Celtic enjoys success on and off the pitch

Celtic Football Club has almost halved its debt in the year ended June 30th and increased profits from operations by more than 600 per cent following continued league success in Scotland and significant contributions from its participation in the UEFA Champions' League.

The club, of which financier Mr Dermot Desmond owns 20.5 per cent, said although its players' labour costs accounted for 49 per cent of total turnover, well below the industry average, it is conscious of the need to control those costs. Chairman Mr Brian Quinn said current contracts had locked players' salaries into an upward trend and until a "process of adjustment" takes place the share prices of publicly-listed soccer clubs will remain depressed.

Celtic's profit from operations increased by more than 600 per cent in the period, up to £5.37 million sterling (€8.33 million) from £870,000 million in the previous period. Turnover increased by 35.4 per cent to £56.98 million from £42.01 million following increases in all major revenue streams. The loss on ordinary activities before tax was £2.97 million, down from £11.19 million previously. The loss per ordinary share was £14.26 from £29.82 in the previous year.

Operating expenses jumped by 25.2 per cent to £51.52 million The club said this was predominantly due to increased labour costs including the agreement of contract extensions to key players.

Celtic's debt at the end of the period under review was £16.47 million, down by 44 per cent from £29.62 million.

Chief executive Mr Ian McLeod said the club was grateful to supporters who renewed season tickets in line with the previous year despite a 20 per cent increase in the cost of those tickets. He added the club's participation in the Champions' League first round had lead to an opportunity for increased ticket sales at its home ground of Celtic Park. These increased sales, along with the higher prices paid for tickets, resulted in football revenue jumping by just under 28 per cent to £27.72 million. Participation in the Champions' League was also central in driving multimedia income which was up by nearly 64 per cent to £16.22 million as the club benefited from television rights associated with the European competition.

The club's total number of stores increased by two to nine and revenues from merchandising grew by 30 per cent to £10 million, driven in the main by sales of replica strips.

During the year both Celtic and arch rivals Rangers explored the possibility of joining the English Premiership in an effort to bolster their share of television royalties. While those talks were unsuccessful, Mr Quinn indicated the matter was far from closed.

Mr Quinn also said "particular attention must be made of \ Martin O'Neill's exceptional contribution to our football success. We will make every effort to renew his contract".

Mr O'Neill was approached this year to manage Leeds United following the sacking of fellow Irishman Mr David O'Leary.

Mr Desmond is just one of a number of key figures anxious to keep Mr O'Neill at the club in the longer term despite Mr O'Neill's insistence this summer that his role at Celtic "will not last forever". Mr O'Neill's contract has just one more year to run.