Celtic published their preliminary results for the year to 30 June 2022 yesterday. After two years affected by the global crisis, results on and off the park are back on form.
Accounting standards require Celtic to compare results with the previous year, however, the crisis makes comparisons with years ending June 2020 and 2021 unhelpful for strategic trend spotting (clearly, all indicators were significantly improved on both years).
Where appropriate, we will compare to year ending June 2019, the last season with full attendances, which also saw Europa League participation.
Headline figures are eye catching. Income was £88.2m (2019: £83.41m), expenses were higher still at £91.7m (2019: £86.94m). That small trading loss was more than offset by the busiest 12 months transfer activity in recent memory.
The financial year encompassed three incredibly busy transfer windows (Jul 21, Aug 21, Jan 22, Jun 22). Odsonne Edouard and Kristoffer Ajer made up the bulk of the £29m income from player sales. Most of that figure goes straight to the bottom line.
Deals to sign Liel Abada, Carl Starfelt, Josip Juranovic, Giorgos Giakoumakis, Alexandro Bernabei, Cameron Carter-Vickers and our four Japanese players were all signed during the 12-month period. Jota’s permanent signature was publicly announced on 1 July this year, it is unclear if this deal was also included in the figures to 30 June, we will find out when the annual report is published.
Total spend on player registrations for the period was £38.4m. This clearly represents the bulk of the spend for two years. While it is astronomically high, it is not appropriate to compare to any one year.
Profit is right on Celtic’s trend: appropriately small at £6.1m, with cash at 30 June of £30.2m – which is net of bank borrowings.
Income from football and stadium operations softened by around 1% since the last fully open year, £42.782m (2019: £43.252m. Multimedia and other commercial is also down, £20.528m (2019: £22.082m), due to fewer games and less prize money in the Europa League.
These falls were more than offset by merchandising income of £24.925m, a 38% increase on the £18.076m earned in 2019. Every year at this time we track this figure, it is a key metric that Celtic can budget on to offset inherent risks in European prize money. Income here has almost doubled in six years, from £12.577m.
This increase alone bridges more than half the gap between Champions League and Europa League revenue. Compared to where we were six years ago, it is as though the commercial department are bringing in Champions League money every second year.
It is a key component in why Celtic can continue to trade normally without adverse results jeopardising the club. The partnership with Adidas and (subsequently) JD Sport has been enormously beneficial. Much of the reason why we were able to rebound so successfully from the failures in 2020-21 is down to the achievements of the commercial team.
Chief executive Michael Nicholson, in his first review of our annual figures, made two points worth bookmarking.
“UEFA announced… a new Champions League format post 2024…. There is an expectation that, once implemented, this would lead to increased media rights, which would in turn benefit all participating clubs”.
“UEFA introduced significant enhancements in financial governance by introducing new Financial Sustainability Regulations to replace the previous Financial Fair Play Regulations…. These are being introduced on a phased basis from summer 2022 and have the effect of introducing more rigorous spending controls and more definitive sanctions in order to create a sustainable future for the European Club environment.”
The European game changes both financially and competitively in 2024. Celtic have targeted this date for a while and want to be part of the story.
Uefa’s FFP spending controls and sanctions have been opaque since their inception, which has competitively hampered Celtic. What to do about it?
Michael Nicholson went on to say, “Celtic played a significant role at a strategic and technical level in the development of the new regulations, continuing to demonstrate our strategy of participating and contributing to the future of the game at the highest level.”
One of our old pals played the significant role at a strategic level in putting this right, while one of our current backroom team was an architect of the technical details. Despite the bevvy of trophies we’ve won in recent years, I believe Celtic suffered most in European football from the financial mismanagement of others. Some who bore the scars of this issue got to write the new rules, the consequences of which hit home elsewhere this summer. Perhaps some compensation.
Great results, well done to all.
335 Comments- Pages:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- »
We had a T/O of £70mill’ish in 2003/04.
We had a T/O of £52mill’ish in 2015/16.
We had a T/O of £70mill’ish in 2019/20.
