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Ominous for Newco as Celtic cards refuse to collapse

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By on CQN BLOG & Comments

“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?

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  3. garygillespieshamstring on

    Quadrophenian

     

     

    To be fair, getting 30 seconds of the silence is more than on previous years.

  4. What is the Starz on

    St Stivs..of course

     

    National Archives.ie has census online for 1901 and 1911..Pre partition so includes occupied territories

  5. What is the Starz on

    The name Higgins appears in Co.Tyrone but no mention of Coalisland..Could they have lived in a townland outside the town

  13. David66 on

    Good morning all from a dark, chilly and damp 7 degree Garngad.

     

     

    Is Stiv’s banned?

     

     

    Reading back if anyone thinks you can loose a league fairly in this cespit of a country they have not been paying attention.

     

     

    Check out Bad Sport on Netflix and sevco’s penalty count.

     

     

    Now the Galling thing for the cheats in black and at SFA/SPFhell is that huns are so keech they cannot cash in on winning the league.

     

     

    But they only need to be close to us in Jan/ Feb for the cheating to realy count.

     

     

    In fact we were cheated for years with Rankers, side letters etc and ebt’s.

     

     

    Every other club including us is getting cheated just now as they are spending cash they do not have.

     

     

    Its a testiment to our squads that we have won so many trophy’s but we should push on and buy quality and put more daylight between us and them before their cheating counts and we loose a league.

     

     

    D :)

  14. voguepunter on

    From the Herald…dignity f.c.

     

    Mark Warburton has insisted he would never have resigned from Rangers as he blasted his Ibrox departure as being handled “absolutely appallingly”.

     

     

    The former Rangers manager left the club in February 2017 alongside assistant Davie Weir and head of recruitment Frank McParland.

     

     

    A club statement at the time suggested the trio had resigned from roles at the club, however, Warburton has remained unmoved on his position that no resignation was ever tendered.

     

     

    Instead, the manager has claimed he discovered he had been “sacked” while watching Sky Sports News.

     

     

     

     

    Discussing his confusing exit from Rangers on the Scotscore podcast, Warburton suggested his departure was down to “Celtic’s unbeaten form”.

     

     

    And Warburton remains adamant he would “never, ever walk away from a club like Rangers”.

     

     

    He said: “I’ll never say anything derogatory about the club, you know that. I was lying on my sofa watching a game. It was five to nine and I’ll never forget this, it was burned on my brain and my phone started jumping a little bit.

  18. Hot Smoked on

    !!BADA BING!! on 14TH NOVEMBER 2023 6:46 PM

     

     

     

    Is all that 100% accurate? I would like to spread it around as much as possible ( maybe others could do the same ?) and would want to make sure it was spot on.

  19. Parkheadcumsalford on

    Goodlad of Radio Scotland bringing Dallas back into Scottish football. Could listen to him for hours, says Goodlad. How blatant can they be? Makes me sick. A man sacked for bigotry and Radio Scotland praising him to the skies…..

  26. !!Bada Bing!! on

    PARKHEADCUMSALFORD on 15TH NOVEMBER 2023 9:14 AM

     

    Goodlad of Radio Scotland bringing Dallas back into Scottish football. Could listen to him for hours

     

     

    …….sounds like they’re laying the groundwork to give him a job…..

  27. !!Bada Bing!! on

    Just read back,I will stay away until Saint Stivs is reinstated, more baiting from the Moderator……

  29. Back to Basics - Glass Half Full on

    Scullybhoy this morning – brilliant pics.

     

     

    Praise from someone who is terrible at taking “photies”.

     

     

    The first one in particular, Yang scoring, is a cracker.

     

     

    Look at all the faces in the background – they know its a goal.

  30. Back to Basics - Glass Half Full on

    PARKHEADCUMSALFORD @ 9:14 AM

     

     

    Goodlad of Radio Scotland bringing Dallas back into Scottish football. Could listen to him for hours, says Goodlad. How blatant can they be? Makes me sick. A man sacked for bigotry and Radio Scotland praising him to the skies…..

     

     

    ———

     

     

    Bigots still need to eat and pay rent.

     

     

    Was inevitable.

     

     

    Same with Madden.

     

     

    Put out the feelers

     

     

    Then a couple of one off appearances on the show

     

     

    Then make him a regular …. picking up a regular wage.

     

     

    Sport Shortbread has no editorial control or integrity.

     

     

    By huns and morons / for huns and morons

     

     

    IMHO, Celtic should ban BBC Sport Scotland immediately but continue to fully accommodate BBC Sport UK.

  32. Celtic Mac on

    hot smoked

     

     

    Check Saint Stivs post (and language) @ 12.17am and you will find out why. Would like to describe that as juvenile, but to do so would put him in a category to which he hasn’t yet reached. Owes Paul67 an apology.

     

     

    bada bing

     

     

    Listen bing if you think that kind of language is acceptable maybe you have made the right decision. Pathetic position to have adopted. Let the rest of us know when you start Primary school

     

     

    naughtystepcsc

  33. Timbhoy163 on

    I made a bad comment about ST STIVES which was in bad taste ,I apologised to him for making a terrible remark ,I read a lot off his comments on here which by large they are fair ,reading on here I can’t see anything regarding him being barred .

  34. quadrophenian on

    Re one of Scullybhoys pics…

     

     

    What’s with big Oh’s signature tucking shorts into his scants/sports hose fashion-statement?

     

    https://images.webapi.gc.celticfc.com/fit-in/1400×1400/e2319920-8206-11ee-8e08-e314ab8e2981.jpg

     

     

    I’ve seen the lad sport this sartorial quirk a few times. First thought it was mistake, but it’s his trademark or summit?

     

     

    Mibby he’s in the Korean masons so that baring his leg means his skin is closer to Celtic Park so there is more physical contact between him and our hallowed turf ?

     

     

    EASTERNSTAR? CSC

  35. !!Bada Bing!! on

    CELTIC MAC- I’ll give you pathetic, the constant baiting by the Moderator on here,so read back when you’ve finished your play piece

  36. TinyTim on

    When discussing why Celtic don’t spend more of the £72 million in cash that Celtic have in the bank .

     

    There seems to be an elephant in the room .

     

     

    Celtic failed in a bid to settle the sexual abuse cases in an out of court settlement.

     

     

    Is it possible that the board have been advised that if they lose the case ,they will have to pay tens of millions in compensation ?

     

    The fact that they have offered an out of court settlement,leads me to believe that Celtics legal advisers think that there is a good chance that Celtic will lose the case .

     

     

    Why would you try and settle out of court ,before a trial ?

     

     

    The most likely reason is that you think that on balance you will lose at trial .

     

    That you can limit compensation to less than it would be if you lost at trial .

     

    To stop information that would be harmful to the reputation, being aired at trial.

     

     

    Despite the almost daily criticism that is aired at our board and major shareholders they are not stupid men .

     

    Especially Dermot Desmond .

     

     

    I hope that I am wrong but my gut tells me that this case is going to cost many millions of pounds ,and it is prudent not to overspend ,at this time .

     

     

    I don’t expect us to splash the cash until the case is resolved.

     

     

    Does anyone have any reliable knowledge or experience of how much Celtic are likely to have to pay in compensation ,if they lose the case?

     

    TT

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