You want to know the value of Celtic winning the league last season? We went to Ibrox in April needing a point to stay in the race. The point came and Philippe Clement celebrated. The fool. He followed that with defeat at Dingwall and a draw at Dundee. The man alliterated his club into a crisis as Celtic won the league.
The rest of this article is a consequence of Celtic winning that title.
A £17m loss is never good, but context is important. The context Newco published that figure yesterday is truly awful. The best that can be said for them, is that the season in question is behind them. What’s more important, is the present and future. That is where we go from the awful to a familiar precipice.
Operating loss for the year to 30 June 2024 was £8m, this is before player trading, interest and exceptional items. Amortisation was running at £11m, it should be higher this season, as they spent £16m on players over the summer, but let’s assume a constant £11m. If you are keeping a tally: £8m operating loss (from continuing operations), plus £11m, puts us at £19m.
Then there’s interest, which doubled to just shy of £4m. I’ll use the same figure again, to push our tally for this season to £23m. Last season they made the Champions League playoff round, which between the bonus fee and matchday revenue earned in excess of £5m. That cash did not materialise this season, so we need to claw that money back. So far, we are looking at a £28m deficit for this season.
Record income for the club was achieved by reaching two cup finals (winning one), topping their Europa League group and progressing to the last 16 of that tournament. That’s a whole lot of prize money they might not earn this season, but let’s assume they reach both domestic finals again.
They have the same number of European tournament-proper games guaranteed (four) and I expect them to progress in the Europa, so add £2m income from that source, pushing our deficit tally to £26m. However, I’m going to claw that back for Hampden costs (though I expect they were higher), so back to £28m.
This season, they have sold players for close to £1m (tally: £27m). Some high earners left the building (Goldson, Lundstram) but those £16m new arrivals are not in town for the weather, so I expect little variance in basic wages.
We made several assumptions above. They will not reach two and win one cup final. They may not progress out of the Europa, but they may reach another final(!). Notwithstanding vagaries in fortune, Newco are looking at a deficit of £27m this season, minus any sales income they generate in January, or drop in player wages.
They are a club already operating under Uefa supervision and subject to the same Financial Stability Regulations. Remember, Uefa banned both Milan and Juventus from European competition in the last five years. FSR regulations have teeth. Irrespective of Uefa regs, they still have to finance their operations.
Season ticket money arrives in May and June, so football clubs’ bank balance reported at 30 June is close to their high point. To a great extent, clubs have to live off that money until season ticket cash arrives the following year. Newco’s bank balance at 30 June was £1.7m (Celtic: £77m), which on average equates to six days spend for the club last season. No wonder John Bennett slipped out of the building.
There is a way forward. Sell everyone earning over £8k per week. Compete for players with Aberdeen and Hearts for five years and ask the fans to buy season tickets anyway. Be smaller, pay bills out of income and they get to survive. The cost is watch Celtic win pretty much all the time, but honestly, they are watching that anyway, so what’s the difference?
It will take one of them to have the hard conversation with the fans. Something like, “We’re broke, we cannot compete at elite level in Scotland, but we will stay in business if we spend a lot less.” There is no sign of that happening. Telling football fans their club needs to live within its means is a thankless task, ususally met with agressive opposition. Better this, than insolvency, though.
This stuff affects people. You and I get to celebrate a successful team, get to win more trophies than anyone else in world football. It is a gift modern Celtic gives us and we sure appreciate it. Others carry an enormous cost for the actions of various directors and fan agitators of Oldco and Newco combined. If ‘Rangers supporters’ really cared about their club, their next banner would read, ‘Live within your means and we will still be here’.
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GlassTwoThirdsFull on 30th October 2024 1:23 pm
“newco” accounts on the day of a game (or any other day for that matter)? Oh dear…..
I would maybe make two changes. Kuhn for Forrest. I’d also bring in Engels for Maeda. I’d like to see him given a go in a Jota-type role and this would be the perfect kind of game to try it.
——————-
Your point is well made and to a certain extent I agree with it.
However, isn’t there always a however? – The Ibrox accounts are ‘fresh’, and like it, or, not, what they are doing and saying always affects Celtic in one way, or, another, and to one degree, or, another.
Ibrox is the only serious threat to our domination and well being. I wish Aberdeen could be a strong contender on an ongoing basis; if it was then we would take a greater interest in what it does, what it says and how it manages its business.
We will must again be duped and subdued by financial shenanigans in the way we were in the years up to the 2012 meltdown – that means indulging in scrutinous perusion of everything that comes out of ‘the big hoose’
‘Litigation free'( ) is the cry – we know that it really means (until the next time).
I’m looking forward to the game tonight and expect the only stressful moments will come from monitoring the ‘other game’ out of the corner of my ear. HH
*We will must never again be duped – sorry
Great article Paul, enjoyed it.
That awkward moment when no getting sued is a positive
TexasTim – Have a wonderful day. Congratulations to you and your good lady.
