“Money in: £101, money out: £99, happiness. Money in: £100, money out: £101, distress.” Of the millions of words left on Celtic Quick News over 19 years, a few regularly come back to mind, including this one from Kojo, circa 2006.
Money determines long-term success in football, and CQN started by explaining our finances, in particular, our position in relation to our then-rivals, Rangers. Documenting the last 8 years of their journey around the plughole was educational. People refuse to believe the patently obvious until the final moment. There is no helping them.
A new era and a Newco is jostling with Celtic for the prizes in Scottish football. Who generates and spends money wisely will again determine long-term outcomes in our game.
Newco released their accounts for the year to 30 June 2023 yesterday, a year in which they matched Celtic’s operational spend (Newco: £95.2m, Celtic, £95.4m) in an attempt to bring down our dominance, “like a pack of cards”. You already know that despite achieving Champions League qualification for the first time, those cards proved remarkably durable.
Newco turnover was down £3m to £83.7m, a whopping £36.2m less than Celtic generated during the same period. That chasm reflects our higher earnings from the Champions League, domestic prize money from winning a treble, higher ticket sales and, importantly, more lucrative commercial deals.
Newco made a loss for the year of £4.1m, Celtic’s profit was £33.3m, that is despite Newco making a profit on the sale of players of £23.6m, and Celtic ‘only’ reporting a £14.4m corresponding figure. Year-end cash at Newco was £5.3m, compared to £72.3m at Celtic.
Post year-end, Michael Beale and others were sacked, resulting in a £13.1m hit to this year’s figures. The accounts note, “Our thanks go to Michael Beale and his staff for their efforts during their time at Rangers (sic.)”. I think we can all echo that.
Barring an exceptional run in the Europa League, Newco’s income will drop significantly this year. Their playing squad was overhauled in the summer, so wages will vary, quite possibly going down from the £64m of last season, a figure which eclipsed the treble winning champions’ £60.8m bill.
Both clubs are subject to the vagaries of Champions League qualification, but Celtic can afford to carry an operational cost of £95m, without needing to massively adjust if they only reach the Europa League, Newco cannot. They are trading miles above safe levels, with enormous risks which should worry fans who lived through earlier times, and have a modicum of perspective.
Administrators for Elite Sports Group have a £9.5m action raised against the club. Newco signed a kit contract with Elite and Hummel, but after an action by Sports Direct, a court ordered the club could not “wear any Official Rangers Technical Products designed by, supplied by, gifted by or manufactured by Elite or Hummel, or bearing the Hummel brand.”
The £9.5m figure is what Elite’s administrators estimate the company lost due, they have asked the court to force Newco to reveal sales of Castore kit, to allow them to prepare a detailed claim. Newco are confident the contract they signed with Elite is nothing to worry about. Good luck with that, they have an admirable track record in legal matters.
In September last year Uefa placed Newco on their financial monitoring list. Uefa requires club who participate in their competitions to meet break-even criteria. A £4.1m loss will not move the dial much either way, but the storm clouds are gathering.
No Champions League football this season, no player sales to speak of, the spectre of Elite lurking in the background, and still dependent on financial support for day-to-day operations, all add up to an acute scenario. Uefa sanctions are a risk.
We’ve been here before, you know how this plays out. This club needs to significantly downsize to give it its best chance of avoiding punitive repercussions. Let the voices of worried fans be heard loud and clear today. If they are not, there will be no sympathy when we hear “we were hard done by” claims, when the bell finally tolls.
The direction of travel could not be clearer, memories from 2012 are still fresh, and yet there are still news outlets today writing “profit” headlines accompanying these results, who do they think they are helping?
187 Comments- Pages:
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CELTIC40ME @ 4:07 PM,
“Although how it relates to the topic being discussed I’m not entirely sure”
Apologies
I’ve very little interest in Rangers outside the old firm games…
Hail Hail
Celtic40me
Are we looking at giving up some European aspirations in the short and medium term?
—-
Sometimes the jokes just write themselves :)
HH
can anyone help me, what are “old firm games” ?
and does anyone know if woolworths on dumbarton high street is open today ?
