RNS Number:0735X
Celtic PLC
18 January 2006
CELTIC PLC
Shareholdings of directors and significant shareholders
Celtic plc ("the Company") confirms that it has been advised of the following:
(i) interests of directors and connected persons; and (ii) significant
shareholdings, in the Ordinary share capital of the Company, after the allotment
of new Ordinary Shares of 1p each on 21 December 2005 under the Company's recent
Open Offer and Offer for Subscription.
(i) Interests of directors and connected persons:
Tom E Allison: 310,000 Ordinary Shares of 1p allotted, at an issue price of 30p
each. Mr Allison's interest in Ordinary Shares therefore increases to 330,000
shares (0.41%), held in his own name.
Dermot F Desmond: 26,498,303 Ordinary Shares of 1p allotted at an issue price of
30p each. Mr Desmond's interest in Ordinary Shares increases to 32,772,073
shares (40.45%), held in the name of Line Nominees Limited. Taken with his
holding of Convertible Preferred Ordinary Shares of 100p each, Mr Desmond's
interest in the issued voting capital of the Company is 41.1 %.
Eric Hagman, CBE: 2,500 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr Hagman's interest in Ordinary Shares increases to 7,500 shares
(0.007%), held in the name of R C Greig Nominees Limited
Peter T Lawwell: 336,000 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr Lawwell's interest in Ordinary Shares increases to 356,000 shares
(0.44%), held in his own name and that of R C Greig Nominees Limited.
Brian J McBride: 712 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr McBride's interest in Ordinary Shares increases to 2,187 shares
(0.002%), held in the name of Barclayshare Nominees Limited.
Brian Quinn, CBE: 68,630 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr Quinn's interest in Ordinary Shares increases to 76,117 shares
(0.077%), held in his own name and in the name of Brewin Nominees Limited.
Eric J Riley: 66,462 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr Riley's holding of Ordinary Shares increases to 71,462 shares (0.073%),
held in his own name.
Brian D H Wilson: 2,000 Ordinary Shares of 1p allotted at an issue price of 30p
each. Mr Wilson's holding of Ordinary Shares therefore increases to 3,000 shares
(0.003 %), held in his own name.
(ii) Significant shareholdings (excluding those of directors and connected
persons)
5,000,000 Ordinary Shares of 1p were allotted to Christopher D Trainer at an
issue price of 30p each. Mr Trainer is interested in 5,933,748 Ordinary Shares
(7.32%), held in his own name.
2,666,667 Ordinary Shares of 1p were allotted to John Stephen Keane at an issue
price of 30p each. Mr Keane is interested in 4,474,747 Ordinary Shares (5.52%),
held in his own name and in the name of J Keane Nominees.
3,000,000 Ordinary Shares of 1p were allotted to Michael Declan Culhane at an
issue price of 30p each. Mr Culhane is interested in 3,000,000 Ordinary Shares
(3.70%), held in his own name and in the name of Michael Culhane PPT.
End
This information is provided by RNS
The company news service from the London Stock Exchange
END
Might be old news but still, interesting; the thoughts of Gordon St.Rachan prior to..............Ed. It's been almost a year since I left Southampton and I've been having the time of my life. I've enjoyed being me and doing things I'd never done such as snorkelling, strawberry-picking and going to the Edinburgh festival. But I've also been studying football and hopefully I'll come back a better manager for that. I think as a manager you learn all the time because I look back on my first couple of weeks at Coventry and think I knew 30% of what I do now. But this has given me a real chance to take a step back and examine training, tactics, people and so on, as well as have more time with my family.
My thirst for knowledge has taken me all over the world. During six weeks in Australia I spent time with Australian rules football and rugby league teams and studied their fitness regimes. I've watched football in Scotland, England and across Europe. I've been to see training at Bayern Munich and Sheffield United, and next week I'm going to Crystal Palace to see Iain Dowie and how he works with John Harbin, his physical fitness man.
I'm fascinated by fitness and preparation and I've learned over these 11 months not to be afraid to get players to do more work and that I should be prepared to do more with them. The more games you play the more rest you need, so there's a balance. But I would say a Premiership team not competing in Europe can spend longer on the training field and I feel the players can work harder than they think they can.
The four or five days I spent with the North Melbourne Kangaroos, an Australian Rules team, were an eye-opener. I watched them prepare for a game in Canberra, saw the game and then watched their recovery in Melbourne. It's an incredible sport and the players are very fit because they run about 20km a game.
I learned that hours aren't a problem to Australian sportsmen. They have total respect for their coaches, especially the fitness coaches. They understand there are no short cuts to fitness, whereas footballers feel there are and will look for excuses not to do things.
The day after the Kangaroos game the players were swimming and doing weights and it was interesting to speak to their doctors and physios. When a player gets a calf strain here we think they'll be out for at least three weeks but it's two weeks there. Prevention and recovery are better.
I can't say I'd have a team swimming every Sunday because you need that facility - you can't just pop to the swimming baths. But it would be nice. At Southampton I took the players into the sea sometimes, including for Wayne Bridge's last session because he hated that.
Another lesson I've taken is tactical. I see myself giving one or two players in a team more licence than I used to, letting them break from the formation to hopefully win games. It's easy to say that when I'm sitting at home, happy with life and under no pressure, but I'd like to think I'll stick to it.
In the past I've been more set in my ways. You really knew where my players would be. When you've got a good team, not a great one, you need to keep to a shape so when the game breaks down you know where you are, but in the future I'll try to let the special players wander more.
You need a good formation to stop you losing and then good players to win. I watched Real Madrid twice last season and felt they couldn't win anything even with their talent because there was no formation going forward and getting back.
On this break I wanted to see if football was different from what I thought and I've had confirmation there is no mathematical equation for being a manager and that training-wise I was doing the right thing.
There's no set way of training and I won't change how I am or how I treat players- you've got to be yourself. I saw Felix Magath at Bayern stand in a corner and say next to nothing and then watched his team beat Ajax 4-0, but that's not me.
Tactically it's been useful to look at formations. There are things you can keep in mind for later. Seeing 10 games in 11 days at Euro 2004 was an education but I also learned from England v Scotland Under-18s at Hartlepool. Scotland couldn't play in the first half and then changed their midfield set-up and I thought: "I like that. I'll stick that in the locker."
People might wonder why I want to be a manager again if I'm enjoying myself so much but I think that's what I'm meant to be and it's what I like doing. I've not been banging on anyone's door for a job but I'm not far away from being ready to go back. And, when I return, hopefully I'll be better for this time out.
