To properly analyse Celtic’s interim account for the six months to 31 December 2017, which were published yesterday, we need to take into account the same period for the last two seasons.
Revenue for the period was a staggering £71.5m, up £10m on the previous season (which also saw Champions League group stage qualification), but more notably, a remarkable £40m from the £31.4m recorded during the last Ronny Deila season.
Clearly not all of that £40 is directly attributable to Champions League qualification, but one division of a football club drives revenue to another. For example, merchandising revenue for the period to 31 December 2015 was £7.5m, this increased to £10.7m this season. On-field success drives footfall, which drives revenue across the business.
The attributable effect of the Champions League is contained within Multimedia and Commercial income, which to Dec 17 period was £34.0m, up marginally from £29.9m the previous season, but unrecognisable from the £9.1m to Dec 15.
Also within Multimedia and Commercial are the contracts with Dafabet, Magners, New Balance, Eden Mill and Intelligent Car Leasing. It beggars belief that some of the current deals were achieved in the months before Ronny departed. The multi-year Dafabet deal is comparable to a single-year Champions League qualification.
Although Champions League football remains of the utmost importance, these commercial partnerships fortified the club’s ability to speculate as they have since 2016. Don’t underestimate their importance.
I’ll come to how spectacularly successful a period this was in a moment, but the one area Peter Lawwell will be anxious about is the cost of football and stadium operations – which are primarily wages. Costs for the period to Dec 17 were £40.7m, up from £33.7 the previous season and £24.2m under Ronny.
In the space of two years we have come close to doubling our football costs. The revenue is there to support this growth, and the overall strength of the finances can withstand a season without Champions League football, but you and I know what happens to clubs who budget assuming they will always hit the Champions League jackpot (they sell to a spiv for £1 and liquidate).
It will also occur to you that it doesn’t feel like you are watching a more expensive football team this season than last. Put another way, we got better value for money last season than this. The primary reason for this is wage inflation in England, which forces a corresponding increase when contracts are being renewed elsewhere.
Most of the Celtic first team could earn more money in England. They stay at Celtic because they want to be here, but also because the differential is palatable. For some, the money available elsewhere will be irresistible (which doesn’t make them bad people, btw).
For a club who again retained all of their top personnel, this is an incredible set of accounts. I expect more player trading in the summer, as Brendan will try to build upon the team which has largely carried him through two season. Congratulations to the supporters, Peter Lawwell and his team, and to Brendan, his staff and players. As a club, we are probably more united than at any point post-Larsson – a period which had its own fragility.
I know Celtic continually risk-assess the future, but the level of professionalism throughout the club gives me confidence in the future. If I can attempt an understatement, things are going to be OK*.
*this does not indicate complacency about Partick Thistle tomorrow.
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BMCUWP
Build it and they shall come
Pick a date and tell everyone thats it.Derry Hoot on the Blank day of Blankity Blank
It was old but it was beautiful and its colours etc etc….
Encouraging news for Celtic, it’s a real shame tho’ that we don’t have a deal with The Legendary Close Brothers that the Daild Radar could foam at the mouth about but you can’t have everything:))
Our pursuit of the League and the Scottish Cup plus our two games against Zenith are the next steps in Brendan’s voyage, I’m not sure that for a club like Celtic and the position we are in SPHell etc can equate success only with spending. I find our situation quite complex and frustrating, the player market is not completely insane and we have to spread our net far and wide to find our players. I din’t expect much from the January window but Charly Bhoy seems like one who when he settles will get us off our seats.
Brendan seems to me to be building a successful team step by step and also laying a solid foundation for future teams.
I’m not convinced you’ll see Brendan spending double digit millions on players any time soon as his plan seems to be taking in account where we play, so young prospects and good players surplus to requirement at Mega Clubs plus I would hope the odd bit of genuine quality.
There seems to be a lot of resistance on here anyway to Celtic being a business??? Makes no sense to me, football has always been a business, better a successful one than a Wonga one shirley..
