Back to black for Celtic

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19 years after last having money in the bank, all we needed was ‘Armageddon’ to allow Celtic to return to the black.

Despite a drop in income from domestic football turnover increased an incredible 47.7% to £75.82m thanks to participation in the Champions League, leaving a balance of £3.76m in the bank (after season ticket money arrived in) on 30 June 2013.

The profit for last season of £9.74m more than made up for the loss of £7.37m made when competing with others who were subsequently found to be unwilling (not just unable) to pay their bills.

This summer’s transfers were split between the financial year just reported and the current period, with a £9.66m investment in football personnel and £5.19m recouped from player disposal (clearly the Wanyama sale was post-year-end.

These figures are retrospective and would have read hollow if the club didn’t reach the Champions League again this season.  With that status achieved we are now in a remarkably strong position to continue to scout, recruit, develop talent and improve the playing squad.

More detailed analysis tomorrow.

1254125 at The Great Scottish Run.

On Sunday 6 October there is a 10k and Half Marathon.  If that is beyond you. There are family events taking place the day before. This is your club, remind the world of what really counts and get involved in 1254125.

The first thing you need to do is sign up for the Great Scottish Run, or here for one of the family events.

Once you’ve done that, you can register for the 1254125 campaign here.

Then you can create a donations page here.  Click Start Fundraising, search for Celtic Charity, setup your My Donate account).

Email me and let me know if you are having trouble signing up or need any more help, celticquicknews@gmail.com.

To read the new issue of CQN Magazine click here (don’t try to read the graphic below).
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592 Comments

  1. The Battered Bunnet on

    PFayr

     

     

    The answer to your question is most probably in the quote from the annual report as follows:

     

     

    ” “The Group and Company has a £33.49m facility with the Co-operative Bank of which £12m is in the form of overdraft and £21.94m in long-term loans. £10.97m (2011: £11.34m) of the loan facility is required to be drawn down for the term of the facility agreement.”

     

     

    In other words, in order to have access to an overdraft facility to manage cashflows, the club is required to have drawn down £10.97M of loans on which we pay interest.

     

     

    Were the club to repay the loan (without penalty) they would simultaneously lose the overdraft facility, something I imagine that the club would prefer to have on hand.

     

     

    The reason that one is tied to the other is fairly straight forward: The overdraft ebbs and flows as business fluctuates. The bank get nothing if the account is in credit, such as it is mostly these days. In order for the bank to make a little dough – £173K annually – it insists that the club uses the loan before the overdraft.

     

     

    At year end the bank owes us £3.7M when you net off the account balances against the loan. Football though is a fickle mistress, and tends to dip yer wallet periodically and without warning, hence the need to have a secure borrowing facility. The cost of the facility is the interest on the loan that isn’t needed.

     

     

    Hope that helps.

     

     

    TBB

  2. Redevelopment of the main south stand would cost in the region of £6m or more

     

    ( the board might have to share with the gb during construction :))

     

    Planning consent was applied for and I believe obtained for the arena site opposite the London road school it included a £11m hotel development shops but mainly large scale bars and restaurants which the developers ( London based)hoped to attract operators like JDW Wetherspoons , Belhaven greene king and other well known licensed trade operators , overall I believe the overall scheme build cost was to be in the region of £18m .

     

    I think it is now mired in legal dispute with Glasgow council about assurances regarding contaminated land clearance of the site .the developers were very enthusiastic about the viability of the hotel .

     

    I am not sure that Celtic plc would be planning redevelopment of the triangle area to that extent .

     

    Hh

  3. Just catching up on blog from my sick bed. ..man flu.

     

    I sit in main stand FS2 with my kids aged 15 & 10. Seats are great value.

     

    However, Food and drink rubbish and over priced.

     

    Cold drinks either flat or too warm

     

    Hot food – poor quality.

     

     

    Lastly, why are there so few kiosks in main stand? The queues are shocking.

