Celtic PLC Finances
Mahe following on from your excellent article on Wednesday 25th June 2020, and with great respect I actually think the financial situation at Celtic is even worse than you stated, and will have an even greater impact on the Club.
Here are the reasons why :
The figure I quoted before of £750 Million in a previous article was an estimate based on the amount given to the Club by supporters since the formation of the PLC.
It wasn’t based on last 10 years.
‘
The importance of this is that supporters didn’t give as much as £75 million last year, which means the gap or the difference the PLC will need to fund will be much higher.
I have listed below the Celtic PLC accounts figures to 30th June 2019, with a Turnover of £83.4M.
As the figures are not more detailed, I would estimate about £42 Million (50%) from Supporters was given to the Club in season 2018/19.
I would estimate Season Tickets at £25M, European Tickets at £5M, Merchandise at £12M, which would give a total of £42M.
I have only estimated £25M out of the £43M for the Football & Stadium Operations figure, and estimated £12M out of the £18M for Merchandising. I haven’t included Multi media, or the Home Cup Ticket scheme. It could well be the case that the figure is nearer £50 Million.
Whether it’s about £42M or nearer £50M out of a Turnover of £83.4M, it is absolutely staggering to think that Supporters will still only get about 10% voting share, for the annual ongoing level of Financial and Physical support given to the Club.
I really do believe the PLC ownership model is Morally and Financially Unfair and Unjust, and will have to change.
Celtic PLC accounts to 30th June 2019 is as follows :
Turnover : £83.4 Million (2018 : £101.6 M)
Costs …… : £86.9 Million (2018 : £ 87.1 )
The Group’s revenue / turnover comprised :
Football and Stadium Operations : £43.25M (2018 : £43.59M)
Merchandising …………………………. : £18.08M (2018 : £17.71M)
Multimedia & Other Commercial : £22.08M (2018 : £40.27M)
Total…….…………………………………… : £83.41M (2018 : £101.57M)
There is likely to be massive financial changes ahead, and not in a good way.
It will be crucial for the club to get financial support from the major PLC shareholders.
If not debt will have be added, or more players sold, with fewer new players, and with the risk of less success on the park.
It would be astonishing if the PLC expected Supporters to contribute even more.
It’s incredibly important that we Qualify for the Champions League Group Stages this year.
This is particularly crucial financially for the Club this season, as is obviously winning 10 IN A ROW from a historical football point of view.
The number of Season Ticket Holders for the new season is crucial.
The need for Champions League Group Qualification is crucial.
The buying of the new Adidas Celtic Top directly online from Celtic is crucial.
The importance of managing our playing squad in terms of number and quality of players is crucial.
The importance of not having a second wave of Covid 19 is crucial.
The need for a vaccine for ongoing financial planning is crucial.
The importance of Winning 10 IN A ROW is crucial.
The need for better dialogue with Supporters is crucial.
Finally, the importance of change from a PLC to a Membership Ownership Funded Celtic Football Club is also crucial.
Celtic will continue to survive, but at what level, could well be decided by what future Ownership Model we have.
Hopefully the future will be kind to Celtic, and also kind to each and everyone of us.
Wherever you are in the world, stay safe and stay well everyone.
Hail Hail.
The above is by Celtic1member1vote
Well done sir ..
CELTICOMOV
Interesting stuff,and grateful thanks.
We certainly have a number of real-crucial!-problems to deal with. There are some about which we can do little,such as the current health crisis. Our power here is limited to wargaming theories on crowd-spacing,with the help of the SRU. Nicola Aturgeon will have the ultimate say on it.
Our European ambitions and finances are severely constrained by the greed of the five biggest TV markets,who have hoovered up 20/32 places at the table,and by the lack of a pair at UEFA to tell them to sling their hook. And our domestic TV income is similarly hamstrung by being handcuffed to the rest of the Scottish game and to a broadcaster which gives us the same priority it affords the Conference down south.
I could go on,but for many a year my main concern has been our operating costs. Round about our Seville years,they were running at roughly £50m. That was deemed far too high,and the legend of the cost-cutting CEO was born.
But our costs actually increased,and continued to do so nearly every year despite the huge drop in quality on the pitch!
