Scottish football club Celtic have paid the price for a poor season in Europe last year with debts rising by almost a quarter to £19.5 million (€28.79 million).
Full-year figures show the amount owed at Celtic Park has risen by £3.7 million to £19.5 million after turnover dropped by 9.9 per cent, leaving the club with a loss of £7.73 million for the year to the end of June.
The Glasgow giants confirmed group turnover decreased by 9.9 per cent to £62.17 million.
Celtic, which won the Tennent's Scottish Cup last season under Martin O'Neill, confirmed the year-end debt was up from £15.8 million to £19.5million from the previous year, while loss after taxation was also up from £7.47 million in 2004 to £7.73 million.
Irish financier Dermot Desmond is the largest shareholder at the club, owning close to 30 per cent of the stock. A significant number of Irish-based fans are also shareholders.
But the team finished bottom of their Champions League group last season, leaving them without an additional round of UEFA Cup football. The previous year Celtic reached the UEFA Cup quarter-finals.
Celtic chairman Brian Quinn blamed the lack of European football in the second half of last season for the results.
He said: "The main story is that the first half of the results was especially good and the second half was not nearly as good. That primarily was because of European football and that is huge to us as it effects the performance of our finances."
Celtic has announced a lucrative five-year sponsorship deal with Nike and played down the increase in debt.
Mr Quinn added: "We can move forward with these results.
"You cannot say whether these results are a flavour of things to come because one thing you learn in football is that it is very volatile and fickle.
"We do not take risks about how well we are going to do in Europe." Celtic slashed their wage structure by clearing out 13 players while bringing in seven new faces this summer.
However, it subsequently failed even to make the group stages and saw its involvement in European football this season end after just one tie.
Chief executive Peter Lawwell said: "Results have been dominated by what we did in Europe and we have cleared some debt by 13 players going out.
"But, out of those players, who contributed actively? A lot of those players never contributed over the course of the season and, hopefully, the seven new players will push for first-team places.
"Hopefully, we will enhance the quality of the squad."
However, Mr Quinn admitted the debt of £19.5 million was becoming a concern for a club renowned for its fiscal responsibility.
He added: "We are getting closer to the figure of £20 million and that would be as far as I'd like to see it go. But it is far too early to make judgments about going over that mark.
"There has been a huge change in the composition of the cost of the playing staff. I wouldn't like to describe it as disappointing. It is a fact of life. As a plc, it would be nice to get further in Europe and that affects revenue."
Celtic have been forced to go down the road of performance-related pay rather than paying big wages for players.
Mr Lawwell said: "If you look at what we were paying in wages, we are behind the top five clubs in Britain - Arsenal, Manchester United, Chelsea, Liverpool and Newcastle."
Talks are ongoing to bring China international Du Wei to the club but Mr Quinn insists any further cash for players when the transfer window re-opens in January will be subject to conditions at Celtic Park.
He said: "That would depend on the circumstances at the time. You will have to wait until January to see."
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)