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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C40 @ 11.52
19 paragraphs of Board excuses and deflection.
One thing we do agree on — you are definitely not good at business strategy.
Again I have to ask — what makes you want to die in DD’s / PL’s ditch?
Are you PL focused astroturf or are you just misguided?
ERNIE LYNCH
??? It should make you wonder if maybe youve been tricked or coerced into taking part in an experimental drug trial. (A trial that will only be completed in 2024)
You can still get infected , you can still infect others and the jag has list of severe reactions that could sink a battleship.
MADMITCH on 22ND SEPTEMBER 2021 9:21 AM
👏 Good post.
Makes me anxious where the club will
find itself by end of this decade if it continues to follow on its current trajectory.
Celtic should be aiming to be best in class across the entire football division (market limitations aside). We aren’t. We brought in a CEO who talked as much and yet was gone in 72 days.
A complacent board with a majority shareholder calling the shots. Both are no longer fit enough to lead the football operations of this club.
NORRIEM on 22ND SEPTEMBER 2021 8:35
“We have spent a fortune on dross, get that area sorted, hopefully team drastically improves”
In the last year we made a profit of nearly 25m on two players who cost a million in total and who contributed to the success of the football team while they were here
We also sold two players who cost 12.5m for a total profit of 4m one of whom contributed next to nothing.
The list of failures of the buy cheap and or young plan will always be long, as long as it works out in enough cases, as it clearly did (financially) last year, and has already done so this I don’t see the problem. We’ll be talking about another set of figures bolstered by the sale of a player we bought for peanuts this time next year
As Paul says, the results are there for everyone to see
MADMITCH on 22ND SEPTEMBER 2021 9:30 AM
“Again I have to ask — what makes you want to die in DD’s / PL’s ditch?”
As ditches go it’s been pretty warm and safe for a long time now. You should join me, it’s better than standing outside telling everyone the skys going to fall in year after year
SPIDEY101 on 21ST SEPTEMBER 2021 10:13 PM
Celtic40me
Tremendous stuff guys. We’ll researched debate.
A credit to the blog.
HH and thanks.
BAMBOO on 22ND SEPTEMBER 2021 9:33 AM
ERNIE LYNCH
??? It should make you wonder if maybe youve been tricked or coerced into taking part in an experimental drug trial. (A trial that will only be completed in 2024)
###
I suppose it could if you were very, very thick or subject to delusional beliefs.
Do those cosying up to TGD in this ditch share his views on how wonderful the huns are?
Talking about stimulating debate. JHB makes many good posts that can be debated.
I have disagreed many times with his rational, and so have many others. Destroy his argument by all means.
For example: There is a debate to be had about Res 12. Are we shooting ourselves in the foot after all this time ? Or should it still be persued vigorously.?
That is the core function of a blog.
However the level of immature, nonsensical personal attacks on this individual does the blog no favours.
OK, he is against ” independence ” and lays out his reasons why. We all know that this his is why he receives abuse after abuse, no matter the topic of his debate.
In my opinion contrary to what SFTB stated, personal attacks and attempting to close down debate reinforces his argument.
HH to all.
Greenpinata! JHB gets abuse and attacked for one reason only
C40 @ 9.41
Last season there was an asteroid out there with our name on it.
And guess what it landed right on the CP centre circle.
We have sailed very close to the wind in the years PL has been the board lead / CEO.
In that time we have had to have an emergency rights issue and close part of the top tier.
We have become a selling club and forcibly shoved players out the door to survive.
The sky has fallen in just a case that the board will never run out of excuses.
We are heading towards “Comical Ali” scale of pro board waffle.
We currently have a chance to restore our fortunes in 32 games.
If we don’t then it will take us at least 3 years to get back on an even keel.
Your happy clappy viewpoint stands in the face of the reality of last season.
Your effort is to be commended just a case that it is pro board flannel.
Again I ask — why and to what end if not to boost the DD / PL double act?
