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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If wee have a bloated squad of players,who are unlikely to be playing in the first team,then surely it’s better to give them the pay off, they are entitled to,it makes sense to me,and who takes the blame for having a huge squad, Watching Ajax v A E K,the commentator asking what will Celtic make of the Greeks performance ???
Context .. £100 Million Turnover ..
Brendan arrives when turnover was approx £50 Million ..
Year 1 Brendan grows turnover to approx £90 Million ..
Year 2 Brendan grows turnover to approx £100 Million ..
Year 3 Peter reduces turnover to approx £ 75 Million ..
The Manager then leaves ..
Year 3 could have been turnover of approx £ 105 Million ..
Year 4 could have been turnover of approx £ 110 Million ..
Year 5 could have been turnover of approx £130 Million ..
Year 5 would have had significant extra turnover due to 10 In A Row ..
We’re highly unlikely to see a £100 Million turnover or Champions League Qualification again for the next 10 years ..
I hope I’m incredibly wrong, but as a club we’ve lost our momentum, and it will
incredibly difficult now to get it back to previous levels, particularly where
Champions League Qualification is concerned ..
That Peter and Brendan fell out, will go down as a disaster for our club ..
The club really did have a 5 year golden opportunity, which meant buying the right players at the right time, to give the manager the best chance possible to continue with year on year progress ..
Unfortunately the shambles of this summer, has now destroyed that opportunity, hence why we’re now playing Europa League football, and will have a drop in turnover of at least £25 Million ..
It’s really is incredible, that yet again, another golden opportunity for year on year continued progress, has been lost again !!
Matt is that where the saying “pooing wan aff” came to life ..
smiley poor wee Meg thing
Braw
AEK now getting gubbed.
NEUSTADT-BRAW on 19TH SEPTEMBER 2018 7:53 PM
Very good, in fact a real tonic as I am a bit low tonight. I had that link saved on a previous laptop and lost it. Very good Glasgow wind up. HH
NORRIEM – If the deal went through before 30 June then the transfer fee was ‘earned’ in that year and taxable irrespective of when the cash was/is actually received.
Crc post dembele it’s £70m. Why?
Man city down 2:0 now
CELTIC1MEMBER1VOTE
Spot on.
Posters are not looking at the bigger picture, no doubt you will have the clique on your back for telling them inconvenient truths.
Neustadt-Braw
Thereby hangs a tale….and a tail??
Hail Tail
Matt
JMCCORMICK….
take care pal….ynwa
smiley dinae let the bassas get you doon thing
Braw
A refreshingly open, honest and transparent communication from a Board:
https://www.falkirkfc.co.uk/2018/09/19/chairmans-question-answer/
Never catch on….
HH
priceless and always always braw….
from Mr Smiley ……
Braw
https://www.youtube.com/watch?v=ebviKewRtvc
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
CELTIC1MEMBER1VOTE on 19TH SEPTEMBER 2018 7:43 PM
Context .. £100 Million Turnover ..
Brendan arrives when turnover was approx £50 Million ..
Year 1 Brendan grows turnover to approx £90 Million ..
Year 2 Brendan grows turnover to approx £100 Million ..
Year 3 Peter reduces turnover to approx £ 75 Million ..
The Manager then leaves ..
Year 3 could have been turnover of approx £ 105 Million ..
Year 4 could have been turnover of approx £ 110 Million ..
Year 5 could have been turnover of approx £130 Million ..
Year 5 would have had significant extra turnover due to 10 In A Row ..
We’re highly unlikely to see a £100 Million turnover or Champions League Qualification again for the next 10 years ..
I hope I’m incredibly wrong, but as a club we’ve lost our momentum, and it will
incredibly difficult now to get it back to previous levels, particularly where
Champions League Qualification is concerned ..
That Peter and Brendan fell out, will go down as a disaster for our club ..
The club really did have a 5 year golden opportunity, which meant buying the right players at the right time, to give the manager the best chance possible to continue with year on year progress ..
Unfortunately the shambles of this summer, has now destroyed that opportunity, hence why we’re now playing Europa League football, and will have a drop in turnover of at least £25 Million ..
