Aberdeen FC to wipe out all debts

By Stand Free Ed
Last updated : 12 November 2014

The club have agreed a deal with businessman Willie Donald and wife Elaine, who together own civil engineering firm WM Donald.

A club statement read: "After the year end the club reached agreement with the key debt holders and the bank to restructure its debt and share capital.

"Some of the necessary steps have already been completed and, subject to shareholder approval, the remainder will be completed this year. It is expected that net debt will be reduced by £14.49m.

"As part of this restructuring local businessman Willie Donald and his wife Elaine will become shareholders in the club.

"Also as part of the restructuring the Aberdeen FC Community Trust will receive a sizeable shareholding."

 

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Willie Donald added: "Our family recognises that we have been fortunate to have grown our business in a city and region that has benefited from the impact of the energy sector over the last 37 years.

"We decided some time ago that we wished to give something back to the community, we see the football club as a vital and central part of the community, and indeed the whole North East of Scotland, and see this investment as an excellent opportunity to deliver our objective."

Aberdeen chairman Stewart Milne said: "The negotiations have been ongoing for a number of months now and these arrangements will I believe be transformational for the club.

"The club are indebted to Willie and Elaine for the role they have played in this.

"If the final steps are approved at the AGM we will have a strong balance sheet and the debt servicing burden will be removed allowing us to drive forward on training facilities and the plans for the new stadium with much greater confidence in our ability to raise the additional investment needed."

Dons chief executive Duncan Fraser revealed the deal was only made possible because the club have shown it can run at a break-even position in recent years. Fraser added that the club turnover had risen from £7.85million to £11.2million last season, when the Dons won the League Cup and finished third in the Scottish Premiership, their first time in the top six for five years.

Fraser added that wages increased from £5.3million to £6.1million as a "direct result of much higher performance bonuses being paid to the playing and management staff" but that wages-to-turnover ratio had fallen from 67 per cent to 55 per cent.

The club's annual general meeting will be held on December 15.

Source: RedWeb and Eurosport

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