Deloitte Money League

BenLynch29

Well-known member
#1
Report was published a little while ago, but I'm just now seeing it. Celtic makes an appearance on page 33 in the new "Eurovision" section which highlights 'big' clubs outside of the top 5 leagues that don't otherwise make it onto the main list.

https://www2.deloitte.com/content/d...te-uk-deloitte-football-money-league-2019.pdf

For those who aren't familiar with this annual report, Celtic was on the main top 20 list as recently as the 2008 (17th) report based on 2005-06 financial results. I believe they topped out at 16th place way back in 2006.

While the world has certainly changed, due in no small part to both Russian Oligarch's and Arab Sheiks buying up teams as their personal play things as well as the ridiculous amount of broadcast money that has flowed into the game, Celtic have basically stood still. Comparing Celtic's figures for matchday, broadcast, and commercial revenue streams vs our peers (or more accurately, those we're like to be our peers) for both 2019 and 2008 it becomes plain as day that the board and management of the club have utterly failed in bringing the club into the 21st century from a business standpoint. The club isn't run any differently than it was 10-15 (or even 20) years ago, and we've stagnated on every front with respect to business results. And yes, I realize the club just posted record financial results this past year, but that is small beans compared to where the club should, and can, be if it were managed appropriately. And to be fair, some of the reported decrease is due to exchange rate changes (thanks Brexit!), but that is quite frankly an excuse in my opinion as the cumulative turnover for the top 20 clubs has climbed from €3.7B in 2008 (the last time Celtic were represented) to now €8.3B representing an annual compounded growth rate across all revenue streams of 7.6% over that time period. Remarkably, Celtic's turnover has only grown by 0.23% over the same time period and 100% of the growth has actually come from broadcast revenue. Minimal progress has been made on the commercial front, and we've actually gone backwards slightly on matchday income. Had we grown the business by just 4% per year, which is very doable IMO, over the past 11 years, Celtic's revenue would have been €172M rather than the €115M we actually generated last year. That's €55M in recurring income that we don't have because the board and management team haven't been able to grow the business at even a measly 4%, rather they've grown it by less than 1/2 the rate of inflation and 100% of the growth they did achieve was due to the growth in UEFA payments for Champions League rather than the result of business planning or strategic decisions.

I may have to do a write-up, or several of them, and submit them to James to publish on his blog. But this is beyond ridiculous IMO the way our board and management have failed the club and its supporters. Spoiler alert: it isn't all about television money!
 

michael duffy

Well-known member
#2
Report was published a little while ago, but I'm just now seeing it. Celtic makes an appearance on page 33 in the new "Eurovision" section which highlights 'big' clubs outside of the top 5 leagues that don't otherwise make it onto the main list.

https://www2.deloitte.com/content/d...te-uk-deloitte-football-money-league-2019.pdf

For those who aren't familiar with this annual report, Celtic was on the main top 20 list as recently as the 2008 (17th) report based on 2005-06 financial results. I believe they topped out at 16th place way back in 2006.

While the world has certainly changed, due in no small part to both Russian Oligarch's and Arab Sheiks buying up teams as their personal play things as well as the ridiculous amount of broadcast money that has flowed into the game, Celtic have basically stood still. Comparing Celtic's figures for matchday, broadcast, and commercial revenue streams vs our peers (or more accurately, those we're like to be our peers) for both 2019 and 2008 it becomes plain as day that the board and management of the club have utterly failed in bringing the club into the 21st century from a business standpoint. The club isn't run any differently than it was 10-15 (or even 20) years ago, and we've stagnated on every front with respect to business results. And yes, I realize the club just posted record financial results this past year, but that is small beans compared to where the club should, and can, be if it were managed appropriately. And to be fair, some of the reported decrease is due to exchange rate changes (thanks Brexit!), but that is quite frankly an excuse in my opinion as the cumulative turnover for the top 20 clubs has climbed from €3.7B in 2008 (the last time Celtic were represented) to now €8.3B representing an annual compounded growth rate across all revenue streams of 7.6% over that time period. Remarkably, Celtic's turnover has only grown by 0.23% over the same time period and 100% of the growth has actually come from broadcast revenue. Minimal progress has been made on the commercial front, and we've actually gone backwards slightly on matchday income. Had we grown the business by just 4% per year, which is very doable IMO, over the past 11 years, Celtic's revenue would have been €172M rather than the €115M we actually generated last year. That's €55M in recurring income that we don't have because the board and management team haven't been able to grow the business at even a measly 4%, rather they've grown it by less than 1/2 the rate of inflation and 100% of the growth they did achieve was due to the growth in UEFA payments for Champions League rather than the result of business planning or strategic decisions.

