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King, financial recklessness and Celtic executive management

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Let’s clear something up right away.  Every summer Celtic know they may not reach the Champions League group stage.  No matter how well they plan and recruit, they can come up against a better, or luckier, opponent.  Champions League football might not happen in any given season, or the following season.

Celtic failed to reach the group stage of the Champions League five times in the last nine seasons.  We might be getting better at qualification, but no one is making that assumption.

On 30 June last year, we had £24.5m in the bank.  That figure should be higher on the same reporting date this year.  We might not reach the Champions League group stage next season, but your football club has never been better prepared for a sporting reversal.

In a newspaper interview yesterday, Dave King compared Celtic’s current position with that of now-liquidated Rangers at the time Martin O’Neill came to Celtic.  In O’Neill’s first season at Celtic, Rangers competed in the Champions League group stage before dropping to the Uefa Cup.  But, on their 30 June 2001 reporting date, they had a bank balance of only £17,000.  Not enough to buy a family hatchback.

Rangers were gambling every penny they could get their hands on without thought for the consequences of a reversal.  It was a brutal period to be a Celtic fan, because although we were also losing money during at that time, the club was under siege from all sides for not ‘showing the ambition’ of the likes of David Murray and Dave King at Rangers.

Celtic know the perils of an over-dependence on Champions League revenues.  We do not budget on having to qualify for the group stage each season, far from it.  Our commercial sponsorship deals, retail and hotel plans, as well as player recruitment and development strategy, are all designed to mitigate an over-reliance on one source of income.  A £24.5m bank balance is evidence of a club planning on long-term stability.

We know what we will do in any season they don’t qualify for the Champions League in order to give us the best chance to do so the following season.  We know what to do to respond to any credible threat from another Scottish club for the domestic title.

We have experienced professionals in the boardroom and throughout all executive roles, and an actual billionaire who has put more money into Celtic than anyone has put into any Scottish football club – apart from the money the taxpayer wrote off due to the liquidation of Rangers while Dave King was paid to monitor and direct the club.

Celtic run scenarios on how things can go wrong.  They know the limits of what King and Newco can achieve and believe the biggest threat to Celtic’s dominance is for the executive to make strategically bad moves.  Rangers era of dominance was undone by financial recklessness, but in management terms, the problem was that the mechanisms did not exist to call the board to account on their gambling.

To combat this, Celtic have made sure that everyone at the club is challenged on their plans and performance, especially the chief executive.  If there is a strategically bad move made at Celtic, which could threaten their dominance in Scotland, it will have to get through multiple layers of scrutiny and opposition.  No one wants to be the next David Murray or Dave King.

Your football club might not be gamblers on the scale of Murray and King, but they are fiercely competitive and never want to lose another Scottish title.  That is what we plan for, and that is the reality that Dave King cannot come to terms with.

£6m from a share issue – and he didn’t even commit to that amount, even if the Takeover Panel are quickly satisfied on the overdue share offer!  And all that patter yesterday about delays in opening a bank account; why now transfer the money into your solicitor’s client account, like the rest of the world?

Why so many people put faith in this man “beggars belief”, to borrow a phrase.  From his “glib and shameless liar” title to the years of evidence laid out in plain sight.  You know how this story ends.

Ben Nevis Huddle is back!

After a three year gap, the Celtic fans will be back on Ben Nevis on mass on 30 June, to raise funds for your Foundation.  This is a great chance to climb Britain’s highest in the company of dozens of other Celtic fans.

Participants are asked to raise (only) £130 for the Foundation.  It is a great opportunity, see here for more details and to sign up.

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404 Comments

  1. !!Bada Bing!! on

    But will Celtic publicly defend our Captain, from a slanderous statement from an opposition manager? No.

  2. The Battered Bunnet on

    If you missed it, I scribbled this piece on Sunday, before King presented his £6M plan for new capital for Sevco.

     

     

    https://someoldhat.wordpress.com/2018/05/06/steven-gerrard-expect-the-unorthodox/

     

     

    It looks at the financial gap King requires to bridge to fund a team that is competitive with Celtic.

     

     

    A veritable “house of cards” right enough. A full house.

     

     

    Celtic will report turnover in excess of £100M for this year, probably nearer £105M. There is a further dividend of around £10M from the sale of Van Dijk. Year end net cash will be in excess of £30M factoring for staged payments for last summer’s transfer activity.

