Nothing says distressed sale of a football club quite as much as a loan securitised against incoming transfer fees. Until now, Newco directors have put their hands in their pockets to fund the money pit of a football club. The seemingly endless list of wealthy benefactors has finally stopped.
Newco’s most recent published accounts are for season 2022-23, a year in which they sold Calvin Bassey and Joe Aribo for around £25m (last season’s can be delayed no later than 31 March). The accounts showed £16.8m due for these (and possibly other) deals. Much of that money will have been paid in the 21 months since, while they sold around £11m of players in the same period. This means Macquarrie Bank (the lender) will have security over at least £10m income due from other football clubs.
US investors currently carrying out due diligence on the club, will be aware that no one with a closer attachment to the business is prepared to invest, that significant income streams will be paid directly to a bank, and that they have several motivated sellers. An aspect of due diligence is that it is carried out with an exclusivity clause. Newco will be unable to discuss an investment with other parties while this process is ongoing, which, according to reports, will take until June.
The potential investors are buying the income stream from ticket sales, European participation and commercial deals. It has been a while since Newco have reported a ‘normal’ trading season. Last season’s figures are not out yet, the season before was exceptional with Champions League income (£80m), the one before that was also exceptional, with a run to the Europa Final (£82m), while the two before that were affected by Covid.
You have to go back to season 2018-19 before they reported on a normal year, with participation in the Europa League. Revenue that season was £51m, which practically any competent backroom team would be able to improve upon.
I estimate Newco’s normal income level, in a season they achieve Europa League group participation, will come in around £75m. That is well below their last reported operating expenses (£92m), but, according to Philippe Clement, the wage bill has been cut since then and can be cut again.
£75m is enough to turn a profit at Newco, if you are sufficiently remote from crazy demands to spend more money. They are a genuine investment opportunity. Buy the club for buttons, explain how Uefa Financial Sustainability Regulations prohibit continuous loss-making, bring some sanity to the player recruitment model, make the club profitable and sell at a premium 3-5 years out.
To a US investor, this continual loss making must seem mad. It can be ended at a budget meeting and California is sufficiently remote that fan feedback will never reach them. Both parties will be keen to conclude. Market turmoil (leading to higher borrowing costs/better returns available elsewhere), and cultural aspects around Newco are risks which could dampen enthusiasm.
Notwithstanding that, this is the absolute stick-on opportunity Craig Whyte tried to pull off with Oldco. Stop the loss making, bring the club into compliance with Uefa FSR, bank the profit and sell up at a significant capital gain. Why wouldn’t you?
This is why it is important that Celtic are run at a profit. We will never become hostages to fortune, never depend on a supposed-sugar daddy and trade within our own means. Being owned by a genuine billionaire who, if he does achieves nothing else, maintains this policy, has benefits. I also think Celtic will look soft to data-first US sports people. We are far from invulnerable, which will encourage investment elsewhere by those who prize elite player trading models.
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SAINT STIVS
I lived in Madrid for 3 1/2 years from 79. Athletic fans knew all about Celtic and I could never let then forget about 1974 when they kicked us off the park. Dirtiest team I ever witnessed. Thankfully they lost in the final,.
Rayo Vallecano are the working mans team in Madrid
While I think the criticism of our manager on here is over the top, I also think the utter contempt some folk have foe Peter LAwwell is beyond belief. I’m sure he has done his best for us and wouldn’t be in his current position if our main shareholder didn’t feel the same.
Blakey – many of us were on the brink that night, GBH committed against our players, never forget it. Worse than any Hun game, worse than Racing Club, although Athletico did play Argentinian thugs that night who never appeared again.
Fantastic drama in Madrid.Riveting.Gaun the Real.
Chairbhoy- very interesting stats as always
PARKHEADCUMSALFORD @ 11:37 PM,
If you are referring to my points regarding Peter Lawwell, then where have I shown utter contempt?
