You and I have been discussing football finances here since 2004. In our early years Celtic lost several million pounds each year, CQN’s call was ‘we must breakeven over any business cycle’, an incredibly controversial view in those times of indulgent bling.
By 2004 Celtic hadn’t added a player who held down a sustained first team place for three years (since John Hartson in 2001). We also lost a talisman that summer. The pressure was on to spend, from the stands and the dug-out, but Brian Quinn, our chairman, had concerns about running at a permanent loss. In the face of considerable criticism from the bling-brigade he stood firm.
Celtic won three of the next four league titles while reaching new territory in the Champions League as others continued to spent beyond their means and exploit unconventional taxation policies, which ultimately saw them liquidated, but while the end game was predictable, most didn’t predict it. This resulted in strife at our club.
Finance was a focus of CQN in the early years when we produced granular analysis of accounts and budgetary forecasting. As we became less of a basket-case the time spent debating money reduced.
We can all talk about strikers and defending, policing and political influences, good corporate governance and the SFA, but if you scratch below the surface of those with many years of CQN behind them, I suspect you’ll find people who can’t resist a football club’s cost and revenue breakdown spreadsheet….
The document which appeared on the internet yesterday on a former football club [let’s call them ExCo] was a joy. To me, anyway. It provided many small details which add up to one or two enormous conclusions.
ExCo forecast current year spend for 2011-12 on cleaning costs to be £380k, electricity at £455k, insurance at £374k, postage and carriage at £146k, IT at £261k, professional fees at £613k and telephone costs at £149k. Stewarding was £593k, policing, £343k, match day ambulance, £89k. They spent £160k on finance salaries and £176 on press office salaries while ticket operation salaries cost £268k. The list is exhaustive, 10 pages of costs detailed.
Operating costs, before items like our old friend, amortisation, and tax (don’t laugh), were predicted to come in just shy of £37m, but the key message in all of this detail, is that if you want to operate a football club which can accommodate circa 40,000 spectators you need an infrastructure which costs around £20m.
The police, building maintenance, insurances, grass seed and everything else has to be budgeted for before you can look at player wages, not to mention transfer fees. £268k might sound like a lot to pay for ticket office staff but if you need to issue tens of thousands of tickets you need fulfilment staff. All those assets: enormous properties, thousands of fans, blanket media attention, can feel like liabilities to the guy with the responsibility to pay for them.
On reading this the overwhelming memory I had was of former Rangers director, Paul Murray, who a year ago told the world that Newco Rangers would not be viable, and he was hoping a Newco would have SPL football back then. New clubs cannot qualify in European competition until after they have completed three years trading (a minimum of four years without Europe).
With no European revenue for four years, Newco would be unable to pay all those ‘fixed’ costs and put a competitive team on the field. A big club can’t survive trapped in a small league with no European revenue.
This is reality. Scotland has one healthy large club and has a dozen or more potentially healthy small ones, but nothing will ever be the same again.
Thanks to everyone who has bought Willie Wallace autobiography. Orders in from Belfast, Blackpool, Bonnybridge, Burntisland and Blackrock. If you order now you will receive a copy signed by the man himself….
Email me if you have an article for CQN Magazine inside of you waiting to get out; celticquicknews@gmail.com.
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67Heaven … I am Neil Lennon..!!.. Ibrox belongs to the creditors
O.G.R
on the money again 110%
Good night & God bless
zimmerman, 23:36
The bad news for Leggat and Graham is that all the documents are real.
The even worse news for them is that there is more to come.
Tick.
Tock.
O.G – well played
Left click. You are the reason I never joined twitter. If you don’t post it, it’s not worth looking at.
It’s now beyond parody at he Huns. Hell feckin mend them.
http://www.scribd.com/doc/142111149/data-room-access
Just need Minty exposed for a full house :)
well bhoys and ghirls
we all told the zombies it was a scam from start to finish
duff and duffer …….doing their best for the creditors…….lol
green and whyte …..still running the club ……eh ……..i mean company
never mind the smsm may pick the story up once a few are getting porridge
for breakfast every morning
they have helped the conmen execute their plan
3 cheers for the smsm
hip hip hooray
hip hip hooray
hip hip hooray
sweet dreams bhoys and ghirls
jam67
squire danaher
23:10 on 17 May, 2013
Thomthetim 23:05
Hear hear
&&&&&&
But if you go to the trouble of baking a jumper in a cake……!
Thomthethim
My points have absolutely nothing to do with the board.
I just happen to have strong beliefs that Celtic players should be making the effort to attend maybe a dozen functions over the course of a season. I don’t think that’s too much to ask.
Ps I won the quiz.