That is what happens when you have the Irish Raj / DD asleep at the wheel.
That is what happens when you have a low rent / low energy / 2nd rate property bean counter running the show — stagnation / side lining / increasing irrelevance.
Not good.
AP has moved us up a gear by his efforts on the park.
He has a growth agenda — both for himself and the team.
That is good.
If you are playing football the world wants to watch then you will have better leverage over the broadcasters / sponsors. When we start seeing Japanese language adverts at SPL games then we will know we are making progress.
T/O target — £200mill plus in 2030.
We must be a football group by then.
Not just a SPL team.
Football has grown exponentially over the past 20 years — we have not been part of that growth.
That it has taken a manager from Aus to show us what is possible embarrasses more than us.
Paul,
excellent summary.
P67 — merchandising income …
Who signed off the NB deal?
It was a shambles from the start.
The fall from Nike was catastrophic.
If NB were all we could get at the time then people should have walked.
Showed how far we had fallen.
Stx2 @ Road to Damascus
Are you advocating a rebuild of the Main Stand?
If yes what are your thoughts on scale / design / new facilities?
i was being sarcastic you utter bore.
“Celtic played a significant role at a strategic and technical level in the development of the new regulations, continuing to demonstrate our strategy of participating and contributing to the future of the game at the highest level.”
Pity we didn’t take the opportunity to bury the SFA with Res 12
Too little too late
P67 — player spend.
If you want to add value you need to break out the 2021/22 season figure from the total given.
The headline £38mill number does not give the full / correct picture.
Really poor analysis.
Paul67,
Excellent lead…
The financial fair play was anything but. It is good to see that Uefa seem to have put their house in order in this regard.
Also the fact they are intervening directly with the Clubs and not doing this by proxy through local associations with vested interests.
Scottish football has suffered more than most through financial corruption and it’s good that we were in the forefront of putting this right.
More than the Glasgow Giant will benefit from a more level and competitive European footballing structure.
Hail Hail
The new Martin Lewis is in our midst……
Stx2 @ 12.13
Lowest form of wit — suits you well.
Main Stand rebuild — we need to start the planning now.
Will the current Main Stand make its 100th anniversary?
Pingback: Celtic Finances, FFP, New CL Format In 2024 - Celtic News
CELTIC40ME @ 10:32 AM,
Well, totally, look around and where are the alternatives!?
Yet this is my point, we hear often about the disadvantages of playing in Scotland but it also offers opportunities.
Many moons ago when I made the point of partnership with an alternative, such as a streaming company I made the point the big boys can’t do this.
Imagine these companies trying to win the EPL broadcasting rights, imagine the “risk” to the EPL if they did this – huge.
Scotland’s broadcasting deal is relatively minuscule, the risks managable, the scale very doable – outside the Glasgow Derbys and cup semis and finals most games are small beer.
Great for a Beta offering and although that time and opportunity has passed, we saw during Covid that the technology was there and the solution viable.
Sure, there were teething problems but the speed with which those solutions were negotiated and platforms put in place was phenomenal, it can be done
So we are the opposite of England our football broadcasting rights are small and undervalued, this is also an advantage, with the right partner.
Also I and others, most gone now, argued on here for the last ten years we should be a competitive European side.
Multitudes on here, the leads and our Board telling us why it couldn’t be done.
Ange has come in and looks at things and thinks Europe’s a no brainer…
So forgive me if I take the CQN naysaying experts with a large pinch of salt.
We have the balance right now and that’s the important thing, broadcasting rights are unfortunately a small piece of the Scottish Football pie and our true media rights offering as the lead states is at European level.
Hail Hail
CHAIRBHOY @ 11.54 AM
Not a domestic game….
CB @ 12.15
Need to see the accounts for our friends in Govan.
Last 2/3 seasons they seemed to have a focus regarding winning the league by hook or by crook.
Now the focus seems to be on getting money out / settling their court cases / finding a buyer.
Big change in 3 or 6 months.
