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’.
108 Comments- Pages:
- «
- 1
- 2
- 3
Multimonikered Idiot
*We will must never again be duped – sorry
Nope idiot,think you’ll find it was Sir Hunner of Pence,the pockling knight who was “duped”
No one at Celtic was,how were they to know of the nefarious deeds goin on at hun park.
We always have stood alone
For every fiver we will give £220.
Maybe now you will get over your ol-frim cocaine,doubt it you need them
And stop aligning us with the symbol of the union in Scotland,don’t interrupt your enemy etc etc
No rules will be applied to Rangers financial situation because the off field opposition to Rangers died a few years ago.
RIP Turnbull Hutton
GERRY FERNS on 30TH OCTOBER 2024 4:42 PM
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.
*hmmm talk like this reminds me of why so many Catholic men of Irish extract left the church in the 20s/30s when they were advised NOT to vote labour.
So what he’s actually saying is vote for a demagogue who’s going to deport any refugee who won’t vote for him and…oh say no more, just wonder WJWS
Oh and FYI not all Tims are Catholics, in fact some of our most loved Celts wurnae, as for being freemasons, our greatest ever manger was one as allegedly were 4 members of our greatest ever side.
Gerry Ferns
By opposition you mean what?
If you see a toally on the road you walk round it
You don’t step on it to see if it soils yir shoe
I had a wee look at R2FC accounts and identified what I think is a dilemma for them.
Their biggest source of income is ticket sales (£44m) and the risk they identified is that reducing it, if they do as a consequence of what Paul has suggested, i.e reduce the quality and competitiveness of what their supporters are prepared to pay to watch, support will dwindle.
Their wage bill is the obvious area to make savings and it has gone down with more anticipated but if consequences are a drop of in ST sales they are no better off of under the FSR Squad ratio ratio rules which is a game changer.
Drop the player wages with no benefit in the calculation if ST income drops correspondingly.
To be deemed solvent they have negotiated loans to see them to end of season but those loans cannot be counted as football earnings under FSR and if UEFA were to ask if the loans which are mentioned in their accounts were to be used to keep up the standard of player they are able to recruit in order to maintain ST income then there may be trouble ahead.
As matters stand and based on total staff costs (£61.9m) and income reported in the accounts (£88m) they are borderline compliant with the 70% ceiling in next licensing round. (£61.6m – 70% of £88m).
However I expect the detailed player squad bill (and UEFA want to see the detailed list privately ) they will be compliant and if not will not be refused a licence but sanctioned by fines and conditions already set out in FSR.
Summing up. They are financially hobbled by the two policy extracts from this years AGM report for the foreseeable future I pasted previously.
The best thing that could happen to them , Scottish football and Scottish society would be if the “we are ra peepul” element in their support did walk away as a hobbled R2ngers become unable to justify that claim.
gerry ferns on 30th October 2024 5:57 pm
No rules will be applied to Rangers financial situation because the off field opposition to Rangers died a few years ago.
RIP Turnbull Hutton
=========
There ye go the usual response to reason ed input.
There were no rules re sustainability to be applied. There are now and every club has to comply and UEFA have added a further monitoring stage . They know all about RfC and SFA Shenanigans as result of Res12 lawyer letter of 28 May 2016 that questioned use of side letters and the overdue payable.
This produced the “new club/company” response as a reason for UEFA not to apply the rules .
UEFAs reason for their existence depends on their policing FSR, helped I suggest by other compliant clubs taking a bigger interest in any clubs published accounts than before.
TT @5:58pm
Could you give me an example of some other religion that Celtic fans have sang in praise of apart from Catholicism?
And the church has fallen for the egocentric woke society trappings to get pass marks in modern western Zio controlled societies.
I’m not religious neither was Jesus despite the lies spewed by dodgy books written by dodgy folk.
The hun fans think they are solvent…….must be on the glue.
Auldheid – You have been blowing hot air for over a decade now is it not retirement time?
You get kid-glove type of protections on another blog if anybody looks at you the wrong way they get banned.
Go away and retire.
Greenpinta
Re Celtic downsizing to match R2FC please read my post at
https://www.celticquicknews.co.uk/brutal-consequence-of-celtic-winning-league-last-season/comment-page-2/#comment-3954601
which is drawn from a 2023 AGM Interview and this years AGM report.
Europe is where the money is to be made, not Ibrox.
An Tearmann on 30th October 2024 5:59 pm
Gerry Ferns
By opposition you mean what?
/
Calling the Sevco out as not being the Rangers and stop silently colluding like shyte bags.
Auldheid
If only you were a snide shite bag who can only come on as a fake moniker eh
gerry ferns on 30th October 2024 6:35 pm
Auldheid – You have been blowing hot air for over a decade now is it not retirement time?
You get kid-glove type of protections on another blog if anybody looks at you the wrong way they get banned.
Go away and retire.
====
One mans informed opinion is another’s hot air.
Not everyone who reads my input are in the latter category.
So go forth and multiply or support your hot air case to others.
