After Celtic’s reversal in Astana I pinned the decision to allow Kelvin Wilson to leave after the Elfsborg tie as critical. It left us playing an unaccustomed central defensive partnership against Shakhter while generating only £2.5m.
Before Saturday’s game with Dundee United Neil Lennon suggested the player and his agent had been “naughty”, which might explain things.
It is not unknown for players to cite that they are “not in the right frame of mind” to compete for the club which pays their wages while there is an alternative deal on the table. This tactic is a certified banker for the player, who does not need to fail a fitness test, he just needs to look a bit down in the dumps. It is a shocking state of affairs which can cost their employers dearly.
I’m absolutely delighted to see the emergence of some interest in Celtic’s financial position over the last week. The club have long term loan agreements, an overdraft facility, and, at any point in time, cash on deposit. We have preference shares which, as long as the club attains certain financial covenants, will attract a dividend. At any point in time we also money owe trade creditors, utility companies, other football clubs and HMRC, but as you know, for 126 years Celtic have always paid their bills.
Our NET debt position at on 30 June 2012 was £2.77m. Since then we have had an excellent financial and footballing year. In 2005 UK accounting rules changed, re-classifying some equity categories and debt. In their 2006 financial statement, then chairman, Brian Quinn wrote:
“Under FRS 25 the group’s Preference Shares and Convertible Preferred Ordinary Shares, previously defined as equity, were reclassified as a combination of debt and equity; and non-equity dividends were in essence re-classified as interest. As a result, net assets were £3.8m lower, net debt £4.7m higher and interest charges £771,000 higher than would have been reported prior to the implementation of FRS 25.”
This was “hidden” away on page one of the accounts. Further details were published at appropriate places throughout the accounts. A video presentation was also given to shareholders and the media to explain the situation further.
Perhaps the word “transparency” should be used instead of “hidden” by some.
For further reading on FRS 25 see page 5 of this report.
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BRTH
FFS …whit wur yee dain ?
BRTH
Never experience it,but one of my sons has broken his leg and arm,he always says that the pain was worse when he broke his arm.I am sure you will have something to dull the pain HH
Peterborough chairman in SSN studio,White will be working him from the back re Celtic .
Broken, Rogan, Trevino and Hogan…
Tallybhoy
What about Vesuvius and Etna?
The hypocracy of football clubs is incredible
They miscall each other in one transaction for behaving in the same fashion as they are in another
Posh …outrageous behaviour re the attempted transfer of May from StJ …then miscall us for behaving better than they did …
PF Ayr
….. Walking and talking at the same time when I tripped……. Never bothered to watch where I was going or what was in the way!
Doc.
Cheers for the info.hh
Tommysbhoy.
I’ll try that shop and take your advice about a cover.hh
SFTB
The info gleaned today about preference shares was indeed good to learn
I have no problem with the payments of dividends whatsoever
Why are we still carrying a loan when we could just pay it off ?
SFTB
Trust me I know all about odds and bookies !!!
I just can’t get the head around gambling with shareholders money to the extent we did.
There has been much talk on here the past while about how to minimise our failure rate, and how to increase our chances of CL qualification.
Now, if bloggers can see how to do it, surely a bloke of Pedro’s caliber can see it, no.
None of us are asking for the club to spend silly money, none of us are asking to spend what we don’t have, all that some are asking for is to minimise the risks of failure, forward planning, planning for next years CL now, not leaving it until the last few hours of the window, to make a desperate attempt to bring in probably a tenth choice striker.
BTW, any chance you can be like the majority on here once in a while and talk bollix >}
HH
Peterborough chairman auditioning for Sports Saturday with Jeff Stelling,got a big hit for himself and like Barry Fry can’t keep his mouth shut.
BRTH
Swift recovery ….pulled the tendons ( or whatever ) in my elbow a few years ago …going too hard at the boxing …bloody sore …heavens knows what breaking it must feel like
Bada bing
He’s a garrulous twat that gadgee ….
Self agrandising blowhard
Bada bing yep Jim White is a bitter so and so
He used to host the Ronald McDonald ball and his ” speech ” was anti Celtic profanities — not even funny.
Imhave heard them all from willie Henderson ( great by the way ) to John Gahgan , to Murdo , to Brian McGinley the ref ( quite funny with the anti Celtic stuff ) to many others.
Jim White made me cringe with his sectarian diatribe. I stopped going and I am not sure if he hosts it now…ESP after a CEO of a major UK company gave him a hard time.
