St Johnstone post £1.5m loss in annual accounts, with Steven MacLean operating under big budget cuts

St Johnstone have posted a loss of nearly £1.5 million – their biggest in the modern era of the football club.

The last financial year of former chairman Steve Brown’s reign proved to be by far the costliest off the pitch, the accounts for the 12 months up to May, 2023 have revealed.

And new CEO, Stan Harris, described the financial performance over the last year as “unenviable”, following on from a £1.2 million profit recorded the year before, warning there will be “no quick fix”.

It’s no secret that current first team manager, Steven MacLean, has been reshaping his squad while starting the significant budget-cutting process.

In the words of Harris, MacLean has been “stripping out to rebuild”.

In his statement to shareholders, the CEO said: “The financial challenge of running a Premiership football club from a provincial standpoint continues to be difficult.

“Season 2022/23 was no exception, with the expenditure outstripping income by a sizeable amount, creating an unenviable financial performance.

“The over budget investment in the first team did not transpire into the success the previous board expected.

“This financial performance necessitated having to make some heavy adjustments for season 2023/24 in terms of playing and administration resource.

“Basically, we had to strip out to rebuild.

“Contractual obligations and injuries tempered any further 2023/24 budget balancing decisions.

“That said, I fully understand that we need to continually strive to improve performances and the make-up of the team.

“To that end the manager will be fully supported and given a budget commensurate with our income but also allow him to strengthen the team.”

£2m operating loss

The underlying operating loss was an eye-watering £2 million, with the vast majority of that a consequence of football-related costs.

Around £4.5 million was spent on all associated activities.

“It is the board’s intention to reduce this spend substantially while also looking at alternative revenue generation,” said Harris. “However, this will not be a quick fix.

“Total losses were negated by cash injections taking full year operating losses (EBIT) to £1.67 million.”

A tax rebate took that figure down to £1.49 million.

The good news is that Saints still boast enviable cash reserves of £4.56 million.

Apology for Wotherspoon and O’Halloran

On football matters, Harris thanked MacLean’s predecessor, Callum Davidson, for his contribution to the club’s recent success and addressed the departures of three-time cup winners, David Wotherspoon and Michael O’Halloran.

“A number of prominent and well-loved players left the club at the end of the season,” he said.

“Murray Davidson decided to hang up his boots and retire.

“David Wotherspoon and Michael O’Halloran both left the club with our best wishes.

“These three players, along with many others, were instrumental in bringing unimaginable success to our football club and as such I cannot thank them enough for the service and silverware they brought to our club.

“Due to the late nature of Steven’s appointment some of these announcements were made after the last game of the season.

“I would have much preferred that David and Michael had the chance to say goodbye to the fans at the last game but this was not to be the case.

“I would like to offer apologies to them both for this unfortunate but unavoidable situation.

“David has been granted a testimonial to honour his long service to the club and I hope it turns out as successful as previous club legends have experienced.”

Recruitment and administration

Modernising the recruitment department will be a key priority over the next year.

Despite cost-cutting elsewhere, Harris will make sure expenditure rises in that area.

“Recruitment and administration has been a constant issue within our football department,” he said.

“This is an area of the business we will be working had to improve and further investment may be necessary.

“The biggest area in the modern game and an area that we are quickly catching up on is digital data and player analysis.

“As such, the club has set aside budget and will be investing further in this area. This will assist decision-making in the future.

“Widening contacts throughout the game will also be at the forefront of future recruitment.

“Data will not replace scouts and referrals but it will be able to enhance and clarify decision.”

Owner Geoff Brown put his 75% stake in Saints on the market towards the end of last year but a takeover is not imminent.

“While there have been interested parties, no offers have been made that would facilitate a sale,” Harris noted.