We’ve probably saved £1m on Lawwell
BHOYJOEBELFAST @ 12:19 PM,
Yes, was joking, the Dougie, Dougie offering was a quintessential Scottish adaptation rather than a fore runner.
How about, Copenhagen 1-1 Celtic, 20 Feb 2020, UEFA Cup!?
Hail Hail
TQM @ 12.23
At the very least.
Then there are the indirect benefits.
The amount of effort he put in — directly and through his new media channels — to convince the support that “hame’ll dae us” / Europe’s not for the likes of us.
Complete useless walloper.
CHAIRBHOY @ 12.25 PM
Knew you were at it….Yes correct.🤭😊😂🤣🇮🇪❤️🏴Stay safe.
Paul67
The unseen Fenian hand ✋
The chairbhoy
Given the choice I’m sure the top 6 EPL clubs would rather have their own media rights like they do in Spain.
Encouraging-looking set of results and indicative of what can be achieved with a bit of ambition.
Of course we have seen ambition on occasion in the past (generally after losing a league or getting knocked out of the cup by a lower-league team) but it has tended to die off after a couple of years, so it will be interesting to see if there is a genuine attempt to sustain it properly this time. I have my doubts.
We saw what happened under BR when we started to pull too far in front of partner club. Nothing will be allowed to jeopardise the old firm.
The test will come at the end of the season (or next) if we start winning leagues by double-digit points margins.
I’d be surprised if someone hasn’t already been tasked with looking up the international dialling code for Cyprus.
MADMITCH @ 12:19 PM,
Yes, they speculated to accumulate;)
Yet I said last season that they seemed to have pulled there horns in
Their January window, when they could’ve strengthened for their Europa run but didn’t
And now sales of their top assests and not replacing them.
There could be several reasons for this, Uefa rules and monitoring being the main one, businessmen with their own cash in play and of course the takeover speculation.
Either way a necessary decision that was overdue
There accounts will be interesting, their T/O not far off ours I would assume yet their profits and debt will be the difference.
Hail Hail
THE QUIET MAN @ 12:31 PM,
Yes, we often hear about the EPL media bubble bursting but the juggernaut still rolls on.
You’d have to assume with the debt they are carrying that at some point the big six are going to want a bigger piece of the pie.
Debt has neen so cheap for so long now, this is going to drastically change, it could be a case of musical chairs.
Hail Hail
BHOYJOEBELFAST @ 12:30 PM,
Cheers, you too…
Aff oot for a wee while
Hail Hail
Chairbhoy
The proposed European super League was driven by the desire to get an even bigger slice of the pie.
It hasn’t gone away
CHAIRBHOY on 21ST SEPTEMBER 2022 12:37 PM
I was scratching my head reading your comment. Then I read the final paragraph and realised you were talking about the team across the city.
Utterly bizarre.
how they can oause thee sucking in of all monies into the EPL and stopping it becoming a football NBA,which uefa are weary of,with the influx of US capital into the epl things like top6 breakaway will mean uefa are always going to be on their toes.
There’s always room for growth at Celtic,it may get more technical and sophisticated incorporating fiff rev streams but every £ spent has the potential to be £1.01+.
In 1994 when looking at possible income streams a lot that now exist didn’t then,we incorporate them,we improve and we get a little better,tis been that way since we left the hall at St Mary’s,and hopefully Celtic fans not yet born will xarry on the mantle,its for them we build
The 2024 changes to CL I would like more info on in the context of CLTV money,from a games perspective
I am led to believe groups of 8 instead of 4 resulting in 7 home games instead of 3 ,now if 3 games take us to £100m 7 will lead to….?
That’s 4 extra CL matchdays before we qualify.
4 days of having 60k at your door for an epic night
Thanks B2B for asking Q and An Dun for the prompt
Always looking to do a wee bit better
Hail Hail
==========
Sandy Richardson
Crossroads after Calimero 5.15 up to news at 5.45
https://youtu.be/5RzwXdST6-I
:-)
HH
Chairbhoy
It’s easy to see why you choose to describe people who point out legitimate defects in the argument as “naysayers”. You, then, having belittled them and their motivation, don’t have to address them with any cogent points.
