FAN ownership sceptics around the country must have smiled knowingly to themselves back in January when St Mirren announced they had made a loss of £1.6m in the financial year ending May 2022.
It was a huge sum for a club with a turnover of little over £4m - and conclusive proof to many that wealthy benefactors are needed to cover shortfalls and stave off the threat of administration or worse in these challenging economic times.
Those fans who had been incandescent with rage when they found out that visiting teams would only receive tickets for one stand at the SMiSA Stadium – a mere 1,493 briefs – this season would also have felt rather smug.
It was evidence for them that the three stand retention policy – described as “pointless”, “crazy” and “self-defeating” by gleeful online snipers - had backfired spectacularly and was costing their rivals hundreds of thousands of pounds in much-needed income.
Even though it only came in to operation after the period which the latest accounts cover.
John Needham, who took over as chairman in the summer of 2021 when the St Mirren Independent Supporters Association purchased the last remaining shares owned by his predecessor Gordon Scott, acknowledges the Paisley outfit can ill afford to post such a substantial loss again going forward. “A club of our size can’t repeat that,” he said.
However, the retired banker is hopeful they will soon be in a position where they can break even if not post a profit as a result of the huge strides forward they have made both on and off the park since becoming fan owned.
“It was no surprise,” he said. “The loss in a large part was down to one-offs. It was related to Covid and some of the investments we were making on the operational side of things. The board have been working hard to reverse the losses and largely we are well on with that.
“When we report our results for the current financial year we are optimistic we will be getting closer to a balanced situation again. It is our intention to work towards a break even or a small profit next year. We are well on that track.”
Reducing the number of away fans who can attend their home matches – the response to the results of an extensive survey of their supporters - has been an unqualified success as far as Needham is concerned.
He firmly believes it is one of many reasons that Stephen Robinson’s men, who are in sixth spot in the cinch Premiership table and have a chance to finish in the top half of the table for the first time ever, have performed so well in the 2022/23 campaign.
He is doubtful the previous regimes at St Mirren would have been able to take such a radical and risky step.
“The direction of travel is now influenced by the fans first and foremost,” he said. “I am not being in any way critical of the past owners because both Stewart Gilmour and Gordon Scott did a fantastic job. But they were putting their own money on the line and that influenced their decisions.
“The biggest change now is what the fans think and what the fans value has come more front and centre. The best example of that is the decision to go with three stands for home fans. That was and was clearly going to cost us some money in the short-term. We were also in a loss-making situation at that point.
“I suspect the previous owners would have said: ‘Well, we can’t afford to do this just now’. With our current strategy we ultimately decided, and it was debated long and hard, that it was worth trying to do and incumbent on us to find other ways to bridge the gap in the finances which it would create.
“It has turned out really well for us. We are delighted with the reaction from our fans. We have had a lot more bums on seats. There is no doubt the team and the results we have had at home have helped.
“But we have had much bigger home turn outs for the Celtic and Rangers games than we had hitherto. Overall, we are way up, over 20 per cent on our home gates this season. It is quite remarkable in the current economic climate. The home fans have responded really well.
“We got a crowd of 7,253 for the Hibs game last month. At the previous Hibs game in August it was 5,343. The most pleasing aspect is the numbers in the family stand. In the past, that was normally only a third to a half full. It is getting pretty close to full capacity now.
“You can see the quantum. It has created a better atmosphere and in turn that is helping the players on the park. Hopefully we have created a virtuous cycle there that we can maintain.”
Needham has heard all of the arguments against fan ownership and baulks when people say that clubs need to have a millionaire sugar daddy in case, as often happens in a business as unpredictable as professional football, incomings suddenly nosedive as the result of relegation or some other unforeseen event.
“I don’t subscribe to that view,” he said. “Fan ownership means that you have to live within your means and look at the club in a more sustainable way overall. You don’t get the same volatility you get when an individual comes in and takes over. You do have to get it right, there are definitely risks. But I think fan ownership takes the volatility away for clubs that get it right.
“I always chuckle when I hear talk of somebody investing in a football club. You don’t invest in a football club, you donate. The chances of getting your money back are minimal. It is only really Fergus McCann at Celtic who managed to do that. But running a community club like St Mirren is a different ball game.”
Needham added: “On the specifics of a benefactor who has reserves which you can access, we are amassing reasonably chunky sums from our members subscribing. They have built up a pretty healthy rainy day fund which can be used to support the club if needed in due course.
“That is very much kept apart from the club finances. We don’t rely on that, but it is there and it is a good insurance policy if some sort of crisis arises. It is in excess of £250,000 at the moment. It is not insignificant.
“If it gets to a certain level, those monies can be used to invest in something that might generate more money. Fan ownership can work really constructively to make sure the club operates within its means, with a backstop if need be.”
That St Mirren have flourished, never mind survived, since becoming fan owned despite the Covid-19 pandemic and the cost-of-living and energy crises backs up Needham’s argument that it is a viable way to run a top flight club. He is confident they can build on the progress they have made in future.
“The difficulties that people are experiencing in the world at the moment have certainly had an impact,” he said. “But the membership has maintained in terms of numbers pretty strongly.
“We are looking to try and broaden that membership. We have around 1,200 members, but we have upwards of 5,500 fans at home games. So I would like to see a much larger percentage of those people signed up.
“But we have to prove to them that fan ownership works, that we have a better team on the park, that the place is better run overall. That will encourage them to part with their hard-earned cash. It is a chicken and egg scenario in many respects.”
Even the match day pies at the SMiSA Stadium are a little bit tastier these days. “We have really tried to improve the whole experience,” said Needham. “We take a multi-faceted approach to things.
“We have changed our caterers and they have done a fantastic job. We work with a company called Pie Sports now and they are quite innovative in the variety of stuff they offer. There is a steak, haggis and peppercorn sauce pie. You can get a kebab pie as well. It is a big favourite.”
Needham can only see more clubs following the route taken by Hearts, Motherwell and St Mirren as well as many others in the lower divisions in the years to come. Could St Johnstone, who the Brown family put up for sale in December, be the next to become fan owned? The St Mirren chairman would recommend them doing so.
“I firmly believe it’s a good path for clubs of our size to go down,” he said. “It happens best when there is a willing seller and a healthy fan base. If you can get a benefactor who is willing to work with the supporters then I think you have got a recipe for success.”
