Celtic’s £50m income advantage and overinvestment


I’ve seen a bit of chat on where Dave King’s promised overinvestment is, since Celtic humbled his team on Saturday. Let’s be clear, Newco are overinvesting.

Senderos, Barton, Hill, Kranjcar are all earning over £750k, Barton significantly so. They signed a further seven during the transfer window. Running costs are eye-wateringly high for a club without significant income streams from Europe, television or merchandising.

The £30m PR bluster, which the new board used while trying to unseat the Easdales, can now be seen for what it was, but this level of expenditure is pretty much as high as is practically possible without a lunatic Sugar Daddy. In fact, if we were running with similar numbers, I would screaming at you that we need to cut back for fear of insolvency.

Four years ago someone in the game suggested to me the Rangers group of clubs were fatally wounded, despite selling over 30,000 season tickets for the Third Division. The reasoning being that the brand depends on an air of success, and would crumble under sustained, unrelenting, mediocrity.

I’ve been saying for four years, most people haven’t began to realise the far reaching consequence of what happened in 2012. “Getting back” (sic.) isn’t about reaching top flight football, it’s about having the budget to be able to compete with Celtic, who could turnover around £50m more than Newco this season.

Where do you even begin to tackle a problem like that?

No Sugar Daddy will make the multi-season investment required. Insolvency remains a real danger for any club running a deficit in double-digit percentages of its turnover, without robust borrowing in place (or a genuine billionaire acting as backstop, if required).

The non-football costs of running a club at Ibrox and Murray Park (an albatross) are significant and comparable to costs at Celtic Park and Lennoxtown. This leaves income available for football comparable with Hearts, Aberdeen Hibs and Dundee United.

The real conundrum is, do you accept your place and live within your means, or risk insolvency trying to catch Celtic? I don’t think either scenario is a viable option. You can make your own mind up about the viability of the football club.

I’ve not mentioned the toilets on Saturday, which is no more than you expect, but I did expect better than the dummies (which have been shamefully exploited to represent something they were not). Could the Seville experience happen now? Nope. This should concern us all.



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  1. HAIL! HAIL! OlddTim!



    The Huns have been humped and humbled (? Them Humbled? that will be a first!) now bring on the Barca!!






  2. TURKEYBHOY on 12TH SEPTEMBER 2016 12:27 PM


    Had to laugh at the bitterness of some sad,hurtingbealing,hun hack today.



    Cast his net far and wide,and managed to drag up,some skinhead right wing Fascist,that dragged himself around Mordor for a short spell,now “Starring”in some tinpot league in Outer Sub-Transgolia,to let us know he hopes Barca beat Celtic on Tuesday,and that he does not like us.



    This is probably the best example of the term”Hun scum”you could wish for.

  3. The Green Man says SACK THE Board on




    With you on that.


    That wee article is poison.


    No the brightest, or thick as mince would be more accurate.


    Bitter wee Hun numpty.




  4. garygillespieshamstring on

    At the moment, they look like they will be struggling to achieve mediocrity.


    Hope they go bust before they are due back in paradise.

  5. jude2005 is Neil Lennon \o/ on

    PHONE 0800083 4095







  6. Good article Paul. The underlying principle is the difference between good club management and bad. Celtic may well be inhernantly bigger as a club but the PLC do deserve credit for our good health.

  7. Paul, bang on. They are way, way behind and, in the absence of a significant investment (probably twice the stated £30M for running costs and stadium/infrastructure repairs), will have to cut their cloth to that of a mid-table team. This will allow them to begin to build up the finances to improve their squad in 4 or 5 season time.



    By this time we should be well out of sight. The future looks very bleak for them!



    FAC the Act




  8. Ah,I miss the old Jungle.Standing there half pissed with your mates,singing the old Reb songs,your ears being assailed by a wee guy stoating about with a tray in front of him,or sometimes a cardboard box shouting


    “Err yer Spearmint chewin gum,yer Macaroon bars,and yer Blow Up Dolls”


    Great days.

  9. FRANNYB67


    Hoooooopy birthday to your good lhady,and congratulations to both of you on your anniversary.

  10. frannyb67 on 12th September 2016 11:49 am







    Bmcwp 11:22



    Of course she gets two presents the woman a star 0:) HH




    My wife doesn’t get two presents.



    I just give her one and she seems very happy with that! :>)



    FAC the Act




  11. Turkeybhoy,



    That particular piece of “journalism” was hunbelievably pathetic.


    As if we care what some no-mark hun failure thinks??



    Woeful even by that rag’s “standards”






  12. Ernie@12.20


    The assumption was based on the fact that Erin go Brach have members from other clubs who travel with them. Egb have season books dotted around the ground but they are predominantly in the Jock Stein lower. My assumption was that said balloons might have travelled with Egb but maybe not members.


    If it was a cheap shot Ernie I prostate myself before your much superior intellect.



