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Celtic and Newco income, the commercials are key

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By on CQN BLOG & Comments

Any team can win any game, but sustained success in football is all about money; how much you earn and how you spend it.  Everything went wrong for Celtic last season and they currently trail Newco by four points, although there are reasons for optimism.  Where the clubs sit structurally and financially will always be a greater determinant of long-term success.  We are going to have a look this week at both clubs’ accounts, what indicators they reveal and how they are run differently.

For a season when Celtic were trophy-less, exited the Europa League, Scottish Cup and League Cup earlier than Newco, you would expect the clubs incomes in season 2020-21 to balance out for the first time.  Other things being equal, Newco should have earned more, particularly through their extended run in Europe.

Instead, Newco undershot Celtic’s £60.781m turnover by a clear £13m.  The difference was all in the commercial department.  Celtic’s deals with Adidas and JB Sports brought merchandising sales to £22.609m.  This figure excluded “other commercial activities”, which were noted along with multimedia income.

When announced, Newco made great play of their first kit and retail deal after parting company with Sport Direct.  However, their total figure for sponsorship, advertising, commercial and retail was £9.278m, £13.331m less than Celtic’s.  Not that this inhibited their spending, the apple never falls far from the tree.

If you recall, Newco ended up with Castore after asking bids for their kit contract online.  This was an indication that winning attractive deals is not as simple as those who have never concluded a deal like this could imagine.  Celtic’s commercial team landed Nike 8 years ago, then improved their deal with New Balance.  The move to Adidas in 2020 was a commercial game changer (it also landed before the reality of what lay ahead was revealed).

They were able to demonstrate performance and fine-tune a route to market with JD Sports.  As a consequence, despite shops being closed for much of the season, merchandising income rose by £7.6m.  To achieve this, you need to attract and retain staff capable of performing on a level off the field that Kyogo would be pleased with on-field.  At the top of the page I wrote “commercials are key”.  It would be truer to say an ability to attract and retain high-performing professionals is key.  You cannot do this if you are the football equivalent of an aggressive fantasist.

This is not the sexy part of football, but it probably determines where more trophies end up than differences in scouting resource.  Corporate governance up next.

 

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  1. Greenpinata on

    MARTIN O’SEVILLE on 9TH NOVEMBER 2021 1:27 AM

     

     

    Interesting and well done taking the time to compose.

     

     

    Dealing in fantasy: What about a hunger games scenario that could develop from your vision.?

     

     

    For simplicity: Why don’t the ” leaders” of the GB , UB and others meet up after school and have a good old fashioned ” Square Go”. Winner takes all.

     

    ( Something similar to the old jungle days where many disputes were sorted out below the jungle.)

     

     

    HH.

  4. Big Jimmy on

    Ive not been on here since last Thursday due to circumstances in my home last week.

     

    I had a look this morning and was shocked and saddened to read of SQUIRE DANAHERS passing on this current thread.

     

    May he Rest In Peace.

     

    His Posts were always polite and respectful….very sad.

     

    I walked into my local Pub last Friday morning, only to be advised bt the owners wife that one of the Pubs regulars had just passed away due to cancer minutes earlier.

     

    R.I.P. ” TUCKER” fae The Calton…a good Celtic man for 64 years.

     

    Both of you will never walk alone.

  5. Friesdorfer on

    Big Jimmy

     

    Good to see you posting. Hope things are easing a bit, and sorry to hear of the passing of your pal Tucker.

     

    YNWA HH

  7. Taurangabhoy on

    Rest In Peace Squire Danaher. Condolences to your family and friends. Take care of yourselves.

  9. Big Jimmy on

    FRIESDORFER on 9TH NOVEMBER 2021 8:38 AM

     

    Big Jimmy

     

     

     

     

    Good to see you posting. Hope things are easing a bit, and sorry to hear of the passing of your pal Tucker.

     

     

     

     

    YNWA HH

     

    …………

     

    Thanks mate.

     

    ” Tucker” was one of the Bhoys in the Pub who I would sometimes sit down with and have a few Beers and a wee natter with.

     

    He loved his wee Bevvy, Fags and wummin….just like me LOL.

     

    I am still heart broken with my wee Bhoy ” Rocky” being taken from me, but he is due to come home in the next few days, with his ashes in a fancy wee box.

     

    My Hoose feels so empty.

     

    HH.

  10. Big Jimmy on

    TIMMY7_NOTED on 9TH NOVEMBER 2021 9:26 AM

     

    Big Jimmy on 9th November 2021 7:54 am

     

     

     

     

     

     

    Condolences for your mate Jimmy.

     

    ……………

     

    ” Tucker” was one of the Good Guys.

     

    He could drink every day, whether it was in his hoose and/or in the Pub….or BOTH.

     

     

    He loved his wee hawfs.

     

    HH.

  14. An Dún on

    Papers going strong on the Gerrard to Villa rumours. I remain a sceptic but I would welcome the undoubted impact it would have at Ibrox. I’ll call it now though, Villa will go for someone else and the papers will be full of Gerrard snubs Villa and remains loyal to Rangers.

  19. garygillespieshamstring on

    ParkheadCS

     

     

    I think you are correct.

     

    Although the thought of them losing the brains and being stuck with a very expensive dud as a manager has a great appeal.

  21. David66 on

    Good morning all from a sunny Garngad

     

     

    Big Jimmy sorry to read about you’re pal Tucker.

     

     

    HH

     

     

    D :(

  23. David66 on

    AN DÚN on 9TH NOVEMBER 2021 10:38 AM

     

    Papers going strong on the Gerrard to Villa rumours. I remain a sceptic but I would welcome the undoubted impact it would have at Ibrox. I’ll call it now though, Villa will go for someone else and the papers will be full of Gerrard snubs Villa and remains loyal to Rangers

     

    ——-

     

    An Dun – My thoughts exactly.

     

     

    Why would any EPL team trust Slippy he has done jack shit, 1 trophy in 4 years.

     

     

    D :)

  24. EmeraldBee \o/ A Double Niner!! on

    PARKHEADCUMSALFORD on 9TH NOVEMBER 2021 11:12 AM

     

     

    I’m sure they’ll do due diligence. Certainly, if he ever gets the Liverpool gig, Beale will be beside him.

     

     

    PARKHEAD, if Gerard EVER gets anywhere near the Liverpool manager’s job that will be the day when I give up on following football, because that will mean I have totally lost any sense and understanding of how the game advances.

     

     

    Gerard comes across as a very, very limited football man, despite his fabulous pedigree as a player. He has had advantages up here over the last three years that he will never, ever enjoy in any other football environment that he might end up in and yet has managed to win one single competition out of the nine domestic competitions his club has been entered in.

     

     

    Villa would be mental to take a risk on that guy, when they seem to be worried enough about their current chances of maintaining their honey-pot existence in the EPL that they dumped a guy they know has done well in the EPL the last few years.

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