Dundee Evening Telegraph – Wednesday 02 June 1915
GLASGOW CELTIC Have a Profit of £362 on the Year.
Points about Athletic Affairs. The annual general meeting of the Celtic F.C. was held in th© pavilion at Celtio Park last night. The balance-sheet showed that the revenue from all sources amounted to £8230 lid, and expenditure £7867 14s 9d, leaving profit for the year of £362 13s 2d, decrease on former seasons, yet very satisfactory considering present unsettled condition of affairs. During th© season 54 matches were played, of which 39 were won, 8 drawn, and 7 lost; goals scored, 118; goals lost, 46.
Th© balance-sheet and reports were approved. Out of tbe balance of £4078 13s 6d at credit of profit and loss account it was agreed pay dividend of 5 per cent, and to place £2000 to the credit of a dividend equalisation fund. The Board wero voted sum of £350 for Directors’ fees. The secretary reported that about 300 footballs had been sent to the soldiers during the period of th© war, and that these haa all been paid for out of th© funds, as the Board were avers© to any collections for such an object being taken from the public, whom they believed had enough to at present. £380 had been donated in charity during the year.
The loss to the club by th© deaths of Messrs Grant and M’Killop was duly acknowledged, and sympathetic reference was also made to th© deaths of Peter Somers and Corporal J. Maley. was reported that the entire team on the company’s books two had enlisted, three married men in business were prevented thereby from enlistment, on© player had three brothers service, and was th© sol© support of his home and the rest of th© players were engaged Government service.
Th© team were accorded a hearty_ vot© thanks for the whole-hearted service they had rendered during th© past season, and Were enthusiastically congratulated on their victory over Burnley for the Budapest Cup, on winning the League flag, and their victory acainst the Rest Scotland team The retiring Directors – Colonel J. Shauehnessv and Mr J. Kelly—were unanimously re-elected.
The Footballers’ Battalion in London is now 1500 strong. It is rumoured that Quinn and Loney will play for the Clydebank club when ‘football resumed.
BIG WAVY on 14TH NOVEMBER 2023 4:16 PM
If you like the idea of a new stand, how do you propose we pay for it?
Peddling the myth that we must spend ALL our savings on PLAYERS, from the OF soothsayers.
Spend it on better football operations across the piece, to maximise every ounce of investment.
Give Rodgers better staff around him ? Better youth prospects ? Better scouting ? Better player faciliities ? etc etc.
The height of our ambition at the moment is to be the 2nd worst team in our champions league group, from the ignomy of last. Hardly the act of wild fantacists….
HH
GLASSTWOTHIRDSFULL @ 1:37 PM,
“Yeah, we can’t compete in the Champions League because the other teams have more money and can buy better players, but we shouldn’t spend more money on players because more money doesn’t get you better players!”
Yes, it’s a bit of a headscratcher that.
Must have went to the same school of logic a Lord Nimmo Smith…
Hail Hail
CELTIC40ME on 14TH NOVEMBER 2023 4:21 PM
BIG WAVY on 14TH NOVEMBER 2023 4:16 PM
If you like the idea of a new stand, how do you propose we pay for it?
—
You know what I was giggling at (Europen aspirations) but as you asked, you know there are plenty of routes if the ambition is there – debt financing, equity contributions, and monetizing club assets and future revenues through naming rights and bond or share issues. Filthy rich fan funding or our big benefactor Dermot could stick his hand in his pocket for a change…
HH
CHAIRBHOY
I love the idea of only paying attention to them for four games a season. It must have been fun to have learned whether we’ve won the league or not after the 38th game.
https://news.sky.com/story/man-arrested-over-death-of-ice-hockey-player-adam-johnson-in-sheffield-13008311
Northern Whig – Saturday 11 July 1931
GLASGOW CELTIC CENTRE-FORWARD MARRIED AT MOVILLE.
An interesting ceremony took place in St. Michael’s Church, Moville, yesterday, when James Edward M’Grory, Glasgow Celtic’s international centre-forward, was married to Miss Veronica Green, daughter of the late Mr. George Green and of Mrs. Green. Glasgow. The Green family are proprietors of 13 picture houses, including the biggest theatre in Europe.