It then allows you to produce sentences like “Ange has come in and looks at things and thinks Europe’s a no brainer…”
Really? Ange thinks competing in Europe is a no brainer??
He’s an intelligent man and said no such thing and would say no such thing. It actually requires a lot of brains and many other attributes to become more competitive in Europe.
Saying we can do better does not make it so.
As we speak, we have 1 CL point only from 6. and last season saw us finish 3rd in a Europa Group and knocked out of the Conference League in our first match.
I admire and support Ange’s approach and attempts in European football but neither he nor Brendan Rodgers achieved that with us yet. No statistical analysis can show thAT, thus far, either BR or AP have improved our European prospects.
Both gave us thrilling Euro performances of bravery and invention but no qualification was achieved, as yet, by either of them.
I believe Ange’s team will earn more than 1 point in the current campaign but the odds but we are still 4th in the betting for Group F qualifying.
Real are 1200/1 on to qualify, Leipzig are 6/4 at best, while you can get 12/5 on Celtic and 11/4 on Shakhtar.
Now, two managers DID achieve last 16 CL status for Celtic and they are ranked in ability and affection way below Martin, Brendan and Ange.
European success for all was very much a “brainer” and will require even more brain and brawn and bravery yet.
The stats do not lie- These elite events have become the preserve of the Big Clubs from the Big 5 Leagues and, particularly, Spain and England, for the past 20 years. You get the romance of a lesser club like Ajax or Benfica making a semi-final every now an then, or Porto/Shakhtar getting to a quarter final. But for most clubs from Austria, Belgium, Scotland, Denmark or Croatia, a last 16 CL qualification is a rare occurrence to be cherished.
If we achieve one under Ange, it will not prove my point wrong.
Only if we and Anderlecht, and Copenhagen and RB Salzburg and Dinamo Zagreb and Anderlecht start doing this regularly will this monopoly have been fractured.
Otherwise we are back to interpreting outlier events as the beginning of a trend before waiting for the 2nd and 3rd and 4th piece of evidence to meet “trend criteria”.
Benfica, Porto and Ajax, with their traditions of coaching excellence and access and use of the South American market, have shown one way to make the jump to become a 2nd tier club but they are nowhere nearer to being seen as viable CL contenders ( you can get upwards of 40/1 on either of them; in fact on anyone outwit 8 clubs from Spain (2), England(4), France(1) and Germany(1).
That is the opinion of people with brains. I suspect Ange would not disagree with those estimations of likelihood. That won’t stop him from wanting to land a punch or two of his own in this lopsided competition.
It is dead easy on a blog to talk big about how easy it is to achieve in Sport.
The guys who have the real bravery are out there in a real competition where you don’t get to declare yourself the winner, you have to actually overcome the other guy.
Mod can you delete my post above please
HH
Saudi are always looking for an opportunity for ” human rights washing”, perhaps we may see a Livi golf style breakaway in Europe.
https://www.sundayworld.com/news/irish-news/father-of-aidan-mcanespie-dies-before-hearing-judgment-in-case-of-sons-troubles-death/1269918071.html
AN DÚN on 21ST SEPTEMBER 2022 2:18 AM
How, SPECIFICALLY and REALISTICALLY, do Celtic reach that £150m figure?
Thanks AN DUN for your reply to B2b
—-
To reach that figure,it would be possible imo with a planned a prudent strategy that would see CL qualification 3 years on the trot.
To me we have became a better football club,more efficient in players in/out,in the space of a year we have built a squad of considerable value,that could add to revenue,as long as the calibre of potential signing is of like quality
Unlike AD I do see us increasing ticket prices,in CL whereas the SB will remain per inflation.
Stadium revenue imo can be improved and the match day experience excelled.
The club are opening the new bar,giving another stream of revenue.
The club continue to develop the Celtic way,that I would like to see turned into a dortmund like zone for fans to come and enjoy matchday experience
A programme of continued renovation of all food outlets
The stadium as a conference venue should be promoted more,imo,not just on matchdays,everyday.
