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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Perhaps the reason ibrox was not chosen to host the League cup final is that the pitch is in fact a bog.
bournesouprecipe
Katanga
unusual ceremony insisted upon by govan council prior to entry to ibrox
http://www.youtube.com/watch?v=nM4okRvCg2g
Seems odd. One of our most important games of the season coming up and nobody talking about it.
timbhoy2
The main stand facade at CP is not listed.
You’re thinking of a Victorian toilet in Govan.
HH!!
doc is neil lennon
18:54 on 7 February, 2014
No worries, ordered one of each but how much each?
Keep the Faith!
Hail Hail!
Re the oposs
Valentines,
10 Stellas before bed keeps you going to the loo all night (if you’re my age,anyway).
Re the continuing discussion of The Bunnet’s merits, one of Fergus’s keenest admirers was Walter Smith. I don’t consider that a mark against Fergus – more a sign if Smith’s foresight as the fruit of McCann’s work only appeared after his (& Smith’s) departure.
Are the Sevconians boycotting their game tonight?
Evening bhoys
Just in from visiting wee Marco in yorkhill.
He is doing as well as we hoped. Epidural being taken out tomorrow so a few days before he gets out…
Hail Hail
Interesting post by Barcabhoy on TSFM
I don’t see him posting much on here but if he does apologies for jumping the gun
again
In business the trickle down effect is a well understood practice
The trickle-down effect is a marketing phenomenon that affects many consumer goods. Initially a product may be so expensive that only the wealthy can afford it. Over time, however, the price will fall until it is inexpensive enough for the general public to purchase.
This effect is just about to hit RIFC , only in reverse. This is more like the Tsunami up effect. It works this way.
Celtic have just announced another spectacular set of financials . The position of robust good health is corporate speak for ” happy as f*** ”
The opposite to this will be the feeling of Graham Wallace and the credible members of his board. Today’s financial news will just have made this worse. A lot worse.
This blog has discussed at length the options available to Wallace. What is not arguable is that Rangers , if they survive , will need a combination of cuts and cash injection . The biggest cuts are only possible via an administration , and this will bring a period of uncertainty and confusion.
This on its own delays the possibility of legitimate credible investment. The Tsunami Up effect now kicks in . Anyone , even a Rafat Rizvi type benefactor, will now understand that given Celtics incredibly strong financial position , the amount of cash needed to attempt to secure the CL money , has just skyrocketed. Celtic , even with their terrific financials , have just proved that CL income AND significant player sales profits is an absolute must if you want to turn a decent profit and generate surplus cash flow
The amount of money required by RIFC to get to the promised land of CL income is way way greater than has been speculated about previously . The Tsunami of Celtics financial success is going to engulf any attempt by Wallace to raise legitimate investment , and that’s before you consider the failure Rangers own trading and the crippling contingent liability .
Just stop and consider the probability of what is ahead and what would be required.
Celtic have very strong possibilities of repeating the financials just published for the next 2 years. CL qualification is very much within the clubs grasp. There are also players who have the same sales value as Wanyama , Hooper and Wilson. When Celtic sell Van Dyke , Forster and Matthews for example , the values will be similar if not greater than in the June 2013 window.
Although the 2nd half of the current financial year will probably show a loss of around £3.5 million , the full year should show around £18 million profit. Next year could be similar and the year after will depend on how new signings progress.
Potentially that , including this year , is a £50 million advantage over RIFC. Then if you are RIFC you have to buy a competitive team , then you have to fund the losses for this year and next. Then you have to appoint a scouting network which will deliver what John Park & co have , then you have to appoint a top class management team , then you have to pay for the repairs the stadium and training ground badly need , then you have to spend to develop the property assets bought by Green which are lying unused , then you have to get a merchandising deal which doesn’t just benefit Mike Ashley, then you have to get a catering deal which isn’t just a benefit to an unrelated 3rd party. Then and only then if you do all of that will you have even a 40% chance of success in getting to the CL and developing sellable players.
A conservative guess at the deficit , and therefore the funds required is £100 million. Given the 40% chance of getting say £15 million a seaon , lower than Celtic as history shows Celtics turnover has almost always been higher , the payback period is prohibitive.