Gordon Strachan Friday January 14, 2005 The Guardian
The official press release:
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CELTIC plc
Preliminary Results for the year ended 30 June 2005
SUMMARY OF THE RESULTS
Operational Highlights
· Winners of the Tennents’ Scottish Cup. · Participation in the UEFA Champions’ League Group Stage. · Contract extensions awarded to John Hartson, Neil Lennon, Bobo Balde and Craig Beattie. · Appointment of Gordon Strachan as Football Manager. · NIKE appointed as new kit manufacturer on lucrative 5 year deal until 2010. · Enhanced shirt sponsorship contract agreed with Carling until 2010.
Financial Highlights · Group turnover decreased by 9.9% to £62.17m. · Operating expenses reduced by 9.5% to £58.07m. · Profit from operations of £4.10m (2004: £4.87m) · Exceptional operating expenses of £2.96m (2004: £0.39m). · Loss after taxation of £7.73m (2004: £7.47m). · Year-end debt of £19.5m (2004: £15.8m).
CHAIRMAN’S STATEMENT Taking the year 2004/2005 as a whole, the factors contributing to Celtic’s strong financial performance in the first half of the year were largely reversed in the second half, as I forewarned in commenting on the half-year results. Exit from Europe, combined with fewer home games in domestic competition, brought a sharp reduction in revenues in the second half, so that for the year as a whole profit from operations, at around £4 million, and loss after taxation of £7.7 million, were similar to last year.
Celtic’s performance on the football field was mixed. The team again participated in the UEFA Champions’ League group stage, recording good results against AC Milan and Barcelona; and retained the Tennents’ Scottish Cup with a record 40th success. However, the Bank of Scotland Premierleague title was surrendered in the final minutes of the last day of the season, a very disappointing ending to a long and taxing League Championship.
On the face of it, last year marked a pause in the remarkable run of success enjoyed by Celtic in recent years. Turnover was down for the first time in ten years, with sales of merchandise in particular falling fairly sharply following several years of uninterrupted growth. Net debt rose to £19.5 million. It is, however, important to look behind and beyond a single year’s figures.
Football and multimedia revenues, comprising 77% of total income last year, are especially sensitive to progress in European competition, and our failure to go beyond the end of the year in either the UEFA Champions’ League or the UEFA Cup had a significant effect on revenues. Likewise, merchandise sales suffered from exceptional and extraneous factors, notably the general malaise in retail sales and the switch to a new partner in this area, which had a negative short-term effect.
Over a longer period the picture looks quite different. In the last five years, revenues have grown from £42 million to £62 million and profit from operations has been consistently positive. Backed by strong performances in domestic competitions and a high profile in Europe, the Celtic brand has clearly strengthened and expanded. Perhaps most important, but little appreciated, the Company has come through the first real recession in the football sector, achieving football success while avoiding the financial difficulties that have afflicted so many clubs both in the UK and in Europe more generally.
We believe we have learned important lessons from this experience, lessons that will inform our actions looking ahead. For example, careful management of costs, particularly football players’ contracts, is essential, if unpopular at times. Thinking about the length and composition of these contracts has changed over this five year period and we believe we are now applying best practice in this area, while recognising that bringing about visible benefits takes a little time. We have also made progress in achieving a greater degree of insulation for revenues from the effect of set-backs in football results. Contracts with minimum guaranteed amounts e.g. in respect of merchandise (NIKE) and shirt sponsorship (Carling), now provide underpinning for football ticket sales. Peter Lawwell and his management team deserve great credit for adopting and executing this strategic step. Season tickets have held up well over the 5-year period at between 53,000 and 54,000, and attendance at home games at Celtic Park have also been sustained at between 57,000 and 59,000, a quite remarkable demonstration of the support that Celtic enjoys. Taking all of these factors together, we believe we are building a strong, successful business at Celtic Park.
Of course, the business must be based on the success of our football team. Under the management of Martin O’Neill Celtic enjoyed dominance in Scotland and re-emerged as a European force. The squad that delivered this success needs significant refreshing and we have begun the challenging job of rebuilding, a task that cannot be rushed and which has to be accomplished, if possible, without an appreciable drop in standards. Gordon Strachan, the successor to Martin, is fully on board as we go through the transition. This summer we have already arranged the departure of ten players and we have recruited seven. I believe supporters acknowledge that changes on this scale are not always negotiated smoothly and are ready to give Gordon the time needed to bring about the reconstruction of the squad.
Our younger players will help in this task. The reserve and under 19 teams won their respective championships and Celtic, like many other SPL clubs, expects home-grown players to play a prominent part in future Celtic teams. We will expand our scouting arrangements, looking beyond the UK, and we have now announced our preferred choice of location for a new and modern training facility. No company, whatever field of activity they may be in, can neglect to invest in the business; failure to do so results inevitably in longer-term problems. This strengthening of our football infrastructure and the need to maintain a sound financial base have clear implications for our resources going forward and we are currently examining options in consultation with our bankers and financial advisers.
We have also begun to look beyond Europe for new footballers. Shunsuke Nakamura, a Japan international, was signed in the summer and we continually consider the possibility of other international signings joining Celtic. These players open up the prospect of exploring new markets for the Celtic brand; but these markets are real rather than prospective only if the players play regularly for the Club, and that will in turn happen only if they are good enough. It is, nevertheless clear that the football market, whether for players or for commercial opportunities, has expanded at a quite extraordinary pace in recent years. Celtic cannot ignore the benefits that these developments might bring to the Club.
Scottish football clubs now appear to have come through the worst of the recent football recession. Several have emerged from administration and all have applied themselves to the objective of achieving sustainable financial stability. Management and Boards of Directors are looking beyond the immediate pressures to the longer-term imperatives affecting their clubs. Squad sizes and remuneration packages now more closely reflect the need to match input with output, to achieve value for money spent and to do all the things companies in other sectors have had to do to ensure survival.
These objectives could be more easily accomplished if reliable data on all transfers and contracts were published regularly. Football must be one of the few sectors where the value of the main assets – the players – remains primarily a matter of rumour and conjecture. The involvement of player’s agents adds a further layer of obscurity. Managing a football company against this background is made appreciably more difficult as a result. Of course all clubs would have to make this data available – from the largest to the smallest – if a proper and competitive market for footballers were to function effectively. And account would have to be taken of the interests of the players themselves. This information has long been available in some other sports, notably in the United States, without obvious adverse effects. Thought should be given by the football authorities and accounting profession to a more transparent market for footballers and, by extension, to the valuation of football stadia, the principal fixed asset of clubs.
I should like to take this opportunity to record our thanks and indebtedness to Martin O’Neill for his time as manager of Celtic. He was an inspiration and a leader of the highest quality. Celtic Football Club rose to an altogether higher level during his tenure. The players and supporters enjoyed a sense of pride absent from Celtic Park for a generation. I doubt if many people were aware of the great personal pressures Martin has endured during his wife’s illness. But he continued throughout to present a positive face despite a punishing schedule of travel and consultations with doctors and specialists. I know he also derived great support from John Robertson and Steve Walford, his able assistants at Celtic Park. I am sure all Celtic supporters will join me in wishing Geraldine a full recovery and Martin an early return to football.
