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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Awe_Naw_No_Annoni_Oan_Anaw_Noo
10:45 on
3 September, 2013
Sack the boards (9-20)!!
Great reading yesterday
Why were so many people pretending to be Neganon and Nadmitch but not getting a hard time from the usual green huns ?
It was pretty shocking to read how very few of us realise how a PLC works.
DD gets his beer money from Celtic and we finance his footballing hopes (of which there is very little left)
He has very little interest in Celtic.
Every year we have this discussion/debate
Looking at the above table most of the green huns would be having wet day dreams at Evertons figures. It has to be asked though … where is the money going down Goodison Park way ?
HH
SOAL-Good shout,about 8 mil?
Awe_Naw_No_Annoni_Oan_Anaw_Noo
10:50 on
3 September, 2013
I suspect that Everton have to pay high wages to get players the could interest top level teams, to come and play at a mid-lower level team.
It would come as no great surprise to me if Fellaini didn’t get a wage rise as part of his move to Man U.
It would probably take Lafferty 10,000 hours of Italian lessons to be able to string a coherent sentence in the vernacular.
Say two hours a day five times a week = c40 hours a month = c500 hours a year = c20 YEARS!
HH!!
Kevin Bridges interview with Colin Murray after 11:00am news.
Tallybhoy
Put yourself forward for the gig (adding in travel costs). He might be an interesting pupil.
Awe naw.
What is a green hun?
Weeminger
So paying high wages is the answer then to running a tight ship and over achieving ? ;-)
HH
Celtic First @ 10 42 .
Lafferty ?
I have seen one TV interview ——- He didn’t manage 1 word in Italian !.
Very strange signing . After he signed , Mad Man Zamparini likened him to Toni . When the media said —-“-What ?” , Zamparini changed his tune and claimed that it was Gattuso who’d made the Toni comparison ..
Palermo media outlets have frequently expressed the line that Lafferty was not signed for his ability on the field and therefore was fulfilling an off the field role on Gattuso’s behalf
Any board that takes Gatuso on as a manager ehhhhhhhh well what you see is what you get, the man was a retarded halfwit, who occasionally foamed at the mouth, bad choice for leadership, now tha board SHOULD be sacked.
Honest Mistakle
Somone who purports to be a Celtic fan but does not embrace our Social mission statement.
I.e all the cheerleaders on here.
They should take the time to try and I digest it,. It is on the official website.
Any of them dont understand it I am on this occasion prepared to spoon feed
Although I still dont think they will get it.
HH
i take it Celtic can only sign out of contract players whos contracts expired before saturdays window slammed shut?hh
Gattuso?
Great player.
Rubbish manager – possibly.
“retarded halfwit, who occasionally foamed at the mouth” – get a grip.
Gatuso
A nutter who ran around Scottish Stadiums like an extra from Planet Of The Apes, a discussing vile little man who played to the Hun hoards, great player , yer havin a laugh.
Awe naw. Ok spoon feed me then. Can you tell me how being a cheerleader goes against the summary of the social mission statement?
“Celtic is a club for everyone who believes in football as a medium for healthy pleasure, entertainment and social integration. The Club always has been and always will simply aim to be the team of the people.”
The realisation
–
A financial conversation was still ringing in your ear
With all the facts and figures moving in low gear
Then you have a revelation as everything becomes clear
You realise you are thick.
–
You call the nearest phone in quickly put it on a blog
You’re drowning in information the page begins to fog
Then you have a revelation call BBC watchdog
You realise you can’t swim
–
All this talk of money who to buy and who to sell
Interpretation of the figures as you input to excel
Then you have a revelation you’re not in heaven you’re in hell
You realise you are dead
Honest Mistake – did ye have to bite?! :-)
T4
antipodean red
10:40 on
3 September, 2013
Great talking to you,pal.
Politics schmolitics.
P.S. 34 year veteran,masel.
We’ll see shortly what the business of Celtic looks like to 30th June when the annual report is issued.
The old Craven A fag packet (more accountants recommend Craven A than any other fag packet) reckons turnover in excess of £75M, a record for the club on the back of Champions League last 16.
Profit will be bolstered by the sale of Ki, and ought to exceed the record £15M posted in 2007.
Most of the profit will fall to cash, giving a net at bank around £10M.
These are heady days.
Moreover, with the sales of Wanyama, Hooper and Wilson falling after the year end, together with Champions League qualification once again in 2013/14, we can look forward to this coming year delivering even better financial results than 2012/13. Turnover will be down year on year because of the recent season ticket price reductions and the probability that we won’t qualify from the UCL group we’ve been drawn in, but the gains on player sales will dwarf that drop.
Pick a number north of £30M and that’s what Celtic will have net at bank next June, barring some abrupt and spectacular change of spending policy in the January sales.
Celtic’s problem is now crystalising. It can be summed up as follows:
How on earth do we use this money to best effect?
Celtic need to ensure that the club’s 5 and 10 year outlook is built upon the decisions made in the coming week and months.
We’re in new territory.
Serenity.
It’s good to see you back.
Tttt.
Hook line and sinker.
The blog is quiet today anyway.
The Honest Mistake loves being first
Say please and I will do it YET AGAIN !!!
