Celtic hit £101m turnover


Celtic reported turnover of £101.6m for the year to 30 June 2018, the first time the club broke through the £100m barrier.  Just as income rose from £90.6m the previous year, costs rose to £87.1m (2017; £76.3m).

The club was profitable to the tune of £17.3m, buoyed by gain on the sale of player registrations of £16.5m.  Without Champions League football, this season’s results will be significantly different, but net cash (after debt and similar were deducted) was £27.0m, so we can continue to operate without the need to cut costs.

The most striking aspect of these figures is that, with the current wage structure, we are roughly breakeven with Champions League income (before player trading).

We are in the middle of first team contract renewals, which will push wages higher still.  We are increasing our cost structure despite the lack of Champions League football, but this is necessary.  There are risks (transfer market crash), but these are no more relevant to Celtic than anyone else.

We are never going to guarantee Champions League money every season (no matter how easy your pal tells you it is), so buying wisely and selling before players exhaust their contracts or lose form is critical to the operation.  Therein lies the challenge – which is also easy, just ask the same pal.

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  1. Celtic chief executive Peter Lawwell has ‘insisted the champions remain committed to strengthening their playing squad but “hyperinflation” in the transfer market makes it increasingly problematic. The release of Celtic’s annual accounts have revealed the club achieved record revenue of £101.6 million in the 12 months to 30 June this year, largely as a consequence of a second consecutive season in the group stage of the Champions League.



    That was an increase of 12.1 per cent on the previous year but Celtic’s operating expenses also rose, by 14.1 per cent, to £87.1m in the same period as salary costs increased. Celtic made a pre-tax profit of £17.3m, compared to £6.9m in 2017, with a cash balance of £27m, net of debt, at the bank. The accounts do not include the record sale of Moussa Dembele to Lyon for £19.7m on the final day of a summer transfer window which proved a source of frustration for Celtic manager Brendan Rodgers and the club’s support in terms of the new signings brought to the club.



    But Lawwell is adamant Celtic will continue to commit resources to the recruitment of players they consider are within a sound budget for the club. “Our objective is always to bring players to the club who will improve the squad,” said Lawwell.



    “Given the quality of our existing squad that is a challenging task, made more difficult by hyperinflation in transfer fees and player salaries in the market. “Nevertheless, our objective is to invest everything that we can into the football operation without putting the club at risk. “The club recognises that success on the pitch leads to success off the pitch, which is why the board is committed to investing in our football operations.



    Our ambition remains to create a world class football club. “Our success on the pitch this year has allowed us to commit, not only to fees for the transfer of player registrations (£16.6m, rising from £13.8m in 2017), but also to player, football management, coaching, recruitment, medical, performance, sports science and the youth academy costs. “Total labour costs in 2018 increased by £7.1m, from £52.2m in 2017 to £59.3m (14%), largely due to increases in the football department.



    This has allowed the club to retain key football personnel including Kristoffer Ajer, Kieran Tierney, Calum McGregor, Tom Rogic and Leigh Griffiths on long term contracts. “We continue to search the world for talented players to play the Celtic way, such as Odsonne Edouard who joined the club for a club record transfer fee. Player recruitment and development continues to be fundamental to the club.



    The Hootsman

  2. Aberdeen Ladies are in line to be relegated for a second successive season after having three recent wins reversed for fielding an unregistered player.



    3-O Rules for some but not for others CSC

  3. WDH …Mine is frae the co-op so as I get the divi and contribute to good causes and the well being of my bank manager…if not my liver! ??



    Hail Hail




  4. GreeninbingleyinOslo on

    DUMBHOY on 19TH SEPTEMBER 2018 6:51 PM



    I am not an accountant, but that sounds like it could be summed up in four words: the Winston Bogarde effect.

  5. If we were to lose Peter Lawwell from the board, would we not then also lose our voice at the top table of European football ?


    “Through Peter Lawwell’s continued involvement in the Board of the European Club Association, the Club Competitions Committee at UEFA and the Professional Football Strategy Council of UEFA, the Club and the game in Scotland are well represented in this very important arena. “

  6. a wee blast from the past….



    The wind blew as ‘twad blawn its last;


    The rattling showers rose on the blast;


    The speedy gleams the darkness swallow’d


    Loud, deep, and lang, the thunder bellow’d:


    That night, a child might understand,


    The Deil had business on his hand.



    smiley hid on tae yer bonnets thing




  7. So we have maintained a salary to turnover ratio of less than 60%.



    Clearly Paul takes no notice of the blog anymore as I had forecast this for the last few weeks.



    We have more cash than the end of the rainbow and yet the focus is on wages. Yet the article avoids the wage to turnover remaining healthy and doesn’t bother to really look at the projected wage. Why? Because it would expose again the lack of transparency and the lack of any plan other than minimum risk during the transfer window.



    I bet come the interims or next year that the wage bill will not have increased.



    Dembele gone. How much was he paid?


    Armstrong , Roberts, Musonda, Sviatchenko



    Took on Hendry, Compper Izzy, Arzani as well as Mulumbu, Benkovic and Morgan.



    I would be very surprised if the net salary change on those incoming was positive.



    I also expect that there will have been an increase in normal salary bill due to better deals for existing players.



    Ultimately we have £27m plus £20m in the bank from the one off fee we received for Dembele and it looks as though we are not prepared to invest that in wages even though the projected turnover will be close to £100m next year with the Dembele fee and Europa League. I don’t expect the player bonuses to be anywhere close to the last two seasons and in previous seasons we have qualified the difference in salaries due to these bonuses has Amounted to several million pounds. Say 3 million for bonuses and this takes your wages back to £57m. In order to achieve this and maintain a 60% wages to turnover threshold we would be needing a turnover of £95m.


