Source: Team_Talk
Celtic halve both debt and profit
Up until June 30 of this year, according to the Parkhead club's preliminary results, profit before taxation was £2million, down from £4.44million last year.[LNB]However, bank debt was reduced to £1.51million net of cash, from £3.52million in 2009.[LNB]Celtic chairman John Reid claims the results show the club to be on "solid footing" in the midst of a financial downturn.[LNB]He said: "From a financial perspective, our results for the year continue to provide us with a solid footing and remain highly creditable.[LNB]"Turnover, at £72.59million, was on a par with the £72.95million of 2007/2008, despite playing only 26 home games rather than the 28 of the year before.[LNB]"Merchandising sales improved and multimedia sales increased.[LNB]"Operating expenses reduced by 4.3 per cent in the year (£2.74million) to £61.36million.[LNB]"Exceptional operating expenses of £2.78million were incurred, mainly relating to player impairment values and costs from onerous contracts and employment contract terminations.[LNB]"These are good results in the present economic context.[LNB]"Gains on player trading of £1.55million this year against £5.70million last time, and higher amortisation costs from investment in players, offset by the savings in operating expenses, result in our profit before tax of £2million compared with £4.44million the year before.[LNB]"Our year end bank debt, net of cash, was £1.51million, down from £3.52million the previous year."[LNB]Reid continued: "Investment in players increased from £5.11million to £8.53million, reflecting our policy of and commitment to strengthening the team within the parameters of a sustainable financial model.[LNB]"Put simply, last year we brought in less from selling players and spent more in bringing in new players than in the previous year.[LNB]"At 53.4 per cent, the ratio of total labour cost to turnover has been maintained at the same level as last year - reflecting a total outlay on labour of £38.75million.[LNB]"These results have been achieved in trying and often frustrating circumstances and substantially in reliance upon the tremendous contribution of the Celtic support.[LNB]"Unlike other sectors, the football transfer market has not been depressed by recessionary influences; indeed wages for good quality players, as well as transfer fees have increased, buoyed mainly by the broadcasting money available in England.[LNB]"The recently agreed arrangements with Sky/ESPN are significantly less than could have been the case had Sky's offer been accepted last year, and are a hard lesson in what could and should have been a far more positive outcome for all of the SPL clubs.[LNB]"This only adds to the many challenges we face in the coming season: money is tight for all of our customers; much of Scottish football is now edging along the narrow line of solvency; we must continue to seek to ensure that supporters are satisfied that they are receiving value for the money that they are asked to spend; and, for ourselves, we face a difficult path to our initial goal of Champions League group stage qualification."[LNB][LNB]
