I received this from Rugger Guy today.
As ever I’m grateful for his time and precision on these matters.
Here it is:
Good morning Phil.
As you know I have been travelling last week and have not been available to comment on the Celtic results until now.
The results published on Friday evening was a summarised version of the results, some 12 pages, however, the annual report and financial statements which contains details such as post balance sheet events, contingencies, and detailed notes to the accounts will follow in due course.
Consequently, I will provide commentary on some of the main points of interest.
The main financial headlines to bring out are as follows:-
Group revenue is down 17.9% to £83.4m
Operating expenses flat at £86.9m
Profit on player sales £17.7m (versus £16.5m)
Profit before tax £11.3m (versus £17.3m).
Yearend cash, net of debt and like items £38.9m (versus £27m).
Celtic is clearly attempting to be a self-sustaining financial model.
The clearest point here is that Celtic can be free of selling players or downsizing the squad of players if they gain the extra revenue for qualifying for the league stages of the Champions League. When you look at the breakdown of revenues, merchandising and football operations were largely flat. However multimedia and other commercial activity declined by some £18m, this is mainly down to Champions league shortfall.
Celtic would not be very profitable if it did not sell players or downsize significantly.
When you look closely at the profit makeup, Celtic made a profit on player sales of £17.7m in line with last year’s gains. However, when you look closely at headline profit before tax, it also includes other income of £8.8m.
There is not any detailed explanation on this, however, I suspect that this is mainly made up of compensation from the early departure of Brendan Rogers’s mid-season and his support team. Stripping out this income Profit before tax would have been £2.4m.
Trying to put Celtic results in the context of other club investments.
Celtic spend substantial amounts on their football operations. Operating expenses were maintained despite a fall in revenue. Operating expenses were £87m, which compares with Rangers International costs of £38.9m in 2018, although I suspect when we see the current years published results then they will increase sharply. However putting this in context, Celtic’s running costs will be double. When you look at labour costs (principally players) Celtic incurred costs of £56.1m. Rangers International incurred staff costs of £24.1m in 2018, although this will probably increase considerably when 2019 results are published. However, it is evident that Celtic’s investment completely eclipses those of Rangers.
Healthy cash position and strong working capital.
Year-end net cash net of debt and debt-like items was £38.9m which is a big increase on last year’s balance of £27m. The debt like items takes into consideration the net player trading, coupled with loans and remuneration balances owed to certain personnel at the balance sheet date. This puts the football club in a very healthy financial state. As this balance was at 30 June 2019, this excludes the proceeds of some £25m from the sale of Kieron Tierney, however, it also excludes the cost of players acquired post balance sheet, although from publicly disclosed details, it seems that these costs were in aggregate £10m, before including contract commitments. When you look at the balance sheet and in particular working capital the position is healthy. Crudely, in simple terms, this shows the difference between expected incomings and outgoing within 12 months and Celtic has a positive balance of £18m. This time last year the positive balance was £13m.
Auditors report.
Although an audit report was not attached, Celtic have indicated that once again this will be unqualified. We can have some confidence in the accuracy of these published numbers.
Summary and conclusion.
The published summary financial results, show once more that the football club is in a very healthy financial position, the club has continued to invest heavily in the football operations. It also shows that the failure to achieve qualification for the Champions League places pressure on potential player sales or downsizing the squad in order to be self-sustaining. The other issue to bear in mind is the prospective investment in the hotel and how this may impact on the substantial and healthy cash balances. I do not have any idea on potential costs but think that this will clearly impact on investments in future football operations.
So there it is.
Celtic have a self-sustaining plan going forward.
Moreover, one that puts them on a different galaxy from the rest in Scotland.
In other news, Sevco is in court tomorrow.
Thankfully legal reporter James Doleman in his normal seat in the High Court to keep his readers informed.
General Ashley has played a long game on the Sevco car boot sale.
It was trumpeted in June 2017 as King’s finest hour by the Stenography Corps.
However, your humble correspondent presented an alternative evidence-based narrative.
Well, dear reader, I invite you to consider who was correct on that one…
Since the Off Licence Putsch of 2015, General Ashley has, like, Celtic had a strategic plan and he has stuck to it.
Moreover, I have never been in any doubt that his objective was to pay back, as he saw them, the usurpers in the Blue Room and in particular Mr David Cunningham King.
