Celtic net financing cost £201k (interest paid minus interest earned), Newco net finance cost £2.997m, that’s 6.25% of their income paying for previous season’s spend. This percentage is a key metric for distressed companies. David Murray’s Rangers paid 7.7% of their income in finance costs 19 years ago. That was clearly unsustainable. Rangers subsequently converted loans into shares (sound familiar) but were unable to apply a tourniquet on the losses, which eventually led to liquidation. Newco are walking the same path.
Celtic and Newco both had a reduction in income, minus the reduction in costs due to the lack of fans, of around £9m. Newco state this net loss at “over £10m”, which gives an indication of what they will present in reporting to Uefa.
If we correct the reported losses for the 2020-21 exceptional items, Celtic’s loss is reduced to £2.3m, Newco’s to £14.5m. The sale of Bayo and Hendry more than covered that trend loss for Celtic, leaving income from the sale of Edouard, Ajer and Hendry for new signings. Newco’s entire transfer income was £1.7m. They pay 75% more than this in interest.
When I started writing here about Asset Management, the moans came back about becoming ‘a selling club’. If you are not selling players at the right time, for the right fee, something else is picking up the pain and you are underachieving.
Signing the finished article is more likely to help you succeed in the short term (although loanee Shane Duffy was 28 when he arrived), but the return on your investment from players purchased at that age is likely to be low. They have been around long enough for their perceived values to be fixed. When performances drop, you cannot move them on at a profit and need to cut elsewhere to replace them.
Sales from a hugely underperforming Celtic squad took in £34m transfer fees this summer. 20 times more than Newco’s £1.7m from a title winning squad. And let’s be clear: before the summer they acknowledged they needed to sell, an admission their accounts confirm.
There is a trade-off: the instant hit or a more strategic play. Strategic players win more often, that £34m has been transformational to what Celtic have been able to do this season.
How much of your income to pay to service debts inhibits what you can spend going forward. Not all spending is equal. Some will perform long-term, providing reinvestment funds after the player has moved on. Others not so much (we have been there, think of the £6m signings of Sutton, Hartson and Lennon and the chasm when they aged).
Dave King clearly felt slighted by the tone of Newco’s accounts and responded in The Herald today, when he confirmed his £5m loan, plus £832k interest, had been repaid a little over a week ago. There was an insistence that despite King, Douglas Park and others (let’s call them the Concert Party) saying they would provide interest free loans to the club without taking security, the South African authorities would only allow him to give Newco loans if they were at a commercial rate of interest – 8%, if you don’t mind.
I have no reference point for this kind of insistence. He does not elaborate on what “authorities” we are talking about, but he has a bit of form in South African, so is perhaps wise to not be too specific and do what he is told. He also reiterated his pleasure that “the authorities” allowed him to make the loans unsecured. They sure are involved authorities.
The secured, interest paying, loans from others in the Concert Party clearly irk King, always a man of his word.
322 Comments- Pages:
- «
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- »
KINGLUBO on 10TH NOVEMBER 2021 8:07 PM
Not so sure Stevie is a hUn, he’s only interested in Stevie G
The strange thing about Sevco managers coming in from a non ‘Rainjurrz’ background, is the way the toxicity of that environment seems to transform them . Then when they leave , they seem to recover and become reasonable human beings again .
Although Stevie G is possibly the exception since he exhibited some very hun like traits even before his ‘Rainjurzitis set in .
luvvin narcos mexico season 3
Lampard for Sevco?
CAMUSBHOY
Good luck with your treatment 👍
BIG WAVY @ 6:29
aboutceltic | Eddie Howe on Celtic
“I couldn’t get my team to go for a host of different reasons.”
“I didn’t want to take a job of such size, knowing the job needing to be done, on my own.”
“I knew what was needed. So there was no change of mind, I was open and honest with the club.”
—–
Hope this ‘puts to bed” all the nonsense that was talked regarding PL & the board crushing the appointment of Eddie Howe. The rush to the beatification of Dominic McKay ran in parallel and was also misplaced.
The delay was obviously down to waiting on a decision from his backroom staff. No doubt there was much negotiating – it looks like Eddie himself was up for it. The torching of Peter Lawwell’s house and the Bigotry Show at George Sq would not have helped persuade people with young families to cross the border, as I said rather more forcibly at the time.
Not Celtic’s fault and no dithering….filed away.
Startinarumourcsc
BURNLEY78 on 10TH NOVEMBER 2021 8:15 PM
That’s some fixture list, can see why he would run like hell given the performances of his team
Just read an article that ange could be interested in two Japanese bhoys . 5ft 7 and 5ft 8 . If true this is getting beyond a joke . Are we never going to learn .
