The £11.5m loss Celtic reported yesterday was a significant upside on what could have been. Most revenue streams were cut to the bone, or in the case of match day spend, eliminated completely. That the cub survived without having to drastically change its trading levels was down to four factors.
Season book sales have been the bedrock on which Celtic’s foundations have been built since Fergus McCann took over. Fans buying tickets in the middle of a pandemic was absolutely critical, be in no doubt, you may have never scored a goal, but you played your part for Celtic. You pushed Football Operations income to £20.8m. This figure was £15m lighter than a year earlier, but with no European or cup ticket sales, no food and drinks, it was a remarkable return.
My eye was drawn to Merchandising income: £22.6m, the highest ever figure and up a remarkable £7.6m on the previous season. Achieved with zero match day walk in and very little footfall all season. This was the first season of our kit deal with Adidas and, just as importantly, our retail deal with JD Sports. If season ticket sales are the first leg on terra firma, these commercial deals are the second.
The baseline for Merchandising income is now higher than for Football operations. What does that mean? It means we can budget with a lot more confidence. Multi-year commercial income deals reflect our exposure to multi-year player contracts. This is how you build a football club; enormous credit to the unsung commercial team.
Europa League football help generate £17.3m in our ‘Multimedia and Other’ segment that also includes SPFL payments. This is £2m down on the previous season; second prize does not pay as well as first. The Europa League is not where we want to be, but when we miss out on the Champions League, it is absolutely where we need to be.
Notwithstanding the list of Japanese, Greek, English, Croatian, Israeli and Swedish internationals who arrived this summer, the contribution to our stability from those who left since our last interim reporting period ended on 31 Dec 202, is enormous. If we had not sold Odsonne Edouard, Kris Ajer, Jeremie Frompong and Patryk Klimala for the money we did, the playing squad would look remarkably poorer today.
Every club needs to manage its assets, even the biggest. Buy them at an age and profile you can develop and sell profitably. Not all will make the grade, so those who do need to compensate. The profile of the squad is not looking just as suited to this strategy than it was been for the last decade. Win the league and qualify for the Champions League, and that’s not a problem, but this is not a sustainable strategy. Celtic need to get back on the Asset Management track.
It is probably only after such an appalling season you get to see how robust the club is; built on solid granite. Let’s hope it’s a while before we get to test this again.
227 Comments- Pages:
- «
- 1
- 2
- 3
- 4
- 5
- 6
- »
GLASSTWOTHIRDSFULL on 22ND SEPTEMBER 2021 1:57 PM
Statement to the SE says “resigned”. Accounts says “settlement agreements on contract termination”.
Make of that what you will!
____________________________________________________________________________
Lenny was always due a payoff whenever he left and for whatever reason (resigned/sacked) as that’s what the terms were in his contract?
Lenny the payout legend…..
AN DÚN on 22ND SEPTEMBER 2021 2:04 PM
Where is the 21st century strategy that I thought McKay was going to initiate?
He started to initiate it and it cost him his job .
SPIDEY101 on 22ND SEPTEMBER 2021 1:14 PM
Terrific analysis, as usual…
Ah yes, the ole “ I know where the bodies are buried “ clause.
Sometimes comes with the catch all “ family reasons “
label.
Surely the Board agree the transfer deals or set limits/floors/ceilings to empower the CEO to act swiftly?
Bigbhoy – I think you’re probably right that Eddy got his contract paid up. The 10% of transfer fee doesn’t come from us, it comes from Palace (who have to pay that on top of what they pay us, and it isn’t necessarily 10%, that’s just a proxy).
I think we probably made around £2m profit if looked at in terms of paid £9m, brought in £14m, paid PSG and Eddy what they are owed, etc.
I do wonder if Eddy was the mistake McKay made. Not because we sold him so cheaply but because there was an early summer offer from Leicester and, had we sorted a deal, we might have shown break even/profit in the accounts. Maybe the timing isn’t right and I’m putting 2+2 together to make 5, but given Eddy’s optimal sale time was last summer (same for Ajer and Christie) and we made a trading loss for 2021, it seems odd that one rebuild window (where we needed experience) was enough for McKay to get the bullet.
Alison Conroy
@AlisonGConroy
Ange Postecoglou says Callum McGregor won’t be back for Celtic’s League Cup tie v Raith Rovers. Giorgos Giakoumakis is in the squad for tomorrow night’s game but unlikely to start.
………no love, no genuine hurt, no humanity.
Just a determined bitterness that’s normally alien to us and ours.
Aye.
