The number of Scottish clubs on red alert for financial problems has soared over the past six months, a shock new study has revealed.
The October 2022 Football Distress Survey, which charts the state of balance sheets across the SPFL, suggests there has been a 50 per cent rise in Scottish clubs showing signs of distress compared with March 2022. The research, which has been conducted for over a decade by business recovery specialist Begbies Traynor, indicates a total of nine clubs in Scotland are showing signs of financial distress.
That’s three more than in March 2022 and one more than in October 2021 when Covid relief measures had temporarily eased pressure on club cash flows. The Scottish Championship saw the highest levels of distress, with four clubs showing signs of hardship compared with no distressed clubs in March 2022 and just one a year ago, prompting concerns that clubs are taking “more financial risks to get promoted, or to avoid relegation from the top tier of Scottish football”.
