CELTIC have released their year-end financial results and it’s good reading for the Parkhead club.
After reporting a significant pre-tax loss last yearthe hoops were able to post a profit of £6.1m for financial reasons that have just disappeared.
in the park Celtic returned to himself Premier League name from Rangerswith player trading and the easing of crowd restrictions due to the pandemic among the reasons for the rise in revenue cited by club executives.
One of the headline figures shows that the club’s total revenue has increased by 45 percent compared to last year’s figures.
The £60.8m revenue figure for 2021 was down from £70.2m the previous year, with much of this due to difficulties during the height of the Covid-19 pandemic, primarily the lack of fans able to attend matches.
But this year the Hoops posted a much healthier total revenue of £88.2m for the year to June 30, 2022.
Part of that can be attributed to what the club described as a “record profit” from player sales of £29m.
This figure includes the departure of likes Odson Eduard and Christopher Ayer, who left the club at the end of the previous financial year, until June 2021.
The figure reported a year ago was £9.4m, following another big inflow of £24.2m in 2020.
In terms of new players, the Hoops posted spending of £38.4m, a significant increase on the £13.5m reported a year earlier.
It will accept Ange PostecoglouTransfer deals throughout the last season.
All in all, a much better set of numbers for Parkhead and their fans.
Total pre-tax profits were reported at £6.1m, painting a much healthier picture than a year ago when an £11.5m loss was the headline figure.
As well as the increased cost of signing players, there has also been a marked rise in Celtic’s operating costs, a figure which includes wages.
This figure was up a significant 23.4 per cent to £91.7m, compared to the £74.4m figure posted last year.
In total, the Hoops’ cash balance stands at £30.2m – net of bank borrowings – up from £16.6m last year.
As the financial year ends in June, this means that these figures do not include income from participation in League of championsor any expenditure or receipts in respect of transfers from that point.
Commenting on the set of figures, Celtic chairman Ian Bankier highlighted the key role of a “more normalized trading environment” following the outbreak of Covid-19.
He also emphasized the importance of the club’s player trading model, and also called European football the biggest influence of the lot on positive financial results.
With the new Champions League format coming in a couple of years, the Parkhead boss believes it could open up even more opportunities for the club on the continental stage.
The banker said Celtic site: “The main driver of revenue growth was the recovery of a more normalized trading environment as we emerged from Covid-19 and were able to operate at full stadium capacity for all but five early season matches where crowd restrictions remained. .
“This, together with a record player trading profit for the year of £29.0m (2021: £9.4m), ensured the reported profit was achieved. The contribution of player trading profits, especially during the Europa League years, ensures that we maintain a healthy and sustainable financial future. In terms of funding and liquidity, our cash at the end of the year, net of bank borrowings, was £30.2m (2021: £16.6m). The increase this year is mainly due to the timing of season ticket sales taking place later in the summer of 2021.
“The Covid-19 outbreak from December 2021 to February 2022 has been mitigated by the SPFL’s initiative to postpone the winter break to minimize disruption and protect vital matchday ticket revenue for Scottish football as a whole.
“As a result, our fans were able to attend two more matches and we did not suffer any reduction in revenue due to closed matches.
“Therefore, the financial performance in the second half and the decline in profit during this period can be attributed to the seasonality of the trade and the timing of the profit from the player trade, which was weighted towards the first half of the financial year.
“The benefits of automatic qualification have brought confidence for the season ahead, allowing us to support our coach and strengthen the playing squad.
“We continue to balance the benefits of investing in experienced players alongside young talent with the aim of improving the performance of all players on the pitch and trading when the conditions are right. Successfully executing this model is challenging but vital for such clubs. as Celtic.
“Our ability to participate in European competitions has the greatest impact on the financial and sporting condition of the Club. As Michael Nicholson pointed out in his report, the format of the Champions League will change in 2024.
“This will provide additional opportunities and broaden the rights of the media. Our challenge is to be ready to make the most of the opportunities that will develop by remaining financially strong and stable while investing wisely in the squad of players, the football department and the sports infrastructure and facilities.
“We are very confident in our business model, which during my time in office has demonstrated its strength, especially during difficult times. In closing, I would like to thank all my colleagues at Celtic whose enormous efforts have made this a pleasant transitional year possible. also give credit to our excellent support who supported the Manager and the team every step of the way.’
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