This might not be a popular view but the idea that somehow we are a Euro power and should be competing in Semis and Finals seems to be based more on emotion than reality and I don’t think even a 50,000,000 pound spend would change that considerably for the little that that kind of money buys these days.
We should always be looking to improve and that is in fact Brendans mantra, the patience required let him do his job might not always be forthcoming for the support but I remain very happy that he is our manager!
Bring on The Thistle
M6BHOY
Did you ever think for one minute that you’d be getting so p’d off wi the club that your opinion of them would sink so low as it has?
A lifelong supporter. Shareholder.
Naw?
Me neither. Here’s some hope. Have a boot in the balls anaw,cos we wurnae serious about the former,the latter is just the way it is,right.
Bobby: October might be better because it will be after the Summer holiday season and will give attendees more time to plan?
WHATISTHESTARS
I don’t want people to be put off by lack of accommodation,mate.
Have a quick flick through the sites,not too easy.
A wee tune to go with you lunch.
Peter Green – Albatross
https://www.youtube.com/watch?v=3oSlZMe2WIo&list=RD3oSlZMe2WIo&index=1
Paul67 ( now that I’ve read it )
£30M in the bank is a lot for Celtic, and largely for the punter anyway, because we’ve qualified for the CL two seasons in a row.
It’s peanuts in the CL and temporary annual group of death maulings are the price of our success, it won’t argue with the box office where 60,000 fans are lauded for producing the best atmosphere in Europe yada, yada.
Most Celtic supporters understand in context, that we don’t have £30M to spend on players, for the reasons that have been posted ad nauseam i.e. salaries and running costs ( like Lennoxtown at £3M per annum )
We also tick the boxes on scouting and ‘the where we shop’ signing policy, the solid infrastructure ensures Celtic today and Celtic tomorrow, our annual Gazebo signings are icing on the cake.
Just think where we might be without a bank never mind a balance, we might be turning down Dembele bids from an unknown agent, from an unknown planet from an unknown universe or maybe relying on a pair of merchant bankers.
Bring on the Harry Wraggs CSC
My aforementioned flatmate insisted we watch Field of Dreams.
He also insisted we watch Mad Dog and Glory.
And various others.
He was an all-round smashing guy. But his taste in films sucked.
My Aussie flatmate eventually laid it out for him. Touch that remote control,I’ll cut your hand off.
Canny beat the Aussies for plain speaking,bud.
Afternoon all No Wi-Fi fae wednesdasy,welcome to the dark ages my 7yr old Grandson is traumatised wae no access for two days:)))))))))))))))))
LEFTCLICKTIC
FFS,is wee Sean 7yo?
BMCUW
Brace yerself :)))))) he is 8 in 4ks, where does it go bud.
Starry @ 12.59
The Brendan Voyage
shaun davey CSC
Just back from a visit to Estadio Nacional- becoming 60 and visiting the place of dreams is quite an emotional roller coaster for this Bhoy.
Great to walk on Billy’s steps and imagine what went on ,where I was standing to-day, 50years ago. A great memory.
Special thanks to BRTH who provided some great info to smooth our time in Lisbon.
Lisbonlionscsc
leftclicktic on 9th February 2018 1:19 pm
Took my 12 y/o grand-daughter shopping to spend her Christmas vouchers. She bought a sweat shirt with the words, I don’t need you, I have WiFi emblazoned on it.
simple question
what position does £30m in the bank play?
GO TELL THE SPARTIM on 9TH FEBRUARY 2018 1:39 PM
simple question
what position does £30m in the bank play?
Right back……..intae the balance sheet ;-))
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 9TH FEBRUARY 2018 1:06 PM
M6BHOY
Did you ever think for one minute that you’d be getting so p’d off wi the club that your opinion of them would sink so low as it has?
A lifelong supporter. Shareholder.
Naw?
Me neither. Here’s some hope. Have a boot in the balls anaw,cos we wurnae serious about the former,the latter is just the way it is,right.