  13. Saturdays result will have far reaching consequences for the dead team. With an audience that will be severely smarting from the horsing they received, the demand for budgets and war chests will rise and Glibby obviously has no way to deliver those Santa lists…



    Between the devil and the deep blue sea they say:)))



    Never mind their spend got them the Petrofac Cup and you can’t take that away from them…well not yet anyway:))

  14. So if they went into admin, would it be admin one or two? Must be two as they’re always saying their the same club.

  15. BABASONICOS71 on 12TH SEPTEMBER 2016 12:36 PM





    It’s like a Wee Free piss up in here the day…



    = = = = = = = = =



    Paddy R,Jamesie F,Calumn Mc or Messi,Neymar,Suarez



    Wit wee 3 yi on aboot?Hopefully the latter,don’t want oor bhoys on eh swally afore a big game. ;))




    Did you enjoy your weekend mhate?Big Mouss looks a proper star in the making and a Celtic legend at 20,naw bad.



    Sinclair’s our most intelligent player,has as much effect off the ball as on it.



    Toure knows what he’s up to on the pitch,it’s a joy watching him during games,strolls it.



    Future’s ours.





  16. traditionalist88 on

    Could the Seville experience happen now? Nope. This should concern us all.








    Can you elaborate on the above?




  17. Paul, great article as usual! The Seville reference! Do you mean you doubt we could reach a Euro Final again? If correct is that view based on the financial climate being miles worse than 2003?

  18. Team for tomorrow……….




















    I had a cracking weekend, watched the game live and then later on in a quieter moment.



    Moussa had a really good game, three goals and an assist albeit against poor opposition. He came with a good reputation and Brendan has an eye for a player and above all game intelligence hence his pursuit of Scott Sinclair who I love more more every passing game.



    Whodathunk it we would start with PR and LG and not miss them.



    My best mate here although not a football guy comes from a Kirkintilloch Loyal family and when he saw me last night he said ” I didn’t think it was possible for you to have an even bigger grin that usual”



    Exciting Times CSCS




    We Free kings Of Orient Are:))

  20. The Green Man says SACK THE Board on

    They are seething with rage because the wonderful Celtic support are held in such high regard.


    The sevconians know they are despicable….no one likes them, they dont care.


    They do not have the morality to be decent supporters, and the fact they are collectively aware of that fact, must be a boot in the b***.


    It cannot be nice to be hated with a passion, no matter what you do.


    The bitterness is laughable, comic strip.


    I can only hope they persevere with their fantasy of superiority, the consequence will be endless years of pain, and hilarity for the good guys.


    They are truly and utterly fecked.


    That is an invigorating tonic of well-being to Celts all over the world.


    I hope their pain lasts a long, long time:)




  21. TRADITIONALIST88 on 12TH SEPTEMBER 2016 12:43 PM


    Could the Seville experience happen now? Nope. This should concern us all.











    Can you elaborate on the above?








    Can’t speak for Paul but I think he means impeccable fan behaviour.



    Saw a link to that online.


    Bitterness and hate,an unattractive duo and not anywhere near being ‘news.’


    Wee minded wee hun he is.Desperate.

  23. For one horrible, hurtin’ moment imagine yer a hun…………….



    It’s beginning to sink in fur thum…………



    Humped ‘n’ pumped


    off the park and on it.



    They’ve a management ooot thur depth


    and “financiers”…..*cough*………… somewhere (deep) south of credibility, with bunker bravado and promises somewhere north of Neverland…………..



    When the other teams start rollin’ over thum the wheels will quickly come off the bandwagon.



    Hun ugly, blue on blue activity………………………………




  24. Since 2012 the Huns have racked up yearly losses,at present,around 30 million quid,being kind.Who is this money owed to.Just how have these losses been sustained?


    JJ site is forever going on about nefarious practises regarding money laundering taking place.Dont know the absolute truth about that,but just where are they getting the money from?


    We know the costs of running a club their sze with their overheads,and according to what I have read,their ST money,their payment from 32 Red,amounts to 9 million ,after tax.That will probably be around half what they require this season.They are not listed,their accounts,what we see,are not signed off.o one knows how they are running this business.


    Their next couple of 6 monthly accounts should really make interesting reading.They are going to be around 40 million in debt,with no income source to speak of,yet no one seems to care in the echelons of power.


    It cant end well.

  25. traditionalist88 on

    thetimreaper on 12th September 2016 12:48 pm



    If so, I think we are going overboard somewhat. If we went to Seville en masse again what is the worst that would realistically happen? A bit of pyro probably.



    Ok, we can do without it but cause for concern?




  26. BARNEY, expect liquidation 2 but will be allowed not to be their ‘football club’ side. Another SEVCO will be set up, allowed to join the Scottish football league ahead of more deserving clubs, then allowed to call themselves Rangers and allowed to keep the history of the previous two dead clubs. MSM will then continue with ‘same club’ pish.

  27. THETIMREAPER on 12TH SEPTEMBER 2016 12:48 PM



    ‘Can’t speak for Paul but I think he means impeccable fan behaviour.’







    That seems like a reasonable interpretation of a rather cryptic remark.



    But the point about that year was that for the first time in a generation we had raised our sights above The Old Firm swamp and the season’s focus was on European rather than domestic matters.



    The sad thing is that so many were only too happy to slide back down into the swamp.



    Hence all the excitement about The Old Firm game at the weekend.

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