Aberdeen FC’s turnover jumped almost £8million in their accounts for the year to June 30, hitting a record £23.6m – with chairman Dave Cormack saying it shows the Dons are “making strides” towards “growth and football success through financial sustainability”.
Earnings before interest, tax, depreciation and amortisation at Pittodrie were a positive £847,000 in their 12-month accounts.
But the “cyclical nature of player trading” – an approach where clubs unearth and speculate on talent, paying more in transfer fees and wages, in the hope they can develop those players, reap the benefits on the pitch and then sell them for a profit – was the key factor in the Granite City outfit reporting a “modest” overall net loss for the year of £880,000.
This follows a £1.1m net profit in Aberdeen’s previous annual accounts.
The Reds’ income from player sales dropped by £6.1m – from £7.4m to £1.3m – year-on-year.
Their latest accounts reflect the £1.1m departure of midfielder Ylber Ramadani for Italian Serie A side Lecce in August 2023, as well as academy youngster Lewis Pirie’s £200,000 switch to Leeds United.
However, the record transfer of North Macedonian striker Bojan Miovski to Spanish side Girona – a deal worth up to £9m to Aberdeen – was not done until August this year, so does not feature.
Europa Conference League bonanza helps Aberdeen wages-to-turnover percentage
The impressive £23.6m turnover figure in Aberdeen’s latest accounts is a 49% increase on the £15.8m turnover over the previous 12 months.
This boost in turnover was “largely due” to last term’s lucrative Europa Conference League group campaign – the prize money and other revenues accrued from it – as well as the Reds playing at Hampden three times across the semi-finals and final of the League Cup and semi-final of the Scottish Cup.
Commercial and retail incomes at Aberdeen also grew by 13% to a record £7m.
The lift in turnover means the Dons wages-to-turnover ratio was down from a reasonably-high 76% in their last accounts to a healthier-looking 54% this time around – and, notably, comfortably below European football governing body Uefa’s recommended upper limit for clubs of 70%.
Cormack: Aberdeen have ‘positive’ player sales ‘momentum’ – but Miovski money ‘real gains’ too late for latest accounts
Chairman Cormack – in a statement to shareholders – labelled Aberdeen’s latest accounts “robust”.
He said: “While the increase in turnover is largely due to European group stage football, together with domestic cup runs, it has been bolstered by significant increases in retail and commercial income streams.
“A key criteria of a well-run, financially sustainable club is the wages to turnover ratio, and, during this period, we are sitting at a very healthy 54%.
“Our player trading model where we need to carefully balance significant additional investment in football wages and transfer fees against income from player sales, continues to show positive momentum.
“But, due to the cyclical nature of player sales, the recent real gains will only be reflected in next year’s results.
“Commercial and retail income has grown thanks to the efforts of our driven, motivated commercial and retail teams and the support of our partners.”
On the commercial front, Cormack briefly turned away from the annual accounts up to June 30 to highlight Aberdeen’s last four home games all being sell-outs – “something never achieved before in our history!”
While crediting new Swedish boss Jimmy Thelin’s undefeated Premiership start – which has now stretched to 11 matches, including 10 victories – and the Dons’ attacking style this term, Cormack also pointed to “long-term investment in fan engagement and fan experience.”
He added: “Between the family section in the Upper Richard Donald Stand, the Red Shed, the colour from our stunning displays and our organised, pre-match pyrotechnics, the whole atmosphere has been lifted, turning Pittodrie into a true fortress.”
Aberdeen’s ‘laser focus’ on ‘how we develop first-team-ready players from the academy’ amid planned £22m investment
In Aberdeen’s annual report, it has also been revealed the paid AberDNA fan membership scheme – “where supporters generously contribute towards the club’s aim of being the best developer of young players in Scotland” – has grown from around 6,000 to more than 8,000 members since the start of the 2023/24 last season.
Last term, the Dons engaged German Bundesliga guru Bernhard Peters’ consultancy firm BPTC to review the transition of the Reds’ youth academy talents to the first-team, as well as the club’s external player recruitment and player trading operations.
In his statement to shareholders, Cormack said: “Each of these facets is interlinked and critical to the club delivering significant value on the pitch and securing income from player trading so we can reinvest.”
Cormack detailed how, over the coming decade, the Dons plan to invest £2.2m each year in their youth academy, from the under-18s team down.
The chairman added: “That’s £22m in today’s money over the next 10 years.
“Whilst winning both the Club Academy Scotland (CAS) Under-16 and Under-18 leagues last season demonstrates success, the key measure must be how many academy players make it to the first team.
“Our laser focus is now on how we develop first-team-ready players from the academy to deliver a return on our significant investment.”
Cormack also said Aberdeen retain the “aspiration” of transitioning their part-time women’s side to full-time professional status and “consistently striving” to finish in the top-six of the SWPL top-flight.
The Dons recently launched their girls’ academy – recruiting U13s, U15s and U17s teams.
Cormack says a full-time women’s and girls’ operation at Aberdeen would cost £1.5m per season, and thanked a host of sponsors for helping the Dons bridge Scottish women’s football’s “significant funding challenges”.
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