Celtic’s annual results for the year to 30 June 2021 were released this morning. This was an exceptional year as the stadium was closed to spectators for the entire season, although, as the figures demonstrate, season ticket sales, or the ‘Pass to Paradise’, made a crucial contribution to the club’s health.
Finances to the previous year, to 30 June 2020, was impacted by the curtailment of that season and millions of pounds of refunds, so our normal comparisons at this time are moot, it has been two full years since the club traded normally.
Income fell almost £10m to £60.8m. This is £23m less than the year to June 2019 but still significantly higher than the £52m in Ronny Deila’s last season, to June 2016. Operating expenses soared above income at £74.4m, leaving an operating loss of £11.5m. A year earlier, the club effectively broke even, having made a profit in each of the four prior years.
A straight £5m of Other Income was recorded during the year. I expect this will be HMRC Business Support, Covid-19 related.
The sales of Jeremie Frimpong and Patryk Klimala brought in a net £9.4m after sell-on payments, principally to Manchester City for Frimpong. Despite the disappointing season, £13.5m was spent on player acquisitions, with Vasilis Barkas and Albian Ajeti making up the bulk of that figure. The year-end cash figure, net of bank borrowings, was £16.6m, not much changed from the previous year’s £18.2m.
With all the bars and kiosks closed, Football and Stadium operations income fell the most, from £35.8m to £20.8m. The biggest surprise in any part of the figures was the rise in Merchandising sales, from £15.0m to £22.6m. Considering that in-person retailing was inhibited for much of the year, this is a stunning increase in what I assume was online sales. The commercial metaphorically department kicked every ball.
The club paid £630k to settle contract terminations, Neil Lennon’s severance will feature heavily here.
So much went wrong with last season it is remarkable that we are able to report losses of ‘only’ £11.5m and a positive cash balance, my early season expectations were that we would be in overdraft on 30 June.
With hospitality, Stadium Operations and ticket sales for European and cup games, income should push towards £80m this season.
We have talked here about Asset Management for 17 years. The post-year player sales indicate that despite horrible performances on the field, our player asset values were very high. With a different manager, who knows?
Player purchases in the summer were concentrated around the 26-year-old age group. There is less room for asset appreciation in this new squad as there was among players we sold this year, so either we sell our new stars very soon, or we accept they will leave later in their careers for nominal or no fees. That decision will fall to a new chief executive, I expect few would be bold enough to announce thier arrival with a sale of assets, so expect to keep our main talent for a while.
That is a problem for the business model, one we have not seen since Martin O’Neill’s great team died on its feet, with a huge wage bill and no resale value. Fortunately, this squad can address the problem by winning the league and delivering compensating income from the Champions league, so no pressure now. Strategically, we need to get back to maximising Asset Management potential as soon as possible. Failure to do so always ends in clubs having to pull back eventually.
As a community, Pass to Paradise subscribers, staff and executives, we navigated the club through a year of genuine systemic threat in good shape.
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Pity the balance sheet wasn’t available to play up front at Livingston.☹
Assessment Management has always been a bug-bear of mine at Celtic FC.
If I’m looking at my pension pot, quality asset management organisations interest me a great deal.
When looking at my favourite football club not so much.
Yet the fact is that despite the rhetoric the Celtic Board are quite simply terrible when it comes to asset management.
First myth, the Board are very good at controlling costs.
Our costs last season were a colossal 74 Million, that was in the Covid season when the Stadium was closed. Ridiculously high costs for a Scottish football club and we are definitely not getting our bang for buck.
Second Myth, they know how to make money.
We lost over 11 million pounds, again a colossal amount of money, equivalent to our “record” profit four years earlier. How do you lose 20% of your turnover, a huge loss.
You may cite Covid, but our merchandising was up and season tickets sold out as our support rallied to aid the club. Staff were furlonged, the government paying substantial money to the club. Yet still we managed make a 20% loss.
Third Myth, we manage our player portfolio assets to make money.
