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Celtic money in bank more than any other club’s turnover

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Celtic’s interim accounts for the six months to 31 December 2018 were published yesterday.  Income was down £21m on the corresponding period last season, to £50.015m, largely as a consequence of not qualifying for the Champions League group stage.

There was a corresponding fall in operating expenses, down £4m to £43.823m, as Champions League bonuses were not earned.  The relationship between operating expenses and income is important for any business.  For the period, Celtic were able to pay current level of wages and still produce a £6m operating surplus.  This figure will be negative for the second half of the season, but operating expenses and income will not be hugely misaligned by the end of the season.

This six-month turnover of £50m is just £2m shy of the 12 month figure the last time we failed to reach the Champions League group stage, in season 2015-16.  While Champions League revenue remains hugely important to the club, the reality is that increased revenue from season ticket sales, and significant increases in merchandising, commercial and multimedia activities, allows Celtic to carry its significantly higher wage bill without jeopardising the club.

The final six months of last season, which saw one Europa League tie and a run to the Scottish Cup Final, contributed £30m revenue.  A comparable trading period this season will see annual revenue reach £80m.

For some perspective, that is higher than revenue in any Champions League season before Brendan Rodgers’ arrival, and only £10m short of the £90m revenue in Brendan’s first treble winning season.  Without Champions League income, this figure would be a fantasy as recently as 18 months ago.  There has been a transformational change in the robustness of the Celtic business model in that period.

The Dembele transfer to Lyon pushed the player sales revenue to £17.563m, all of which dropped to operating profit, which was £18.968m.  Profit after tax was £15.233m and money in the bank (net of any loans etc.) was a very healthy £37.7m.

Since I started financial analysis on CQN in 2004 I said that Celtic spend all monies received over any business cycle you care to mention – usually taken to task on this point in seasons of surplus, then forgotten about in seasons of loss, but it has always held true.  Always.

What does this mean for a club with £37.7m in the bank, which can increase its annual revenue by 30% with Champions League qualification?  It means we have the money to buy central defenders and a right back in the summer, while maintaining current wage levels and not selling key players.  This does not guarantee we will get the right players in, or that any of them will earn a Champions League bonus.  These are the challenges.

Challenges they may be, but such problems are the fantasies of every pretender to our domination of Scottish football.  Celtic have more money in the bank than any other surviving football club have turned over in a year in their history (by £5m).  If others try to keep up with Celtic they will reach a familiar end.  This is the established normal and it is not going to change.

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  1. Will never understand why supporters get so annoyed with celtic having money in the bank. I dont think its unreasonable for celtic to have a plan to proof the future I.e. money in bank. I believe ajax are similiar to celtic in that they too have, over the years, built up their bank account, more so actually. I would prefer much more in the bank and I have no problem with capital investment that will help the club longer time.

     

     

    Our main issue, as I see it is that we invest to much on a large squad vs. a smaller squad with more quality. Our first team squad should be no more that 20 outfield player and 2 keepers.

     

     

    Thereafter it should be all about our youth. We needs to scout youth player early and commit to promoting from within the academy. That does seems to be the plan to be fair.

     

     

    I am hopeful that the squad size is more a legacy issue to be addressed over time, rather that a desire to have a massive squad.

     

     

    We also need to learn how to manage transitional phases better I.e player sales, than is currently the case which at time does seems disjointed.

     

     

    Overall it is clear we could do much better in some areas, just like any other club. I dont think that will be news to celtic and i am sure these issue are always looked at and efforts made to addressed them.

     

     

    Only time will tell

  2. Gradual increase in ‘cash’ with managed ‘cash’ and continued play in Europe should help us get even better players willing to play for us and get us further in Europe. Just takes time.

  3. Canamalar it looks like OCD obsession on

    I was sure that when they introduced offering a two match ban for red cards, their was a supportibg statement that advised I’d this was rejected and an appeal was made further penalties would be imposed, players loosing appeals would suffer longer bans. We have seen this imposed on other players who don’t play for the rotten mob, apparently if it’s the rotten mod then upholding the sanction is the equivalent of extending the ban I suppose.

  4. Canamalar it looks like OCD obsession on

    Stephbhoy,

     

    All the money goes back into the club, however paying dividends is included as back into the club, the more profit and money in the bank the higher the dividends. So making sure there’s plenty in the bank is actually diverting money from the team to pay preferential shareholders.

  5. Ron Bacardi @7:05 pm

     

     

    “SETTINGFREE,

     

    Which BBC quiz was that?”

