67 Hail Hail can reveal how Celtic’s excessive cash reserve helped in their pursuit of Wilfried Nancy.
Celtic announced the appointment of Nancy earlier this week, who has immediately got down to work at the club.
He is the long-term replacement for Brendan Rodgers, who sensationally resigned after the defeat against Hearts.
These appointments come at a cost though, including the return of Martin O’Neill, and our chief financial correspondent Adam Williams has been able to shed some light on the finances involved.
- READ MORE: Former Celtic scout who found Virgil van Dijk explains why Wilfried Nancy will be a hit with fans
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Wilfried Nancy appointment a splash in the water for Celtic
Fan anger towards the board over the stockpiling of cash has been at the centre of frustrations in recent years.
The club’s accounts from the 2023/24 season said they had £77m in the bank, and probably have around the same.
With Rodgers in the last year of his contract, he would still need paying off, but Williams explained to 67 Hail Hail that with the amount of cash Celtic have at their disposal, the money involved in the managerial change won’t be felt.
He said: “Rodgers had less than a year remaining on his deal, and his salary was reportedly around £3m.
“We don’t know the specifics of his contract, but these agreements often have break clauses in them that protect the club financially. As I’ve said before, I’d cautiously estimate that the compensation will likely be around £1m.
“That will likely be paid out over the remaining duration of his deal rather than in one fell swoop, although it will hit the bottom line immediately from an accountancy perspective.
Why on earth are the board hoarding so much cash?!
- 2021: £19m
- 2022: £32m
- 2023: £72m
- 2024: £77m
- 2025: £77m
“Celtic can easily absorb that hit. They have so much free cash available. Indeed, that is one of the reasons that many supporters are so unhappy with the board. I can fully understand that, but this is one situation in which having that kind of liquidity buffer is advantageous – you can make decisions like this based on football, not finances.
“In terms of Nancy’s appointment, it’s reported to have cost Celtic £2m in compensation. I assume that includes the cost of bringing his staff over too.
“There are always going to be extra hidden costs when you’re recalibrating your management team likes this. There will be legal fees, agents’ fees, compliance costs, signing-on bonuses, integration costs and so on.
“All in all, I reckon the total cost of the overhaul will probably have been in the region of £4m. As I say, given the cash reserves that they have built up, it’s a no-brainer. If that is the difference between qualifying the Champions League or not, you make that money back immediately – and with interest.”
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