Towards the end of the coming week Peter Lawwell is likely to announce that the Celtic bank account had a balance of around £100m on December 31.
The interim results are generally announced in the second week of December, giving investors an idea of how the business has performed in the six months since the annual report revealed a balance of £72m at the end of June 2023.
Every business aims to be profitable but having a sum in the bank close to the annual turnover is far from normal, while taking reasonable provision for a rainy day the funds would be better invested in the product than gaining interest and being subject to corporation tax at the end of the year.
Football clubs are usually an exception, more than a few are spending on wages and transfer fees at the same rate as they are bringing the money in. Not Celtic.
There is a very decent argument to suggest that the bank balance has been built up at a cost to the team.
Ange Postecoglou finished last season with 13 reliable quality players (the League Cup winning side of Hart, A Johnston, Carter-Vickers, Starfelt, Taylor, McGregor, Mooy, Hatate, Jota, Kyogo, Maeda plus substitutes Abada and O’Riley).
When three are removed from that and three or four are out injured the quality quickly thins out, as seen by eight dropped points in the SPFL since the start of December.
Our trading of players since the accounts have gone out is over £10m profit.
Although that doesn’t translate to direct cash. I believe most of the Jota fee was cash.
Last year we made profit of £40m ( £33m between July and December – again isn’t reflective of cash but…
— GMD (@Adamski250567) February 4, 2024
On February 10th last year Lawwell told the Celtic website:
I am honoured to present my first Chairman’s statement on behalf of Celtic Football Club. Being back to chair the club that I have always supported and served for almost 18 years as CEO, is a privilege. I look forward to fulfilling the role, and playing my part in our Club going forward.
The results for the six months ended 31 December 2022 show revenues of £76.5m (2021: £52.9m) and a profit before taxation of £33.9m (2021: profit before tax of £27.6m). The profit from trading, representing the profit excluding player related gains and charges, amounted to £28.1m (2021: profit of £7.0m).
The key factors driving the improvement in the underlying trading performance in the six months to 31 December 2022 compared to the same period last year, was the direct qualification to the UEFA Champions League Group stages.
There is no reason to suspect that this season’s profit won’t again be in the region of £34m, nudging the bank balance comfortably above the £100m mark after recording £72m at the end of June.
While those funds are stockpiled the team on the park is short in multiple areas, led by a manager that looks increasingly unhappy after failing to get the club to be braver in the transfer window. It appears that an age limit of 24 as been imposed with transfer fees capped at £3m.
The announcement is expected between the away matches at Hibs and St Mirren, there is unlikely to be much of a positive reaction on social media when the product (team) is looking vulnerable and delivering little in the way of entertainment.
Daizen Maeda is expected to return to action after being involved in the Asian Cup but it will take much more than the return of the Japan winger to get the on-field performances looking as healthy as the Balance Sheet.
3 months ago. pic.twitter.com/YhdSc2d2QA
— Stephen (@Stephen55767497) February 4, 2024
Enough js enough.
Enough is enough.
You incompetent Barstewards, enough is enough.
Carrying that highly unusual level of liquidity is a red flag, imo.
It could be messaging;
– the Board doesn’t have confidence / ideas to invest for growth?
– the Board is building cash to acquire related business[es] ?
– the Board is building cash to cover an expected, exceptional liability?
– the Board doesn’t know what it is doing? 🙂
Additionally, carrying such cash reserves;
– could be viewed as a grossly negligent misuse of capital [i.e. earning minimal interest]
– begs the question why the excess cash is not being returned to shareholders
e.g. via a Special Dividend
– begs the question: why does the business fail to make any progress in
European competitions – and the opportunity to secure more revenues and brand
exposure – when there are abundant resources to invest in progress?
etc.
But, DD – and presumably the other 4 main shareholders – are OK with the above?
A bland statement to the Stock Exchange will suffice?
Lovely reading indeed – IF we were seven or eight points ahead…
But we fcukin well are not –
And £60 million going to Sevco is UNTHINKABLE and bloody UNFORGIVABLE !
Lawwell makes sure Celtic has a good stash, then does his mates across the city a big favour with next seasons larger CL money to get them on their feet. What a pal
Can’t remember when Pete The Cheat was employed by the Huns for 18 years.
Hail Hail.