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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Here’s a video the Celtic players will relate to this week. A band having much more fun than their audience.
https://www.youtube.com/watch?v=gqYZLNMDVJc&ab_channel=TomPettyVEVO
resolution 12 was dead on arrival….in a way….sort of!!!!?
the consensus from the Celtic support was “that’s great Auldheid well done you four, don’t let it go” then the Celtic support turned round and gave tens of millions of £’s to the Celtic PLC who were stalling blocking and giving the Resolution 12 the biggest rubber ear at numerous agms. wrf????
the support in the main were deliberately blindsided by the suppression of Resolution 12 that was going on on various fronts, and this general disregard by Celtic fans due to being blindsided, this led to strengthening the Celtic PLC’s tendency to curry favor with the anti-Celtic OldFirmist Scottish establishment.
scotgov
SPF
SFA
SPFL
RFC
MSM
David Murray
all of the above were seeing with their own eyes how easily wrong footed, or easily made to lose their focus and in effect put the tools away without realising that that is what they were doing was screaming out to those who study Celtic fans with – malicious intent – that there was no unity cohesion togetherness or comradeship within this supporter base. and that could have consequences down the road.
resolution 12 rises to the forefront of celtic fans minds when they look for to use it as a stick with which to batter the PLC board like I’m doing just now even though I know that resolution 12 is a shaming instrument to be used against Celtic fans as their utterly fecken useless at “rising” against Celtic PLC collusion complicity and the cheating of Celtic fans by the very group who are first base recipients of monies from season ticket renewal revenue and it’s as though the Celtic fans are fecken deluded zombies who just quite simply don’t get they are seen as the biggest clowns idiots sheep slaves handmaids laughing stocks etc etc by the “entire” dystopian Scottish establishment.
so with an all over the shop supporter base, the Celtic PLC new that they could “cold shoulder” the issue of resolution 12, an issue which threatened to and was/is capable of ridding “Mississippi” out of Scottish football, if not the country of Scotland as a whole.
in effect Resolution 12 was/is the lottery ticket of Celtic fans dreams….and they fecken don’t get it!?!?!
all it would take to turbo charge Resolution12 over the line would be for Celtic fans to “rise” at their most powerful time.
at season ticket renewal time all it would take is for a unifying figure {Jeanette Findlay} amongst the support to align with Auldheid Morrissey23? Canamaler BRT&H and other prominent Resolutioners whose names escape me at this time to prepare a “sting” on the corrupt beyond belief Celtic PLC board by informing the Celtic PLC
…..”that not a single ticket will be bought until PLC board have properly executed their executive duties, and provide written legally backed evidence that the Celtic PLC board have prosecuted the burning contentious and toxic issue of “Resolution 12” to a positive conclusion which should satisfy our supporter and shareholder base and we charge you with this task to be completed within a six week period – effective immediately”…..
just before renewal time would tip a few apple carts over….try it and see!
anyway…
the scandalous conflicted guilt ridden obfuscation re this burning important key to the holy grail of democracy in sport and other tentative surrounding area’s but this justice integrity and transparency fluid resolution 12 is not solely for cheated Celtic fans but other cheated fans as well and I would even include Rangers fans in this as well as I’m sure in my own mind that even Rangers fans would’ve been unaware of the deception carried out by David Murray and SFA – after Rangers fans didn’t respond positively to David Murray’s share prospectus. I mean where during all of those dark days was the Rangers fans version of “Phil Mac” to keep them informed about the chicanery from that time, I’d guess that the majority of Rangers fans haven’t {even today} been furnished with the same levels of info that Celtic fans have had?
imagine the paranoia about all of what came about at Ibrox and you were a Rangers fan who didn’t know what to or who to believe about what had become of you’re club?
when I say that we’ve been furnished with more info than them is that not a, contradiction in terms?
I mean if Rangers fans had been informed – 10 years ago – that both Celtic FC and the SFA had “rigged” the game to cheat Rangers fans out of tens of millions in CL money and 20+ trophies etc etc, I don’t think that -10 years later – the Rangers fans would be dillydallying around try to coax the Ibrox season ticket renewal boycott because Rangers PLC have been dillydallying around at agms and pissing on the Ibrox version something like Resolution 1690 and throwing “Ibrox Auldheid” under every agm bus for the last decade. do any of you?
p.s. sorry Auldheid 👏🔦📆🏆🍀👍
80 % ,un- vaccinated.
Pleb on 21st September 2021 9.46PM
Your moniker is anti-Irish hate speech.
