St Johnstone chairman Steve Brown has warned that more cuts could be on the cards after the Perth club posted a substantial financial loss for last season.
Saints enjoyed success on the pitch in the form of a third-placed finish in the SPL and a trip to Turkey in the Europa League but that has not translated into good fortune off it, according to the club’s annual accounts.
The McDiarmid Park outfit reported a loss of £192,767 for the year through to May 31, despite what Brown described as a “successful and exciting” 2012/13 campaign under previous boss Steve Lomas and assistant Tommy Wright.
And with the difficult financial climate continuing to hit football clubs hard, Saints chief Brown has urged the local community to get behind the club to help them reverse the current trend.
“Reduced income from football’s governing bodies, reduced TV income and an average crowd of 3,700 means that we simply cannot continue to outlay large salaries and bonuses to players where there is no income to meet these payments,” he said.
“Although we are addressing the need for increased income whilst reducing costs in all areas of our business, further work remains to be done.
“Despite the on-field success, we did not get more people through the turnstiles.
“The European adventure with Eskisehirspor, though great for the club and supporters alike, proved expensive and the impact of televising games, though producing welcome revenue, resulted in many matches being played outwith the traditional 3pm Saturday slot and this had a negative impact on both crowds and hospitality revenue.
“Profitable trading continues to be a challenge and once again it has eluded us this year.
“Despite the welcome contributions from a ready and loyal band of sponsors and supporters, the ongoing economic recession once more provided a negative impact.
“We are continually striving to ensure that the facilities and services provided at the ground are second to none.
“I would urge all shareholders, supporters and those in the business community to support the various aspects of our business.”
The 2012-13 financial loss comes on the back of a £233,000 loss the previous year and represents the fifth straight year that a loss has been reported.
Indeed, 2008 was the last time that a profit was noted in the annual accounts at McDiarmid Park, and six-figure losses have been realised in four out of the five years since.
So while the club still has more than £1 million tucked away in the bank, Brown has been disappointed to see resources depleted by annual losses and is determined to try to avoid a similar story this time next year.
The football budget has been cut in recent years and was again slashed at the start of this season, although Brown reckons the management duo of Lomas and Wright who subsequently took charge following Lomas’ move to Millwall in the summer deserve credit for the success they fostered at the club.
“Steve Lomas and Tommy Wright continued the good work which they had started following upon their appointment in the earlier part of the previous season and having qualified for Europe, the team acquitted itself well against a quality Turkish side with a footballing budget substantially higher than ours,” he said.
“The team fed off this success and not only finished in the top six once more, but finished third, their highest position since 1999, and qualified yet again for Europe.”
Noting that staying in Scotland’s top flight remains a “priority” for the Perth club, Brown also hailed the work of Alistair Stevenson in making a “solid start” to the task of bringing quality young players to McDiarmid Park.
Former hotel manager Chris Charalambous, the club’s chief executive, has been tasked with handling the non-football side of the business, with a particular remit to increase revenue while cutting costs.