They eventually stabilised-but not for long,and not at levels below what they were before the cost-cutting came in. Beats the f… out of me,that one. Always has.
Here’s a list of our operating expenses during our run of nine titles.
2011…..52.5
2012…..51.3
2013…..62.7
2014…..59.9
2015…..53.3
2016…..57.1
2017…..76.3
2018…..87.1
2019…..86.9
2020…..?
Now,looking at our squad,and having an idea of our wage structure,I doubt that our wages for the players have ever exceeded £30m pa. Even allowing for being 20% out,that’s £36m.
Where’s the rest of it going? Why aren’t these costs further itemised for clarity?
Further,the rise in 2017 from the previous year was apparently due to bonuses,but especially due the CL qualification. Yet we won the same treble again the following year but only qualified for the EL-and the costs rocketed again! And why the huge rise in 2013? Did we sign Messi?
Until there is more transparency in the accounts,we are hamstrung on our future plans. Frankly,for a publicly-quoted company,they are a disgrace.
Btw,I hope your quest for OMOV doesn’t take as long as it did in the Labour Party. First proposed in 1981,finally approved in 2014. I canny wait that long!
New Naps Competition
Starts on July 4,with a slightly different format and some VERY GENEROUS PRIZE MONEY,courtesy of…a generous benefactor!!!
Selections from UK and Ireland meetings ONLY on the applicable Saturday. A non-runner can be replaced with a selection on the Sunday.
ALL selections must be entered before the first race of the day.
Points will be decided as before. An imaginary £1 stake,and winnings credited to your running total.
Competition will run for forty weeks-which means,I think that it ends on April 10-Grand National Day.
After 20 weeks,the entrants will split into two groups,Premier League and Championship,based on standings at that stage.
Prizes are as follows.
Premier League Winner-£100
Runner up-£50
Championship Winner-£30
Runner up-£10
***
Additionally,there will be separate competitions for The Cheltenham Festival and for The Grand National Meeting,each with a first prize of £30.
And the Brucie Bonus of an extra £50 will be available for the spawny git who manages the treble!
So that’s £300 to play for next season,which is more than the SFA have managed to get in sponsorship for the Scottish Cup. Might be worth investing in Timeform,I reckon…
PS-there will also be a Royal Ascot competition. Prizes as follows…
1st…..£30free bet
2nd…£15 free bet
3rd……£5 free bet
https://www.marysmeals.org.uk/lovereacheseverywhere Mary’s Meals-Love Reaches Everywhere
Catching up from a long way back due enjoying myself too much with golf, gardens and visiting friends not seen this year! ( Sticking to Hitler in Knickers latest regulations).
First-class article Mahe and much food for thought and could not be described as biased in any way. Excellent my good man!
Belated birthday wishes to Rhiannon via Garry.
Welcome to the Madhouse (at the moment that is ) to Connor Francis whose auld Grampa is a gem! As an aside CCB’s middle name is Connor! ,as if one Timmy name wasn’t enough in 1939 for my Dad ?.(It’s actually my Mum’s maiden name ).
Can’t remember who mentioned Jimmy Walsh but any auld bugger like me will, and does , remember him. I remember him for being very slim though that doesn’t mean he was! Pickings was thin in those days too?
Finally, I know how he felt about being poor-sighted ( short in my case ) as I played in specs held roon the back with elastic bands for a wee while till I got contact lenses in Germany in late 1961. They were hard plastic in a case and a tiny plunger to take them out! They also cost 220 marks and there were 11 marks to the pound. I got them in a walk in/ walk out basis in a small town called Gutersloh (in the news yesterday ) and since I hadn’t expected that had no money with me but was allowed to walk out with them in my pocket.
Who was it won that war again?
Congratulations to Andrew Robertson and Liverpool FC YNWA ???
Celtic1member1vote, thank you for an interesting article.
My own preference is for small shareholders to be more relevant. I would like to see the ownership beings members with one member one vote. At AGMs. They would vote for the election of non executive directors. The candidates would publish their manifestos before the AGM. The NEDs would appoint the Executive directors. Professionals who would run the business on a day to day basis. There is nothing worse than management by committee. In other words, strategy would be decided by manifesto acceptance at AGMs then handed over to the execs. Scrutinised every year at AGMs.