GUYFAWKESAFOREVERHERO on 21ST SEPTEMBER 2021 9:54 PM
Pleb on 21st September 2021 9.46PM
Your moniker is anti-Irish hate speech.
###########################
yeah?
I think its “YOU” who’s guilty of “anti-irish” hate speech.
its….0’Pleb not “Pleb” k.
you don’t like 0′ at the start of my name then that’s on you.
ok ET, just say you are right, dont think you are what do we do , wake up and do what exactly??? , ps you set your posts earlier to set your agenda!
Pleb on 21st September 2021 10:01PM
I’d say you’re as Irish as a pint of Guinness. You might say I’m crazy, maybe it’s untrue.
https://www.youtube.com/watch?v=3dOx510kyOs&ab_channel=RHINO
Celtic40me
I’ve spent an hour or so looking through the accounts for the past 10 years (our 9, plus the failed 10 attempt). The summary isn’t great, though for those who feel the Board doesn’t spend enough, I thin it shows that over the decade we have pretty much spent what we’ve earned.
Revenues:
Revenues at the start of the decade (2012) stood at £51.3m. In the following 2 seasons we were in the Champions League under Lennon, seeing our revenue jump to £75.8m in 2013 and £64.7m in 2014 – this was largely driven by commercial income (i.e. UEFA money).
Lennon moved on and the Ronny years arrived – we dropped back to revenues of £51.1m in 2015 and £52m in 2016. Rodgers arrived and brought back the Champions League days and revenue grew – £90.6m in 2017 and £101.6m in 2018.
The third season saw us miss out on CL and revenue dropped to £83.4m – pretty much all commercial income reduction (so again UEFA money).
Lennon returned and Covid struck. Revenue reduced to £70.2m and £60.8m in 2020 and 2021. The reduction in 2020 saw falls across the board – £6.4m reduction in stadium income, £3m reduction in merchandise, and £2m Commercial. 2021 was exclusively stadium operations, with an increase in merchandising stemming the blood.
Overall, it looks like, adjusting for Covid, we’re an £80m revenue business – slightly up on my earlier assertion that we were a £75m business.
Profit:
We’ve made an overall profit in the decade of £35.3m (the mythical £30m plus sitting in the bank) which sounds pretty good, until you think that’s just £3.53m per year on average. We’ve actually had three years in which we made a loss – 2012; 2015 and 2021, and in 2020 we only made £100k profit.
Our most profitable season was 2018, when we made a profit of £17.3m – that was the £101.3m revenue season! Coincidentally, you can track that overall profit to a 3 year period in which Rodgers was our manager. Lennon’s first stint saw us make a £13.6m profit over 3 seasons, and his second stint a Covid-impacted loss. Ronny’s time saw us lose £3.4m over two years.
Player trading:
Paul mentioned the need to return to effective asset management, which is just a way of saying we need to be better at player trading. This is true, though it’s not strange to critique this summer’s transfer business and it’s likely not to be McKay’s mistake – our player trading has been poor since Lennon’s return.
Over the course of 2020 and 2021, we made a player trading loss of £700,000, bringing in £33.5m in that time (70% of that was Tierney) spending £34.2m in that time. More worryingly, we spent £34.2m in those two years only to find ourselves undertaking a massive rebuild this summer!
Over the 10 year period, we’ve made a profit of £8.2m in player trading for an average of £800,000 per year. Our expenditure on players has been averaging at c£10.8m p.a. (£108m over the decade) and income has been averaging £11.5m per annum (£115m over the decade).
What all this means:
We need to up our game on player trading – without Tierney’s sale, we’d have made a loss in this area. Relying on selling an Academy graduate for big money is fine if you’re an Ajax and you have a set-up which churns out starlets each year. We don’t have that – we have an Academy that gives us a handful of gems each decade. Only really Tierney, CalMac and Forrest fit the bill over the 10 years I’ve looked at. The rest of our graduates leave on a, at best, nominal fee.
Similarly, having a player trading strategy needs to be better calibrated to minimise losses on those who don’t work out and maximise income on those who do. Of the £115m we’ve brought in over the past 10 years, just 6 players account for 80% of that (£91m):
Tierney – £24m
Dembele – £20m
Van Dijk – £17.5m (includes sell on)
Wanyama – £10m;
Forster – £10m;
Frimpong – £9.5m; and
Armstrong – £7m.