We are delighted to have secured the services of Gordon Strachan as successor to Martin O’Neill. He has thrown himself into the job, showing great enthusiasm and determination to sustain Celtic’s position. Transitions on the scale we are currently engaged in do take time and we are determined, along with Gordon, to get it right. Football supporters are, almost by definition, impatient for success; but I am confident our legendary support, famous throughout the world, will understand if the process of rebuilding is not necessarily achieved overnight. I ask for their backing in the expectation that it will be forthcoming. Brian Quinn CBE Chairman 19 August 2005
OPERATING REVIEW INTRODUCTION The last 12 months have been an eventful time on the field for Celtic. We won the Tennents’ Scottish Cup, while narrowly missing out on retaining the Bank of Scotland Premierleague title, and we participated in the UEFA Champions’ League group stage in what was acknowledged as the most difficult group, competing against AC Milan, Barcelona and Shakhtar Donetsk.
In the Bank of Scotland Premierleague, we were just a few minutes away from retaining our title, though it was to the credit of the team that they were able to recover from the disappointment at Fir Park to win the Tennents’ Scottish Cup the following weekend at Hampden. That game was also the last competitive fixture of Martin O’Neill’s tenure as manager.
After five excellent years in charge, during which we won the Bank of Scotland Premierleague three times, the Tennents’ Scottish Cup twice, the CIS Cup once and, of course, reached the UEFA Cup final in 2003, Martin indicated that he wanted to step down as manager for family reasons. The circumstances surrounding his departure were tinged with sadness and the thoughts of everyone in the Celtic family are with Martin and his family.
Following the success that the Club had enjoyed since his appointment in 2000, it was fitting that Martin, along with his assistants, John Robertson and Steve Walford, accepted the Tennents’ Scottish Cup after our victory against Dundee United.
In Gordon Strachan, we have appointed a manager who we believe will continue to bring success to the Club. He has a wealth of experience gained from years as a player and a manager, and an impressive knowledge of the game. Gordon has already spoken of his excitement at joining Celtic and of his desire to win. First and foremost, that means winning the league title.
FINANCIAL PERFORMANCE Group turnover has reduced by £6.85m, 9.9% to £62.17m from 2004, largely as a result of 4 fewer home games being played in the year, including three UEFA Cup games played in the second half of last season. In the current year, turnover benefited from the high take-up of standard season tickets, together with the revenues generated from participation in the group stage of the UEFA Champions’ League.
Operating expenses, excluding exceptional operating costs, have declined by £6.08m, 9.5% to £58.07m, predominantly due to reduced cost of sales particularly within merchandising and catering, labour costs both football and non-football and other direct overheads related to activity in the year.
Exceptional operating expenses at £2.96m mainly reflect the costs incurred in the early termination of certain players’ contracts whereas those incurred last year reflected the implementation of a cost rationalisation plan.
The amortisation charge of £7.34m is down almost 32% on last year reflecting the reduced carrying value of the first team squad and a decline in the value of transfer fees paid in recent years.
The pre tax loss reported of £7.73m, despite the reduction in operating expenses and amortisation as noted above, re-emphasises the ongoing challenge to match football success with financial stability. Total debt rose to £19.50m from £15.80m as at 30 June 2004.
FOOTBALL INVESTMENT We have embarked on a rebuilding process and have made a significant investment in the football team, with seven new players signing during the close season - Maciej Zurawski, Shunsuke Nakamura, Artur Boruc, Paul Telfer, Mo Camara, Adam Virgo and Jeremie Aliadiere. A number of players left the Club – Paul Lambert, Jackie McNamara, Robert Douglas, Magnus Hedman, Ulrik Laursen, Momo Sylla, Joos Valgaeren, David Fernandez, Craig Bellamy, Stephane Henchoz, Bobby Petta, Henri Camara and Juninho – and we thank them all for their contributions to our success in recent seasons. In addition, contract extensions were awarded to John Hartson, Bobo Balde, Neil Lennon and Craig Beattie. These changes have given us the opportunity to refresh the playing pool as well as recalibrate the wage bill, while still maintaining and possibly improving the quality of the playing squad, and we look forward to the team having a successful year.
FOOTBALL OPERATIONS Revenue from Football Operations was reported as £31.43m.
This was achieved mainly as a result of strong season ticket sales in both standard and premium areas following a price increase of 5%. Demand for season tickets during the 2004/2005 season remained strong, with sales of 50,805 in standard and 2,564 in premium. During the season, the Club’s Ticket Office sold a total of 565,549 tickets for 59 first team matches. 367,953 tickets were sold for our 27 home matches and a further 164,723 for matches played at away or neutral venues.
The UEFA Champions’ League proved a major attraction for our supporters once again and ticket sales from our three home matches generated revenues of just over £4m. Celtic supporters took up 90% of the tickets offered for matches not played at Celtic Park. This was a tremendous response and once again Celtic supporters proved their importance to both the Club and Scottish football by travelling in such number all over the country, and indeed Europe, to back the team.
At the beginning of the 2004/2005 season, in an effort to improve on customer service levels and reduce waiting times, Ticketmaster was contracted to sell tickets for our home matches through their state-of-the-art call centre. This partnership worked well in its first year, with a total of 48,574 tickets sold through this channel. In addition, Ticketmaster have supported our popular online booking facility, and both these initiatives will continue to be developed along with our new SMS booking service which was successfully piloted last season and is now fully operational for away match ticket bookings.
YOUTH DEVELOPMENT Revenues from Youth Development were £1.54m in comparison to £1.36m last year.
The Club continues to see the benefits of substantial investment in our Youth Academy, with a number of talented young players making the breakthrough to the first team squad in the past 12 months. That is due to the hard work and dedication of everyone in the youth development set-up. The Club has also acquired rights on a conditional basis to purchase land on the site of the former Lennox Castle Hospital, which has been earmarked as the preferred location for a training and Youth Academy facility.
With Tommy Burns having been appointed as first team coach, in addition to his role as Head of Youth, Willie McStay will now assist Tommy in the day-to-day running of the Academy. Willie will continue to coach the Under 19’s who, last season, won their League Championship and the SFA Youth Cup. The reserve squad, coached by Kenny McDowall, also won its League Championship for the fourth year in a row. Both squads contain players who are still of an age to play at a younger level, which is a further indication of the quality of the players at Celtic and bodes well for the future.
