February 13 – Celtic may have lost on the pitch in their Champions League first leg last 16 tie with Juventus last night, but off the pitch they are without doubt Champions League winners.
The club’s interim financial report shows revenue boosted by a massive 71%, enabling the club to wipe out almost £7 million of debt that was showing from 2011.
The report shows a pre-tax profit of £14.9 million, up from £180,000, in the six months to December 31. Net bank debt was reduced to £130,000 from £7.05 million in 2011.
Operating expenses were significantly increased by 30.2% to £36.96m, up from £28.39m in 2011.
In a season that has seen the club lose the Old Firm derby fixtures with a Rangers, following their demotion to Division 3 of the Scottish Football League, and a runaway lead at the top of the SPL that already pretty much guarantees them the title, Celtic fans would be perhaps be forgiven for losing some interest and the club some revenue.
But Celtic’s progression to the last 16 of the UEFA Champions League and a new shirt sponsorship deal with Magners helped boost profits with dynamic effect.
Celtic chairman Ian Bankier said: “Celtic surpassed the expectations of many by progressing into the [UEFA Champions League] knock-out stages from a very tough group. Furthermore, the club’s international reputation and standing received a substantial boost. This success had a major bearing on our financial performance in the period under review.
“The revenues generated by the team’s success in Europe this year have significantly impacted our half year results, with turnover increasing to £50.06m, a 71% improvement over the previous year.
“Celtic’s achievements, both domestically and in Europe, have had a similarly positive effect on merchandise and ticketing income, notwithstanding the current difficult economic climate.
“The results on the park and additional matches produced an increase in operating expenses to £36.96m and our profit from trading, before asset transactions and exceptional operating expenses, was £14.94m — a significant uplift on last year’s figure of £0.18m for the same period.”
Celtic’s trip to the last 16 of the Champions League came via qualification from a tough group that included the world’s best team with the world’s best player; Barcelona with Messi, Benfica and Spartak Moscow. The group match-ups were feasts of big club football between four of Europe’s giant clubs and household names.
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