O.G.Rafferty
Great to see it all unravelling for The Mighty Glasgow Rioters.
Your trailers of bad news for them I heartily appreciate.
And I didn’t like the stick you took recently when AT’s piece hit a roadblock.
Hey but what the hell, these is good times.
Let Charlotte Flourish.
O.G
same as Stringer Bell
well worth the wait. but will it shut the big HOOSE doon !!!!!!!1
Tic. Tic
More from Mordor,,
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It’s in the SFA rules that a club cannot be held responsible if it is the victim of criminal actions, which is clearly the case here.
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(Our fate will be determined on the actions of these spivs though.
That is the sickener)
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No they won’t. Stop trying to push us into the Whytes involved equals no licence box.
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Exactly where does this leave us ? Was the share issue legal? Is this a good thing for the club? more questions than answers.
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(How on earth can anybody get ahold of this sort of documentation?)
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Craig Whyte is giving it to them.
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Does that not indicate what we thought that all of them, including the Bank, are in this up to their necks ?
Presumably these are also in the hands of the Police investigators ?
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This reads like a map of our 18 month nightmare
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Surely it has been clear as day they have been up to their necks in it from the beginning? Whyte fought tooth and nail to get them in place. It was the last thing he done before f*cking off. Maybe he was just looking out for us, right?
“You have blood on your hands” BK told them I believe.
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Paul Clark was allegedly copied on the mails discussing Whytes takeover & Ticketus funding.
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(The project Charlotte document talks about selling the arsenal shares. Planned from before Whytes purchase. Sickening.)
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This is the one that gets me
The wee insignificant (unt selling off part of our history
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People need to ask themselfs why this is getting released via Twitter of all places instead of getting used via a court.
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Anybody know where Whytes father lives out of interest?
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(Even closer to home would be our SFA licence.)
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Wouldn´t that be more the link between CW and CG&Co which doesn´t come into play with latest leak.
Although I take the point that as far as Charlotte is concerned this is where this seems to be leading.
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Is this breaking news? It’s obvious D&P have been in on it since day 1.
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I don’t doubt these are genuine.
It does look like Grier and co were “wilfully blind” as to the nature of the Ticketus deal, but its worth noting one particular passage in Grier’s letter to Whyte of 7th April 2011.
(Quote:
We have had access to limited paperwork and have not seen the draft SPA, as well as having no knowledge of the contractual terms of any potential deal nor have we been Involved in the direct negotiations with the Company. Without a full review of all such documentation we cannot provide an absolute opinion. Even with such access, it may still not be possible to provide complete assurance as to how any subsequently appointed Administrator would act, as by the time of an Administration appointment there could be further factors currently not known at this time.
An Administrator may also find himself in a position whereby a majority of creditors may “force” him to take a certain action or risk the threat of his removal. Further, we regard the issue as to the ownership or assignation to be of a legal nature and so we would suggest that, if there is any concern, counsel’s opinion should be sought as to how to structure the transaction.
Having said that, based on what we have been told, which Is that the Company will contract with a funder who will receive future benefit from the revenue created through the future sale of season tickets, it would seem that a challenge of transaction could be made in the circumstance whereby the transaction was one that:
(a) was a preference (section 239 of the Insolvency Act 1986 (“the Act”))
(b) a transaction at undervalue (section 238 of the Act)
(c) a transaction defrauding creditors (section 423 of the Act)
An Administrator cannot disclaim onerous contracts and therefore the Company would still be
bound by it)
Rather like what can be taken from Grier’s taped comments, it looks like MCR/D&P were aware of the Ticketus deal, but perhaps not expressly aware of the amount of money being advanced.
I don’t doubt that they “knew” (in the sense of strongly suspecting) that Ticketus were being used to fund the purchase, but they probably felt they maintained a sufficient distance to have plausible deniability.
I will be interested to see what is released next regarding Sevco 5088, assuming CF makes good on his/her statement.
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(Anybody know where Whytes father lives out of interest?)
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I’m a few miles away from him. Wouldn’t post online though.
Rangers fan my arse.
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Hate the way these ba****ds call my club ‘Project Charlotte’. An absolute scam & also set up for D&P to plunder millions from the administration. Horrible smug conning bastards from the get go!
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From reading that surely that brings them all down.
D&P, the bank, Murray the lot.
Clearly had administration in mind, who the administrators were going to be, that ticketus were founding the takeover, that the bank were pushing it.
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Is the Charlotte, anything to do with our former owners address?
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Some of this stuff is actually incriminating Whyte as well, which almost puts me off the scent that he is the one doing the leaking.
Again, if this was all 100%, why would they be getting leaked on Twitter instead of going via a court.
