Transfer strategy, where we are

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If anyone tells you we are about to bid €7m on a guy who scored fewer league goals than Billy McKay last season, and who was signed for €500k last summer, don’t listen to them.  Nonsense like this is 180 degrees away from strategy.  Where would such a player’s sell-on value increase to?  It’s just not going to happen, nor should it, it would be a vanity purchase, the likes of which old Zsa Zsa himself would consider.

The last season we have figures for (season 2011-12), when we had Europa League football, Celtic lost £7m.  Since then three significant things have changed:

We’ve sold Wanyama and Hooper for over £17m (before deductions).
We got back into the Champions League and earned an additional £20m.
Season book sales dropped and this season cost £100 less than before.

Cutting £100 off the ticket price will bring in £4m less than last season.  All other things being equal (which they will not be), this would give us an £11m deficit before Champions League income and any trading surplus.  In short, to retain equilibrium, we need to reach the Champions League group stage more often than not.  Money from Uefa is not so much a bonus, it is necessary to push us into the black.

I know we covered this last week, but £17m for Victor and Gary will not, on its own, equate to £17m for new players.  Gary and Victor were both on their first Celtic contracts when they left, neither of which was near the top earning position (although both were offered top earning contracts).

We’re not going to spend £17m on transfers and be able to pay the new players from the money saved by not paying Victor and Gary.  Instead, the boost to the football budget from these sales will almost certainly disproportionately increase wages, leaving a lesser amount for transfers (if we sign four players for £2.5m each, we’ll probably have to pay each more than the average of Victor and Gary’s wage).

Knowing where they came from, I reckon Victor and Gary cost approximately a combined total of £1m p.a. in wages, the bulk of which would have gone to Gary.  If we bring in four players, each costing multiple millions, they could easily cost us an extra £2m per annum in wages, or £8m over their four year contracts.

In short, there is enough money available to buy several good players, for decent money, on high wages (for Celtic).  This is a good, sustainable, place to be, but it is not transfer window nirvana.  We have moved from a position of carrying a perpetual loss to being able to afford an increase in football budget without splurging into debt to fund it.

This isn’t a detailed budget analysis, there are lots of other variables (McCourt, Rogne etc off the wages, not Murphy, whose wages were off the books already), non-football budget cost inflation, considerable drop in one-off ticket sales (20k seats for £42 each at Rangers games twice a season) and commercial income from 2011-12, variations in season book sales (I hear they are marginally up on same time last year but still down on 2011-12).

The big challenge for the club is to ensure the playing squad is good enough to qualify for the Champions League group stage, and to compete when there, more often than not, without indulging in casino football every year.

We stick to plan, scout and recruit players within budget and with high potential sell-on values.  €7m on a striker from Heerenveen?  Better stick it on black.

The Kano Foundation have around 40 bucketeers for their annual drive at Celtic Park on Sunday.  They could do with a few more.  If you can do your bit, get in touch: contactus@thekanofoundation.com.

Check out the 1254125 Great Scottish Run page. I plan to keep this page updated with progress on the event and other resources. When you sign up, let me know and I’ll promote your donations page.
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1,239 Comments

  1. Does anyone know which Swedish channel has the game?

     

     

    …also, Kano’s Ghirl has been declared for Thirsk on Friday. Class 4 five furlong maiden at 14:20

  2. Steinreignedsupreme on

    SSN – Charlie Nicholas wearing a black tie as a mark of respect to the English language as he slaughters it.

     

     

    Very Reserve Our Dogs, Jeff.

  3. Some laugh out loud moments this morning re Willie Pettigrew etc Brought back that feeling of anticipation as you were about to open the packet…doubler Celts were great-even big Sneddon-but Sandy Jardine and his motley crew could ruin your day…

     

     

    Definitely two medicals yesterday; I wonder if negotiations are on going or maybe it’s very early in the process.

     

     

    I see Neil called Derk the ‘Eliminator’…that could stick! A wee bit of me wished he’d named him the Liquidator. Excited by this signing as we need more pace in attack.

     

     

    BringontheSwedesCSC

  4. Parkheadcumsalford

     

     

    I’m pleased to hear that, I used to read the blog a lot and post very occasionally but for a number of reasons I haven’t been an active reader again until recently so I’m not up to speed on these things :-)

  5. Steinreignedsupreme on

    I had a long-sleeve orange Addias top with black stripes in the late 70s. Ideal for playing football, going to gigs and doing my homework.

     

     

    Orange does not belong to Huns, Zombies, marchers or even the Dutch.

     

     

    In saying that I’d probably not bother with an away top now – I think I’m going to leave it with last season’s home top.