BIG WAVY on 22ND SEPTEMBER 2021 2:32 PM
Alison Conroy
@AlisonGConroy
Ange Postecoglou says Callum McGregor won’t be back for Celtic’s League Cup tie v Raith Rovers. Giorgos Giakoumakis is in the squad for tomorrow night’s game but unlikely to start.
______________________________________________________________
BIG WAVY
are there any details on what the injury is? So unlike McGregor, how many games has he missed due to injury in the last 5-6 years?
We need to develop our own players if we have to keep selling them.
They basically cost nothing so there is no complicated maths to see how much
profit you have made.
Then within that we need to employ the best coaches who are prepared to come
here. That’s where you should spend your money. It’s the only level playing field
BACK TO BASICS
Same over here.
BACK TO BASICS – GLASS HALF FULL on 22ND SEPTEMBER 2021 1:29 PM
Just had the misfortune of watching much of the BBC’s One O’clock News.
The level of incompetence of the UK Government is staggering.
—–
As all populations say of all governments, all the time.
Seems to me that you may be attempting to deflect away the Holyrood Horlicks up here – if that is not your intention, I offer my apologies and beg forgiveness.
Yes of course no government is perfect, except for the SNP devolved one, in the eyes of their cult.
As in the Global Financial crisis of 2008, as in the Covid Pandemic, as in the Furlough Scheme to save millions of jobs and thousands of companies, as in the world beating development and delivery of vaccines that are saving millions of lives and reviving our economy and as in the current crisis in global energy supplies…..it is UKGOV that will sort it for us and put us back on our feet – not the Disney SNPcult administration that dominates a Mickey Mouse assembly in Edinburgh.
A proper administration ensconced in the most powerful devolved parliament in the world could, if it dispensed with all the Indy nonsense and worked with the UKGOV, instead of dreaming up fantasy grievance after grievance, make a real difference in Scotland and deliver workable Scottish answers to distinctly Scottish questions……and unite a country that is riven like as never before.
On the 650k severance. Was Ntchams contract not terminated . Therefore he would be due a payoff.
Young Boys of Berne have never spent more than £3m on a player. Doing not too bad so far in CL.
SPIDEY101 on 22ND SEPTEMBER 2021 2:29 PM
Bigbhoy – I think you’re probably right that Eddy got his contract paid up. The 10% of transfer fee doesn’t come from us, it comes from Palace (who have to pay that on top of what they pay us, and it isn’t necessarily 10%, that’s just a proxy).
I think we probably made around £2m profit if looked at in terms of paid £9m, brought in £14m, paid PSG and Eddy what they are owed, etc.
I do wonder if Eddy was the mistake McKay made. Not because we sold him so cheaply but because there was an early summer offer from Leicester and, had we sorted a deal, we might have shown break even/profit in the accounts. Maybe the timing isn’t right and I’m putting 2+2 together to make 5, but given Eddy’s optimal sale time was last summer (same for Ajer and Christie) and we made a trading loss for 2021, it seems odd that one rebuild window (where we needed experience) was enough for McKay to get the bullet.
—-
That would seem incredibly harsh if it were the case. Not selling players for peak transfer fees is something I imagine happens at most clubs at some stage.
We could be here all day listing the transfer mistakes of Lawwell and the recruitment mistakes which have cost us an awful lot more than a few million left on the counter in selling Eddie.
At it again. Any chance you could answer my question?
Mm
“Two huge talents in KA and OE and we sold them for relative buttons.”
Do you think the players had something to say about there departures? Do you think if we told VVD je was going nowhere he would still be here? Maybe with Jason denayer at the heart of the defence with Fraser Foster in goal and Tierney ripping up the left?.
Maybe we could have won CL if only the Celtic board put these players in their place.
The ‘evolutionary initiatives’…………….is it the away win?
An Dun – it would be harsh. But the o luck reason I can think for trading to be a factor is the delay meant we couldn’t show a break even/profit in the accounts, which would bruise Desmond’s ego – I can fully imagine he’’s want to be able to say “look, the height of COVID and Celtic didn’t lose any money – how amazing am I?”
WEEBOBBYCOLLINS on 22ND SEPTEMBER 2021 3:01 PM
It isn’t programmed to answer questions.
It repeats its message on basis it presumes we are too stupid to have understood it first time.
Don’t waste your energy.
Squire Danaher…you’re probably right. I think I’ll give it a rest…
For a wee while anyway 😃
McPhail Bhoy
Yeah – probably some clause in the contract or something – dunno. Don’t have an issue with the payoff per se (and certainly not if it was a sacking) – just don’t know why they couldn’t have said that if that’s what it was. Said “resigned” at the time, but accounts say “contract termination”. Don’t see how it can be both?
