Financial Position

[Graeme S]

Article in Courier today.

I read this as a GIRUY to Mr Preston and his snide suggestion that, (what was it again?) "funds had been frittered away"?  And the rest of his sh*t stirring comments. Nice to see such openness from any owner, but especially when it's OUR owner. 

"The St Johnstone owners are preparing to dip into their own pockets to alleviate the cost of relegation and give Simo Valakari the best chance of bringing the Perth club straight back up, chairman Adam Webb has revealed.

As the first anniversary of the American takeover at McDiarmid Park looms, the expected ballpark loss of dropping out of the Premiership is around the £2 million mark.

Saints had £2.8 million in the bank when the last financial year accounts were published.

Webb has no intention of letting the club get too close to that security blanket being wiped out.

Having ploughed money into Cambridge United, when he was a minority shareholder there, the Atlanta-based lawyer has experience of putting his money where his mouth is.

And Webb’s fellow Saints in America investors are of a similar mind.

That “cash injection” could even happen before the year is out.

“The club has substantial reserves,” Webb explained.

“And, of course, we owe the Scottish Government as well (for a loan during the Covid-19 pandemic).

“If we get to a point where we’re getting down in cash, our ownership knows we’ll be having a fund-raise.

“There will be a buffer.

“I want to keep as much as we owe the Scottish Government but, frankly, that’s not going to happen because we’ll have to draw down that cash.

“Relegation causes a major deficit.

“So, the question is how much you keep on hand before doing a capital raise.

No timescale

“There’s no final decision on that yet.

“We have cash projections of where we think we’ll be.

“We are keeping a close eye on it and obviously they’ll have notice before we do a cash call or sale of shares, depending on what the mechanism is.

“It’s possible we’ll be there by late this year or early next year.

“Everyone has been informed of that and are comfortable with it.”

Webb added: “If we can avoid it, we will, but everyone has been told it might be needed.

“You never know what a cup run, a player sale or better ticket sales will do to the finances, there are things which can change the analysis.

“It’s not our preferred method, our goal is not to be doling out cash, it’s to be sustainable because that, historically speaking, works out better for everyone.”

‘Pay their share’

The eight other investors are Matt Klase, Franklin Lemond, Chet Arter, Mark Chastain, Chris Davis, Jeff Hardwick, Kyle Ingalls and Cary Webb.

They all own up to 5% of the club.

“I have 70% of the ownership group so it’s mainly going to be on me,” said Webb.

“But it does help because the other guys will pay their share.

“They were all aware going in that it would be part of the ownership structure.

“At Cambridge United, I contributed money every year so I anticipated it could happen at St Johnstone.

“Now, we have a better budgeting profile, historically speaking, because the club has been run as a very tight ship.

“We are not going to give up on that sustainable model.

“Everyone who came in was prepared, they were warned it was a possibility.

“So, while I’m the majority shareholder, it will help share the load a bit.”

Strategic partner

With the financial safety net the American investors provide, Saints’ long-term security is assured.

But, if Webb identifies a tangible benefit to welcoming a new “strategic partner” on board, he would consider it.

It wouldn’t just be a case of seeking extra money for the sake of it.

“There are other people who occasionally contact us and who are potentially interested,” said Webb.

“There is a huge level of interest in UK football in the States, so I don’t feel it would be hard to get additional ownership if we wanted that.

“It’s one possibility as we look at a capital raise.

“But my belief is we’d only favour that solution if it was a strategic partner who is bringing something to the table.

“Multi-club groups are becoming a thing, like Atlanta United do with Aberdeen, for example.

“That is a great model.

“They can share resources and information – it’s a great idea.

“You also have data analytics companies who invest, as well as high-profile, wealthy or famous individuals who bring their own cache to the club.

“There are a lot of different strategic partners out there, so if we were going to open-up it would have to be people who wouldn’t just put in money but also bring something to the table which will help us grow the club.

“If someone brings connections, knowhow and knowledge – that’s what you’d want.”"

[Cagey]

Is Preston wrong in saying funds had been frittered away.

