Dundee United chairman Stephen Thompson has declared himself satisfied with the way the club have combined finance with football.
The Tangerines supremo unveiled the latest set of accounts to June 2011, which revealed a loss for the year of £523,000 caused primarily by an £844,000 reduction in turnover.
However the figures do not include the £2.8 million windfall received for the sale of David Goodwillie to Blackburn Rovers in August, nor the £300,000 compensation package they will get for Scott Allan’s switch to West Bromwich Allan, which was completed on Monday night.
That cash will help United reduce their term loan to bankers HBOS to £3.8 million. It stood at over £6 million just four years ago.
There is also the £1 million overdraft facility, which is not viewed as long-term debt, while directors’ soft loans remain at £435,000.
Thompson was obviously not pleased to be reporting a half-million-pound loss for the year the accounts cover and the figures contrast with a £65,000 profit for the 12 months to June 2010 the period enveloping their Scottish Cup victory and third-place finish.
There has also been a decrease in season ticket income of 18%, only highlighting the hardships faced by even clubs of United’s size and stature in this age of austerity for Scottish football.
However, there is satisfaction at Tannadice that they have significantly reduced their debt while at the same time maintained a good standard of play on the park.
”I am more upbeat now about the club than I was even a couple of years ago because we are getting there regarding the finances,” said Thompson. ”Of course I would have preferred to make a £500,000 profit rather than a loss but I would emphasise that these accounts are historical with regard to the financial situation at the club, being up to June of last year.
”The Goodwillie deal was done after that period and there is no doubt that it was one of the best deals done for a long time. Other people in the SPL tell me that, so we did well.
”The bank wanted us to accept £1.2 million for him and I said no because I thought we could get more for him and we did. I had to stand up against them and that was hard to do.
”It has made a big, big difference to the financial stability of the club. We had a bit of a ding-dong with the bank at the time (the money came in from Blackburn) but we reached a common sense solution, which is all I was really looking for.”
Continued…
”We took some of the money for working capital but the vast majority of it went to debt reduction. We also have the money for Scott Allan, which is not huge but it all helps.
”So we have taken in substantial sums and there are also add-ons that could mean more is to follow.”
Thompson added: “If you look back four years, we were sitting at £6 million of long-term debt. We have now gone from that to £3.8 million. That is a reduction of a third while, at the same time, we have managed to keep a competitive team on the park.
”We have coped with losing our best player I think we would all accept David was that and a number of others who played in the Scottish Cup-winning side have gone too. We have coped, and I take a great deal of satisfaction from that.
”You have to remember where the club was before Craig Levein took over as manager. Apart from one season, we were fighting relegation most of the time. Hopefully those days are gone but we should look at where we are now compared to where we were not too long ago.”
Thompson is excited at the quality of the young players in manager Peter Houston’s squad but admitted they will go the way of Goodwillie and Allan if the price is right.
”We have a lot of young talent, with the likes of Stuart Armstrong, Johnny Russell, Gary Mackay-Steven, Ryan Dow and Gavin Gunning to name but a few,” he said. ”It is just trying to hold on to them that’s the hard part.
“Getting a good few years out of them then selling them on is just what happens.”
The Tannadice chief revealed he and Houston are working more closely together than they have ever done. That means something good has come out of the period last autumn when it was reported the manager’s job was under threat.
”Everything that happened back in October in relation to the manager we have a far more open and better relationship now than we ever had,” said Thompson. ”We don’t always see eye to eye but that’s understandable.
“We have all been at board meetings and we all know what we want to try to achieve. He will get as much support as we can give him but, at the same time, I have to get this club going in the right direction financially.
”We also have a few things that we are looking into and planning ahead. We have agreed a budget for next season, Peter and I, and that will only change if there is some success (on the park) this year.
“It is tough going forward but we are working together.”
”We took some of the money for working capital but the vast majority of it went to debt reduction. We also have the money for Scott Allan, which is not huge but it all helps.
”So we have taken in substantial sums and there are also add-ons that could mean more is to follow.”
Thompson added: “If you look back four years, we were sitting at £6 million of long-term debt. We have now gone from that to £3.8 million. That is a reduction of a third while, at the same time, we have managed to keep a competitive team on the park.
”We have coped with losing our best player I think we would all accept David was that and a number of others who played in the Scottish Cup-winning side have gone too. We have coped, and I take a great deal of satisfaction from that.
”You have to remember where the club was before Craig Levein took over as manager. Apart from one season, we were fighting relegation most of the time. Hopefully those days are gone but we should look at where we are now compared to where we were not too long ago.”
Thompson is excited at the quality of the young players in manager Peter Houston’s squad but admitted they will go the way of Goodwillie and Allan if the price is right.
”We have a lot of young talent, with the likes of Stuart Armstrong, Johnny Russell, Gary Mackay-Steven, Ryan Dow and Gavin Gunning to name but a few,” he said. ”It is just trying to hold on to them that’s the hard part.
“Getting a good few years out of them then selling them on is just what happens.”
The Tannadice chief revealed he and Houston are working more closely together than they have ever done. That means something good has come out of the period last autumn when it was reported the manager’s job was under threat.
”Everything that happened back in October in relation to the manager we have a far more open and better relationship now than we ever had,” said Thompson. ”We don’t always see eye to eye but that’s understandable.
“We have all been at board meetings and we all know what we want to try to achieve. He will get as much support as we can give him but, at the same time, I have to get this club going in the right direction financially.
”We also have a few things that we are looking into and planning ahead. We have agreed a budget for next season, Peter and I, and that will only change if there is some success (on the park) this year.
“It is tough going forward but we are working together.”