Data from the Football Distress Survey, conducted by Begbies Traynor since 2012, shows that four of the 42 clubs (9.5%) in Scotland’s four top leagues are displaying symptoms of financial distress.

Across the Scottish Football League financial distress is down by 20% year on year, and also in the last six months, according to the latest Begbies Traynor Football Distress Survey. In the previous two six-monthly surveys, five clubs were showing signs of distress as a combination of reduced consumer spending and rising costs impacted the sport.

Distress was concentrated in League One and League Two, with no clubs in the SPL and Championship showing signals of serious financial stress. 

Thomas McKay, managing partner of Begbies Traynor in Scotland and Northern Ireland, said: “We are seeing a gradual reduction in football distress in Scotland, which is welcome, but several of the lower league clubs are still finding it difficult to navigate this tough economy, and face a challenge to balance the books in the second half of the season. 

“Overheads such as non-player wages, National Insurance contributions, utilities and wholesale food and beverage costs are all still rising, and at a time when many households and individuals are tightening the purse strings through necessity.”

The English Football League saw distress fall by 50% year on year, with just three of the 72 clubs (4.2%) in the EFL showing signs of distress, a figure 25% lower than the four clubs reported six months ago.

Mr McKay continued: “In England the chunky TV revenues from the upper leagues really does seem to be trickling down to lower league clubs now, and, despite the high-profile failure of Sheffield Wednesday in October, the sport appears to be experiencing an easing of distress.

“The best opportunity for Scottish clubs to mitigate rising costs is to find additional revenues, whether through better utilisation of community venues such as event spaces, training facilities and hospitality areas, or by focusing on new revenues such as women’s teams and the new fans they bring.”