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.
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Frank McCarron rip
https://www.celticfc.com/news/2021/november/09/former-celt-frank-mccarron-passes-away/
HH
HOT SMOKED on 10TH NOVEMBER 2021 9:17 AM
BIG JIMMY on 10TH NOVEMBER 2021 7:30 AM
Good to see you in such a positive frame of mind Re Wee Rocky.
Good mhan.
…………..
Thank you for your kind Post ( see above) on the previous Thread. I have just read your Post this morning ( Thursday) as I was heavily engaged in Drinking lots and lots of Beer all day on Wednesday.
LOL
Stay safe and well my friend.
HH
Good Morning Celts,
See Ange is still in good form, love the way he’s focusing on Celtic amongst all the Ibrox speculation.
Still with Steven Gerrard heading to Villa Park the SPL season takes a huge twist.
Noticed Gio Van Brockenhurst hasn’t dismissed the notion of managing our old firm rivals.
A hugely experienced footballer at the highest level.
With the prospect of UEL football at the moment the prospect of UCL football next season and Mr Gerrard getting his multi-million pound move to a huge EPL club, the Ibrox hotseat has got to be tempting.
We shall see…
Hail Hail
CAMUSBHOY on 10TH NOVEMBER 2021 2:37 PM
Hi All, with all the sad news recently and the funeral adverts that keep appearing for me I’ve not posted for a while.
My news isn’t the best either currently attached to a machine in the Beatson for my first treatment for Lymphoma
At least I’m enjoying the football this year and yes I know we are not the finished article but it been like a breath of fresh air compared to the last couple of years
……………………
May I also pass on my best wishes to you, and get well again ASAP!
HH Mate.
Big Jimmy @ 8:02 am
You are welcome.
Also, you just need to say ” I was drinking.” The ` lots and lots all day` is a given. :-)))).
All the best,
J
“JIMTIM on 10TH NOVEMBER 2021 8:39 PM
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”
How tall were the Dundee defenders who failed to stop Kyogo scoring his header?
Monday this week…I must have had about 15 Pints of Beer.
Tuesday…a Day aff…in the hoose waiting for Rocky Bhoy to come home.
Wednesday…Another 15 Pints…
I might take the day aff today….then again ?
LOL.
Cheers mate.
HH
My last Post at 8.56am was for HOT SMOKED.
Apologises.
The ONLY time that I drink is when Im alone…or with someone !
LOL
HH.
Big Jimmy
15 Pints? Are you on a diet?
:-))
Right, not a bad day for a wee bike ride.
Cheerio for now.
.,.
CHAIRBHOY on 11TH NOVEMBER 2021 8:09 AM
Good Morning Celts,
See Ange is still in good form, love the way he’s focusing on Celtic amongst all the Ibrox speculation.
Still with Steven Gerrard heading to Villa Park the SPL season takes a huge twist.
Noticed Gio Van Brockenhurst hasn’t dismissed the notion of managing our old firm rivals.
A hugely experienced footballer at the highest level.
With the prospect of UEL football at the moment the prospect of UCL football next season and Mr Gerrard getting his multi-million pound move to a huge EPL club, the Ibrox hotseat has got to be tempting.
We shall see…
Hail Hail
____________________________________________________________________________________________
CHAIRBHOY
Who are these ‘old firm rivals’ you speak of?
Smallest team in England are Manchester City. They have a better win % from aerial contests than Aston Villa or Watford, the league’s 2nd and 3rd tallest teams.
Liverpool have a below average sized team but heading stats are dominated by Van Dijk.
-Study 2020.
Height matters at an individual level it seems not across team. I’m hopeful a towering 6ft 5in Chris Julien will plug our leaky sieve from cross balls.
HH
For the feint-hearted:
Hart – 6′ 5
Ralston – 5′ 10
Juranovic – 5′ 8
Julien – 6′ 5
CCV – 6′ 1
Rogic – 6’2
Turnbull – 6′ 1
McGregor – 5′ 10
Jota – 5′ 9
Kyogo – 5′ 7
Forrest – 5′ 7
The closer to the opposition goal, the smaller we get…..
HH
Barkas is 6′ 5……just saying like
HOT SMOKED on 11TH NOVEMBER 2021 9:03 AM
Big Jimmy
15 Pints? Are you on a diet?
:-))
……………
I MUST be, as a up to a couple of years ago, I could drink 20/24 Pints of Beer in one session to the Pub.