     

    When at the Stan game a couple of weeks ago I sat in where our away fans usually sit. There were about 5 very large catering stands with no queues to speak of.

  4. monaghan – consider spleen vented, step daktari down one defcon level

     

     

    NTB

     

     

    Re: Celtic Post Preliminary Results

     

    The question everybody should be asking is, with all these profits will they be paying any corporation taxes ?

     

     

    Can we frame this one – it’s beyond priceless

  5. The battered bunnet.

     

     

    21.49

     

     

     

    Surely as our financial position improves there is less need for an overdraft .

     

     

    Also .

     

     

    Where are the funds being built to repay the original capital borrowed at the end of the loan term?

     

     

    TT

  6. maleys

     

     

    Nobody on here seems to know what I’m on about, so I presume not, and it’s still in the USA

     

    or in lower East Kilbride………… for Pirates.

     

     

    HH

     

     

    Aaaaaarrrggghhhh CSC.

  7. TT @ 22.00

     

     

    The funds to repay the amount drawn down on the bank facility are sitting in the other account.

  8. The Narrowbhoat Tim on

    I’m very confused by all kinds of information on the web saying we are in debt, most of it is posted by zombies trying to discredit our healthy position at the moment. No the club’s accounts released today might as well be written in Chinese as not being a financial wizard it means nothing to me, I suspect that goes for over 90% of the posters on this saintly blog too. All I think i know is Celtic has lots of money and the Sevcovians have Bleedin’ Piles. So I’ll leave it to an old post from Phil Mac from a few months ago to counter the Zombies argument. I trust Phil’s view more as he got most things right the last few years.

     

     

     

    The seductive power of pish

     

    Posted by Phil Mac Giolla Bhain

     

     

    A few days ago the Fitba internet was rocked by a really great story . It was front page stuff. Breathlessly we were told that Celtic were effectively bankrupt! The details were impressive.

     

     

    Apparently a huge amount of debt had been hidden in the small print of the Parkhead club’s annual report. Subsequently the writing was on the wall for Celtic. However, there was only one problem with this story. It was pish.

     

     

    This is probably an object lesson in why people who can’t read a financial statement shouldn’t be allowed to randomly pick numbers and throw mud.

     

     

    As with the Rangers financial story I asked qualified people who work in accountancy to tell me what was what.

     

     

    I ran the piece by several smart cookies in the number crunching world and here is what they told me. Firstly two of them focussed on the following key statement: “d. Cross guarantees Cross guarantees exist between the Company and its subsidiary undertakings. The extent of these at 30 Jun 2012 was £ nil (2011: £nil).”

     

     

    This means that there are no sneaky special purpose entities hiding debt off the main balance sheet. Celtic’s effective debt- including cash owed to trad creditors AND trade debtors (you cannot discuss on without including the other)… is currently £2.5m.

     

     

    Once more dear reader that means that Celtic’s REA DEBT is two and a half million pounds. The club’s 30 June final year-end accounts are due to be published at the end of this month. However Celtic are usually a couple of weeks early. Insiders told me to expect a positive figure apropo indebtedness

     

     

    in these accounts. The 30 June figure will depend on when the first tranche of the Wanyama money was paid etc

     

     

    Since this break even model was fully implemented in 2005 it has suited Celtic, for accounting purposes, to slightly in debt at the end of the year. The rest of the stuff in the piece, I was told, was merely a product of the author’s consistent failure to read the footnotes correctly- “Of the available bank facilities of £33.94m (2011: £34.69m), of which £21.94m is represented by long- term loans and £12m by overdraft, £22.97m (2011: £23.34m) remains undrawn at the balance sheet date as follows:” What then follows is a listing of the credit still available (undrawn) not current debt.

