Finance Guru: Celtic are braced for more financial misery in big Rangers boost
Celtic released half-yearly reports that were better than anticipated but their early exit from the Europa League means the next set of figures will be worse.
That is according to finance expert and new Football Insider columnist Kieran Maguire, speaking exclusively after Celtic posted a pre-tax loss of £5.9million for the six months up to December 2020.
In an accompanying statement, Celtic Chairman Ian Bankier warned that trading seasonality means that the next set of half-yearly reports would be harder hit.
— Celtic Football Club (@CelticFC) February 15, 2021
In the corresponding period in 2019, Celtic made a profit of £24.4m, with the £25m departure of Kieran Tierney taken into account.
And Maguire claims that the situation is bleaker than on first inspection because the next set of accounts will not show the rewards of European football.
By contrast, Rangers can expect to do well in the second half of the season as they are in the lucrative knockout stages of the Europa League.
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He told Football Insider correspondent Adam Williams: “I think the figures are as good as can be expected for Celtic. The loss of £5.9m is better than expectations.
“My big reservation is that if you take a look at Celtic’s six-month figures in previous years, they would normally be generating 75% of their revenue in the first six months of the financial year. The reason for that is because they are normally in Europe.
“If they’ve lost £5.9m in a year which includes their European participation, I’d expect those losses to be higher in the second half of the year.”
Celtic were knocked out of this season’s Europa League at the group stage, winning just one of six matches against AC Milan, Lille and Sparta Prague.
The Hoops were awarded £3.7m in performance-related payouts for this season’s European exploits, as revealed by Football Insider in December, and that windfall is taken into account in the most recent figures.