    I also expect Boyata to be sold and squad players to leave in January. More turnover and wage reduction and yet more cash at the bank.


    I think £95m is more than achievable without selling Tierney or Ntcham!



    Can anyone tell me what the point in having all of that cash for a rainy day is if the rainy day arrives and you still sell players to put yet more cash away for another rainy day?



    The accounts demonstrate that any potential debt situation is now covered. What are these debts by the way or should we not ask?



    Also why and who was paid over £3m for an onnerous contract?

  8. Who would win in a fight between a player with an onerous contract and one with an onanistic contract?

  9. We have never been financially stronger than we are today and yet we could not qualify for the champions league group stages.


    What attracts foreign players to join celtic is the champions league and the shop window that it provides.


    no champions league. no dembele, no ntcham and no edouard.


    Next season we will be poorer on and off the field.


    I think it is likely that we will never qualify for the group stages again.

  10. McGinn at £2.75m, Piccini at £7m, hyperinflation isn’t what it used to be.


    More spin to try to cover his inadequacies in the transfer market in the summer.


    That Scotsman piece could have been from here.

  11. £47mmcasj in the bank with all debt paid and we still need to sell players to manage an inseason budget. Wtf is going on

  12. West Craig’s that is utter nonsense-



    The main threat posed to us not retaining a higher turnover is the backside falling out of the transfer market. Our turnover gets us up there with the ability to pay £60m in salaries.



    How many of the teams we play in the qualifiers pay anywhere near that?



    We should watch very closely who benefits from the cash at the bank.

  13. MULLET AND CO 2 on 19TH SEPTEMBER 2018 7:06 PM


    £47mmcasj in the bank with all debt paid and we still need to sell players to manage an inseason budget. Wtf is going on


    I take it you meant the £27m quoted in the results ?

  14. The empirical evidence is that wages paid correlate to cups and winning stuff over time.


    We must be the richest club in our champions route to the qualifiers by some considerable distance.


    We buck the trend.

  15. MULLET AND CO 2 on 19TH SEPTEMBER 2018 7:02 PM



    “Can anyone tell me what the point in having all of that cash for a rainy day is if the rainy day arrives and you still sell players to put yet more cash away for another rainy day?”



    Precisely. It appears as if our business model is designed so that we hold a huge cash reserve in the bank at all times. Given that we don’t know the full extent of our debts, we could have as much as £50m in the bank.



    Even if we are more conservative and say its £40m, how many businesses hold cash equivalent to 40% of their annual turnover? How many football clubs?

  16. Embramike,



    £27m plus the one off payment for Dembele of £20m.



    Cash for Dembele was paid in one sum and this was announced to the stock exchange.



    Unless we converted some other speculative amount to be ring fenced for debt it’s now in the bank.

  17. Good Evening fholks



    2 things worthy of note:



    £42.6m in the bank at the end of June, with a loan repayable of £6.5m, which is repayable (if not refinanced) in July 2019, which gives a net debt figure disclosed of £36.1m.



    Before Dembele monies



    £3.5m has also been provided as a cost and hence a reduction to the profit declared of for “onerous employment contact costs result from a situation where the committed costs under that contract are assessed as exceeding the economic benefits expected to be received by the Group over the term of the





    Is this Marvellous Marvin?



    I will comment further when I see the full accounts







  18. We keep hearing there’s a wage structure at the club so why such a large spend?



    I’d have thought our playing budget would/should be in the range of £30-35m. Where’s the other £35m? Have we pre-paid building work for the hotel?

  19. From kikinthenakas via Facebook.


    Once we had Empires ruled by Emperors and Kingdoms ruled by Kings now we have Countries ruled by

  20. The Dembele money will barely offset the loss in European income due to drop from Champions League to Europa League especially with our increasing wage bill

  21. NEGANON2, love reading your stuff mate, safe flight, Btw , have a look on sentinial celts, you have a fair few fans on their bud





    On turnover of c£100m,we made a profit of c£17m. That is NOT made up,as you suggest,largely of profit from player trading of c£16m.



    Player trading was largely cash neutral,with income and expenditure of c£16m each.

  23. Dumbhoy


    Maybe, however I am guessing as the club have not announced if he has left, just that he isn’t in the EL squad, whoever scouted him and whoever did the medical should follow him out the door, this is every bit as bad as Boerigter another very costly mistake.

  24. Superb second goal for Ajax. Just as well we are not in CL. On this showing, they would have slaughtered us.



  25. Neustadt-Braw on 19th September 2018 7:02 pm



    The weather always seems so much worse when yer being pursued by an Ayrshire coven led by a short shirted wide eyed (but strangely attractive) witch.



    It does when I’m the one being chased anyway (That is ‘chased’ and not ‘chaste’)?‍♀️??‍♀️?



    Hail Hail




  26. Just seen a guy walk oot a shop with chips n cheese. He opened up the lid and the wind blew aw the cheese straight aff it. ?



    Hawd oan tae yer Chips n Cheese folks !



    smiley Ronaldo gets a red thing




  27. So did Southampton pay the full £7.5m for Stuart Armstrong in June ?



    I would have thought with profits of £17m + being declared ( and tax to be paid on such ?)


    We would have withheld this money into July ???


    Also over £18m costs for non football operations ?

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