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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I’d a drink today with a regular of the Stanley bar, Kinning Park, the only Tim pub in the area. I knew about the Huns attacking the shop after the 89 cup final and how they set about mostly older punters with baseball bats. Anyway the guy told me that it was all too common an occurrence, saying the windows even got panned in after a 1-0 Deadclub win. After finally reporting it to the Police the owner had a visit from them. On surveying the situation Plod’s advice to the him was ‘I can only suggest you fly the National flag from these premises’.
According to Raymie the Irish tricolor had never been flown from The Stanley bar.
Matt
thanks
Matt
Thanks for that
Thank you to all you well wishers. Your support is very much appreciated.
My operation was a complete success. However doctors say survival rates improve to 30% when combined with chemotherapy. So I now have 6 months of chemotherapy.
I am very strong, positive and fit and confident of regaining full fitness should I follow the doctors’ advice. Seemingly one’s immune system is weak during chemotherapy making one susceptible to infection and hospitalisation.
Therefore one must avoid large groups where there is a greater chance of infection.
Sadly that includes visits to Paradise in the medium term.
I am in very good health and confident of a complete recovery. I just need to obey instructions and minimise risks.
Zenit ticket still up for grabs.
Eurochamps67
JC2-if your about,sat with my cousin today at our uncles funeral.
Eurochamps67,
I’d take Camu Camu.
I know for a fact it really boosts the immune system. My immune system was not fighting anything off a long time ago now.
When my Mum had her Radium treatment, all I was worried about was her Immune System not holding up. The CC was the obvious thing after her treatment in my Mind. She was swimming Today in the Meadow Centre Dumbarton. ;)
God Bless.
Celtic to Shine Tomorrow.
EUROCHAMPS67, still catching up.take care
Great quote from Graham Murty today…..
” The fans here have been through a great deal at this club recently and the squad that deliver the first
trophy to them will see massive outpouring of emotion ”
Finally, an employee of Sevco accepts they are a new club.
Heard a rumour that Close Brothers are now getting into football clothing …
On the who signs the Players line. While Brendan was manager at Liverpool, the club took player acquisition out of his hands. Brendan had previously got Damian Comoli pushed out. Brendan would not take a job where he didn’t control acquisition.
What I understand that at Celtic the Board set Budgets for the Football Department this budget includes transfers in and out. Brendan decides on what type of player he is interested in and the Scouting team comes up with targets which then Brendan vets. He decides after taking advice from scouts and others whether a player fits his profile. The budget is not rigid and Brendan can over or underspend in any given window bringing forward or deferring expenditure. A good example is Scott Bain who would have never been signed without the Gordan injury.
The commercial deal is discussed between Celtic commercial people and the players agents and then the Final cost is given to Brendan who has final say on signing or moving to another target.
Before Brendan was appointed I am sure he was involved in discussing targets and before he agreed to come then Ronny Delia would have filled the job. Kris Ajer was I am sure one of Ronny’s
What Peter Lawwell or any the suits don’t do is comment on the football and in player Valuation. They are good at doing deals not deciding whether a player has suitable skills. They don’t set the tactics, take the training nor pick the team. Those that are qualified to do so take these decisions.
Celtic are a PLC but most of all we are a football club or “more than a club” if you like. while financials are great they are only great for how the effect our on the park performance. I am sure the Board recognise this.
I’m glad we have money in the bank. If we don’t qualify for the CL we can carry on without having to sell any players. Possibly even two years out.
Once you have to start selling your best players it becomes even more difficult to qualify.
Then it becomes even more difficult to attract new players of a decent level.
Would everyone rather we had no money and had to sell Tierney?
nice spot nally81
Reading Peter Lawell,on his piece about the changes to the S F A,then he speaks about the club being in good shape, Financially,then he mentions, about The Hotel ,The Musuem,and the Retail Shop,I got the feeling,that Celtic are not going ahead with them,ok with me regarding the Hotel,but we do need a bigger Superstore,and the Musuem,on the same level,There is plenty of Land available , which I’m sure Celtic own,oh and they might as well Extend the Ticket Office , which is rather small,just my opinion.
Hello there Bhoys. Big game coming up for Brendan and the Bhoys tomorrow and delighted to report I’ll be making the trip over early in the morning from Ireland. I really hope we make a positive start to the game and take the game to Thistle from the off. An early goal will set us up nicely.
Off to bed now as we’ve a 4am start in the morning. Looking forward to seeing Celtic and Paradise again.
HH
North Cyprus (Baku no more) Bhoy.
Thanks for your comments on my earlier post,Here are two of my favourites the great Ali Farka Toure and Ry Cooder,
https://www.youtube.com/watch?v=9EPBvgZyQLE&index=29&list=PLArWjq-jl8kb7agpShXY2C_VmuJPf0-fl
EUROCHAMPS67
Your positive attitude and outlook do you great credit!