     

     

    King’s £6M approximates to 10% of what he needs to find.

     

     

    It’s a worry….

  3. Our Club Celtic,is well run,but to get a good run in the Champions League,,and that’s were the big bucks come from,then Brendan Rodgers and Peter Lawell,need to add a few Quality Signings,and yes King had no right to talk about our club,but he is saying what there fans want to here,and there is season tickets to be sold,and it wasn’t Celtics fault they were Liquidated,if they would have accepted that it was Murray ,King , Johnson ,who brought there club to its demise,

  4. What is the Stars on

    What happened to the Michelle Mone Warchest

     

     

    Front loaded investments

     

     

    Twin Peaks CSC

  5. accountancy question –

     

     

    how is a sell on fee transacted, and how does it appear in the accounts and in what reporting period ?

     

     

    Using VVD as an example, he joined liverpool when ? and how does celtic plc get the due part ? on the day he is transferred, or what.

     

     

    ta for any info.

  6. fieldofdrams on

    Financial recklessness? At Ibrox? Don’t think so, because according to one of their blogs this morning:

     

     

    “We’re running at a deficit out of choice, not because we don’t have enough income.”

     

     

    As a way to run a sustainable business, it seems legit.

     

     

    SwiveleyedloonsCSC

  7. I am running my house at a deficit out of choice, not because I dont have enough money.

  8. FIELDOFDRAMS

     

     

    I was on their blogs yesterday to see how they reacted to Glibby’s announcement of the share issue, seemed to me they had a lot of folk saying everything was alright and not to worry The Glib One had it all in hand and more money was coming.

     

     

    Not saying they were plants:)) But certainly keep out of direct sunshine and water sparingly:))

  9. FIELDOFDRAMS on 8TH MAY 2018 11:27 AM

     

    Financial recklessness? At Ibrox? Don’t think so, because according to one of their blogs this morning:

     

     

     

     

     

     

    “We’re running at a deficit out of choice, not because we don’t have enough income.”

     

     

    I am not going out with Christina Hendricks not because she doesn’t know me but because I choose not to…

  10. weebobbycollins on

    Why is james forrest (the blogger) such an angry young man? Every day, same old stuff…have a wee lie doon james…life is no sae bad, we’re winning… :-)

  11. What is the Stars on

    The Takeover Panel ruling is an irrelevance and his no impact on the Football Club

     

     

    Glib and Shameless talk from His Maj..

     

     

    The guy is the best thing that has ever happened to a major Glasgow Football Club …..guess which one ( clue, its not Partick Thistle)

  12. South Of Tunis on

    Trump promised the gullibles that they would never see a $ 400 billion deficit again .

     

     

    Surprisingly truthful by his standards . It’s currently @ $ 800 billion .

  13. Paul67

     

     

    It’s not recklessness it’s wrecklessness.

     

     

    Not to Celtic direct but to the SPFL top tier as a whole.

     

     

    This is what happens when a club thinks it can spend what it wants and defy the consequences and carry on as the same club with the same insane policy.

     

     

    Some form of domestic FFP that puts a cap on borrowing and limits spending to football generated income is essential to protect the welfare and integrity of the game.

     

     

    Celtic are less vulnerable for sure but other clubs? Lest we forget Celtic need other clubs to play against so some form of domestic FFP is in Celtic’s interest too.

     

     

    Given DK has brought his policy out into the open let’s hope it gets more of a public airing.

     

     

    Remember Gretna and their pony tailed owner Brooks Mileson? Where is the difference between his personal guarantee and DK’s? Neither were/are immortal.

     

     

    This guy needs removed from our game before he destroys it.

  14. fieldofdrams on

    Some on their blogs are saying that they are running at a loss as a deliberate strategy ‘so we don’t have to pay tax’.

     

     

    Deliberately not paying tax? At Ibrox? I’ve seen that movie.

  15. YORKBHOY on 8TH MAY 2018 11:36 AM

     

     

    Even a box of mad frogs would hop it out of Ibrox.

  16. Paul67

     

     

    So they didn’t deserve better after all?

     

     

    All smoke and mirrors, SMSM and their summer of ‘signings’ made up transfer ‘bids’ lights stay on in the big hoose for another penniless attempt at winning second, against squeaky clean and never stronger Aberdeen and Hibs.

     

     

    Steven Gerrard is all very well until the players and points fail to materialise we’ve grown used to it since 2012, and there is clearly a level of what you can achieve when you cannot compete in the modern transfer insanity of todays football world.

