Football distress across the Scottish Football League is up two thirds year-on-year with pressure concentrated on lower league clubs, according to the latest Begbies Traynor Football Distress Survey.
The six-monthly Football Distress Survey (as of 31 March), conducted by business recovery specialist Begbies Traynor since 2012, has again seen five of the 42 clubs (12%) in Scotland’s four top leagues showing signs of financial distress.
This is up by 67% year-on-year and steady since the last data was released for the period to October 31st 2024.
More than half of the clubs in distress in Scotland (3) were in League One and a similar trend was seen in the EFL, with distress shared equally between League One and League Two.
Both divisions saw two clubs showing signs of significant financial issues.
Ken Pattullo, who leads Begbies Traynor in Scotland and Northern Ireland, said: “We’re concerned that the levels of distress in Scottish clubs seem to be steadying at an unwelcome level, and the last year will be concerning for the coming season.
“We know that key overheads for clubs, such as wages, National Insurance costs, energy and food and drink products are much higher than a few years ago. The upcoming employment and tax additions to these costs will be on the mind of clubs and they will be looking at ways they can boost existing or build new revenue streams to counter these price increases.”
The English Football League saw distress rise by 100% year-on-year, with four of the 72 clubs (6%) in the EFL showing signs of distress, but lower than the six clubs reported six months ago.
Ken Pattullo continues: “In England we’re seeing a concentration of distress in the lower two leagues, strengthening calls for a more equitable distribution of the big-ticket TV revenues enjoyed by the Premier League and the Championship. That’s likely to be more ammunition for boards in League One and League Two when they meet with the Government’s new Football Regulator.
“Club owners and boards in the EFL will have to resist the temptation to get carried away and gamble on chasing Wrexham up the leagues. That is a remarkable success story, and great news for the profile of the club and the game as a whole, but we now need the spotlight to fall on those smaller clubs that don’t have these resources.
“Smaller clubs are a vital part of the football ecosystem and also the communities where they are based, and many could be in trouble in 12 months time if there isn’t more support from those with the lion’s share of the revenues.”