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Staggering interims, commercials, costs, little trading

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By on CQN BLOG & Comments

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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  2. THE EXILED TIM on

    I am happy enough with the balance sheet, it bodes well for the future, a couple of years I would have been beeling but those who we want to dine with have moved so, so far ahead £30 mill is chicken feed and spending it in many ways would be a waste of money, we are doing well in sectarian land, we have a top manager and coaching team, we have some very good players and a few weans are coming through, all in all for this day and age we are in a good place.

     

    What is the dream, do we sell our soul, who knows, all I want from the club is for them to stand up to the cheating and the corruption.

     

    …………………………………………………………

     

    As for who buys the players, I see the usual pish about Pedro buys the crap and the manager buys the good ones, not a single poster has ever said that, not a one, the policy was to buy in on the cheap, develop and sell for a profit, they told us this is what was happening, and yer man John Park decided on who was brought in, the coaches coached, this all changed when Brendan was employed, I never had a problem with the other policy apart from the fact that Park wisny the best at his job, obviously Brendan thought the same as he was the first to go when he took over, Park did have a few good hits, Vic was a cracker, VvD wasnt down to him I understand, but he went cos he was crap at his job, Pedro should have got rid long ago.

  4. Zbyszek on

    EUROCHAMPS67 4:46 PM

     

    Good luck. May God give you strength to go through hard times. Speedy, full recovery.

  10. mike in toronto on

    I’vehadtochange

     

     

    Laurie Anderson was Lou Reed’s partner … bet there were some strange goings-ons in that house.

  12. North Cyprus (Baku no more) Bhoy on

    TONTINE TIM on 9TH FEBRUARY 2018 3:13 PM

     

    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.

     

    ==================================================================================

     

    Thanks for that, TT. Got Rodrigo y Gabriela playing along on YouTube as background music to tonight’s surfing – excellent musicians. :-)

     

    HH

  15. i'vehadtochangemyname on

    sounds like it MIT- weird thing is I love the song but it should feel like watching madhun ref a match

  16. i'vehadtochangemyname on

    eurochamps – will be thinking praying for you – let us know how the chemo goes

  20. mike in toronto on

    EC … sorry … I must have missed your post,but I see a reference to chemo … I hope everything goes okay for you.

  21. oldtim67 on

    Paul67 etal.

     

    I’m quite happy with the money that Celtic have earned this season,and any other season for that matter, when we made money, but there seems that a few on here are not happy the way that Celtics PLC spends this spare cash, me I would bank it and wait for the first sign that we are not earning in this disfunctional world of football that we are living in.

     

     

    We will never keep up with the Jone’s living down the road, the day will come when those teams that get £100 m just to put football teams on the park to entertain Television audiences across the world ,It will have to stop.

     

     

    We will never, ever win another European Cup while TV companies subsidise clubs down South,they seem to have forgotten that by giving billions to the few and forgot about the rest of the UK of football, The T/V companies should be ashamed of what they have done to world football in Scotland, as well as in the other Counrties in the UK, we all pay for a Television Licence, but they forgot to divide the money more fairly, One English team gets £100 m while in Scotland the whole of the four divisions don’t get anywhere near that figure, it makes me sick that they can give that amount of money to any team never mind giving each team in the EPL that £100m, and if you get relegated, I think you get the same amount to see you over the hard times that lie ahead.

     

     

    When Celtic won The European Cup we kind of played on the same level,The Italians would be a bit better off than us but nothing like it is at present, and the other teams that we beat were pretty much on the same wages as us, I think the only difference was that our team spoke the same Language and lived around 15 miles from our Park, Until this gross unfairness stops we will never again be on a level playing field.

     

     

    Oh,And advertising doesn’t make you drink,smoke, or take any other substance,it’s always your choice,no-one forces you to do these things, I have to be careful what I say about the drink question, as I got deleted by Paul when I wrote a wee story about myself about 14 years ago, that I was a bit of a Piss Artist when I was young, no sweary words, just that I said I was a bit of a P..s A…..t when I was younger, I gave him a call asking why my post was deleted,the only thing I can see is I called myself a bit of a piss artist, and Paul came back and said that was the reason it was deleted,He said I shouldn’t degrade myself like that, Long time ago,and I can honestly say I’ve never had a post deleted since,mind you there weren’t any monitors back then.