     

     

    Fictitious figures paid for players that they can’t now give away will be Sevco’s continual undoing, and that’s before any new manager can start to wave a magic wand. Moonbeams didn’t just move the goalposts with original Rainjurs and ‘transfers’ he ripped up the rules, and with every passing treble, Sevco are now paying the price of the equilibrium that the liquidation of Rainjurz initiated.

     

     

    Aberdeen start their new stadium in June, Hibs Hearts, Motherwell ,St.Johnstone have never been better off since Rainjurz died cheating, and vying with the new club who are firmly in debt

     

     

    Had they started a club properly from grass roots level, shown some contrition and did their penanze they might even have been further ahead of the curse, than they think they are ahead of the curve.

     

     

    Last years faux pas, has been quickly followed up with more of the same and the legacy of Pedro Caixinha and Pedro Mendez phoney baloney playing staff filled with bosmans and loanees permeates the stricken zombie clumpany Fatal mistakes for sure that will at some point in their brief history leave them planning a third Rainjurz..

     

     

    Unfortunately for Sevco Rainjurz its not their financial plight that is their biggest barrier to success its merely the beings themselves, and the type of trash that they are.

     

     

    Hail Hail

  17. Glibby ran with that rhetoric last year about intentionally running sevco at a loss. In my opinion it is up to Aberdeen, Hibs, Killie, etc to call out sevco and the ftSFA out on this. I don’t believe it is solely our responsibility because we are in rude health and it would be construed by the rest of Scottish football that we wish to have no competition and were doing it out of bias.

  18. Where do you begin with that total horlicks? How do you begin to comprehend, word-by-word what that hunned-up huckster is aw aboooot?

  19. BSR

     

    Unfortunately for Sevco Rainjurz its not their financial plight that is their biggest barrier to success its merely the beings themselves, and the type of trash that they are.

     

    ——————————————————————————-

     

    Never a truer word has been spoken and therein lies their problem. However, they are the peepil. ????????

  20. 16 roads - Protect the 8th. on

    How do you fold a deck of cards?

     

     

    Baloney Kang, baloney.

     

     

    HH.

  21. BSR

     

     

    “Unfortunately for Sevco Rainjurz its not their financial plight that is their biggest barrier to success its merely the beings themselves, and the type of trash that they are.”

     

     

    Therein likes the crux of the matter, their blogs were a hoot yesterday, baseless fantasy islands with smatterings of unadulterated hubris and bigotry.

     

     

    If all the money they think incoming in comes in they will be the best funded team on the planet…janet:)))

  22. Davidopoulos on

    The greatest threat posed to Celtic by King is the possibility that he will soon cut his losses and run…

  23. Well the Sevconians on Hun Media are more than irate at King. Summing up, the vast majority see him. as a bare-faced liar who is baiting the TOP; they point out he cannot complete a share issue just now; and he will not raise a fraction of what is required to pursue Celtic.

     

     

    Maybe the penny is dropping …..

     

     

     

    KTF

  24. starry plough on 8th May 2018 12:03 pm

     

     

    Therein likes the crux of the matter, their blogs were a hoot yesterday, baseless fantasy islands with smatterings of unadulterated hubris and bigotry.

     

    —————————————————————————————-

     

     

    A perfect description of hun media yesterday.

     

     

    I looked in for a laugh and to see how they were taking the latest mibbes aye/mibbes naw £6m over-investment.

  25. on 8th May 2018 12:11 pm

     

     

    Maybe the penny is dropping …..

     

    ——————————————————–

     

     

    Maybe they should pick it up. They’re gonna need it!

  26. SAINT STIVS on 8TH MAY 2018 11:23 AM

     

    accountancy question –

     

     

     

    how is a sell on fee transacted, and how does it appear in the accounts and in what reporting period ?

     

     

     

    Accrual Accounting. Definition: Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

     

     

    The invoice date is the date for the transaction in the accounts. When that is and for how much would be dependent on the deal with southampton but theoretically as soon as the players registration is transferred we could include the full amount in our accounts

  27. Paul67 et al

     

     

    Paul you forgot about the bit when he said;

     

    “But I am expecting a Postal Order……

     

    I can pay you back this Postal Order arrives from Australia”

  28. Classic deflection from Levein. Making inflammatory comments to deflect from their hammer throwing etc.