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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Big Jimmy
I am sure Slippy G will come in with a Big Bid for his star striker Morelos (Daily Rangers ramorra)
THEBHOYFROMU.N.C.L.E on 11TH NOVEMBER 2021 10:17 AM
Slippy sliding away……..
………….
Very good young fella…that made me chuckle.
HH
bye bye rangers
stevies on the road again
on his way, leaving bears den
bye bye rangers
So breaking news, Gerrard is gone. On Remembrance Day. Today of all days. I know it’s inappropriate, but…bwa ha ha ha haaaaa
Scottish MSM busy creating positive sevco stories and I expect a few negative Celtic ones too- tomorrow’s news very predictable….ahhh bless 😂🤣😂🤣
Big George put up a video last night of Maeda.Surprised no one has commented.I know its not easy,what with more important matters,like Gorgeous George,taking up so much of everyone’s reading time,but have a look.
Guy would be a sensation for us.What an athlete.What a finisher,even loads of headers.
Good morning all from a sunny but chilly Garngad
Big Jimmy good to see you on Amigo.
D :)
Prediction.
Goodson away in January or sign pre_contract with championship club
Kent to Villa 4/5 m
Moreorless. goes bananas causing havoc everywhere.
Sit back and enjoy HH
TURKEYBHOY, missed that last night. Could you put up a copy/link? Would like to see it.
Mr Slippy G – 1 trophy from 9 what a loser.
Shows you the power of the Main Stream Media to create an aura around this looser.
D :)
Sorry loser
D :)
Always had my suspicions of the sports reporter on 5Live. This morning he said Slippy had nothing else to do in Scotland as he couldn’t top stopping the ten. Reckon any Scottish news comes straight from Wilson and co.
Good morning CQN
oh the banter
Tadhg@TadhgHickey
Another Englishman promising loyalists the world & then selling them out at their earliest opportunity.
Quote Tweet
Aston Villa@AVFCOfficial
Aston Villa Football Club is delighted to announce the appointment of Steven Gerrard as our new Head Coach. Purple circle
Refs like Dallas jnr , the latest pin up Walsh and a few others in the media will be gutted. They looked starstruck around Gerrard.
New manager, whoever he is, will want cash to spend, that won’t happen so would rule out (IMHO) and real top drawer candidates – reckon they will be looking to the likes of MacInnes for their next boss.
Interesting to see now who the replacement is – do they go for an interim to the season is out or appoint long term. Undoubtedly a significant upheaval in their football operations.
https://www.footballscotland.co.uk/spfl/scottish-premiership/rangers-losing-steven-gerrard-entire-22132885
Steven Gerrard taking Rangers staff to Aston Villa will decimate backroom and could DESTROY Ibrox Premiership title hopes.
– Now that’s what I’m talking about….lovely jubbly…
HH
Turkeybhoy- I caught the video, yep he looks the part, also looks as if he good handle himself in a rammy.
Be a great signing.
SFTB TURKEYBHOY on 11TH NOVEMBER 2021 10:31 AM
Big George put up a video last night of Maeda.Surprised no one has commented.I know its not easy,what with more important matters,like Gorgeous George,taking up so much of everyone’s reading time,but have a look.
Guy would be a sensation for us.What an athlete.What a finisher,even loads of headers.
—-
I just caught the video this morning and I don’t like judging players on youtube clips but I was worried that according the Rulebook (Scottish edition) he was offside for half of the goals and for the other half he committed a red card offence.
Seriously he looks an incredible player, awesome turn of speed
lest they forget.
Gerrard is head coach at Villa, not manager.
Much like Rodgers at Leicester I wouldn’t imagine signing players from the Spl for a team pushing for a top 6 place in the EPL will be that straightforward. A sporting director like they have at Villa will be looking for better value than he’ll get from guys have only done it for one season in Scotland.
BORGO67 on 11TH NOVEMBER 2021 10:42 AM
Refs like Dallas jnr , the latest pin up Walsh and a few others in the media will be gutted. They looked starstruck around Gerrard.
————————-
their gone as well, part of the backroom staff
worth a listen, pass a minute or so.
https://twitter.com/i/status/1458522127842357251
If Slippy is taking his backroom staff where are we going to get new refs from?
Power to the Paddys latest odds
https://pbs.twimg.com/media/FD290lOXIAcnPfV?format=jpg&name=900×900
MARTIM1980 on 11TH NOVEMBER 2021 10:27 AM
He might end up there but you only have to look at the made-up stories about Van Bronckhorst being “keen” on the ibrox hotseat to realize how desperate they are for good news at the moment.
Please, Daddy, stop the pain
Well the scouser has departed . Oh dear , how sad , never mind . my only concern is how is poor Raman going to cope , poor guy so sad will he ever get over this .
STAINT STIVS 10.49am
:-))))))))))
Just had a look at an AV fans’ forum.
They’re not exactly overjoyed by his appointment.
Bears Den is a riot,trying so soooooo hard to put on a brave face.Some heartbroken.
” How could he do this so soon AF ter Sir Walters death.”
“Throw all the bass as stuff onto the street”
“Never even said bye bye to the players.They will be coming back fro Internationals,and will never see him again”
Too much for one aching belly to take there’s 150 pages of hilarity,so far.
Derek McInnes will be next.
Beale has not been announced at Villa yet, they may be trying to get him to take over the reins, por cierto.
Well, just shows what I know about professional football!
On a couple of occasions I gave my own tuppence worth regarding the possiblity of Gerard heading to Villa.
My considered and carefully crafted conclusion was that a guy with such a poor record, in the Scottish backwater (copyright English media), having spent millions (through massive debt accumulation), amassing three whole teams over his three and a bit years, working in the most helpful and supportive football environment (the likes of which he will never, ever see in the Villa job) could not be even considered for a job where the absolute priority was to keep a relegation-worried club in the EPL.
Yep, I know feck all about professional football!🤡
Personally,I am glad he has gone.Gave them far too much profile.Sky adore him,an that goes out to a massive audience.
Will they advertise again in the Sits Vacant column?.
Problem they have is a their finances.Everyone knows.
Timmy7_noted on 11th November 2021 10:14 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.
———
Against a good big yin, I had my heading work cut out for me, but loved the feeling of timing and clearing the ball with the napper. Maybe a Napoleonic complex coming out on the park. Never scored an attacking header tho, only decent defensively.
—————–
Wonder if Steve will be reprising the UB40 hit ‘I am the one in nine’ ??
I’d have preferred that SG and his backroom team stayed for the season – was looking forward to seeing Ange’s team, having followed the ‘process’ for developing our exciting, free-flowing playing style – eventually catch, and ultimately trundle over and utterly destroy the team that SG had put together.
Was looking forward to seeing the despair and anger on his face, and that of his coaches.
I’ll still look forward to seeing Jota, Abada and Kyogo’s pace up against Rangers’ back-line.
Hopefully we get through in the cup and (if they don’t get dumped out in the semi-final) we’ll have two opportunities in quick succession to see if we have progressed enough at that point to hammer them.
I think we will have.
HH
BGFC
Daily telegraph broke this story and said compo of £2 million. Daily record then said compensation of £2-3 million. Sky this morning went up to £4 milllion and now the BBC are reporting £4.5 million.
Give it another week or so and they’ll be clearing their debts with the Slippy compensation – Rodgers dollars !
£4.5 mil In compensation (Allegedly) That’s only half of what we received for Brendan and slippy is the greatest manager in the history of football Ever Ever Ever. Shoorly the decimal point is in the wrong place