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So CFC player costs are more than twice those of Sevco. How come then they are ahead of us in the league. We are apparently paying over the odds for indifferent people (manager included)
Phil
Do you believe that excellent review should be accepted gracefully without challenge?
It seems the business is in its healthiest state ever.
It seems when we fail to achieve our target of champions league qualification, it’s the playing squad that that is cut to suit.
The business and operations isn’t touched – not by a penny.
Why is this?
The business is the most important function within a football club.
£38m in the bank and all summer, whilst we have recruited well, eventually, was scraping and scraping looking for hidden gems – which came AFTER champions league qualification stage..
Major questions need answered.
We need someone of prominence to challenge the status quo
I think that you have answered your own question, Danny, in that the club is continuing a sound financial plan which works. From a financial point of view and in terms of giving you and I an exciting brand of football, this works very well. Long may it continue.
Looks like any compensation has been kicked back to January at least and if King et al have put another 7 mill into shares doesn’t look like a pre-pack is coming down the line. Also if King has invested again it doesn’t look as if he’s on the way out either. Is that the way you see it Phil?
How did you come up with that?
Next hearing January – AP report posted by James Doleman. Investment in shares Heavidor and breakdown of shares in reply to his post by some Bolingoli or other. Looks legit.
https://twitter.com/Heavidor/status/1179351398896619521/photo/1
easyJambo
@easyJambo1
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7h
Replying to
@Heavidor
Raises £6.98m – Most shares to existing investors.
NOAL (King) £2.09m
Douglas Park £1.2M
George Taylor £1.3m
Barry Scott £295k
John Bennett £600k
Borita (Wolhardt) £995k
Unspecified £500k
Thanks for the insight Phil. Though this saga moves with all the urgency of coastal erosion (atrib Crampsey), it is crawling inexorably in a single direction. Celtic’s figures reflect a sound business model- like it or lump it. As a Celtic supporter I have never known such a sustained period of success and am constantly baffled by the Catastrophic wailing of some parts of the fan base. Our only real adversary is complacency. These are the days, my friend, and this is the life!
With the Chinese market shut where now for Morelos?
Being scouted by an MLS team according to ex captain Gough.
Highest ever fee paid to bring a player to the States is 15m dollars, just over £12m pounds.
Would that be enough to head off the bad news coming down the track?
SDI bill.
Close Bros loan.
Underlying annual losses.
Joseph wee Coco from one of their forums has already converted the pounds into dollar’s for Morelos going to the states. He has $55 million coming in for him when he leaves. Oh dear .
There’s that 55 again.
As I understand the story so far.
“Billy The Boy Kid” gambles, loses heavily, tries cheating and is then shot by the Federal Marshall. As he lies dying, a White hat wearing stranger rides in to town and buys his boots and guns and at the same time the large-handed, smiling assassin, Chateaunooga Green robs him. A tall, glassy-eyed six-shooting son of a gun, Dangerous Dave rides into town and outwits them all and takes his place at the table claiming to be the still dying, going on seven years now,”Kid”. Given short shrift he offers them “‘The’ Billy Boy Kid” and to his delight they accept although he asks to be called just “Billy”. The rest of the players, including Desperate Des and Pistol Pete, as well as the dealer look at the picture of the pile of blues dollars he has brought to the table and say, “Works for me, deal”
Is Dave King the new ‘Dread Pirate Roberts’? Hail Hail
I’m a sucker for a good western so if this is ever made into a movie I would definitely pay hard cash to watch it at the cinema.
“The Castlemilky Bar Kid” was an open goal. Oh well.
Lol The Court Fees Are On Me .
So…. basically continue to sell our golden eggs if we don’t make CL groups, whilst saving enough money to pay for the new hotel and upgrade to stadium then…. Smashin!
Off topic here but a see Gough talking up Fatman Morelos to some yank from LA Galaxy oh dear a nice wee SQUIRREL story on the day of the big court case . Oh and one of their fans is swallowing this guff already by telling us that if Fatman Morelos does go to LA Galaxy when the pounds are converted into dollar’s it will work out at $55 million .
Rugger Guy using non-financial jargon. You’re a conning reptile
Ignoring your ad hominem I will address your observation.
I specifically ask RG to crunch it all down into a simple to understand format and to avoid jargon wherever possible.
I think that he does that very well and I’m hugely grateful to him.