Very good post last night from Spidey
Liked it a lot
EL @ 9.57
TGD — who is this and what kind of ditch do they have?
The board are currently in suicide squad mode to save DD’s reputation.
Not a good place to be — I feel quite a few are not up to the job.
MADMITCH on 22ND SEPTEMBER 2021 10:08 AM
Don’t change 👍
TGD= The Great Desmondo.
EL @ 10.46
TGD — I thought that he was a Victorian music hall act …
Still his ditch is crowded with Happy Clappers / Board Groupies / PL’s astroturf / P67 / asset managers.
Where is wee FMcC when you need him?
C40 @ 10.22
Please do change — excuse monkey is not a good look.
Ernie,
Do you not mean ” The great and powerful ” as in Oz .😀
Slightly off topic; I’ve been reading about the crisis at Derby and the potentially dodgy accounting they did to avoid admin and the drop previously.
I lived, worked, bought houses, got married, became a father during my 15 years there so it is very sad. The club is the heart and soul of the city.
Succession of dodgy geezers and naive rich fans owning the club so this was in the post for a while. £50m debt, likely admin and relegation and a squad with no re-sale value (as far as i can see).
Come on you Rams!
Consequently should read :- TG&PD.
Somebodynogotbullionairesthatneedadvice…
As an aside — the stories coming out of the QEUH regarding hospital acquired infections are shocking.
A lot of people made a lot of money designing / building / financing that hospital and yet its performance in use has been nothing short of a disaster — and I hope the people responsible go to jail.
What is it with UK hospital design — rabbit warrens for the most part?
What is it with UK build standards — just get it boxed in / no-one will see it?
What is it with the Auld Reekie civil service — cannot deliver “anything”?
The Nats / Not Jacinda have made it easy for them — Indy is all and to hell with the day job.
Until someone dies.
/
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?
#####
This explains it, I think.
‘The vaccination paradox’
https://pbs.twimg.com/media/E7y1KCiWYAICZg9?format=jpg&name=large
Greenpinata & Wishaw Tim…JHB offers nothing in the way of politics except anti-Nat propaganda. If truth be told, I trust no politicians. In my lifetime I can’t remember a period where there was such a dearth of honest leadership, so, I could not bring myself to vote for SNP if you held a gun to my head. By the same token, I could not vote for any of the others at this time either. I have asked this guy on more than one occasion to explain why he hammers home his anti-Nat stuff every other day and so far I have not had a response. I feel he is insulting towards those who are nats, though he claims to insult no one.
For me the guy is a lonesome troll, nothing more.
The mere mention of Derby prompts an Indy remark. . If only CES hadn’t turned back. !!!!😀😀
GREENPINATA on 22ND SEPTEMBER 2021 11:09 AM
The mere mention of Derby prompts an Indy remark. . If only CES hadn’t turned back. !!!!😀😀
—————
🤣
And I recognise that I may be a bit of a hypocrite but if he, or anyone, were to post anti-Tory stuff, I would probably accept that. It might eventually get boring but at least he wouldn’t be insulting too many…I hope.
WEEBOBBY
We watched Aquarela last weekend and…Awesome; Engaging and Thought-Provoking.
Congrats to your missus and team.
We just got a Mag6 Earthquake today; is that next on her hit list ;)
Quadrophenian…glad you enjoyed the film. I’ve been hearing about your quake this morning. I hope you’re well safe.
Wife has one or two items about to surface but the next big budget one is to begin soon. (I’m sworn to secrecy)😶
Here is an interesting report on RTE news website today ( re Covid)
Bear in mind that 90% of people aged 16 and older are vaccinated in The Republic of Southern Eire.
There were 90 outbreaks recorded in the week to last Saturday, resulting in 412 confirmed linked cases of Covid-19.
It compares with 40 outbreaks reported the previous week, with 191 linked cases.
Of the 90 outbreaks last week, 78 were in primary schools, 11 in post primary and one in special education.
There was also one outbreak in a university leading to seven linked cases.
