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Financial cost and prep for 2016

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I reckoned Champions League participation was worth circa £22m to Celtic. By contrast, Europa League football will be worth less than a quarter of that. Ancillary income, such as retail and kiosk sales, will also suffer.

The challenge now is to improve the team without that income. This should not be impossible. Malmo managed it, and we’re not in a situation where the bank is hammering at the door. But what should be clear, is that the next five days represent the best chance to strengthen the team for next August’s qualifiers. There’s a notion that the biggest games of our season come early, but we’ve 11 months to plan for 2016’s biggest games.

Three things to remind you about:

Golfers: buy a raffle ticket for £1 to win a round of golf FOR FOUR PEOPLE at the magnificent Aberdour course in Fife. Competition ends on Saturday, get your tickets here!!! It’s offered by Taggsybhoy, in support of the Foundation.

Aberdour

There’s a Mary’s Meals collection from 1pm on the Celtic Way ahead of the game on Saturday. Ideally we’re looking for backpacks, but handtowels (the school kitchens you paid for have handwashing facilities and each child is given their own handtowel), pencils, rulers, etc.

If the kids got new kit for starting school last week, dig out the old stuff and bring it along.

Magners have kindly donated two Premium Seats in the Jock Stein Stand for Saturday’s games. You can win the tickets by answering this question:

Who is Celtic’s top scorer this season?

Player’s surname in the SUBJECT line of your email to celticquicknews@gmail.com . Competition closes at 22:00 TONIGHT, so not a lot of time to enter.

No call today for a donation, go stick a £1 in Taggsy’s raffle instead. Thanks.

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  1. @GO TELL THE SPARTIM

     

     

    “The money spent on financing the debt, CEO remunerations and bonuses and dividends could clearly be put to better use in building a decent first team.”

     

     

    Financing the debt is how we keep our credit line, and show good standing to the AIM. The CEO ‘bonus structure’ is just under half of what a first team player earns a year. Most dividends are not actually taken by supporters, and left in the club – so we do use that money already.

     

     

    “Having a decent first team would perhaps entice more supporters back, increasing match day income, maybe increase merchandising and maybe attract more sponsors”

     

     

    This is a fallacy I’m afraid mate. Having an improved team does not improve the competition we are in weekly, nor the football saturation from tv. We are already one of the top 10 match day earners in SPORTS WORLDWIDE according to SportsIntelligence and Deloitte, so there isn’t really more blood to be gotten form that stone. Having worked with Arsenal recently, I can tell you that they value 1 Diamond Club ticket supporter to 250 season ticket holders in terms of match day income and merchandise over a year. Finally, sponsors don’t care about people in the ground anymore as they cannot track or measure a specific correlation between in-person advertising and sales. With targeted Social Media or TV campaigns, you can. So getting another 5-10,000 people into Parkhead actually makes no difference to those parameters you mentioned (sadly).

     

     

    “…the current policy of hoping we get lucky and qualify for the UCL is actually a pretty pathetic one.”

     

     

    True, but we are a complete anomaly in European Football, so it’s the only show in town.

     

     

     

     

     

     

     

    @LIVIBHOY

     

     

     

    “Film stars are paid a wage that reflects what the film makes. A film is a world wide phenomenon. The core of a football club is the 30k-60k people who walk through the door at home matches.”

     

     

    This is categorically wrong I’m afraid. Football is nothing more than entertainment for an audience. As big an audience as one can find. Back in the day that meant 100,000 people in a stadium. Now it’s 10million people via TV.

     

     

    Football games are a worldwide entertainment phenomenon. Like Film, there are good ones and bad ones, and it’s not always the ones you think. But the one with Tom Cruise/Messi is usually worth your money, with the one with Adam Sandler/Lee Muculloch is usually crap.

     

     

    Football has not been about the “people who walk through the door at home matches” since 1992. The business model changed, and it hasn’t looked back. Until that TV bubble bursts form internet streaming, it isn’t going to change any time soon.

     

     

     

     

     

     

    @KJAM

     

     

    I am frustrated with the board, I know we are a well-run club but our strategy of exclusively only buying young players with resale value is hampering us.