Given those players cost around £12 to bring in, that means we’ve spent £96m on other players over the decade. C£9.5m of that was on Eddy and Ajer who we did sell at a profit. Excluding those two, it means we spent around £86m on a bunch of other players and only recouped £17 from them, for a loss of £69m! Basically around 60% of the money we spent on players wasn’t recouped! While there will be your Boyatas, Hayes and Simunovic’s who give decent service before leaving at the end of their contracts, it does show that all those £2m punts add up, and we waste a lot of cash!
Champions League makes such a difference to our income – it takes us from an £80m business to a £100m business, which makes our annual defensive lucky dip more puzzling!
As I said earlier, we seem to do “just enough” to keep the show on the road. We don’t appear to have a clear strategy or desire to move on. If it’s the Academy, we need more than 3 players per decade to come through successfully. If it’s player trading we need to reduce our misses and get better at finding the hits – which involves having a pathway for them. We appeared to have a strategy of picking up out of contract kids from English teams – Dembele and Frimpong were obvious successes, but Oko-Flex, Connell, O’Connor, Afolabi, and it appears now the two Sheffield Wednesday lads, were never given a pathway to the first team, or even a chance. That strategy provides a 25% hit rate, which isn’t great!
10 years of success and turning a small profit isn’t to be sniffed at – but we could have done so much better with a more strategic approach! It also appears clear that success on the pitch begets financial success – our two most profitable periods saw us make the Champions League – Lennon’s first stint and Rodger’s stint. Given our two primary sources of income are supporters spending money and UEFA commercial incomes, this shouldn’t be surprising!
Covid isn’t real ..it’s just a plot by big world govts who want to control you.
The vaccine isn’t real (There can’t be a a vaccine to a disease that doesn’t really exist) Again it’s part of the “big reset” to take control (a man in a cave watching you tube videos has been trying to warn us)
However over 80% of those in intensive care in Israel (with the disease that doesn’t really exist) have been fully vaccinated with the vaccine (the vaccine that’s not real and Is another attempt at mind control etc)
Ok makes sense to me..
Wake up before its too late..
Celtic as a football operation simply isn’t run as well as it could be. The board and majority shareholder are taking the supporters for mugs (and on the supporters dime at that).
Very frustrating to see club failing to maximize its full potential year after year, with no obvious evidence the club will modernise its football operations anytime soon. And I don’t consider the quadruple treble as maximising it’s full potential (as great as it was).
The club is stale from top to bottom.
Spidey101 on 21st September 2021 10.13PM
You didn’t include the only significant measure for fans, cash. From June ’20 to June ’21 we dropped £3m. A miracle.
I’ve typed previously to those who had ten minutes of attention to pay to our accounts. 30s on the p&l, 30s on the b/s. 9 minutes on the cash flow.
THE EXILED TIM on 21ST SEPTEMBER 2021 9:31 PM
‘ is the Israeli prime minister, among others liars as well………..over 80% in their hospitals are fully vaccinated, but sure he is telling lies.’
####
Now don’t go throwing your toys out of the pram, but do you have a link for that statement?
BHOY FROM THE BOYNE on 21ST SEPTEMBER 2021 10:27 PM
############################################
don’t you think its on the fans to stop turning up presenting themselves as mugs then they won’t be mugged?
board is only doing what boards do – mug mugs.
the fans have been drinking to much fluoride water.
or they’ve been transported from an ancient monks place thingy?
or maybe their all in wee Nora’s cult thingy?
or maybe their all just thickos who don’t get it?
better put a smiley 😉 or the cancel cult will be on shortly. 👍
where did this fella pop up from, that was some input
the best news is on http://www.rt.com imho!
those who are blinded by BBC etc bs will disagree.
tough.
Guyfawkes… cheers will have a look at changed cash position tomorrow.
Spidey101.
Ta for tonight. some top blogging mate 👍
:-)
HH
SPIDEY101 on 21ST SEPTEMBER 2021 10:13 PM
Thanks. A few points
“We’ve made an overall profit in the decade of £35.3m (the mythical £30m plus sitting in the bank) which sounds pretty good, until you think that’s just £3.53m per year on average”
Thats excellent for a football club in Scotland, especially one that’s enjoyed the success we have. Its pretty good for a club playing anywhere outside the top 5 leagues. No need to point out that our friends playing out of Ibrox have run up tens of millions of pounds of losses and are enjoying their first trophy in ten years al the while walking around with their arses hanging out of their trousers.