See Peter Martin, Hugh Macdonald and Alan Rough giving it tight to our duffer Board on PLZ Soccer last night.
Meanwhile, in another universe, on PLC Soccer Ian Bankier is howling at the moon that Celtic is in good hands…
MCPHAIL BHOY on 22ND SEPTEMBER 2021 2:39 PM
BIG WAVY on 22ND SEPTEMBER 2021 2:32 PM
Alison Conroy
@AlisonGConroy
Ange Postecoglou says Callum McGregor won’t be back for Celtic’s League Cup tie v Raith Rovers. Giorgos Giakoumakis is in the squad for tomorrow night’s game but unlikely to start.
______________________________________________________________
BIG WAVY
are there any details on what the injury is? So unlike McGregor, how many games has he missed due to injury in the last 5-6 years?
———–
My thoughts exactly.
St Tams
Paul’s article yesterday said this:
The club paid £630k to settle contract terminations, Neil Lennon’s severance will feature heavily here.”
If Ntcham got anything I would have thought that would be in the next accounts?
JHB on 22ND SEPTEMBER 2021 2:02 PM
AULDHEID on 22ND SEPTEMBER 2021 1:08
—–
Thank you for your reply, which in keeping with all you post is clear, concise and erudite.
Of course I agree with you that during that time there was cheating and subterfuge involving those at Ibrox and the authorities in Scottish football. Like you I wish that certain things could have been selected out and dealt with separately whilst the maelstrom was raging, e.g. the licence thing and the LNS debacle. However in explosive situations like these an overview and appteciation on how the debris falls, who is held ultimately responsible and how it affects them, whether through consequences, or, punishment, is the best we can expect.
An example may be the Levinson Enquiry into the disgusting long-term practices of the media. The overall picture was exposed but not every single wrong was righted, not every victim acknowledged and compensated.
However new standards were set and vigilance heightened. We at Celtic will be aware and recognise the signs sooner if there was a ‘next time’.
My view is that we must move on from 2012 – continually holding our club officers in contempt for decisions they may have/ may not have, made in the interests of Celtic, is counter-productive and undermines the fabric of the club.
They whole farce was not of Celtic’s making and yet some would partially tar it with the same brush that should be reserved only for those who perpetrated and facilitated this dastardly, wilful and premeditated fraud.
Respectfully I say, your efforts have been admirable and driven by right – however it is now time to move.
===================
What happened was the result of the moral hazard that Celtic face game in game out and will not admit it never mind face it.
If some supporters want to go along with it, that is their choice. It is not mine nor that of many shareholders who would like to know they are not paying into a rigged game. Who would like to hear what the new standards are.
Self respect, that you appear to be advocating such supporters should surrender to help Celtic make a buck , requires those with it to know what steps have been taken with SFA (and Celtic undertook to engage with them at last AGM under Res11 under duress ) to ensure Celtic are never again put in the position they were.
There has been nothing to deter Rangers behaving as before and for all the commercial benefits Paul 67 describes, the biggest risk to obtaining them are our rivals and their continuing reckless financial behaviour.
Even on a commercial basis Celtic should be taking steps to protect themselves from the consequences. So what are Celtic actually doing after 6 years of delay before finally accepting in 2020 they would take on responsibility for engaging with SFA for dropping their weaker non compliance charges never mind the strongest one that Celtic avoided speaking to in 2019?
What kind of club is that to pay money into?
However if there is no support from small shareholders at next AGM to express their concerns, then that suggests the support at large are happy to be misled and pay to watch what has unfolded as a result of 5WA decisions take in 2012 accepted by Celtic, decisions that are Celtic’s responsibility, NOT our rivals and in that sense have brought opprobrium on themselves from many supporters who are simply not prepared to be misled and move on without a persuasive argument that is truthful?
What is so damaging about the truth being spoken that you fear the consequences so much you mislead others here?
Who are you speaking on behalf of?
This is from BBC Chris McLaughlin Twitter.
In ongoing legal dispute between #Rangers and the SPFL over league sponsor Cinch, a court hears from a QC that the club was in negotiations with Cinch about selling off naming rights to Ibrox, in June.
The banter years continue, so because Cinch sponsored the SPFL instead of them, they spat their dummy out, again!
This is what this dispute is really all about.
I found that leader to have a singularly depressing, uninspiring and unambitious conclusion.
