One of the surprising elements when we compare Celtic and Newco’s accounts is that the former have a higher wage bill: Celtic, £60m; Newco, £64m, despite Celtic having a bonus liability for winning all three trophies. The variance is even more stark than it looks. Celtic’s wage figure includes 130 retail staff, Newco’s retail operation is outsourced, pay to staff in their shops is not included in that £54m.
One area I prefer the Newco accounts to Celtic’s is that they show fixed costs. This appears as ‘Other operating charges’ in their accounts, Celtic do not offer as clear a figure. The Newco figure is £28m, consistent with the previous season and up from £23m in the last full season before Covid. Celtic’s fixed costs will be much the same (we have comparable electricity, stewarding, rates, insurance and other non-football costs).
Those fixed costs left Newco with an additional £55m for football operations. Assuming Celtic’s fixed costs are the same, their money available for football operations for the year was £92m. Let’s park this for a moment, until we look at the current season.
Celtic’s profit was assisted by exceptional items. £13.5m came from Covid insurance and compensation for Ange Postecoglou’s departure. Neither is likely to happen again. Despite selling Jota, Juranovic and Giakoumakis, our profit (sale minus kick-back to previous club and minus current asset value) was only £14.4m.
If we develop another Kieran Tierney and sell him for £24m, all of that money goes to the bottom line, but buying players in creates a completely different financial model. The latter is more likely going forward than the former. I doubt we will repeat anything like the sales of Jota et al this season, or for a while.
A couple of points on insurance and player trading figures noted above. Notes to Celtic accounts indicate insurance and compensation for a manager “do not meet the definition of revenue under IFRS 15”. Player sales also do not meet this definition. So although these payments significantly benefited profit and the cash position, they are not included in our £120m turnover figure. We have fewer cup games this season and one less trophy prize money, but income should be in much the same space.
Newco’s income will be down this season, I estimate to £70m. Subtract £28m fixed costs and they are looking at £42m available for football operations, before player sales income (but who can they sell?). It is not just that our income is 45% higher than Newco’s, which is significant enough in itself, the money available for football operations, by my estimate, is 215% higher.
You could say, “For every fiver they spend, we’ll spend £10.70”, but in reality, we’ll spend £10.70 and they’ll spend much more than this, until the day they don’t.
You see what is at play in Glasgow right now? Newco are in a horrible position if they are serious about trying to move Celtic off the podium. The new chairman John Bennet made disparaging remarks in his statement about the regime he took over, “Having spent recent months getting closer to the daily operations of the club, it is clear to me that there is widespread scope for improvement.”
“Widespread scope for improvement” is a clear dig at outgoing execs, Stewart Robertson and Andrew Dickson; Douglas Park may also have flinched on reading that one. But Bennet still banged the drum for good times to come.
There are two other things I would like to talk to you about: the new Uefa Financial Sustainability regs (which Celtic played a big role in designing) and our own bank balance, we’ll pick up on both later.
I started writing about Rangers’ finances here eight years before they went out of business. The direction of travel was clear and an outcome similar to what happened, inevitable. The only thing I didn’t know was how soon, or by what method, the walls would crumble.
This story has a few (?) seasons left to run, but the path is clear.
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SFTB
Chairbhoy
On what was the better choice in 2012: The way I saw things develop was that a price to be paid for RFC remaining in the top flight was titles had to be surrendered and Charles Green would have presented that as the honourable thing to the Rangers C support (even though he is a rogue ) to sell a deal.
However when supporters at large stepped in to put a stop to that and SFL3 was the only show in town the only way sole buyer CG could get the Rangers support on Board was to make it title retention or no deal (he was the only buyer in town).
There is a mention in Doncaster’s email to SPL clubs on 28th July with 5WA attached of a need for haste to agree within 24 hours in order to get what became the LNS Commission rolling .
Thus Celtic in accepting the 5WA could argue that the LNS Commission was the instrument for stripping titles freeing them to accept the 5WA. There was a side letter to Sevco as I recall that Sevco could not be sanctioned as a result of LNS ,which made sense to me on seeing it since Sevco had not used the ebts that LNS was investigating for breach of player registration rules.
Like the Spanish Inquisition no one bar the lawyers and official responsible for the 5WA Terms of Reference could have expected LNS flawed Decision, enable by withholding the use of unlawful DOS ebts with side letters, which LNS treated as continuous as the then lawful (until SC ruling in 2017) BTC ebts.
Evidence of dishonesty to HMRC in respect of those DOS side letters in 2005 was also not provided to him which makes his Decsion statement ” no question of dishonesty , corporate or individual ” risible but never challenged when the evidence turned up.
That is my memory of events (apart from Celtic Director Eric Reilly making himself scarce when SPL Board met to decide whether or not to accept the LNS Decision which they did in spite of doubts.
Two things from the foregoing:
1. We do not know who was involved in setting up LNS ToRs around registration breaches ,but SFA who stepped aside to let SPL lead on LNS, had a rule about clubs having to act in the utmost good faith to fellow clubs which was the real issue . There’s yer fix point, passing the buck to SPL CEO Neil Doncaster and SPL Lawyer Rod McKenzie, both of whom had from October 2011 to think about a plan after a meeting with the Rangers CEO setting out Ranger’s financial plight.
2. The supporters who prevented title stripping by scuppering the SPL entry for titles offer would not have expected that the titles were still up for grabs and that whatever shape an investigation took place title removal was a given.
If we all kent then wit we ken noo eh?
Hope that helps folks.