Former youth players Craig Beattie, Shaun Maloney, Aiden McGeady, David Marshall, Stephen McManus and Ross Wallace have all made valuable contributions in the past 12 months, while Paul Lawson and Michael Gardyne recently made their first-team debuts in the pre-season friendly against Leeds United.
Donations from Celtic Development Pools continue to provide much of the funding for the Youth Development operation. Celtic Pools remains the most successful small lottery within the British football sector. To assist in maintaining this position, easier methods of paying the weekly pools such as on-line and direct debit payments are now options being marketed to supporters. Other online opportunities will also be explored.
CELTIC IN THE COMMUNITY Celtic in the Community provides a coaching service tailored to meet the needs of children, teenagers and adults. Since the inception of the scheme in June 2003, over 200,000 attendees have been involved in coaching courses and services provided by Celtic in the Community. The Celtic in the Community programme also provides a pathway into our Youth Academy. Over 100 youngsters have been identified and invited into the Development Centre Programme and four have made their way into the Academy itself.
The Community Department is now self-financing and generates a small profit for the Club.
During this time, Celtic in the Community has established excellent partnership arrangements with a number of public, voluntary and private agencies to develop and deliver the notion of stronger local communities. The Celtic in the Community programme now operates in Ireland in partnership with Topflight Soccer. Over 1,000 youngsters (boys and girls) participated in the week-long summer programme. 88 camps were operated in Scotland and Ireland this summer.
MERCHANDISING Merchandising had a difficult year, which was reflected throughout the retail industry. Sales of £10.06m were 25.1% down on the previous year. This was largely attributable to a general slowdown in high street retail, lower margins and the change of kit manufacturer from Umbro to NIKE.
The NIKE brand is one of the world’s most popular and will provide Celtic with a global opportunity to market our unique and popular football kits. Sales of the new home kit are encouraging and with the full range of NIKE product now in store we hope to see a sharp upturn in fortunes within our retail operation. Our Celtic Mail Order and Internet Sales Operations have now been transferred to Kitbag, a specialist company who already work with a number of other top clubs, including Chelsea, Manchester United and Barcelona, as well as with UEFA and NIKE. Their greater call-handling capacity will bring significant benefits to our customer service standards.
We have increased the number of retail outlets, with a new store opening in East Kilbride. Further openings are planned for stores in Clydebank and Coatbridge, which will take our total to twelve.
MULTIMEDIA Total Multimedia revenues at £16.60m compare to £16.06m in 2004.
The Club’s Multimedia Division has undergone restructuring since the joint venture with Setanta to set up Celtic TV was launched at the start of this past financial year. Several personnel from the Multimedia Division moved to join the new company and those who remained at the Club have concentrated on expanding the online web services at celticfc.net through subscription channels, providing video editorial for the Football Department, producing video and DVD products for the Merchandising Division, developing pay-per-view events and managing the Club’s own TV rights.
Celtic Replay and Celtic Live (an internet service offering live video to ex-UK & Ireland users) have changed to Channel 67 Online (Replay) and Channel 67 Online+ (Live). The celticfc.net site is being redeveloped and the intention is to launch a fully functional Japanese site at the same time as the re-launch of celticfc.net. Further development of the Japanese market will continue with active marketing of Channel 67 Online+ in that territory.
At the end of its first full year Celtic TV had approximately 17,000 subscribers. The plan for the future, to suit the needs of both partners, is that Celtic TV will become a licensed Celtic brand operated by Setanta and the Club will receive a licence fee.
We have also signed a new publishing deal with CRE8, who will now design and produce the Celtic View and the matchday programme and this will give us a guaranteed income for the next five years. They are an award-winning company and are looking forward to working with such a strong brand as the Celtic View.
PARTNER PROGRAMME The appointment of NIKE as exclusive Club sponsor for products and kit in a 5-year deal worth a minimum of £25m, subject to contractual conditions, to Celtic strengthened the Partner Programme.
Further success for the Partner Programme was established when Coors Brewers Limited extended the Old Firm shirt sponsor agreement to 2010, under their increasingly popular Carling brand.
Season 2004/05 also saw the introduction of Thomas Cook as the Club’s Official Holiday Partner and Direct Choice as Official Insurance Partner, both of whom were carefully selected for the added value they can bring to the Club and to the support.
The above join our long-standing partners T-Mobile, Phoenix, MBNA, Lonsdale Travel, Lindley Catering and Ladbrokes, all of whom we are pleased to continue working with in the Partner Programme.
These major relationships go a long way to securing a major proportion of our income streams over the next five years.
STADIUM Overall stadium revenues were £2.54m in the year, a reduction of £0.91m from 2004, largely as a result of outsourcing concourse catering.
FACILITIES Following a review of costs and service provision, the existing outsourcing contract with Alfred McAlpine Business Services was terminated in April 2005 and the function was brought in house.
CATERING AND CORPORATE HOSPITALITY Season 2004/2005 was one of consolidation for our Catering and Corporate Hospitality division after some significant changes last season. These have resulted in considerable improvement in our service and quality within these areas and we have experienced an improvement in our financial performance for the year.
We enjoyed a successful first year with Lindley Catering Ltd as our concourse catering provider and look forward to more success with them in the remaining four years of that contract. A major course of refurbishment works has been undertaken in the South Stand boxes, Walfrid Kitchen and Kerrydale Suite for the season ahead.
STADIUM DEVELOPMENT During the course of the year, Celtic worked in close liaison with the Glasgow City Council Safety Team for Sports Grounds to seek to enhance the safe management of spectators accessing the Stadium. Various physical improvements to the environment in and around Celtic Park were implemented. These included the installation of additional gate access at Janefield Street East and West, an increase in the number of turnstile entry points to improve access for spectators, hard landscaping of existing ground to enhance safer circulation and improved lighting in the Janefield Street area.
The Club will continue to place spectator safety as its highest priority and during the forthcoming season will introduce colour coded tickets to improve access for spectators and will undertake a pilot study of SMART Card Entry Systems and associated technology at Celtic Park.
SUPPORTER RELATIONS Throughout the past year we have maintained our monthly meeting cycle with supporters’ representatives and I am pleased to say that the constructive nature of these meetings has allowed our good relations to continue. In addition, the Chairman and other Directors have attended supporter functions in Scotland and Ireland.
It is important that supporters are fully aware of what is going on behind the scenes and we have tried where practical to ensure this has been the case. Additionally this season we have introduced some new initiatives such as invitations to press conferences at Celtic Park and have actively supported the initiative of a singing section for home games.
Customer Service is another area, which we take extremely seriously and we believe that we have made great strides in this area in all aspects of the business and will continue to work with supporters to ensure that we reach the standard expected.
Everyone at the Club appreciates the contribution provided by our supporters around the world and we look forward to that being continued in the coming year.
