Celtic have announced they have suffered a 21 per cent fall in revenue after the end of year financial results for the period up to June 2015 were released to the London Stock Exchange.
The failure to secure Champions League football and the decision not to sell key players such as Virgil van Dijk had a “significant impact” on the club’s finances, according to the club’s chief executive Peter Lawwell.
Celtic did reach the Europa League last-32 and the sale of of Fraser Forster to Southampton for £10m was also included.
The figures are down on last year. Celtic’s revenue for the period ending June 2014 was £64.7 million compared to £51.1m this year – which is down by over a fifth.
The Hoops also made a small operating loss of £3.6m this year compared to an £11m profit the year before.
“The year to 30 June 2015 was a period of transition for Celtic,” Lawwell said.
“Ronny Deila’s first season as manager had successes, with Celtic winning the double of the Scottish Premiership and League Cup and progressing to the last 32 of the UEFA Europa League, as well as disappointments, most notably in failing to qualify for the UEFA Champions League Group Stages and losing in the semi final of the Scottish Cup.
“Off the pitch, it was also a challenging year. Our decision not to transfer certain players registration during the period, together with failure to progress in the UEFA Champions League, have had a significant impact on revenues and profits.
“Our core strategy remains focussed on a football operation with a self sustaining financial model and relies upon: the youth academy; player development; player recruitment; management of the player pool; and sports science and performance analysis, to deliver long term sustainable football success.
“The Board reviews our strategy on an ongoing basis and, having regard to the environment in which we play, considers that it will continue to deliver stability, growth and success for Celtic. Notwithstanding the decline in revenues and profits, at the end of the financial year our cash at bank position had increased slightly to £4.72m (2013:£3.83m).
“This is essential given the challenges of operating in the Scottish football environment and our fluctuating cash requirements during the year to come. Celtic has strong foundations upon which to build.”
Ronny Deila’s men have once again failed to qualify for the Champions League this season and Lawwell says he shares the fans’ frustration.
He added: “The Board and I shared the disappointment of our supporters, football management team, players and all involved with the club at the poor result in Malmo. Ronny and his coaching team are continuing to build their team and the Board will continue to support them in the transfer market and in the development of the football operation generally.
“The Board’s commitment remains to re-invest every penny received back into the club for the longer term. Ronny is delighted with the development of the squad in the January and summer transfer windows, with his primary signing targets acquired.
“Our squad mixes exciting young players, both from our Academy and from across Scotland and Europe, with experienced internationals. As Ronny develops his players and creates our team, we look forward to the forthcoming season with confidence.”