Celtic Chairman Positive after Recent Financial Figures
August 16, 2011
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Celtic chairman John Reid can see the positive side after the club reduced its debt and recorded a small profit for the year ending June 2011 in the face of a poor economic climate.
The Scottish Premier League club announced its preliminary results for the year with net bank debt falling £5.32 million to £530, treat 000, while a £102,000 operating profit was reached compared to the previous year’s £2.13 million loss. Celtic’s figures were aided by the record £9.5 million sale of Aiden McGeady to Spartak Moscow, but the club was faced with the damage of an early exit from European football on top of the financial mess that is currently affecting the Scottish game.
As a result turnover fell 14.8% to £52.56 million, while revenue dropped £9.16 million to £52.56 million. Reid said: “Turnover decreased…affected by the reduction in European matches and the ticket and broadcasting revenues that they generate, and a decline in merchandising sales in a difficult retail market,” Reid said in his annual statement. “Against this background, the achievements of everyone at the club – management, staff and our faithful supporters – appear even more outstanding.
“To achieve and maintain financial stability, and attain a very manageable debt position, while continuing to invest significantly in strengthening the football squad and generate profit in the football sector in Scotland in these conditions is highly commendable. And yet, as our annual report shows, as a result of these efforts and our activity in the transfer market, we managed to turn last year’s loss into break-even, to reduce our debt considerably and still invest a substantial amount in new players.”