“…The profile of the squad is not looking just as suited to this strategy than it was been for the last decade. Win the league and qualify for the Champions League, and that’s not a problem, but this is not a sustainable strategy. Celtic need to get back on the Asset Management track…”
The aim is not winning the league
The aim is not qualifying for the Champions League
The aim is not progressing on a sporting front as a club
The aim is not growth
The aim is simply asset management
All Dom’s statements were about being World Class in all areas, about doubling revenues, about increasing the access to Celtic globally and therefore opening new markets – all of which he did at the SRU and all of which has contributed to better performances and more success on the park.
I’ve never been one for the constant Board sniping – but this really is a dead end for ambition – what a hollow and empty aim for a ‘Club Like no Other’ – good asset management.
You can only shake your head in sadness.
HH
BGFC
SPIDEY101 on 21ST SEPTEMBER 2021 10:13 PM
—–
Your piece from the last article which is also very relevant to this one.
It is a fitst-class piece, an interesting piece, an informative piece, which I so enjoyed reading that I went back and read it again today. I learned a few things.
Thanks for posting it!
“ Celtic will be without wee escape goat Greg Taylor for up to 12 games following surgery “
Awe_Naw Csc
SPIDEY101
Good points. To develop it further. Perhaps this is where the Desmond involvement in transfers rumours comes from. Maybe Edouard and Christie were not taking the transfers and Desmond intervened to ensure we recovered something. It is very much about money and like a deal maker like Desmond
Paul 67
Of all the factors that contributed to the Celtic loss not being a lot worse, the contributions made by a support, loyal to a fault , was the most significant.
They are the heartbeat of Celtic and it is because of that support the other benefits you describe flow like blood through the veins.
Is it too much to ask therefore that Celtic begin to engage with those supporters and their valid concerns in a meaningful manner that heals the divide rather than exacerbates it?
There is much to be done on both sides of the divide and the opportunity for such bridge building is at hand if Celtic can show the kind of leadership to grasp it.
It makes sense in ever direction, commercially, integrity restoring and probity that will take Celtic out of a mess of their own making and unify the support behind The Board.
Do that and nothing can stop us being a club we would be glad to belong to and so attractive as a result to like minded investors.
Wake up ffs.
NTB @ 3.04
EC Final quality squad — there is nothing to stop that from happening.
These players passed through the doors of CP — just a case the board didn’t have the vision.
VVD — EPL mid table vs Us / Growing CL quality squad.
Discuss — unfortunately it never happened but it was close.
JD — he was coming for a second season if we had made it to the CL proper.
FF / JH
Defence = Young JF / JD / VVD / KT
MF / Defensive = VW / ON
MF / Attacking = Old JF / TR / OE
Attack = MD
Bench = KA / CMcG / RC / MJ / DB / LG.
They would be in with a shout.
We just need to develop a growth agenda and not a selling agenda.
If we keep our good players for longer then the other players will improve as well.
Who would win in a fight between Ryan Jack and Jack Ryan ?
Heavily Redacted CSC
Rainjurz wanted to call their stadium the San Giro
Stop using a.b.b.r.e.v.i.a.t.i.o.n.s. – ffs 🙄😊
Mike Meehan-Wood, always a credible and intelligent commentator on Celtic:
“Our strategy of balancing player development and player trading is fundamental to our self-sustaining business model,” wrote Ian Bankier in the Chairman’s statement, and he’s sort of right. The purpose of the model is sustainability as a football club, but it could and should also be growth, and we absolutely haven’t grown.
Standing still can be a good thing when everyone else is falling, but we’ve barely progressed on a model in which our main competitors – not Rangers, but other similarly-sized European clubs – have outstripped us and other, previously smaller clubs have caught us up. We used to breeze past qualifiers, now we struggle against them. We think that because we are big, we don’t have to be smart, and it’s starting to show.
The Adidas march sales, and the continual season book renewals, have shown that the goodwill of Celtic supporters, and their willingness to invest materially in their club, is near-endless. Or, from the perspective of the board, the fans are a bottomless well of cash from which they can always tap.
Celtic supporters are investing as much money as ever into a materially worse product, both in terms of results and in terms of financial results. If the purpose of Celtic is to compete at the highest level of football possible, evidently we are failing: we haven’t competed regularly in the Champions’ League for years and allowed our previously much poorer main rival to catch us up.
Our business model has only marginally changed since the early 2000s, but our conditions have, both in Scotland and in Europe. The fans’ commitment, as displayed by continually paying for something that gets worse, has shown this board that they can keep going as they like.
These results may yet turn out to be good, or at least comparatively good when taken across Scottish and European football as a whole. The underlying conditions, as seen through these numbers and those of the last five years, however, show managed decline at best, and asleep at the wheel at worst.
For McGregor, see Tierney and Forrest, totally overplayed by various managers