     

     

     

    It was this one

     

     

    BBC CL quiz

     

     

     

    BTW- Just watched a recent Mastermind episode and John Humphries asked “Which Scottish club was relegated from the top to the 4th division in 2012?”.

     

     

    It shows how entrenched this narrative is in popular consciousness. And the fact that the contestant answered “Celtic” to the question, shows how much importance they give it.

  6. Picking up the vibes of the dobbers excitement rising on the back of the abuse court case rumours they are spreading. Its sad to think that they can get so excited about such a traumatic subject. Shows how low they will go.

  7. Olympique Lyonnais published their six month financials yesterday.

     

     

    In the six months up until 31 st December, turnover was 168 million Euros and the resultant profit was 53.9 million Euros. TV and Marketing accounted for 82 million Euros of income.

     

     

    Football today is about the size of the fish. Celtic prey on smaller fish signing players up to 7-9 million Euros. Lyon are a bigger fish than Celtic and managed to eat up Dembele for 20 million. Arsenal are a bigger fish than Lyon and ate up Lacazette from Lyon for 53 million. Juventus are a bigger fish than Arsenal and ate up 400k per week Ramsay.

     

     

    Money is ruining football and the bigger the fish the easier it is to gobble up their prey. A fish bigger than Celtic can sign any Celtic player they set their eye on.

     

     

     

    Sent from my iPhone

  8. Can i ask a stupid non accountant question

     

    In the summer of 2018 (year end accounts) it was claimed we had £29.8m cash in balance

     

    How come with £15.23m profit for last 6 months to end Dec 18, we now only have £37.7 m cash ???

     

    When I went to school I was very good at arithmetic (& maths ?) 29.8+ 15.23, would have come to £45.13m

     

    So where is the other £7.43m gone ?

     

    Or was the June 2018 figure incorrect ????

  9. CANAMALAR IT LOOKS LIKE OCD OBSESSION on 13TH FEBRUARY 2019 at 8:00 PM

     

     

    I think you might be wrong here. You wrote “the more profit and money in the bank the higher the dividends”. I’m pretty sure there is a fixed rate of 6 pence in the pound, so the amount of profit doesn’t matter. There is no higher dividends. Ordinary shares have never had a dividend. Preference shares are debt which can be converted to ordinary shares

  10. NORRIEM on 13TH FEBRUARY 2019 at 8:29 PM

     

     

    “So where is the other £7.43m gone”?

     

     

    Driveways don’t heat themselves.?

     

     

    Was the £29.8m the cash net of debt and debt like things?

  11. CANAMALAR IT LOOKS LIKE OCD OBSESSION on 13TH FEBRUARY 2019 8:00 PM

     

     

    Money in the bank does not equal share div, profit in any given year may but shareholders are not getting rich on shares.

     

     

    Think its all about balance and there is ni share in keeping Money away or direcring to

  12. D17 ??

     

     

    T V, we may have had a small debt, being kept on due to fantastic rate through the Co-op bank

     

    It was not £7m

     

     

    Where’s those accountants when you need one ?

  13. macjay1 for Neil Lennon on

    STEPHBHOY on 13TH FEBRUARY 2019 7:42 PM

     

    Will never understand why supporters get so annoyed with celtic having money in the bank. I dont think its unreasonable for celtic to have a plan to proof the future I.e. money in bank.

     

     

    =================================================================================

     

     

    Maybe they have forgotten this :

     

     

    ” Celtic have never found themselves in a deeper hole than the void they occupied during the dark and gloomy days of March 1994. “

  14. £7.43m on the leccy bill for the disco lights and Royalties to ACDC.

     

     

    On John McGinn.

     

    Celtic tried to sign a player. Player goes to an English club for more money. Where’s the story ?

     

    Pretty sure Celtic have tried to sign better players than McGinn, but they ended up going to another club instead . I’ve never seen so many words written about any player who decided not to sign for us – especially one who would have spent most of the season on the bench, if he was lucky enough to get there.

  15. Norriem

     

     

    Part of the difference/shortfall could be transfer debts from current or a previous accounting period.

  16. Norriem.

     

    Sorry for not replying the other night, I fell asleep.

     

    Great news on seeing the Curlews, they are in serious decline.

     

    I’ve started a list with my wee 8 year old on how many different species of birds we will see in 2019. The experts try for 200, I’ve set a target of 60, we are at 37 just now. Curlew not on our list, yet this year, so I will need to head back to yours.