     

     

    “When we look at our wage bill and transfer fees compared with Malmo, Maribor, Legia, etc on paper we should be miles ahead”

     

     

    That’s such a scary statement because it is without context. It suggests that a) we’re all on the same currency b) there are standardised immigration rules c) we all have the same tax rates d) we all have the same cost of living and e) we all have the same standard of living.

     

     

    I lived in Malmo (working for Smeg). It was expensive (taxes) but I would much rather be there for 80% of the same wages to live in Glasgow.

     

     

    We have to stop making unilateral comparisons, without context, when it suits us (against teams in Europe who we arrogantly think we should be better than when we have no divine right), unless we’re also willing to make the same comparison to those in England – given that our transfer budget puts us in par with a League 2 team. Currently our turnover and transfer-budget is the same as Barnsley!!!

     

     

     

    “ but we have over spent and wasted money on ‘projects’ when we could easily bring in a few seasoned pros to complement our younger players.”

     

     

    That sadly a dream.

     

    There are no “seasoned pro’s” that we can afford. It’s not the transfer fee either, which makes for great headlines, it’s the wages. The average wage at celtic is £17k per week – which puts us 181st for average wage in the list of ALL SPORTS TEAMS WORLDWIDE (including NFL, NBA, EPL etc). We’re already paying top dollar, and we’re paying 23 times more than the 2nd biggest average in our league (Aberdeen) and 25 times more than the lowest in our league (ross county). In order to pay a “season pro” we would have to match their wages, bonus structure, image rights etc from our EPL counterparts.

     

     

    Kevin Nolan, released by West Ham today, at 33 years old was on 55k a week (2.86million a year) – from the bloody Championship. To sign him and cover his basic wage, as a seasoned pro, we would need to sell 3 first team players. THAT is why we can’t do it. Because the money paid to even journeymen in the championship is 3-5 times what our wage structure is. To break it for 2 players, is to go the way of the dodo/sevco.

  2. KJam on 27th August 2015 12:04 pm

     

    m6bhoy –

     

     

     

     

     

    Personally, I think it’s a bit unfair to judge on last year’s qualifying.

     

     

    I think chopping and changing manager is counterproductive.

     

     

    Purely from a ST holder point of view, in Lennon’s last season (who I am a fan of) we got three home games in the Champions League but the rest of season…was well torture most of the time. We lacked intensity, huffed and puffed and scrapped our way past SPL teams by the odd goal and were papped out the cups by Aberdeen and Morton. Like it or not, most of the games we watch and go to over the season are in Scottish competitions. This has been more enjoyable and sucessful under Ronny’s reign.

     

     

    ——————————————————————————————————————————- In an earlier post I did say it could be argued that RD deserved to be cut some slack last season particularly the Legia Warsaw defeat. I was less sympathetic re. the Maribor result as we had done the hard work away from home and lost it at CP against a team who were imo, inferior to Legia.

     

     

    This season he asked and got a pre-season that did not include money spinning but disruptive friendlies in far flung places so he could keep the sqaud together to get them better prepared for CL group qualification. Other then one injury, he had a full squad to chose from and got the staring XI badly wrong then compounded this with some bizzare substitutions. Let’s not forget it took him ten minutes to attempt to changes things after we lost the second goal. If you can stand watching the re-run of the match, check him out when the camera pans on the Celtic dug-out. He and his assistant look haunted and clueless which ofcourse they are. I agree it does not always help to chop and change managers but if the one we have at the moment is a dud then you need to change. As a matter of interest, should we have given Tony Mowbray more time?

  3. “Ronny Deila has lost the dressing room”

     

     

    tomorrows Daily Rainjur on CQN today

     

     

    “The dressing room has lost Ronny Deila”

     

     

    tomorrows Super Scum on CQN today

  4. Belfastbhoy0

     

     

    :-)

     

     

    Was just putting something other than ‘first’ down as quick as I could.

  5. Paul 67

     

    What is going on at Lennoxtown, this academy is a financial noose around the clubs neck and I also think it allows the board a fall back excuse of breading or own CL standard players, these are few and far between, in short the whole set up there appears to me a waste of money.

  6. Excellent post, KevinJohn, 1245,

     

     

    Well made ripostes, but suggestions perhaps ? Are you arguing for a status quo ?

