St Johnstone post losses

Aug 20 2010 by Gordon Bannerman, Perthshire Advertiser Friday

ST Johnstone bounced back into the SPL last season after a seven year gap.

And yesterday chairman Geoff Brown revealed the Perth club turned over £4 million but suffered a £60,000 loss along the way.

Shareholders will receive copies of the annual accounts today.

Mr Brown tells them: “Season 2009/10 was to prove successful in football terms with the club retaining its Scottish Premier League status with games to spare.

“It was my belief that the club would be ready for the challenges which awaited us in the SPL and I am delighted to report that we finished in a very respectable 8th position.

“In addition, we achieved a further semi-final place in the Co-operative Insurance Cup before losing to Rangers, the ultimate winners of the competition.

“Credit must once again go to our manager Derek McInnes, his assistant Tony Docherty and the players for providing everyone with such an enjoyable season.”

While sanctioning another recruit yesterday in Alan Maybury, Mr Brown told PA Sport: “No loss is ever acceptable. If you keep doing that the business will go bust. But a lot of things contributed to these results, particularly the postponement of games against Aberdeen, Hibs and Rangers.

“Aberdeen will probably bring around 2500 fans to Perth this weekend but for the re-arranged game late in the season they had just 500. That’s nearly £40,000 difference from one game.

“Injuries also led to the club carrying too big a pool of players last season. Numbers are never the answer. It’s about quality in your squad and hopefully we have got the balance right this season.”

Mr Brown warned that football was facing tough times in the current economic climate, although he stressed supporters had been “fantastic.”

But he observed: “The club remains in a positive financial position. That is very, very important. We are one of the few who don’t have to put business plans to the banks. We are masters of our own destiny. But we can’t afford to let our guard drop or we could land in the same predicament as others.”

Reflecting on the annual loss, he said: “Whilst our revenue has increased considerably due to our participation in the SPL, our overheads have also increased, with a significant increase in the investment in our football department.”

The club also invested in new floodlights to meet SPL demands and ongoing investment is required in the fabric at McDiarmid Park.

“We remain committed to increasing the utilisation of the facilities at McDiarmid Park but, as with many other companies, we were not immune to the economic climate of the country which resulted in a decrease in our turnover and profitability in this important area to the club. It is unlikely that the general income will improve in the near future but we must remain focused on improving both turnover and profitability in these difficult times.

“I remain positive regarding the immediate future of the club and Derek McInnes has again been provided with significant funding to strengthen his playing squad for the season ahead.

“I am under no illusions as to the challenges which will face the club, particularly from within the SPL, but I remain optimistic for the forthcoming season.”