Have a great day.
How can it be a con if there is no charge for the information provided?
Meanwhile over at Paranoid Paywall Pete’s fantasy blog…
Cheers Bandito. Hail Hail
I’ll take it but not got a clue what for 😁
Twas for the DK takeover explanation. Hail Hail
Ah no worries, it’s a bloody good book 🤣😂🤣
Anyone know if there’s likely to be any kind of live reporting on the sevco court case today?
Charger I hear tell that Roger Mellie, the man on the telly, may well be there today doing a live report. It would be well in keeping with the whole circus-act nature of proceedings. Hail Hail
Let’s put it this way… if you hold your breath for long enough, you can go out guising as a Smurf in just four weeks from now!
Huns luv a Tim’s page Hunfuckinbelievable💚🍀🍀😂😂😂
What about Celtics compensation for the abuse victims or does that not suit the rhetoric
If only Celtic came up with Sevco’s excuse…”uh, different club that employed 1st team paedophiles, not the new club…but we’re still going for 55…” but Celtic don’t do excuses, just ask Fergus- he paid ALL the bills
Ah the old whataboutery eh? Never fails hunny.
don’t worry….yer still debt free……..HAW
Steven, away back to FF and keep taking the Deludamol ya fuckin tit. Our club followed a robust process that aligned to not interfering with legal due process. Our club will assess and pay its way, we always have. Unlike your old club who tried to beat the Queen out of her dues and paid the price with liquidation.
Your a fuckin disgrace, is that the best you can do. No wonder your club is fucked, having supporters like you dragging it down. Watch your tribute act slowly die before your eyes muppet.
That’s took care of ya fuckin idiot moneies have been put aside not like Sevco no got two Bob tae rub together and won’t admit it we’re the same club but send the victims to the liquidators ya fanny
Another sicko deviant with an obsession for CA.
Maybe you’d like to comment on this headline from the Times,
“Nine child sex abuse victims sue leading football clubs including Rangers and Hibernian for damages”
Just aswell the accounts only go to June as the money in the bank is considerably less when coop claimed their 19m in July
See above note about Fergus paying bills, Einstein…get lost again on your way to ’55’ did you?
Different galaxy financially.
1 point ahead in the league.
We seem to obsess about the profit statement and the balance sheet and the bank balance.
This season will be tight.
The referees will see to this.
We may need to rely on a financial meltdown down govan way.
Best start to a League Campaign for 10 years?
We can’t affect how other teams fair against our nearest rival but when they faced us there was a chasm in quality between the two sides in their own midden with 700 away fans cheering on.
All Celtic can do is keep the levels up and it will pan out as expected.
We pump them at Celtic Park they will implode.
Mike Ashley pumps them in Court they will explode.
Jelly and Ice Cream.
Yes, the CFC financials are easily understood: a clear strategy, a transparent view of the main opportunities/risks – and a transparent overview of cash flow and cash position.
Simples.
Whereas the RIFC accounts’ clarity will stop abruptly at ‘Strategy’, as in;
“This business model is simply the worst: unsustainable.”
As for the cash position, there will still be opaqueness around the source of the future funding requirements – and regardless of the Audit assurances.
So, in terms of financials: CFC v TRFC…
CFC reporting is robust, reliable, solid.
TRFC reporting will be creative, risky, fragile.
Another convincing derby win for the green and white!
When will the compensation bill be announced? This is what we are all waiting for.
Thanks
Those will probably be covered by insurance and non disclosure agreements. I think we have handled it well in comparison to Ibrokes telling the poor guy who turned up looking to speak to someone there and was told to go see the administrator.
Utter codswallop
Yes ragin’ Steven…?
Does your carer know you’re on the computer, Steven?
His carer is banged up in Carstairs Mr Rowan. Couldn’t handle the pressure of looking after a muppet like that. Hail Hail
FFS Mr Rowan I do not have time to explain what a syllable is to our intellectually-challenged Hun compadre…it would take me till this time next year before it sank in. Perhaps we could all chip in a few quid and enroll the thick bastard in a remedial class. I think that’s a winner. Hail Hail
https://www.bbc.co.uk/news/uk-scotland-glasgow-west-44126217
https://www.bbc.co.uk/news/uk-scotland-glasgow-west-20141946
114 football trophies = same club
150 million £ debts = different club
54 league titles = same club
81 staff paid by illegal means = different club
Going for ‘55’ = same club
Responsibility for abuse claims = different club
Now, now, Steven my good man…Huns like yourself should not be using words of more than one syllable. You’ll be getting chucked out of the Lodge if you repeat this offence. There’s only one Mike Ashley. Hail Hail.