M’Grorv arrived off Moville on the Anchor liner with the other members of the team returning from their American tour A motor l»o«t went out from Moville, and in it M’Qrory came ashore. It was the do«iro of the parties have a quiet weddiiiff, and it was with this ehj.» ! that Moville was eeleeted.
BIG WAVY on 14TH NOVEMBER 2023 4:30 PM
I know that they aren’t all open to us.
We wont just get given the money, we’ll need to pay it back with interest and we’ll need to find the money to do it.
We ‘re slap bang back in the same transfer market where we got robbed for Ajeti and Barkas, except they’d cost us £15M, not £5M each. We got ‘lucky ’ and took time out with Ange Postecoglu’s insider knowledge of an untapped previously untried market, it paid off.
BOURNESOUPRECIPE on 14TH NOVEMBER 2023 4:39 PM
I think the biggest change is that we stopped signing losers.
Northern Whig – Monday 28 March 1910
VISIT OF GLASGOW CELTIC;
The Lough Neagh Fishermen’s Match.
Twofold interest attaches to the visit Wednesday next to the Cliftonrille enclosure of the famous Glasgow Celtic team, who have maintained a remarkable supremacy in Scottish football circles for a good number of years past. The will bring their full League teams, including their renowned centre, Quinn (who has bit of his own to get back), and will meet the strongest team that can be picked against them from the local League clube. Lovers of football in Belfast are not likely to miss the opportunity of seeing this world-famed team perform on Irish sod, and we fully expect this account alone see a great gatheripg at Cliftonrille. What enhances the interest of the fixture, however, in remarkable degree the fact that it is being played for the benefit of the Lough Neagh Fishermen’s Fund. Popular sympathy is largely with these poor fishermen in their struggle for existence, and it would be pity were they debarred from having their case properly put before the House of Lords from lack of the necessary funds. Mr. Francis Grant, J.P., of Too me, has taken keen interest all along in the fishermen’s case, and his brother, Mr. James Grant, one the largest shareholders in the Glasgow Celtic F.C., is scarcely less interested; and it is chiefly due to these two gentlemen that the Celts have been induced to travel. There are doubtless many people in Belfast who would decline be tempted by the attractions of the match, but would neverthelesa be induced to attend it for the purpose of helping the fishermen little. There are, again, those with whom the double incentive would count. Ail these things considered, there ought to be record crowd at Solitude. The Lord Mayor, with his customary kindness and desire to help the weaker side, has graciously consented lack off at three o’clock
There is a story in the wages they must be paying. They have secured the services of some utter dross and appear to be paying similar wages to celtic. Why?
Why not at least try the development model that Celtic operate? Are they unwilling? Incapable? Scared of slipping further and further behind? Is their model to be better than the rest by getting a better quality of journeyman and hoping that keeps them ahead if the Dobs, the embra Orcs and Hibs and on our coat tails if we feck up? Is it just as simple as not being able to play second fiddle and a need to act like a bigger club than they actually are?
I just do not understand their psyche or their ‘business model’
CELTIC40ME on 14TH NOVEMBER 2023 4:38 PM
BIG WAVY on 14TH NOVEMBER 2023 4:30 PM
We wont just get given the money, we’ll need to pay it back with interest and we’ll need to find the money to do it.
—
Same with every club. I’m sure DD will give us favourable terms and the Arab League will be happy sponsoring it as the Free Palestine Stand….
Waiting for England to take us has been the height of our strategy for the entirety of the DD reign. All the while the stadium gets more and more outdated as the years pass.
What’s the plan for the next 5 to 10 years?
Stopping there before I get all ‘growth plan-y’ like a previous poster of the parish….:)
HH
A famous incident – maybe not exeryone knows of it.
Last archive newpaper for today,
————-
Dundee Advertiser – Thursday 03 December 1896
GLASGOW CELTIC CLUB. THREE PLAYERS
Last night the Committee of the Celtic Club considered the conduct of Meecban, Divers, and Battles, who refused to play last Saturday in the League match against Edinburgh Hibernians because the Committee would not consent expel the press representatives from the field.