“Our most profitable season was 2018, when we made a profit of £17.3m – that was the £101.3m revenue season! Coincidentally, you can track that overall profit to a 3 year period in which Rodgers was our manager”
I dont think coincidence is a word often used by a few on here to describe what happened to our finances when BR was manager. But who’s to say that with Sevco in the SPL for the first time and a popular pick for manager, like Moyes for example, we wouldn’t have been able to sell out season tickets and negotiate what wasn’t the most difficult CL qualifying campaign, at least in one of the two years.
“Paul mentioned the need to return to effective asset management, which is just a way of saying we need to be better at player trading.”
It also includes managing home grown assets like Mcgeady, KT, Macgregor and Jamesie. The Academy isn’t just about producing players who’ll stay at Celtic all their careers.
Player trading:
Are you figures from straightforward transfer fees paid less fees received? You probably know that it’s not how disposals of assets are calculated in the accounts. The book value at time of sale includes depreciation (amortisation) which gives a more realistic valuation of the player in accounting terms as it includes the value added to the company (club) by the player over the time he has been there. It means that the disposal of assets figure will always be higher than a straight fee in fee out. Its how asset management is calculated and its how the figures that Paul quoted were calculated.
Its an important distinction to make when calculating profit and loss, you can’t really talk about profits using standard accounting methods and then use different ones to calculate assets sales.
Importantly what straight fee out and in doesn’t include is how a player contributed to the success of the business (club) duding his time here. Our core business is winning games of football we aren’t just trading players without them having any input into that.
“As I said earlier, we seem to do “just enough” to keep the show on the road”
Thats not true. A football club in Scotland that consistently makes a profit while enjoying the success we have isnt just surviving. Just keeping the show on the road is what they’re doing South of the river
” We don’t appear to have a clear strategy or desire to move on”
We most certainly do, it’s a very clear strategy, its worked very well over an extended period, why are you so sure it won’t work in the future? How has it failed and why is it failing? Whats the alternative?
We might spend a lot of money on players that never make it or dont make us any profit but we consistently put out a team that wins things, while turning a profit, all without, apparently enough players coming through from the Academy.
I dont see how things aren’t working.
“10 years of success and turning a small profit isn’t to be sniffed at – but we could have done so much better with a more strategic approach.”
Any profit isnt to be sniffed at over such an extended period while operating in the backwater that is Scottish football
I’m no good with business strategy, its a difficult and complex business skill and in the companies I’ve worked at it always been done by people who have a far better brain for it than me. I dont understand what a more strategic approach means. We have a successful strategy, it has worked, is my understanding.
Our consolidated statement of comprehensive income shows £5 million of ‘other income’ which helped lower our operating loss for the year.
anyone know what this was ?
BHOY FROM THE BOYNE on 21ST SEPTEMBER 2021 10:27 PM
New head of sports science appointed today.
Forget the monies furra sec, our recruitment processes remain a bit of a head-scratcher:
While we scoured the globe to appoint a world class CEO, the real candidate was hiding in plain sight as our Head of Legal.
When we scoured the world to appoint a durable and committed right-back, the real candidate was (luckily) already in the building holding on to a 1-yr contract extension by his fingernails.
With acres of candidates to assess as our Head of Sports Science, we get an unemployed guy from just down the road in Greenock who’s most recently been working as a stand-in manager.
RIGHTUNDEROURNOSESCSC
Its taken a long time but folk are now seeing the side of the hooror show that is the jbh poster. I saw, as did big Dan when he first crawled into this blog the jcb was a rancid hun.
A poisonous deviant character with nothing but subtle disruption as his agenda.
You will do yourself come independance john.
Arsehole.
80% of the people taking up Hospital beds,Ill with Covid,have had no Vaccines..That’s the average figure in the UK and across Europe.
Israel will be no different.Mississippi has a Vaccine take up of around 34%.They have the highest cases and deaths in the States.They say their religion will protect them.They don’t need no stinking vaccine.
TURKEYBHOY on 22ND SEPTEMBER 2021 12:33 AM
80% of the people taking up Hospital beds,Ill with Covid,have had no Vaccines..That’s the average figure in the UK and across Europe.
Israel will be no different.Mississippi has a Vaccine take up of around 34%.They have the highest cases and deaths in the States.They say their religion will protect them.They don’t need no stinking vaccine.
Link?
People who don’t believe in Covid should be allowed to do so – and thereafter take personal responsibility for that decision.
Simply offer a waiver stating that – as they have no faith in medical opinion – they won’t get treated for health or medical issues deemed covid-related: one diagnosis to see if it’s the pox. If it’s not Covey; they get treatment for that ailment. And if a medical exemption applies to them, that’s a fair consideration too.