Camusbhoy.
Hi mate.read your post,it was just to say post anytime.Celtic is 24/7.you know how to say your bit,don’t be a stranger.there are Celts on here from all over the planet.sumdi will answer.:-).Take care.
Hail Hail
Who wants it, who wants a Rewind?
https://www.youtube.com/watch?v=PTOYsn8IBLg
Gerrard Knows he wouldnae win 2 Leagues whatwith Sevco nonsense.
Last Season for me – its rigged.
Bury them once and for all.
CAMUSBHOY
All the best good sir.
HH!
Camusbhoy the very best of luck to you mate.hh
JIMTIM on 10TH NOVEMBER 2021 8:39 PM
Eh? what height was Jinky?
Do you not trust the manager?
George Galloway’s views have degenerated from what?
The Labour warmongering party who helped their imperial masters across the pond to spend 20 years blowing up half of the world?
The Labour party who happy claps apartheid and genocide out in the desert for 70 years?
The Labour party who’s present leader tried 48 times to overturn the will of 17.4 million British people who voted for Brexit, to escape the clutches of EU unelected bankers, who right at this minute, are trying to destroy the country of, Poland, because Poland gives primacy to its Roman Catholic heritage, and refuses 100% to jump into bed with the EU’s woke bullshit agenda?
The Labour party who last week, just managed to lose the data of 600k of its members to a dodgy company from the desert?
The Labour party who spent 5 years twisting their steely knives into the back of their socialist leader, Jeremy Corbyn, because he wanted to better the lives of the 99% of British people including investing £78 billion ‘directly’ into the decrepit city of Glasgow, which now has more rats than it has people, after Stugeon’s SNP cut a deal with Boris and Libdems to give Tories enough votes for a freezing cold winter General Election in December 2019, an election were Freemasons agreed to rig postal votes and oust the only NON, Freemason MP, Jeremy Corbyn, Dominic Raab MP, and BBC Kuenesburg on BBC “Politics Live” laughing at how badly Labour had done in ‘postal votes’ 2 days before election had taken place, and this episode of “evidence” of vote rigging was removed immediately from BBC iPlayer so that it couldn’t be used in evidence?
Yeah, George Galloway is way beneath all of those swamp creatures. lol ☺
3sy
Lampard.thought that narrative interesting.
Few calls on phone in referred to it.
Macinnes muted but he knocked them back.
All good fun with a meeja kackin itself to ask/say right thing
HH
Joe Exotic
“and not one androgynous arsehole on the MSM has uttered a single word about it ”
————————————-
I have not researched widely on the issue but surely all arseholes are fairly androgynous/ indistuinguishable, after all they serve the same function.
If only the CQN blog had a proper waste disposal unit 😉
PETEC on 10TH NOVEMBER 2021 7:09 PM
Listening to Clyde – its a riot.
As Gerrard is likely Tchaikovski, He is getting out of Dodge ASAP.
It will be interesting if he becomes a Sevco helper Paying over the odds for any of his ex players. Somehow I doubt it!!!!
——–
If he wants to take the next step to Liverpool he had better cast his net further than Ibrox because messrs Kent, Morelos, Aribo et al wont cut the mustard.
JOE ORDINARY on 10TH NOVEMBER 2021 8:46 PM
George Galloway’s views have degenerated from what?
=======================
From someone who may have been a socialist to someone who said he would work with the torries. No friend of the miners or the real working class of scotland
CELTIC DAWN
Indeed. Work with Farage as well.
As someone else said, some good reading on here then boom!
FRITZSONG on 10TH NOVEMBER 2021 8:25 PM
JOE ORDINARY on 10TH NOVEMBER 2021 6:56 PM
When parliament adjourned for the 2010 election, Chris Mullin (author of ‘The Birmingham Six’), said that a large number of Labour MPs made really good speeches to the PLP. But easily the most outstanding and most inspirational was George Galloway’s.
Mullin’s verdict on George was, ‘Absolutely brilliant, but absolutely unpredictable.’
I don’t know if George had ‘front bench’ ambitions but what a fighter he is if he’s on your side.
Well said. 👏
Not a single MSM journalist or, MP, UK/Scottish, will go face to face with Galloway, because GG doesn’t play by they’re rules.
Must be the hat that frightens them?
Maybe he keeps his cat under his hat? 😉
AN TEARMANN
I’m wondering if the Sevco board will come up with a “name” as their next manager to keep the fans on board
Would get Lampard on the managerial merrygoround again
CamusBhoy ye are in Excellent hands. Mumski was & mair so Dadski now is being taken care of very well at the Beatson – Celtic are concentrating on the Best Celtic can be – Ange’s team is gonnae get a result in Germany methinks.
