Peter Lawwell lifts lid on Celtic finances - booming bank balance, why profits are down, summer transfer spend revealed

Celtic chairman Peter Lawwell has warned against complacency as another strong set of financial results revealed the club's bank balance has increased to a record £77.2million.

This is despite the accounts for the year ended June 30, 2024 showing a significant drop in profits - down to £17.8m from £40.7m the previous year - which Lawwell insisted was "in line with expectations due to a number of known and anticipated factors". He explained: “In relation to football activities, our gain on sale achieved in the year was £7.8m lower than in the prior year. We also invested higher sums into the men’s team compared to the prior year in the form of salaries. In addition, we have experienced a rise in overhead costs driven by the high inflationary environment in which the business has operated over the last year. There was also the absence of £13.5m of non-recurring other income which was specific to the prior year.

The figures also show that revenue increased by 3.9 per cent to £124.6million, compared to £119.9m in 2023, attributed to a rise in Champions League participation money and stronger retail performance. Operating expenses increased by 10.4 per cent to £105.4m while the income from player sales was £6.6m, down from £14.4m the previous year. The figures do not include the recent club record transfer of Matt O'Riley to Brighton for £26m, which will be included in next year's financial results.

There was also an increase in transfer spend from £13.0m in 2023 to £16.6m with Celtic's overall spend on player registrations now standing at £68m over the past three financial years. Lawwell also revealed that Celtic spent a further £31.2m in the 2024 summer transfer window, twice breaking the club’s previous record transfer for Adam Idah and Arne Engels, bringing the total transfer spend over the past four years to within touching distance of £100m.

He added that £77.2m in cash reserves - a £4.9m increase from 2023 - was "more modest than it may have been" due to transfer expenditure, wage costs, stadium maintenance and the development of a new training complex at Barrowfield. The chairman also claimed that Celtic's current squad "carries the highest value and resulting amortisation charge in the club’s history, by a considerable margin".

Celtic chairman Peter Lawwell has released a strong set of accounts for the year to June 30, 2024. (Photo by Craig Williamson / SNS Group) | SNS Group

Despite the healthy financial state of the club, Lawwell stressed that Celtic cannot afford to rest on their laurels with the focus on maintaining domestic dominance and making a bigger impact in Europe ahead of the new Champions League format kicking off at home to Slovan Bratislava on Wednesday.

"Winning the Scottish Premiership in 2023/24 resulted in automatic qualification into the new UEFA Champions League format for season 2024/25," Lawwell stated. "This new structure brings more variety, the opportunity for more teams to participate at the highest level and a fresh dynamic for fans to enjoy. Last year’s Scottish Premiership and Scottish Cup trophies brought our total men’s team honours to 118, including 54 league titles, 42 Scottish Cups, 21 League Cups and a European Cup. When compared to the 80 trophies won by the start of season 1999/2000 this represents a truly remarkable achievement over the last 25 years.

"We are also firmly established as a European club from a participation perspective. Over the same 25-year period we have participated in either knock-out round or group stage European competition in 23 seasons, 12 of which were in the Champions League. As well as delivering domestic success, we are determined to progress as far as possible in European competition and improve upon our recent record. We cannot and must not be complacent and we must strive for progression as a club as the football industry evolves at a remarkable pace."

Lawwell also stressed that Celtic remain firmly committed to their recruitment model of buying young players, developing them, and selling them for profit, that has been the cornerstone of the club's financially stability over recent years amid a "challenging" financial environment in Scotland owing to the vastly lower sums of TV money compared to other European leagues.

"Notwithstanding the domestic success we have enjoyed and the establishment of Celtic as a regular European football participant, it is important that we do not deviate from our strategy, which has been successful over many years, based on maintaining a self-sustaining financial model," Lawwell added. "This involves targeting Champions League qualification each year along with introducing young players into our team, either from our academy or through recruitment, with a view to developing them and helping them to progress their careers.

This is not without its challenges as domestic media rights have been unable to keep pace with the media rights environment of our competitor markets and football industry inflation in general over recent years. This means that securing the best players is more challenging and we must work harder than ever to bring success. Our strategy has been crucial to the domestic success of recent years, and it is one your Board intends to maintain. In line with all other clubs who compete in European competition, we must also be cognisant of the UEFA Financial Sustainability rules and look to balance the short term and long-term objectives of our Club. This is a difficult balance, but a vital one."