CELTIC CHARITY FUND Celtic Charity Fund has continued to build on the success of last year when the Fund reached the milestone of £1m in funds raised since its formation in 1995. Fundraising activity has been extremely successful again this year with a number of worthy causes benefiting from Celtic Charity Fund support. A more detailed report on their activities is contained on pages 45 and 46.
The Club would like to thank all those who have contributed to the success of the Charity Fund including supporters, players, Trustees and the fund raising action group.
WORK WITHIN THE LOCAL COMMUNITY Celtic continues to play an active role within the local community. Through a range of partnerships, the Club continues to honour the ambitions of the Club’s founders as an institution for all, working to assist those in need and ensuring opportunity for young people in particular. Celtic has worked with Glasgow City Council and other agencies to deliver a number of projects such as youth football initiatives and activities aimed at combating racism and sectarianism.
We were pleased during the year to continue our support of the Sense over Sectarianism initiative, which brings together Celtic Football Club, Rangers Football Club, the Catholic Church and Church of Scotland as well as Glasgow City Council to fund a range of local initiatives aimed at combating sectarianism. During the year many projects have been launched and extensive work undertaken with young people through the school curriculum.
Celtic was also delighted in April of this year to launch the Old Firm Alliance project in conjunction with Rangers Football Club. The project is supported financially by the Social Justice Resources Fund through the Glasgow Alliance and aims to educate young people on the benefits of a healthier lifestyle, provide them with positive role models and challenge racist and sectarian attitudes and other anti-social behaviour.
Celtic Education continues to use the focus of Celtic to develop the skills, motivation and confidence of young people who have faced challenges at school. Thousands of young people have already benefitted from this project in terms of increased self-esteem, improved health and fitness, and increased positive behaviour.
The Club also hopes to be in a position in the near future to announce the opening of a new study and education facility at Celtic Park, developed in association with Glasgow City Council and to be used by young people within the local community.
Around 50 pupils from local schools have enjoyed a week of structured work experience at Celtic Park during the year.
HUMAN RESOURCES We continued to strive for improvements in internal communication during the year. Feedback from the 2004 Colleagues’ Opinions Survey resulted in the resumption of regular Colleagues’ Meetings and the launch of a new Information and Consultation forum. Further progress was also made in implementing the action plan for Health and Safety.
The hard work and contribution of all colleagues in another challenging year is once again greatly appreciated.
SUMMARY AND OUTLOOK The defeat by Artmedia Bratislava in the UEFA Champions’ League qualifier was massively disappointing and presents a number of operational and financial challenges that are now being addressed. Most importantly, we will provide Gordon Strachan with every possible assistance in the development of the first team and his review of the other football operations. We plan to strengthen our scouting and coaching network and progress the development of our Youth Academy facility at the Lennox Castle site. In addition, season ticket sales for 2005/2006 have been encouraging and the new contracts agreed with NIKE, Carling and Kitbag, together with the revenues generated from our partner programme and Japanese initiatives, allow us to move forward with some optimism. The benefit of these new contracts will be reflected in the coming years. In addition, the close season transfer activity resulted in a substantial reduction in football wage costs and this, together with a planned reduction in amortisation costs will result in a reduced cost base and a sustainable financial position.
We will remain focussed in our quest for continued domestic football success and to bring UEFA Champions’ League football back to Celtic Park on an annual basis. Peter T Lawwell Chief Executive 19 August 2005
The official press release:
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CELTIC plc
Preliminary Results for the year ended 30 June 2005
SUMMARY OF THE RESULTS
Operational Highlights
· Winners of the Tennents’ Scottish Cup. · Participation in the UEFA Champions’ League Group Stage. · Contract extensions awarded to John Hartson, Neil Lennon, Bobo Balde and Craig Beattie. · Appointment of Gordon Strachan as Football Manager. · NIKE appointed as new kit manufacturer on lucrative 5 year deal until 2010. · Enhanced shirt sponsorship contract agreed with Carling until 2010.
Financial Highlights · Group turnover decreased by 9.9% to £62.17m. · Operating expenses reduced by 9.5% to £58.07m. · Profit from operations of £4.10m (2004: £4.87m) · Exceptional operating expenses of £2.96m (2004: £0.39m). · Loss after taxation of £7.73m (2004: £7.47m). · Year-end debt of £19.5m (2004: £15.8m).
CHAIRMAN’S STATEMENT Taking the year 2004/2005 as a whole, the factors contributing to Celtic’s strong financial performance in the first half of the year were largely reversed in the second half, as I forewarned in commenting on the half-year results. Exit from Europe, combined with fewer home games in domestic competition, brought a sharp reduction in revenues in the second half, so that for the year as a whole profit from operations, at around £4 million, and loss after taxation of £7.7 million, were similar to last year.
Celtic’s performance on the football field was mixed. The team again participated in the UEFA Champions’ League group stage, recording good results against AC Milan and Barcelona; and retained the Tennents’ Scottish Cup with a record 40th success. However, the Bank of Scotland Premierleague title was surrendered in the final minutes of the last day of the season, a very disappointing ending to a long and taxing League Championship.
On the face of it, last year marked a pause in the remarkable run of success enjoyed by Celtic in recent years. Turnover was down for the first time in ten years, with sales of merchandise in particular falling fairly sharply following several years of uninterrupted growth. Net debt rose to £19.5 million. It is, however, important to look behind and beyond a single year’s figures.
Football and multimedia revenues, comprising 77% of total income last year, are especially sensitive to progress in European competition, and our failure to go beyond the end of the year in either the UEFA Champions’ League or the UEFA Cup had a significant effect on revenues. Likewise, merchandise sales suffered from exceptional and extraneous factors, notably the general malaise in retail sales and the switch to a new partner in this area, which had a negative short-term effect.
Over a longer period the picture looks quite different. In the last five years, revenues have grown from £42 million to £62 million and profit from operations has been consistently positive. Backed by strong performances in domestic competitions and a high profile in Europe, the Celtic brand has clearly strengthened and expanded. Perhaps most important, but little appreciated, the Company has come through the first real recession in the football sector, achieving football success while avoiding the financial difficulties that have afflicted so many clubs both in the UK and in Europe more generally.
We believe we have learned important lessons from this experience, lessons that will inform our actions looking ahead. For example, careful management of costs, particularly football players’ contracts, is essential, if unpopular at times. Thinking about the length and composition of these contracts has changed over this five year period and we believe we are now applying best practice in this area, while recognising that bringing about visible benefits takes a little time. We have also made progress in achieving a greater degree of insulation for revenues from the effect of set-backs in football results. Contracts with minimum guaranteed amounts e.g. in respect of merchandise (NIKE) and shirt sponsorship (Carling), now provide underpinning for football ticket sales. Peter Lawwell and his management team deserve great credit for adopting and executing this strategic step. Season tickets have held up well over the 5-year period at between 53,000 and 54,000, and attendance at home games at Celtic Park have also been sustained at between 57,000 and 59,000, a quite remarkable demonstration of the support that Celtic enjoys. Taking all of these factors together, we believe we are building a strong, successful business at Celtic Park.
