Raith Rovers chairman Dave Somerville has given an open and honest assessment of the stark financial realities facing the Kirkcaldy club.
Having lost out to Dunfermline in the race for promotion to the SPL, Raith have had to release 15 players, including first-teamers such as Mark Campbell, Craig Wilson, Andy McNeil and Stephen Simmons.
With no Pars in Division One next season and poorly-supported Hamilton coming down from the Premier League, the loss of the lucrative Fife derbies will have a significant impact on gate revenue.
Somerville also spoke of “general financial pressures” in the economic climate adding to the burden on Rovers.
“Planning for season 2011/12 has been especially difficult given the emerging picture over the past months,” he said. “Would Raith be in the first division or premier league? Would Dunfermline, Falkirk or another team be promoted? Would Dundee be in the first division, etc?
“Obviously all of the above and other just as important issues have been clarified over time. Every one of these has a different impact on the budget.
“Perhaps of more importance is that Scottish football is in the midst of very difficult times and almost all clubs report reduced commercial income, lower crowds and general financial pressure in the current climate.
“To consider that Raith Rovers is somehow immune from all of that is fanciful. This club is blessed with some very supportive sponsors, supporters’ groups, volunteers and local traders.
“My colleagues on the board have been doing a sterling job in taking the club forward against the myth that Raith Rovers was debt-free in 2005.
“Progress on and off the field has been possible by a whole range of initiatives and efforts by many people. Included in this is a wide range of entrepreneurial efforts by board colleagues.
“However, this is becoming increasingly difficult for all of those mentioned. Certain directors and a shareholder have put in funding at critical points in the season and this practice cannot continue.Review”We also have to recognise that, with all due respect to Livingston and Hamilton, neither is likely to command a 6500 crowd at Stark’s Park and this, together with the general Scottish football financial scene, means a review of the budget was necessary.
“Also, while this club does not budget for cup runs, the poor level of progression in cups (particularly the Scottish Cup) did not provide any financial comfort this season.
“Given the above factors there will be a reduction in all areas of the club budget for next season.”
The Stark’s Park chairman conceded that John McGlynn, the recently-crowned PFA Scotland manager of the year, is “concerned” at the cuts but assured him there will be no pressure on him to perform miracles next season.
“Given that the player budget is the largest single area of expenditure, John McGlynn has significantly less resources for players next season,” said Somerville. “People are aware of the high regard I have for John and (his assistant) Paul Smith and the positive response they have given to this situation speaks volumes for their understanding of the current economic climate and their commitment to the club.
“Naturally, John is concerned at what he can achieve with less resources but he has never had any specific targets placed on him by the board and this is especially the case next year.
“One thing is for sure the players who pull on a Raith jersey next season will be as well prepared as possible.”
He then accentuated the positives at Stark’s Park, adding, “We Scottish people are experts at dwelling on the negative side of things. Although nobody wants to cut budgets and these will have an inevitable impact there are some positives. We have one of the best football management (teams) and backroom staff in Scotland, who will give 100% for the club.
“Players are leaving the club but John will be bringing in others players. This will have the impact of refreshing the squad. Virtually every other first division club is reviewing their budget position in similar fashion in light of current circumstances.”