in the process leaving
his highly successful tenure, as manager of Scotland.
A 5‑1 Defeat to Falkirk, on 29th October 2006, signaled
the end of Craig Brewster’s tenure as Dundee United
manager. Terrors chairman Eddie Thompson moved
swiftly in replacing Brewster, appointing former Hearts
and Leicester City manager Craig Levein to the role,
who at the time was enjoying a successful spell
managing 2nd division Raith Rovers. This change
proved highly successful, with Levein rejuvenating
the Tannadice men, steering them to safety and a
respectable 9th place finish.
Dunfermline Athletic’s poor start to the season, three
wins in the club’s first 13 matches, was the catalyst for
Pars chairman John Yorkston to persuade club legend
Jim Leishman to relinquish his handling of team affairs
and return to his post as General Manager. In his place
arrived Stephen Kenny, who moved from his role as
manager of Eircom League (Irish football’s top flight)
outfit Derry City. Kenny had a difficult start to life at
East End Park, with many questioning his appointment
after a run of nine games without victory. However, this
pressure abated after Dunfermline recorded a 3‑2 home
Scottish Cup 3rd Round victory over a manager‑less
Rangers outfit.
The Hibs hot‑seat also changed hands throughout the
season, with the difference being that Tony Mowbray’s
departure from Easter Road was due to success as
opposed to failure. Following a string of fine performances,
the nurturing of several talented youngsters, shrewd
buys and a brand of football that thrilled the Leith faithful,
Mowbray was soon the target for several cash rich English
outfits. English Championship side West Bromwich Albion
tempted Mowbray back to his native England on 13th
October 2006. Former Hibs and Scotland internationalist,
John Collins, was appointed in his place and steered the
Hibees to the CIS Insurance Cup final, where they put on a
tremendous display in disposing of Kilmarnock by 5 goals
to 1.
Like their city neighbours and fiercest rivals, Hibs, Hearts
also underwent a season of managerial change, although on
an altogether greater scale. The season started with Valdas
Ivanauskas at the helm after he had successfully steered
Hearts to Scottish Cup glory in his caretaker capacity, the
previous season. Ivanauskas remained in official charge
until February 2007, having spent a couple of the couple
of weeks away from Tynecastle, suffering from illness. He
was officially replaced by the Russian, Anatoly Korobochka,
who remained in charge of team affairs until the end of the
season. This turbulent season resulted in Hearts finishing in
4th spot, missing out on European qualification.
55
Appendix two.
What the
Chairmen thought
Aberdeen: Stewart Milne CBE, Chairman
“The period covered in this report has been one in which the club achieved its
highest league position since the club became a plc back in 1994 and was just
reward for the hard work that has gone on both on and off the park over the
previous three seasons.”
“… This achievement in no small measure has been brought about by a period of
real stability at the Club which has enabled us to look ahead instead of dealing
with short term issues that distract from the wider picture.”
Celtic: Brian Quinn CBE, Chairman
“Spreading the Celtic brand continues to be a high business priority. The new
TV contract in England makes it even less likely that change will take place
in the structure of football there, and the fact that all but the top half a dozen
FAPL sides may find themselves facing the possibility of relegation in any given
year, with all that that entails in terms of foregone revenue, means that the great
majority of teams in the FAPL would oppose, even more than previously, any
move to admit Scottish teams. We believe that it is our responsibility to explore
whether such a change is possible, but we accept the position as we now find
it and have turned out attention increasingly to other options in looking to the
longer term.”
Dunfermline: John Yorkston, Chairman
“The financial results for the period reflect the increased playing squad that was
required to compensate for a period of horrendous injuries and our attempt to
avoid relegation by bringing in a number of loan players. The Club also created
a new position of Director of Football and obtained a new Football manager with
additional management staff. Reaching the Scottish Cup Final helped to offset
this additional expenditure.”
Dundee United: Eddie Thomson OBE, Director
“The priority is to continue to reduce operating losses through the development
of a cost structure aligned to the revenue base… The principal risks and
uncertainties facing the club surround the performance and results of the first
team, which has a direct impact on revenues and financial performance.”
56
Falkirk: Campbell Christie CBE, Chairman
“Our Balance Sheet remains strong with no bank debt. As a result of our profits
over the last two years we have generated cash reserves, a position the Board
believes to be essential given the uncertainties in football.”
Hearts: S Fedotovas, Director
“The Board believes that the current levels of debt are manageable and will
be reduced as the club moves towards profitability. Future revenues will be
generated through increased participation in European competition, larger
attendance in a redeveloped Tynecastle Stadium and an associated greater
sponsorship and retail income… The Board is also working towards a more
appropriate ‘salary to turnover’ ratio with the full effect of some of the club’s top
