I want to take a look at what Uefa might do this week that could have an impact on others, as well as our finances. Expect lots of news from Uefa, who have a videoconference on Wednesday and Thursday. We should learn how last season’s Champions and Europa Leagues will conclude, what next season’s qualification competition will look like and the calendar of dates for next season, with guidance on transfer windows.
A relatively minor point with more bearing in Scotland will be discussed on Thursday, how Financial Fair Play (FFP) will be enforced with respect to the crisis. You will remember we discussed Newco’s position with respect to FFP in a lengthy article in February. Without revisiting detail, the scenario required them to sell significantly before the 30 June financial year end to prevent them breaching FFP regulations.
FFP breaches do not instantly or automatically lead to disqualification from Uefa competition, but it would require the club to take “rehabilitative action” or else face consequences, including the ultimate Uefa sanction. Rehabilitative action means cutting costs, significantly so, in the case of Newco.
Current FFP rules allows for exemptions due to exceptional circumstances, which the current crisis certainly is. The process effectively adds-in revenue or subtracts costs you would otherwise see were it not for the exceptional circumstances, so in theory, Newco could claim allowance for a few lost revenue (although unlike Celtic, this will be very limited as they did not offer refunds).
We have to hope that no substantive changes are made to FFP rules.
Scottish football was a different place when we looked at Newco’s finances in February. Celtic’s interim accounts to 31 December showed £32m in the bank, we were on our way to nine-in-a-row and finances were very stable. 10 of the 12 others in the Premiership were living within their means and we had a new TV deal to look forward to. Since then, red ink has bled everywhere.
Our operating expenses for the first 6 months of the financial year were £7.6m per month. The manager, coaches and execs have taken pay cuts, while furloughed staff costs are met by the taxpayer, but I expect the deferrals players took will all have to be paid by the time this financial year closes on 30 June. Cash burn since 1 January will not be as high as £7.6m per month, but it will be close to this until lockdown started on 23 March and no lower than £4m per month since. There has been very little income since the new year (Copenhagen, some Scottish Cup and league receipts, retail), with money going out for refunds.
So what does this mean for our finances? The £32m balance at 1 Jan is likely to get us through to the financial year-end, plus or minus a couple of million either way. By 30 June, season ticket money will be in, but there is no way of knowing how well tickets will sell compared to previous seasons (we’ll not sell more, clearly).
Until lockdown is over, there will be close to nothing from stadium operations (£7.6m last season) and retail (£12.9m last season). The SPFL hopes to have fans attend games by October (the Championship business plan is counting on it), but we are looking at July, August and September with little income from many revenue streams. Next season’s finances are down to season ticket sales, Uefa qualification and a late bump from 10-in-a-row merchandise during what is likely to be a recession.
Champions League qualification brought media rights income to £33.9m in season 2017-18, the following season this dropped to (a still impressive) £15.7m for the Europa League campaign (other Euro revenues, like ticket sales, are not included in these figures).
If we qualify for the Champions League next season, I expect we will break-even. Progress through the Europa group stage and we will make a sizeable loss and a return to debt. Failure to reach the Europa League group stage would see us return a larger loss than at any time in our history by a huge margin.
Having spent this week looking at our finances and those of others in the Premiership, there are lots of unknowns ahead and just one certainty. Uefa are expected to confirm qualification competitions will be a single game each round, drawn randomly, home or away. Celtic should be seeds all the way through, but that advantage is lessened by an expectation of some away legs. Luck of the draw will never be more important.
We are going to win the league; I could not be more sure of this. I have not touched on Newco’s finances here but if you are interested, you can read back what we discussed in February. We might have problems to manage but they are a busted flush. It will all play out in the months ahead.
The season ahead could return the largest loss in the next 50 years of Celtic history. If so, we will need to work our way back, which will not be done overnight. Even the ‘sell to England’ strategy is not likely to be effective, as transfer fees are likely to suffer due to the crisis. Oh, and I think we need players for several positions, at least as cover.
When you look at Partick Thistle and others throughout the world, these are First World Problems. We have 10 to focus on, but just as winning nine-in-a-row did not happen as we wanted, the journey between here and next May is likely to be a rocky road.
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An dun
They suspend my payment after a phone call – thought they’d rolled it out
Not a cheep from the media
rule brittania, britain never shall be slaves, calling asylum seekers fenian bastards,
grown men, mobbing together attacking kids,
who knows where to start with this.
the police softly softly approach last weekend of not making arresst inspite of mayhem all around them, well it emboldens them, they can do what they want knowing they wont be lifted,
get the horses on them,
Gene/Prestonpan Bhoys
Fair enough. Glad they done the right thing in the end.
I’ll wait to see how we get on in August and September before I go back to them.
Just saw the pictures from Glasgow. If you voted for Brexit these are you people.
What odds there will be a ‘walk’ round the cenotaph on July 12th, complete with flutes, drums etc unless the Glasgow polis sort them out before then.
Seems English have learned from the Germans on sound effects at closed door games. hope Celtic do something similar, do you think they’ll allow some reb songs🎹🎷
DAVID66 on 17TH JUNE 2020 6:44 PM
Just seen a phot of George square Huns out again.
This will go on and on and on, unless the polis beat the shit out them
#################
The polis might not want to beat the shit out of some of their off duty colleagues by mistake!
Those pictures from George Square must be made up – nothing on BBC Scotland news online.
Tierney lines up for Arsenal tonight…..
https://news.stv.tv/west-central/justice-minister-condemns-disorder-as-racist-thuggery
The Justice Minister aided by his civil service lackeys needs to get a conference call arranged tomorrow with senior Police officers. “Get right on top of that shower of right wing, hate-filled, pathological, sectarian nutters” has to be the unambiguous message. This tip-toe approach and under playing such loutish behaviour cannot prevail.