Regarding transparency of outgoings, I agree maybe the published accounts are too vague. Too many items ‘lumped together’. However as a book keeper in the past I know for a fact that the auditors will have full access to every scrap of paper. Invoices, receipts, bank statements, internal audit reports, month-end accounts. It would be very difficult to hide anything from auditors. That’s not to say there aren’t ways of squirreling money out legally. Think of dodges involving off shore trusts, EBTs (before the Supreme court ruling)etc. But member appointed NEDs would hopefully negate such practices.
The big problem is the present incumbents. Does anyone really believe DD & Train et. al. would agree? Not bloomin likely. They are a different type of animal.
COSYCORNERBHOY
I texted Norrie an hour ago,congrats etc. Said I was glad Connor hadn’t been born 48 hours earlier,as I’d have had to work that into the article on Wednesday. And with his name-as you point out-that would have been a pleasure!
You’re an awfy man fer yer famine years nonsense. Middle of next week,I’ll put up an article from Iain Reynolds about Jimmy Walsh,et al. We won a fair bit in the fifties,crowning it with Hampden in the Sun.
Famine,my arse. Tell that to kids nowadays,they won’t believe you,etc!
It’s a fantastic article-I was gonna put it up today,but CELTICOMOV article keeps us topical-but it’s a long read. Send my Mum over to Una for a visit and crack a can or two,that would be my advice.
JIMTHETIM53
Please believe me,I’m NOT suggesting impropriety in the accounts. I’m 100% certain that every penny can be accounted for.
My antipathy towards the board is well-documented,but I’ve never accused them of theft. I’ve accused them of plenty,of course-and I stand by that. My point and I suspect also the point that CELTICOMOV is making is that while every penny can be accounted for,we can’t see where it is allocated to.
And with operating costs of nearing £90m and a worst-case 40% of that being spent on player wages,I think we need to know where the rest is going.
Congratulations to Norrie and family (especially Jenna) on the birth of Connor. Also belated birthday wishes to Garry’s granddaughter Rhiannon
30,000 seems a bit of a stretch to me but a one in two chance is much better than the one in five or six we thought it was going to be when I bought my ticket. Don’t know what I was thinking buying it so early! Knowing my luck I will get to see Hamilton and Livingston!
Btw,it seems to be increasingly easy to hide things from auditors. Just ask Wirecard,or BT with their Italian venture,as examples. Carillion,anyone?
Auditors aren’t there to be liked. Of my two flat mates in London thirty years ago,one is now my brother in law,the other was an auditor-and a better fella you would struggle to meet!
Except at work,apparently. He wasn’t there to be liked. Being liked is not the day job.
The whole auditing profession is under review in most jurisdictions as a result of these continued failures. And not before time.
Bobby, yes I know what you mean. Auditors are not there to make judgements on the strategy of the income & expenditure just the number crunching angle. That everything adds up! The nearest they get to being judgemental is in the Going Concern warnings. ‘If you keep spending at this rate….with the expected income……you will be in trouble!’ They do keep an eye on legality but that’s about it.
Your concern is WHAT are we spending money on? If the NEDs were doing their job properly they would be raising concerns about this. But as has been mentioned before on here – the NEDs at Celtic PLC are all brother and sisters in arms with DD et. al. That’s why NEDs should be voted on by members.
And btw, I’m not so naive to think that there aren’t auditors who can be ‘blinded’ or outright crooked! For the right fee.
JIMTHETIM53
The longevity of our NEDs is truly scandalous. They are supposed to be independent,like auditors in the boardroom.
Clearly not so,in Celtic’s case. They have long outlived their shelf life and need replaced-but I’ve been saying that for nearly a decade!
Yet another very good article. SC will surely be considered the top site for most Celtic supporters sooner or later?
I was catching up with yesterday’s news. I’d recorded the news as I knew I’d miss it live.
Is the ongoing court case re the scandal surrounding the boys club a matter of sub judice? I’ve not seen any comments pertaining to it so I’m guessing yes?
It was the financial implications I was thinking about, which might be relevant given what’s going on elsewhere re football club finances?
Understandable if it cannot be discussed.