Myth fully debunked or not…
What the hell do we care?
If anything I’d imagine down playing our financial strength
would be a good thing…
I can’t think of a single Celtic supporter that believed that
nonsense in the first place. Infact, quite the opposite.
General consensus being we will probably have the best
part of 50M in the bank come the end of this season.
(47M by my recogning -but I’m no mathimagician and
a poor relation to CQNs finest mathletes…)
Question is…
What to do with said money?
Lets project further down the line, several years into the future.
Assuming adherence to the existing model,
let’s just say there is a spend of in the region of 10M
for new acquisitions next season, just as we have observed
in this transfer window. Next years spend would still be
covered by the sales of this summer.
Now lets assume business as usual. The new players develop.
With the exposure at Celtic park our “projects” mature,
inevitably one or two blossom in our fertile grounds leading
to further substantial sales. New projects come in.
Repeat ad infinitum.
If all goes according to plan, this is all very sustainable.
What I’ve not mentioned is CL income.
With continual involvement over the next few years,
Can we envisage our club having a 100M balance soon?
Sounds nice.
But how could we utilise that effectively?
I for one think der hun are deluded to think they will
be back challenging for honours anytime soon.
IF, and its a big IF, some form of Zombie FC makes
it back to the dizzy heights of the SPFL all the corrupt
officials in the world are still not going to be able to
make their sums add up. We will be light years ahead…
It would be a gross mismanagement on our part to let
them ever come close.
So I don’t fully understand the idea of stockpiling cash
for the (improbable) return of the darkside.
Now this post is not intended as a dig at financial prudence.
Far from it.
I’m asking all of CQN, should our business model continue
to function, if we continue to reap the rewards…
Where do we go from here?
pfayr-hes an 18 carat fud
PFAYR
I suspect that the loan continues so that DD can with his money in a more tax efficient way.
TT
Latchford-seen White in Trader Joe’s Hope St with Gerry McNee a few times,he was incapable of holding a conversation.
sipsini
18:55 on 2 September, 2013
Smashed my iPhone screen when karakandy scored there first goal. Go on eBay can buy new screens for under £10 with instructions to replace. I’ve have sent a lawyers letter to FF saying it was his fault let you know how it pans out.
qunno 16:59
think you miss the point the cheats were helped the whole season leagues are longer than the last 2 games i’m sure the cheats didn’t fail to score in their final games mind you, don’t know their last 2 results maybe a penalty or some other helping hand
Pfayr.
With cash you’re in a position that you can seize opportunities as they arise.
TT
Who is the loan payable to ?
PF
I may be incorrect. . But im sure I read somewhere that should one win the lotto one would still get a wee mortgage.. tax reasons … but not to ebt standards :)
Sipsini
Did you get the ringtone. .. I can imagine that in your canteen
The honest mistake
We have a significant overdraft facility to do that
Bada
Jim shoite was behind me in morrisons cambuslang a few years ago.. a bunch of flowers. . Cheapskate hun
Modern 18 carrot fuds are rubbish
TBJ
I suppose mortgage funds are the cheapest about at the moment
Re CFC loan it would depend on the interest charged on the loan as opposed to the overdraft
The loan may also have a penalty interest clause
Just answered my own question haven’t I :-))
….PFayr supports WeeOscar
I believe it is with the Co-op Bank. The loan will have a maturity date and agreed interest rate. There will be a penalty to pay for early repayment.
TBJ
Who was the lucky boy :-))
David Bentley available on a free – some engine.
PF
When you start to answer your own questions. .. you have to ask yourself the lotto numbers for Wednesday night.
And the lucky boy. Wizny me.
I said ” you only got those flowers mate”
JW… “yeah mate .. can I jump in front of you ”
TBJ …. ” you can jump off the Kingston Bridge for all I care “
TBJ
:-))
Prepare yourselves for the onslaught of pro-sevco, anti-Celtic LL propaganda machine going into overdrive…..what they cannot conceal, though, is the financial disaster surrounding ……
BSR
Aye Bentley would clutch at the chance to come to Celtic.
Wonder who put the brakes on his career?
…sevco …..theybwill not survive beyond Xmas…
67Heaven
Why now ?
has it always not been this way ?
Everton seem to be making progress on McCarthy,rumour today was Kayal to Wigan 4 mil….
tallybhoy – your dad ok ?