Kieran Maguire issues '£19m' Celtic reveal after Desmond investment news
Celtic have cash reserves of £19million but could rely on Dermot Desmond to bail them out if they were in financial danger.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Irish billionaire’s relationship with the Hoops.
Desmond has just invested £37.1m in Mountain Province Diamonds, one of 33 companies under his control, per the Irish Times on Monday (3 January).
But Celtic are a broadly financially autonomous entity and do not rely on the 71-year-old’s extraordinary external wealth to fund their operations.
Maguire analysed Celtic’s balance sheet and explained why this is the case.
“He’s always wanted Celtic to stand on its own two feet,” he told Football Insider‘s Adam Williams.
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“He hasn’t pumped money in through share issues or things like that. That’s indicative that, financially, Celtic have been a standalone organisation.
“If they were in a position where they had to borrow, I’m sure they could go to Dermot Desmond.
“But while they have got borrowings of £8m, they have cash reserves of £19m.
“So they have got a net positive financial situation according to the latest set of accounts.”
Celtic posted an £11.5m loss in their last set of accounts but have made annual profits most years since Desmond took control in the mid-90s.
The financier recently gave his blessing for Michael Nicholson to take over as permanent chief executive following Dominic Mckay’s short-lived reign.