Scottish football clubs owe more than £22m to government in Covid loans
Eleven clubs, then all in the top flight, opted to take interest-free loans totalling £25.26m in 2021 to assist with business recovery from the pandemic. While terms on the loans mean full repayment is not due until 2042, the scale of moneys still outstanding is likely to turn heads as many top-flight outfits continue to spend freely and receive decent transfer fees for players. Several clubs have also received significant European revenues over recent seasons. Clubs lower down the Scottish football food chain also received Covid grants. Two of them, Inverness Caledonian Thistle and Dumbarton, have subsequently entered administration.
Celtic were the one Premiership club who declined the option of a Covid loan. Aberdeen received a payment of more than £3.11m, of which £402,871 had been repaid by 31 March. The Pittodrie club sold Bojan Miovski to Girona for a reported club-record fee of £6.8m last year.
Dundee United's balance was £2.66m from a £2.81m loan. Hamilton, who are now in League One, had paid back just £20,000 on £1.15m. Hibernian had £2.5m outstanding from a £2.88m loan, Kilmarnock had repaid £236,000 of £1.82m and Livingston's £1.78m had been reduced by £147,559. Hibs broke their transfer record of £700,000 to sign Togo international striker Thibault Klidjé from Luzern this summer.
Motherwell claimed a £2.95m loan, with £2.57m outstanding as the financial year ended. Rangers' £3.2m had been reduced by £413,333. Rangers reported club-record revenue of £94m last year. St Mirren took a £1.76m loan, of which £176,400 had been paid back by 31 March. Ross County and St Johnstone, both relegated at the end of the last Premiership season, took loans of £1.15m and £2.6m respectively. Ross County had repaid £149,575 and St Johnstone £335,833. The overall balance towards the public purse, therefore, sat at £22,473,208 on 31 March.
The Scottish government has also confirmed payment terms have been renegotiated over the period with Dundee United, Hamilton, Livingston and St Johnstone. The government considers the level of engagement with the clubs in question to be satisfactory.
Terms reported at the time of the loans being agreed stipulated senior management at clubs were prohibited from taking bonuses and above-inflation pay rises until moneys had been fully repaid.
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The Scottish Professional Football League declined to comment.
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