Fair Game Index delivers verdict on how well Celtic is being run by the board, expert weighs in

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Celtic has been listed as one of the best-run clubs in the United Kingdom according to a report from the Fair Game Index.

The report looked at the top seven divisions of the English leagues and the top four divisions in Scotland and measured the clubs on 226 ‘touchpoints’ for a comprehensive analysis of English and Scottish professional football.

In the context of the Scottish Premiership, Celtic came out top in four of the five categories that measured their performance in the report where the Parkhead club scored 80.6 out of 100 as the best overall run club in the country.

As well as ranking top in the overall section, Celtic were the best in financial sustainability, good governance, and equality and ethical standards.

However, in terms of fan engagement, Celtic have some work to do as the club sits 13th out of the 40 Scottish clubs with teams like Falkirk, St Mirren, Partick Thistle and even Rangers outperforming them.

But, it was in financial sustainability where Celtic outranked all teams in Scotland and England as the club’s superb business model pays off.

The positives and negatives of Celtic’s business model

As every Celtic fan knows, a club’s progress is defined by how it performs on the park. And whilst a healthy balance sheet and a cash surplus is great, there does need to be a balance of creating healthy profits coupled with investment in the first team squad.

So to get a Celtic perspective from a financial view on the report, 67 Hail Hail spoke to GRV’s Head of Football Content, Business, Finance & Governance, Adam Williams.

Williams told 67 Hail Hail, “The Fair Game Index is an imperfect metric and I’ve seen some pushback among fans, but in principle, it is recognising the right things.

“It seeks to reward ‘well-run’ clubs and define what that term, which is fundamentally subjective, might mean.

“From Dermot Desmond’s point of view, a well-run club is one that consistently generates profits, satisfies its shareholders and can validate its long-term business objectives.

“For Celtic supporters, a well-run club is one that consistently shows ambition, is true to its values, and excels in the most traditional metric: winning trophies.

“The two points of view aren’t mutually exclusive, of course. Success on the pitch begets success on the balance sheets, but the relationship between fans and board can be damaged if they can’t see the others’ point of view.

“For the most part, the reason Celtic rank so highly on this index is because they are a publicly listed company with additional financial reporting requirements.

“They have an obligation to be transparent for their shareholders, and that means supporters can also pour through the books to see what is going on.

“That said, I know not all Celtic fans are happy with the strategy pursued by the board.

“Their interim report in February this year showed they have £67m cash in the bank, and yet they have had a relatively modest summer. That’s around £60m more than Rangers.

“I can understand fans’ frustrations. They want a team who can compete both domestically and in Europe, and you don’t get that by penny-pinching.

“However, the board will take the view that they are proving their long-term profitability to would-be investors. They pay only a modest dividend each year, and I would forecast that Desmond will ultimately want to sell his stake one day and generate a massive return.

“To do that, you need to prove your business plan is viable. That’s why there is the lack of spending that has justifiably upset supporters.”

Celtic supporters and investment in the first team

One of the biggest gripes that some Celtic supporters have is that the club does not take enough risks in the transfer market in terms of financial outlay.

Many fans, whilst recognising the importance of the player trading model, are growing tired of watching the club signing players on the cheap and who are not good enough to make a material impact on the Celtic first team.

Last summer was a perfect example of that with just one player, Luis Palma, out of eight new signings playing a material part in the double-winning season.

However, proper financial governance is important to Celtic because, with the prize money on offer in Scotland, the club simply cannot rely on winning domestic silverware as a reliable stream of sustainable income.

There does seem to be a shift in Celtic’s transfer policy this summer after the signing of Adam Idah and whilst many fans understand that the club cannot buy four or five players at that value, they do want to see the club raise the bar in terms of shopping in the higher player bracket without breaking the bank.

Then and only then, will progress be made on the European stage and Celtic can continue to enjoy the riches that come with that.