Stop panicking: why Celtic £6m loss isn’t a massive deal

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Celtic are brassic! It’s all falling apart!

That’s the news coming from our rivals south of the Clyde, who know a thing or two about finances.

If you believe the hyperbole, it’s all collapsing at Celtic. We’ll have to sell Edouard for a packet of wine gums and an Amstrad emailer. Our stadium will be partially closed, and our main source of revenue will be live-streaming Rod Stewart concerts.

In actuality, yes, Celtic have made a loss. The club posted a £6m deficit in revenue in their half-year financial report. That’s the cost of Vasilis Barkas, plus an extra arm.

In terms of cash in the bank, Celtic have gone from £32.9 million to £19.7 million. That’s largely because there were no significant departures in the summer, and that global pandemic you hear about. Simply: we didn’t sell anyone for megabucks, and there’s nobody in the stands.

If anything, we could’ve predicted far, far worse. It’s a testament to how valuable the supporters are that match-day revenue is such a driver of the coffers at Paradise. You’d have thought that’d mean better treatment of the support, but that’s an argument for 1000 other articles.

So, what now? In the words of Kent Brockman from the Simpsons, would you say it’s time for everyone to panic?

Celtic will have expected losses like these

Frankly, this was coming. We knew that Covid-19 was already having an impact on the balance sheet at Celtic. KPGM’s report made for grim reading across Europe’s elite sides, and in comparison to even the biggest behemoths in the game, the club isn’t doing too badly.

It’s a bit of a Catch-22; Celtic’s financial situation would be boosted by selling the likes of Edouard and Ajer, but losing them before the season would’ve had a terrible impact on a squad chasing 10IAR. Granted, we’re not going to achieve that historic landmark regardless, but it would’ve been an awful look to sell on the cusp of glory.

A £6m loss, though? That’s not as catastrophic as it could be. The ironic jeering from Ibrox is as well-placed as a Morelos shot in a Glasgow Derby. Worry about your own money.

Yes, the financial impact of the global pandemic has hit Celtic hard. Nobody in a boardroom anywhere in world football, I’d argue, would’ve had a contingency for something this seismic. Everyone is taking a hit, and if ours is below £10m given the importance of supporters, then that’s not bad at all.

When the summer comes, we’ll know the real extent of the damage. Some particularly painful decisions will need to be made, I’m sure.

But for now? It could be far, far worse.

ELSEWHERE: A Celtic hero monitors the striker situation.