Aberdeen make £1m wage cuts

[Monts]

https://www.bbc.co.uk/sport/football/53514353

[Hibs90]

Staff earning over £30,000 per year have agreed to take reductions averaging 20%. (Players/Management?)

The club's statement says the following measures taken will help reduce to gap to £3.8m:

£2m cash injection from investors
£2m savings from government support through the job retention scheme and rates relief, as well as operational cost‐cutting
£1m from higher than expected season ticket and AberDNA membership sales
£200,000 less than expected from 2019-20 season ticket and seasonal hospitality refunds
£1m from wage cuts
"We're not out of the woods, by any means," Cormack added.

"But everyone at the club is buoyed by our supporters and corporate clients' desire for us to work together to get through this. And I believe we will.

"Along with our goal of avoiding redundancies and looking after our lower paid staff, we must stay competitive as a team and continue our investment in our youth academy."

[Hibernian Verse]

Look forward to seeing how the Red Tops report this

[Kato]

Look forward to seeing how the Red Tops report this

....and it being mentioned with a tone of disgust every fifth sentence or so on Sportsound.

[Keith_M]

Did they sack their Kit Man?

[JimBHibees]

They also resigned Jonny Hayes in this period.

[Bostonhibby]

Aye but it's all Hibs fault. Hibs bad man. They ate Freddie Stars hamster.

More on this Tom English scoop later, just as soon as Mrs doctor Budge tells him it's okay.

Sent from my SM-A750FN using Tapatalk

[04Sauzee]

They also resigned Jonny Hayes in this period.

Pretty sure he's defferd his full wage for a year

[mjhibby]

....and it being mentioned with a tone of disgust every fifth sentence or so on Sportsound.

I smell a huge waft of hypocrisy in the air.

[Not In The Know]

Staff earning over £30,000 per year have agreed to take reductions averaging 20%. (Players/Management?)

The club's statement says the following measures taken will help reduce to gap to £3.8m:

£2m cash injection from investors
£2m savings from government support through the job retention scheme and rates relief, as well as operational cost‐cutting
£1m from higher than expected season ticket and AberDNA membership sales
£200,000 less than expected from 2019-20 season ticket and seasonal hospitality refunds
£1m from wage cuts
"We're not out of the woods, by any means," Cormack added.

"But everyone at the club is buoyed by our supporters and corporate clients' desire for us to work together to get through this. And I believe we will.

"Along with our goal of avoiding redundancies and looking after our lower paid staff, we must stay competitive as a team and continue our investment in our youth academy."


Makes you wonder whats going on behind the scenes at Tinycastle if this is what Aberdeen and us are doing.

Oh aye, they are offering crazy wages to players we are trying to sign!!

[B.H.F.C]

They also resigned Jonny Hayes in this period.

He’s deferring his wage for a year.

[Peevemor]

He’s deferring his wage for a year.

Which they're going to have to pay over the course of his contract. It makes no real difference in the big scheme of things - it's more a PR exercise than anything else.

[Spudster]

Which they're going to have to pay over the course of his contract. It makes no real difference in the big scheme of things - it's more a PR exercise than anything else.

Of course it makes a difference. He's helping their cash flow

[mjhibby]

Makes you wonder whats going on behind the scenes at Tinycastle if this is what Aberdeen and us are doing.

Oh aye, they are offering crazy wages to players we are trying to sign!!

Arbitration surely will be noticing their spending when they plead poverty. Utterly farcical the whole thing when they have wasted tens of millions. If they get any money they would just waste it on some awful players. It’s what big clubs do you know.

[ian cruise]

Arbitration surely will be noticing their spending when they plead poverty. Utterly farcical the whole thing when they have wasted tens of millions. If they get any money they would just waste it on some awful players. It’s what big clubs do you know.

I think it was covered elsewhere that arbitration wouldn't care about what they are spending. The part the arbitration panel play is to decide based upon the evidence if either team were the victim of wrongdoing one way or the other and if so, what is an appropriate compensation. It's not to decide that because they were unfortunate they get a bit extra cash.

[Peevemor]

Of course it makes a difference. He's helping their cash flow

Obviously, but given they have wealthy US based investors who have been injecting funds, cash flow shouldn't be a problem for them so his wage deferral won't make the same long term difference as the wage cuts accepted by the rest of the staff.