Auldheid
Thanks P – it helps a great deal.
I can sympathise with the anger of the fans determined not to have them in the Scottish Premier League after the cheating had come to light. I don’t blame them.
I merely regret that we let them out of our jurisdiction. I cannot say for sure that the title issues would have been successfully resolved if they stayed in the SPL, given the forces arraying and aligning to help them, but I know that going the way we did has not given us the outcome that Justice demanded.
And, via COPFS, we are still paying for that today
Ok aff oot but before I go just a wee reminder that this is the feast day of St Margaret Queen of Scotland…who was actually Hungarian
Hi Kev/Not Kev
I see Joe McHugh has more tolerance for the racist postings of yon guy with the initials MB.
D’ye know him – Kev/Not Kev?
Kevin the angry had stoaped gaun tae fitba long before 2012
All that anger and self loathing ya banger
Boring as 49⁴⁹,thats how many times we have heard it.only bettered in bore terms by yir moniker changes.the personification of an angry digital bowel bag
Is yir moats no on the night?
anger anger
AT Above and beyond mate. Look forward to reading the book.
MM et al interesting tales.
Club was named after the town in Donegal from which Joe’s family came.
Glenties also mentioned in the lyrics to Johnson’s Motor Car.
The club became the James Stokes VC in the early 70s after Celtic asked supporters clubs to change names that could be associated with Ireland as the troubles intensified.
Was renamed after James Sokes VC., a First World War hero from the Gorbals.
The bus continued to leave from Benny’s until around 73/74 when Benny’s was demolished. Now the site of the Court Building.
Joe featured in the 1988 Celtic centenary video.
SETTING FREE THE BEARS FOR RES. 12 & OSCAR KNOX on 16TH NOVEMBER 2023 11:13 PM
Auldheid
Thanks P – it helps a great deal.
but I know that going the way we did has not given us the outcome that Justice demanded.
And, via COPFS, we are still paying for that today
=============
Absolutely and in more than financial terms with total loss of trust in governance at Hampden and Celtic Park, which has been a cause of ongoing deep division since 2012.
Lies cannot be buried, they keep rising from the dead and only the truth – we all know the rest.
GENE
Celtic beat Man U 4-1 in 1966 pre-season friendly, not 4-0.
I was on a family holiday in Whitley Bay and we didn’t know the result until my dad returned from the newsagent early Sunday morning and told us. I thought he was winding us up.
Good morning all Tims across the globe from a dark, damp underfoot but dry at the moment Garngad.
Thank goodness its Friday.
Yall have a lovely day.
D :)
Good morning all from Govanhill. You can never have enough good times.
BELMONTBRIAN on 16TH NOVEMBER 2023 7:41 PM
BIG JIMMY
Well done on you bets.
re next meet up, either day suits me at the moment.
……………….
Okay Brian Bhoy,
Lets make it FRIDAY 1st DECEMBER in The SHIPBANK Pub for the CQN Beer Frenzy.
I dont wish to make the Meet Up too close to Christmas as, many Family Bhoys like yourself MAY be Busy with Christmas approaching ?
I would hope that the ” USUAL” Shipwreck Crew can make it on Friday 1st December, and maybe some ” NEW” Bhoys will also appear ?
I hope that ANYONE who plans to make it along, can let me know on here ASAP, so that I can advise ” FRANKIE” the Owner of the Shipbank of our plans ?
HH Bhoys and Ghirls.
BIGRAILROADBLUES and DAVID66….
I expect You TWO Bhoys will make it on December 1st in The Shipbank ?
CHUMPS are NOT WELCOME.
HH Bhoys.
TOM MCLAUGHLIN
As soon as I posted it I realised it was 4-1
We were magnificent that day – was in the Jungle – wonder if Kev was there.
Big Jimmy 7.24
I’ll be there if I’m allowed out.
BIGRAILROADBLUES on 17TH NOVEMBER 2023 7:55 AM
Big Jimmy 7.24
I’ll be there if I’m allowed out.
………………
Good Man !
HH Mate.
GENE on 17TH NOVEMBER 2023 7:44 AM
……………
I can remember being in the Jungle the day that Celtic GUBBED Man Utd 4 – 1.
I was 10 years old ( almost 11 ).
HH Mate.
The great late Hamish Imlach
And the Cumbie Boys are Roman Catholic
Tae Chapel they’ve been wance or twice
But Parkheid is their new Jerusalem
And Jock Stein their latter-day Christ
https://www.youtube.com/watch?v=o8d2HWftSQY
I am another who was in the Jungle the day we hammered Man U 4-1. Lovely summer’s day, if memory serves me.
Add me to the attendees that day in ’66. Great to see Best, Charlton, Law and (captain for the day) Paddy Crerand getting skelped. 3 – 0 early doors.
Ave Ave
Naw it wisnae. 3 -1 early doors! The bassas scored in their first attack. Memory, memory??? But I was only 15 at the time.
Also one of the crowd that day. Although, like many, i didn’t pay any admission money.
GARYGILLESPIESHAMSTRING
I was 16 so too big for ‘gies a lift mister’
Gene😂
I wasn’t long turned 8 and not much of me so I was an easy “lift”.
Unfortunately , not a chance of being lifted now as a result of too much beer and not enough exercise.
The new turnstyles at the north stand are a challenge to get through now.
GGH
I’m more likely to get lifted by the polis. 😂
GGH,
You’re right about the turnstiles. I was told it was to try and stop 2 going through at the one time. I can hardly get through myself now….
new article posted.