Aberdeen have secured £2million of investment while players, coaching staff and manager Derek McInnes have agreed to partially defer wages and bonuses for four months.
The voluntary deferral of salaries, which started on April 1, and a further £2million of funding secured from investors will help the Dons close a £5million gap in cashflow as a result of Scottish football’s indefinite shutdown due to the coronavirus crisis.
The club’s higher paid non-football staff will also be taking partial salary deferrals with the measure set to improve the club’s cashflow by £1.1million.
Dons chairman Dave Cormack said: “The club has worked diligently to minimise the impact on its lower paid employees and we’re pleased to confirm that more than 50% of our hard working and loyal staff are unaffected by this deferral. The balance of employees have agreed to defer salaries by between 10% and 30%, plus certain bonuses, including football performance.”
Dons boss McInnes said: “It is incumbent on all of us to help the club through this challenging period.
“I want to thank the players, my coaching staff and all staff at the club for being so forthcoming and willing to do what is required to get us through these exceptional circumstances and for supporting our fans and the wider community.”
The Dons have set a target of reaching 10,000 season ticket sales for the 2020-21 and grow its AberDNA initiative to 7,000 members by July 31.
Cormack added: “I’m hugely encouraged on two counts. Firstly, by the response from our fans to our predicament when many are worried about their jobs and facing financial difficulties. Secondly, by the willingness of directors, management, players and staff across the club to pull together to see us through this, including deferring salary and bonus payments.
“Our investor group, including myself, who invested an additional £5million last December, has committed £2million more to the cause. We now need to focus our efforts on selling season tickets and AberDNA memberships to meet the remaining shortfall in cashflow.
“Season tickets will generate about £2million in cash, with AberDNA delivering net income of £600,000 over the next 12 months. Those fans who are able to support this effort in the coming weeks will be playing a huge part in helping us through this very testing time.”
Rewards and incentives for the Aberdeen supporters who are buying or have already bought season tickets, renewed or subscribed to AberDNA are being considered.
Cormack added: “We’re currently exploring how we can reward fans for their loyalty, in one-off and unique ways when football resumes, and we’ll be announcing these in due course.
“We announced earlier this week that the club’s investors will be making donations, equivalent to 10% of every season ticket sale, to the trust. If the club sells £2million in season tickets, then AFC Community Trust will receive £200,000, which will enable them to continue to carry out vital work with some of the most vulnerable in our communities. To improve the trust’s cash position immediately, the investors have already advanced a £100,000 donation.
“This win:win approach means that fans are making a contribution to both the trust and the club when they buy a season ticket.”