You can beat it!
God bless!
MAH
Hope you are good too!
Wee prayer said!
God bless.
MARRAKESH EXPRESS on 9TH FEBRUARY 2018 8:28 PM
Sorry (but not surprised ) to hear of attacks on the Stanley bar,I use the garage in same street
for repairs to taxi,the guy who fixes it is a bluenose ,he gets on well with the auld yins from the pub
banter back and forward but no bitterness.
Some peepil just shameless.hh
Nally81 @ 8.54
Good shout
Looking at the accounts briefly, it looks to me like Celtic operate as a Europa League Club in terms of the budget. The cash difference been Europa and CL is unspent and essentially what is left in the bank. We have upped the ante in terms of expenditure since 2016 but no risks are being taken. If we fail to qualify for the CL the profits will be down but we wont need to tap into the money in the bank as long as we at least reach the Europa. One player could be sold to balance things out if required although failure to qualify for the CL doesn’t bare thinking about.
The downside is that we very much look like a Europa League team in the CL and that will not change anytime soon. We should aim to be competitive and to avoid hammerings but even achieving 3rd place is a bonus, and shouldn’t be an expectation. First world problems you could say.
At the moment, on the footballing side Celtic are operating at around 75%. We could go up a gear to two but that would be unlikely to bring any more success in domestic football or put a dent in Europe. Whether the cash in the bank is there for a rainy day, for the Hotel project or to help get 10 in a row I don’t know.
The VVD money isn’t budgeted for so in theory that could be reinvested in the team. Moussa will be sold in the summer, it’s just a question of how much, it could be £10m or £25m depending on what he does between now and May. In theory we could spend record amounts on transfer fees but wages are the real problem. Paddy Roberts being a prime example, we could in theory stump up the £8m but the commitment to £2m a year over 4 years makes the deal unrealistic.
One thing i disagree with, at least in financial terms is that the CL is vital. It isn’t and the accounts clearly show that. In footballing terms it is however very important.
Anyway, nobody is taking Thistle seriously tomorrow which should be the immediate concern.
Get Interims
Get interims
north curve csc
Ma heated driveway could beat your heated driveway cos ma daa’s a better fighter than your daa.
NegAnon2
Who would win in a fight between the bean counters and the exponentialists?
T
Hello again all you young rebels.
Best wishes to EUROCHAMPS on his recovery and to anyone else
suffering through terrible illness.
Keep the faith.
H.H Mick
Graeme Murty………………..your fired.
Zombie zombie csc
Ivehadtochangemyname
I may be in the minority however I have never not enjoyed that time.
EC67.
Good luck and keep the faith.
Balance sheet? Can we not look at tomorrow’s game first?
FWIW, I think the plan is sound, with the increasing marginalisation of leagues like the SPL our club has to have enough in reserve to keep us ahead of the Manky Mob and what they may bring to the party.
My gripe is that our loyal supporters should be given a bit of the pie. To charge prices we have for the Zenit game sucks.
Anyway, looking forward to joining 25,000 of us tomorrow. HH
Time = tune.
Eurochamps67
Your words are inspirational. You can win this fight.
We are all behind you, as you will already know!
david17 on 9th February 2018 9:40 pm
—————
Good post, we are a Europa team and club right now, just the way of the world at the moment.
Crazy to think we could spend £100mill in the summer and still not be guaranteed to get out of the CL group stages (though if we did spend £100mill Id at least hope we’d make an easier job of qualifying :O)
By the way folks, i’m TTR, just decided to change my username.
Hi,
Just popped in to wish EUROCHAMPS67 the very best for his treatment. Also, anyone else who is suffering a hard time at the mo. As for the rest, I hope you are all well. HH
Hey look who is back……..been in hospital for past 5 months . came out end of Dec. had Leukaemia and now in remission…so had my fair share of Chemo…..anyways Eurochamps 67 stay strong….sad to say few of the guys in the ward didn’t make it…..got to stay out of the cold and crowds so no Hoops til the good weather.
Gene- full PL interview on Shortbread tomorrow at 2pm..HH
TTR,
What are you trying to pull?
Where is the Deed Poll?
Everyone knows that you need a deed poll to change your name, so surely you must need a blog deed poll to change your blog name.
Looks like I have secured the hottest tickets in theatre land.
The Celtic Story is on at the Pavilion in April/May. I was looking at getting two for the last night of the run-12th May which might be the last day of the league season.
Went to the Pavilion seat website and there’s only about ten left. Mrs Malvinas and I are up with the rabble in the balcony. This will be her first exposure to the famous Glasgow Celtic as she is from Dumfries and they don’t play football there.
Any other CQN’rs attending that night ?
Interesting comments from PL this evening, his comments on Regan appear to rule out the theory that he stood down because of the ongoing European Licence investigation.
http://www.bbc.co.uk/sport/football/43002807
Weefrathetim
Good to see you posting sir.