Celtic’s revenue for the interim six months to 31 December 2013 fell 11% to £44.8m (2012: £50.1m), while operational expenses also fell, by 7%, to £34.3m. The club had £5.7m cash in the bank, £5.6m more than a year earlier.
A few factors behind the figures:
We played fewer home games, 16 as opposed to 19 the previous season, and although you may pay your season ticket up front, the club only recognises the income when games are played (cash at bank is recognised as soon as your payment lands).
Profit was up to an incredible £21.3m, from £14.9m), largely as a consequence of the sale of Victor Wanyama, Gary Hooper and Kelvin Wilson last summer. Without wanting to go into the who ‘A word’ (it’s not 2004), money coming in from player sales goes straight to profit whereas money going out on player purchases hits profit gradually over the period of the player’s contract.
Investment in players was almost identical to the previous year, £5.0m from a 2012 figure of £4.7m.
Financially these are great figures but there are potential weaknesses lurking. The club are absolutely dependent on reaching the Champions League group stages more seasons than not. This brings significant revenue – and supports whatever player valuations the club will be able to achieve should they sell. It also acts as the most effective tool to attract talent to Scottish football.
Finishing fourth in the Champions League, not second, is the most significant factor in the interim drop, but it will have a more significant impact on the second part of the season, which will be without a knock out stage round.
Celtic are still repointing the club away from the arms face they fought with a lemming club but they have delivered the key on-field objectives, which in itself takes care of the finances.
If you would like to read the new CQN Magazine, GO HERE to read properly, and for FREE, the graphic below is just a taster.
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LennyBhoy,
Sorry mate didn’t see any earlier post.
Been out with the kids since my last post.
livibhoy – god bless wee oscar
16:48 on 7 February, 2014
NatKnow – Supporting Wee Oscar
Didn;t think Edinburgh was 10 miles in total!
——————-
10 MINUTES ya daftie! I’m in Colinton.
I agree I hope Neil is our manager for many years to come and wins us many many more trophies. Neil we are with you fella. H.H.
Celtic chief executive Peter Lawwell claimed the club had no specified limit on a single transfer fee as they reported pre-tax six-month profits of £21.3million.
Celtic posted the interim figures up to December 31, 2013, after making a £16.5million surplus on their player trading, thanks to the sale of Victor Wanyama, Gary Hooper and Kelvin Wilson.
Neil Lennon insisted last month that Celtic could afford to spend up to £6million on one player but the club’s three January arrivals – Holmbert Fridjonsson, Stefan Johansen and Leigh Griffiths – together came in at about half that sum.
However, Lawwell declared that “value” was the key factor in determining what they would spend on a player.
“We brought in three players in Janaury,” Lawwell told Press Association Sport. “Everybody wants more and wants better. We have got the resource that allows us to do that.
“The whole thing is about creating value. We will buy players on the basis of, not price, but if they are value for money.
“That means we don’t limit ourselves to a budget or a number. We have got a good financial base to hopefully go out and strengthen the team.”
Celtic have been loath to break their wage structure to sign one key player but Lennon has found it difficult to replace Hooper’s goals. Strikers Teemu Pukki and Amido Balde were signed for a similar amount together to what Norwich paid for the Englishman alone but have only hit a handful of goals.
But Lawwell signalled that there was room for manoeuvre.
Lawwell said: “It comes down to value. If there is a player the manager wants and it fits with us, without disrupting what we have, and is not in any way negative to what we have developed, then of course we would look at it.”
Celtic’s increased pre-tax profit, up more than £6million on the same period in 2012, came despite an 11 per cent fall in revenue.
Income decreased to £44.8million, partly because there were three less home games and Celtic knocked £100 off their season ticket prices, and because they won fewer Champions League points and therefore less financial reward. Outgoing transfer fees were similar at £5million.
Operating expenses fell seven per cent to £37million and Celtic had £5.7million in the bank at the turn of the year as opposed to a £100,000 debt the previous Hogmanay.
