Effects of pandemic lead to drop in profit and revenue at Celtic

Celtic saw revenue fall by 16% last season as the pandemic had an immediate impact on their finances.

The club made a pretax profit of £100,000, down from £11.3 million the previous season, after income fell to £70m.

Operating expenses were also down 7% to £80.5m while the club made a £3.5m profit on transfers thanks to Kieran Tierney’s move to Arsenal.

Celtic still had £18m cash, net of bank borrowings, at June 30, and they have increased their credit facility to £13m but reported that finances were secure in the short to medium term.

However, chairman Ian Bankier admitted they were “still grappling with the challenges the pandemic presents including the near-term uncertainty”.

He said: “The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry.

“Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution.

“Nevertheless, we remain confident in the fundamentals of our football model and since the balance sheet date we have strengthened our player squad.”

Meanwhile, Sir Kenny Dalglish has issued a strong defence of under pressure Neil Lennon.

Celtic fell six points behind Rangers in the Premiership on Sunday after a third consecutive game without victory.

But Dalglish, a former Celtic player and interim manager, said: “People want to put on social media that they are disappointed. OK, but wait to the end of the season and see if they are still disappointed in Lenny.

“I think it’s a wee bit unfair when you consider what he’s done in his four- year spell beforehand and a 77% success rate since he’s come back, trophies, a chance to get to another final, Europa League section winners last year. I don’t think he’s done too badly.”