Scottish soccer’s losing streak could be at end, says report

THE financial health of Scottish premier league clubs was showing signs of improvement after losses and debt soared in the 2001/2002 season, accountants PricewaterhouseCoopers said yesterday.

Losses across the 12 clubs rose to £60 million (€86.6m) while debts increased to £144m (€208m) from £132m (€190m) the previous year, PWC revealed in their annual financial review of Scottish football.

"It's been another terrible year for the clubs financially, though the chairmen and chief executives are now seeking to address the situation and attempting to stem the loss of revenue," said PWC partner David Glen, author of the report. "Further analysis since the end of the 2001/2002 season shows that the SPL clubs' losses (excluding the Old Firm) are finally beginning to plateau with squads and wages being cut.

"This remedial action should allow the clubs to break even and halt further dramatic increases in debt but this won't necessarily enable the clubs to repay the debt already accumulated. Our financial 'patient' remains in intensive care but signs are emerging of an improvement in its health," he said.

The total wage bill hit a new high of £113m (€163m) with three clubs, Dundee, Dunfermline and St Johnstone, spending more on wages than income. The Old Firm Rangers and Celtic dominated the SPL's losses, with Rangers £35m (€50m) in the red in 2001/2002.

Celtic said in August that their losses last year rose almost fourfold to £11.7m following an early exit from the Champions League, while their debt also increased slightly to £17.8m.

The SPL report compares with consultants Deloitte and Touche's financial review of the English league for the same season.

In that review Deloitte and Touche said they believed that history would show the 2001/2002 and the 2002/2003 seasons in England had been "a watershed in some fundamental aspects of football finances...and much long-term good should come of that".