HH
tonydonnelly67 @ 11 18 .
I’ll have a laugh .,too
I think Gattuso was a great player.. A great defensive midfielder with a fabulous engine and a real desire to win .
2 Champions League winners medals .
1 World Cup .
2 Serie A titles..
1 Uefa Super Cup
I met up with Morrisey23 at last nights Celtic Supporters Trust meeting. A note of the meeting will appear on CST web site in due course.
Of immediate interest to CQN will be that CST agreed to promote Canalamar’s resolution re requesting a UEFA investigation into the process for awarding the UEFA 2011 Licence to Rangers.
The resolution will be made avaiable from the CST web site which might help get the message out there and with it the extra signatures required (although time is running out. )
On that point of signatures it transpires Celtic have aggregated the shares of the signatories in the past to get an average over 100 so if you thought your shareholding was too small to sign up then give it a go now.
Morrisey will no doubt post from his practical perspective of getting the signed resolutions in to canalamar and him and then to Celtic.
A couple of additional points:
John Paul Taylor the Celtic Support Liaison officer was there to explain his role and field questions and note issues for action raised by the floor. One of the key points to come out is that John Paul’s role is to act as much if not more from the support perspective than the Club’s. He clearly sees many issues from a supporters’ perspective (not surprising him being one :))and will be good news in terms of improving the services Celtic offer.
The second point is the amount of work the CST put in on behalf of representing supporters. I take my hat off to them. As long as Celtic are a PLC the way of getting attention on issues that really matter, for all its difficulties, is via the AGM. OK some points will be outvoted by the larger block vote, but at least answers can be obtained through the process.
Some lessons will be learned from canalamar’s efforts on the process for doing so, but supporters who are shareholders do have this route with the CSWT’s help for making their concerns known.
Final reminder on the resolution itself. At the end of the day it is about trying to make the SFA more accountable. They do as they please because they can. No comebacks. They have to be made to realise that their decisions do affect club’s income and must be justified openly, not hidden away in obscure agreements.
So whatever thoughts you might have about motives, this is the prime one and it surely is one every Celtic supporter can get behind?
The Battered Bunnet
11:22
Very good post, amigo. We are in new territory, but most clubs are, or will be in the coming 12 months when spending cash you don’t have is going to become a teensy bit more difficult for football clubs.
Usually, in business, when this happens, cash becomes king.
What say you?
When you think of it, the Huns have an obsession with Italian and Spanish midgets.
Maybe they look upon them as circus acts in their superior cultural world?
Awe naw pretty please.
You might need a bigger spoon than you’re used to though as it will be difficult to convince me that being positive about Celtic and the progress we’ve made in the past twenty years, and positive about the direction of Celtic would somehow contravene the social mission statement. Give it a go if you’re convinced.
Gatuso was a thug and a corner boy, played in teams as an enforcer not my type of player in the modern game, kinda like Stiles, Hunter, Greig, blooper merchants, Greig won the Cup Winners cup, that make him a great player, aye yer right you are having a laugh.
Awe_Naw_No_Annoni_Oan_Anaw_Noo
Alternatively Evertons -£3M over 10 years suggests that the best way to overachieve is to buy well scouted players early and cheaply and sell at profit.
Thus you get players that maybe a little inconsistent but are definitely higher quality than you’d get from a fully developed player within your budget.
Hopefully as each year (and transfer profit rises) you can increase your budget accordingly ie £15M for a 20yr old.
Auldheid, thanks for the CST feedback. Like you I am a fan albeit not a member.
HH
TBB
good post, I think most Celtic fans agree we are financially sound… What we do with money is another matter…Interesting times ahead
South of Tunis
The Milan team we beat the last time they came to CP
1 Dida
8 Gattuso
9 Inzaghi
10 Seedorf
13 Nesta
18 Jankulovski
21 Pirlo
22 Kaka
23 Ambrosini
25 Bonera
44 Oddo
Stronger that the current team?
BSR @ 10;35,
Great idea, nice long warm day for it, would join you but as I don’t know how to cast a Net it could be a waste of time.
If you ever get the chance popping down to Bencombe Farm and picking up a wee barrell of Rebellion to stick in the stream is recommended, warms you on the side “may develop a chilled haze” ….. too true.
Hail Hail
NegAnon2
Back in Canada and caught your reply regarding the Celtic tops at Harthill – Thanks.
I was thinking of something sinister involving unsuspecting Celtic supporters (given the location), and surprised that the shrine has not been vandalised given your explanation.
Yes!……….a tragic incident.
God bless the family involved.
Teuchter ár lá
THM
quite simply its about non exclusion and tolerance
You can´t be dismissed as a Celtic fan because of your colour, religion, sexual orientation, politics, physical capabilities etc.
The green hun cheerleaders on here do it continually for having a difference of opinion with their own.
HH
And accusing people of being green huns doesn’t exclude them?
TBB – I’ve missed most of the discussions on dividends, but with the perceived storage of cash, is DD trying to make the club look attractive for prospective investors?
If we could get out of Scotland, then I’m sure he would try and increase his shareholding, but as it would appear we are stuck here, maybe he’s wanting to dilute his shareholding instead?
T4laymanCSC