Christmas edition

Christmas eNewsletter

This is the Christmas edition of the regular eNewsletter brought to you by Dons Supporters Together.

We hope this newsletter keeps you up to date with all the new developments and issues regarding DST and their activities.

The DST Board would like to wish all our members and Aberdeen FC supporters around the world a Merry Christmas and Happy 2013.

Top Stories

Review of Aberdeen FC Annual Accounts The DST Board have reviewed the Annual Report of the club for the year to 30.06.12 and, in common with most other football clubs, the figures do not make great reading.

Despite gate receipts going down by 12.8%, turnover increased mainly due to the club shop now being run in house and increased TV monies from two cup semi-final appearances. With operating costs remaining at the same overall level as the previous year the annual net loss was reduced to £1.365million from £2.116million. The Director’s Report states that “The Board will primarily concentrate on achieving an operating breakeven position in the short to medium term”

The debt owed to the bank remains the same at £10.82 million, and was due for repayment on 30th November 2012, but the accounts state that “At the date of signing the negotiations are well advanced and the directors are confident that the negotiations will be satisfactorily concluded”. Stewart Milne Group (SMG) provided an additional loan of £1.25million during the year. The long term loans from SMG and Aberdeen Asset Management (AAM) now total £5.75million but it is proposed at the AGM to pass a resolution to issue £5.75million preference shares (with no dividend rights) to replace these loans. DST welcomes this commitment from SMG and AAM which will boost the net assets as the loans will now become share capital.

The auditor’s report draws attention (through an emphasis of matter paragraph) to the £2.657million to date spent on development costs for the new stadium which is shown as an asset on the balance sheet. The Chairman’s report states that “much of the work relating to Loirston and Calder Park remains relevant which is why the Board continues to hold as an asset the development costs to date”. DST remains concerned, as the ageing stadium is costly to maintain and funding has to be found for a New Stadium.

In a recent survey by PKF of 62 UK football finance directors, 58% admitted they were dependent on one or more principle shareholder to keep the club afloat. AFC are no different as the continued support of the major shareholders is critical to the long term survival of the club, along with the support of the bank.

Finance Meeting with AFC

On 13.12.12 DST met with AFC Chief Executive Duncan Fraser to discuss the Club’s financial statements for the year ended 30.06.12

The priority is to move to obtain a break even position by season 2014/15 with the focus on sales and marketing to increase turnover, whilst taking out costs wherever possible. The football budget will need to be brought into line with what can be justified in terms of turnover particularly attendances at home fixtures.

The bank facilities are in the process of being finalised to allow a more long term approach to be taken which will assist the executive team as they move forward. The focus will be primarily on the day to day business, but the intention is also to focus on the best option to move the stadium and training facility projects forward.

Supporters Meeting at Pittodrie: 15th December 2012

The final Supporters Meeting of the year was held at Pittodrie on December 15th 2012. In attendance from Aberdeen FC were Geroge Yule, Ian Jack and Duncan Fraser. A range of issues were raised and discussed including SPL league reconstruction, the Rangers Newco situation and the prospects of summer and Friday night football. On the field matters were also raised including January signings and the contract discussions with Ryan Fraser whilst an update on the new stadium, training facilities and further attempts to improve the atmosphere at Pittodrie were also discussed. Full minutes from the meeting will be available as soon as possible on our website and via email.

Aberdeen FC Annual General Meeting

Aberdeen Football Club held their Annual General Meeting at Pittodrie on Wednesday 19th December and three DST Board members attended.

Notes from the meeting:

All formal business passed with no questions

Questions raised by DST and shareholders:-

Q. Were revenues affected by late buying of season tickets due to Rangers situation and by how much?

A. Season ticket sales 10-15% down as at end June due to Rangers effect (but made up in July/Aug)