I may have to do a write-up, or several of them, and submit them to James to publish on his blog. But this is beyond ridiculous IMO the way our board and management have failed the club and its supporters. Spoiler alert: it isn't all about television money!
lot tae digest there Ben,Stella time methinks,£87 mill operating costs to me is unsustainable,the macro economics,ah need a wee bit merr time HH
 

TET

Well-known member
#3
Report was published a little while ago, but I'm just now seeing it. Celtic makes an appearance on page 33 in the new "Eurovision" section which highlights 'big' clubs outside of the top 5 leagues that don't otherwise make it onto the main list.

https://www2.deloitte.com/content/d...te-uk-deloitte-football-money-league-2019.pdf

For those who aren't familiar with this annual report, Celtic was on the main top 20 list as recently as the 2008 (17th) report based on 2005-06 financial results. I believe they topped out at 16th place way back in 2006.

While the world has certainly changed, due in no small part to both Russian Oligarch's and Arab Sheiks buying up teams as their personal play things as well as the ridiculous amount of broadcast money that has flowed into the game, Celtic have basically stood still. Comparing Celtic's figures for matchday, broadcast, and commercial revenue streams vs our peers (or more accurately, those we're like to be our peers) for both 2019 and 2008 it becomes plain as day that the board and management of the club have utterly failed in bringing the club into the 21st century from a business standpoint. The club isn't run any differently than it was 10-15 (or even 20) years ago, and we've stagnated on every front with respect to business results. And yes, I realize the club just posted record financial results this past year, but that is small beans compared to where the club should, and can, be if it were managed appropriately. And to be fair, some of the reported decrease is due to exchange rate changes (thanks Brexit!), but that is quite frankly an excuse in my opinion as the cumulative turnover for the top 20 clubs has climbed from €3.7B in 2008 (the last time Celtic were represented) to now €8.3B representing an annual compounded growth rate across all revenue streams of 7.6% over that time period. Remarkably, Celtic's turnover has only grown by 0.23% over the same time period and 100% of the growth has actually come from broadcast revenue. Minimal progress has been made on the commercial front, and we've actually gone backwards slightly on matchday income. Had we grown the business by just 4% per year, which is very doable IMO, over the past 11 years, Celtic's revenue would have been €172M rather than the €115M we actually generated last year. That's €55M in recurring income that we don't have because the board and management team haven't been able to grow the business at even a measly 4%, rather they've grown it by less than 1/2 the rate of inflation and 100% of the growth they did achieve was due to the growth in UEFA payments for Champions League rather than the result of business planning or strategic decisions.

I may have to do a write-up, or several of them, and submit them to James to publish on his blog. But this is beyond ridiculous IMO the way our board and management have failed the club and its supporters. Spoiler alert: it isn't all about television money!
Celtic generated record revenue of £101.6m in 2017/18.

This is mainly driven by qualication for, and performance in, the Champions League; UEFA distributions accounted for 29% of revenue in 2017/18. The club’s future Financial performance will Fluctuate significantly depending on participation in UEFA’s Flagship competition.

However, the impact of failing to qualify for this season’s Champions League may be mitigated somewhat by the club’s recent record shirt front sponsorship (Dafabet) and technical kit (New Balance) agreements.

In future years the club stands to benefit from a renewed sense of optimism in Scottish football, with a highly competitive domestic season including the resurgence of Old Firm rivals Rangers and the league securing a record broadcast rights agreement commencing in 2020/21
 
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TET

Well-known member
#4
The quote above is the reference you made on page 33 of the link

The qualification part to the CL is the hard part and fraught with higher and higher risk each year therefore i dont think the growth of 4percent you claim was highly achievable is as likely as your so optimistically allude.

Thats no taking into consideration the demise of the Tax cheating comtemptibles and the downgrading of league status of Scotland and Scottish football generally.
 

BILLCOWIE1958

Well-known member
#5
Celtic generated record revenue of £101.6m in 2017/18.

This is mainly driven by qualication for, and performance in, the Champions League; UEFA distributions accounted for 29% of revenue in 2017/18. The club’s future Financial performance will Fluctuate significantly depending on participation in UEFA’s Flagship competition.

However, the impact of failing to qualify for this season’s Champions League may be mitigated somewhat by the club’s recent record shirt front sponsorship (Dafabet) and technical kit (New Balance) agreements.