Hope Gerrard is watching and recognises the dangers of patronising people who are motivated by such levels of hatred. He is highly media trained but probably not the brightest intellectually, but his advisors will know the dangers of personal reputational damage.
Think I’ll turn over and watch ‘the joy of painting’
go on, try no greet
——————
Celtic Underground* Retweeted
Natalie
@natalied1888
·
Jun 16
One of the last wee videos I took of my granny, singing John Thomson as she looks over the clyde to celtic park, one I’ll treasure Green heart
https://twitter.com/i/status/1272845506713133059
Daily Record reporting that Scott Brown to blame for the trouble in George Square, seemingly he took his dog out for a walk in Fife and that triggered the mayhem.
Celtic Research Retweeted
Davenant Camera with flash
@SirWilliamD
·
Jun 13
‘Irish Traveller Family’, Killorglin, County Kerry, Ireland, 1954 a fascinating Kodachrome by Inge Morath. I love everything about this photo.
https://pbs.twimg.com/media/EaYeYRZXkAEQ4Wp?format=jpg&name=small
https://youtu.be/Ss-P4qLLUyk
Brilliant
GENE on 17TH JUNE 2020 7:37 PM
Think I’ll turn over and watch ‘the joy of painting’
Whit joy!? Took me 4 days to do my living room!
No games at the Bigotdome in 3 months, no marching and no Louden open…
Did we expect anything other than this racist release in the last week,,,,?
im getting worried
during lockdown ive started watching repeats of an 80s tv series ‘The Joy of Painting’
i should remember it from my teens but i dont
maybe its because i know nothing about painting and dont have an artistic bone in my body
and art was easily my worst subject at school. anything more than drawing matchstick men and im out
so no idea why i keep watching it
🎵🎵
i wanna, i wanna, i wanna be Edvard Munch
🎵🎵
GENE on 17TH JUNE 2020 7:37 PM
Think I’ll turn over and watch ‘the joy of painting’
Whit joy!? Took me 4 days to do my living room!
—–
spooky 😱
And that was only one coat!
I wonder what team these football fans/counter protesters support?
Surely Jackson, English and Ibrox Chris must be on the scene and all over it?
Here’s a couple of Cel’ic quizzes to while away some time -https://www.sporcle.com/games/JackWood93/old-firm-derby-players
https://www.sporcle.com/games/Psyprus_Sun/highest-rated-old-firm-players-fifa
I’ve done the second one – its the FIFA computer game rankings, but if like me you don’t play them it’s fine.
I got 58 out of 80 (I was bothered about Der Huns)
.
Let’s try this one again…
https://www.sporcle.com/games/JackWood93/old-firm-derby-players
Wasn’t bothered about Der Hun… 😒
Enjoyed the article by CelticByNumbers, if he’s looking in, about our shift to 3-5-2 and getting the best out of our 2 best players – Eddie and Callum…
Can’t do the linky thing but well worth it. Hope it sticks.
GLENDALYSTONSILS on 17TH JUNE 2020 7:18 PM
DAVID66 on 17TH JUNE 2020 6:44 PM
Just seen a phot of George square Huns out again.
This will go on and on and on, unless the polis beat the shit out them
#################
The polis might not want to beat the shit out of some of their off duty colleagues by mistake!
————-
😂😂😂 To True
D. :)
Sideshow Bob
what an arse he is
AN DUN on 17TH JUNE 2020 6:50 PM
You could claim 2cmonths credit with BT APRIL& MAY
What about semtex to scatter huns ?
Side show Bob doing what he does best – gets a red
2-0 city
Sideshow Bob came on as a sub after 25 minutes
his ridiculous error caused man citys first goal just before half time
and he just conceded a penalty which city scored and he got sent off for the incident
a muppet
kieran will struggle to improve playing in a defence with him in it
Let’s all
The bench is his best position
He must be doing, or have done, something right over the years to play for the teams he has but he is an absolute bombscare.
Community
Season Ticket Refunds
5th June 2020 Celtic Trust 6 Comments
The Celtic Trust has, over the last month or so, been in discussions with the Club regarding arrangements relating to the truncation of the 2019-20 season and the implications for the value of the season ticket, as well as the arrangements for next season.
We understand that as a well-run, successful organisation, Celtic is in a better position than many clubs in Scotland to weather what will undoubtedly be a difficult economic period. However, it is also the case that Celtic’s financial commitments are greater than most clubs and it will not be immune to the economic impact of Covid19. On that basis, we support the club in asking those season ticket holders who can afford it, to forgo the refund of a portion of their 2019-20 season ticket price. We are clear, as was the club in our discussions, that supporters are absolutely entitled to take the refund and it is an entirely individual decision for each supporter given the financial impact of the lockdown on many families.
The arrangements for obtaining the refund (ie having to print out a form, post it in and receive a cheque in return) have caused a great deal of disquiet among the support and we have been in discussions again with the club to suggest they change this to a more manageable and easy system. We suggested that an email be sent to all season ticket holders with a link to an online system of application. We also offered to post an editable version of the application form so that season ticket holders could download it, fill it and email it back.
Unfortunately, the club has informed us that they have a system which is ‘working well’ and won’t accept emailed forms. However, in order to support those who wish to obtain a refund we are providing the link here [http://www.celticfc.net/refunds].
Moreover, we have been advised by the club that those unable to print out a copy of the form can have one sent to their address by emailing the club at this address: refundenquiries@celticfc.co.uk .
For what its worth i hope Hearts and Partick wipe the floor with the SPFL. Doncaster has had it coming for long enough.