Of course, the business must be based on the success of our football team. Under the management of Martin O’Neill Celtic enjoyed dominance in Scotland and re-emerged as a European force. The squad that delivered this success needs significant refreshing and we have begun the challenging job of rebuilding, a task that cannot be rushed and which has to be accomplished, if possible, without an appreciable drop in standards. Gordon Strachan, the successor to Martin, is fully on board as we go through the transition. This summer we have already arranged the departure of ten players and we have recruited seven. I believe supporters acknowledge that changes on this scale are not always negotiated smoothly and are ready to give Gordon the time needed to bring about the reconstruction of the squad.
Our younger players will help in this task. The reserve and under 19 teams won their respective championships and Celtic, like many other SPL clubs, expects home-grown players to play a prominent part in future Celtic teams. We will expand our scouting arrangements, looking beyond the UK, and we have now announced our preferred choice of location for a new and modern training facility. No company, whatever field of activity they may be in, can neglect to invest in the business; failure to do so results inevitably in longer-term problems. This strengthening of our football infrastructure and the need to maintain a sound financial base have clear implications for our resources going forward and we are currently examining options in consultation with our bankers and financial advisers.
We have also begun to look beyond Europe for new footballers. Shunsuke Nakamura, a Japan international, was signed in the summer and we continually consider the possibility of other international signings joining Celtic. These players open up the prospect of exploring new markets for the Celtic brand; but these markets are real rather than prospective only if the players play regularly for the Club, and that will in turn happen only if they are good enough. It is, nevertheless clear that the football market, whether for players or for commercial opportunities, has expanded at a quite extraordinary pace in recent years. Celtic cannot ignore the benefits that these developments might bring to the Club.
Scottish football clubs now appear to have come through the worst of the recent football recession. Several have emerged from administration and all have applied themselves to the objective of achieving sustainable financial stability. Management and Boards of Directors are looking beyond the immediate pressures to the longer-term imperatives affecting their clubs. Squad sizes and remuneration packages now more closely reflect the need to match input with output, to achieve value for money spent and to do all the things companies in other sectors have had to do to ensure survival.
These objectives could be more easily accomplished if reliable data on all transfers and contracts were published regularly. Football must be one of the few sectors where the value of the main assets – the players – remains primarily a matter of rumour and conjecture. The involvement of player’s agents adds a further layer of obscurity. Managing a football company against this background is made appreciably more difficult as a result. Of course all clubs would have to make this data available – from the largest to the smallest – if a proper and competitive market for footballers were to function effectively. And account would have to be taken of the interests of the players themselves. This information has long been available in some other sports, notably in the United States, without obvious adverse effects. Thought should be given by the football authorities and accounting profession to a more transparent market for footballers and, by extension, to the valuation of football stadia, the principal fixed asset of clubs.
I should like to take this opportunity to record our thanks and indebtedness to Martin O’Neill for his time as manager of Celtic. He was an inspiration and a leader of the highest quality. Celtic Football Club rose to an altogether higher level during his tenure. The players and supporters enjoyed a sense of pride absent from Celtic Park for a generation. I doubt if many people were aware of the great personal pressures Martin has endured during his wife’s illness. But he continued throughout to present a positive face despite a punishing schedule of travel and consultations with doctors and specialists. I know he also derived great support from John Robertson and Steve Walford, his able assistants at Celtic Park. I am sure all Celtic supporters will join me in wishing Geraldine a full recovery and Martin an early return to football.
We are delighted to have secured the services of Gordon Strachan as successor to Martin O’Neill. He has thrown himself into the job, showing great enthusiasm and determination to sustain Celtic’s position. Transitions on the scale we are currently engaged in do take time and we are determined, along with Gordon, to get it right. Football supporters are, almost by definition, impatient for success; but I am confident our legendary support, famous throughout the world, will understand if the process of rebuilding is not necessarily achieved overnight. I ask for their backing in the expectation that it will be forthcoming. Brian Quinn CBE Chairman 19 August 2005
OPERATING REVIEW INTRODUCTION The last 12 months have been an eventful time on the field for Celtic. We won the Tennents’ Scottish Cup, while narrowly missing out on retaining the Bank of Scotland Premierleague title, and we participated in the UEFA Champions’ League group stage in what was acknowledged as the most difficult group, competing against AC Milan, Barcelona and Shakhtar Donetsk.
In the Bank of Scotland Premierleague, we were just a few minutes away from retaining our title, though it was to the credit of the team that they were able to recover from the disappointment at Fir Park to win the Tennents’ Scottish Cup the following weekend at Hampden. That game was also the last competitive fixture of Martin O’Neill’s tenure as manager.
After five excellent years in charge, during which we won the Bank of Scotland Premierleague three times, the Tennents’ Scottish Cup twice, the CIS Cup once and, of course, reached the UEFA Cup final in 2003, Martin indicated that he wanted to step down as manager for family reasons. The circumstances surrounding his departure were tinged with sadness and the thoughts of everyone in the Celtic family are with Martin and his family.
Following the success that the Club had enjoyed since his appointment in 2000, it was fitting that Martin, along with his assistants, John Robertson and Steve Walford, accepted the Tennents’ Scottish Cup after our victory against Dundee United.
In Gordon Strachan, we have appointed a manager who we believe will continue to bring success to the Club. He has a wealth of experience gained from years as a player and a manager, and an impressive knowledge of the game. Gordon has already spoken of his excitement at joining Celtic and of his desire to win. First and foremost, that means winning the league title.
FINANCIAL PERFORMANCE Group turnover has reduced by £6.85m, 9.9% to £62.17m from 2004, largely as a result of 4 fewer home games being played in the year, including three UEFA Cup games played in the second half of last season. In the current year, turnover benefited from the high take-up of standard season tickets, together with the revenues generated from participation in the group stage of the UEFA Champions’ League.
Operating expenses, excluding exceptional operating costs, have declined by £6.08m, 9.5% to £58.07m, predominantly due to reduced cost of sales particularly within merchandising and catering, labour costs both football and non-football and other direct overheads related to activity in the year.
Exceptional operating expenses at £2.96m mainly reflect the costs incurred in the early termination of certain players’ contracts whereas those incurred last year reflected the implementation of a cost rationalisation plan.
The amortisation charge of £7.34m is down almost 32% on last year reflecting the reduced carrying value of the first team squad and a decline in the value of transfer fees paid in recent years.