BURNLEY78 and others have bigged up Peter on this site for many years, citing his tenure as being exceptionally successful.
The same people have been severe critics of Brendan Rodgers who if anything has done better.
Why is it not reasonable to compare and contrast Peter Lawwell’s achievements and Brendan Rodgers?
Yes, it would be good if we could reduce the negativity, it would be great if we could have an honest debate.
Yet the agenda that’s followed is that Brendan Rodgers is an overrated egotist, while Peter Lawwell is Celtic’s genius saviour.
Countering the narrative with facts isn’t contempt in my book.
Hail Hail
Madrid Derby was a brilliant game of football
!!BADA BING!! @ 11:57 PM,
Cheers…
Of course BURNLEY78 has been suggesting we are doing so well currently as we have little domestic competition from a poor Ibrox side – the stats put the GoD in a different light.
Hail Hail
TURKEYBHOY, !!BADA BING!!,
Agreed, great game to watch.
Mind you, might have watched the Arsenal if I realised KT was starting.
Hail Hail
CHELTENHAM DAY TWO ( Wednesday)…
Not too bad as I had Four Winners at odds of 5/2, 3/1, 5/1, and 15/2. Sadly I did NOT have them all on the same line !
LOL.
I also had my Cheltenham QUADPOT come up although it only paid just over £12 for a £1 Stake.
I am looking forward to the next Two Days of The Cheltenham Festival, as its one of Sports Greatest Spectacles.
I may NOT win too much Today and/or Tomorrow on the Horses, but that does NOT matter….as I hope that Celtic gub the Mankie Huns on Sunday ?
LOL
HH.
LILLE v DORTMUND last night…
2 – 1 for Dortmund.
It was the ONLY Correct Score outta Four matches that I got correct with the Bookies.
LOL
HH.
Bada Bing .
The bitterness towards our manager is there to see,comparing a ned Season Ticket seller for the huns is embarrassing, even by your low standards. You don’t want someone with too much control? How about your hero ,PL,who has taken £17 million plus out of a business this size,and ran every department which he had no skill set in,into the ground, why is he back? It’s very obvious you are trying to keep a business deal together somewhere down the line.
Spot on sir . The guy has definately got a grudge against our manager . It certainly can’t be for football reasons as his team is cantering to another title ,With surely another treble possible playing some great football . Why would any celtic fan not be happy with that , I for one hope he is in charge for a while yet .HH
Hoople 13 Mar 2025: 2/6
❌❌❌❌❌⚽❌⚽⚽
🏆🏆🏆🏆🏆🏆🏆🏆🏆
https://www.celticnewsnow.com/hoople/
#hoople #celtic #celticfc
B78,
As a manager, I have won as many games v Real Madrid as Barry Ferguson has.
😀
The suggestion is one has an ego the other will do the best for Celtic, my take on it is that neither p67 or Burnley trust brendan Rodgers with transfer money unless its buying low selling high, also that the same Brendan is here for many years to come, I don’t think that’s is how they see it or what they want, they would rather have compliant puppet who knows his place, I hope their thoughts and wishes do not come to pass but its clear any success is analysed to undermine the clubs football success under Brendan Rodgers. One thing I think Peter Lawwell is no sit in the background hands off type of character and never will be.
Also I hope
Good morning from a frosty North Staffs
MH – took me 4 steps
MH
Took me 4, too.
You did it in 2 – excellent!
Saint Stivs on 12th March 2025 10:00 pm
In the Netherlands and Belgium, the term “Calimerocomplex [nl]” is used to denote people who are staunchly convinced that their position as an underdog is due to their smaller size, either literally or symbolically.
————
My Bichon must be a Camimerocomplex. She barks at all the bigger dogs , then runs away.😀
Joe/Gene 👍🏻
Good morning all from Govanhill. Day 3 of Cheltenham and still no winner. Tally ho!
From elsewhere.
