Maguire: Celtic thrown £11.5m lifeline amid crushing Europe-high reveal
Celtic lean heavily on matchday income and that is reflected in their recent set of accounts — but Jeremie Frimpong’s £11.5 million departure will offset some of the damage.
That is according to finance guru and new Football Insider columnist Kieran Maguire, speaking exclusively after Celtic posted half-yearly losses of £5.9million for the six months leading up to December 2020.
In a statement released alongside the figures, chairman Ian Bankier said he expects the next six months to be worse owing to trading seasonality.
Frimpong signed for Bayer Leverkusen in January and his departure will be factored into Celtic’s next set of reports in June.
Maguire explains how Celtic have been hit hard because they rely on matchday revenue more than most and how Frimpong’s fee will be a much-needed boost.
He told Football Insider correspondent Adam Williams: “Celtic have a fanbase that will turn up as soon as they are able to do so, which is great. The downside is that the club is more dependent on matchday income than the vast majority of clubs in Europe.
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“Scottish Premiership clubs generate a greater proportion of matchday income than any other of UEFA’s 55 members.
“That’s great because it shows the fanbase is so committed. But it also means that when fans can’t attend, the club itself becomes more vulnerable to a downturn.
“The one thing they have which will counterbalance those losses is the sale of Frimpong.
“We only have a rough idea of the fee and we don’t how much the sell-on clause might be but at least it will help to counterbalance the losses.”
The Hoops are also set to suffer financially after failing to advance past the Europa League group stage for the first time in the last four seasons.
The club pocketed £3.7m in performance-related payouts, as revealed by Football Insider in December, but will miss out on lucrative knockout round prize money.