Celtic has announced a 21.4% drop in turnover as well as a bank debt rise of nearly £6m for the six months to December 31st 2010.
The Clydesdale Scottish Premier League club’s turnover was down to £28.39m whilst its bank debt grew to £9.09m from £3.13m. Operating expenses decreased to £27.47m, a 12.5% drop with a large increase in profit before taxation which was up to £7.06m, mainly due to player transfers.
In a statement on the club’s official site, chairman John Reid played down the increase in bank debt.
"In previous years, and again last summer, I stressed the importance to our Club of financial stability and participation in Europe, and that commercial and football success cannot be separated," Reid said.
"Our net bank debt at 31 December 2010 increased from £3.13m as at 31 December 2009 to £9.09m, a level that the board considers remains manageable, and still provides some flexibility in respect of future investment. Since 31 December 2010 substantial transfer payments have been received, which has reduced our debt.
"Assuming season ticket revenue receipts for season 2011/12 to be similar to this year, and that other commitments to us are honoured when due, we currently anticipate year end net bank debt will be significantly lower than at the half-year."
"The approach we have taken to maintaining a sustainable business model, with player investment and a willingness to trade when appropriate becoming increasingly significant elements, leaves us reasonably placed to withstand the continuing sluggish economic environment. But we must also continue to ensure that we are doing all we can to make our underlying trading position healthier."