The Committee resolved to suspend the three players till 15th May next, and pay them half crown weekly till then. Meechaa. Baltics, and Divers cannot, therefore, play for any Club in England, Scotland, or Ireland till then.
ROBERTTRESSELL on 14TH NOVEMBER 2023 4:45 PM
What cracked me up was that they paid out bonuses for being the worst performing CL club in history !!
What for ?
Putting their kit on properly ?
HH
Spending big money on better players will only have any relevance if such players are prepared to play in Scotland. Doubt many, if any, are prepared.
Looks like most of the “projects” may well work out. Here’s hoping.
och one more this is too odd not to post it…….
whatever happened to the RUC 5 A SIDE TROPHY MONEY ?
——————
Belfast Telegraph – Tuesday 12 May 1936
GLASGOW CELTIC SELECTION.
The Glasgow Celtic team for the R.U.C. five-a-side competition will be:—Hogg, Morrison, Buchan, Paterson. and Delaney. This is the five that won the cornpetition last year. The tournament will take place at Windsor Park on 23rd inst.
CELTIC40ME @ 4:32 PM,
T’uther day I posted a link to an archived CQN blog while debating with SFTBS
It was called “The problem of relative poverty…”
Here is a comment I made on Page 1.
CHAIRBHOY on 22ND MARCH 2019 2:41 PM
Hi Paul67,
That’s a very interesting piece and it’s always good to get an expert insight and proper analysis of the numbers.
I think it was following your piece on Celtic PLC’s publication of our end of year results in June 2018, that I made a comparison between “potentially” identical businesses in the same City with hugely different financial results due to the way each business was run.
Of course Sevco got an out of jail card when they managed to qualify then (over) perform in the Europa.
Celtic failed to qualify for the UCL therefore the performance of each business will be much closer this financial year.
Of course there are always intangibles in the footballing business and when you are a well run business these tend to have a positive effect and when you are a poorly run business a negative one.
For instance, Sevco’s failure to sell Morales or any other player in the January window following their good showing in Europe has them going back to Close Brothers for cash. While our “windfall” from the profitable disposal of our team management and coaching staff means that the shortfall from our UCL failure will be mitigated.
However Celtic F C, like The Rangers F C are, or should be, primarily football clubs. That means what happens on the pitch is of paramount importance.
The different approaches, Rangers International throwing everything including the kitchen sink at their squad and Celtic PLC being risk averse means, we will go into the Old Firm derby similarly matched. Of course our extra quality should prevail but I’m sure in June 2019 [2018] we never thought this imaginable.
After that Sevco went on to win a Cup and a League and get into a Europa Final.
So forgive me if I get off the merry~go~round this time.
In other news…
Sevco are not going bust!!
Hail Hail
CELTIC40ME
Coincidentally mibbees 👍
There’s no guarantees with actual fees, for example would we convert Bernardo to a permanent deal for the £7M Benfica would want?
Plenty of time for him but on the evidence so far, – meh!
CHAIRBHOY
Sevco are not going bust!!
Thats what they said about Rainjurz 👍
Threesie ?
AffOot copyright KevJ csc
BOURNESOUPRECIPE @ 5:06 PM,
Very true…
But didn’t you know, there’s not a team like the Glasgow Rangers, no not one, they’ll never be another one;)
Hail Hail
CHAIRBHOY on 14TH NOVEMBER 2023 4:56 PM
“I’ve very little interest in Rangers outside the old firm games…”
Unless it’s an unfavorable comparison with Celtic.
You could make the argument that UEFA forcing the Huns in to long-term austerity virtually guarantees Celtic the league and automatic European football.
Am I correct in thinking revenue from European football is not assumed/budgeted at the moment?
That could change if the Huns are forced to live within their means.
BOURNESOUPRECIPE on 14TH NOVEMBER 2023 4:58 PM
Loans with an option certainly allow us to look at the players mentality as Brendan would say
Rushing into expensive “experienced” losers like the Huns guaranteed a certain sort of player
AT
Great read about the clubs.