Four years ago we had a, squad worth over 100 million, we had 40 million in cash. You would be lucky if our squad was worth 60 million and we have 16 million in cash as of the end of June 2021. That’s over 50 million pound losses.
So where is the asset management in any of that. Loss, after loss, after loss…
It cannot be blamed on Covid, it started way before then. The special privelleges football was granted, has ensured our media and merchandising fell only a couple of million pound from 19 to 17 million. That was dwarfed by the money lost by our on the park failures.
Don’t get me wrong I’m happy to see Celtic lose money from time to time to fund our team.
Yet we have lost out on Europe, on our ten in a row, on quality exciting players leaving – all to appease the asset management GoD.
Meanwhile our go to guy for asset management is pocketing millions of pounds, how much value did he bring. Not much return on investment with that guy.
We are a very badly run Football Club
We are a very poorly run Asset Management business.
Some very poor statements issued today, though this made me laugh….
“… our team of talented specialists led by our CEO and executive”
When most companies of Celtic’s size talk about their executive it is normally more than one person, Celtic literally mean “executive” one guy.
What they specialise in is anyone’s guess.
Not football or asset management that’s for sure.
Hail Hail
Paul 67
‘…..Strategically, we need to get back to maximising Asset Management potential as soon as possible…’
Niall on The Celtic Star predicted you would start to push this line yesterday.
I thought you would awhile but how wrong I was.
It was predicted you would just copy and paste what the board would tell you on this.
Nial got it spot on.
and the band played believe it if you like, meet the guy, same as the old guy.
I would say he is a stick on for the job.
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Celtic announce ‘evolutionary initiatives’ are coming as acting chief Michael Nicholson sends fan message
The club announced on Tuesday they had posted an £11.5m annual loss but Dominic McKay’s temporary successor is bullish about the future.
dailyrecord
Acting Celtic chief executive Michael Nicholson has told supporters to get ready for a number of “evolutionary initiatives” that will soon be implemented.
The club announced on Tuesday an £11.5million loss in their annual accounts amid the pandemic but chairman Ian Bankier remains bullish about the direction the club is heading despite a trophyless season.
And that positive message is echoed by Nicholson, who was placed in temporary charge following the shock exit of Peter Lawwell ‘s successor Dom McKay after only three months in the job.
Supporters were expecting a director of football to arrive in the summer but the role wasn’t filled despite recruitment chief Nicky Hammond’s departure.
But long term board member Nicholson insists an emphasis on their player recruitment strategy is their focus despite the club’s botched pursuit of 10 In A Row.
And he has promised supporters more changes are incoming as Ange Postecoglou and the board aim to wrestle back control from rivals Rangers.
Speaking after the club’s PLC annual results were released, Nicholson said: “Over the recent years we have invested heavily in our football department so that it can perform at the highest levels in supporting our playing squads and our player identification and development strategy.
“That investment fed in to one of the most successful periods on the pitch in the club’s history, and we will continue to devote substantial investment tot these key areas, our objective being to remain at the forefront of the modern game.
“A number of evolutionary initiatives are currently under way, to build on that success and to continue to take the club forward.”
SAINT STIVS on 21ST SEPTEMBER 2021 1:04 PM
So in your capacity as O’Hara’s number 1 fanboy can you tell us what he had to say about his party’s Offensive Behaviour at Football and Threatening Communications (Scotland) Act 2012?
JAMESGANG @ 1:49 PM,
The report tells us what we already knew:
1. The fans dug deep to support the Club and the cause by purchasing season tickets for matches they’d never attend and good looking Adidas kit.
2. Their efforts and example contrast shamefully with those in the track/sharp suits.
Hail Hail
☝️☝️☝️☝️☝️☝️☝️☝️☝️☝️☝️☝️
ERNIE LYNCH on 21ST SEPTEMBER 2021 2:23 PM
SAINT STIVS on 21ST SEPTEMBER 2021 1:04 PM
So in your capacity as O’Hara’s number 1 fanboy can you tell us what he had to say about his party’s Offensive Behaviour at Football and Threatening Communications (Scotland) Act 2012?
