Celtic Chief Financial Officer Chris McKay has provided new details on why the club’s bank balance in year-end accounts was so high.
In Celtic’s annual report for the year ending 30th June 2023, a mammoth £72.3m cash balance was declared after record revenue resulting from a year of strong ticket sales, UEFA Champions League participation, massive merchandise income and profitable player trading.
While impressive, the figure cast a shadow over the club’s summer transfer window with some supporters and pundits feeling a lot more should have been done to tool up Brendan Rodgers’ treble-winning squad for a tilt at European progression.
However, as McKay explains in a new interview published by Celtic, the £72m balance is from a snapshot in time and important context needs to be taken into account when analysing the club’s situation.
McKay comments on Celtic cash balance
He said, when challenged on the figure by club media man Gerry McCulloch: “I think when you’re looking at football finances, in particular, it’s important not to pick a point in time. You need to look at it over a medium-term horizon.
“Just to give you a couple of examples – just after the year-end we paid £11.5m in taxes in relation to that financial year which clearly reduces the balance significantly.
“We’ve got a significant sum ring-fenced for the re-development of Barrowfield. We’ve also got plans for the stadium for the year ahead which we wish to invest in. So all of these things feed into how that cash is planned for the year ahead.
“Over and above that, Celtic have always had a plan B and you need a buffer, particularly for the years you are not in the Champions League and you’re in the Europa League.”
All of that is understandable and it does provide a decent response to those who were shocked by how much cash is being retained by the club.
Nonetheless, questions will remain on whether or not the board found the right balance between financial results and squad investment over the summer. Did they do everything possible to equip Rodgers with what is needed?
January is hopefully seen as a chance to prove the doubters wrong and show that the executive team is ready to invest in Celtic’s future on the pitch as much as off it.
In other news, Michael Nicholson and Peter Lawwell take Rangers digs at Celtic AGM but a serious point is made.
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