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Celtic’s Financial Dominance in Scottish Football
In recent years, Celtic has solidified its position as a financial powerhouse within Scottish football, driven by strategic player trading and increased involvement in the Champions League.
The club operates with remarkable efficiency, consistently delivering trophies to its supporters while simultaneously generating significant profits for its investors. Over the past 14 seasons, Celtic has reported losses in only two instances, one of which occurred during the global pandemic.
In contrast, Rangers, another major Scottish club, last recorded a post-tax profit in the 2012-13 season. Recent financial disclosures from Celtic reveal a turnover of £124.5 million, surpassing their closest competitor by more than £40 million and leading third-place Hibernian by an impressive £108 million.
Throughout their era of dominance, Celtic has achieved a combined profit of £112 million, while Rangers have suffered a cumulative loss of £132 million.
Football finance expert Kieran McGuire from Price of Football expressed that many clubs might look upon Celtic’s financial figures and operational model with envy. “If you look at the landscape in England for the 2023-24 season, 19 out of 20 clubs recorded financial losses,” noted McGuire.
He highlighted that the only club to achieve a profit was West Ham, which benefits from a stadium subsidized by local taxpayers. “West Ham’s wage expenditure is relatively modest compared to southern England, yet it remains significantly higher than clubs like St Mirren, Ross County, and St Johnstone, often reaching up to ten times their wage budgets and about four times that of Hibs, Hearts, and Aberdeen,” he added.
Despite the financial success, there has been a persistent cry from Celtic fans for greater reinvestment of profits into the team. McGuire acknowledged these sentiments, suggesting that while Celtic has been prudent with its finances, there could have been opportunities for bolder investments. “Given the club’s historical financial struggles, the current management has opted for a more cautious approach,” he concluded.
Source
www.bbc.com