In future years the club stands to benefit from a renewed sense of optimism in Scottish football, with a highly competitive domestic season including the resurgence of Old Firm rivals Rangers and the league securing a record broadcast rights agreement commencing in 2020/21
THE OLD FIRM DIED ALONG WITH RANGERS
THERE WAS NO RESURGENCE THERE IS A TOTALLY NEW TEAM PLAYING OUT OF IBROKES

HH🍀
 
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M

Maria

Guest
#6
Report was published a little while ago, but I'm just now seeing it. Celtic makes an appearance on page 33 in the new "Eurovision" section which highlights 'big' clubs outside of the top 5 leagues that don't otherwise make it onto the main list.

https://www2.deloitte.com/content/d...te-uk-deloitte-football-money-league-2019.pdf

For those who aren't familiar with this annual report, Celtic was on the main top 20 list as recently as the 2008 (17th) report based on 2005-06 financial results. I believe they topped out at 16th place way back in 2006.

While the world has certainly changed, due in no small part to both Russian Oligarch's and Arab Sheiks buying up teams as their personal play things as well as the ridiculous amount of broadcast money that has flowed into the game, Celtic have basically stood still. Comparing Celtic's figures for matchday, broadcast, and commercial revenue streams vs our peers (or more accurately, those we're like to be our peers) for both 2019 and 2008 it becomes plain as day that the board and management of the club have utterly failed in bringing the club into the 21st century from a business standpoint. The club isn't run any differently than it was 10-15 (or even 20) years ago, and we've stagnated on every front with respect to business results. And yes, I realize the club just posted record financial results this past year, but that is small beans compared to where the club should, and can, be if it were managed appropriately. And to be fair, some of the reported decrease is due to exchange rate changes (thanks Brexit!), but that is quite frankly an excuse in my opinion as the cumulative turnover for the top 20 clubs has climbed from €3.7B in 2008 (the last time Celtic were represented) to now €8.3B representing an annual compounded growth rate across all revenue streams of 7.6% over that time period. Remarkably, Celtic's turnover has only grown by 0.23% over the same time period and 100% of the growth has actually come from broadcast revenue. Minimal progress has been made on the commercial front, and we've actually gone backwards slightly on matchday income. Had we grown the business by just 4% per year, which is very doable IMO, over the past 11 years, Celtic's revenue would have been €172M rather than the €115M we actually generated last year. That's €55M in recurring income that we don't have because the board and management team haven't been able to grow the business at even a measly 4%, rather they've grown it by less than 1/2 the rate of inflation and 100% of the growth they did achieve was due to the growth in UEFA payments for Champions League rather than the result of business planning or strategic decisions.

I may have to do a write-up, or several of them, and submit them to James to publish on his blog. But this is beyond ridiculous IMO the way our board and management have failed the club and its supporters. Spoiler alert: it isn't all about television money!

Aye n then ye’ll experience a real live fruitcake in tgm lol 🤣🤣
 

BenLynch29

Well-known member
#8
lot tae digest there Ben,Stella time methinks,£87 mill operating costs to me is unsustainable,the macro economics,ah need a wee bit merr time HH
There’s no limit to operating costs provided that there’s sufficient income to cover them. With turnover exceeding £100M, that’s not a problem. And remember, we’ve actually run a surplus for the past couple years. Finally, even if we were running at a deficit (like another club in Scotland who shall remain nameless to protect the guilty), the level of spending could be sustainable provided that income growth surpasses spending growth. At least in theory.
 

michael duffy

Well-known member
#9
There’s no limit to operating costs provided that there’s sufficient income to cover them. With turnover exceeding £100M, that’s not a problem. And remember, we’ve actually run a surplus for the past couple years. Finally, even if we were running at a deficit (like another club in Scotland who shall remain nameless to protect the guilty), the level of spending could be sustainable provided that income growth surpasses spending growth. At least in theory.
thanks Ben HH.
 

BenLynch29

Well-known member
#10
One more parting thought on this: nearly every other club in Europe reports income in multiple buckets. The most common ones are: matchday, commercial, and broadcast. Celtic’s commercial income has been so small it hasn’t warranted even putting it on its own line, and instead it gets combined with broadcasting revenue (mostly UEFA prize money).

Take a look at the path that Spurs have been on, because I do think that’s a good comparison for us. It wasn’t that long ago that they were outside the top 4 in England, and making the group stages of Europa was considered a successful season. That has obviously changed, but it isn’t all TV money that changed - remember all the other EPL teams have been beneficiaries. In the last 4 years their commercial income has grown by €66M, and their starting point 4 years ago isn’t that far off from where we are right now (with respect to commercial income). That’s compounded growth of 23% for 4 straight years, and it has little to do with either Champions League or TV money.