I think you might have to explain what a syllable is to our little intellectual-defective, Magua!
Tomorrow I believe. Percy has probably come to a figure already and any arguments put to him might convince him him to adjust it marginally either way. Reading the judgement I could not sense any sympathy whatsoever for Sevco. The phrase that replays in my mind is the one about damages alone not being an adequate punishment.
That’s because you didn’t understand his words
Oh I understood his words perfectly. It’s what he might put on TOP of the financial damages I’m unclear about. Perjury springs to mind. The Law really does take a very dim view of that.
You clearly didn’t understand the words. The reference to adequateness was simply in relation to the justification for awarding injunctive relief. That’s because one of the tests for awarding such relief is whether damages are adequate or not.
It has no bearing on the £1 million damages limit (well apart from the fact the limit helped to ensure damages weren’t adequate). That’s why there was no judgement on the limit or indeed any award of damages.
I get that feeling…you know, especially when Catholic Schools are up for their annual “Scottish” discussion that I equate stenography Corps with the cabal of masonic/OO/unionist interest of closing our schools due to the sheer corruption of those interested parties and that any participants in Catholic schools are the only ones who can see how rotten & corrupt that cabal are, so thank you for all Catholic/Descent protestant journalists for keeping an eye on that rotten mob.
*Decent
Can’t wait to see what spin Traynor and his acolytes put out on this.
On a different note on Talksport today a Man City fan, defending his team’s inability to sell out the stadium on CL nights, really captured the arrogance of EPL fans.
He likened playing Dinamo Zagreb to playing the likes of Rochdale ffs.
That will be the Croatian league champions, remember them you prat, Croatia who sent Engerland home from the World Cup.
I’ve never more wanted to see an English team beaten.
7 games into the EPL season and only 2 teams can win the league.
Competitive my arse, unless you are including the fight for 3rd, 4th, 5th and 6th!
Oh dear, best league in the world?
Spurs 2 Bayern 7(seven)
Ho,ho,ho.
And to think Spurs went straight into the champions without playing a qualifier. Embaresssment does not even touch it to describe that performance. No doubt Rodgers the Chisler will get a mention for a move to Spurs after all it’s a team he supported growing up they are in his DNA.
Aye. And it could/should have been more.
Cheers Phil,great news like this is fantastic to read,there’ll be an abundance of Jealous Bears reading this and weeping sweet tears of nectar.
Excellent news🍀
Now we can hope for The Res.12 guys get similar news of glad tidings.
Appreciate your time Phil.✅
I wonder if the Directions Hearing will be to disclose the full financial quantum of compensation to be paid to Sports Direct!
‘and now the end is near and so THEY face the final curtain’. Sorry for the Frank Sinatra bit there, couldn’t resist.
Phil, I am presently working my way through the archives of this site- I am up to March 2014.
Can you or someone tell me this: WTF is the off-licence putch of 2015. My Perry Mason-like legal brain tells me that this must surely in some way refer to Mr David King…I really need to know, as I’m obviously a bit of a sad-sack. I know that I could skip to 2015, but sure that would be cheating. Hail Hail.
It was DK takeover
Lol the Huns are blaming the judge for going with Big Mike Cashley saying the judge was against their club and hated them . It’s always someone else to blame. As the post above let’s see how Fatman at Level 5 spin it . Infact a think a nice wee SQUIRREL story must be in the pipeline as the payment figure is awarded from the court . Like Rangers to beat Celtic for the signature of Shankland in January as the papers have us fighting over him already.
Bigot scumbag
Play the ball and not the man…
A brilliant Phil pun on the Nazi party beer-keller putch. That didn’t work out very well either. (The spelling of Keller looks iffy! )
Bierkeller…
I was ALWAYS shite at languages. I’ve holidayed regularly in Austria for the best part of thirty years and I’ve given up on German. I can order beer, say please and thank you, and that’s about it.
Charger don’t beat yourself up FFS. You can order beer, say please and thank you…what else do you need? Hail Hail
Fick meine alten Stiefel Johan