Relegation would hit Dundee United hard
Relegation from the Scottish Premier League would hit Dundee United hard, chairman Stephen Thompson has warned. His family would not go on ploughing in money into the club in the long term.
The club has the 3rd biggest wage bill in the Premier League and has spent £650,000 on transfer fees in the last 18 months which is, of course, a small sum by the standards of the English Premier League. Thompson blames their present plight on poor player recruitment last summer.
He notes that relegation hit Hibernian hard. Dundee United have the infrastructure for a Premier League club. We often think of the impact of relegation in terms of reducing player costs, but there are substantial non-playing costs as well. The dilemma is that costs have to be reduced in lines with revenue, but doing this in too drastic way can produce a downward spiral.