Celtic v Dundee:
Schmeichel, Taylor, Trusty, Carter-Vickers (c), Ralston, McCowan, Bernardo, Engels, Yang, Palma, Kyogo
6 changes from the weekend.
I’m a bit nervous about making so many changes in one go… we’ve seen that movie before!
Starting XI:
SCHMEICHEL, RALSTON, CARTER-VICKERS (c),TRUSTY. TAYLOR, McCOWAN, ENGELS, BERNARDO, YANG, PALMA, KYOGO
Substitutes:
SINISALO, JOHNSTON, SCALES, VALLE, MAEDA, HATATE, FORREST, WELSH, TURLEY
An Tearmann on 30th October 2024 6:41 pm
Auldheid
If only you were a snide shite bag who can only come on as a fake moniker eh.
++++++++++
Aye, enough divisive hot air from that source to fill a squadron of Zeppelins.
Celtic: Schmeichel, Taylor, Trusty, Carter-Vickers (c), Ralston, McCowan, Bernardo, Engels, Yang, Palma, Kyogo
Subs: Sinisalo, Johnston, Scales, Valle, Maeda, Hatate, Forrest, Welsh, Turley
Starts for Ralston, Yang and Palma
BigChipsUK on 30th October 2024 6:41 pm
Me too.
Bigchipsuk
I tend to agree – I thought 3 – I see Kuhn isn’t on the bench.
Celtic: Schmeichel, Taylor, Trusty, Carter-Vickers (c), Ralston, McCowan, Bernardo, Engels, Yang, Palma, Kyogo
Subs: Sinisalo, Johnston, Scales, Valle, Maeda, Hatate, Forrest, Welsh, Turley
Auldheid – Clunks called you out correctly a while back.
Speak to folk as though you were standing on the terrace next to them. Fans are not Rocket scientists, or Judges, or Lawyers for the most part.
You bring this on yourself.
Yang for a hat trick
4 defenders and a keeper on the bench. And rather limited options should any more of our attacking players get crocked! 🤔
New article live…
auldheid
i mentioned the other day that Man City’s ‘victory’ in their recent campaign against current EPL APT rules also brought into question as to whether “shareholder loans” would now be classed as associated party transactions. The Panel ruled that they should not be excluded and the EPL now needs to rewrite said rules. Now it may be that they will be allowed under FMV and PSR rules unless say the applied interest rates are deemed to be lower than market rates. For the record the current loans to RIFC range for 4-6% so not necessarily artificially advantageous to the borrower. Does the SFA or UEFA have any rules such as those challenged by Man City, supported as they were by Newcastle and Chelsea?
Heading to Fitzgerald’s for the game, but stopped off for free pizza first at the Mean Eyed Cat pub. A free 6 inch pizza per person with every round if you want one.
They also have you roll the dice at the bar: 2 gets you 26% off, 4 gets 50% off and 6 gets your round for free. Me and her brother have both rolled 6s for the first two rounds and on our second free pizza.
😂😂😂👍
4-1 to the hoops! McGowan on the scoresheet again with Kyogo, Bernardo and Valle
😃🇮🇪🍻🍀⚽️🍀🇮🇪
https://www.liverpoolecho.co.uk/whats-on/food-drink-news/liverpool-bar-offers-free-pizza-28591446
Happy that BR is using his full squad.Too many pressure games .All respect to Dundee,but if you can’t rotate,and put a team out to take 3 points against them,it would be a bad day.
Sub’s give us so many options to change.
gerry ferns on 30th October 2024 6:47 pm
Auldheid – Clunks called you out correctly a while back.
Speak to folk as though you were standing on the terrace next to them. Fans are not Rocket scientists, or Judges, or Lawyers for the most part.,
You bring this on yourself.
============
Care to support your opening line
If Clunks is Clumpany I dont recall any calling out on anything.
Haven’t’ contacted him since 2019 but here is his last DM to me before 2019 AGM.
” Good luck today. Have put a load of previous blogs about #Res12 on twitter and generally made a noise about the club’s appalling handing of this issue”
Must be another Clunks.
As regards how I communicate with supporters my Following on X/Twitter that I never once sought at 12.9k suggests a few were interested in my views and how I expressed them.
You obviously don’t but not everyone can be pleased.
Hay ho.
I sing my song, I dance my dance but the nature of rain is the same, it grows flowers in gardens and thorns in the desert. (Old Arab saying apparently.)
Celtic Mac on 30th October 2024 6:58 pm
auldheid
Three clubs who benefited massively from access to non football earnings appeal against what all other professional clubs in Europe agreed with is no surprise but it also means there are mamny many more clubs who would oppose litigation.
From a rule interpretation basis FSR Defines Football Earnings and how loans can be interpreted to fall into that category is would require the sophistry of a wizard.
Loans are allowed and if a loan was taken out to increase a stadium’s capacity the eranings from higher ticket sales would count.
Its not as if UEFA have cut off the supply of external money to the game, just set out rules for fairer play reasons.