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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An Dun
16:30 on
2 September, 2013
He did underwrite the last share issue. My minor gripe with that was it was oversubscribed, meaning he didn’t have to take all the shares he applied to, but did anyway.
BRTH
hope you get fixed up ok..more power to your elbow..the good wan lol h.h
another team assembled using free agents…
Dzhanaev
Scharner Bramble Onyewu Obradovic
Stankovic Murphy Hitzlsperger Hunt
Milevsky Marica
Weeminger
Yes, he did underwrite the share issue – he did get shares in return though. My point is Desmond will never sink money into Celtic. It will always be an investment. I’m not criticizing him for this approach, it’s his money to do with it as he pleases.
I also believe we’re much better off with him at the helm as we would be with most other investors. But just don’t for a second think that Desmond would write out a blank cheque to save us if we ever got into real trouble. He’s no safety net.
An Dun
I can’t say for sure if DD would help us out, but given they way he insists the club is run that will never happen, one thing is for sure, we the Celtic fans would.
As we don’t need a safety net………..fiscal prudence already in place thank God………which DD has made sure happened, this is moot.
In my opinion DD would step in for Celtic, but his financial and management savvy will in effect hopefully never require such a step.
In my opinion, of course.
HH
UEFA financial fair play mah erchie… 86mill fur Bale an 20 mill a year wages!!
Yeah mate 5 of us booked. Heard your ticket was safe.
An Dun,
DD is a mystery to me, never at CP unless its a UCL game or a trophy winning game, great for him, hobnobing at Uefa’s top table, bet he has made some great contacts though, as major shareholder/owner its no wonder he gets called the absentee landlord.
gebhoy
Afternoon all, just a quick question I’m hoping someone can clear up….
I’ve noticed a few posters suggesting we could still sign free agents and players that may be released today by clubs in England. However it is my understanding that the player in question must be a free agent before our transfer window closes, ie if a player was released on Saturday he could sign but if he is released today he won’t be able to sign for us until January. Anyone know if I’ve got it wrong?
Cheers
How much did we pay out in divedends?
For Tynecastle or Amsterdam?
Gebhoy,
I’m not sure magnates such as DD get to spend as much time as they would want at any of their concerns, do they?
These people tend to have schedules filled up by others……at least the busy successful ones do…..
HH
Carlton Cole is a free agent…
TBB– you scurrilous rumour monger you, I have never injured myself in a state of inebriation!
Nearly killed myself on the back of a Kawasaki 750cc thing when drunk but never injured.
This injury comes about in predictable circumstances in that I was yattering away to teenage son No 2 whilst not noticing the raised traffic control thingy at the top of John Street outside Strathclyde Union!
As a result, the inevitable trip put Tom Daly to shame in its spectacularness– so much so that I even stopped talking after swearing several times and mentioning the name of the one man who could have saved me— but Jesus Christ was off on other more important duties!
Anyway a strong drop of the Amber Nectar– one of ACGR’s medicinal ones would go down a treat at the moment!!!
gebhoy
My opinion of Desmond is that he’s a callous business man. Highly successful and obviously has some emotional attachment to Celtic. Is it as strong as that attachment the posters on this site feel ? In my view no. Not even close.
Morrisey, I am intrigued as to when you may have heard me sing that number? Lol
gebhoy
I think DD was extremely well connected before he ever set sights on Celtic. I doubt we added much to his private number list.
I never get the point about an owner/major shareholder being in attendance. I doubt it correlates in any way with success on the field.
I’d let the man play golf if he wants and prefers that pastime.
Good afternoon CQNers.
Does anybody know of short term accommodation for rent in Glasgow City center or close by.
Myself and a work friend have a course to attend in England and then have some meetings in Scotland before going back to England for exams.
So Instead of flying back to Turkey I want to just stay in Scotland a wee while.
I need time to study and don’t have a chance if i go home for that time…..
The dates are 13th of September till the 22nd of September.
Cheers for any help.
i’ll say it again we could have signed 2 fletchers and we still wouldn’t have been allowed to win the league that season, in fact make that a half dozen fletchers it still wouldn’t have changed the outcome, sad to say the cheats will be back with the same masonic crowd in the sfa in charge. Scottish football will really be finished then
Your article gave credence to a posting of mine earlier today that implied that in the matter of transfers, the wheelings and dealings of agents and sundry others should be getting very closely scrutinised.
Thanks to those who sent good wished for my big mate Wolfgang.
I’m sure I’ve got some of this preference share cheques lying about somewhere. My £600 worth framed and hanging in the kitchen, white tiles with green hoops above the work surfaces. Really pissed off the tiler, who was a rabid Hun but hey ho………..
gerry123
16:53 on
2 September, 2013
Sorry, that one won’t wash.
If I remember correctly, all that separated us from cheats was the failure to score a single goal in one our last two matches.
Even P.L. later openly admitted that he had made a right erchie of that particular episode.