Taking Celtic from a £100M club to a £200M is not a pipe dream. It can happen, and it can be done in a relatively short time period if the right people are making the decisions.

But what’s not going to cut it is signing sponsors who have no business exposure outside of the U.K., no regional sponsors anywhere else in the world, going on summer tour to bumfück Austria year after year, and then not even wearing the kit with the sponsor’s name on it! If we’re ever going to make progress, we need to start generating significant commercial progress outside the U.K.

Celtic is one of the premier brands in global soccer. It’s time the board started managing it that way rather than aiming for being the best in Scotland.
 

TET

Well-known member
#12
One more parting thought on this: nearly every other club in Europe reports income in multiple buckets. The most common ones are: matchday, commercial, and broadcast. Celtic’s commercial income has been so small it hasn’t warranted even putting it on its own line, and instead it gets combined with broadcasting revenue (mostly UEFA prize money).

Take a look at the path that Spurs have been on, because I do think that’s a good comparison for us. It wasn’t that long ago that they were outside the top 4 in England, and making the group stages of Europa was considered a successful season. That has obviously changed, but it isn’t all TV money that changed - remember all the other EPL teams have been beneficiaries. In the last 4 years their commercial income has grown by €66M, and their starting point 4 years ago isn’t that far off from where we are right now (with respect to commercial income). That’s compounded growth of 23% for 4 straight years, and it has little to do with either Champions League or TV money.

Taking Celtic from a £100M club to a £200M is not a pipe dream. It can happen, and it can be done in a relatively short time period if the right people are making the decisions.

But what’s not going to cut it is signing sponsors who have no business exposure outside of the U.K., no regional sponsors anywhere else in the world, going on summer tour to bumfück Austria year after year, and then not even wearing the kit with the sponsor’s name on it! If we’re ever going to make progress, we need to start generating significant commercial progress outside the U.K.

Celtic is one of the premier brands in global soccer. It’s time the board started managing it that way rather than aiming for being the best in Scotland.
I Dont agree that Tottenham is a good comparison unless we were playing in EPL.

Prize money for EPL is massive compared with SPL
TV money is massive compared with SPL

You pick last 4 years but its last 4 years the the rules for Champions league and seedings have changed to suit the massive sponsored leagues. The risks are much less for EPL teams than SPL teams when expanding operational costs.

The risks for celtic have been compounded in last 4 years due to the extra matches against other decent champions league candidates in CL qualification.

General income is around 50/60 million not including the CL

SO Celtic would need to treble their normal income levels without massive tv deals or likelihood of getting CL quarter final talent without paying more op costs to get them in. And even then most CL quality players at Q final stages would not be interested in Scottish weather or league for many seasons. That is unless we had Scotish players good enough to compete at that level. Best English players of good enough quality wont be interested and if English players arent interested then the high quality players from rest of world wouldnt be interested unless they are getting mega megabucks to come.

And then your talking about the Murray moonbeam model.

In that time since he lived in cloud cuckoo land the wages across other big european nations has exponentially rocketed especially for players in the top 100 mould and its players in that mould you would need to regularly get into quarter finals of big tourneys.

The reason Scottish football aint as good as it once was is more to do with the passion for playing football of our youth. chances of retaining our best young players when the standard of the league is not that great and the whole league system is very limited.

Its already quite a boring league to non Celtic fans already, having a team is even stronger would be fun for celtic fans but commercially rancid for commercial investment.

Only Scottish people or ex pats generally would be interested in Scottish football as commercial, so the Tottenham comparison is not ideal.

Celtic and tottenham may have been relatively close comparison 10 plus years back. But tv revenues mostly but also prize money from leagues structures has improved.

Most top 100 players are looking for glamorous life styles that european big citys can provide and they certainly don't want to spend their time exclusively in one of the wettest dullest crime infested fish bowls in footballing world.

The one thing our board are good at is making money and getting the risks quantified.

And the eufa model doesnt not include the Scotish backwater every season. Quite happy to give us a lottery ticket for CL with all the other non exciting leagues but 4th place in England will always be more appealing to Eufa than 1st place in non exotic leagues.

The board are shit at everything else other than making money.

The reason we have surplus cash available for investment is mainly down to player sales in last 4 years. We have mostly been running at break even op costs when we don't qualify for champions league.

I very much doubt celtic can treble their Non champions league money income therefore 200 million income in my opinion is pipe dream unless We get into a more attractive league system.

And which league system is gonna vote to have a Scottish team join their national system with the potential income overdrive celtic could generate being in better quality league with much better teams and thus much more attraction for the best players to come and win things at higher level than Scotland can provide.
 
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