I hope the “James gallagher’s glenties csc” has been edited to Joe Gallagher before the book went to print.
Chairbhoy
“After that Sevco went on to win a Cup and a League and get into a Europa Final”
—————————————
To be accurate in your prognostication about March 2019 “we will go into the Old Firm derby similarly matched. ”
We won that league and the one after it. It was 18 months later in the Covid season before the evenly matched team beat us one year, before losing the next two again.
We cannot control how they do in Europe, but , before we get jealous of GVB’s team- would we swap a league title so cheaply – for a Europa runners-up slot?
Paul67 excellent article; factual and direction of travel crystal clear.
Flying long haul and the champers has been delivered— however not in celebratory mood. We need to finish them off in the league— we see the match fixing help they are receiving. We have key players injured and Asian Cup on horizon. We have a very slim hope of euro fitba too.
So the club needs to unite and support the manager as they will fight like hell to avoid newco disappearing after a decade. Time to bury this racist club for good.
Asian cup is a worry
We take out all the strikers, a winger and a midfielder….
Hope we can find a striker willing to fight for 1st place slot…..
PENALTY TO RANGERS (part 2) Since our penalties post from yesterday is doing a bit of traction – we thought we’d break it down a bit more
⚽️- Rangers are currently on a British record run of 67 games without conceding a penalty
⚽️- the world top flight record is 74 held by Barcelona in the 2011/12 – 2012/13 seasons (which is currently under investigation by Spanish FA)
⚽️- Barca averaged 80% possession during that time (Rangers averaged 58% during their run)
⚽️ – before the current 67 game run, Rangers went 44 league games without conceding a penalty
⚽️ – so they have only conceded 1 penalty in their last 112 league games
⚽️- Since August 2020 they have the highest penalty differential in Europe’s top 20 leagues, ie pens for minus pens against (as shown in the graph below)
⚽️ – Since the 20/21 season they have conceded a penalty on average every 42 league games (Celtic every 9 games)
⚽️- from 2018/19 season they have a penalty differential of +43 ( Celtic are +15 for the same period)
⚽️ – since 2018/19 Rangers have been awarded 52 penalties and conceded 9 (Celtic have had 39 and conceded 24)
⚽️ – Since last season (when VAR arrived in Scotland) Rangers have had 16 penalties in the league with 0 against (Celtic have had 12 with 7 against)
⚽️ – They are only team in a league with VAR that has never conceded a penalty since the technology was brought in anywhere in the world
⚽️ – If Rangers don’t concede a league penalty before the end of this year (8 games) then they will have set a new world record
⚽️ – James Tavernier is now in the top 10 for the most penalties scored of all time
⚽️ – out of everyone on the list the Rangers captain has the highest percentage of goals from penalties
Top 10 penalty takers and % of goals that are penalties (via TransferMrkt)
C. Ronaldo 157 (18%)
Messi 109 (14%)
Totti 86 (27%)
Ibrahimovic 85 (15%)
Del Piero 77 (22%)
Shearer 72 (18%)
Ronaldinho 70 (30%)
Cavani 61 (14%)
Lampard 60 (20%)
Tavernier 58 (48%)
Get the games cancelled during Asian Cup,if it suits us….
CELTIC40ME
Indeed, Nat Phillips till January was emergency cover, longer term loans with a buy option are way to go, they have served us well, so far.
The fan clamour to buy a £10-15M player has to be tempered for our wage structure that accommodates such a player.
BR will break our transfer record, it won’t instantly make us competitive in the CL, only consistently winning the Scottish league like 12 from 13 and so on, will do that.
You can’t build a business module with one eye on your noisy neighbours, who remain an irrelevance.
SFTBS @ 5:51 PM,
We did win the next Derby, as predicted, however we then lost the one after that.
Our record against Sevco up to that point had been phenomenal.
Since then we have played sevco twenty times .
Pld—–W——L——D
20——-7——8——-5
So the unimaginable did happen
Hail Hail