The pre tax loss reported of £7.73m, despite the reduction in operating expenses and amortisation as noted above, re-emphasises the ongoing challenge to match football success with financial stability. Total debt rose to £19.50m from £15.80m as at 30 June 2004.
FOOTBALL INVESTMENT We have embarked on a rebuilding process and have made a significant investment in the football team, with seven new players signing during the close season - Maciej Zurawski, Shunsuke Nakamura, Artur Boruc, Paul Telfer, Mo Camara, Adam Virgo and Jeremie Aliadiere. A number of players left the Club – Paul Lambert, Jackie McNamara, Robert Douglas, Magnus Hedman, Ulrik Laursen, Momo Sylla, Joos Valgaeren, David Fernandez, Craig Bellamy, Stephane Henchoz, Bobby Petta, Henri Camara and Juninho – and we thank them all for their contributions to our success in recent seasons. In addition, contract extensions were awarded to John Hartson, Bobo Balde, Neil Lennon and Craig Beattie. These changes have given us the opportunity to refresh the playing pool as well as recalibrate the wage bill, while still maintaining and possibly improving the quality of the playing squad, and we look forward to the team having a successful year.
FOOTBALL OPERATIONS Revenue from Football Operations was reported as £31.43m.
This was achieved mainly as a result of strong season ticket sales in both standard and premium areas following a price increase of 5%. Demand for season tickets during the 2004/2005 season remained strong, with sales of 50,805 in standard and 2,564 in premium. During the season, the Club’s Ticket Office sold a total of 565,549 tickets for 59 first team matches. 367,953 tickets were sold for our 27 home matches and a further 164,723 for matches played at away or neutral venues.
The UEFA Champions’ League proved a major attraction for our supporters once again and ticket sales from our three home matches generated revenues of just over £4m. Celtic supporters took up 90% of the tickets offered for matches not played at Celtic Park. This was a tremendous response and once again Celtic supporters proved their importance to both the Club and Scottish football by travelling in such number all over the country, and indeed Europe, to back the team.
At the beginning of the 2004/2005 season, in an effort to improve on customer service levels and reduce waiting times, Ticketmaster was contracted to sell tickets for our home matches through their state-of-the-art call centre. This partnership worked well in its first year, with a total of 48,574 tickets sold through this channel. In addition, Ticketmaster have supported our popular online booking facility, and both these initiatives will continue to be developed along with our new SMS booking service which was successfully piloted last season and is now fully operational for away match ticket bookings.
YOUTH DEVELOPMENT Revenues from Youth Development were £1.54m in comparison to £1.36m last year.
The Club continues to see the benefits of substantial investment in our Youth Academy, with a number of talented young players making the breakthrough to the first team squad in the past 12 months. That is due to the hard work and dedication of everyone in the youth development set-up. The Club has also acquired rights on a conditional basis to purchase land on the site of the former Lennox Castle Hospital, which has been earmarked as the preferred location for a training and Youth Academy facility.
With Tommy Burns having been appointed as first team coach, in addition to his role as Head of Youth, Willie McStay will now assist Tommy in the day-to-day running of the Academy. Willie will continue to coach the Under 19’s who, last season, won their League Championship and the SFA Youth Cup. The reserve squad, coached by Kenny McDowall, also won its League Championship for the fourth year in a row. Both squads contain players who are still of an age to play at a younger level, which is a further indication of the quality of the players at Celtic and bodes well for the future.
Former youth players Craig Beattie, Shaun Maloney, Aiden McGeady, David Marshall, Stephen McManus and Ross Wallace have all made valuable contributions in the past 12 months, while Paul Lawson and Michael Gardyne recently made their first-team debuts in the pre-season friendly against Leeds United.
Donations from Celtic Development Pools continue to provide much of the funding for the Youth Development operation. Celtic Pools remains the most successful small lottery within the British football sector. To assist in maintaining this position, easier methods of paying the weekly pools such as on-line and direct debit payments are now options being marketed to supporters. Other online opportunities will also be explored.
CELTIC IN THE COMMUNITY Celtic in the Community provides a coaching service tailored to meet the needs of children, teenagers and adults. Since the inception of the scheme in June 2003, over 200,000 attendees have been involved in coaching courses and services provided by Celtic in the Community. The Celtic in the Community programme also provides a pathway into our Youth Academy. Over 100 youngsters have been identified and invited into the Development Centre Programme and four have made their way into the Academy itself.
The Community Department is now self-financing and generates a small profit for the Club.
During this time, Celtic in the Community has established excellent partnership arrangements with a number of public, voluntary and private agencies to develop and deliver the notion of stronger local communities. The Celtic in the Community programme now operates in Ireland in partnership with Topflight Soccer. Over 1,000 youngsters (boys and girls) participated in the week-long summer programme. 88 camps were operated in Scotland and Ireland this summer.
MERCHANDISING Merchandising had a difficult year, which was reflected throughout the retail industry. Sales of £10.06m were 25.1% down on the previous year. This was largely attributable to a general slowdown in high street retail, lower margins and the change of kit manufacturer from Umbro to NIKE.
The NIKE brand is one of the world’s most popular and will provide Celtic with a global opportunity to market our unique and popular football kits. Sales of the new home kit are encouraging and with the full range of NIKE product now in store we hope to see a sharp upturn in fortunes within our retail operation. Our Celtic Mail Order and Internet Sales Operations have now been transferred to Kitbag, a specialist company who already work with a number of other top clubs, including Chelsea, Manchester United and Barcelona, as well as with UEFA and NIKE. Their greater call-handling capacity will bring significant benefits to our customer service standards.
We have increased the number of retail outlets, with a new store opening in East Kilbride. Further openings are planned for stores in Clydebank and Coatbridge, which will take our total to twelve.
MULTIMEDIA Total Multimedia revenues at £16.60m compare to £16.06m in 2004.
The Club’s Multimedia Division has undergone restructuring since the joint venture with Setanta to set up Celtic TV was launched at the start of this past financial year. Several personnel from the Multimedia Division moved to join the new company and those who remained at the Club have concentrated on expanding the online web services at celticfc.net through subscription channels, providing video editorial for the Football Department, producing video and DVD products for the Merchandising Division, developing pay-per-view events and managing the Club’s own TV rights.
Celtic Replay and Celtic Live (an internet service offering live video to ex-UK & Ireland users) have changed to Channel 67 Online (Replay) and Channel 67 Online+ (Live). The celticfc.net site is being redeveloped and the intention is to launch a fully functional Japanese site at the same time as the re-launch of celticfc.net. Further development of the Japanese market will continue with active marketing of Channel 67 Online+ in that territory.
At the end of its first full year Celtic TV had approximately 17,000 subscribers. The plan for the future, to suit the needs of both partners, is that Celtic TV will become a licensed Celtic brand operated by Setanta and the Club will receive a licence fee.
