Celtic’s off-pitch results get muted reaction from markets

Fans of Celtic FC – including Irish multimillionaire Dermot Desmond – will have been glowing after their opening-round victory over Slovan Bratislava in the Champions League on Wednesday, as they racked up a 5-1 victory.

 

However, Celtic’s shareholders – of whom Desmond is the largest, with roughly 35 per cent of the club – might have a slightly more measured view in light of the club’s financial figures for last season, which were released on Monday.

The club’s revenue grew from £119.8 million at the end of June 2023 to £124.5 million at the end of June 2024.

 

While revenue from football and stadium operations fell slightly, from £51.4 million to £48.9 million, merchandising rose from £29 million to £30 million, and multimedia and other commercial activities leapt from £39.2 million to £44.5 million.

However, it made less money from the sale of players, booking a profit of £6.6 million compared with £14.4 million the year before.

 

It was also missing £13.5 million in “other” income, which it declined to particularise. Chairman Peter Lawell coyly referred to it as “non-recurring, which was specific to the prior year”, rather than set out that it was compensation the club received from the departure for former manager Ange Postecoglou to Spurs, and business interruption insurance arising out of the pandemic.

Its expenses also rose significantly, from £95.4 million to £105.3 million, and both Lawell and the club’s chief executive Michael Nicholson repeatedly emphasised how much they were reinvesting in the club.

 

All of which meant that the club’s operating income fell from £40.1 million to £14.5 million, and its after-tax profit was £13.3 million, down from £33.3 million the year before.

 

Overall, it’s a healthy balance sheet for the club. Profits might be down but its cash balance stood at £77.2 million, and its accumulated profits increased to £58.1 million.

Nevertheless, Lawell wrote that “we cannot and must not be complacent and we must strive for progression as a club as the football industry evolves at a remarkable pace”.

 

Which means Champions League qualification – and progression – is utterly vital to keep pace with its European peers.

 

Financial markets are nothing if not unsentimental – even when it comes to football clubs – and investors seemed to give their own verdict in the aftermath of the results. Having hit a high of £2.10 in early September, the club’s shares fell to a low of £1.65 the day before the Bratislava match.