     

    #Gettingpastit

  6. I worked with Willie P @ Cowglen, he was a great guy, level headed, remember asking when you signing for us, simple answer, they never asked !

  7. Tonight’s game is indeed going out on Sweden’s tv10, on the Astra 4a satellite, encrypted with Videoguard, whatever that is (thanks, liveonsat site).

  8. Steinreignedsupreme 11:57 on 31 July, 2013

     

    SSN – Charlie Nicholas wearing a black tie as a mark of respect to the English language as he slaughters it.

     

    Very Reserve Our Dogs, Jeff.

     

     

    :-)))))

     

     

    ~SPF~

  9. Crushed nuts? cant you just take the phone to a shop? why do they need to come to you?

  10. Dontbrattbakkinanger on

    ‘In Anglo-Saxon England as early as the 10th century, Old English medical books attest to elves afflicting humans and livestock by “elf-shots”.’

     

     

    – fingers crossed superMo doesn’t bounce an elf-shot through the ole tremblin’ mince and into the ole onion bag.

     

     

    I’m really looking forward to tonight’s game; I want Celtic to win and I’d like Mo to give a good account of himself in a losing cause.

  11. Dontbrattbakkinanger

     

     

    Totally agree with that. Hope we win convincgly tonight but hope that Bangura gives a decent account of himself. I reckon he will start on the bench. Hope we are 5-0 up when he comes on and he bags a consolation before we rattle another 3 in.

     

     

    LB

  12. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    sandman

     

     

    11:26 on 31 July, 2013

     

     

    FANTASTIC…..TA….!!!!

  13. What’s all this about Willie Pettigrew on football cards? Well past my time – I go back to the days when the Celtic players were usually pictured wearing those black training tops and your day could ruined when you opened three packs and they all had Davie Provan , Roger Hynd and John Madsen of the Hibs

     

     

    Jimbo

  14. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    Quiet on here today.

     

     

    Everyone earning brownie points so they can go tonight?

     

     

    Qualifiers are nervy occasions,you gain little for winning through at this stage,but defeat is a disaster.

     

     

    The crowd will be apprehensive,but I hope the players are in a positive mood,and been well-prepared.

     

     

    No pyros,please,not tonight not ever.

     

     

    It’s now not worth the candle(!)

  15. Just in to say…

     

     

    Prediction for the season – Celtic to reach the CL group stages and finish 3rd, then go into the EL and get to the semi-final stage. Celts to win the domestic Treble – defeating Sevco in one of the cup competitions – Happy Days.

     

     

    P.S. Can’t understand awe the flapping of feathers about Mo Bangura ?

     

    Especially from – ‘poster’ bhoy and seemingly clique leader Joe Ledley. Is super Joe a wee bit scared that, Mo will demonstrate that he’s found a manager who know’s how to play him ? Then again – maybe not ?

     

     

    Off oot – Byeeeeeeeeee :)

  16. ScotPatsFan

     

     

     

    11:21 on 31 July, 2013

     

     

    It also wouldn’t worry me if we had a flag in the design of the Butchers’ Rag with green, white and orange replacing the other colours.

     

     

    *there was one in the 60’s which was waved by punters in the corner between the Celtic end and stand/enclosure.

  17. bournesouprecipe

     

     

     

    11:41 on 31 July, 2013

     

     

     

    New Celtic Away Top

     

     

    LetsGoDutch CSC

     

     

    *if the Magners logo was white it would look nicer

  18. The guy reading out the shipping forecast on RTE radio 1 sounds Dutch

     

    Is this the beginning of a trend?

  19. Is this why we’re paranoid.

     

    Drove into petrol station in Dumbarton this morning.

     

    Still on display from June 4th.

     

    Placard advertising Daily Ranger story concerning drugs bust in flat beneath NL.

  20. WeefratheTim on

    BMCUW

     

     

    Don’t know if you read my earlier post. The bhoy’s in the “View” today.

     

     

    Weefra HH

  21. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    WEEFRATHETIM

     

     

    I did,mate. I didnae want to say anything in case it was a “Wanted” poster for last week’s pyros.

     

     

    I hope you cut it out and frame it,bud.

     

     

    Display it loud and proud!!!!!!

  22. Celtic FC Tickets ‏@CelticFCTickets 3h

     

     

    Tickets for game tonight are available in our stores, Argyle St, Sauchiehall St, Clydebank, Coatbridge, EK and Livingston

     

     

    Fill it Bhoys…

  23. WeefratheTim on

    BMCUW

     

     

    Haha very good and yes I will treasure it. Shower now, up to see ma wee maw, fish supper wi ma sister and off to the game on the Linwood bus. Howzat for a day oot?

     

     

    Weefra HH