Dundee United chairman Stephen Thompson has given a revealing insight into football finances after the Tannadice side revealed an audited loss of £523,000 for the year to June 2011.
That loss can largely be put down to winning the Scottish Cup the previous season although there was also a worrying dip in season ticket income of 18% despite the clubs’ Hampden success.
Since those figures were audited United have sold David Goodwillie to Blackburn Rovers for £2.8m with further funds arriving from the departure of Scott Allan to West Brom to reduce the club debt to under £4m.
During the summer Goodwillie was subject to seven separate bids from Rangers with Thompson admitting that he was under pressure from the bank to accept the first offer for £1.2m that was tabled.
A pre-season injury to the Scotland striker could have left United in the hands of HBOS but Thompson’s nerve held to make a substantial reduction in their overall debt.
“I learned a lot through the whole thing,” the Tannadice chief admitted. “The bank wanted me to take £1.2m for him, but I said no to that. I had to stand up against the bank. There was a lot of pressure and then I had to fight with the bank as the money came in.
“It has made a big difference to the financial stability of the club. We had a bit of a ding-dong with the bank at that time about how much they were going to take, but we reached a common sense agreement, although the vast majority of it went towards debt reduction.
“The bank is not on my back so much, so I’m a lot more upbeat about the finances of the club now. We have still kept a competitive team on the park. When you lose your best player, it’s hard. That was reflected in the start of the season, but we have come good since then.
Thompson added: “I would have preferred to make a £500,000 profit rather than a loss but I would emphasise that these accounts are historical with regard to the financial situation at the club, being up to June of last year.
”The Goodwillie deal was done after that period and there is no doubt that it was one of the best deals done for a long time. Other people in the SPL tell me that, so we did well.
”The bank wanted us to accept £1.2 million for him and I said no because I thought we could get more for him and we did. I had to stand up against them and that was hard to do.”
Four years ago United owed HBOS the best part of £6m with no obvious means of reducing that figure as supporters demanded investment in the playing staff.
The bigger names and accompanying salaries have been shelved as the club learns to live within it’s means with the introduction of a more relistic salary level.
With home crowds averaging around 8,000 and television income static around the £1m a year mark Peter Houston knows the market that he search for players in
“I still want a very successful team but there’s a limit to what you should be spending on people,” Thompson explained. “We are no longer going to go out and sign players at £2500 per week.
“We have a lot of young talent, with the likes of Stuart Armstrong, Johnny Russell, Gary Mackay-Steven, Ryan Dow and Gavin Gunning to name but a few,.
“It is just trying to hold on to them that’s the hard part. Getting a good few years out of them then selling them on is just what happens.”
Former Celtic reserve Michael Gardyne has signed a pre contract agreement to join United in the summer.
CLICK HERE for Artur Boruc in demand
CLICK HERE for Kenny Miller’s Sky Sports misery
Follow Video Celts on Twitter, Facebook
Hmmm and who were the bankers that were “running” Rangers – lloyds, shotgun marriage owners of HBOS.
Fee fi fo fum I smell the stench of some banking huns…
Like Jocky Bhoy suggests it does make you wonder who the Bank were working in the interests of, pushing Utd to accept £1.2m when the fee more than doubled that level does make your paranoia juices flow….