I have been to small private conferences and funerals at CP,these are areas to better
There is also the continuing development of barrowfield,a small development there allowing ladies teams and b squash play at a venue that’s our,and all revenue is ours(no ongoing outlays to other club
The merchandise as AD points out is excellent,but just as the Adidas link has boosted on from the previous sponsor we can boost on again so that when in a few years we look back we are 20/25%
Every seasons book holder should have a Celtic catalogue,given each year with a range of merchandise,from strips to rolex,what you can buy that is linked to Celtic,from weans rattles to luxury goods.we have massive potential.A few years back poster 4green fields visited dortmund,said the Celtic shop would be one aisle of the dortmund shop,merchandise bewildering in range,they should be the template for the fan zones.
We need to get the counsel to stop hindering us and use the economic clout being a £100m+ business in a rundown area gives.
On media/multimedia deals.
What’s wrong with a basic package for ctv to be given with SB? Improving communication with fan and club,wherever they may be on planet.communication with club and fan must always be looking to improve
Let’s look at our structured TV deals,domestically and in Europe? What can we do outside them? What TV rights do we hold for our historical rights to show.Our rights outside Europe and Scotland.again we can look at other clubs in other countries to see how they can oause thee sucking in of all monies into the EPL and stopping it becoming a football NBA,which uefa are weary of,with the influx of US capital into the epl things like top6 breakaway will mean uefa are always going to be on their toes.
There’s always room for growth at Celtic,it may get more technical and sophisticated incorporating fiff rev streams but every £ spent has the potential to be £1.01,
In 1994 when looking at possible income streams a lot that now exist didn’t then,we incorporate them,we improve and we get a little better,tis been that way since we left the hall at St Mary’s,and hopefully Celtic fans not yet born will xarry on the mantle,its for them we build
The 2024 changes to CL I would like more info on in the context of CLTV money,from a games perspective
I am led to believe groups of 8 instead of 4 resulting in 7 home games instead of 3 ,now if 3 games take us to £100m 7 will lead to….?
That’s 4 extra CL matchdays before we qualify.
4 days of having 60k at your door for an epic night
Thanks B2B for asking Q and An Dun for the prompt
Always looking to do a wee bit better
Hail Hail
SFTB @ 12.57
The Scottish cringe in 428 words.
No matter what is put in front of you — you still cling to the “not for the likes of us” nonsense put out by PL and his chorus of Board new media sock puppets.
Great to see someone with a growth agenda in charge of the football.
We need more desire / confidence / appetite.
AP is delivering that in spades so we have an opportunity to grow / deliver.
Interesting to hear the almost immediate anti-AP chorus after Sunday.
It was almost as if Pavlov’s dug was involved.
AT
There would be 5 home games
Under the new format, teams will play four matches more than is currently the case. They will no longer play three opponents twice – home and away – but will instead face fixtures against 10 different teams, half of them at home and half of them away. This gives the opportunity for clubs to test themselves against a wider range of opponents – and also raises the prospect of fans seeing the top teams go head to head more often earlier in the competition. The new format should mean that there is more to play for right up until the final night of league action.
Toaty Trumper @ 1.08
New CL arrangements — well off the pace.
We seemingly get 8 games drawn from a hat for the league stage.
Extra home game will be useful but not transformational.
Interesting to see how they try to even out the difficulty of the 8 random games.
36 teams laid out in order of their Euro co-efficients?
Extra 4 teams — second string leagues rather than more from the EPL?
Top = 36 placing points.
Bottom = 1 placing point.
8 opponents will all add up to 148’ish.
If you play the top then you also play the bottom?
Home tie vs away — starting to get complicated.
4 home ties = 74 placing points.
4 away ties = 74 placing points.
Excel level analysis but it might work.
Bada
John McAnespie rip. God bless him
HH
TQM @ 1.21
New format CL …
Is it 8 games or 10?
My thoughts are 8 but that is from memory.
Very grey memory.