[Graeme S]

Happy to be corrected, as always, but by my (very rough) calculations we have the same amount in the bank as when Webb took over? Bearing in mind there was a £2m loss the previous year and Stan managed to get us back to even, or thereabouts, the following year? 

The fact that Webb and the owners are saying they're prepared to put their own money into the club, I see as a good thing, a committment. I think (again, correct me if I'm wrong) Geoff was always very proud of the fact that he never (had to) put money into the club? 

We'll, no doubt lose money by dropping into the Championship (quoted in the Courier as being C £2m?) and we need to improve the facilities so we don't have to read  stories from Max and Drey about the sh*t state the club was in pre takeover. 

I'm close to being one of the most dour and cynical people on here (not a competition, no prizes, but it'd be a close run thing!) , but I actually see this statement as a positive that the future has been thought about, planned for and expected. 

 

 

[Saintdunc]

I remember sitting at a Player of the Year  (pre COVID) awards night in the company of Brian Easton, who had been out injured for some considerable time, 2 other player, 2 physios plus a club Doctor.

He absolutely sang the praises of our Medical department during the evening saying he had been well looked after

What happened after that, from the outside looking in, makes it a surprise that we have only just got relegated.

Tragic that we nosedived from being an established side in the top league in Scotland to also rans! A pub side during the latter stages of Davidson's tenure and worse under Levein.

I hope Mr Webb gets it.

[CAH]

45 minutes ago, Graeme S said:

Happy to be corrected, as always, but by my (very rough) calculations we have the same amount in the bank as when Webb took over? Bearing in mind there was a £2m loss the previous year and Stan managed to get us back to even, or thereabouts, the following year? 

The fact that Webb and the owners are saying they're prepared to put their own money into the club, I see as a good thing, a committment. I think (again, correct me if I'm wrong) Geoff was always very proud of the fact that he never (had to) put money into the club? 

We'll, no doubt lose money by dropping into the Championship (quoted in the Courier as being C £2m?) and we need to improve the facilities so we don't have to read  stories from Max and Drey about the sh*t state the club was in pre takeover. 

I'm close to being one of the most dour and cynical people on here (not a competition, no prizes, but it'd be a close run thing!) , but I actually see this statement as a positive that the future has been thought about, planned for and expected. 

 

 

As a fellow cynic (and also somewhat dour) could it be that the owner is merely playing with words to keep disgruntled natives onside or perhaps even putting something out there to attract additional investment thus reducing his own losses???

[sixties saintee]

1 hour ago, Cagey said:

Is Preston wrong in saying funds had been frittered away.

You just hae tae look at the lengths o conracts give  oot tae some absoloute horseshit, and the 500 k on two players who never even played fir us, tae answer the question.

[Gekko]

41 minutes ago, sixties saintee said:

You just hae tae look at the lengths o conracts give  oot tae some absoloute horseshit, and the 500 k on two players who never even played fir us, tae answer the question.

Preston was referring specifically to what had happened since Webb took over.

As we know, all of these things happened under the previous ownership.

In other words, Preston is fed up that his gravy train has stopped.

I get fed up at SportSound treating him as if he is the official spokesperson for Saints.

[Kinnoull Kicker]

1 hour ago, CAH said:

As a fellow cynic (and also somewhat dour) could it be that the owner is merely playing with words to keep disgruntled natives onside or perhaps even putting something out there to attract additional investment thus reducing his own losses???

Webb acquired a club with a sound balance sheet and is clearly intent on ensuring that this remains the case though recognising that the impact of relegation and fixing the shaky foundations will likely require further capital investments from himself and other shareholders.
 

Rather being cynical you should be grateful that he is on the lookout for potential investors / strategic partners. This would provide the club with greater financial stability and bring knowledge/expertise/opportunities that would presently seem unimaginable.

Webb will have his own reasons to invest in a provincial Scottish football club but he is not silly enough to realise that a safer investment would have been to put his capital in a savings account! So he will have known the scale of the financial risk but also the upside - and I don’t think he possesses the capital to maximise that. So he looks to attract a strategic investor who helps bring success on field and financially and protect / grow his own investment. 

