Skip to main content

Celtic in good shape financially

The authoritative Swiss Ramble reviews the finances of Celtic.   He concludes that they are in good shape financially, despite the pandemic, thanks to their sustainable approach, though this owes a lot to their player trading model. Champions League qualification is also important, so the expanded format should help future prospects.

Comparing their cash flow with Rangers in the last 10 years, we can see a big difference in approach. Celtic have made much more money from operations and player sales, which Rangers nearly matched via £78m loans and £38m share capital.

The £2.5m debt is small, even by Scottish standards, and is a long way below Rangers £16.9m, which would have been even higher without them converting £66m of loans into shares in the last four seasons. Note: Celtic’s figure excludes £4.2m convertible preference shares.

Celtic spent £38m on player purchases in 2021/22 after Postecoglou’s arrival, easily a club record, including Jota, Carter-Vickers, Furuhashi, Starfelt, Bernabei, Abada, Juranovic, Giakoumakis, O’Riley, Hatate and Hart. The gross outlay in the last 5 years was £95m.   £38m player purchases in 2021/22 were far higher than Rangers £8m, though both clubs spent significantly more than the rest of the Premiership combined. However, there have been few acquisitions this season with Haksabanovic being the main arrival.

The wages to turnover ratio decreased (improved) from 85% to 67%, but still higher than 58% in 2018. However, this is still better than Rangers 77%.   The wage bill rose £7m (14%) from £52m to £59m, only slightly lower than the club’s high in 2018. Wages have remained in a relatively narrow range of £52m to £59m over the last six years.

Commercial revenue rose £3m (11%) to club record £32m, mainly due to higher retail sales, thanks to a “more normalised trading environment”. This is by far the highest in Scotland, well ahead of Rangers £20m, though they report their merchandising sales net of costs.

Match day income is particularly important for Scottish clubs, given the low TV deal, accounting for nearly half (49%) ofrevenue. This is in stark contrast to English clubs, e.g. we can again compare with Norwich City, where match day was  only worth 8%.

Average attendance in 2021/22 was 56,177, nearly 11,000 more than Rangers 45,314, followed by Hearts 15,723, Hibernian 15,043 and Aberdeen 11,608.

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more