The impact of the COVID-19 pandemic has increased losses at Aberdeen further as the club announce a £2.9m loss for the financial year ended 30 June 2020 and whilst this doesn’t cover the full period of the COVID-19 restrictions it is clear the club have some difficult decisions to take should the outlook not improve soon.
The annual accounts show a decrease in turnover of £1.59m from £15.928m to £14.335m with an operating loss of £2.92m compared to £1.03m the previous year. Wages rose from £9.24m to £9.77m during the period, increasing the wages‐to‐turnover ratio from 58% to 68%.
The impact of fans being locked-out of games since March 2020 will continue to be a pressure on the club until the restrictions are relaxed. The club are predicting turnover to drop £10m for the current financial year, with an operating loss of £5m with a wages-to-turnover ratio increasing to 90%.
With the projection of losses over the next 12 months, any cash will be diverted from the new stadium to keep the club operational.
Cormack said: “We’ve got a stadium to build. Probably £8m has been lost that could have gone to the stadium. Thank heavens that I got another million from my friends.”
“We have to focus on a plan to get us through this.
“The stadium project is going to happen, but is it delayed by 1, 2 or 3 years? If you can tell me when crowds are back at Pittodrie, I’ll probably be able to provide a better estimate. The reality is that project is on the back burner because all of our efforts are on getting through this.”
Earlier this year Cormack said: “Aberdeen will survive, we will absolutely survive it, but what form it takes at the other end of this is outwith our control.
“It’s the smart thing for us to do, to move to Kingsford.
“In saying that, now all bets are off the table now with regards to timing until we get through this.
“If it costs us four, five, six or £10million to get through this as a club, that takes money from other things we might want to do, whether it be Kingsford or investments in the football operation.
“Our number one priority is surviving. Once we do that, we will take a deep breath, sleep on it and then give our perspective.”
Commercial Director, Rob Wicks said: “We are still firmly committed to the new stadium for all the reasons we have stated previously but we have to be realistic.
“The unexpected financial challenges that have been brought up as a result of the pandemic means we are going to have to look really carefully at our plans and assess that with the timing of the move.”