As I said in a post a while back think someone like Anders Povlsen - ultimate owner of our new main sponsor who also happens to own top Danish club Midtjylland. Think of the benefits having an investor like Povlsen on board would bring. Web’s recent comments suggest that is exactly what he is thinking. Contrast that to the parochial mindset of Steve Brown.

Be positive!!

 

[MySpazz]

Owns a chunk of Asos, as does the largest individual owner of AFC Wimbledon,  Nick Robertson who hS 10% of the "fan owned" club

[CAH]

4 hours ago, Kinnoull Kicker said:

Webb acquired a club with a sound balance sheet and is clearly intent on ensuring that this remains the case though recognising that the impact of relegation and fixing the shaky foundations will likely require further capital investments from himself and other shareholders.
 

Rather being cynical you should be grateful that he is on the lookout for potential investors / strategic partners. This would provide the club with greater financial stability and bring knowledge/expertise/opportunities that would presently seem unimaginable.

Webb will have his own reasons to invest in a provincial Scottish football club but he is not silly enough to realise that a safer investment would have been to put his capital in a savings account! So he will have known the scale of the financial risk but also the upside - and I don’t think he possesses the capital to maximise that. So he looks to attract a strategic investor who helps bring success on field and financially and protect / grow his own investment. 

As I said in a post a while back think someone like Anders Povlsen - ultimate owner of our new main sponsor who also happens to own top Danish club Midtjylland. Think of the benefits having an investor like Povlsen on board would bring. Web’s recent comments suggest that is exactly what he is thinking. Contrast that to the parochial mindset of Steve Brown.

Be positive!!

 

I gave up on your dream when the Gloags/ Stagecoach did not pursue their interest many moons ago!

[Willie Peat]

4 hours ago, Gekko said:

Preston was referring specifically to what had happened since Webb took over.

As we know, all of these things happened under the previous ownership.

In other words, Preston is fed up that his gravy train has stopped.

I get fed up at SportSound treating him as if he is the official spokesperson for Saints.

I wonder who Sportsound will start putting the boot into next season?  They had it in for us this season from day one and in an even bigger way once their pal Levein left. Preston was a part of all that.

[Ritspeed]

15 minutes ago, Willie Peat said:

I wonder who Sportsound will start putting the boot into next season?  They had it in for us this season from day one and in an even bigger way once their pal Levein left. Preston was a part of all that.

Livingstone as half their team is ex Saints? !

[Willie Peat]

6 minutes ago, Ritspeed said:

Livingstone as half their team is ex Saints? !

Possibly although they tend to fawn over Martindale! 

[Kinnoull Kicker]

44 minutes ago, CAH said:

I gave up on your dream when the Gloags/ Stagecoach did not pursue their interest many moons ago!

You need to move on!! Any supporter worth their salt wants to see this club thrive. The current owner may not succeed but it won’t be for the lack of trying. He said he wants an investor / partner that would add value. Let’s see if he can deliver - at least he is thinking positively and out of the box. Even if he doesn’t we will be in a far better place than with the gross mismanagement that we have witnessed over the past few years.

[CAH]

30 minutes ago, Kinnoull Kicker said:

You need to move on!! Any supporter worth their salt wants to see this club thrive. The current owner may not succeed but it won’t be for the lack of trying. He said he wants an investor / partner that would add value. Let’s see if he can deliver - at least he is thinking positively and out of the box. Even if he doesn’t we will be in a far better place than with the gross mismanagement that we have witnessed over the past few years.

I think you have misinterpreted what I said. The dream of a mega-rich benefactor be it Gloag or Polver is a pipedream which will never be realised (unfortunately). That's why most Clubs in Scotland are run by small time businessmen with limited funds and therefore limited capacity to effect long term upswings in their teams performances. The result of this is the Auld Firms' perennial dominance of Scottish football (with the occasional blip) and absolutely no prospect of a credible sustained challenge to that dominance.