Oh – and good morning. Late ko for me today. Woke up it was 7am?? Thought my phone clock had gone crazy.
Jimmy
TYVM got the info on Jimmy Walsh, the player who shares my Dec 3 birthdate. Very interesting. CCB also, thanks for the additional remarks.
I remember my Papa being disgusted that Scotland had only beaten Denmark 1-0. About 70 or 71,and he’d have been about 78 or 79 at the time. John O’Hare scored it,btw. I remember some crazy things.
“They’re amateurs,should be taking ten off them”
True,Danish football didn’t turn professional till 1978. By which time,Alan Simonsen had won European Player of the Year.
Go figure…
Fast forward to 1982,and I watched maybe the best team I’ve seen in the flesh-apart from Celtic,of course!-absolutely rip us to shreds. Soren Lerby,Jesper Olsen and Jan Molby plus the peerless Johan Cruyff. Hell knows how we got away with a 2-2 draw.
I’m still waiting for a match report from a certain good friend who attended the return leg where they were knocked out by our magnificent heroes. Hint hint,Garry.
Danish football came on a ton,winning the Euros in 92. But this article is about the ones from a few years before. Stirred a few memories of a bloody great side!
https://www.theguardian.com/football/blog/2009/oct/13/forgotten-story-denmark-1980s
Gordon64 @ 8:23
Thank you for that beautiful Mary’s meal film link.
City centre on lockdown, seems a police officer stabbed W George St/Renfield St area
Armed police respond to West George Street Ibis Hotel incident amid alleged terrorist attack
Armed police have responded to an ongoing incident at the Ibis Hotel on West George Street.
The mother of an eyewitness has told how police told her son a terrorist had entered the Ibis Hotel.
The boy who was currently working at the hotel has said members of the public have been outside the hotel premises.
Others have claimed that a shooting has taken place on the street.
She said: “My son was working in the hotel and he left his friends who went in the hotel for five minutes when he went to the bank.
“When he came back he saw police and they told him there was a terrorist inside the hotel.
“He said there was people stabbed lying on the pavement outside.”
We have approached Police Scotland for comment.
Bada
Sounds horrific.
Hope it’s being controlled now.
Bada
Mail me privately re your free bet for tomorrow please.
Thanks
Twists- will do mate thanks
From BBC, latest in Glasgow.
West George Street major incident. Understood three dead in a stairwell of hotel. Had been stabbed. Police shot suspect. https://t.co/EwwnmaqUcL
Footage of Armed Police.
Major Incident in Glasgow city centre armed Police #Glasgow https://t.co/SVba5VQgNk
CELTICOMOV
Nice article.
Now more than ever.
BMCUW, Jimthetim53, Twisty.
Thanks guys for the reply’s ..
For me the concern is that PLC financial model is based on a Supporter / Customer / market place of 50,000 people.
It’s absolute bonkers to limit our marketplace to only the same 50,000 people all the time.
In 2003 the Celtic Support spent over £100 Million on Seville alone. Yet the PLC lost money.
In 2003 the Celtic fanbase was estimated at around 9 million people.
Yet the PLC model is based on the same 50,000 people financing the Club every single year.
In over 25 years our main Supporter / Fanbase / Customer base numbers have stayed the same.
Celtic Football Club growth is extremely limited under the current PLC model.
So basically it will always be groundhog day with the PLC until there is change.
Imagine if 25 years ago, Fergus had started a Membership Ownership Model with 50,000 paying £500 = £25 Million per year.
Over 25 years with a yearly increase of 6,000 members per year today would be 200,000 members x £500 = £100 Million per year.
Or 25 years with a yearly increase of 18,000 members per year today would be 500,000 members x £500 = £250 Million per year.
The £100 Million worldwide growth model was based on a multiple x 4 over a 25 year period.
The £500 Million worldwide growth model was based on a multiple x 10 over a 25 year period.
The growth model of 500,000 members and a £250 Million Turnover per year was in my opinion achievable over the last 25 years.
Imagine 500,000 Members / Supporters throughout the world paying £500 per year to fund a World Class Celtic Football Club.
Ask yourself this question : Do you think Celtic could have sold 500,000 Tickets for Seville ?
My answer would be a definite Yes, which means that 500,000 Members already potentially exist.