An outbreak or cluster is two or more linked cases of Covid-19.
So far more outbreaks among younger (primary school ) children who are mainly unvaccinated
Far fewer outbreaks among older ( secondary school and university) who are mainly vaccinated..
WEEBOBBY
Ta. Was a real wobbler but very short-lived. No big infrastructure damaged in city (that’s the job of ‘freedom’ protesters playing a game of tig and pepperball with the coppers. We still have precious few deaths on any front.
Wishing ‘the producer’ every success with the next ones.
And wishing us a return to form on Thurs.
CLAPPINGSEVERALFRONTS CSC
`However over 80% of those in intensive care in Israel……have been fully vaccinated`
Surely that is not accurate?
Anything but.The exact opposite.Israel,like many other countries have large un-vaccinated populace for differing reasons.Religion,ignorance etc.Similar to Turkey.The 80% figure seems to be the case in most countries of un- vaccinated people having to be hospitalized.Which is really what we already know.
Vaccination gives you protection against the worst of Covid,unless serious underlying issues.
No Vaccine,very good chance you will end up in Hospital.
Sometimes you just have to shake your head and wonder.
Can anyone really imagine the state we would be in if there had been no Vaccine.
WITS,
Really,sometimes it feels like you are passing into the wind.You put out factual figures,available to anyone who will look,but like here,they want to know the source.Dear God.They would rather listen to some half assed lunatic on lunatic blogs.I mean,how clear can it be.Vaccines protect against the worst.Un vaccinated,you leave yourself at serious risk.
Turkeybhoy
Yes its crazy
Snort cocaine off a toilet seat ….fine
but whatever you do dont take a vaccine developed by the best medical scientific research available to mankind and given the thumbs up by every government agency and health regulator on the planet.
Of course its a conspiracy..Bill Gates has done a deal with the UFO guys..When enough of us are doped up with vaccine,he will flip a switch and we will all lapse into a coma.The aliens will then land and take billions of us to a galaxy far far away for medical experiments ( I watched a you tube video in a cave,so its true)
Anyone who doesnt realise this is a MSM dupe etc etc
AT/Norrie – cheers.
Celtic40me- on player trading I used figures from the accounts – I assume that covers amortisation, though it may not. Amortisation is a funny one – it doesn’t always provide a good summary of “value added” by the player over time. I’d argue we haven’t had any value from some of our purchases – looking at you, Bangura, Boerritger; Barkas and Comperr. You’re right that some of the players we brought in won’t have provided a profit but given us good service and I specifically stated that, even giving examples of some (Botta’s, Jozo, Hayes).
Despite what you might think, I’m not a Rodgers fanboy. Rather, what it’s an example of is the difference bringing in a manager at the top end of what’s affordable can deliver. We paid him handsomely and it didn’t lead us to losses. Moyes or someone else in the same sort of managerial stratosphere would probably have delivered the same. What’s evident is we didn’t shop on those stratosphere’s either side of Rodgers, and the financial results show the impact. Rodgers was lucky we had decent opposition in the qualifiers those years, but equally we had winnable games either side – Legia, Maribor, Malmö, Cluj and Ferencvaros were winnable games. AEK was too for balance. We’ve underperformed in Europe which suggests the strategy (such as there is one) isn’t working as well as it should.
Other suggestions that the strategy needs reviewed and refreshed are that, despite the financial advantages we hold, we’ve been overtaken by them – they are champions while we’re in a transitional rebuild, and they’ve outperformed us in Europe for the past 2 seasons despite us spending more on transfer fees and player wages.
On player trading in particular, our academy hasn’t delivered much – we’ve sold only 3 graduates in ten years for cash – Tierney the obvious success; with Watt (£1.5m) and Henderson (£250k) the other two. McGeady left us over a decade ago, so not really a shining example of our Academy or trading success recently.