SFTB / An Dun,
The only time i raised an eyebrow was when i saw his interview on the hun demise, an i instantly thought oh aye! Other than that he is never here and never talks about Celtic.
gebhoy
Any rumours on possible free agent consideration?
Istanbul……………..
there’s an old place along Edmiston Way that’s available, space won’t be an issue but it is delapidated and the roof needs a bit of work…………………
HH
gebhoy
16:47 on 2 September, 2013
Tynecastle you owe me a few pints. Gave him a few blue diamonds to seal the deal.
An Dun @ 16:30
I know DD has no plan to donate money to Celtic and is a share-holder to make money.
I never said he is or would be a sugar daddy.
Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma @ 16:50
Are you not aware you are an internet sensation on YouTube?
Quotes that raised my eyebrows from DD;
” “Rangers is a fantastic club with a great history,” he said. “With the support that they have, they will come back.
“They will, in not too long a time, be back in the SPL. I have no doubt about that.
“They’re needed for Scottish football because of their following and the size of the club and especially their history.”
Ahem……….
Lennons Passion,
C ye there!
RE 1/9/13 Part 2
Houl yer wheest ‘ 17:49
I agree. Posting on-line is the first stage of change but no changes are made without real action.
I once again urge Celtic share-holder to read this resolution:
http://thecelticnetwork.com/resolution.pdf
If they like it then to print it off; sign it; scan it then e-mail it to
canamalar@yahoo.com
maestro-number8 @ 21:30
@1254125
We’re almost at capacity for the @StanPetrov19 charity match! http://www.celticfc.net/charity/ Don’t be disappointed, get your ticket now!
Margaret McGill @ 5:29
“How do you gauge success?
Shop windowing EPL fodder
Nice turnover
Last 16 in the champions league if youre lucky
I wonder what the huns are daein?”
gebhoy @ 14:02
Agreed. Also actions speak louder than words.
Final word from me on pref shares.
When you go out and try and raise money in this way, you have to issue a prospectus. In this propspectus you offer a legally binding return on the investment made.
Celtic cannot unilaterally decide not to pay the dividend. Shareholders can agree to waive the dividend, or receive further shares in place of cash.
Thats a decision for each individual shareholder. The information on what % of shareholders waive cash or receive shares instead, will be available from the club and without checking may be in the accounts
In simplified terms, and figures are only illustrative
A )raise £10 million via pref shares
Capital to be repaid £0
Annual cost of dividend £600 k
Total annual effect on cash flow £600k
B)
Borrow £10 million @ 2004 rates
Average Annual interest charge over 10 year term £300 k
Average annual cap repayment over 10 yrs £1million
Total annual effect on cash flow £1.3 million
Now i would need to dig out the prospectus to see the coupon shelf life ( dividend lifespan) It may be in perpetuity, it may have a fixed term, and their may be board option to vary dividend after a set period
However over a 10 year term, on £10 million , pref shares produce £7.2 million more cash for the club than a bank loan
Ole DD never got where he is today without occasionally lying through his teeth.
ReggiePerrinCSC
Morrisey….. Eh?
quonno
I think I am the only Celt left standing that thinks the Willo window was a myth, if PL has admitted it was a mistake.
As you outline, we cannot blame the refs that year we were in pole position with 2 games to play and no ref made a bent decision in either of our final games.
My view is, however, that buying Willo did not lead to a low and inevitable surrender of our title.
Yes, we surrendered a lead and eventually lost the title but people keep missing out the middle part of the narrative.
We surrendered a healthy lead
We won it back again with 2 games to go
We blew it at Easter Road, where our supposed saviour, Steven Fletcher was just as tired and ineffective in a Hibs shirt as all Celtic players.
I think WGS blew 4 in a row by trying to replicate the previous year’s run in with a tried and tested group of players. They could have done with a bit of refreshment in those final couple of games and could have had it from in house from Paddy McCourt if WGS could have trusted him. Just monday morning quarterbacking on my part, but just as viable a view as Steven Fletcher would have won it for us.
Funny we blame the Willo window for a lost league but
The Battered Bunnet
16:12 on 2 September, 2013
‘Ernie
Perhaps fholk don’t realise that the pref dividend was part of the cost of rebuilding Celtic Park, and creating the platform for Celtic to re-emerge as a respected European Football club.’
###
Perhaps.
And perhaps what people need to know, in order to get a fuller picture, is how much each shareholder receives annually from the club.
Sftb.
I think it goes back to moving forward from a position of strength..
Similar to this window imo..
But window shut so we get behind the players we have in..
Onwards and upwards.
Barcabhoy
17:04 on 2 September, 2013
‘Celtic cannot unilaterally decide not to pay the dividend.’
####
No. But they (ie the board) can decide how much, if any, profit is to be made by how they chose to spend the income.
So, put crudely, it could be either new signings or dividends.