And it’s that time once again folks, to rip apart the take of a person that at every turn has shown their view is fully based on a hatred towards SMISA and SMFC. A view that completely blurs the truth, focuses in on individual snippets of information and completely ignores bigger pictures that show SMFC & SMISA in positive lights. It’s getting pretty easy to do this I must say, just look at some facts on published accounts and this post is hammered.
Yep St Johnstone do indeed have in the region of £2 million “cash in bank” noted in their 2018 accounts and I’m sure it is a rainy day fund... No mention from LPM that the figure is down after just ONE YEAR by almost £700k, pretty significant, it also shows the £150k loss is a bit of a red herring although a completely legitimate way of reporting. That tells me St Johnstone aren’t living within their means/ their risk appetite is higher than SMFC. What St Johnstone seem to mean when they say “rainy day” is struggles in the league, youth team requirements, Project Brave requirements, poor cup runs and weekend fixture changes. All of this is detailed in their annual accounts for all to read. The “rainy day” for them last season took in the region of 25% off their rainy day fund. I wonder what this season will do if their form continues? They also note in their account a bloated first team and some players on six figure salaries had a big impact. Every impression I’ve got from our current BOD and the old one is they are more prudent about the risk this can bring, even the signings in the two big January windows were manufactured in a way that we didn’t bust budgets. Imagine we had St Johnstones wage budget this season under the current circumstances?
Let’s look at SMFC as a comparison. Every single season since GLS took over we have recorded profit on the accounts. This includes a season where we avoided L1 football by the skin of our teeth. We also just and no more survived in the SP last season and I haven’t seen anything to suggest profit warnings. SMFC have according to their most recent accounts £500k “cash at bank” Not too bad at all for a team that haven’t had close to the decade St Johnstone have had.
LPM take is a classic example of have your cake and eat it. St Johnstone have gotten themselves in the position they are in through an aggressive growth strategy that has very much worked over the last decade. All fine when the sun shines but if 2017 to 2018 accounts are anything to go by, you can bet that £2 million will evaporate if their form continues and they get relegated to the championship. The accounts note the difference between top six and an eighth place finish, can you imagine the financial difficulty in a 12th place finish with the St Johnstone strategy? Sure we can do what LPM suggests and mirror St Johnstone, throw money at the team and hope for a few cup runs and a top end finish, if it’s successful I have no doubt we could get £2 million in the bank, if it’s not we could end up in massive debt as St Johnstone are risking right now.
Individual fans will have their personal view on our current slow sustainable growth strategy or this aggressive one. For me, slow and sustainable all the way, far too many examples of boom and bust. It’s working so far, let’s not forget the team has factually progressed every single season on the park since the new BOD came in.