     

     

    By the way, I Drink, Gamble, and Smoke,and it wasn’t any advertisement that made me do these things. Just my stupid self.

  23. big packy on

    okay bhoys so nobody wants to talk to me only gene,thats okay, im gonna take my green specs off here and say if jinky had got the same tv and radio exposure that george best got he would have been voted best no7 in the world in that era any body agree or disagree.hh.

  27. mike in toronto on

    OldTim

     

     

    Gven what passes for banter on here sometimes that seems a bit harsh ….

     

     

    So, we are allowed to call other posters names, (not suggesting that you do), but we aren’t allowed to say those same things about ourselves?!

     

     

    Given Celtic’s traditional connection to Catholicism, and Catholicism’s tradition of self mortification, that seems a bit unCatholic of CQN!

     

     

    We can fix that … with a bit of Pavarotti singing Ave Maria..

     

     

    https://www.youtube.com/watch?v=ojeLyPo_Wz4

     

     

     

     

    And, yes, that was all just an excuse to get a bit of Luciano on the friday night music session.

     

     

    :)

  29. mike in toronto on

    Big Packy …

     

     

    how you doing mate? How are my 4 legged pals doing?

     

     

    I should find out this weekend if I will be getting a pup at the end of this month (someone may be backing out because they wanted a girl, so a boy puppy may be available)

  32. blantyretim is praying for the Knox family on

    I’m undecided on the figures because I’ve always been a Celticfc fan rather than a Celtic PLC fan

     

    We need to generate money to be a successful club but we also need to appreciate the eejits like us who pay the buck to support our team

     

     

    Ultimately I’m a fan of the bhoys in the park and not the balance sheet

  33. big packy on

    MIKE IN TORONTO, so thats you and gene talking to me, ive just tried getting a bit of a discussion going on here but obviously now that im 65 im an old fuddy duddy, thats okay mike i can live with that it wont diminish my love of celtic and this blog, hope you are okay,frankie and benny seem okay but benny wont go out at nigh, obviously related to the attack on him, luckily he is only 8 months old so hopefully will grow out of it, any way enough about this old fuddy duddy how are you keeping lovely to think you might be getting a pup fingers crossed keep me informed mike.hh.

  34. cathedral view on

    How about a discount on next years season books to celebrate our healthy financial position.

     

     

    That would be nice.

  35. Saint Stivs on

    CV.

     

     

    Your bang on.

     

     

    All that money and they couldn’t get the pricing right for the Europa game.

     

     

    Greedy actually.

     

     

    Give something back.

  36. mike in toronto on

    Big Packy …. if it took until you turned 65 for CQN to think you are an old fuddy duddy, you are doing okay …. I think most thought that about me when I was only about 40!

     

     

    I suspect that you are right about benny … a bit of time, and some patience, and he will eventually get over it ..

  38. Malorbhoy on

    Ernie Lynch

     

    Thank you for your reply, Barrow Bhoys not going up

     

     

    Sannabhoy

     

    Will check out those two clubs, Thanks

     

     

    There seems to be a lack of interest about this Cup Game for some reason

  40. fairhill bhoy on

    I would love to know who on here went and got addicted to magners,betting,people’s or cr smith:-))

  41. petec on

    A very interesting article.

     

     

    Being believers disney mean you can spend willy nilly.

     

     

    Apparently being deceivers means you can.

     

     

    ………………………………….

     

     

    ………………………………….

     

     

    The Ticket increases this Season, IMO, were not right.

     

     

    I’m not talking about the SBs.

     

     

    ………………………………………………………

     

     

    Season 2 Lets add on a small amout – lets say £3 everywhere. Yeah they won’t notice it.

     

     

    Grrrrrr

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