Hopefully if you get the chance to read this article, you will at least find it thought provoking.
Hail Hail ..
Correction .. The £500 Million growth model comment in my recent article, should have actually read £250 Million growth model.
Apologies for the typing error.
BBC website, still running with 3 stabbed to death.
Police Scotland saying perpetrator shot dead and six other people in hospital, including a Police Officer, who is critical but stable.
One member one vote
Another extremely interesting contribution.
The Green Bay packers are wholly owned by the fans. Totally non profit making. No dividends to shareholders.
The supporters / shareholders elect the directors and the Executive committee.
I’d love to see a similar situation at CP.
Good morning troops and Happy Friday.
God bless all those less fortunate than ourselves.
Hi Jim and Big Packy
Celtic1member1vote,
Many many thanks for excellent work. Morally and financially unfair and unjust, , , that nails it for me. And remaining on that course will lead to a slow death and infighting about whether to boycott or not.
We need change, it’s that simple.
Thanks again pal
Mother in law coming, tidy up scramble here
Hail Hail
Black Lives Matter
Twists I really admire the Cheeseheads set up and their colours are nice also.
Packers are a good ethical team.
Hail Hail
Some sad and difficult news from CQN.
Hunderbirdsaregone – Stevie.
Philbhoy received an e.mail from his daughter, saying he was in a hospice, he is now home to spend his last few days with his family.
I’m sure you will spare a thought for Stevie and his family at this terrible time.
JNP
That’s very sad.
I don’t know Stevie but have read his contributions in the past. Thoughts go out to him and his nearest and dearest.
Mahe
Indeed, and not without their share of successes. First super bowl winners. Year? 1967 ?
( and they won it the following year as well!)
God bless Hunderbirdsaregone and his family.
Celtic1member1vote
BMCUW, Jimthetim53, Twisty.
Thanks guys for the reply’s ..
For me the concern is that PLC financial model is based on a Supporter / Customer / market place of 50,000 people.
It’s absolute bonkers to limit our marketplace to only the same 50,000 people all the time.
================================
I couldn’t agree more and when I raised the potential of Celtic TV opening up that market in 2011 I was told 2 things:
1. Celtic like the money up front in case poor team performances reduce match day attendance. (its an insurance against that)
2. PL did not want to invest in Celtic TV and so risk reducing match day income.
I was told that in 2011 when I had a go at a very modest Membership Model after the enlightening experience of working with the CSA and CST, who to be fair were/are a bit constrained by their own rules. Time might have dated some of the links but lots of what was proposed then from that experience is as true today as it was then, but with voting rights now paramount. However had I said that then I would never have got DD’s attention. The Article (with a link in it to a model to improve communication that does work is also worth checking) is at
https://docs.google.com/document/d/1YLx0rSblacwA0VYlTRLsKwwdHp4BpTkyOvSL1cwltfI/edit?usp=sharing
More currently you have probably seen the model published on SC based on sharing the load more equitably across the support using a streaming model independent of Sky or any other Broadcaster taking our money and giving to to England to then buy our best players. I get frustrated at times by just how bonkers things are in Scottish football and Celtic’s seeming inability or unwillingness to drive change.
That model is at https://drive.google.com/file/d/1-X3f5S7iLvhXGCLBFwLvpbX42FWPIS25/view?usp=sharing
and if you want the originals e mail me via BMCUW and I’ll let you have them.
The pandemic has been a jolt to the thinking that has produced a world that got lazy about their thinking.
If ever there was a time for Celtic supporters to think anew it is now but it will not happen unless ideas for doing so find a platform around which to coalesce and that should be the CST and they are making moves to have more say under the existing model, perhaps more realistic ones, but if one member one vote can be presented to DD as a better model to help future proof Celtic in an uncertain future then it might gain traction. My modest one got me through the door in 2012.
Get on touch please if you want to know how.
Celtic One Member,
Thanks for the thought provoking article. Although events in Glasgow overshadow everything at the moment, your efforts merit a response.
