It was around 5pm on the evening of 30 July 2003, Celtic were a couple of hours from playing a Champions League qualification game against Lithuanians, Kaunus, when an alert I had setup informed me the accounts for season 2002-03, the Seville season, were released. I had been tracking our accounts for years and the cumulative losses, accrued since Dermot Desmond replaced Fergus McCann as the largest shareholder, was alarming. We needed to break even and the Seville season would surely be the time.
Immediately I knew this was not a good sign. Celtic Park had been packed out all season and the European ties extended into May for the first time in over 30 years. There was also a massive splurge on retail memorabilia, as shirts, DVDs and Seville programmes were bought in their thousands. After years of consecutive loss, we could be hopeful of some black ink at the bottom of the accounts.
The ominous timing of the publication was for a reason; income was up but wages rocketed, Celtic were spending 10% more than income. Putting the information out hours before a Champions League qualifier was an attempt to divert headlines away from a harsh reality: Celtic were underwater. Again. We were borrowing to pay wages we could not afford.
So when Newco released their accounts late on Friday evening, you did not need to read them to know what they contained.
Last season was the first Newco competed in group stage European football, meaning this document would be significantly different from all previous Newco accounts. Income was up substantially at £53m (2018: £32m) but operating expenses also rose, to £58m (2018: £39m). This resulted in an operating loss before player transfer considerations of £4.4m. A transfer amortisation charge (don’t start me!) of £7.2m, finance costs and £3m from player sales took the annual loss to £11.2m.
A year earlier Newco predicted they would require £3m additional funding this year, that figure has been revised to £10m. The board also said a “material uncertainty exists which may cast doubt over the Group’s ability to continue as a going concern”. Which is disarmingly frank.
By contrast, Celtic went one extra round in the Europa League, but turnover was £83m, a full £35m more than Newco. Gate receipts were comparable: Celtic £35m, Newco £32m, as were media rights (including Uefa money), Celtic £16m, Newco £11m. The big gaps came in sponsorship, Celtic £10m, Newco £2.8m, Retail, Celtic £13m, Newco £4m and stadium operations, Celtic £7.6m, Newco 3.5m.
Newco remain, but their own board’s admission, in a perilous position, but there is a workable way forward. Revenue is within touching distance of operating expenses, shaving £5m in costs would get them there, and a significant portion of that would be taken care of if they stopped futile court actions against Mike Ashley.
They would have no money to buy players without first selling, but every other club in Scotland, bar one, is in the same boat and most manage quite successfully. Ambitions would need to be tempered; becoming the top team in Scotland could only be achieved through, scouting, coaching and generally good housekeeping. Of course, no amount of good housekeeping would make them likely to be the top team in Scotland, but they have more money at their disposal than Cluj have ever seen, so such dreams are not impossible.
There are also inordinate risks of running at such a loss. It is more likely that next season they will fail to reach the Europa League group stage than overcoming Celtic, significantly increasing the burn rate.
My guess is that Dave King will continue to bankroll losses for as long as he can afford. When he eventually goes, there is a chance a less flamboyant character will take control and deliver that harshest of medicines: living within your means. They have done remarkably well to market their chances: the brilliant city trader, the exotic Portuguese, the A-list celeb. There are surely limits to how many times you can resurrect failed aspiration. They question is, are Newco viable as perennial runners-up?
162 Comments- Pages:
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Auldheid
Just out of interest why have you blocked @DanielOConnel18 🤔
Strange.
AULDHEID on 4TH NOVEMBER 2019 5:47 PM
HENRIK1967 on 4TH NOVEMBER 2019 4:47 PM
If you were the victim of fraud would you say I can’t do anything about it because I need my wee maw and paw to take me to the station and hold my hand because without their support there’s nothing I can do about it.
Same scenario here with RFC and the SFA it’s an excuse so stop trying to protect Celtic football club ff ma we’re the biggest victims here so sort it out Celtic ffs.
Our club are complicit and have been since 2012 and if they weren’t they would be shouting fraud from the rooftops.
Get me the silver bullet and I’ll fire it, taps feet still waiting on pistol Pete.
Infinite patience leads to infinite results my arse.
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Indeed you are.
Ha Ha you’re raging because you put all your eggs in one basket and the club screwed you over. 😂😂😂😂😂😂
AN TEARMANN on 4TH NOVEMBER 2019 5:16 PM
Henrik 1967
I now see why you c&p other people’s work/posts,original thought appears to gave given you a miss.your comment the other night bout those who have had death threats was despicable
Raging. 😂😂😂😂😂😂
HENRIK1967 on 4TH NOVEMBER 2019 6:14 PM
Indeed you are.
Ha Ha you’re raging because you put all your eggs in one basket and the club screwed you over. 😂😂😂😂😂😂
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Nope. I’ve consistently taken the line that as we 4 guys represented a larger group of shareholders it is they who are being screwed.
The AGM will tell us how prevalent a view that is and it will not be me who is raging.