Stay Strong. Dad has been put on a new Immunotherapy drug (he was likely to be dead by now). He is Bonkers and Thankfully He is still here.
He hates being stuck in the house.
I’ll say a Little Prayer for you.
CELTIC DAWN on 10TH NOVEMBER 2021 8:52 PM
JOE ORDINARY on 10TH NOVEMBER 2021 8:46 PM
George Galloway’s views have degenerated from what?
=======================
From someone who may have been a socialist to someone who said he would work with the torries. No friend of the miners or the real working class of scotland.
••••••••••••••
He voted Tory as that was favourite to win the seat of his constituency, and voted for his own party on the list vote.
Alex Salmond did the same routine, only he voted for the party who tried, and failed to jail him, then voted for his own party on the list. He failed to get elected as well despite massive MSM coverage, compared to Galloway who was completely suppressed by MSM under orders from the Lodge.
Both didn’t get elected because its ‘plants’ who count the votes.
Rigged voting against folk that are hated by the establishment and MSM swamp. ✌
SETTING FREE THE BEARS FOR RES. 12 & OSCAR KNOX on 10TH NOVEMBER 2021 8:49 PM
Joe Exotic
“and not one androgynous arsehole on the MSM has uttered a single word about it ”
————————————-
I have not researched widely on the issue but surely all arseholes are fairly androgynous/ indistuinguishable, after all they serve the same function.
If only the CQN blog had a proper waste disposal unit
Yeah it would be utilised against you on day one. 😉👍
ONENIGHTINLISBON on 10TH NOVEMBER 2021 8:44 PM.
You really I mean the never to be repeated jimmy Johnstone , come on pal . With regards to ange I’m not going overboard about him yet , it’s only a couple of weeks ago we failed to beat again . I really really want ange to be a success ,but as I say some are going overboard .HH
PETEC on 10TH NOVEMBER 2021 9:04 PM
CamusBhoy ye are in Excellent hands. Mumski was & mair so Dadski now is being taken care of very well at the Beatson – Celtic are concentrating on the Best Celtic can be – Ange’s team is gonnae get a result in Germany methinks.
Stay Strong. Dad has been put on a new Immunotherapy drug (he was likely to be dead by now). He is Bonkers and Thankfully He is still here.
He hates being stuck in the house.
I’ll say a Little Prayer for you.
Wow! What’s going on with who? What?
Jesus, Mary & Joseph, please help. 🙏 🚨
Livingstone
People in England think the Spl is a farmers league.
JOE ORDINARY on 10TH NOVEMBER 2021 8:46 PM
George Galloway’s views have degenerated from what?
=======================
From someone who may have been a socialist to someone who said he would work with the torries. No friend of the miners or the real working class of scotland.
•••••••••••••
He voted Tory
======
First rule of fight club. You never ever ever ever vote Tory, no matter the circumstances
While the sevco fans are now desperate for Van Bronkhorst to be pursued, John Cross @MirrorFootball says Rangers have enquired about former defender Russell Martin taking over from Gerrard…apparently did well at MK Dons and doing reasonably well at Swansea.
I believe it suits Sevco to let Slippy and his ‘hauner’s’ to go. They, at a push will get a 3mil compo, relieves them of high wages for the Sevco backroom, (need the dough).
Bring in Callum Davidson / Tommy Wright / Deek McGuiness (insert any other Hun name) at a vastly less financial outlay.
What’s not to like for Mr.(Jabba)Parks not to like.
THEY’RE SKINT.
HH
Brian
Be what Celtic can be.
Ange is the Strong Man methinks.
Get even better Kyogo’s in the Squad.
We will need a Squad.
Nir has been patient but he is a player.
Tattoos – Why?
Tattoos are so permanent.
What if you change your Mind?
Thanks again for all your thoughts and prayers, was in for 8 hours but the time passed quickly thanks to the wonderful nurses and doctors.
Good news is that it’s limited to the one place and hasn’t spread so should help get a successful outcome fingers crossed
Days like today restore the faith in the genuine Celtic family we have here on CQN and remember you will still be a Tim tomorrow
HH
GRRRRR
.
I want a Non Tattooed unvaccinated Celtic Team going for as many Goals as possible against Every and Any team.
https://www.youtube.com/watch?v=c9mGtDGzoSA
camusbhoy
Glad to hear things went well today at the Clinic.
Prognosis sounds good too.