—————
pray tell,
fanbhoy is such childish patter, and I dont know the guy, doesnt stop me being impressed by his heritage.
but knock yourself out.
CELTIC MAC,
I asked my Celtic mate on my Whatsap group,who is head of Glasgow North Ambulance Service,if your quotes,re,Paramedics were being used to issue Vaccines,instead of manning Ambulances.He asked me was I serious.He told me,at any given time,he has at least 10 to 15 Ambulances,off road,due to sitting waiting on patients to be admitted,or after every Covid case,they must clean,and disinfect the Ambulance.They have backloads of up to 30 calls,each Ambulance.Have to pick and choose the most serious.
I don’t know where you got that info from,but it’s not accurate.Only fills nutters heads,like Mad Mitch with more bullshit.
Of course one of my best mates of 25 years,could be lying to me.
LAMBERT14 on 21ST SEPTEMBER 2021 2:22 PM
Paul 67
‘…..Strategically, we need to get back to maximising Asset Management potential as soon as possible…’
Niall on The Celtic Star predicted you would start to push this line yesterday.
I thought you would awhile but how wrong I was.
It was predicted you would just copy and paste what the board would tell you on this.
Nial got it spot on.
—————————————-
Anyone who is a fan of the club would say that the strategy would be to achieve regular CL participation especially as we are normally seeded against clubs with a fraction of our budget and maximise our huge potential so the need for asset management is not priority as the revenues accumulated from CL are massive.
In order to do this we bring in the best manager, coaching staff, sports science and a DOF and have players in place for the biggest matches of the season, not in place when we are already out of the competition.
In other words what McKay was trying to do.
But we get the board jargon instead.
You are a Celtic fan Paul, but in this order.. 1 PLC 2 FC
here have a read at it again, what could possibly make a descendant of an Irish Catholic Nationalist Founding Father of the Celtic football club become a Scottish Nationalist in his political life and chairman of the British Parliament Catholic group.
take your time.
https://thecelticstar.com/exclusive-interview-with-brendan-ohara-mp-the-great-great-grandson-of-celtics-first-secretary-and-founding-father-john-ohara/
SAINT STIVS on 21ST SEPTEMBER 2021 2:27 PM
I’d like to know what he had to say about his party’s Offensive Behaviour at Football and Threatening Communications (Scotland) Act 2012.
It’s unfortunate that you can’t, or wont, tell me what he had to say about it.
Perhaps he said nothing.
For fear of losing his job.
can i charge a fee to go research your questions, or maybe you could do it yourself ?
Lynch,
Can you ever admit defeat in an argument.What has the OBFA got to do with your earlier point with ST STIVS.
Always the same with you.When shot down,come back with another question.Total Fud.
Paul, Be interested to learn the basis for “my early season expectations were that we would be in overdraft on 30 June”. With Season Ticket deadline of 25 June the Balance Sheet will reflect the bulk of this income. This is the deferred income of £24m. So even with this income you were expecting to be in overdraft?
No comment on Bankier’s comical statement that we are in good hands?
& RD Tories solution ?.. HEE HAW COS THEY DONT HAVE ANY
RD = RED
SAINT STIVS on 21ST SEPTEMBER 2021 2:39 PM
So far as I can see he said nothing.
What a courageous, principled politician he is.
SAINT STIVS on 21ST SEPTEMBER 2021 2:33 PM
Thanks for posting, Really enjoyed that !
CHAIRBHOY on 21ST SEPTEMBER 2021 2:16 PM
“Yet the fact is that despite the rhetoric the Celtic Board are quite simply terrible when it comes to asset management.”
So talk about assett management then instead of banging on about a load of other stuff.
aye, get him on the board, at least he will have current political connections.
Brian Wilson is 72, did he call out the 5WA or RES12 or the blue meanies cheating ?
did anyone of any political shade say anything about them ?
maybe the Murph did and I missed it.
