For some Celtic supporters there’s an uncomfortable aspect to trumpeting the club’s financial health during a transfer window that is proving lacklustre so far.
Kasper Schmeichel arrived on a free transfer, a deal was done for back-up goalkeeper Viljami Sinisalo and Paulo Bernardo returned permanently after last season’s loan.
We’re now hearing there’s a renewed bid to sign Adam Idah, too, but that’d be another transfer that simply brings the squad back to last season’s level rather than outright improving it.
So when the Celtic board updated the London Stock Exchange with a proclamation that their financial performance for the year ended 30th June 2024 would exceed expectations, it rankled some.
Fans want to see the club invest in the best team possible on the pitch with an expanded UEFA Champions League on the horizon that presents new opportunities for Celtic.
Celtic are now an ‘investor’s dream’ says financial expert
Despite recruitment concerns, Celtic are making more money than ever and it’s undeniable that this is a strength of the club, not a weakness.
To get context and analysis on Celtic’s latest financial update, 67 Hail Hail spoke to football finance expert Adam Williams. He tells us that the Bhoys are again on track to be one of the most profitable clubs on the continent.
Williams said: “Celtic became one of the most profitable clubs in Europe when they posted a £40m surplus before tax last season.
“I expect their commercial and matchday income to increase by a touch, while another season of Champions League income is the golden ticket for investors.
“Their earnings from UEFA will be slightly higher due to the prize money they have earned from one win and one draw in the group stage, which will be worth about £3m to them.
“I expect to see a new revenue record, therefore, surpassing 2022-23’s £120m. In terms of profit, I don’t see why they wouldn’t be in the top 10 most profitable in Europe again. To post £40m-plus in profit in consecutive seasons is pretty sensational for a club like Celtic.
“I can certainly understand fans wanting to see more activity in the transfer market in light of these figures, but from a business point of view, you have to respect it.
“They are incredibly well run. I think from a revenue multiplication perspective, you’re probably looking at a club worth £400-500m.
“When the stock price rose sharply earlier this year, there was some speculation that Desmond might be looking for an exit route. And while that was very much speculation and there is nothing to say that is in his immediate plans, the club are looking like an investor’s dream at present.”
Celtic must find a balance between cash reserves and investment
In the club’s interim accounts for the six months ending 31st December 2023, there was over £67m in the bank. There will likely be tens of millions declared on hand in the full annual report to the end of June 2024.
The money isn’t ever siphoned off out of the club, so while it may be inefficient to keep stockpiles of cash, it will eventually be used in some capacity.
From a fan perspective, the onus is on the board to put in place a strategy to best invest it – whether it be in the team directly or plunged into infrastructure projects that provide the opportunity for more success and revenue down the line.
There’s little doubt that the club is in a strong position but that balance is something they haven’t managed to find in recent years.
It’s time for new, fresh thinking and a pathway to use the resources available. Otherwise, for supporters, it’s all just numbers on a bit of paper.
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