Celtic reported exceptional operating expenses of £2.3million relating to what they called an “impairment charge”. Lawwell said: “That’s just a payment of some of our assets. I can’t go into detail on that.”
The Celtic chief executive added: “We are delighted that we have got a solid financial foundation for the challenges ahead in Scottish football, and we are all excited about it.
“The second half of the season is more challenging than the first half.”
“You can see there are challenges in attendances. Maybe because we are so far ahead, people are finding it less exciting. That’s one of the challenges for the game in general in Scotland. We are competing against stronger leagues in the Champions League.
“We have resources to invest in the squad. We have invested in a multi-million project out there (the car park). We have invested in the supporters, the £100 cashback cost us several million quid. And we have bought players and we have got resource to hopefully strengthen in the summer, prior to the Champions League.”
Chairman Ian Bankier’s report also stated that they would deliver safe standing areas this year.
via BTSPORT
weeman67
18:46 on
7 February, 2014
Absolutely fascinating,now could you tell me,what does drinking
10 bottles of stella before bedtime do for you…….thanks in advance.
tonydonnelly67
Ta for confirming the Brazen is a pub for the brainy fholk
Valentines
I know what it does for me and I don’t think its medically recommended…
Gotta go ,Joe.
Seeya.
Still,Laughin’
alentinesday
18:59 on 7 February, 2014
weeman67
18:46 on
7 February, 2014
‘what does drinking 10 bottles of stella before bedtime do for you’
####
Well, as they would say in the Brazen Heid
‘Marry, sir, nose-painting, sleep, and urine. Lechery, sir, it provokes and unprovokes. It provokes the desire, but it takes away the performance. Therefore, much drink may be said to be an equivocator with lechery. It makes him, and it mars him; it sets him on, and it takes him off; it persuades him, and disheartens him; makes him stand to and not stand to; in conclusion, equivocates him in a sleep, and, giving him the lie, leaves him.’
Neganon2
Your opinion of me is of no interest to me, but what ever floats yer boat tiger fill yer boots mate, and actually while we’re on the subject, I find your post, mundane and juvenile, so there yi go.
Just heard Neil’s press conference. I notice he wasn’t asked about the venue for the League Cup final. Maybe that’s because he didn’t tell a journalist to ask him so he could sound off with a rehearsed reply……..
weeman67
18:46 on 7 February, 2014
Given the demographics on CQN that is an important piece of info.
ernie lynch
19:04 on
7 February, 2014
Cheers for your wonderful response,am effed if I get it mind!!!!
Geordie Munro
16:37 on
7 February, 2014
Turkeybhoy,
“These teams have been stripped of their best players”
You were on here last July/August claiming the very same about us.
Some memory there.If you read what I said,you will see that is what I said!!.We were stripped of our best players.Thats why it was a shambles.??????????
You really have lost me with this,sorry.
valentinesday
A hangover, and if not you get the podium for beer drinking………..mind you there is a few on here who will dispute that..??
Neganon
What wad the exceptional expense this time ??
Good evening friends.
Teams positioned 1 and 2 in the league meet head to head in the Scottish Cup so reasonable to anticipate a cracking end to end game. Don’t underestimate the team in 2nd place, even though they’re away from home. And don’t dare highlight the fact that the upper tier is, in the main, closed.
After which I can then continue to look forward to our own game tomorrow.
Jobo
valentinesday
I should probably have used the word contest rather than dispute, I am sure there will be a few contests after the game tomorrow..??
Rather than Murrayfield, I would rather have Celtic play their CL qualifiers at Easter Road.
Given the historically lower crowds for the first qualifier, the Easter Road capacity of around 20k would help create a better atmosphere than the cavernous empty seats at the home of Scottish rugby.
It would also ensure that the stadium costs would remain within the SPFL.
It would ruffle the feathers of the Sevco fans but we could possibly survive that.