On transfers specifically, we’ve brought in 64 players (excluding loans) over the past 10 years. Of those, 14remain in the squad: Barkas, Bain, Julien, Bolingoli, Taylor, Soro, Turnbull, Rogic, Griffiths; Connell; Afolabi; O’Connor; and Ajeti. Turnbull and Rogic apart, we’d be doing well to make any return on investment let alone profit on them.
We’ve thus sold or released 50 of those players. We’ve made a profit on just 14 of them (with 3 of them happening this summer as this not yet in our ten year accounts analysis).
Hendry
Dembele
Armstrong
Frimpong
Izzy
Virgil
Wanyama
Matthews
Ledley
Forster
Wilson
Eddy
Ajer
Christie
The 11 already “in the accounts” brought in profit of c£69m with the recent 3 bringing in profit of £15m, for a grand total of £85m profit. The remaining 36 players brought in left without turning a profit or, in many cases, delivering any value on the pitch! In summary, around 72% of our purchases provided no financial return when leaving the club.
Being more generous, of those 36 players we had good service from 9:
Lustig;
Ambrose (arguable but let’s just say he was ok for a while);
Jozo;
Boyata;
Sinclair;
Toure;
Hayes;
Ntcham (arguable, but I’ll include for the Lazio goal); and
El-Hamed (first season).
So, of 50 players brought in who have subsequently left, 23 provided either good service, a profit or both. 54% of incoming players delivered very little if anything for our money. For a proper player trading strategy to work, you need to be getting a better hit rate than that – we’re not even achieving a “every other player works out” hit rate.
Asset management involves getting players, making them better, and getting the result of that (service, profit, both). We’re under-performing here!
Finally, despite what the media and Them would have you believe, Doing well financially in the Scottish football backwater isn’t actually that hard – look at St Johnstone for example. They’ve had a financially secure decade which has also delivered football success – they won their only 3 top level trophies (League Cup and 2 Scottish Cups) in the same period. A summary of their position is below. I’d suggest that they’ve delivered a more successful ten year strategy than we have when you take into account relative financial starting positions.
Finances:
St Johnstone’s accounts aren’t hugely detailed, so I’ve taken GuyFawkes… advice and used cash in the bank as a proxy for the financial health of the company. 2021 accounts aren’t yet available. As you’ll see, over the 9 years in question, St Johnstone appear to be financially healthy – they’ve almost doubled cash in the bank in that time.
Cash in the bank:
2012 – £1.6m
2013 – £1.3m
2014 – £1.25m
2015 – £2.07m
2016 – £2.07m
2017 – £2.65m
2018 – £1.98m
2019 – £2.17m
2020 – £2.84m
I assume they’ll take a hit for 2021, though how big that hit is who knows! I think the impact on cash at the bank will be relatively minimal though. They generally have operating costs around the £4-5m mark. They did, however, place most of their staff on furlough and took a £2.6m from the Scottish Government, so I imagine they’ll have dipped into the cash reserves but won’t be in financial difficulty.
Trophies:
Won only 3 major trophies in this decade – Scottish Cup in 2014, and cup double in 2021.
Got to European Qualifiers 6 times in the same period – only been there twice before the last decade – 1999 and 1971.
Been in Premier League for that entire period – haven’t finished lower than 8th.
Player trading:
Like most clubs in Scotland, St Johnstone don’t pay transfer fees – all their signings have been free transfers or loans. In terms of sales, they’ve brought in £960k in the 9 year period – mostly through selling Stevie May (£900k) in 2014. Matty Kennedy in 2019 was the only other sale for cash.
Overall, a £107k profit on players sales per year. This summer, which will again alleviate pandemic related impacts on finances, they sold Kerr for £600k and McCann for somewhere around £1-1.5m depending on reports. Between that and the Scottish Government loan, they more or less covered the impact to revenue as a result of Covid.
Winning an away game could be considered ‘ largish ‘.
Anyone watch the drama”Help”.The wonderful Judy Comer and Stephen Graham,starring ,on Channel 4.
About the onset of Covid in Private Nursing Home.
Harrowing,intense,fantastic performances.Not to be missed.