     

    Hail Hail

  17. Big Georges Fan Club - Hail, Hail, Wee Oscar on

    Jeezo – innocent wee bhoy that I am, I’ve rarely, if ever, actually venured on to Follow Follow. Don’t know why I just did, but my goodness, are they not a bigoted lot? For example:

     

     

    “…Now that the spotlight is firmly on the obvious and overt bias towards Separate Entity FC and the entire country is waking up to exactly what the intentions of the …. yes the third Catholic celtc supporter that was given the Compliance officer post…”

     

     

    “…If they can cover the tracks of the largest ‘Abuse Scandal’ in World Sport by destroying the evidence…”

     

     

    “…after 40 years practice they’ve become very proficient at ‘protecting the evil papish entity’…”

     

     

     

    Actually quite scary stuff – swap ‘…Catholic…’ & ‘…papish…’ for ‘…black…’ & ‘…Jewish…’ – or don’t even do that – and perhaps people would appreciate how disgusting the mindset of these people truly is.

     

     

    It is the language of the National Socialists or the KKK – in modern society it is really sad that children can still be brought up with such hatred – what a waste of a life.

     

     

    HH

     

    BGFC

     

    Lova&PeaceCSC

  18. Norriem

     

     

    Profit and money received in a period are rarely the same.

     

    A business in theory could make £100 million in profit but have nothing in the bank as none of the customers have settled their debt.

     

    It’s a timing thing.

     

    Cash is king……just ask sevco…..lol

     

     

    HH

  19. Hot Smoked

     

    Only one paying attention to my figures – top marks ?

     

     

    On a different note

     

    Izzy of Jonhy at left back tomorrow???

     

    That’s an important question

  20. Big Georges Fan Club - Hail, Hail, Wee Oscar on

    Hi WITS – he says ‘Hello’ back.

     

     

    If you, or any of the bhoys are in Glasgow on Saturday ahead of the next day’s game at Kilmarnock then me, Wee BGFC, Miss BGFC and the boys from our wee band are meeting up in Grace’s in Candleriggs around 12:30.

     

     

    We’ll be doing a wee informal sing-song session – guitar (Big Ian), fiddle (Seamus), accordions (Wee BGFC and his pal), bodhran (Cuz), whistle (Miss BGFC) and a bang average singer (me). Irish folk / Dubliners / Pugues – type stuff.

     

     

    Not a fully-plugged gig – just sitting in the corner having a natter and playing some good tunes. Any CQN folks about, come and say hello.

     

     

    HH

     

    BGFC

  21. Hello again all you young rebels.

     

     

    Good morning or good evening depending on which part of

     

    this big Celtic world you all reside in, and to BIGYINMILAN who

     

    i think is presently on the longhaul to the rebel peninsula.

     

    Safe journey BIGYIN and hope to see you Sunday.

     

    Been watching CTV and that bhoy Armstrong-Oko-flex certainly

     

    knows the way to goal, and wee Jack Aitcheson is still bangin

     

    them in, and with Ewen Henderson adding more quality to our

     

    young team, well the future’s bright and definately not

     

    Sevco lite.

     

    O.K coat and hat on.

     

    H.H Mick

  22. BOURNESOUPRECIPE on 13TH FEBRUARY 2019 9:29 PM

     

    Hibs have appointed Paul Heckingbottom as their new head coach

     

     

    ——-

     

     

    Barnsley and Leeds United have sent condolences.

  23. Big Georges Fan Club - Hail, Hail, Wee Oscar on

    Just looked at that Heckingbottom’s record as a manger – why on Earth have Hibs appointed him?

     

     

    Not pre-judging him – he might be fabby – I just wonder what criteria they use to select the manager – it can’t be a previous successful record.

  24. A FORMER Rangers chief has told club chairman Dave King ‘I want out’ as he and his brother agreed to sell their stakes in the club for £1.3 million.

     

     

    Sandy Easdale, the former football board chairman, his brother James and other family members have said they want to sell their 6,450,000 shares in Mr King’s court-ordered offer to buy out the majority of club shareholders for 20p a share.

     

    ———————

     

    Ole Glibby will be well happy .

  25. Back to Basics - Glass Half Full on

    Evening all.

     

     

    “There has been a transformational change in the robustness of the Celtic business model in that period”

     

     

    Fair assessment Paul.

     

     

    Those running OUR club are doing a very good job.

     

     

    That said, it should never be forgotten that the continuing support of the huge fan base underpins the business model.

     

     

    Us.

     

     

    Personally I’d like the board (whose strategic acumen I greatly admire) to deploy more personality and less clinical detachment when dealing with issues that stir the hearts of our supporters.

     

     

    It would strengthen a bond more valuable than money.

     

     

    Hail hail

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