As the potential transfer of Jota from Celtic to Al-Ittihad gains momentum [Fabrizio Romano], Celtic could be gearing up for another significant announcement to the London stock exchange.
Given the magnitude of the deal under discussion, Celtic will likely make an official statement to its shareholders on the London Stock Exchange once the transfer is finalised.
As a publicly traded company on the London Stock Exchange, Celtic is bound by certain regulations and requirements. One of these requirements is the obligation to promptly disclose any ‘material’ or ‘price sensitive’ information to the market. Material news is any information that could potentially influence an investor’s decision to buy or sell shares in the company.
If the deal proceeds as anticipated, the resulting transfer fee would represent a substantial influx of funds for Celtic. This would certainly qualify as ‘material’ information, as it could influence investors’ perceptions of the club’s financial health and future prospects. Consequently, Celtic would be obligated to formally announce this information to its shareholders via the London Stock Exchange, as it did when Kieran Tierney’s record-breaking transfer to Arsenal took place.
In essence, this obligation is a measure designed to ensure transparency and fairness in the market. By promptly disclosing material information, Celtic ensures that all investors have equal access to the information they need to make informed decisions about their investments. There was an announcement to the market when Ange Postecoglou left for Spurs, just as there was one when Brendan Rodgers returned.
The strategic financial management of the club continues to be positive. While supporters may not enjoy seeing some of their top stars leave for pastures new, the health of the business is important.