  7. Fair enough Paul

     

    But Ronny deila will never deliver

     

    champions league football

     

    he doesn’t have the ability

     

    we have proof

     

    2 campaigns against teams

     

    with resources of Aberdeen

     

    he is inflexible and clueless at this level

     

    Europa league is his level

     

    all he’s done has made it even harder to qualify in the future

     

    our constant rebuilding every season

     

    is awful to see but a better quality manager would cope much better

     

    we need a proven experienced

     

    manager who is the highest paid employee at the club

     

    we need a new manager

     

    And need him now

  8. kevinjohn

     

     

    Disagree. Films are one off projects or small franchises that will make a profit of £100m’s. The film star is paid relative to the success of the film. Usually the more money punted into the film the more success they have as actors (Box Office) the more cash they get. They are a sure fire thing. It’s unlikely an actor would get injured and be no use to the film. An actor can be replaced at no cost. He doesn;t sit on the sidelines making millions whilst his replacement fluffs his lines.

     

    A football team is a way of life, a community club, something passed on from generation to generation, it’s a family tie, you may have one thing in common with your father the football team you support and your mother although moaning about it from time to time is glad for it because it stops you fighting about all manner of other crap.

     

    You can;t relate that to a film. Football is about the fans. The atmosphere in the ground adds to the spectacle. You know why Arsenal didn;t achieve what they should have with their great side of a few years ago? They don;t have a Kop, A Stretford End or a Jungle. You need the fans to play their part. The Emirates is like Wembley. Arsenal are a fine side but the supporters must get behind them spook the opposition and lift them when they need it. Disengage the fans you have a franchise team that people watch instead of doing something else. There is no heart, soul or passion.

     

    The game needs reeled in. Football is the beautiful game and the sport of the people. If one of our players was earning in excess of £1m a month I would be disgusted.

     

     

    LB

  9. Changes in tactics away from home in Europe and more mature game management is needed more than new players. Malmo, man for man do not have better players than us. The 4-2-3-1 in its current style has failed away from home continuously. It needs to become more 4-5-1 with the 3 attackers taking more defensive starting positions.

     

     

    I can’t wait for Saturday. It’s a great time to send a message.

  10. KevinJohn

     

     

    Thanks for succinctly outlining the financial plight our club is in. Will all the knuckledragging board bashers now please give it a rest, face reality and support our team. Of course it’s legitimate to criticise team selections, tactics and signings but to imagine that we should be competing at the top table is as delusional as another Glasgow team’s fans thinking they can compete with us.

     

    It’s probably time to seriously consider summer football and a league reorganisation along with a more imaginative look at use of internet media to broadcast matches.

  11. If Celtic identify players in our league who will:

     

    A – Hurt us

     

    B – Be better than we have

     

    C – provide good value for money – At this level (I hate that phrase)

     

     

     

    Then why are we not adopting the same policy in Europe and signing a raft of Maribor, Legia and Malmo players?

     

    We need to sign players from clubs comparitive to our own. We are looking at players who know how to win CL play off matches. It’s not difficult. What do we want? To get into the CL? Buy players who have done it at smaller clubs in the CL play offs.

     

     

    LB

  12. squire danaher on

    Kevin John 12:45 – an insightful but dispiriting contribution.

     

     

    Livibhoy 1.01 – I think the ship which is your idealised romanticised notion of football has long since sailed. If you want community involvement and identification maybe you should go and watch the Juniors.

  13. embramike says "the Huns are Deid" on

    We are a Pot 2 team in tomorrow’s Europa League draw so let’s look at the possibilities.

     

     

    The reduced income from Europa League in addition to monies from the CL campaign could net us over £9m this season.

     

     

    . CL money to Play Off – £2.13m

     

    . EL group stage – £1.75m

     

    . second place (Pot 2 team) – £0.18m

     

    . 3 wins + 1 draw in group – £0.88m

     

    . last 32 qualification – £0.36m

     

     

    So that’s £ 5.3 m plus TV pool money plus gate money (est ~ £4m) so over £9m potentially if we can progress to the last 32 of the Europa League.

     

     

    Not exactly Champions League money but better than a poke in the eye with a sharp stick.

     

     

    We have until 6pm Tuesday to strengthen the squad for the coming campaign, so let’s look at the positives and get behind the team – we are Celtic !

