Scottish Premier League clubs collectively headed into profit for the first time in more than 10 years during the 2004-2005 season, according to a report by accountancy firm PricewaterhouseCoopers (PwC) published yesterday.
Clubs were boosted by falling spending in the transfer market -- but the figures were skewed by huge exceptional gains.
"For the first time in over a decade, the Scottish Premier League (SPL) has generated a profit after tax which is in stark contrast to the recurring losses experienced in the past," said PwC's annual Financial Review of Scottish Football.
Profit after tax for all 12 clubs in the SPL stood at £2.8 million (US$5.3 million) in the 2004/2005 season, with around half of the clubs generating a profit.
"Clubs are now feeling the effects of the financial recovery which began last year. But before we get too carried away it is important to understand that the results benefit from one-off credits which total £22 million," David Glen of PwC said.
"These include a £15 million accounting gain at Rangers, £3.6 million from debt write-off at Dundee and a similar £3.3 million debt write off at Dunfermline," he said.
Rangers, who were champions in 2004/2005, were key to the overall financial performance, according to the study.
"Although the main contributor to this position was Rangers, due to an exceptional gain, the majority of SPL clubs have seen their financial position improve over the period," the report said.