TURKEYBHOY on 21ST SEPTEMBER 2021 2:42 PM
Oooh, another fanboy.
Celtic fans were getting their doors kicked in at 6 in the morning on the back of that legislation.
One was stopped at the airport and told by plod that they knew where he worked.
So I want to know what an SNP politician, who is being offered up as some sort of Celtic fans’ champion, had to say about it.
I’d have to say I think even someone as stupid as you should be able to see why the point is relevant.
So it’s all about maximising Asset Management potential.
For most of the last decade we’ve been a well-run PLC but a very badly run football club.
When does the hotel at Celtic Park start taking bookings ?
And we used to laugh at the floating casinos in Govan….
HH
MADRA RUA on 21ST SEPTEMBER 2021 2:45 PM
SAINT STIVS on 21ST SEPTEMBER 2021 2:33 PM
Thanks for posting, Really enjoyed that !
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I have become a wee bit obsessive around the founders, and keep on dipping in and out of Brendan Sweeneys book, Celtic the early years, and these by Ian McCallum, its fascinating.
https://www.theglasgowirish.com/
Coupled with general genealogy via Ancestry.com, The Celtic Graves society, old maps etc etc, I just love to find out things I did not know, or myths busted by these peoples research.
Of the founders, most died young, only one lived into their 80s.
but several of them made their own fortunes in their own ways. O’Hara actually bought an estate in rothesay incredible.
79CAPS on 21ST SEPTEMBER 2021 2:49 PM
If you check the accounts, we only started becoming well run with the arrival of BR.
Look at revenue, income and cash at bank in the years preceding BR’s arrival. Unexceptional.
CELTIC40ME @ 2:45 PM,
Whoa!!
You haven’t been forgotten
Truth told I wasn’t expecting these results until late Friday Afternoon.
Hail Hail
Rolling Stone
OK. Then perhaps our best seasons were those under Gordon Strachan, who had to work with a reduced budget after MON’s big spending and achieved our best results in Europe (e.g. taking Milan to extra time in the season when they won the CL).
!BADA BING!! on 21ST SEPTEMBER 2021 1:41 PM
Bankier trolling us now,the sooner he gets emptied the better
############################################
how why when will he be emptied if he and the rest of his ilk know fine well that when the season book renewal bell rings then 53k folk fall to their knees and express their financial confidence in Banker and the rest of his ilk?
that’s a lot of ilks
ROLLING_STONE on 21ST SEPTEMBER 2021 3:10 PM
79CAPS on 21ST SEPTEMBER 2021 2:49 PM
If you check the accounts, we only started becoming well run with the arrival of BR.
Almost always profitable in the years leading up to 2016/2017, including 10m in 2014 and 13m in 2013. A few small losses dwarfed by profits
Celtic 40me – on player trading, it is very important- over the past 5 years we made an overall profit of £24.1m (details below) which is effectively the Tierney money!
2017 – £6.9m
2018 – £7.7m
2019 – £8m
2020 – £0.1m
2021 – £11.5m loss.
Net player trading figures over the past 5 years totalled £29m:
2017 – £5.2m
2018 – £7.7m
2019 – £8m
2020 – £12m
2021 – Minus £3.9m
For an average of £5.8m p.a. Without player trading we’d have made an average loss over the past 5 years to the tune of £5m, instead of a £24m profit.
Of course, the flip side of that is that had Rodgers not qualified for the CL in his first two seasons, we’d have been shorter to the tune of around c£34m and made a 5 year loss of £10m.
Rodgers was in situ when we made £20.9m profit on players (average £7m per season compared to an average of £4m per season in 2020 and 2021) AND brought in an additional £34m in CL money AND put bums on seats after the Ronny years. He bucked the trend and without that our finances would have been in a hell of a state!