  14. Long CEO Tenure Can Hurt Performance

     

    Xueming LuoVamsi K. KanuriMichelle Andrews

     

     

     

    FROM THE MARCH 2013 ISSUE

     

     

    HARVARD BUSINESS REVIEW

     

     

    It’s a familiar cycle: A CEO takes office, begins gaining knowledge and experience, and is soon launching initiatives that boost the bottom line. Fast-forward a decade, and the same executive is risk-averse and slow to adapt to change—and the company’s performance is on the decline. The pattern is so common that many refer to the “seasons” of a CEO’s tenure, analogous to the seasons of the year.

     

     

    New research examines the causes of this cycle and shows that it’s more nuanced than that. We found that CEO tenure affects performance through its impact on two groups of stakeholders—employees and customers—and has different effects on each. The longer a CEO serves, the more the firm-employee dynamic improves. But an extended term strengthens customer ties only for a time, after which the relationship weakens and the company’s performance diminishes, no matter how united and committed the workforce is.

     

     

    We studied 356 U.S. companies from 2000 to 2010. We measured CEO tenure and calculated the strength of the firm-employee relationship each year (by assessing such things as retirement benefits and layoffs) and the strength of the firm-customer relationship (by assessing such things as product quality and safety). We then measured the magnitude and volatility of stock returns. All this allowed us to arrive at an optimal tenure length: 4.8 years.

     

     

     

    The underlying reasons for the pattern, we believe, have to do with how CEOs learn. Previous research has shown that different learning styles prevail at different stages of the CEO life cycle. Early on, when new executives are getting up to speed, they seek information in diverse ways, turning to both external and internal company sources. This deepens their relationships with customers and employees alike.

     

     

    But as CEOs accumulate knowledge and become entrenched, they rely more on their internal networks for information, growing less attuned to market conditions. And, because they have more invested in the firm, they favor avoiding losses over pursuing gains. Their attachment to the status quo makes them less responsive to vacillating consumer preferences.

     

     

    These findings have several implications for organizations. Boards should be watchful for changes in the firm-customer relationship. They should be aware that long-tenured CEOs may be skilled at employee relations but less adept at responding to the marketplace; these leaders may be great motivators but weak strategists, unifying workers around a failing course of action, for example. Finally, boards should structure incentive plans to draw heavily on consumer and market metrics in the late stages of their top executives’ terms. This will motivate CEOs to maintain strong customer relationships and to continue gathering vital market information firsthand.

  15. Downsize the team….but never the board, oh no.

     

    I mean what would we do without the cleverest man alive…Peter Lawell.

     

    A man who reaps the rewards, and now and again basks in the glory of a good result, but also a man, who hides when things are tough, a bit like the current team.

     

    We really do deserve better than billionaires and millionaires on the board pleading poverty, not to forget the board lackeys who back them to the hilt.

     

    Billionaires and millionaires who cannot wait to play the bigot card.

     

    And don’t forget, the wonderful display at Celtic park, reminding us of our legendary players and history, while at the same time, they sign spl dross and pretend they have won the lottery.

     

    Seriously….you could not make it up.

     

    Display our history, in an effort to make us forget the current reality…..genius eh.

     

    Aye right .

     

     

     

    HH

  16. Go tell the Spartim on

    KevinJohn

     

     

    I know what financing the debt does, its the obsession with it, there in lies the problem, we seek only to cater for the AIM and accountants etc So taking your points further regarding the extra punters, say for instance you have an exciting team to watch (The tribute act are trying to pilot this concept as we speak) and you increase your core fanbase from say 30k to 35k, and they spend £1000 per annum on the games and the club thats how much extra incomem circa £500,000 surely that cant be sniffed at. Scrap the bonus structure unless its tailored to football success then, what would that save, if its minimal then still scrap it, i dont think he warrants a bonus

     

     

    Comparing us to Arsenal achieves what, they are more hollywood than us anyway, but the information you provided is insightful and useful. However, i find all of this only supports the view that we cant win so dont try mantra.