We have also signed a new publishing deal with CRE8, who will now design and produce the Celtic View and the matchday programme and this will give us a guaranteed income for the next five years. They are an award-winning company and are looking forward to working with such a strong brand as the Celtic View.
PARTNER PROGRAMME The appointment of NIKE as exclusive Club sponsor for products and kit in a 5-year deal worth a minimum of £25m, subject to contractual conditions, to Celtic strengthened the Partner Programme.
Further success for the Partner Programme was established when Coors Brewers Limited extended the Old Firm shirt sponsor agreement to 2010, under their increasingly popular Carling brand.
Season 2004/05 also saw the introduction of Thomas Cook as the Club’s Official Holiday Partner and Direct Choice as Official Insurance Partner, both of whom were carefully selected for the added value they can bring to the Club and to the support.
The above join our long-standing partners T-Mobile, Phoenix, MBNA, Lonsdale Travel, Lindley Catering and Ladbrokes, all of whom we are pleased to continue working with in the Partner Programme.
These major relationships go a long way to securing a major proportion of our income streams over the next five years.
STADIUM Overall stadium revenues were £2.54m in the year, a reduction of £0.91m from 2004, largely as a result of outsourcing concourse catering.
FACILITIES Following a review of costs and service provision, the existing outsourcing contract with Alfred McAlpine Business Services was terminated in April 2005 and the function was brought in house.
CATERING AND CORPORATE HOSPITALITY Season 2004/2005 was one of consolidation for our Catering and Corporate Hospitality division after some significant changes last season. These have resulted in considerable improvement in our service and quality within these areas and we have experienced an improvement in our financial performance for the year.
We enjoyed a successful first year with Lindley Catering Ltd as our concourse catering provider and look forward to more success with them in the remaining four years of that contract. A major course of refurbishment works has been undertaken in the South Stand boxes, Walfrid Kitchen and Kerrydale Suite for the season ahead.
STADIUM DEVELOPMENT During the course of the year, Celtic worked in close liaison with the Glasgow City Council Safety Team for Sports Grounds to seek to enhance the safe management of spectators accessing the Stadium. Various physical improvements to the environment in and around Celtic Park were implemented. These included the installation of additional gate access at Janefield Street East and West, an increase in the number of turnstile entry points to improve access for spectators, hard landscaping of existing ground to enhance safer circulation and improved lighting in the Janefield Street area.
The Club will continue to place spectator safety as its highest priority and during the forthcoming season will introduce colour coded tickets to improve access for spectators and will undertake a pilot study of SMART Card Entry Systems and associated technology at Celtic Park.
SUPPORTER RELATIONS Throughout the past year we have maintained our monthly meeting cycle with supporters’ representatives and I am pleased to say that the constructive nature of these meetings has allowed our good relations to continue. In addition, the Chairman and other Directors have attended supporter functions in Scotland and Ireland.
It is important that supporters are fully aware of what is going on behind the scenes and we have tried where practical to ensure this has been the case. Additionally this season we have introduced some new initiatives such as invitations to press conferences at Celtic Park and have actively supported the initiative of a singing section for home games.
Customer Service is another area, which we take extremely seriously and we believe that we have made great strides in this area in all aspects of the business and will continue to work with supporters to ensure that we reach the standard expected.
Everyone at the Club appreciates the contribution provided by our supporters around the world and we look forward to that being continued in the coming year.
CELTIC CHARITY FUND Celtic Charity Fund has continued to build on the success of last year when the Fund reached the milestone of £1m in funds raised since its formation in 1995. Fundraising activity has been extremely successful again this year with a number of worthy causes benefiting from Celtic Charity Fund support. A more detailed report on their activities is contained on pages 45 and 46.
The Club would like to thank all those who have contributed to the success of the Charity Fund including supporters, players, Trustees and the fund raising action group.
WORK WITHIN THE LOCAL COMMUNITY Celtic continues to play an active role within the local community. Through a range of partnerships, the Club continues to honour the ambitions of the Club’s founders as an institution for all, working to assist those in need and ensuring opportunity for young people in particular. Celtic has worked with Glasgow City Council and other agencies to deliver a number of projects such as youth football initiatives and activities aimed at combating racism and sectarianism.
We were pleased during the year to continue our support of the Sense over Sectarianism initiative, which brings together Celtic Football Club, Rangers Football Club, the Catholic Church and Church of Scotland as well as Glasgow City Council to fund a range of local initiatives aimed at combating sectarianism. During the year many projects have been launched and extensive work undertaken with young people through the school curriculum.
Celtic was also delighted in April of this year to launch the Old Firm Alliance project in conjunction with Rangers Football Club. The project is supported financially by the Social Justice Resources Fund through the Glasgow Alliance and aims to educate young people on the benefits of a healthier lifestyle, provide them with positive role models and challenge racist and sectarian attitudes and other anti-social behaviour.
Celtic Education continues to use the focus of Celtic to develop the skills, motivation and confidence of young people who have faced challenges at school. Thousands of young people have already benefitted from this project in terms of increased self-esteem, improved health and fitness, and increased positive behaviour.
The Club also hopes to be in a position in the near future to announce the opening of a new study and education facility at Celtic Park, developed in association with Glasgow City Council and to be used by young people within the local community.
Around 50 pupils from local schools have enjoyed a week of structured work experience at Celtic Park during the year.
HUMAN RESOURCES We continued to strive for improvements in internal communication during the year. Feedback from the 2004 Colleagues’ Opinions Survey resulted in the resumption of regular Colleagues’ Meetings and the launch of a new Information and Consultation forum. Further progress was also made in implementing the action plan for Health and Safety.
The hard work and contribution of all colleagues in another challenging year is once again greatly appreciated.
SUMMARY AND OUTLOOK The defeat by Artmedia Bratislava in the UEFA Champions’ League qualifier was massively disappointing and presents a number of operational and financial challenges that are now being addressed. Most importantly, we will provide Gordon Strachan with every possible assistance in the development of the first team and his review of the other football operations. We plan to strengthen our scouting and coaching network and progress the development of our Youth Academy facility at the Lennox Castle site. In addition, season ticket sales for 2005/2006 have been encouraging and the new contracts agreed with NIKE, Carling and Kitbag, together with the revenues generated from our partner programme and Japanese initiatives, allow us to move forward with some optimism. The benefit of these new contracts will be reflected in the coming years. In addition, the close season transfer activity resulted in a substantial reduction in football wage costs and this, together with a planned reduction in amortisation costs will result in a reduced cost base and a sustainable financial position.
We will remain focussed in our quest for continued domestic football success and to bring UEFA Champions’ League football back to Celtic Park on an annual basis. Peter T Lawwell Chief Executive 19 August 2005