BSR – It’s like that old loaded question…
Well Mr Sevco, have you stopped defrauding your partners yet?
Could someone post that clip of the bigots doing the last post without a bugle. Told my mate about it and he is desperate to see have a look
https://x.com/geraldo874/status/1850863014246838530?s=46&t=ucZWBmwe1a7eYdxmJtf-qg
TIM MALONE WILL TELL 👍
From a brief perusal of the Hun fan sites it appears that the main body consider the figures to be acceptable with a minority group recognising the dangerous narrative within these figures.. The MSM have been in action to report the good part in these figures and have highlighted that the various litigations have been settled.
We hsve various Celtic Bloggers offering good advice on how Sevco should reform. Now no Sevco fans will believe what Celtic blogs say about their club. So I ask that we STOP IT.
We should not offer them any advice, particularly sound and logical advise. We should criticise and make fun of them but not offer them advice. Certainly not good advice.
Let them stew and encourage more of the same.
BSR@2:47
Brilliant 👏 👏 they fail to realise how stupid that looks 😅🤣😂
Bus in just over an hour, so mince & tatties with a bottle of Melbec opened 🍷👍
And there is nobody in their community who can say what paul67 suggests. They are, I think, saying that they are badly run, in chaos, skint but cannot bring themselves to state the obvious.
Thon Orange human bugler also apparently does a very moving rendition of Oh Mein Pa Pa.
Hun sites are delighted with higher ‘Revenue’ – haven’t a scoobie – they seem to think Revenue is income. Some of them grasp the difference between Revenue and P and L – those that do can see the train coming.
Guys,
If we must discuss the huns and their failure , I admit its good for a laugh and brownie points But the pertinent point is:- what does it mean for us ?
The huns will eventually be forced to accept reality and that means downsizing.
If we focus on domestic football we will enivitably follow suit. There will be no major infrastructure upgrade etc.
However we have an alternative focus. European football must be our number 1 priority without exception.
It is our only arena that will move forward.
HH.
the budget –
gb news, an oxymoron if everthere was one.
rolled out a staunch ulster farmer there who is complaining that he might not be able to pass on his plantation inhertince because, the land, the stock, the farm machinery . the buildings are easily worth £4 million so they would be taxed when he dies,
he could always retire to ayrshire before the tax comes in. what a shame for them.
i just thought of a cunning plan, why dont all them ulster farmers get together and buy rangers.
Beaton will book Shinnie first 10 minutes, 9/4 Skybet BTW, he’s their driving force,and it will take the sting out of Aberdeen
Scotland’s Coefficient
@scotlandscoeff1
💰📊 RANGERS Vs CELTIC FINANCES 📊💰 (3 mins reading time)
📊 Some graphs to compare the finances and the way the two big Glasgow clubs have been run, starting with the most important – revenue.
https://x.com/scotlandscoeff1/status/1851423860651901347?t=RN644qfSO-8m8rYCCa15TQ&s=19
Saint Stivs,
You have often stated that you have family history from the dark side.
Could that ” poor” farmer be a long lost relation? 😀
Good point BD – look out for alternative ‘game management ‘ with respect to shinnie kicker
Greenpinata on 30th October 2024 4:06 pm
Saint Stivs,
You have often stated that you have family history from the dark side.
Could that ” poor” farmer be a long lost relation? 😀
————
if he wants to leave the farm to me then aye
https://x.com/stuartbass/status/1851642166407270681
I know the story is aging … but this comment cracked me up.
Well, we have been down this road before…..
While we might look forward to Jelly and ice cream, I am not looking forward to:
Lenny back as coach;
20,000 empty seats;
Possibly no European football for any Scottish club.
Weeron
What did Jay-Z call his wife before they were married?
Feyonce!
I’ll get my coat. 😳🤷🏼♂️
Sorry, that was meant to quote this first. Oh well!
BOURNESOUPRECIPE on 30TH OCTOBER 2024 12:02 PM
Beyoncé
Sevcos 1st name on the teamsheet….
Beaton.
Some Tims might want to think about their voting habits according to this excellent Priest.
This Priest, Father Joseph Morgan CPM, in effect is saying that Tims are woefully out of touch with who they are meant to be.
https://x.com/polishprincessh/status/1851041767342141848
Full version here.
https://youtu.be/YVp9_aFUsWI
You’ll need to ask OJ if there is a workers party in America.
More of this please.
Last Superbru call for
A thing of beauty
James Cant
McCaff
Melvin Udall
Tirconnell
Tooting Tim
DR hotline had I presume a journalist saying they are still paying GIO and Beale
2021 Autumn Gerrard away
2022 Autumn Gio away
2023 Autumn Beale away
2024 Autumn ?????
Imagine spin next year “but we are paying managers position
£10M a year highest by far in Scotland for manger”
No mention managers position is present manager ( plus Gio Beale and Clement) :-)
I think we may start with Ralston, CCV and Kuhn
MELVIN UDALL @ 4.24
I see what you did there 👍
Pa pa pa…..(childish giggle)
#dontletitdie
Take away the COVID years and this is comfortably their biggest loss. As Paul67 says this year will be worse
They seem to be getting worse at running their football club.