Tony D
I get that you have an intense dislike of the Celtic Trust, that’s your perogative.
However, as one Celtic supporter to another, I would ask that from now on you desist from making personal posts about Jeanette Findlay.
Yours in Celtic.
Tonydonnely you say my posts are juvenile? Yours must be embryonic! You dislike students because you dislike clever people. You are hun like in your desire to dumb down. Is this really what CQN and celtic supporters have to look forward to. You posting stupid links all day and criticising anyone who shows any signs of intelligence?
PFayr the exceptional expense wheeze? See PL comments. It’s just about assets and he can’t talk about it.
PL utterances on the accounts are brilliant.
We buy players on the basis of value (clearly nothing to do with football ability or fit with a team.
For those who still think NL buys the players read PLs bizarre statement on what happens if the manager wants to buy a player. Errr no conditions there then!
I also liked the challenges in attendance bit. Strangely no mention of alienating your support.
Having said all that I am sure balance sheet lovers will be delighted. And Tony Donnelly will tell the rest of us we are trying to be far too clever commentating on any of this.
Celtic trying to pull the wool over the supporters eyes. Surely not!
Agree Jobo tomorrow’s game will be hard fought one I anticipate it to be, could be the game that sees us lose our clean sheet record breaking run, the team will need to be really focussed and on there game as Aberdeen will provide a more stern test as it’s a cup game
Can’t help but watch the big game in Planet Fitba’ this evening…….
Borussia Munchengladbach vs Bayern Leverkusen of course
Going for the Munchen boys on this one…. ” Give me a B ! …. Give me an O !….. ” this is gonna take a while
Posted on Sevco share site by “Jonnybhoy”
(not me!)
the 45K tickets sold at the cash turnstiles tonight will see the vat paid and the club safe for the rest of the season
__________________________________________________________________________
As if……………….!!
HH
Incidentally tonydonnely do you have that list of transgressors you compiled or where you only kidding on about the list that you have?
Was at celtic park this afternoon, a lot of work being done outside, the old school house demolished, the workmen said the school will be demolished next week. looking at the plans when all the ground work is finished, the place will be looking grand, the only thing that will spoil it all will be the main stand, it will be totaly out of place, 2 workies and i may add 2 tims said the main stand is horrible, and if we all have a look they are correct, i know it supposed to be a listed building but surely something can be done to make it look better, maybe when fergus gets back he might contribute to it ,after all he whent away with 45 million pounds profit, so come on fergus or desmond start the ball rolling and do something im sure a lot of celtic supporters would put there hands in there pockets, to see the main stand being upgraded, anyway 4- 0 for the bhoys to-morrow, wonder what the odds will be .
GG, Good Call – Easter Road is a good shout – Murrayfield, particularly for a football game where you’re way back from the edge of the pitch, is not good for generating an atmosphere
Sleekit demands to know were the crowd is !
Dont see the point in Murrayfield.We will be drawn against a real minnow team,why the need for big stadium.Someone earlier mentioned Easter Road.Why not?.How many do they really expect to travel?.Easter Road,big enough.
Great news on the standing areas.
These peepil should only be on TV after the 9pm watershed.Some weans will be traumatised for life.
I didn’t know the subway was on strike in Glasgow this evening.
Anyone hear the worlds greatest st mirren fan on shortbread saying nobody on sportsound said that NFL ‘brings it on himself ‘,thought Brittany said that on Saturday.didn’t hear all the interview
!!Bada Bing!!
Nae Meatball Marinara for you then
Turkeybhoy 19.35
Can you explain what your post relates to?
TT
Didn’t know Sevco had closed the bottom tier?
Wee roly poly not happy about this “carve up” …….cannae take his mind of food…….poor wee soul
Turkeybhoy
To clarify ,what is the news about standing areas?
TT
Turkeybhoy
It will be 4 mile further to go to Easter Road from Glasgow