In fact I find it increasingly sad not only that Celtic have failed to meet the standards of integrity that I/we thought they were so much in pursuit of, but that many supporters don’t seem to give a toss that its all a front.
Oh I contacted morrssey23. He is fine, was instrumental in getting the new proposal tabled but is barred from CQN.
He did however say to tell you to stop acting like a fud.
AULDHEID on 4TH NOVEMBER 2019 6:26 PM
HENRIK1967 on 4TH NOVEMBER 2019 6:14 PM
Indeed you are.
Ha Ha you’re raging because you put all your eggs in one basket and the club screwed you over. 😂😂😂😂😂😂
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Nope. I’ve consistently taken the line that as we 4 guys represented a larger group of shareholders it is they who are being screwed.
The AGM will tell us how prevalent a view that is and it will not be me who is raging.
In fact I find it increasingly sad not only that Celtic have failed to meet the standards of integrity that I/we thought they were so much in pursuit of, but that many supporters don’t seem to give a toss that its all a front.
Oh I contacted morrssey23. He is fine, was instrumental in getting the new proposal tabled but is barred from CQN.
He did however say to tell you to stop acting like a fud. <<< 😂😂😂😂😂😂👏👏👏👏
henrik
that was a tedious read back,
can you not give it a rest,
Aukdheid, you have the patience of a saint answering that stuff.
SAINT STIVS on 4TH NOVEMBER 2019 6:32 PM
henrik
that was a tedious read back,
can you not give it a rest,
Aukdheid, you have the patience of a saint answering that stuff.
No problem I’ve made my points clear. 👍
Apologies Henrik
Morrisey’s actual words were “Henrik is nuts”. :)
Reporting Scotland covering semi-finals ; Celtic beat Hibs 5-2; Hearts were thrashed by a rampant Rangers. And we pay for this type of impartial coverage😵😱
AULDHEID on 4TH NOVEMBER 2019 6:43 PM
PSML. 😂😂😂😂👍
H1967- not wanting to get involved in your personal spats, given what you have been posting, is it not better to support the R12 guys,rather than ridicule them?
Paul67 et alo
2003? Rings a bell.
Since we are speaking of accounts. Oh Yes!
Given that the AGM seems to come around as often as Halloween, can some intrepid shareholder of this Parish answer me this? What is the total dividends paid out to shareowners since 2003? I appreciate that they are paid to the few and not the many but what is the total amount? You could always throw in the bonuses paid out to anybody else into the bargain. How much does our Board cost Celtic FC? That is the question.
https://bellacaledonia.org.uk/2019/11/04/on-dave-king-and-karl-marx/
I think our fearless “bastions” of the scoddish meeja will be havin’ a right laff an awe…………..
!!BADA BING!! on 4TH NOVEMBER 2019 7:15 PM
Believe me mate I’ve tried and I’m still trying although it might not sound like that but I’m frustrated this has been going on for years and my patience is wearing thin.
PRESTONPANS BHOYS on 4TH NOVEMBER 2019 6:52 PM
Noticed that too . When is a 3 goal win not a 3 goal win?
When it is achieved by a rampant , all devouring , omnipotent , seventh wonder of world , the mighty Rainjurrrrz!!
!!BADA BING!! on 4TH NOVEMBER 2019 7:15 PM
I’ve been backing them since 2012.
HENRIK1967 on 4TH NOVEMBER 2019 6:28 PM
AULDHEID on 4TH NOVEMBER 2019 6:26 PM
HENRIK1967 on 4TH NOVEMBER 2019 6:14 PM
Indeed you are.
Ha Ha you’re raging because you put all your eggs in one basket and the club screwed you over.
From @CelticBlog2018
If other clubs and their fans are getting cheated from Ibrox that’s one thing … Celtic fans will not tolerate a financially doped club cheating us. Our board will have serious questions to answer, and will face a serious backlash, if it happens.
https://thecelticblog.com/2019/11/blogs/if-celtic-lose-the-league-cup-to-a-financially-doped-club-therell-be-hell-to-pay/
!!BADA BING!! on 4TH NOVEMBER 2019 8:18 PM
For someone that wasn’t getting involved in my personal spats 🤔
Aye whatever….
Unfortunately, I reckon a huge number of our support are not that interested in Res 12 or the cheating of the hun in old and new form. Hampden will be packed with them when we play Sevco in December. How many would really be up for a boycott to highlight the way we have been cheated?
That’s not to say we should give up but it’s disheartening that so many buy into the “Old Firm’ garbage. Old Dermot loves the Gers and it appears many of our own support are happy they are back as well…..
Onenightinlisbon
I agree. Perhaps if we had a group of thousands of ST holders who were willing to take effective action we would be in a position to `persuade` The Board to at least explain their actions/inactions.
HOT SMOKED on 4TH NOVEMBER 2019 9:04 PM
There’s not a hope in hell of that pal. I know a lot of the younger supporters don’t see any point in it. They are happy, as I said, that the “Old Firm” are back…
Personally, I would love nothing more than to see them die for good and the bigot ridden cesspit closed down. I’m not so sure many of our own support would agree,,,,,
ONIL
I would !
