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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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
turkeybhoy,
“That’ll be 6 stars on the shirt now?”
Bsr
Has series 4 of boardwalk empire started on sky??
D D
Was it Bust & Boom??
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
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.
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
Mercifully unfickle
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
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.
Johan Murdoch
Who is actually going to own the hotel?
TT
Jude
Aye, bust on Saturday but boom today :) Red Pilgrim 2.30 50/1 3rd.
evening bhoys n ghirls
1st time on here in ages, what’s been happening?
HH
TT @ 22.00
The funds to repay the amount drawn down on the bank facility are sitting in the other account.
TT
I’m guessing those questions were rhetorical.
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)
Bundoran Bhoy- galacto-diddies overcame conditions that even ole Captain Oates wouldn’t go out in to thump Forfar 1-0.
johann
So Fergus’s ‘blueprint’ or ‘blueprints’ for the South Stand are still frozen peas?
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?
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?
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.
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
D D
Thats brill. Never saw that one but I did give my son 2 also ran’s. <:0(
http://www.youtube.com/watch?v=zxdxk0RpBQg
Clarence CSC
Hamiltontim
I have heard some whispers about Tony Watt. Not good. Hope and pray he can mature and realise his enormous potential.
Jude
Get back to that optician :)
DD
I genuinely hope so too he clearly has talent it would be sinful to waste it.
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
BSR-Ole Gyp Rosetti was an interesting character …….surprised at what happened to him…
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
Madmitch – you could be very right with that one
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
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.
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.
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
Johan Murdoch
So where would Celtic derive income from the Hotel.
TT
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
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