———————————————————————————————————————–
As a shareholder I have a very high opinion of the way the plc is running the company. All I am doing is highlighting the inherent conflict between what is good for the plc/shareholders and what is good for the team/supporters. Sometimes the interests of the two groups are the same. However, at the end of the day the plc has a fiduciary responsibility to act in the interests of the plc/shareholders which means the they will make decisions for their benefit and theirs alone. That’s the nature of plc’s I’m afraid.
There are of course other models for running a football club other than the plc one. However, as long as the plc continues to post big profits, I don’t see the major shareholders giving up their next egg.
Personally, I have a relatively small shareholding but would happy to transfer my shares for a different model of supporter ownership which gives everyone an equal share and voice in the club and not the public limited company. Not sure why I would want a boot in the baws by the way.
Thank You Walter Smith!
https://theclumpany.wordpress.com/2018/02/09/thank-you-walter-smith/
GO TELL THE SPARTIM on 9TH FEBRUARY 2018 1:39 PM
simple question
what position does £30m in the bank play?
————————————–
Defender – it defends Celtic from ‘financial issues’ should we not qualify for Europe next year.
Other clubs have not had a good defence in previous years – look what happened to them.
HH
BGFC
The multi-year Dafabet deal is comparable to a single-year Champions League qualification.
Although Champions League football remains of the utmost importance, these commercial partnerships fortified the club’s ability to speculate as they have since 2016. Don’t underestimate their importance.
——
That sponsorship is akin to skid mark smeared accross the jersey .Gambling addiction is a big problem in the uk and it’s growing exponentially thanks to companies like this.
More like – Don’t underestimate the damage they are causing to our society .
Money , it’s a gas
Grab that cash with both hands and make a stash pffffft
The big problem IMO, is the over inflated transfer market we have now, we have money to spend, but a potential £4m player is maybe £10m plus now.Scouting is becoming harder, but there will still be a few gems out there.
Staggering Interims
The financial result make for good reading cause they are the foundations on which our team is built.
I dont worry so much about the high cost of the football department as i an sure much of the costs are bonues. So if we dont succeed in europe the cost automatically reduced. But i still think we have to many squad players who get lots of money for nothing much.
Would imagine 10m or so of that money is earmarked to build the hotel, museum, cafe and superstore with the remaining money coming from a loan. All of the above will improve celtic park significantly, will offer better facilities for supporters and will increase income and profit that will be reinvested in the team.
Dont understand what people dont get about investing in areas outside football department. The benefits will be felt long after a two season wonder come and goes. Indeed i might just pay for that two season wonder’s think or forrth season
HH
M6BHOY
i was halfway through an explanation re the boot in the balls comment,but,hey,why don’t you read the original again instead?
Not aimed at you. It’s what is aimed at us.
Honestly, some people are never happy. A fantastic set of financials. Incidently, the increase in expenditure in the football dept is due to the success on the field. Celtic players and coaches are highly incentivised with bonuses based on success. Brian Quinn said that the club is happy to pay for success.
I think you will find that Brendan and his team will be due big bonuses in the next few months with back to back trebles to celebrate.
The Club is properly run and as we have been told budget as a stand alone club and do not budget for champions league success. When we get this success the staff and players get a big chunk of the income in bonuses.
Brendans budget going forward will be increased in line with our profits. Every penny Celtic earn is reinvested in club.
Football budget, projects are all to be funded. Hotel and museum and also some form of upgrade of Main Stand as well as Lennoxtown need to be funded.
I am sure that Peter Lawwell will have a well researched 5 year plan and indeed 10year plans and so on.
I predict that this £30million in the account will be gone in a year
DBHOY on 9TH FEBRUARY 2018 2:03 PM
I really don’t get the problem with having a gambling company as a sponsor. Gambling is not illegal (maybe you think it should be?) I completely understand that people have addition issues with gambling but I cannot subscribe to the argument that these are caused by the gambling companies. Unless I am mistaken I have never known a legitimate gambling firm such as Dafabet don’t provide borrowing that facilitate anyone getting into debt. Promote responsible betting and put reasonable safe guards in place.
