Kieran Maguire: Celtic at risk of 'reputational damage' and multi-million hit after 'nasty' news
Celtic could suffer major “reputational” and financial damage if a lawsuit brought against them is successful.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about worrying developments at Parkhead.
The BBC reported on 6 October that 25 victims of historic abuse at Celtic Boys club are planning to launch a lawsuit against the Hoops.
Multiple allegations of abuse have surfaced since 1996 and it is claimed that the case could cost Celtic millions.
Celtic have always maintained that the Boys Club was a separate entity to the football club and that they are appalled by historic abuse.
As per their latest set of accounts, the Hoops earned £17.3m from commercial activities over the last financial year.
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Maguire claims that Celtic could stomach the potential financial ramifications but the reputational impact would be harder to swallow.
“They wouldn’t have budgeted for this,” he told Football Insider correspondent Adam Williams.
“But with that being said, they could have some sort of insurance that covers that claim.
“Their concern on a broader sphere would be reputational damage if a settlement is made or it goes to court.
“That can make it more difficult to sign deals with sponsors, of course. That’s an important income stream for clubs in Celtic’s position.
“This is a nasty case. If the worst happens here, it makes it less likely that commercial partners will want to be associated with the club.”