     

     

    It was impressed upon me that the stuff about the

     

    effective debt created by the existence of the debt

     

    element of the Convertible Cumulative Preference Share was important to understand. Moreover this was already accounted for correctly on the

     

    Celtic balance sheet. I was told that the interpretation depended on wha question was being asked. “If you’re asking about basic shareholder equity, you ‘capitalize’ the projected future interest payments and show them as a lump sum debt on the balance sheet. Celtic already do this. However, that is a lump sum that will never be paid/ repaid. Celtic only pay the dividends on the preference shares when they can afford to and the club can stop payment if they have a bad year and it will not trigger any kind of claim. So when calculating the effective debt of the club to look at solvency, you wouldn’t include money that does not have to be repaid- like debt element of the preference share dividends and accrued liabilities like pre-payments for season tickets.

     

     

    We don’t include these when we look at Celtic’s debt and we didn’t do it when we looked at Rangers’ debt.

     

     

    In short this entire storm was kicked up by people who didn’t know what they were looking at. “ So until someone can unearth some real evidence then the jury isn’t out on this one.

     

     

    Basically the Tic doesn’t need tick, but they can get it they want it. Sevco, on the other hand, can’t get credit from anyone. For customers of the Ibrox franchise, their desperation to

     

    take the shine off Celtic’s current robust financial health is entirely understandable. However, what I found striking was the immediate response of Celtic supporters to the possibility that there

     

    might be bad financial health at their club and that they might not have been given the full facts. As for myself if I had found any convincing evidence tha there was any basis for this story I would today be doin a reasonable impression of an Australian at Gallipoli.

     

     

    However, there is no need to dig on this particular financial peninsula. The Celtic family’s greatest virtue is the almost permanent state of suspicion about everything that happens in the club boardroom.

     

     

    The Green half of Glasgow has an almost Jeffersonian distrust for those who wield power.

     

     

    Meanwhile the Honourable Society of Rioters and Window Kickers appear to be highly vulnerable to any Brogue Trader who decides to swoop down on Edmiston Drive.

     

     

    The reaction of the Celtic tribe across social media to this story is a very powerful example of what Rangers fan should have done several years ago.

     

     

    However, as we know, they didn’t.

     

     

    (apologies to Phil as the paragraphs got mixed up when I copied and paste)

  9. Dontbrattbakkinanger on

    Bundoran Bhoy- galacto-diddies overcame conditions that even ole Captain Oates wouldn’t go out in to thump Forfar 1-0.

  10. JM @ 21.56

     

     

    The developers you speak about are playing games.

     

    They tried to blackmail GCC into giving them a subsidy to develop.

     

    Give us the money / reduce the asking price or you will be left with an eyesore come July 2014.

     

     

    The C+B story they put out was pathetic.

     

    If the land is so contaminated why was the arena given the OK?

  11. Paul67 et al

     

     

    Off the top of my head, ( and that is not descriptive), I ‘m pretty sure Celtic had a similar turnover around ten years back, maybe Martin 2003-2004. That of course was achieved in a different economic climate than the one facing us right now, so well done Celtic. We know, that when the club becomes a business you need, in some respects at least, to behave like one. Or as they say over Ayebroke way ” there is no business…. like no business” and when there is no business the club dies. When is liquidation day anyways?

  12. Hamiltontim is praying for Oscar on

    Re Tony Watt I don’t think the bhoy has the inclination to turn around his current poor attitude and lack of application.

     

     

    Sadly from what I know he’s a bit of a daftie and it’s evident that nobody within Parkhead or Lennontown has been able to convince him to change his life around.

