I sent this statement from Celtic to Rugger Guy and he replied with his usual promptness.
Here is his take on the numbers:
Phil per your request, I have had a quick look at the reported numbers for Celtic FC PLC “Celtic” for the financial year ended 30 June 2018.
These numbers do not constitute the company’s statutory financial statements. Essentially the full accounts with a full audit report, comprehensive notes to the accounts, post balance sheet review and other important financial matters will follow at a later stage, so a comprehensive review of the full numbers are not possible, however, there is sufficient information in order to summarise some important points.
- Group revenues have increased by 12% to over £100 million, at £101.6m, the first time that any football club in Scotland has exceeded £100m. The growth in turnover applies to all revenue streams, Football, merchandising and multimedia.
- Operating expenses have increased by 14% to £87.1m, and Celtic have invested almost £17m in new player registrations vs £14m last year. Total labour costs have increased by 14% to over £59m a substantially higher cost base. Peter Lawwell highlighted the substantial increase in infrastructure costs, including as well as players, football management, coaching, recruitment, medical, performance, sports science and the youth academy costs. Clearly, this indicates that the success on the park has continued to be reinvested in all areas of the club.
- The club is now paying corporation tax as the tax loss pool is finished. Taxes will be paid at full rate on future profits.
- Year-end net cash is £36.1m which compares with last year’s balance of £17.9m complemented by the profit on the sale of players of £16.5m against £2.3m in the comparable period.
- Although the full audit report is not included, these summarised numbers indicate a clean bill of health and unqualified audit report will follow.
The summary is simple, rude financial health and an unqualified audit opinion.
As ever, I’m grateful to my egg chasing buddy for his analysis.
My basic reading of these figures would indicate that the club will have no excuse for failing to strengthen the playing squad in January.
Moreover, it is worth noting that the profit on the sale of Moussa Dembélé is not in these numbers as this was a post balance sheet event
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My fear is that the biscuit tin is back.
It’s not even a new biscuit tin. HH
The financials are strong and put the club in a strong position going forward.
No doubt on the park performances early in the season have been poor, probably with the Rangers game being the best performance but not reflected in the final score.
Just as the oft criticised defence is looking more solid the goals for are drying up.
The points last night were vital against a team that had no ambition going forward and caused Craig Gordon no problems whatsoever.
Let’s trust the manager to find a solution as he has done ever since arriving at the club.
Just read about Klan1872 requesting a vote not to sell shares in the hope they reduce burden on King.
Desperadoes
No Knee-jerk reaction from me but lets see how the SPFL league table is after we spank the tribute act at New Year. However if we are clear at the top by around 7 or 8 points I cannot see PL splashing out…even more-so that January is the desperado market and not much quality is available then.
HH
With no CL revenue this season, and the eye-watering operating expenses of £87m I can’t see any chance of significant investment in January. In fact I would hazard the exact opposite. Bye bye Boyata.
Next year’s accounts will be interesting for sure without Champions League money,although that will be offset with sale of Dembele and lesser money from Europa League.However our wages and other expenses are increasing at an alarming rate in my opinion and without Champions League money for say 2 seasons our figures will not look so rosy.
Do these figures mean we’ve sold players for £33.1m or have we spent £100k more than we took in?
Gain on sale of player registrations of £16.5m
Acquisition of player registrations of £16.6m
Additions in January? Doesn’t really make up for the additions that should have happened this Summer, but I guess better late than never. However, I’ll believe it when I see the new players paraded at Paradise.