Celtic’s Chief Financial Officer, Chris McKay, has offered insights into the club’s financial situation, particularly in relation to the substantial £72.3 million cash balance reported in their year-end accounts for the period ending June 30, 2023.
This figure, resulting from a combination of strong ticket sales, UEFA Champions League participation, significant merchandise income, and profitable player trading had raised questions among supporters and pundits regarding the club’s transfer activities.
At the AGM it was confirmed that Jota’s transfer fee was included in this because the deal was agreed late on June 30.
McKay emphasised the importance of not focusing on a single financial snapshot but rather considering the club’s finances over a medium-term horizon. He highlighted several key expenditures and commitments that have impacted the cash balance:
- Tax Payments: Shortly after the fiscal year-end, Celtic paid £11.5 million in taxes for that financial year, which notably reduced the cash balance.
- Barrowfield Redevelopment: A significant sum has been ring-fenced for the redevelopment of Barrowfield, indicating investment in infrastructure.
- Stadium Investments: Plans are in place for further investment in the stadium over the coming year.
- Financial Buffer: Celtic maintains a financial buffer or ‘Plan B’ to account for years when the club might not participate in the Champions League but rather in the Europa League.
He said: “I think when you’re looking at football finances, in particular, it’s important not to pick a point in time. You need to look at it over a medium-term horizon.
“Just to give you a couple of examples – just after the year-end we paid £11.5m in taxes in relation to that financial year which clearly reduces the balance significantly.
“We’ve got a significant sum ring-fenced for the re-development of Barrowfield. We’ve also got plans for the stadium for the year ahead which we wish to invest in. So all of these things feed into how that cash is planned for the year ahead.
“Over and above that, Celtic have always had a plan B and you need a buffer, particularly for the years you are not in the Champions League and you’re in the Europa League.”