None of which is very clever behaviour……sometimes I can be a CHUMP !
LOL
HH Mate.
R.I.P. Frank McCarron.
YNWA.
HH.
Does anyone KNOW the Kick Off time for Celtic v St Johnstone at Hampdump in the League Cup Semi Final
next week ?
Cheers.
HH
Big Jimmy
5.15pm
HH
MCPHAIL BHOY @ 9:07 AM,
You don’t like the term?
Not too found of it myself, truth be told.
However a lot of folk went to a whole heap of trouble to resurrect the old firm when Rangers died.
My preference is we forget about new Rangers and forge a lone path to make Celtic the best we can be, a top twenty European side.
However we seem to be stuck with the Five Way Agreement and the Old Firm Business model at the moment, so there you have it.
I think of it as our toxic underbelly or darkside, of course you must view it as you wish and use what linguistics you feel are appropriate.
Hail Hail
Hope this works. St Johnstone being a wee bitty naughty, methinks, having a dig at the mighty New Rangers.
https://mail.google.com/mail/u/1?ui=2&ik=42c0ee7929&attid=0.1&permmsgid=msg-f:1716125300866210511&th=17d0e6de6430dacf&view=fimg&disp=thd&attbid=ANGjdJ_vkn94cSjURk742ZhuLLUoV9W0vvQt52EaAUEQ1bW5SK6-BcAUE-6rRC4ecBKzfpX_8qmATC-SZ1g0rlZYMFIR_HpV6xurZFtBXY5xPf5Ul_Gx8tgGaK_RWyw&ats=2524608000000&sz=w1366-h625
I am 5ft5.
scored loads of headers. didnt defend though, and never played full back.
being tall is over rated.
Rugged, tousy scrap between the Rogic-less Socceroos and Saudi’s green falcons.
Ref is really letting some nippy clashes play on in rain-soaked aquatic conditions.
Amazing energy from the Socceroos, esp Martin Boyle; he’da been a good signing in our annus horribilis. Works his ring off, as does Jackson Irvine in midfield.
0-0
Slippy G at Villa, official
I’m 5’8″ and – playing amateur at CB – was often able to read and outjump big lumps playing striker. Always good with my noggin clearing spec high balls pumped into our defences.
Positional play and reading flight of ball useful…to a point.
Weren’t Barca’s Iniesta and Puyol era side not a rather short-arsed cohort ?
Sky announcing Gerrard gone,reporter stating his record 1 OUT OF 9 not as good as thought stating its a risk for the CEO.
McAllister and Beale also.
BIG WAVY on 11TH NOVEMBER 2021 9:48 AM
……………
Cheers mate.
The reason I asked was that on the same day, Ive to get Taxis to and from getting my FLU Jab and my BOOSTER….so I was a wee bit concerned if my appointment time clashed with kick off time etc ?
HH Mate.
He’s always been a villain
Bye! por cierto
quadrophenian on 11th November 2021 10:07 am
I’m the opposite, I’m 6ft played in the middle or the wing, only ever headed the ball if I had no option :-)
I was often put back to defend corners etc due to height but was absolutely useless at it, football as it sounds should be played on the deck.
Didn’t Slippy once say he’d only join Liverpool, Arsenal or Man City because Rangers International was bigger than all other English clubs? He’s desperate to join Villa as a stepping stone to Liverpool. That won’t happen.
See Sky are reporting the Aston Villa guy as calling them “Glasgow Rangers”, how much does he know about Scottish football then!! :))) por cierto.
Gerrard…good riddance to the NED.
This CHUMP continued to back Morelos at EVERY turn…NO MATTER what Morelos was doing on the pitch.
Im also glad that his backroom Hun guys have went with him…if thats also true ?
HH
Slippy sliding away……..
OK, I’m with Ange, no more looking over the fence, no chance!! :))) por cierto
Will the Huns go back for McCoist….now that would be even funnier if they did ?
LOL
😂🤣😂🤣
MANY Hun fans will be SICK this morning, including the Scot media huns.
LOL.
I think they will go for Ferguson….NO…not Sir Alex.
” Cash and Carry” Ferguson…the Hunnishness in him just oozes out….another Hun NED.
LOL.
HH