It's a bit like when my wife only half fills her car's tank because we're getting toward the end of the month even though there's easily enough money to fill it up and avoid having to go back a couple of weeks later. It makes no difference in the big scheme of things.

[JimBHibees]

He’s deferring his wage for a year.

So not getting paid for a year surely not.

[.Sean.]

Staff earning over £30,000 per year have agreed to take reductions averaging 20%. (Players/Management?)

The club's statement says the following measures taken will help reduce to gap to £3.8m:

£2m cash injection from investors
£2m savings from government support through the job retention scheme and rates relief, as well as operational cost‐cutting
£1m from higher than expected season ticket and AberDNA membership sales
£200,000 less than expected from 2019-20 season ticket and seasonal hospitality refunds
£1m from wage cuts
"We're not out of the woods, by any means," Cormack added.

"But everyone at the club is buoyed by our supporters and corporate clients' desire for us to work together to get through this. And I believe we will.

"Along with our goal of avoiding redundancies and looking after our lower paid staff, we must stay competitive as a team and continue our investment in our youth academy."
Ouch. Dropping to 24 grand a year from 30 is a substantial drop

[Peevemor]

Ouch. Dropping to 24 grand a year from 30 is a substantial drop

It says "averaging" 20%. Those on £100k+ should be able to take say 25% but those on £30k might take a 5% cut. For 2 employees (one of each) that would average over 20%.

[superfurryhibby]

He’s deferring his wage for a year.

Can you post a link to that please? I looked online,but couldn’t see it.

[Peevemor]

Can you post a link to that please? I looked online,but couldn’t see it.


https://www.eveningexpress.co.uk/fp/sport/football/aberdeen-fc/donsnews/derek-mcinnes-reveals-jonny-hayes-agreed-to-defer-wages-for-next-season-to-push-through-aberdeen-deal1/

https://www.thesun.ie/sport/football/5627556/jonny-hayes-aberdeen-defer-salary/

[Since452]

Makes you wonder whats going on behind the scenes at Tinycastle if this is what Aberdeen and us are doing.

Oh aye, they are offering crazy wages to players we are trying to sign!!

Shambolically run club. When they came back up in 2015 they had a great opportunity to make sure they were pretty much untouchable as Scotland's third force with all the FOH and benefactor money ploughing in. Incredible how they've managed to Hearts it so epically. Genuinely wouldn't surprise me if they end up in financial difficulty again. Pure mismanagement.

[RyeSloan]

Obviously, but given they have wealthy US based investors who have been injecting funds, cash flow shouldn't be a problem for them so his wage deferral won't make the same long term difference as the wage cuts accepted by the rest of the staff.

It's a bit like when my wife only half fills her car's tank because we're getting toward the end of the month even though there's easily enough money to fill it up and avoid having to go back a couple of weeks later. It makes no difference in the big scheme of things.

But the point is there is not ‘easily enough money’.

Their cash flow, like Hibs, is severely restricted just now so only filling half the tank is a sensible cost save until they get paid (fans return) again.

Seems a pretty straightforward concept in that cash is tight just now so defer or reduce current expenditure to meet the current lower levels of income.

[Peevemor]

But the point is there is not ‘easily enough money’.

Their cash flow, like Hibs, is severely restricted just now so only filling half the tank is a sensible cost save until they get paid (fans return) again.

Seems a pretty straightforward concept in that cash is tight just now so defer or reduce current expenditure to meet the current lower levels of income.

I understand what your saying, but in the longer term (3 years?), the deferral will make very little difference compared to wage cuts. And as I said before, their investors have been throwing money at them so I don't see cashflow as being a major issue for them.

[RyeSloan]

I understand what your saying, but in the longer term (3 years?), the deferral will make very little difference compared to wage cuts. And as I said before, their investors have been throwing money at them so I don't see cashflow as being a major issue for them.

Aye but they clearly do, hence the cuts n deferrals!

But aye clearly deferrals will need to be made good while their cuts are perm savings...all adds up to less cash needing to go out the door now which is surely their aim currently.

[Since452]

It would be negligent to sit back and do nothing so fair play to Aberdeen. Not heard a peep from Rangers though...