  13. #Fearless Wee Oscar is on a Celticrollercoaster on

    CQN Predictor (week 6)

     

     

    Position Lst week Team Manager Week 5 Sept Pts Total Pts

     

    1 (2) Gohome Yahuns stevenagebhoy 54 168 293

     

    2 (1) Koln Hoops Kolncelt 42 159 291

     

    3 (6) Bayern Bru Twists n turns 45 165 276

     

    4 (9) Giffnock Old Bhoys gscbhoy 50 156 274

     

    5 (4) Kikinthenakas Kikinthenakas 40 167 273

     

    6 (3) Celtic Under Ninety Team Paddy Turner 34 149 271

     

    7 (5) Were on the one road Colts Cowiebhoy 35 139 266

     

    8 (11) Del Monte Shamrock jammabhoy 47 137 266

     

    9 (7) Chocolate Bhoys McFudge 37 137 266

     

    10 (14) Kiwinning Dangers BMCUWP 50 155 266

     

    11 (10) Mcdowells Bhoys mcdowellcelt 42 166 265

     

    12 (8) Hillend Rockies Slabhoy 38 145 263

     

    13 (15) Kayal33 Kayal33 47 159 262

     

    14 (26) celtic1888 Murdoch, Auld and Hay 55 158 261

     

    15 (17) Norfolk Enchants Sponsored by Cheetah 48 153 259

     

    16 (29) Looney Tunes Celticrollercoaster 52 150 256

     

    17 (28) Nitrams 11 ncmjc 39 143 255

     

    18 (50) Setting Free the Bears Setting Free the Bears 62 171 255

     

    19 (13) Maybe Next Year…………… Penfold 37 136 255

     

    20 (36) epl overated hmack 51 149 254

     

    21 (40) Jessica Rabbit Mrs CRC 53 136 254

     

    22 (45) Billys Boots Lionsroar67 58 156 254

     

    23 (18) Thom’s Sellick Thommybhoy 35 145 253

     

    24 (39) Set Phasers to Malky Jeez_I_thought_blinker_was_pants 51 157 253

     

    25 (20) Minx 1888 Minx 1888 43 148 253

     

    26 (12) 7-1 4-2 6-2 Travelbhoy 34 140 252

     

    27 (21) iPaddys Plodders iPaddyMcCourt 43 140 252

     

    28 (43) ColleensBhoys Leftclicktic 53 146 251

     

    29 (22) celtic 67 Deccyrollercoaster 42 147 250

     

    30 (51) Angola CSC thecelt45 47 129 250

     

    31 (27) Dougies Donkeys DougC 44 142 250

     

    32 (19) micktic 3mick3 39 125 249

     

    33 (38) Hurdles Huddlers bognorbhoyle 47 144 249

     

    34 (24) Green and Whiteley Murdoch, McGrain and Larsson 40 121 248

     

    35 (42) FC Pasch(ing) praecepta 49 158 248

     

    36 (30) Evergreen The Lurker 43 139 247

     

    37 (32) ruggyvogue c.s.c. voguepunter 43 142 247

     

    38 (37) Rodfather Rovers Row Z 42 133 245

     

    39 (44) Meiklehill Rovers Mayanman 46 147 244

     

    40 (16) The NoNames Kingoh 32 147 243

     

    41 (25) Hail Hail Rain or Shine FC Jobo Baldie 36 134 243

     

    42 (23) EK Green & White Army Kelvinbhoy 33 134 241

     

    43 (31) The Exiled Tim The Exiled Tim 37 156 241

     

    44 (41) MARCELONACELTIC F C Mhark67 40 134 241

     

    45 (33) Imran’s Maw Dick Byrne 37 142 241

     

    46 (35) Hopeful Hoops Bobby Evans Superstar 37 133 240

     

    47 (49) Dim Sam’s Tims Dim Sam 42 150 236

     

    48 (46) lubosleftpeg castlebhoy 39 134 234

     

    49 (54) Somerset Harp Gherrybhoy57 43 148 233

     

    50 (56) The Dukes of Montrose Celtic Mac 47 145 232

     

    51 (53) Donny Gaels Bradbhoy 40 120 230

     

    52 (57) Athenry bhoys stpatricksbhoy 47 147 230

     

    53 (61) Frank’s Frantic Eleven Celtic Soul Brother 57 153 229

     

