BERWICK Rangers directors say that the club will have to cut costs after reporting a loss of £115,000 for the financial year ending on May 31st 2023.
And the club insist that a loss of that magnitude cannot be repeated, so changes are planned to prevent this happening again.
The club had hoped for a lucrative Scottish Cup run this year and booked a luxury coach, overnight hotel stay and lunch for the players ahead of the match against Brora Rangers but suffered a 5-1 defeat.
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The directors and management team, apologised to travelling supporters after the match for the team’s performance.
Following relegation from Division 3 to the Lowland League the club developed a three year plan to return to the Scottish league system via the pyramid system.
The directors now admit the plan is no longer achievable and say cuts are necessary and say that Stuart Malcolm, Dean Shanks and Thomas Scobbie will be part of the restructuring process.”
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The news was announced to fans in a club statement posted on social media which read: “The early Scottish Cup exit, combined with currently sitting mid-table in the Lowland League and the financial position the club finds itself in, means that the Board of Directors no longer feel as though the end-goal of this three-year plan is achievable, with urgent action required.
“Injuries to key players, the recent break-ins and away cup draws have not helped.
“Despite attempts to increase revenue to support an inflated wage bill – for the previous financial year the wage bill stood at 95% of the PLC’s turnover – the club now needs to cut costs.
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“Manager Stuart Malcolm has been included in our discussions as we have looked to address the financial position of the club.
“We remain committed to working with Stuart as he seeks to restructure his squad within a budget that will ensure the club has the playing and administrative resources to continue to operate.
“We fully believe in the coaching team of Stuart, Dean Shanks and Thomas Scobbie as we being this restructuring process.”
“The Board acknowledges there are ‘no quick fixes’ but takes encouragement from a 10% increase in average match attendances, a 26% rise in season ticket sales, a 31% increase in club memberships and a 160% rise in matchday takings.
“Significant work has also taken place in recent months to meet the Scottish FA’s licensing criteria and carry out repairs to the ground’s electrics, lighting, and now club shop following the break-in earlier this month.
“The club has also sought to generate new revenue from making greater use of its facilities, through a wider calendar of events, room hire, and the expansion of footballing activities through Berwick Rangers Community Academy.”
Rangers financial situation suffered further earlier this month following a break in at the club shop when large amount of club merchandise was stolen and significant damage was caused.
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