Celtic on Monday revealed a 15% drop in annual turnover and an increase in bank debt of more than £4million - a financial performance partly attributed to "unacceptable results" under Tony Mowbray.
The Parkhead club posted a loss before taxation of £2.1million after making a profit of £2million the previous year. Turnover dropped to £61.7million and net bank debt rose to £5.85million in the year up to June 30, according to the club's preliminary financial results.
"The unacceptable results on the football pitch meant that a change in the football management team was needed," Hoops chairman John Reid told the club's official website.
"Some pride was then restored from an unbeaten run in the SPL at the end of the season, with Neil Lennon taking temporary charge.
"But that does not in any way compensate for the extreme disappointment and frustration we and all Celtic supporters felt last season. It was simply not good enough for this club and those who support it.
"Fortunately, the relatively strong financial position we have insisted in maintaining in recent years has enabled us to continue to rebuild even after last year's setback.
"But just as football and financial strength are essential partners in progress, so too they affect each other adversely when we are not succeeding as we should. Thus the combination of the financial/economic recession and disappointing football results have taken their toll in this year's report."
Reid continued: "Our turnover at £61.72million was well down on £72.59million the previous year.
"This was predominantly the effect of participation in UEFA Europa League rather than UEFA Champions League but also due to a lower level of season ticket sales, reduced merchandising revenues from one kit launch rather than two, and a drop in domestic media income following the demise of Setanta."
Reid revealed that operating expenses had fallen by more than £4million but the extensive changes in the playing staff had helped contribute to the annual deficit and the increase in the "sustainable" bank debt.
Source: PA