    54 (52) Death or Wamba? Ard Ri 38 128 228

     

    55 (48) Rossini Sammi the Hun Skelper 33 142 227

     

    56 (47) Acacia Milan Doubting Thomas 32 135 226

     

    57 (55) thebhoyfromoz thebhoyfromoz 40 127 226

     

    58 (58) Celtic rose Caityrollercoaster 39 112 219

     

    59 (64) Lennys Lions The Lizard King 50 142 219

     

    60 (62) Heaven Albert Kidd 45 126 216

     

    61 (59) Weißbier X Pogmathonyahun 31 110 211

     

    62 (66) Bannockburn Bhoys Doc is Neil Lennon 51 129 210

     

    63 (63) Lennys Bhoys Lennybhoy 37 121 206

     

    64 (67) Dan City Dan 45 113 204

     

    65 (34) Diamonds B-Boy 0 104 203

     

    66 (72) Googys Globetrotters Googy Bhoy 52 107 203

     

    67 (60) Bada Bing Bada Bing 28 90 202

     

    68 (68) Jonny the Tim Jonny the Tim 43 136 200

     

    69 (69) Glasgow Brazilian Mouldy67 32 127 197

     

    70 (71) Belfast Celtic cliftonville celt 43 85 195

     

    71 (73) Gordybhoy Rovers Gordy Bhoy 64 45 131 195

     

    72 (70) Roughrigg Brushers GG 40 89 194

     

    73 (76) Dreamchester Athletic Blantyre Tim 49 77 185

     

    74 (75) Jinky’s Giants Johnbud78 41 80 184

     

    75 (74) RalphWaldoEllison X1 RalphWaldoEllison 28 95 176

     

    76 (65) Dark Horse FC Stephen Black 0 88 168

     

    77 (78) Sipsini Sipsini 36 73 156

     

    78 (77) Patrick Missal Patrick27 29 58 152

     

    79 (79) Port Brigade Saint Stivs 26 77 128

     

    80 (80) Berocca Juniors The Pips XI 37 37 124

     

    81 (81) Real Ale Madrid The Token Tim 39 89 89

  14. Hamiltontim

     

     

    I have heard some whispers about Tony Watt. Not good. Hope and pray he can mature and realise his enormous potential.

  15. Hamiltontim is praying for Oscar on

    DD

     

     

    I genuinely hope so too he clearly has talent it would be sinful to waste it.

  16. TT- hotel would have been owned by developers and operated under managed contract by Tulip hotels

     

     

    Bsr- I think it was a firm of Edinburgh architects that redesigned the frontage to what it is now – I believe they also produced a proposal for demolition and complete rebuild of the main stand – so still ” frozen peas ”

     

    A new proposal would be required to be drawn up to comply with current building regs- it might already be sitting there though can’t see this happening whilst other areas of the stadium remain unfilled- most likely to occur if we moved to another league hh

  17. #Fearless Wee Oscar is on a Celticrollercoaster on

    Wee Oscar Update from family via facebook

     

     

    “We haven’t updated on here in a while. Just to let everyone know Oscar has had a very rough couple of weeks since starting his new chemotherapy (mostly unable to get out of bed) but he’s improving a lot the last few days & this was him just now! Keep er lit Oscar!! ”

     

     

    Wee Oscar- Celtic Warrior, check out the pic!

     

     

    https://www.facebook.com/#!/OscarKnoxAppeal

     

     

    HH

     

     

    CRC

  18. BB/Madmitch

     

     

    I believe it is quite simply more tax efficient for Celtic and financially more flexible for them to offset these so called loans.

     

     

    The notion that we are in longer term financial peril suits the mindset of The Zombie,but is just an accounting illusion.

     

     

    I am being a wee bit mischievous (:-)

     

     

    TT

  19. Dontbrattbakkinanger on

    Nazza- we have debt but it is not running out of control; we are doing what we can to keep it that way.

