Celtic’s £50m income advantage and overinvestment

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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.

SevilleAD

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  1. Can … @ 2.13

     

     

    You are Dermot Murnaghan and I claim my one year’s subscription to Old Monkey Glands KY TV.

  2. Celtic Minded ran a story last week that the huns are paying off loans with ST money, a la Craigy bhoy, is this not illegal? Not that it would matter much…

  3. Canamalar it looks like OCD obsession on

    Surprise the clumpany has not picked up on parkheadcumsalfords observation.

     

    Wonder if he will investigate this on Twitter

  4. If King gets his Level 5 Lapdogs to throw Warbiola under the bus, he will walk IMO, doesn’t look the type to take the hit for the collective shambles.

  5. VFR @ 2.33

     

     

    They out sung the GB for large parts of the first half.

     

    There was a more local response by those sitting next to the away support.

     

     

    However the GB was very out of tune and took a long while to respond.

  6. TE

     

     

    How hot is it up your way? I’m melting on the Costa.

     

     

    On money laundering: a couple of years ago I kept a spreadsheet based on actual costs published and favourable assumptions up to date. I even had Bluenoses asking for copies because of underlying approach.

     

     

     

    It looked like after 6 months they would run out of money but never did.

     

     

    I eventually gave up because the only conclusion I could reach was that they had an unknown income stream

  7. I like to pose questions about our famous club ,some from memory and some from other sources.Its a bit of fun and no doubt bring some memories back.Jocks first and last signing were both Irish.Who they?

  8. saltires en sevilla on

    Wages must be paid on time according to the rules ( aye ah know…)

     

     

    £12m wage bill, for playing staff only? End of each month!

     

     

    Expect they will be on a short leash with HMRC, and all Income tax and EE & ER NIC falling due at the 19th of month?

     

     

    Council Tax and Utilities on a short leash too.

     

     

    Limited revenue options in League Cup and Scottish Cup ( shared after costs)

     

     

    Police & security and match day medical plus stewards.

     

     

    Level 5 invoices.

     

     

    Facepainter and dilapidations ( around same amount each month)

     

     

    Then the. 6 fugure sum each month to rent poundland and murray park.

     

     

    Insurances paid monthly ( they wouldn’t …would they?)

     

     

    Director’s travel expenses and 100 wee misc. invoices for key for lockers and sandwiches and coffees at meetings etc.,

     

     

    That big box of club ties must be getting empty and then the cost of new elbow patches for blazers and brown brogues/cobblers?

     

     

    It all mounts up

     

     

    Even if no-one wants paid back

     

     

    The taps get turned off

     

     

     

    and it’s,

     

     

    goodnight from him…

  9. Huns now known as Oompa luumpas.

     

    New word to describe someone with orange coloured skin.

     

    OxfordenglishCSC

  10. Auld … @ 2.48

     

     

    When it comes to money laundering I think you have got the flow the long way round.

     

     

    I think “persons unknown” are trying to get money out the club not put it in.

     

     

    Paying well over the odds for second raters and never wizzers would seem a strange tactic for a club trying to make the most of its meagre resources.

     

     

    It will be interesting if any contracts get mutually consented just in time for the US / Chinese / UAE football season? Just where would all the money go?

  11. MM

     

    so if the GB were being outsung by rival fans could you tell us what you and the rest of the stadium were doing about it.

  12. MADMITCH on 12TH SEPTEMBER 2016 2:54 PM

     

     

    I think though it’s an act of desperation. By the looks of things they’re copying Craig Whyte and it’s all based on Euro income they hope to access this year. I’m not sure that’s likely now.

     

     

    In moments of tin-foil-hattery, I do occasionally wonder if they supposed to win the SC last season.

     

     

    If they finish anywhere below 3rd they won’t sell enough STs to see Christmas next year.

  13. thomthethim for Oscar OK on

    No matter how much the combined media talk Sevco up, the actual situation at Ibrox is surely widely known within the game.

     

     

    We know how hard it had been for us to sign good players, due to the status of the SPFL.

     

    Due to BR’s reputation, we are now attracting quality players, young and not so young, who see Celtic as a good career move; e.g. Dembele and Sinclair.

     

     

    The only type of player who would go to Ibrox are over the hill veterans, looking for a last pay day, can’t say cheque, ‘cos they are traceable.

     

     

    Another type are mediocre second and third level English based guys, who have no career projections.

     

     

    I agree with the poster who suggests that if Police Scotland got their act together, they would see where the funds are coming from.

     

     

    However , I believe that it would take another visit from the City of London boys to come a-calling.

  14. glendalystonsils on

    FRIESDORFER on 12TH SEPTEMBER 2016 2:18 PM

     

    BlantyreKev

     

     

     

    Doughball?

     

     

     

    Burstball?