Saint Stivs.
Great reply earlier 👍
HH.
Folks
Our Annual report has been on line for weeks.
I’ve mentioned it a few times on Sentinel Celts and here is one of my comments in respect of Celtic in a 2023 AGM video interview with Michael Nicholson and Chris McKey speaking about football as the core business that improves finances which is repeated in this years AGM report as well as the part Celtic played in the development of FSR (Financial SUSTAINABILITY Regulations Paul – and FFP is deid like RFC.) There are links in the following.
A poster commented.
Human nature being what it is, those PLC suits who will populate the top table at next month’s Celtic AGM, may find it difficult to resist the temptation to gloat. Giving it the smug why are we so good narrative. As Roy Keane might say, they are only doing their jobs. Jobs they get very well paid to do.
==========
I replied:
They may gloat at a private meeting on the focus on football to improve finances and
hobbling R2ngers ability to pay players with non football money via FSR, but in public have said in the AGM report to shareholders this on both subjects.
STRATEGY, THE BUSINESS MODEL AND OBJECTIVES
The Group’s objective is to create a world class football club through our strategy and business model for growth focusing on three key areas:
(i) ) Core Business – football operations with a self-sustaining financial model, relying upon: youth academy; player development; player recruitment; management of the player pool; sports science and performance analysis; AND football success.
(ii) Development of the Celtic Brand – incorporating the Celtic Park Masterplan and the development of international revenues.
(iii) Improvement in the football environment in which Celtic plays – representation within football governance and administration at domestic and European level.
The latter is confirmed in another AGM Report statement re football governance at European Level.
“Secondly, UEFA introduced significant enhancements in financial governance by introducing new Financial Sustainability Regulations to replace the previous Financial Fair Play Regulations.
These are being introduced on a phased basis from summer 2022 and have the effect of introducing more rigorous spending controls and more definitive sanctions in order to create a sustainable future for the European Club environment.
Celtic played a significant role at a strategic and technical level in the development of the new regulations, continuing to demonstrate our strategy of participating and contributing to the future of the game at the highest level.”
I hope that those who disputed Celtic should get any credit for FSR read the foregoing and either accept the basis for the hobbling narrative was sound or base their argument on a more credible view than Shareholders/supporters are being lied to in The AGM Report which is at
Celtic_Annual_Report_2022.pdf.
Further on football taking precedence TGM posted a link
https://youtu.be/jCAVq2wNxvU?si=y_ZhWmqIHVFeR20Z
to a video, 50 secs in, from the 2023 AGM where the change in emphasis was clearly stated and performances on the park since suggest the support were being told the truth.
The latest AGM report basically repeats what supporters and shareholders were told in 2023 which remains the same because there is evidence that Celtic are doing what it said on the 2023 tin.
I totally accept that under the Strategy PL worked under the emphasis on balancing the books affected the quality of players signed under that policy, but I am open minded enough to see that as the circumstances that dictated that policy have changed I am prepared to recognise that the much maligned Board do have the kind of strategical thinking that I became familiar with in my working life and which influences my perception of reality.
Not that I am a Board sychophant/mineshafter/or any of the divisive labels attached to my comments.
I just like to share how I see things either for or against The Board without fear or favour.
Just like everyone else.
GREENPINATA on 30TH OCTOBER 2024 3:54 PM
Guys,
If we must discuss the huns and their failure , I admit its good for a laugh and brownie points But the pertinent point is:- what does it mean for us ?
The huns will eventually be forced to accept reality and that means downsizing.
If we focus on domestic football we will enivitably follow suit. There will be no major infrastructure upgrade etc.
However we have an alternative focus. European football must be our number 1 priority without exception.
It is our only arena that will move forward.
HH.
A number of salient points there.
Just a couple of things: I can’t see any way that the Ibrox fan base will ‘knuckle under’ and accept downsizing in a measure needed to get the club on an even keel and be sustainable going forward – a hat will suddenly appear and a rabbit with a blue shirt will jump out.
If not and the fifty-thousand get turned off and turn away, the club loses its greatest asset and will go belly-up again. The support was the life-blood that sustained the new club as it plied its trade in the lower leagues. I seem to remember a 40kplus crowd at Ibrox for a league game against someone like Elgin City in Division Three.
We, like it, or, not, have to focus first and foremost on domestic football as it is the gateway to European competition and, unless and until something else comes along Scottish football is our foundation no matter how parochial that makes us feel.
I agree that European competition is what excites us and we must strive to be a constant part of it, but the financial demands of putting a squad together to make meaningful inroads are greater year by year. Getting into the top twenty-four in the new-look Champions League format is our realistic goal – that is European success for Celtic at present in my opinion.
Heading to Paradise in fifteen minutes HH