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.
335 Comments- Pages:
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Sandman
Why are we banking money then, are we going to take big hit in the next 2 – 3 years?
Whats your insight here? Im sure the likes of Chelsea, Man City and PSG look at our bank balance first before thinking we’re a good fit for football development, it has nothing to do with BR.
GO TELL THE SPARTIM on 9TH FEBRUARY 2018 4:12 PM
From what I can see Brendan Rodgers became Celtic manager on the 20th May 2016.
Moussa Dembele signed for Celtic on 28th June 2016
I would suggest Moussa was a target identified by the Footballing Department that were in place prior to Brendan joining and negotiations were well under way.
I also believe that the final decision to sign the player was taken with Brendan’s agreement
BARNEY67 on 9TH FEBRUARY 2018 4:15 PM
!!BADA BING!!
Whats marketing? Advertising? Its selling stuff, you can dress it up how you like it works. Why dont they allow tobacco advertising any more? Because it works.
Less people probably smoke due to health and education issues , and cost .I don’t think it’s through less advertising
SeanP1916
Thanks for that, wasnt sure, saves me going on a rant.
Point was that, like Chelsea we make decisions on players irrespective of the manager, well, up until the arrival of BR
Why does it have to be one person who signs players????.
I would have thought the idea of one person being responsible for signings to have gone oot the windae ages ago.
But I suppose its handy when it fits your narrative either positively or negatively.
Still what do I know.
At this time of CQN debate somebody has to ask the question- where is McGeady money gone?
Online gambling accounts for vastly more losses than any other sector of gambling in the uk.
You only need a device that connects to the net and away you go.
Gambling numbers-losses-addiction have skyrocketed since these companies appeared.
Some people are ok with Celtic helping to promote that, me less so.
ZENIT TICKET FOR SALE £35
Started my post cancer operation chemotherapy today.
Oncology nurse advises that I should not attend large gatherings as my immune system is lowered making me susceptible and vulnerable to any infection. Matches at Paradise (among a host of things) are off limits in the near future.
I had already purchased my Zenit ticket, South Stand, great seat, so if anyone is looking for a ticket, I have one spare.
Eurochamps67
MightevenbetheendoftheseasonformeCSC
GO TELL THE SPARTIM on 9TH FEBRUARY 2018 3:06 PM
BGFC
im sure you get the point i was trying to make, if not then spare me the patronisation
——————————————–
No need to be touchy – I think, equally, that you know the point I’m trying to make.
Having cash in the bank is a good thing for Celtic.
The urge to spend everything we make – especially given that our income levels every year cannot be relied on to be at a specific level – means that a good level of financial buffer is absolutely sensible.
Anyway – HH to you and yours
BGFC
OneSleepToGoCSC
Eurochamps
good luck with your recovery
ZBYSZEK
Lol the McGeady money?! I still want to know what Celtic did with the Dalglish money.
Welcome to Celtic Leo – i’m sure your uncle Tom will look out for you
http://www.celticfc.net/news/13949
“When the fun stops, stop!!”
Maybe P67 should use this as his tagline.
What no forensic analysis of the figures, no minutae detail of spend,
like a proper balance sheet.
Just the usual board bashing name calling keyboard thumping where
did the Kenny Dalglish money go crud?
The ole CQN am a real rebel better than you no going back to see Celtic
until they make Rainjurz really deed clique.
Plus Ca Change CSC
BSR
Waiting on Arnold’s assessment
EUROCHAMPS67
Best of luck with the treatment mate, HH
Happy Birthday Brendan
‘The most important things to do in the world are to get something to eat, something to drink and somebody to love you.’
Behan CSC
GENE
The ole same Arnold myth ;-)
BOURNESOUPRECIPE on 9TH FEBRUARY 2018 5:07 PM
What no forensic analysis of the figures, no minutae detail of spend,
like a proper balance sheet.
Just the usual board bashing name calling keyboard thumping where
did the Kenny Dalglish money go crud?
The ole CQN am a real rebel better than you no going back to see Celtic
until they make Rainjurz really deed clique.
Plus Ca Change CSC
……………………………….
Hey you! Watch it! My comment about the Dalglish money was strictly tongue in cheek :-))
Advertising works
It’s a genius industry of wizardry that succeeds in having human beings buying Insurance from meerkats and powdered mashed tatties from metal robots.
