For some Celtic fans, it is uncomfortable to boast about the club’s monetary strength at a time when it has so far been mediocre.
Kasper Schmeichel arrived on a flexible transfer, a deal agreed by backup goalkeeper Viljami Sinisalo and Paulo Bernardo returned for good after last season’s loan.
We’re now hearing about a new offer to sign Adam Idah as well, but that would be another move that would simply get the team back to where it was from last season rather than directly.
So when Celtic’s board of directors informed the London Stock Exchange that its monetary functionality for the year ending June 30, 2024, would exceed expectations, it outraged some.
Fans need to see the club invest in the most productive team imaginable on the pitch with an expanded UEFA Champions League on the horizon that presents new opportunities for Celtic.
Despite recruitment concerns, Celtic are making more money than ever before and there’s no denying that this is both a strength and a weakness of the club.
To get the context and research behind Celtic’s latest financial update, 67 Hail Hail spoke to football finance expert Adam Williams. He tells us the Bhoys are back on their path to one of the most successful clubs on the continent.
Williams said: “Celtic are one of the most successful clubs in Europe when they posted a £40m pre-tax surplus last season.
“I expect their advertising and adjustment earnings to increase slightly, while the profits from the Champions League season are the gold price for investors.
“Their source of income from UEFA will be higher due to the prize money they won with a win and a draw at the organisation stage, which will bring them around £3 million.
“So I expect to see a new profit record exceeding £120m between 2022 and 2023. In terms of profits, I don’t see why they shouldn’t be back in the top 10 of successful tops in Europe. Post more Over £40 million in profits in consecutive seasons is sensational for a club like Celtic.
“I can understand that enthusiasts need to see more activity in the moving market in light of those figures, but from a business standpoint, it should be respected.
“They’re incredibly well managed. I think from a profit multiplier point of view, the value of the club is probably between £400 and £500 million.
“When the stock price rose sharply earlier this year, there was speculation that Desmond might be looking for an exit route. And although there is a lot of speculation and nothing to say about his next plans, the club lately is looking like an investor’s dream.
In the club’s provisional accounts for the semester ending December 31, 2023, there is more than £67 million in the bank. Tens of millions will most likely be accounted for in the full annual report by the end of June 2024.
Money never leaves the club, so while it may be inefficient to keep money reserves, it will be used to some extent.
From the fans’ perspective, it is up to the board of directors to put in place a strategy to make the most productive investments, whether in the team or in infrastructure projects that offer the option of greater good fortune and long-term income.
There is no doubt that the club is in a position of strength, but that balance is something it has not achieved in recent years.
It’s time for new ideas and a way to use available resources. Otherwise, for fans, it will just be numbers on a piece of paper.