Lawwell warns £18m profit won't spark splurge

It was in just such a climate the other day that Celtic's chief executive, Peter Lawwell, revealed the half-term report on the current financial year, a set of figures and projections which confirmed that the Parkhead club has entered a golden age.

While happily delivering the good news, Lawwell inwardly would be steeling himself in anticipation of the resultant backlash from his own supporters. It will take the form of a clamour to see the prosperity reflected in the transfer market, insistent demands to see substantial sums spent on big-name signings.

Between now and the closing of the summer transfer window at the end of August, the pestering is likely to be relentless, as thousands who equate an 18million profit with a licence to indulge in extravagance seek evidence of unprecedented expenditure almost on a daily basis.

Lawwell understands the phenomenon - he has, after all, been a Celtic fan himself since childhood - but would like to reduce the fever by educating the more impatient of the club's followers in the complexities and difficulties of a business with which very few are familiar.

"I think it's fair to say that acquiring new players is the hardest part of my job," said Lawwell. "And it seems to become more complicated with each passing year. It depends to a large extent on the status of the player you're after, where he currently located and how many interested parties are involved.

"For example, bringing Shunsuke Nakamura from Italian football would be the most laborious and intricate assignment I've been involved with since I took this job.

"It was because of the international element to Naka. Actually, you could even call it a global factor. Negotiations involved a lot of different aspects, such as the player's image rights and his popularity in Japan. There was a room full of agents and advisers in that one and an awful lot of haggling had to be done. It has been very satisfying and beneficial for us, when you look at his talent and what he brings to our team.

"And the complexities of the process of securing players can depend on where they're coming from. Different countries have different attitudes and approaches to business, and by that I don't just mean in football.

"Nor is it simply that, say, northern Europeans are different from Mediterranean Europeans. The Italians can be different from the French and Spanish, the Germans different from the Scandinavians, and the Dutch something else again."

Lawwell, like manager Gordon Strachan, right, agrees that Celtic's most obvious disadvantage remains financial. Even if the interim report released on Thursday was impressive, the Scottish champions are unable to compete with the wealthier nations when the most illustrious players in the game are on the market.

But he points out that there is also the question of having to overcome preconceptions, to dispel the notion that Scotland is a backwater and persuade prospective recruits of the club's attractions.

"These things can sometimes make the club a hard sell," said Lawwell. "There is no doubt that there is a widespread perception of the SPL as a poor league - one that I don't agree with, by the way - and sometimes that means we have to do a bit of convincing.

"I'm always delighted when we achieve the first step, which is to persuade an intended signing to come and have a look. You can talk till you're blue in the face to a player about the scale of the club and our ambitions, but there is no substitute for letting them see for themselves.

"When they see the stadium and the crowds and realise what the club means to so many people, you can tell that they are surprised and impressed. Then they see what a lovely city Glasgow is and the residential areas and there is no doubt it has a very persuasive effect.

"It's fair to say that there have been a number of initially reluctant, or at least uncertain, players who have been swayed by a visit. And, of course, there is a coming attraction in our new training and development academy at Lennoxtown, which will be ready for the start of next season.

"Of course, some you would like do decide to go elsewhere, but that's common to every club. Nobody, not Real Madrid or Manchester United or Chelsea, gets everybody they go after. But competing with clubs at that level financially remains our biggest disadvantage.

"That's already an unavoidable truth and it will become even more difficult next season, when the English Premiership's new television deal with Sky kicks in. That's why we have to compensate in other areas.

"It's why we have to get the football structure right from top to bottom, from Gordon down through the scouting and coaching, from the first team to the youth teams. It's why we are bringing in qualified people, from John Park in the scouting department to sports scientists from Australia to look after the health and fitness of the players."

Having been appointed just over three years ago, in October, 2003, Lawwell has overseen not only the reformation in the club's finances, but what he calls the most significant change of all, the transition of manager from Martin O'Neill to Gordon Strachan.

"When I joined, we had not long before played in the UEFA Cup final in Seville," he said. "But, having gone that far and accrued the same revenue we would have from appearing in the Champions league, we still lost 7.8million on the year.

"It was obvious that we couldn't stay on that road. There was a clear need for reducing and controlling costs, which meant, primarily, wages. Martin could see that, too, and was quite prepared to go along with it.

"But then we lost him in difficult circumstances and, when we outlined everything to Gordon during the appointment process, it was obvious that he had a deep understanding of the difficulties and the necessity to implement a wages structure that would be more bonus-orientated.

"He has been brilliant since he started, with his readiness to recognise what has to be done and his ability to go about achieving it.

"Of course, there will be frustrations, as there are in every job. We all wish we weren't constricted by financial necessity, that we had the means to do as we pleased.

"But, even if he has found it an inconvenience, he understands the need to go through exercises like a trip to Japan and America in the summer.

"These are invaluable in spreading Celtic's name to help maximise revenue from merchandising and establish a global brand.

"Now, our supporters here in Scotland are fantastic. You can see that from the numbers they run up in and the amount of spending they do at our stores. But, to be honest, I think we are at saturation point here at home.

"That's just an inescapable fact. We are a small country and there is a limit you can't go beyond in terms of selling merchandise. So we have to expand our market, and that means places like North America and the Far East.

"Gordon has recognised that from the start and he has done a tremendous job in helping to reduce the wage bill while assembling what I think is a very strong squad and maintaining on-field success.

"And he will be given funds with which to strengthen in the summer.

"As always, he can be expected use the money wisely and for the benefit of the team.

"People should be aware of that and trust his judgment."