CHAIRBHOY on 21ST SEPTEMBER 2021 3:16 PM
Good. Keep your reply relevant please
When you’re talking about assett management avoid talk of cost control, profit and loss, losses on values based on your own estimates. From the accounts please.
And explain what ROI on a directors salary means because it makes absolutely no sense
SPIDEY101 on 21ST SEPTEMBER 2021 3:29 PM
Ifs and buts
Who knows what would have happened if we’d have had another manager in place. Maybe Motes would have been in charge. It’s pretty boring talking about it 2 1/2 years after he left. We’ve got a years annual accounts now abd it’s still about what he did
What can’t be argued is that BR couldnt play all 11 positions himself. The player trading model we’ve had at Celtic has given us a team that was capable of winning 4 trebles in a row (one without BR!) while still being profitable, without being reliant on the CL cash.
I don’t think our profits adding up to one big sale of an academy player should be used against the board. Isn’t that partly what it’s for?
@ CELTIC40ME on 21ST SEPTEMBER 2021 3:26 PM
Are you taking Lenny’s two season in the CL and ignoring his other season’s, as well as RD’s and TM’s?
In many of those season turnover was less than under MON. Negligible cash at bank (compare and contrast to when BR arrived).
Where was the growth or the strong financials then?
Evolutionary ?
St. Stiv’s
“did anyone of any political shade say anything about them ?”
—————————————-
The opposition was led by James Kelly of Scottish Labour and he suffered greatly in the press for it, being described as a supporter of sectarianism.
Jim Murphy, despite having stepped down from political position in 2015, did speak out about it- here are some links:-
did anyone of any political shade say anything about them ?
did anyone of any political shade say anything about them ?
https://www.heraldscotland.com/news/13188017.jim-murphy-repeal-snps-anti-sectarian-football-law/
https://www.scotsman.com/news/politics/jim-murphy-ill-scrap-snp-football-legislation-1521551
https://www.bbc.co.uk/news/uk-scotland-30501179
and here’s how the mad rev on Wings covered his opposition
https://wingsoverscotland.com/fitba-mad/
This “research” took all of 30 seconds to locate.
The sad story is that all of the SNP MSPs in Scotland actively voted for this mince legislation and none of the SNP MPs in Westminster uttered a word in public opposition.
Decent people like Roseanne Cunningham, Tommy Shepherd and your Mr. O’ Hara, held their noses and saw this through like loyal little soldiers.
And many Celtic fans backed them because it was SNP first, Celtic second.
I commend the many Yes Voters , from the Celtic support, many of whom were now voting SNP regularly, who joined FAC and even picketed the SNP conference, despite being subjected to intimidation from the special task force set up by the police as a reward for supporting the legislation. They were addressed by their first names (which had not been obtained legally) and warned that they knew all about them and their places of work. The same Police Force, emboldened by the SNP, as arbiters of sectarian sentiment, questioned a Celtic fan wearing a Free Palestine T-shirt at Tynecastle.
Those Celtic fans with Independence leanings showed an example of bravery that was not matched or supported by any office bearing SNP person, not even a local councillor.
WEEBOBBYCOLLINS on 21ST SEPTEMBER 2021 1:56 PM
Big Jimmy @ 1.08…
Forget it big man, you’ll get no response from him.
………….
I have no problem in forgetting this Chump ” JHB”, as he isnt worth my time and trouble.
I have NO PROBLEM if I wish to slag off the Scot Gov/SNP, and their failings…likewise I will do the same with the Tories and Boris Johnson and his Tory Lackey when they mess up…
However this Chump “JHB”, is ONLY happy to slag off the Scot Gov…while his pals in Holyrood and Westminster do NOT get any slagging from him no matter how much the Tories in Scotland and/or England Feck Up.
The TWO most idiotic Tory leaders EVER…are Douglas Ross and Boris Johnson….and yet there are those in Society and on here who will NEVER say a bad word about them…
Funny that ?
I am also happy to slag off ANY other Party including Labour ( who I always Voted for until 2009), if I see Fit.
HH Mate.