As regular readers here will know when matters financial are to be debated on Planet Fitba I have an expert witness.
I was grateful to receive the following from Rugger Guy this morning:
Phil
As you know, I am at a conference this week and do not have the time to do my full checking on the minutiae by comparing with year-end accounts as I normally do, but I will put a few comments together which I hope you find of some use.
Celtic PLC interim accounts were published yesterday, and are very strong in all the key measures that can be analysed.
Revenue almost doubled to £61.2m. Profit from trading, that is the day to day business of the club before player trading, increased from £1.6m last year to £21.6m, very good indeed. Although the cost base has increased sharply, clearly the increase in revenues from European Championship competition, coupled with an increase in season ticket subscription has put the football club in a strong financial position. This is highlighted further in that profit from player sales were £2m this year as opposed to £12.6m last year, but the key outcome is that net cash in bank, (gross cash less any loans or overdrafts) is now almost £19m, about £12m more than last year. These numbers cannot be faulted at all. This cash balance is AFTER the investments made by the football club in the summer. Several key recruits were added such as Dembélé, Sinclair, De Vries, Toure, and Gamboa, and this investment cost was almost £10m.
What the balance sheet does is record these investments at cost, but I understand that the realisable value of the player squad has been significantly enhanced, another indicator of the rude financial health of the club.
There are a few caveats, the directors have cautioned against extrapolating these numbers, as the second half of the year has fewer home games or revenues from European matches. However, what should be taken positively is the quote from directors, “the board is optimistic about our immediate future and firmly supports the self-sustaining financial model that has served us well”.
Regarding the auditing of these interims, BDO confirm as is normal for interims, that the scope of review is substantially less in scope than full audit, but confirm that nothing has come to their attention that the accounts have not been prepared in all material respects and are in accordance with the London Stock Exchange requirements. In layman terms, a clean bill of health with no qualification.
Well, that’s his take on it.
The thing that jumped out for me was:
“…another indicator of the rude financial health of the club.”
You can read the club’s statement to the London Stock Exchange here.
Of course, the financial experts on dignified message boards will see hidden debt and state aid in these interims.
It is interesting to note that the same financial experts couldn’t see the insolvency iceberg heading for Edmiston five years ago this week.
The trajectory of the collision path had been charted on this site for well over a year before the impact was felt on their bigoted starboard bow.
Now the new vessel that is plying the same dignified trade route, the good ship Sevco, has to be bailed out every month, but not all of the crew are lending a hand
I smell mutiny.
Ah well…
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Off topic, but does anyone know whats the status of the wifi at the Asbestos Dome? 802 work limited had been denied £300,000 to be ring fenced.
Well if lambias (don’t know if that’s the spelling) with Ashley and easdales still had input Miller might have a new contract ,Newcastle players would be on tap ,and sevco might have been in a better financial position than they are in right now, but the poisoning of Ashley’s name by the hut under the orders of the King rat and attacks on the easdales have left them horribly exposed ,this has been a drag hunt with fake scent trails leading the hoards away from the foxes lair ,,,,,, can’t understand why BDO are flogging a dead horse with D&P ,accept that there will be more fees in it for them
Don’t worry. They’ve got a new sugar daddy lined up
https://www.thescottishsun.co.uk/news/scottish-news/540565/residents-in-larkhall-erect-sign-welcoming-us-president-donald-trump-to-the-south-lanarkshire-town/
Off the radar IQ as well I see.
Phil, with your contacts – is there any chance of some transparency regarding the transfer fees reported ?
As a Celtic supporter, can someone explain to me how the player acquisitions amount to £10m ?
The figures reported were £3.5m Scotty, £1.5m Gamboa, £500k Moussa, £500k De Vries & Kolo was a free.
Are we to assume £4m was signing-on fees & agents fees ?
Clubs should be compelled to breakdown the fees reported e.g transfer fee (up front &/or installments), signing-on fee, agents fees, salary included in fee reported, etc.
Any thoughts ?
That such financial breakdowns would expose all the corruption at the heart of it ..?
@Mark. You are forgetting Celtic also had to buy out Brendan Rodgers contract at a cost of 3 million
Not sure why clubs should be compelled to details how much they pay for or indeed sell individual players.
I thought Rogers was a free agent when he agreed to come to Celtic, how did we have to buy out his contract?
He was still on a 5 million a year contract with Liverpool until 2018. It was well reported at the time which is why everyone was surprised when Celtic got him.
Do you think the dignified are irked?
It’s bounty!!
The neck-ties at Celtic are clearly cock-a-hoop at financial results and domestic football results.
However, there are serious responsibilities regarding our club being cheated for 15 years of titles and this Board has done absolutely zero on that. Action remains expected.
The Res12 lack of action is despicable. Board Failure.
It has been several years since any impact in Europe. Continued Board Failure. We cannot get those years back and don’t forget.
It is starting to go in the right direction but There are few laurels for this Board to sit upon.
There are legacy issues still outstanding after the death of the original Rangers.
A mutiny about the bounty
Tastes like coconut………………it’s bounty.
Well played.
Hi Phil,
This truly is excellent news for The Worldwide Celtic Family,and to have it independantly scrutinised puts it beyond ANY BS fables from the dark side.
I had hoped,even expected,to see an improvement in the figures due to the Rodgers Revolution,but these numbers are well beyond my expectations.
So very well done to All at Celtic FC.PLC. HH.
We should All be proud of this;showing what can be achieved LEGALLY.
If you put £400,000 into Sevco would it be safe to assume:
1.You will not see this again
2.You have the iq of a dodo
3. You will get a cameo role in the front of a PR newspaper
4. All of the above
Kieran Prior: my £400K investment in Rangers is just the start
http://www.heraldscotland.com/news/13109411.Kieran_Prior__my___400K_investment_in_Rangers_is_just_the_start/
Whats his £400,000 worth now? That should be a good indication of his intelligence. Its funny when Mensa have a maximum IQ of 160, Mensa member Mr Prior has over 200. That’s one Mensa member that can’t be able to count.
Yes, overall an upbeat set of interim results. As you say, however, in certain quarters the veracity of them has been called into question. It’s almost as if some folk struggle to understand the concept of a sustainable, well-run, and successful business.
If I may here are some further, satirical thoughts about that…
https://theclumpany.wordpress.com/2017/02/06/about-celtics-interim-results/
Shut it Timmy!
Have to say Clumps that some of your humor passes me by, but that was very funny….bravo 🙂
It gets funnier by the day at the moment.
Another great read Phil, they really are going to be in our shadow for a considerable length of time, unless of course all the experts are wrong and “Albert” is right!! Lol. On an off topic note Phil I see the Sackville bar just off oconnell street is to close, enjoyed a good few pints in there on a couple of occasions with the wife and our friends, great Craig.