CELTIC chairman Dr John Reid last night hailed another successful financial year for the club, and said the latest set of results, including a pre-tax profit of £4.5 million, were the envy of almost every other team in Britain.
Dr Reid also praised manager Gordon Strachan for bringing more on-field success to the club, despite the difficulties posed by, amongst other things, inflated transfer prices caused by cash-rich clubs in the English Premier League. Celtic won a third
successive league title under Strachan last season, something not achieved since the days of the legendary Jock Stein.
"He (Strachan] has now made his own history at Celtic football club," said Dr Reid.
The Parkhead club made a profit before taxation of just under £4.5 million in the year up to 30 June and have managed to further reduce bank debt to £3.52 million. The profit has fallen from last year's exceptional figure of £15 million. Dr Reid explained this was due to re-investment, including increased wages and the purchase of new players. He also pointed out that the board's promise to use profit for the benefit of the team and its fans has been borne out. A percentage of the money made has been returned to the fans in the form of season-ticket price freezing and concessionary tickets. Profit has also been ploughed back into the team, with Cardiff City defender Glenn Loovens the most recent addition to the playing staff.
"Among the key reasons behind the reduction in profit is the fact we have sold fewer players and continued to buy in," Dr Reid told the Scotsman. "Last year we had to share the Champions League money, whereas the year before we didn't. Another reason is increased operating costs, not least because we have invested in the Lennoxtown Training Centre. These are good reasons. This year we will maintain our development, and we are also the only club representing Scotland in the Champions League. That's a big responsibility, (but] we accept that willingly. We are representing not only the Celtic fan base but also the wider country."
Dr Reid was quick to give credit to his fellow members of the board, including chief executive Peter Lawwell, and also the club's major shareholder, Dermot Desmond. He also noted the "advice and support" offered by predecessor Brian Quinn.
"In the current football player market it is increasingly clear that our ability to compete on transfer fees and wages with clubs from the five main footballing nations, and particularly in England, is limited," said Dr Reid. Despite this, Celtic have devised a business model which is starting to deliver profits each year.
"Almost every other club in the United Kingdom would bite your hand off for these results," continued Dr Reid. "At £72.95m our turnover came close to but did not match last year's exceptional figure of £75.24m. The decrease of 3 per cent was almost entirely due to a reduction in merchandising sales in a year when there was only one strip launch, as opposed to two the year before."
Dr Reid singled out Strachan, and praised his leadership qualities.
"I said last year he could enter our history books by winning a third successive title," he commented. "By April a lot of people were mocking me. But I am glad to say Gordon justified what I had said, and that's when you see the true mettle of a leader – during a period of great difficulty. He carried us through, and was absolutely resolute."
The full article contains 607 words and appears in The Scotsman newspaper.