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And so it goes on……….Zimmerman.
67Heaven … I am Neil Lennon..!!.. Ibrox belongs to the creditors
23:45 on 17 May, 2013
Hahahahahahahahaha…..hoopy days ahead
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A big HH to that. :-)
Zimmerman
My fav from your hunfest of quotes ……
“Is the Charlotte, anything to do with our former owners address?”
As opposed from the friendly spider from children’s fiction, I guess :-)
Fascinating night, O.G. deserves thanks from all and apologies from some. Just hope that the Bar Stewards are brought down & soon.
Uh Well-a well-a well-a huh
hello cqn..been working my butt off last few days just trying to catch up on the latest sevco clusterf#@k..
o.g . rafferty im looking forward to your deluge of complimentary cyber high fives and champange by the bucketload on what you’ve known and how you’ve kept your dignity and patience with your fellow cqn’rs..someday when the jelly has seased wobbling and the icecreams melted i’d like to buy you a few real bevvys..hail hail
pigalle, 00:00
The important thing is that it got out, even in a crude form.
Now that is happening those who are interested can dissect and expand on what is there.
‘People need to ask themselfs why this is getting released via Twitter of all places instead of getting used via a court’?
Be careful what you ask for
Stringer Bell, one of them did suggest that Charlotte was exactly that, a reference to the web that has been spun….
Interesting that the majority of the Charlotte info has been dumped in the evening – the most toxic on a Friday night – to prevent anyone running to a court for an interdict perhaps?
Its like a ‘scorched earth policy’ – akin to Agent Orange (see Vietnam).
Maybe we’ve finally got our Triumvirate – Green, Whyte and Orange?
OK maybe not – off to my bed. H!H!
Stringer Bell @ 00.04,
Charlotte’s Web indeed,
storyline of the movie,
Wilbur the pig is scared of the end of the season, because he knows that come that time, he will end up on the dinner table. He hatches a plan with Charlotte, a spider that lives in his pen, to ensure that this will never happen. ;)))
Zimmerman
Thanks for that glimpse of the other side.
Even the staunchest mega hun seems to be waking up to the idea that they have all been taken for a ride.
About bloody time.
Summa of Sammi….
23:38 on 17 May, 2013
I love the Rain, although I never really experienced a monsoon, maybe soon.
http://www.youtube.com/watch?v=pNHLobxZsHA
Zimmerman / sparkleghirl.
As long as they don’t start on Stig of the Dump……
He’s been doing well, for a young manager.
OG
Any view on why a twitter release, rather that Scottish Sun?
And the hits just keep coming
The most fervent celtic fan could never have imagined this scenario 2 years ago.
What did McDonald’s say …. im loving it :)
God Bless Ken Venturi a great golfer and US Open Champion in 1964 – Rest in Peace Kenny, glass raised.
slainte
tony
There’s some joined up thinking going on over on the dark side.
What they need to do now is think of some even worse scenarios, so they can make the most of what, in hindsight, will be seen as halcyon days.
Stringer Bell, 00:12
Yes, but I’d never say on here
O.G. Your last post has just ensured I’ll get no bloody sleep to-night.
Always see on here mentions of Franco’s 11, but remember reading a few years back a Spanish journalist explaining that Atletico were actually the original Franco’s team as they were linked with the military. Franco only jumped ship to Real when they started winning things.
Thats the 0.15 one I’m talking about.
tommysbhoy, 00:07
Always happy to take up an offer of a beverage or two
O.G.Rafferty @ 00.15,
agreed although i think the majority may still be banging the drum.
o.g.rafferty
00:16 on 18 May, 2013
Stringer Bell, 00:12
Yes, but I’d never say on here
—–_
Good enough for me, mate.
More power to you.
Was talking to a BBC dude recently, who had been working in this. Much much more in the pot, it seems. Would imagine you are picking up the same vibe.
zimmerman, 00:19
Outside St Patrick’s in Donegall Street?
It matters not, this one is well beyond saving
http://www.youtube.com/watch?v=2VXacYLcjGA
O.G.Rafferty
00:15 on 18 May, 2013
There’s some joined up thinking going on over on the dark side.
What they need to do now is think of some even worse scenarios, so they can make the most of what, in hindsight, will be seen as halcyon days.
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You terrible man, you do know that you are sending hun lurkers to sleep with nightmares in their head.
For the Record, when you lurkin huns wake up, read the Sun and all will be ok again. :)
tarrant will be shaking his head in disbelief about this next linkie….but it has to be done.
http://www.youtube.com/watch?v=IFx3WX4DES0
Wicked leaks
If it sounds too good to be true? It often is.
Caution please.
U