It was hugely influential for tobacco. That’s why big tobacco fought so hard not to lose it. It works. Especially when young people and sporting heroes are the main engagement channel.
It works for booze.
And most certainly works for gambling.
And we’re kidding ourselves if we don’t recognise that the explosion in online gambling has also caused an explosion of problem gambling.
HH jamesgang
TOSB
Oops, – sorry so was mine genuinely didn’t see it.
grovel grovel CSC
Craig Gordon and EuroChamps67 out for the rest of the season?
EC67- all the best HH
BMCUW
Bobby I believe the Paul McStay CSC
Derry are holding their 20th anniversary at the end of May might be an idea to tie the hootenanny in with this. I’m sure some of the Derry Lhads can confirm dates
Ex-smoker, rarely drink or gamble and that is despite seeing all sort of stuff advertised.
humans are here for a very short time and during that time pick up bad habits as well as, good ones. Thing is people have different ideas about what is good and what is bad and people react differently to things.
not all cannabis user will go on to stronger drugs and not all drinkers will become alcoholics. The whole of society should not be penalised because some people develop problems although society should look to help those that do develop problems.
I dont want to live in a world where i cant choose or make mistakes and prohabition and censorship does not work.
HH
Stephbhoy
If I may, what age were you when you started smoking?
HH jamesgang
Reason I ask is that for decades big tobacco knowingly pursued advertising policies geared towards securing the next generation of consumers.
Most were underage when they started.
Not for a moment am I suggesting that advertising was the sole cause of them starting. But it did create the ambience of cool.
That’s why one of the most profits-driven industries in the world invested billions on advertising and fought so hard to prevent any restrictions.
Their own internal memos said as much
HH jamesgang
Sandman.
It is interesting that you say start being an accountant and stop being a bookkeeper. I could actually pretty easily turn that back on you.
I think what Celtic are doing right now is ultra cautious but actually bordering on reckless for the long term.
My chosen field is risk management. Risk management isn’t about ensuring that you take minimal risks is about err, well risk management. Celtic take a parsimonious approach to their dealings (if I am being kind more on which later) maybe because they are scared of a mistake leading to financial difficulties and of course they should be wary of that. So if Celtic didn’t qualify for the cl for 2 seasons in a row say then our wage bill may be a bit scary. But we have other mitigation so here. For example selling players, careful contract management to ensure everyone isn’t on 4 year deals at the same time etc. All simple stuff.
However by taking the approach they do Celtic actually increase the chances of failure exponentially. Further by taking a shorter term view (contrary to what you say they are doing) they have no longer term growth or success ambition. So their commercial risks they ignore other than the short term commercial risks which can be managed differently.
All of what you say presupposes that I want Celtic to be reckless. Far from it I don’t.
But for a football club Celtics approach makes no sense.
All of what I have said above presupposes that the board actually do have the clubs best interest at heart. There is plenty going on to place that in doubt. Whether it’s their obvious collusion in this corrupt country or it’s a dubious bonus culture for senior executives and neds or it’s the long term goals dermpt Desmond being utterly unclear ( what is clear is that there is no emotional investment in Celtic from him). See I wouldn’t be surprised that if the bank balance keeps growing like this we end up in bonus dividend territory. It would be controversial but it isn’t unheard of.
But Paul will distract is with tales of Celtic overseeing how Lewis Morgan is wiping his bottom correctly thereby deftly ensuring we don’t notice.
Jamesgang
The cigarette advertising co’s and salesmen were known as Madmen.
Our local chain smoking priest called his Holy Smokes.
HH
hi bhoys,first things first, best wishes eurochamps67 keep it lit as kevj would say, now id like to ask a question we won the big cup in 67 man utd won it in 68 had the 2 teams met in the 67 or 68 final what captain would be holding the trophy.
Keep it lit is my original sign off.
SAINT STIVS humble apologies thought that was kevjs hh.
I read that Whisky exports to the rest of the world raised over 4billion in sales, in view of the warnings we receive here about how harmful alcohol is to your health do these exports have the same message for consumers in other countries, if not then litigation could follow from people harmed by alcohol who were not given this advice.
DESSYBHOY
Warnings are on the bottles just like cigarette packages – who reads them is another thing entirely
PL on radio Shortbread…
:))))))))))))))))))))))))))))))
;)
Just pulling yir leg. Yes I used it first but happy for anyone to.
Gene
I wasn’t sure, thanks