DBHOY on 9TH FEBRUARY 2018 2:03 PM
Agree 100%. HH
BIGBHOY
Pete Lawwell,financial genius and all round good guy.
Aye,right.
Well researched 5-year plan.
Aye,right.
I suggest that you look at PL’s performance since he arrived.
Gone is Henrik. Replaced by Henri Camara.
Gone are the guys who gave us a taste of glory. Replaced by journeymen
Interesting point,during GS period,the wages increased,because he was throwing so much shite at the wall. Milan Milos,and people like that. I could find better players in the Saltmarket,but for some reason,quantity trumped quality.
High-earners bad and out the door,low-earners good,there might be a gem in there,Napoleon.
Instead,we ended up wi a pigsty of a squad,and a disaster of a signing policy.
If PL had stuck to his original remit,balance the books,I might have given him a C+ pass. Possibly better.
He didn’t,and he still doesn’t. He still pulls all the strings. And he’s not,by any manner,a football man.
Not when it comes to his job.
He’s an austerity accountant,he always has been.
He knows the price of everything. He has no interest AT ALL in value.
Malorbhoy , have you checked with Coventry Emerald or Liverpool Shamrock . They’ll both be up and passing by you .
Sanna
WITS,
If you’re around, is there any news from Dundalk? I notice that Zaofu is running again.
HH
SEÁNP1916 on 9TH FEBRUARY 2018 2:17 PM
I can see a clear link between the growth/proliferation of these companies in the uk and the rise in gambling addiction.
The safeguards you mention are clearly not working when around two million people in the uk are addicted to gambling or at risk of developing a gambling addiction.
It pains me that my club are promoting them.
It goes against the ethos on which our club was founded IMO
HH
ART OF WAR on 9TH FEBRUARY 2018 9:46 AM
Auldheid, did you see post directed at you last night in relation to fielding ineligible players?
2 teams sanctioned and results altered to 3-0 for opposing team.
Didn’t see your reply.
=======
Based on how the matter was reported and if I read it right, it seems strange that it was the league and not the SFA who decided the players were ineligible.
Bryson is an SFA employee so why was he providing testimony on the SPL LNS Commission if a SFA member league can come to a different conclusion?
Apparently in both cases paperwork had not reached the league, so the registration was incomplete, but what is the difference between the incomplete registration that 3 points were deducted for and incomplete registrations where no side letters were provided yet no points deduction?
This question should be asked but to whom and by whom?
I thought at the time based on my experience on the Disciplinary Committee of an amateur league that the Bryson interpretation would come back and bite the SFA.
It all adds to a picture of the construction of a sham from the off.
The only thing I’m unsure of is did SFA act alone in the sham’s construction or in partnership with the then SPL?
Another straw that might break the sham’s back could or should emerge from the SFA Investigation into 2011 UEFA licence.
Ol BRTH spotted it in 2015 I think and the TJN guys raised it in 2016 and Celtic are well aware of it.
Once the investigation has run its course and unless something unknown turns up there should be renewed pressure from supporters to set LNS aside.
I assume you feel the same about Magners and Eden Mill for being responsible for alcohol abuse and Intelligent Car Leasing for Debt related mental health issues?
No
BGFC
im sure you get the point i was trying to make, if not then spare me the patronisation
Bigbhoy
I fear you may be right but it wont be spent on improving the team thats for sure
SOUKOUS on 9TH FEBRUARY 2018 1:09 PM
A wee tune to go with you lunch. Peter Green – Albatross
*the 60/70s produced an amazing amount of talented guitarists however IMHO the greatest of them all is/was Peter Greenbaum.
Incidentally while channel surfing I came across on Telelatino guitar duo Rodrigo y Gabriela who play a number of genres including nuevo flamenco, rock, and heavy metal, quite outstanding, seemingly they got their big break after moving to Dublin.
Happy birthday jinkyredstar
Make full use of your bus pass☘️☘️
Interesting perception. Gambling BAD. Alcohol and high interest lending OK.