AFC Announce £2m New Investment and Wage Deferrals To Get Through Crisis
Aberdeen have announced this afternoon (Saturday 4 April 2020) they have secured £2m of new investment to help cover the cashflow problems caused by Scottish football’s shutdown due to the coronavirus outbreak.
In addition to the new funding, Derek McInnes, the coaching staff and players will partially defer wages and bonuses voluntarily for April, May, June and July. These steps will help improve the Club’s cashflow by £1.1million.
In a statement on the club website, Dave Cormack said: “The Club has worked diligently to minimise the impact on its lower paid employees and we’re pleased to confirm that more than 50% of our hard working and loyal staff are unaffected by this deferral. The balance of employees have agreed to defer salaries by between 10% and 30%, plus certain bonuses including football performance.”
McInnes added: “It is incumbent on all of us to help the Club through this challenging period. I want to thank the players, my coaching staff and all staff at the Club for being so forthcoming and willing to do what is required to get the us through these exceptional circumstances and for supporting our fans and the wider community.”
Following the Chairman’s rallying call, Dons’ fans have shown their loyalty to and support for the Club by snapping up season tickets and AberDNA membership.
Cormack said: “I’m hugely encouraged on two counts. Firstly, by the response from our fans to our predicament when many are worried about their jobs and facing financial difficulties. Secondly, by the willingness of directors, management, players and staff across the Club to pull together to see us through this, including deferring salary and bonus payments.
“Our investor group, including myself, who invested an additional £5million last December, has committed £2million more to the cause. We now need to focus our efforts on selling season tickets and AberDNA memberships to meet the remaining shortfall in cashflow.
“Season tickets will generate about £2million in cash, with AberDNA delivering net income of £600,000 over the next 12 months. Those fans who are able to support this effort in the coming weeks will be playing a huge part in helping us through this very testing time.”
The Club has set itself targets to reach 10,000 season ticket sales for 2020/21 and grow its AberDNA initiative to 7,000 members by 31st July 2020.
Rewards and incentives for those buying or have already bought season tickets, renewed or subscribed to AberDNA are being considered.
Cormack added: “We’re currently exploring how we can reward fans for their loyalty, in one‐off and unique ways when football resumes, and we’ll be announcing these in due course.
“We announced earlier this week that the Club’s investors will be making donations, equivalent to 10% of every season ticket sale, to the Trust. If the Club sells £2million in season tickets, then AFCCT will receive £200,000, which will enable them to continue to carry out vital work with some of the most vulnerable in our communities. To improve the Trust’s cash position immediately, the investors have already advanced a £100,000 donation.
“This win:win approach means that fans are making a contribution to both the Trust and the Club when they buy a season ticket.”