Cheerio for now.
listen ghuys remember what mr desmond said, rainjurs are one of the great british institutions, with a big fanbase, now that is our ceo, I rest my case.hh.
Is it too obvious to state wrt to the massive increase in operating expenses at Ipox that all is not what it seems…. King has a perfectly functioning Bosch with expert drying capability … it is a criminal racket. Massive legal expenses , stupid beyond believe contracts for age and skill of the players …. London Met cops caught them last time , so my money is on International fraud cops next time round ….
BIG PACKY ,
Well,I never knew that.Did he really say that?You learn something everyday.
Turkeybhoy.,you know damn well he said it, but if your happy with that fair enough.
Desmond is not our CEO
When he said those things abour rangers he was in a hospitality tent at the masters(?)
He was blindsided by a DR reporter in front of dozens of people.
I personally wish he had have said something like….” rangers… they b#####… Cheating scum.. I’ll bury they tax dodgers again… Up the Ra”
Then just went back to his guests.
BIG PACKY 1 on 4TH NOVEMBER 2019 9:27 PM
listen ghuys remember what mr desmond said, rainjurs are one of the great british institutions, with a big fanbase, now that is our ceo, I rest my case.hh.
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whats up packy ? sentinal celts not giving you enough attention tonight ?
Nally81
I believe bid Desmondo was on the half way line at Tannadice when he uttered his remarks ,he did follow up with a statement that he wished we played rangers every week as we’d beat the aforementioned British institution , so at one level it was a get it up …. I could of course be getting this hopelessly mixed up
Saint Stivs, im not having a barney with anyone on here, this was the celtic site everyone on sentinel celts started out, some bloggers post on here and sentinel celts, we should be able to work in tandem, life is to short.hh.
Taking off for Manchester Airport at midnight. You ghuys staying home, if you pray, say one that we will all be safe in Rome and will return home safely. Hope to see some of you at the Mass in St Ignatius’ at 9 a.m. on Thursday.
COMICAL BILLY
IBROX NOISE/
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The £50M reality at Ibrox
One of our regulars on the site posted something which perhaps a year or two ago would have sounded like fantasy football, but in reality now seems quite feasible. It made us think, and related to certain worrymongering about the recently-released accounts.
First off, yes, it is true that technically speaking if this club doesn’t find £10M+ funding by the end of the season it’s technically true that it would go out of business, but that’s again like saying if a person doesn’t breathe they will die.
All companies need capital, Rangers’ issue is only the sourcing – that the club is not fully self-sustaining yet and requires the board to help fund.
That will happen. The money is not a problem.
However, the regular in question, relating to these accounts, made such a valid point and while no one wants to ‘sell the family jewels’ the fact is Rangers have megamillions on our hands in saleable assets, and money, truly is not an issue.
If we look at the most frugal-case scenario, then we have a pile of £10M+ players – Morelos, Katic, Barisic, Jack, Aribo. We don’t even need to go further – because right there is a critical minimum of £50M and with Steven Gerrard’s comments yesterday about the Colombian striker that goes up even more.
In short, our players give this club value, even more value than before, given the assets we have at our disposal. The squad, just like Celtic’s, is worth big money now, players who deliver both for their clubs domestically, in Europe and for their countries.
Meaning Rangers have plenty of cash at base level before we talk about generated revenue.
Rangers are not in any financial trouble – we are mired in litigation issues and we’re not quite generating as much revenue as we’re spending, but this is standard company practise and in no way reflects ‘admin 2’.
The only reason for ‘admin 1’ was our former ‘owner’ breaking the law withholding funds from HMRC.
End result – Rangers are becoming more and more valuable. We don’t have to sell anyone. But we do have assets who will fetch big money and in time put our coffers into the black.
Just like Celtic, who have generated £50M over the past two seasons with two player sales.
The sooner people stop scaremongering and focus on our valuable squad, a cup final, a challenge for the SPL title and progress in Europe, the better.
CONNAIRE12 on 4TH NOVEMBER 2019 10:27 PM
Taking off for Manchester Airport at midnight. You ghuys staying home, if you pray, say one that we will all be safe in Rome and will return home safely. Hope to see some of you at the Mass in St Ignatius’ at 9 a.m. on Thursday.
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petty daftness on here means not a lot.
you supporting the celtic, having shared yuor history on here, and your spiritual journey, and going to rome, i hope your safe , and every other celt.
enjoy the return.
keep it lit/
EK.. Could well be me that’s wrong but I’m pretty sure their golf guy pretty much ambushed him in front of people.
My point being tho, he would probably see it as beneath him to kick a dying tramp when he’s lying in the gutter.
He might of course have meant every word as well tho… I don’t know and I think the problem is that none of the fans know what he and PL think.
There should at the very least be an explanation why we have been advised to vote against the resolution at the AGM.
And ” we’re leaving it to the SFA” isnt good enough… It needs addressed now.
Genuinely curious… Other than being complicit, can anybody think of any other reason for the board’s actions re Res12, no matter how weak an argument/excuse?