It would take nearly 17 years to get cash return and that’s without compounding , and any beneficial effect on the share price is likely to be equally prohibitive
Given this scenario , the only likely outcome is a Spiv to Spiv ownership scenario , with more of what’s been happening since 2012.
If I was Wallace I would be actively lobbying for Celtic to get a move to England , with the hope RIFC could follow 5 years later.
I had a wry smile at the conclusion.
All Hail Marco
quonno – do you not know we’re obsessed?! :-)
T4
Turkeyboy
Wats the news on standin areas?
BSR-Didn’t know Sevco had closed the bottom tier?
VG
I’ll try again.
Re the possible introduction of a standing area.
I hope it will be positioned in the middle lower tier of the North stand.
Welcome back, the Jungle.
No Bobby Does It Petta
So we remove the dearest seats in the stadium?
Love
Why not Easter road?
Move game away from Glasgow and tell 10k + they can’t attend.
Aye ok.
I take it they’ve had to make their ground staff redundant?
Maybe below the no.7 restaurant as they moved everyone from there this season.
Glad I didn’t put money on a Pars win tonight- Losing 3-0 already.
this new lot seem a welcome addition to scottish football
we’ve been craving a bit of competition
Another full house at iPox I see.
Arthur Lee
No, meant below that and all way down to the pitch.
A new Jungle would be incredible and would soon be world renowned.
The winners of Albion v stenny or alloa v Dumbarton for Newclub in next round!?
Any takers?
LennyBhoy, to be honest CRC and I hadn’t discussed price. But I started telling people £5 each, so £5 it is, plus P&P for those posting, and any other associated costs, i.e. PayPal. Any profit made will go to Mary’s Meals. Giving, with orders in already, a healthy donation to a wonderful cause.
If you don’t want to miss out order yours here….
cqnbadges@gmail.com
http://twitpic.com/dug9xl
The Old Stylee one wins for me, CRC prefers the other, only because I let him have an opinion about that on!
Well he thinks he did:-)
C’mon the Old Stylee Badge!
Or one of each.
Mr Angry of Dalkeith here
why oh why am I subjected to live football on BBC1 between a low tier team and an even lower tier team?! This is ridiculous. And to think that mob think there is some form of conspiracy against them ! The temerity to even think that.
By the way, if you want to watch a more free flowing game of football, switch to Sky sports 1 – Huddersfield are playing super league. I know its rugbyy league but hey everything about it is better than the muck being churned up on a farmer’s field on the south side.
no bobby does it petta
20:01 on 7 February, 2014
I very much doubt a standing area will be Lower North, premium price seating area there.
Section 111, obvious!
Thanks for all the CQN badge reservations to date. 229 sales and climbing with the black and gold badge leading the stakes!.
Don’t worry if we have not responded, as we will be in touch soon
Remember, if you do not reserve your badges now, you may miss out and wont your lapel look dull :-)
HH
CRC
cqnbadges@gmail.com
http://twitpic.com/dug9xl
Token Tim
Stats….each to his own.
I find them quite useful, together with form
If Elbows McCulloch breaks 10 heads in 10 games, statistically I would not bet against him breaking a head in game 11.
If Sevco get 12 penalties in 6 games, then statistically I Wd not bet against them getting a spot kick in game 7.
So, tomorrow, given the stats, I Wd not bet Arsenal, Sunderland or Soton losing.
Good luck wt your coupon tomorrow, and fingers crossed for the hoops.
HH
BT,
good news re MARCO. more prayers sat night at MASS.
Doc badge design (traditional and old) 103
v
CRC badge design (new and dynamic) 123
:-)
doc is neil lennon
20:11 on 7 February, 2014
Although I have ordered one of each, I do not particularly like the black one to be honest but want to purchase one as it has the years on it…2004 – 2014. Pity the old stylie one does not have the years on it as well. I do still like the old stylie one though.
Keep the Faith!
Hail Hail!
Ooops sorry Doc
Doc badge design (traditional and old) 106
v
CRC badge design (new and dynamic) 123
Cheers fav uncle and soal..
You going for a shandy tomorrow S ?
AS if the beeb didnt have enough hun pundits
Doc
Yeh, prob non starter due to pricing complexities.
In an ideal world and all that.
It would look awesome.