CELTIC today revealed the cost of last year’s Summer of Discontent which resulted in a Champions League elimination at the hands of AEK Athens. With the CEO and Manager failing to see eye to eye, key transfer targets being missed and even first team players apparently going on strike, the defeat could be. seen as an own goal by the Scottish Champions – and today the full financial cost of that has become clear as the club’s Announcement of Results for the year ended 30 June 2019 were published.
The financial bullet points are as follows:
* Celtic’s Group revenue decreased by 17.9% to £83.4m (2018: £101.6m)
* Operating expenses including labour decreased by 0.2% to £86.9m (2018: £87.1m)
* Gain on sale of player registrations of £17.7m (2018: £16.5m)
* Acquisition of player registrations of £6.2m (2018: £16.6m)
* Profit before taxation of £11.3m (2018: £17.3m)
* Year-end cash net of bank borrowings of £28.6m (2018: £36.1m)
* Year-end net cash, net of debt and debt like items, of £38.9m (2018: £27.0m)
As is usual, the club’s Chairman Ian Bankier provided a narrative to accompany the numbers.
“These results, which declare revenue of £83.4m (2018: £101.6m) and a profit before taxation of £11.3m (2018: £17.3m), reflect a satisfactory performance in a financial year in which the Club did not qualify for the Group Stages of the UEFA Champions League, as it had done in the prior year.
“On behalf of the Board I congratulate Neil Lennon, his management team, the players and all staff at the Club on achieving the “Treble Treble”. At short notice, Neil took charge of the squad, delivered an eighth consecutive League Championship and triumphed in the Scottish Cup, making it the Club’s ninth successive domestic trophy.
“Of course, we were disappointed to lose Brendan Rodgers during the season, when he left to pursue an opportunity in the English Premier League. Brendan and his staff delivered record breaking success and they leave a phenomenal legacy for which the Board and everyone at Celtic is truly grateful. We thank them for their outstanding contribution.
“The Board was delighted to welcome Neil back to the Club in February and to confirm his appointment as manager following our success at Hampden in May. Having been the manager when the Club embarked on the present run of domestic success, Neil understands what it takes to be the manager of Celtic. He has the full support of the Board, executive management team and all the staff at the Club. At the time of writing, having qualified for the Group Stages of the UEFA Europa League, the Club retains a 100% record in domestic competitions and we look forward with optimism to the season ahead.
“The financial results for the year demonstrate the robustness of the Group’s strategy of investment in football operations, whilst maintaining a self-sustaining financial model. This continues to provide a stable platform for football success and shareholder value. The gains on sales of player registrations, primarily reflected by the gains achieved on the sales of Moussa Dembele to Olympique Lyonnais and Erik Sviatchenko to FC Midtjylland, as well as contingent fees crystallising on previous player transfers, were key to the performance of the Group.
“Post year end, the Club completed the sale of academy graduate Kieran Tierney to Arsenal FC for a Club record fee. This was a great milestone achievement for “one of our own” and recognition for the Club’s high standards of player development. Also, post year end, in the summer transfer window we bolstered the playing squad with the additions of the permanent registrations of Christopher Jullien, Luca Connell, Hatem Abd Elhamed, Boli Bolingoli-Mbombo, Greg Taylor, Jonathan Afolabi, Jeremie Frimpong and Lee O’Connor.
“Our year end cash net of bank borrowings was £28.6m (2018: £36.1m) which equates to a net funding position of £38.9m (2018: £27.0m) when adjusted for debt and debt like items (as defined in the Summary of Results on page 2). This allows the Board to continue to plan for the long term, whilst managing the reduced revenues derived from playing in UEFA Europa League in two successive seasons. The Club continued its significant stadium investment programme to maintain and improve Celtic Park’s reputation as one of the best football arenas in the world.
“The Club believes that children and young people have the right to protection from all forms of harm and abuse. We are unequivocally committed to ensuring this. Celtic Football Club was the first club in Scotland to appoint a safeguarding officer, responsible for developing our policies for the protection of young people, and monitoring and reviewing our procedures to ensure they continue to reflect best practice. During the year, a number of individuals were found guilty of historic offences committed against young people. The Club expressed its sincere sympathy, regret and sorrow for those affected and stands by its responsibilities, respecting the due process of law.
“As we look ahead, the future of UEFA competitions beyond 2024 remains uncertain. While recognising the risks, the Club considers that the developments being discussed by UEFA, the European Club Association and other stakeholders, present an opportunity to clubs such as Celtic. Through Peter Lawwell’s continued involvement on the Board of the European Club Association and the Professional Football Strategy Council of UEFA, the Club and the game in Scotland continue to be well represented in this very important arena.
“In closing, I thank all of our supporters, shareholders, sponsors, partners and colleagues for their contribution to another successful year for Celtic Football Club. We all share a common passion for Celtic and everything it does. The Board is committed to building on our current success for the long term future of the Club,” Ian Bankier wrote.
Read the full Celtic PLC Annual Results HERE.
Celtic PLC Annual Results.https://t.co/79Dfb4ZT9q
— Celtic Football Club (@CelticFC) September 27, 2019