earning players not being felt until the next set of financial results.”
Kilmarnock: Michael Johnson, Chairman
“Debt reduction remains my short term goal but this objective will be tempered
by my desire – which I share with Jim, Billy and the supporters – to provide
entertainment and a measure of success on the pitch in keeping with the
traditions of our great Club.”
‘...a period of real
stability at the
Club which has
enabled us to look
ahead instead of
dealing with short
term issues that
distract from the
wider picture.’
Rangers: Sir David Murray, Chairman
“The decision on the proposed supercasino was disappointing however it is still
our intention to create value from the area surrounding the stadium to help bridge
the financial gulf that currently exists between ourselves and European leagues.
Discussions are ongoing with Glasgow City Council to combine the brand
strength of the Club and our strategic land holdings to help create sustainable
community development, and in doing so generate income for the Club.”
St Mirren: Stewart Gilmour, Chairman
“The deal to sell the ground to Tesco and build a new stadium has been finalised
and all conditions of the contract have been met to date… The club is now
operating without bank borrowings and has repaid most of our outstanding debt,
which in turn reduces the costs to the club and this in turn allows us to have an
increased budget for players.”
Stewart Milne CBE,
Chairman, Aberdeen.
57
Appendix three.
Significant
Transfer Activity
Player
Date
Jiri Jarosik
Jérémy Clément
Filip Sebo
Karl Svensson Lee Naylor
Thomas Gravesen
Saša Papac
Rudolf Skácel Fernando Ricksen
Stilian Petrov Kevin Thomson
Jan Vennegoor of Hesselink
Stephen Pearson Shaun Maloney
Scott Brown
June 19, 2006
July 7, 2006
August 3, 2006
May 26, 2006 August 24, 2006
August 30, 2006
August 31, 2006
July 29, 2006
November 28, 2006
August 30, 2006
January 30, 2007
August 24, 2006
January 11, 2007
January 31, 2007
May 16, 2007
58
From
To
£
Chelsea
Olympique Lyonnais
Austria Wien
IFK Goteborg
Wolverhampton Wanderers
Real Madrid
Austria Wien
Hearts
Rangers
Celtic
Hibernian
PSV Eindhoven
Celtic
Celtic
Hibernian
Celtic
Rangers
Rangers
Rangers
Celtic
Celtic
Rangers
Southampton
Zenit Saint Petersburg
Aston Villa
Rangers
Celtic
Derby County
Aston Villa
Celtic
£2m
£1.1m
£1.8m
£600,000
£600,000
£2m
£450,000
£1.6m
£1m
£6.5m
£2m
£3.4m
£750,000
£1m
£4.5m
59
Appendix four.
The National Team
Date
Venue
Opponents
September 2
September 6
October 7
October 11
March 24
March 28
May 30
June 6
August 22
September 8
September 12
October 13
October 17
November 17
Celtic Park, Glasgow (H)
S Dariaus ir S.Gireno SC, Kaunas (A)
Hampden Park, Glasgow (H)
Olympic Stadium, Kiev (A)
Stadio San Nicola, Bari (A)
Gerhard Hanappi Stadium, Vienna (A)
Svangaskard Stadium, Toftir (A)
Pittodrie Stadium, Aberdeen (H)
Parc des Princes[5], Paris (A)
Boris Paichadze Stadium, Tbilisi (A)
Faroe Islands
Lithuania
France
Ukraine
Georgia
Italy
Austria
Faroe Islands
South Africa
Lithuania
France
Ukraine
Georgia
Italy
1. Scotland score shown first
The European Championship qualification started positively for the Scots with
three straight wins including a 1‑0 victory over France at Hampden courtesy of
a Gary Caldwell goal. With Scotland still leading the qualification group Walter
Smith then left the national side in early 2007 to return to Rangers and with
previous Rangers manager Alex McLeish being named as his successor and
Scotland's twentieth manager. McLeish's first match in charge was against
Georgia which the Scots won 2–1, making McLeish only the third Scotland
manager to win his first match in charge. Following this defeat to the Italian’s in
Bari, McLeish then guided Scotland to wins against the Faroe Islands, Lithuania,
France and the Ukraine. However their qualification campaign ultimately ended in
disappointment with defeats to both Georgia and Italy when a win in either match
would have been enough to secure qualification.
60
Score1
Competition
6–0
2–1
1–0
0–2
2–1
0–2
1–0
2–0
1–0
3–1
1–0
3–1
0–2
1–2
ECQ(B)
ECQ(B)
ECQ(B)
ECQ(B)
ECQ(B)
ECQ(B)
F
ECQ(B)
F
ECQ(B)
ECQ(B)
ECQ(B)
ECQ(B)
ECQ(B)
Scotland scorer(s)
Darren Fletcher, James McFadden, Kris Boyd (2, 1 pen.), Kenny Miller (pen.),Garry O’Connor
Christian Dailly, Kenny Miller
Gary Caldwell
Kris Boyd, Craig Beattie
Garry O’Connor
Shaun Maloney, Garry O’Connor
Kris Boyd
Kris Boyd, Stephen McManus, James McFadden
James McFadden
Kenny Miller, Lee McCulloch, James McFadden
Barry Ferguson
UEFA Euro 2008 qualifying Group B
Team
Italy
France
Scotland
Ukraine
Lithuania
Georgia
Faroe Islands
Pts
29
26
24
17
16
10
0
Pld
12
12
12
12
12
12
12
W
9
8
8
5
5
3
0
D
2
2
0
2
1
1
0
L
1
2
4
5
6
8
12
GF
22
25
21
18
11
16
4
GA
9
5
12
16
13
19
43
GD
+13
+20
+9
+2
‑2
‑3
‑39
61
For more information on the PricewaterhouseCoopers Annual Scottish Premier
League Report, or to request a hard copy, please contact Mark Rennie on
[email protected]
This article has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You
should not act upon the information contained in this article without obtaining specific professional advice. No representation or
warranty (express or implied) is given as to the accuracy or completeness of the information contained in this article, and, to the
extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents accept no liability, and disclaim all
responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this
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pwc.co.uk/scotland

19th annual financial review of Scottish football

Transcription

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