WORDS OF OUR HOLY FATHER, POPE FRANCIS ON THE WORD, HOSPITAL
The definition of “Hospital” by Pope Francis
POPE FRANCIS always surprises with his reflections:
“The walls of hospitals have heard more honest prayers than churches…
They have witnessed far more sincere kisses than those in airports…
It is in hospitals that you see a homophobe being saved by a gay doctor.
A privileged doctor saving the life of a beggar…
In intensive care, you see a Jew taking care of a racist…
A police officer and a prisoner in the same room receiving the same care…
A wealthy patient waiting for a liver transplant, ready to receive the organ from a poor donor…
It is in these moments, when the hospital touches the wounds of people, that different worlds intersect according to a divine design. And in this communion of destinies, we realize that alone, we are nothing.
The absolute truth of people, most of the time, only reveals itself in moments of pain or in the real threat of an irreversible loss.
A hospital is a place where human beings remove their masks and show themselves as they truly are, in their purest essence.
This life will pass quickly, so do not waste it fighting with people.
Do not criticize your body too much.
Do not complain excessively.
Do not lose sleep over bills.
Make sure to hug your loved ones.
Do not worry too much about keeping the house spotless.
Material goods must be earned by each person—do not dedicate yourself to accumulating an inheritance.
. . .
You are waiting for too much: Christmas, Friday, next year, when you have money, when love arrives, when everything is perfect…
Listen, perfection does not exist.
A human being cannot attain it because we are simply not made to be fulfilled here.
Here, we are given an opportunity to learn.
So, make the most of this trial of life—and do it now.
Respect yourself and respect others. Walk your own path, and let go of the path others have chosen for you.
Respect: do not comment, do not judge, do not interfere.
Love more, forgive more, embrace more, live more intensely!
And leave the rest in the hands of the Creator.”
—Pope Francis
Glasgow St.Patricks Day Parade
https://www.thetimes.com/article/ba113cda-e600-4266-b73c-ec0784e928a3?shareToken=4521cb002b47fee2940d0f1cf2b94206
HH
In many respects any Celtic fan that can’t allow themselves to truly enjoy this period in our history – going for 6 trebles since Brendan walked in the door are to be pitied. They’re also very small men.
Burnley 78
You dont come across as confident in Brendan Rodgers,the opposite in fact to the point it appears undermining him.
Your comparison with Bawwy is laughable,straight of the pages of No-insight,No insight,2 different tournaments for a start,how did they get on in CL again?
The comparison for players ie mentioning Comperr without any mention of Shved like unknowns and the numerous unfounded ‘projects’ where no mention is made of the opportunity cost of our monies wasted.
Yup you and p67 are in a tiz defending the quagmire that was our previous transfer policy.
There was none it was hit n miss all paid for with our monies.Another strategy,one you and p67 are out of the loop on,only shows how petty onesided memory it was.Your out the loop more akin to the many kelly-pact defenders i used to meet comin up and down from London.
HH
Hey Paul67, I see your doyen of the data – Tony Bloom – has now taken a near 20% stake downunder here at Melbourne Victory.
I wonder what the data first US sports people would have made of our transfer target lists being plucked out of waste paper bins ?
B78–Paul67–Pistol Pete…the new three amigos…
🤣
lagerbielke, dud tranfer in,
double you money sale for 6 million.
An Tearmann
Thanks for that article.
Best Wee Bigoted Country in the World.
Who would win in a fight between Franco’s 11 and the Pope’s 11?
vale bhoy on 13th March 2025 11:18 am
An Tearmann
Thanks for that article.
Best Wee Bigoted Country in the World.
====================
Only if you let it be that way Vale Bhoy.
Hate,sectarianism and bigotry are stationery forces,always there until challenged.
There is still mountains worth to be challenged.
It is an inculcated and deeply layered bigotry covering all parties who have been in power at Westminster and Edinburgh,long may a light be shone on it.let mp’s declare membership of anti catholic orders.
HH
new article posted.