     

     

    This may explain the Board’s reluctance to splash the cash on the ole squad.

     

     

    They were killed by debt and enjoyed the experience so much they are goin’ hell for leather down the same road.

     

     

    The bus.

     

     

    Staying in 5* hotels en route to Stranraer.

     

     

    The historical tragedy/farce cycle they are on is gettin’ shorter.

  20. TET,

     

     

    I agree with all.You myself and others were called”Mineshafters”because we dared to say that the board were gambling with CL qualification.The figures released today,should show to everyone,that this situation should never happen again.Without CL money we struggle badly to balance the books.I said it then,and will say it again,to go into the qualifier with no replacements for the 3 that left was madness,that nearly cost us a place.

     

    In future,I would hope that all contracts that are in dispute should be sorted out in the January window,and replacements brought in.With us having to play qualifiers there just is no time to bed in replacements.If we are intending to sell players in the summer,get replacements in January.The CL money is vital.To gamble with it is a nonsense.

  21. Zbyszek mówi, trzymaj się Oscar on

    Setting Free The Bears

     

     

    Are you about?

     

     

    I sent you the question via Skype regarding things we discussed last time we have been there. I hope things went well for you.

     

    On another matter, I remember that you are Jazz music fan. My knowledge of jazz is suspect and my interests in this source of music is rather occasional. My usual tastes are closer to Led Zeppelin, except the days when I’m back from public places where people run with Rihanna’s Umbrella Shmella and I need to balance it with Avenged Sevenfold, Skid Row or Metallica. Anyway, today I listened to Fela Kuti & Ginger Baker live album and thought it was sort that you liked and knew. I checked Fela Kuti discography and found the list of albums very interesting. He seemed to be the prophet who circumscribed/predicted Rangers history and future many years before he passed.

     

    I don’t know much about Rangers but could put dash after album name and write something near each of them.

     

     

    Live !

     

    I Go Shout Plenty

     

    Ikoyi Blindness

     

    Blue Fever

     

    Beasts of No Nation

     

    Kalakuta Show

     

    Roforofo Fight

     

    Open & Close

     

    Everything Scatter

     

    Why Black Man Dey Suffer

     

    Before I Jump Like Monkey Give Me Banana

     

    Noise for Vendor Mouth

     

    Observation No Crime

     

    Upside Down

     

    Opposite People

     

    Teacher Don’t Teach Me Nonsense

     

    Confusion

     

    I.T.T. (International Thief Thief)

     

    Expensive Shit

     

    Unknown Soldier

     

    Fear Not For Man

     

    He Miss Road

     

    No Agreement

     

    Stalemate

     

    Coffin for Head of State

     

    Army Arrangement

     

    Shuffering and Shmiling

     

    Sorrow, Tears and Blood

     

    Authority Stealing

     

    Original Sufferhead

     

    Zombie

     

    O.D.O.O. (Overtake Don Overtake Overtake)

     

    Confusion Break Bones

     

    Just Like That

     

    Underground System

  22. Hamiltontim

     

     

    Such a shame, the boy has real potential too.

     

     

    I went to school with a young fella who got trials with Spurs, Sunderland, Everton and a couple of other top flight clubs down south, the three mentioned all offered him a deal, he wasn’t interested, didny want to leave his Mammy, and couldn’t take an order or a dressing down.

     

     

    It seems that with all the money and glory on offer these days, you would think that the young fella would apply himself, but maybes, scoring the winner against Barca was enough, I hope not, he has it in him.

     

     

    HH

  23. johann

     

     

    Thanks – deep frozen, methinks.

     

     

    Alas, 1971 for the slanty roofed Fraser Forster ball retaining ‘Dansette Radio’ is unlikely to thaw, even under the Triangle regime.

     

     

    Maybe we should start a L.O.D theory cliche Lifetime of Domination to supersede G.O.D.

     

     

    Just to get things moving CSC