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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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  1. jinkyredstar on

    Eurochamps

     

    Had a wee bit of 67 today with my visit to Estadio Nacional- Larry was with me

     

    We both send our best

     

    God bless

  4. WeefratheTim on

    LEFTIE

     

     

    Looking forward to meeting up again at the usual place when these health issues clear. Take care P. HH

  5. stephbhoy on

    If we sign players on this two Year cycle ala vw, vvd and then sell for profit does that not stabilise the balance sheet in times when c/l is not achieved???

     

     

    Next season it looks like we will be selling dembele, amstrong and boyata with vvd money to be realized thats well over £30 million banked without kicking a ball or c/l football and without preformance bonuses. Get in the c/l and you know the story £30 million minus bonuses.

     

     

    Outside those players mention above i can easily see KT, sumonivic, ncham also going for stupid money with many more in the squad having good value. We are more than well covered moving forward.

     

     

    Celtic the football team will do nothing if celtic the business is not operating. Both feed of each other. It makes sense to try to grow both to help realize the clubs full potential.

     

     

    I would be more worried if we had nothing in the bank and no good players than i would be if we were building up money in the bank.

     

     

    HH

  10. Phyllis Dietrichson on

    WITS – not sure you’ll believe this one, but Casa Tall is ready for the Triumph. 40 /1.

  13. Turkeybhoy on

    Who would win in a fight between,A Risk Management Assessor from CQN,and Arnold,the Accountant from Follow Follow.

     

    Would anyone care?.

  14. TheLurkinTim on

    If am like you…..just a leavinging tight fight…..a bread ;-))

     

     

    holywoodpCSC

     

     

    H.H.

  15. Park Road 67 on

    ITSCALLEDTHEMALVINAS

     

    I’ll be at the Celtic Musical on 12th May with my good lady and my cousin and his wife but wer’e at the matinee show earlier on HH !!

  21. the_huddle on

    Turkeybhoy on 9th February 2018 10:46 pm

     

     

    Who would win in a fight between,A Risk Management Assessor from CQN,and Arnold,the Accountant from Follow Follow.

     

    Would anyone care?.

     

    ——————

     

    I suppose those who spend their time between Follow Follow and CQN might care ;O)

  25. Gordon64 on

    PR67 I’m going to the matinee show and off to CP in the evening for the Vogue CSC 50th anniversary do. Hh

  30. Art of War on

    Weefra- good to see you posting buddy. Miss the lambing posts, different times I suppose. Keep well.

     

     

    Topkat – excellent news, stay strong and I like the fact you thought of Eurochamps67 despite your own battle.

     

     

    Eurochamps – don’t know if I could be so positive. Inspiration.

     

     

    Weet weet weet – the community still has you in its thoughts.

     

     

    Everyone else, hope you keep keeping on.

     

     

    Celtic Financials? Doesn’t keep me awake at night thinking of the cash in bank. Just look forward to seeing the team and hopefully playing well.

     

     

    Never demanded how we spend/invest as not remotely qualified. I look for my result on the park. How it can cause so much angst in others is beyond me. Demand demand. Feckin childish doing that on a blog. Changes nothing.

     

     

    Jags tomorrow. Typically a close game with one or two goals in it. Only been two anomolies in last 5 or 6 years when we score more.

     

     

    Mon the Hoops!

  33. Gordon64 on

    I didn’t believe Diego Godin the hardest and arguably the best defender in the world could go up in my estimations but he managed it this week by going for a challenge with the Valencia goalie and leaving his teeth in the goalies arm.

  34. Phyllis Dietrichson on

    WITS – yes French and lightly raced. TG says its ripping up the gallops though.

     

     

    You know there’s no such thing as a tip for Cheltenham, anything can go wrong.

     

     

    Ive gone for the win though – good luck to us.

  36. corkcelt on

    Don’t take it as official but I have just heard that Liam Miller has passed away after a massive battle against that Bastard disease.

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