But if it is Covid, there’s no ambulance; no docs; no nurses; no intensive care provided.
This isn’t anything political; just showing full respect for their wish not to believe or understand.
Peeps can retain their free will – but the consequences of that must surely remain theirs as well.
Quadrophenian – seems fair to me.
Let me go to Celtic Park.
Looks like spotchecks anyway.
Good morning cqn from a dark and chilly Garngad
Sport science, sport science complete bollox. :) canny polish a turd. :)
Eat, sleep, train and breathe football, that’s awe you need.
D :)
`However over 80% of those in intensive care in Israel……have been fully vaccinated`
Surely that is not accurate?
Leading infectious diseases expert Sharon Lewin said without any measures to control the Delta variant, it was difficult to stop chains of transmission, even with reasonably high rates of vaccination.
“What we’ve learned from [Israel], and what’s consistent with the modelling … is that even at 80 per cent, you need to have some public health measures in place to contain transmission,” said Professor Lewin, director of The Doherty Institute.
“Israel flung the door open at the time Delta hit, and once things take off and you’ve got very large numbers, it’s very hard to bring that under control.”
While overall adult vaccination rates are high, there are pockets of Israel’s population that remain unvaccinated, including some ultra-orthodox Jewish communities.
Making things more challenging is the fact that 25 per cent of Israel’s population is younger than 12, meaning only 68 per cent of its whole population is fully vaccinated — a threshold too low to achieve herd immunity.
p.s Not getting involved..
Does seem of course that the picture is a bit more complex than the one being presented with ‘the 80% vaccinated in hospital’ headline….
Spidey101 & Celtic40me
Great debate last night 👏👏
I’m with Spidey101 on this one
We have spent a fortune on dross, get that area sorted, hopefully team drastically improves
And success brings the returns
NorrieM on 22nd September 2021 8:35 am
Agreed.
That is a function of not having a functioning scouting and coaching set up, which is a function of having a dysfunctional board. Can’t understand why some still don’t see it. Too much overpaid non contributing dross, for example Bitton, Johnstone and in the past Ntcham, Duffy. I fervently hope James McCarthy is not the next in that line of wasted money but I’m not at all confident.
TIMMY7_NOTED on 22ND SEPTEMBER 2021 8:53 AM
Amido Balde, Rasmussen
Bangura, Mizuno
Braafheid, Miku
Scepovic, Wakaso
WeDidntStartTheFire CSC
Could be here all day adding names to that but don’t have the time
HOT SMOKED on 22ND SEPTEMBER 2021 8:18 AM
`However over 80% of those in intensive care in Israel……have been fully vaccinated`
Surely that is not accurate?
###
It could be.
If 100% of a population have been double jabbed then 100% of those who are in hospital, or in intensive care, or who have died of covid, will have been fully vaccinated.
That doesn’t prove the vaccination is ineffective.
P67 — your analysis is a bit weak in a number of areas.
You have a small business viewpoint and we are quite someway from being a small business.
You focus on “asset management” but forget that we are first and foremost a football club.
You talk about the need to make a profit from player trading but offer no explanation as why we have become a selling club.
You talk about spend but nothing about effective spend / value for money as if the ball on the park will act differently just because it is being kicked by a player that PL spent a lot of money on.
2019 — We paid too much @ £7mill for CJ / Excellent footballer but emotionally unstable.
2020 — We spent £10mill on AA and VB and have seen very little in return. Both were gifts to the selling teams and you have to ask why.
2021 — We spent far too much @ £4mill+ on CS / whoever did the scouting needs their books.
Bit of a pattern here with the club spending the supporters money — but to who’s benefit?
We have a huge wage bill and do very little with that funding stream.
It starts from the top with PL ridiculous wage / bonus package.
And it filters it way down into the inflated wages we pay for a limited return.
The loan players just put things over the edge but we bribe players to play in the SPL.
Do something in Europe and they might lower their demands but we are all Bronskis now.
We are a £200mill T/O business if DD / PL were not calling the shots.
We would be a football club if they were removed from the scene and not an arbitrage play waiting for the EPL to call.
We had 10 years to rebuild the club / change its focus and look for new challenges.
Apart from the 24 months when BR was focused and calling the shots we have drifted in the face of no local challenge until last season when the lack of exec and coaching talent was laid bare.
In conclusion AP has a a huge job on his hands and he is our only hope.
No pressure there then …
C40 @ 11.52
You have to ask why you would want to die in DD’s ditch?