Details of loans made to Scottish football clubs: FOI release

Information requested

I'm looking for details of loans made to Scottish football clubs from the Scottish Government and its agencies in the last five years. Could you state:

• When the loan was given
• How much it was for
• When it is due to be paid back or if it has been paid back
• How much has been paid back so far
• What the purpose of the loan was and what budget/fund it came from
• Could you also detail the loans given to Scottish football clubs which have been written off - what the amount was and why written off.

Response

I enclose a copy of most of the information you requested.

While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because an exemption(s) under section 33(1)(b) of FOISA applies to that information.

The Scottish Government has the right to renegotiate the terms of its loan agreements with Football clubs, including changes to the timing or amounts of repayments, where a club is experiencing financial difficulties including cashflow challenges. The release of information indicating that a club is experiencing financial difficulties is likely to be interpreted by connected stakeholders such as customers, suppliers, and lenders, as a comment on the club’s financial sustainability and ability to meet its financial obligations as they come due, and is therefore likely to affect those stakeholders’ willingness to extend credit to the club or continue a business relationship with it. As such, the release of the specifics of clubs’ repayments to date or changes to their agreed repayment schedules is likely to prejudice that club’s commercial interests, and is withheld under section 33(1)(b) of FOISA.

The sum offered to each club and the date on which the loan agreement was signed by both parties is shown in the table below. Larger clubs were offered an increased credit limit when an additional £5 million of funding became available. Please note that the “Increased Credit Limit” line for the relevant clubs shows the cumulative total offered after the increase, i.e. it includes the initial credit limit.

Club		Credit Limit	Date Signed (SG)	Date Signed (Club)
Aberdeen	Initial Credit Limit	£1,818,000	25/02/2021	02/03/2021
	Increased Credit Limit	£3,119,000	24/03/2021	25/03/2021
Dundee United	Initial Credit Limit	£1,818,000	22/02/2021	22/02/2021
	Increased Credit Limit	£2,818,000	24/03/2021	26/03/2021
Hamilton	Initial Credit Limit	£1,151,000	22/02/2021	23/02/2021
	Increased Credit Limit	-	-	-
Hibernian	Initial Credit Limit	£1,818,000	22/02/2021	22/02/2021
	Increased Credit Limit	£2,882,000	24/03/2021	29/03/2021
Kilmarnock	Initial Credit Limit	£1,818,000	22/02/2021	22/02/2021
	Increased Credit Limit	£1,828,000	24/03/2021	25/03/2021
Livingston	Initial Credit Limit	£1,783,000	22/02/2021	22/02/2021
	Increased Credit Limit	-	-	-
Motherwell	Initial Credit Limit	£1,818,000	22/02/2021	23/02/2021
	Increased Credit Limit	£2,959,000	24/03/2021	25/03/2021
Rangers	Initial Credit Limit	£1,818,000	23/02/2021	25/02/2021
	Increased Credit Limit	£3,200,000	24/03/2021	25/03/2021
Ross County	Initial Credit Limit	£1,158,000	22/02/2021	22/02/2021
	Increased Credit Limit	-	-	-
St Johnstone	Initial Credit Limit	£1,818,000	22/02/2021	25/02/2021
	Increased Credit Limit	£2,600,000	24/03/2021	25/03/2021
St Mirren	Initial Credit Limit	£1,764,000	22/02/2021	26/02/2021
	Increased Credit Limit	-	-	-

The credit facility agreement specifies that the total amount borrowed is to be repaid in equal instalments starting on the 1st of September 2022, and ending on the 1st of August 2042. However, as discussed above, the Scottish Government can vary the timing and amount of repayments.

I can confirm that the total amount of repayments to date 2023 from all Scottish football clubs is £730k. This figure may be subject to adjustment due to the timing of receipts and further allocations through the Scottish Government’s accounting systems.

The loans were issued as part of a package of support to Scottish sport to help the sector deal with the unprecedented challenges created by the Covid-19 pandemic. Restrictions on supporters attending events were put in place in March 2020, causing severe financial problems across a number of high profile sports. Sports clubs across the country are at the heart of communities and, without urgent financial support, many may not have survived. Football in particular in Scotland is extremely dependent on supporter income, with the highest per capita attendance in Europe with gate receipts accounting for 43% of revenue – almost three times higher than the European average.

The Scottish Government launched the Emergency Scottish sport rescue fund which focussed on ensuring sustainability and survival in the short to medium term across all sports. Football was awarded £30m which was utilised to cover the entire Scottish Professional Football League structure and to support women’s football.

The loans came from the Financial Transactions budget, a type of funding allocated to the Scottish Government by HM Treasury. They can only be used to make loans to or equity investments in private sector entities. The funds must ultimately be repaid by the Scottish Government to the UK Government. To date, no part of any of the loans has been written off.

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