The Celtic and Adidas partnership is in rude health with the third year of the five-year agreement between the two organisations raking in record merchandise revenue for the club.
Celtic released the summary of their annual financial results for the year-ended 30th June 2023 last month, but a closer look at the glossy, detailed annual report that is published every year shows just how successful the Adidas project has been for the Bhoys.
A section on merchandise income states: “The third year of our 5-year kit partnership with adidas produced record income for the division, 16.4% up on the previous year’s record sales levels as both our stores and e-commerce platform continued to perform ahead of expectations.
“Replica kit sales were very strong and new product collaborations with adidas saw the introduction of various new and bespoke products to compliment an already strong product range. The popularity of these products resulted in gross margins being higher than anticipated due to high level of sell through of ranges at full price.”
Celtic fans are the power behind the club
In simpler terms, Celtic fans are buying Adidas gear at an extraordinary rate, well beyond the expectations of the club and the German sportswear manufacturer.
Merchandise revenues increased by £4.2m on the 2022 number, bringing the 2023 total to an unprecedented £29.1m. That’s the power of the Celtic support right there.
In conjunction with season ticket sales and UEFA Champions League ticket sales, as well as other matchday income, fans are contributing the majority of Celtic’s massive £119.9m total group revenue for 2023. That should never be forgotten – certainly not by the club.
Yes, the Bhoys are being wisely steered financially by the board and the executive team, but it’s the fans who provide the financial muscle that puts Celtic beyond every other club in Scotland. It should be a platform for growth and progress on the European scene.
It’s often overlooked that Celtic’s wealth is primarily due to fan spending. It’s the ordinary supporter that has provided the catalyst for the success we’ve enjoyed over the last decade, while others in Scottish football complain of an unfair financial advantage. That fan contribution should always be celebrated.
In other news, Diego Simeone talks up Celtic ahead of Atletico Madrid trip to Glasgow.
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