It’s really is incredible, that yet again, another golden opportunity for year on year continued progress, has been lost again !!
———
Hard to argue with the gist of this. Imho.
HH jg
Jobo
Sorry question was if full £7.5m was paid ?
Neganon- I think we are trying to get to £100m in cash at the bank as well as turnover:-)
I do not know why.
NorrieM- Re Stuart A- the link below ( if correct) suggests that the player registration was 1 July 2018, so profit and indeed cash would not be included in the declared numbers to June. When the full accounts are published we may be able to clarify/understand better.
https://www.transfermarkt.co.uk/stuart-armstrong/profil/spieler/130765
HH
CRC
Off tonight to see the band with – depending on who you ask – either the best band name ever, or the stupidest band name ever
The The
Who would win in a fight between a player with an onerous contract and one with an onanistic contract?
Jamesgang
I have always thought that DD would do a City Airport and hold on to us until we made a move and then sold us for a pisspot ful of money…
but, increasingly, that seems unlikely to happen ….
so, are the books being fattened to make us more attractive to a purchaser?
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.
CRC
Thanks, I thought this would be in July – clever accounting ?
NEUSTADT-BRAW
Thanks, my sentiments exactly. I’m a pretty good counter puncher. As Nelson Mandela said “ I never lose; when I don’t win, I learn”. I am paraphrasing but the message is clear.
Another great quote to live by ….” never look down on anyone unless you are offering to help them up “. Take care everyone. HH
We keep hearing there’s a wage structure at the club so why such a large spend?
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?
So, financial rude health……………..?
I’ll check back to see the worst possible interpretations and the most far-fetched projections later.
Some of which no-doubt posted by genuine Tims.
As for the ithers…..
HHH.
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
contract”.
Is this Marvellous Marvin?
I will comment further when I see the full accounts
HH
CRC
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?
JMCCORMICK
Take care!
HH
Man City Champions league,can’t fill.there stadium,they don’t deserve The Arabs putting a lot of money into that Club, Celtic would have been good for them,
When we got knocked out by AEK I was disappointed mostly because i felt we had better players but we were outcoached.
I said on here they were an ordinary team who would be cannon fodder in the group stages.
Tonight Ajax beat them 3-0.
All 3 goals came from passes we seem incapable of making with our set up and system.
The first two goals came from diagonal passes into the box and forwards running across defenders to shoot home.The third was a long babel over the full back that the winger ran onto and volleyed home.
I hope our coaches get to see them and notice how much more potent and effective these kind of passes are over our ticky tacky square ball backpass system.
£36m in the bank is pointless if the team on the pitch is weaker. That is where we are at present and as a result will see a 25-30% drop in turnover this year.
MIT
Enjoy The The gig. Their first 3 albums in the 80s were never off my deck. Matt Johnson is a genius. Him and Johnny Marr were a match made in heaven too. Dynamite.
Lyon lead against Manchessity. Denayer playing but Dembele only made the bench.
HOT SMOKED on 19TH SEPTEMBER 2018 5:22 PM YOU WROTE:
…Whose contribution is more accurate, Paul`s or Neganon`s ?
Paul’s IS a contribution; the other is a personal attack.
Paul’s is an attempt to inform; the other is puerile dross from a pariah.
Paul’s articles are the reason we come here, the other causes people to leave.
T
JJ
£101M. Enough for 2 decent players for a club with champions league ambitions. Nothing to see here folks. You can go about your business. Move along.
So back to football operations costs
£59m this posted financial year, which includes a £3m write off exceptional cost
So without this cost, would have been £56m, compared to previous season of £55m so not a major change in our football budget
Wonder if that Chelsea player ( Musonda) was part of the £3m write off ??
DD
Thanks. I’ll let you know how it is. The guy that is playing guitar on the tour if a friend of, and was recommended by, Johnny Marr…. so must be pretty good if JM is recommending him.
And Johnny Marr … still my favourite guitarist ever. As you say, the stuff he did with The The is sublime… and I loved his work with Everything But the Girl.