THE recent Brexit induced losses for the Pound against the Euro are set to provide Celtic with a second Champions League windfall.
Immediately after the bottom part of the UK voted to leave the EU on Thursday June 23, the Pound came under pressure against other major currencies, including the Euro.
This produced an initial Brexit windfall for Celtic on top of the £30m anticipated earning from competing in the Group Stages, which Celtic reached after negotiating three qualifying rounds in July and August.
By the time Celtic made it through the currency changes meant that an additional £3m was heading towards the East End of Glasgow, as UEFA payments are made in Euros.
Over the last few weeks Sterling has fallen further as a result of currency speculation in the Far East (10% fall) and increasing concerns over the Westminster Gorernment’s lack of any clear plan on how to impose Brexit on the UK.
The pound today is exchanging at €1.112 and at that level Celtic’s pot increases by a further £1.5m, with more likely to follow.
David Bloom, strategist at HSBC, feels the pound could fall to $1.10 by the end of 2017 and may hit parity against the euro, with the currencies last having been that close in 2008.
“The pound is now the de facto official opposition to the UK government’s policies. It is becoming clear that many European countries will come to the negotiation table looking for political damage limitation rather than economic damage limitation; a lose-lose situation is the inevitable outcome,” Bloom said.
The dangers of Brexit for the UK economy are clear but Celtic at least seem to be fortunately placed to make their Champions League participation even more lucrative in the next number of years.
A small but nevertheless ironic comfort for the support.