     

     

    Dont improve the team cause its not worth it in match day revenue

     

    Dont cut the dividends or bonus to the CEO and the other suits, as its only a portion of an overpaid players remuneration (why dont we just scrap giving out dividends then if the majority (in number not in shares) dont take them – we know why they wont be scrapped)

     

    Dont improve the team cause we may not make the champions league anyway

     

     

    In essence there is no point in trying to improve the team.

     

     

    That is a view that could be taken from your comments

  17. squire danaher

     

     

    I’m not saying footballers shouldn;t be paid well but that is an obscene amount of money to be paid.

     

    The first £1m a week footballer isn;t far away.

     

    Where does the madness stop?

     

     

    LB

  18. mullet and co 2 on

    My suggestion would be to keep our money in our pocket if Celtic are going gor yet another project up front. But young Christie or Greg Stuart from Dundee. Further back get Gauld in and sell Johansen.

     

    If we are going to spend any money bring in a couple of experienced internationals to steady the ship and bring us through the qualifiers. Surely the outlay for two such players is insignificant to the Champions League possible income and progress of young talent. Forget treating every position as a project and an asset and start treating this as a football club and everyone will be happy.

  19. I see the beancounters are out in force again.

     

    We cant do this, we cant do that….Peter knows best.

     

    Honestly, its laughable.

     

     

     

     

    HH

  20. Go tell the Spartim on

    Ger57

     

    tsk tsk tsk

     

     

    Keep your head in the sand and when anyone looks at you they’ll see an A******

  21. 4-3-3 in domestic football, with two forwards (Griffiths & Ciftci or Commons but preferably someone new) and a winger (Forrest or GMS) in the front three, the middle three should only have one sitter and two who can support the front three.

     

    This can easily be adapted to 4-5-1 for Europe and make us more difficult to break down defensively.

     

    We don’t need two chasers in the midfield (Brown & Johansen), we need two passers (Bitton & Armstrong), players who can keep possession and pick a forward pass to create chances.

     

    We need full backs who can defend as well as support the attack (Lustig when fit and a similar left back).

     

    We need an experienced central defender who can organize the younger players and give us a bit of leadership at the back.

  22. I’m still a Celtic supporter after 45 years on this earth and God willing I will still be here in another 45 to carry on that support. My eldest son is carrying on that mantle, the wee one is just one of those wee boys with no interest in football…. great wee guy.

     

     

    Everyone of us….! have been here before, we will be again. There is an agenda in the Scottish media to rubbish Celtic Football Club at every opportunity, apparently a poll in a rag today of should Ronni go, can you not see what is going in here..

     

    We are destroying our club ourselves, the media are against us not with us and we are riding along giving them every bit of ammo we can.

     

    See if you don’t want to go and watch Celtic don’t go, it’s your choice, but see if you want a club and a team to watch in 45 years ye better get back into it pronto.

     

    We have no God given right to win every game, we are who we are and where we are and the level is probably about right.

     

    The football we are playing just now in the league is not bad, we are entertaining and getting better, we will get better and Scottish football as a whole, our league is not to bad it’s getting competitive goals galore. That’s where we are and we are going nowhere else so let’s get on with it.

     

     

    Anyone who disagrees fine all about opinions, but anyone who hasn’t been to a game for a while and disagrees well….

     

    I have two tickets main stand Adult and concession 16yr old. I’ll be in Clydebank tonight watching my boy play football, we can’t make the game this weekend so if you fancy having a look at Celtic in the flesh the tickets are yours…. meet ye in Clydebank.

     

     

    Let’s get behind the team, sometimes you do t know what you’ve got till its no there…

     

     

    Hail Hail.

     

     

    Ayrshire is Green and White

  23. squire danaher on

    Livibhoy

     

     

    It doesn’t and it won’t for the foreseeable future. That’s the dispiriting thing.

     

     

    We are what we are. We can’t be what we’re not.

     

     

    Football will eventually eat itself when enough people who had been passionate about it see through it.

     

     

    Sky are currently embracing the MLS not only because they have lost UEFA rights to BT but because they think it has future relevance as an EPL retirement home as well as being an area for growth in football appeal.

     

     

    I’m not disagreeing with you.

  24. 2-0 up after 10 mins and threatening to blow Malmö away and we end up losing the tie comfortably.

     

     

    Ronny has to take responsibility for that. He has one more chance next August if he’s lucky.

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