Lack of European football puts dent in Celtic's revenue
CELTIC football club returned to profit last year, but revenues tumbled as the club counted the cost of missing out on European competition. Financier Dermot Desmond is estimated to own a reported 37pc of the club.
For the year ended June 30 this year, the club made a profit before tax of £102,000 (€115,600).
That compared favourably to a £2.1m loss a year earlier but revenue fell nearly 15pc to £52.5m.
Club chairman Dr John Reid blamed the slump on the lack of earnings from European football. Celtic were knocked out of the Europa league qualifiers last year, leading to only two continental matches being played at Celtic Park compared to the five played there during the 2009/2010 season.
"Football was not any more immune from the recession than any other activity. Challenging economic conditions and the poor football performance in season 2009/10 undoubtedly had a detrimental effect on our revenues," said Dr Reid.
"(Turnover was) 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," he added.
The club also wrote down the carrying value of a number of its squad members, leading to exceptional operating costs increasing £850,000 to £3.99m.
In contrast, expenses from football and stadium operations fell by £4.8m to £40.8m.
Celtic's Kelvin Wilson in action against Dundee Utd at Celtic Park, Glasgow, on Saturday. While Celtic made a profit this year, the club's revenues dropped nearly 15pc. Chris Clark/PA Wire