Celtic FC supporters, amongst which is Irish tycoon Dermot Desmond, would have been elated following their first-round triumph against Slovan Bratislava with a score of 5-1 in the Champions League on Wednesday. Nevertheless, the club’s stakeholders, including Desmond who holds approximately 35% of the club, may have a more reserved take considering the club’s financial performance from the previous season unveiled on Monday.
Celtic FC’s profit rose from £119.8 million at the end of June 2023 to £124.5 million a year later in June 2024. Despite a slight decline in the revenue from football and stadium operations, plummeting from £51.4 million to £48.9 million, there was an increase in merchandising from £29 million to £30 million. Notably, multimedia and other commercial activities soared from £39.2 million to £44.5 million.
But, the revenues from player sales dipped, resulting in a profit of £6.6 million compared to the previous year’s £14.4 million. An unexplained discrepancy of £13.5 million in other income was also noted, something Chairman Peter Lawell vaguely referred to as “non-recurring”, rather than specifying that it was compensation received from the club following the exit of former manager Ange Postecoglou to Spurs, and business interruption insurance due to the pandemic.
Operating costs surged from £95.4 million to £105.3 million, and both Lawell, and Michael Nicholson, the club’s chief executive, persistently emphasized the significant reinvestment into the club. Consequently, this resulted in a decrease in the club’s operating income from £40.1 million to £14.5 million, and the after-tax profit was £13.3 million, down from £33.3 million in the previous year.
The financial health of the club is strong despite a decline in profits. The club holds a cash balance of £77.2 million, with accumulated profits escalating to £58.1 million. Lawell, however, emphasised the importance of not resting on the laurels and pushing for constant growth as the football industry is rapidly changing. Thus, Champions League progression is of utmost significance to maintain a competitive edge amongst other European clubs. The financial markets, characteristically unsentimental, didn’t react favourably to the club’s results, which was reflected in the share prices. The shares, which reached a peak of £2.10 in early September, dropped to £1.65 just before the match in Bratislava.