Firstly, I think that you will agree that the Board is risk averse. This will drive their thinking in the next season or two. Qualification for the CL group stages is more uncertain this upcoming season than ever. The one game qualification rounds contribute to that. We have a patchy away record and are beatable away from home by teams that have inferior resources to our own. Building a team to qualify is more expensive than building one for the Ten, So the Board will settle for the latter, with hopes of doing well in Europe. Consequently, there is unlikely to be any big signings unless either Ajer or Edouard leave. Loans and, perhaps, a 3 million acquisition will be it for the summer. If the panic button needs to be pressed then something may happen in the Winter window.Hence some of your crucial events will not be achieved.
You are correct in that the current business model is flawed. Clubs such as PSG have already implemented a fan involvement element that raises revenue. They sell different levels of tokens to the fanbase that permits them to vote on aspects such as a new strip for the season, the choice of opponent for pre-season friendlies etc. This is only the thin end of the wedge and it permits distant fans to become more involved in the club. There are examples of other clubs using some form of this strategy. In a sense, the other lot unearthed a gem with the creation of a club that raised funds for fans to buy shares in their club. Of course, it was misused and deviated from its purpose, but the concept is one that could diversify share holdings.
Perhaps, we are standing on the Eve of drastic change in the distribution of shares in the club due to the pandemic. If share value plummets then corporations may look elsewhere for better ROI. Sadly, financial performance and on field performance would have to suffer first. Guess who would fill the vacuum?
Rebus
Aaron Hickey deal is on
Sad news my thoughts are with him his family & friends.
It amazes me how you can feel genuinely sad about someone who you have never met but whose moniker has become so familiar to you over the years. Ynwa?
Bada
Hope not. I think he defends very poorly.
Plenty rate him though
T n T
I’m with you on young Hickey,but will trust Neil Francis with the hope the boy improves as he grows.
Thoughts with Hunderbirdsaregone – i wish him strength at this time.
Thoughts also with the victims of the ongoing incident in Glasgow. It just shows you never know how your day will end. Cherish what we have.
Celtic1member1vote. Excellent article and surely worth exploring as an option to help us be more competitive but as Auldheid and Rebus have alluded, this type of thinking requires vision and not relying on the ibrox mob to provide interest. Not something our board seem to even countenance.
BB/Twists
Hickey is a young player who shows good promise. For a reasonable price we can get him now. If we don’t another club may take a chance. Bolingoli doesn’t seem to be rated by Neil and Taylor, though solid enough defensively cannot take his man on on the outside. That’s not much use for a Celtic full back.
Rebus 67
( Loans and, perhaps, a 3 million acquisition will be it for the summer. If the panic button needs to be pressed then something may happen in the Winter window.)
A definite possibility.
But!!!!
If we are behind in title race it will be too little too late.
As Celtic by numbers has shown the gap is closing and our last 2 performances against them give real cause for concern.
I think the encounters against them will decide the league.
And we will have to be a whole lot better tactically than in the last 2 games against them.
Also no crowd and poor tv coverage gives refs a lot of leeway in helping them and making it harder for us.
They will probably break the record for most penalties in a season if the closed door scenario is lengthy.
Lefty
Hi bud.
I’m not so sure Neil has the talents of a BR in respect of improving players but hopefully he will work the oracle with Hickey if indeed he does join.
ATOB
I’d have to disagree with Hickey over Taylor. I don’t disagree Taylor has weaknesses, but I’ve seen Hickey several times and think he’s very poor. What’s more telling I think is the jambo guard at my estate can’t wait to see the back of him!
Hope we are both wrong!!
So sad to come home to the news of Hunderbirds/Stevie’s illness.
Thoughts are with him and his family at this tough time.
Sad day in Glasgow today, compared to the high of yesterday. The incident in West George St, then hearing the news of Stevie Hunderbirdsare gone. ?
I hope Bada’s news on Hickey is false. Don’t rate the kid at all. If true, a sure sign we are downgrading the team. I rate Taylor and Bolingoli higher and not a fan of either of them.
Love your brother man!
https://g.co/kgs/8xhg1K
Joe Hart is another being mentioned. Rumour I suspect
Thoughts go out to Hunderbirds are gone family at this time.
Garry, a sad day.
Found this gem.
Chuck Berry. What a performance.
I wonder if B.P. knows the drummer, he can’t take his eyes off Chuck.
https://m.youtube.com/watch?v=sij1R6cjh4A