However, hope springs eternal............

[Gekko]

For what it's worth, I heard many years ago, going back to the 90s I think, that Brian Souter wanted to plough loads of money into saints, but Geoff wasn't keen on it.

I think he wanted a whole bunch of shares, if not taking over the club entirely.

Again, this could be the kind of story that a mate, heard from a mate, who heard from another mate.

But the person who told me at the time was fairly well connected to the club and in the know.

Edited June 15, 2025 by Gekko

[Kinnoull Kicker]

Gloag had no interest or knowledge of football - not the sort of strategic partner that Webb is seeking. Have a look at what Povlsen has acheived with a provincial club in Denmark from an area similar in population to Perth and a stadium not much larger than McDiarmid Park. At little cost St Johnstone could benefit from shared knowledge,  analytics, player development …I could go on. There will be parties out there willing to invest where you have responsive management as competitive and financial upside.

We were one of those clubs run by a “small time businessman” with no strategy, interest or vision. The opportunity was there after the cup wins and Brown simply had no idea ( or interest) in how to grow the club. 
 

Look at Hearts, Hibs, Aberdeen, Dundee United and any number of clubs in England where strategic investors see opportunity. Success won’t come overnight for them but they are moving in positive direction.

We should be voicing our support to Webb in his vision rather than viewing it as a pipe dream and accepting that St Johnstone remains in a group of other clubs run by small time business men with no means or vision to grow successfully.

 

11 minutes ago, CAH said:

I think you have misinterpreted what I said. The dream of a mega-rich benefactor be it Gloag or Polver is a pipedream which will never be realised (unfortunately). That's why most Clubs in Scotland are run by small time businessmen with limited funds and therefore limited capacity to effect long term upswings in their teams performances. The result of this is the Auld Firms' perennial dominance of Scottish football (with the occasional blip) and absolutely no prospect of a credible sustained challenge to that dominance.

However, hope springs eternal............

 

[glenrothes saintee]

On 6/15/2025 at 7:53 PM, Gekko said:

For what it's worth, I heard many years ago, going back to the 90s I think, that Brian Souter wanted to plough loads of money into saints, but Geoff wasn't keen on it.

I think he wanted a whole bunch of shares, if not taking over the club entirely.

Again, this could be the kind of story that a mate, heard from a mate, who heard from another mate.

But the person who told me at the time was fairly well connected to the club and in the know.

I was in Perth one midweek day shopping, way back in the 90s when I was stopped by a Saints fan I know who said the rumour was that Souter wanted to invest £30,000,000 into Saints. Where he got his info from I’ve no idea, but I do remember Souter being interviewed on the radio and being asked if he would invest money into a football team that wore blue. I assumed it was Rangers interviewer was hinting at, as they were looking for money at that time.

[blueheaven]

Given Souter's funding of the Section 28 campaign I'm very, very pleased that he's never had anything to do with the running of our football club.

[Saintee in the Sun]

6 hours ago, blueheaven said:

Given Souter's funding of the Section 28 campaign I'm very, very pleased that he's never had anything to do with the running of our football club.

What was the point in that comment ? This is a thread about St Johnstone and Finances, not politics. 

[slf]

26 minutes ago, Saintee in the Sun said:

What was the point in that comment ? This is a thread about St Johnstone and Finances, not politics. 

Exactly .

maybe he got flung off soutar bus when he were younger for a wee misdemeanour 😃

[rik2304]

30 minutes ago, Saintee in the Sun said:

What was the point in that comment ? This is a thread about St Johnstone and Finances, not politics. 

Well....he's saying that because of Soutar dabbling in some unpleasant politics that he's glad he didn't get financially involved with St Johnstone.

[St. Paddy]

Lads... can we not descend into this again, please....?

[Indicator]

Aye, good idea, let's not.

[blueheaven]

1 hour ago, Saintee in the Sun said:

What was the point in that comment ? This is a thread about St Johnstone and Finances, not politics. 

The point is contained within the comment, and it's a point related to St Johnstone and finances.