  15. With regards to the foe-malign’s money melancholy,why don’t they use the casino profits?

     

     

    FRUITMACHINESMERLIKEcsc

  16. GlassTwoThirdsFull on

    BlantyreKev 1:51

     

    Instead the bravado of ‘going for 55′ has taken over, the signings are the opposite of moneyball, whatever you call that (any suggestions?).

     

    The question has to be why did they do that?

     

    ———-

     

    I can only assume it was a reaction to the feel-good factor at Celtic with Brendan’s appointment.

     

    The fans are their main income source. The fans won’t accept second best (let alone third or fourth!). They couldn’t risk a drop-off in ST sales. Hence the 55 guff.

     

    Only that lot could be so gullible as to think they could win the league. 15 months after losing 6-1 to a Motherwell side who had finished 56 points behind Celtic? Pure fantasy!

  17. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    BHOYJOEBELFAST

     

     

    Pub quiz question!

     

     

    I think they were both goalies,Pat Bonnar and Jack Kennedy?

  18. Canamalar it looks like OCD obsession on

    Mad Mitch,

     

    The green brigade is actually a very small number of people the fact you don’t know that is no a surprise but tha fact that you expect a very small number to out sing everyone who turns up at Celtic Park every time, then blame them when because you are ignorant of that fact is quite typical of those who don’t like the green brigade.

     

    Now how many times did you start up a song while you were listening to that paper rustling ?

     

    You tell us you’re a Celtic supporter and the green brigades lack of vocal superiority on the occasions you raise appear to irk you for some reason, as if it their responsibility to out sing every other support that come to Celtic Park, I don’t remember the green brigade ever making such a promise maybe you can provide me with a link to that. Nor do they claim to want to replace any others that want to sing. They go to Celtic Park and do their own thing and have a good time and that’s what appears to irk you the most, so much in fact it’s their fault that people like you manage to blame them for the lack of singing from elsewhere in the stadium.

     

    Aye brilliant idea, open another standing area and create another singing area, the board already tried to form a competing singing section in a failed plan to ostracise the green brigade.

     

    Why not just open another standing section and let nature take its course, singing will happen but not because they want to compete with the green brigade it will be because they want to sing, oh and entertain those in the free pie seats and hope they can’t hear the opposition support singing because their happiness is all important. How could we possibly do without a corporate seats and the snobs that populate them.

  19. West End of East End on

    I enjoyed the big match up on Saturday, I didn’t think Kell Brook would do as well against GGG but in the end moving up 2 divisions proved to be to much of a gulf in class, lesson to be learned there…

     

     

    Also enjoyed the 3 points earlier in the day…

  20. Dear All,

     

     

    In relation to the vandalism at Celtic Park on Saturday I would ask you all to be a little understanding. It must stick in the throat to be in a 21 century stadium when you are forced to watch football in a crumbling Victorian wreck.

     

     

    From what I can see online the one source of comfort they are taking from this embarrassing debacle is that they are hoping that our good folk won’t be able to control themselves over at their place and they will have a tit for tat media battle for who’s fans are the most moronic. That however is not in question.

     

     

    So what I think is, we should renovate the Ibrox bathrooms. Yes that’s right. Give these poor people a break. When we visit we should bring some new toilet roll holders, maybe a vase with flowers and certainly a lick of paint. I’m sure there are plenty of tradesmen among us. So what do you say, a 15 minute renovation project to lift some of the most disadvantaged in our society out of the stinking mess they have to endure.

     

     

    Yours truly,

     

     

    Hoopyheaven

  21. Canamalar it looks like OCD obsession on

    Oh and mad Mitch, it’s what ever I decide I want to bring to it, it’s no your rules so if I want to add follow up questions that’s what I’ll do and you can bleat all you want there’s nothing you can do about it, ain’t that right

  22. Can .. @ 3.11

     

     

    The people involved with the GB either as members or participants do not do their own thing.

     

     

    They follow instruction in a very rigid and hierarchical social structure that is pre-planned by a central “ultra” core. It is very uber fan and does not engage with the rest of the support in an organic or constructive manner.

     

     

    Very much them and us — see “pyro” for examples ad naseum.

  23. Canamalar it looks like OCD obsession on

    Mad itch

     

    You’ll have evidence of that accusation and able to provide links to justify it, yes ?

  24. One of the side effects of the singing area is that everyone else in the stadium is content to leave the singing to them. Still better than the alternative. I’m sure the club will be looking to increase the amount of standing available. At the minimum they should be looking at the other corner of the North Stand. I’d like to see the entire Celtic end, or at least the bottom tier, turned into safe standing.

     

     

    On the effigies, they are at best in poor taste, at worst disgusting. The banner saying hun scum know your place also reflects badly. I’m not even sure what that is meant to mean but it is irksome when we sink to their level. Of course the hypocrisy of Rangers 2012’s outrage didn’t take long to be debunked.

     

     

    https://twitter.com/JustABhoy/status/775310398669090816

  25. Bmcuw Correct john left Celtic park alongside frank mcCarron and john happiness.when Kennedy left who was Ronnie simpson’s understudy in season 66/67?

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