Dave Cormack insisted Aberdeen would continue striving to improve their player trading model after the Dons recorded a net profit of £1.1million for the year ended June 30, 2023.
The Pittodrie club have moved to a strategy whereby they invest significantly more in wages, operating costs and transfer fees than their operating income in an attempt to capitalise on player sales.
The Dons’ accounts for the 12 months from 1 July 2022 reveal that turnover increased by almost £2m, up 14 per cent from £13.86m in 21/22 to £15.77m.
This has been attributed to an increase in gate, sponsorship, commercial and broadcasting income, due in part to the club finishing third in the Premiership and reaching the Viaplay Cup semi-final last term.
The combined impact of not competing in Europe last season allied to increased investment in the playing squad led to an operating loss of £6.27m, although this was offset by £7.45m of gains from player sales to deliver a net profit for the 2022/23 financial year of £1.1m.
Continued investment in the first team plus higher bonuses paid to the squad for finishing third and guaranteeing European group-stage football this term resulted in wages rising by £1.7m during the period.
Cormack feels the Dons’ best hope of thriving in the longer term is to be able to develop players and sell them on, as they have done in recent years with the likes of Scott McKenna, Ross McCrorie, Calvin Ramsay and Lewis Ferguson.
“To compete at the highest levels in Scottish football and to qualify for Europe each season, we continue to invest more in player wages and transfer fees,” he told the Aberdeen website after the accounts were released.
“This has led to annual operating losses which, over time, have to be balanced by positive player trading and increased commercial and football performance-related income.
“I’m pleased to report that we are making progress on balancing the significant additional investment in football wages and transfer fees, which leads to these operating losses, against positive income as a result of successful player trading.
“The club’s board and investors are committed to this strategy which has required a significant expansion of recruitment resources to unearth and invest in emerging talent such as Bojan Miovski, Duk and Leighton Clarkson.
“This acquisition of emerging young players combined with continued, substantial investment in our youth academy to develop young, homegrown talent, gives our club the best opportunity of success.”
Cormack feels Aberdeen, who are preparing to play in the Viaplay Cup final next month, are in good fettle overall.
“This steady, off-the-pitch financial performance, combined with progress in our football performance – most notably playing in the group stages of European club competition for the first time in 15 seasons – and getting to our first cup final in five years, puts the club on a good footing,” he said.
“Our strong senior management team, now led by Alan Burrows, who was appointed as chief executive in February this year, are driving the key projects which will propel the club even further forward.”
