The financial gap.

Gaz030191

Gaz030191

Well-Known Member
It's been mentioned here and there are various threads but I just wanted to post and point out both the credit to our board and their smart investments, compared to the squandering across the city.

According to kieran maguire (the price of football writer) on BBC sport sounds the other night, the gap between celtic and rangers in terms of revenue has dropped from £70,000,000 to £11,000,000.

Our appointment of Ross Wilson and his smart spending along with outside investment and European money won on the park has been amazing.

Meanwhile at celtic they're over confidence has led to them blowing over 10 million combined on players like Klimala, Soro, Hendry and Bolingoli, not to mention the infamous disco lights.

This season in Europe rangers have gained over £1,000,000 more than them from points picked up, not to mention potential bonuses for advancing.

If we win the league this year, their asset players will also depreciate on value, not to mention their contracts running down and poor European showing.

If we can go game by game and keep the pressure on, and eventually win this league, there's a chance we'll financially over take them.

3 years ago it was supposed to take £100,000,000 to catch them apparently. What a testament to everyone at the club with the progress we've made in proving that wrong.
 
We lost c£16m last season.

They lost £24.1m offset against £24m for Tierney.

Theyve regressed, we’ve invested in the squad far smarter. Their bench cost £18m last night...

Fact is, we both need CL or player sales to balance the books. As it stands, they lose more money day to day than we do.

Its irrelevant until we win the league though. Access to the CL was described as ‘rocket fuel’ on the H&H pod about the accounts.
 
Kieran also stated in the podcast how important Europe is to both clubs. One season in the CL groups wipes out their advantage overnight.
But before we get to that, qualifying from Europa - next Thursday- whilst they get pumped out is the next stage in the turnaround.
If their wages to turnover ratio is as high as he said, they will 100% have to sell soon, probably January and almost certainly their main assets, Edouard etc.
 
They could be looking at a £50m loss next year by the time you take into account transfers, increased wages, less European money and COVID.

Then there is the very realistic scenario that they will have get rid of lennon and finance a new manager.

Either they need to find large sums of money from investors or surely they will need to sell multiple players and go for a cheap manager replacement
 
Joebones said:
Kieran also stated in the podcast how important Europe is to both clubs. One season in the CL groups wipes out their advantage overnight.
But before we get to that, qualifying from Europa - next Thursday- whilst they get pumped out is the next stage in the turnaround.
If their wages to turnover ratio is as high as he said, they will 100% have to sell soon, probably January and almost certainly their main assets, Edouard etc.
Click to expand...
Christie is there plan it would seem.
 
Gaz030191 said:
It's been mentioned here and there are various threads but I just wanted to post and point out both the credit to our board and their smart investments, compared to the squandering across the city.

According to kieran maguire (the price of football writer) on BBC sport sounds the other night, the gap between celtic and Rangers in terms of revenue has dropped from £70,000,000 to £11,000,000.

Our appointment of Ross Wilson and his smart spending along with outside investment and European money won on the park has been amazing.

Meanwhile at celtic they're over confidence has led to them blowing over 10 million combined on players like Klimala, Soro, Hendry and Bolingoli, not to mention the infamous disco lights.

This season in Europe Rangers have gained over £1,000,000 more than them from points picked up, not to mention potential bonuses for advancing.

If we win the league this year, their asset players will also depreciate on value, not to mention their contracts running down and poor European showing.

If we can go game by game and keep the pressure on, and eventually win this league, there's a chance we'll financially over take them.

3 years ago it was supposed to take £100,000,000 to catch them apparently. What a testament to everyone at the club with the progress we've made in proving that wrong.
Click to expand...
Smashing post
 
1 vital thing that is missed in amongst this is that whilst they value Edouard and Ajer at £20m+ - their performances and results have been tragic, they can't even win a game in the EL never mind think about the CL, their players have regressed, therefore the assets depreciate greatly in value.

I think they are about to hit a major downward spiral, spunked tens of millions on players that have little value now and don't even get a game - the keeper and Ajeti for example.
 
They've actually blown closer to 30m on duds. They've spent almost 48m in the last 3 seasons. Edouard and Julien are about the only success stories. The rest are either meh or crap.

If we win the league this season then I'd expect a big clear out. Edouard and Ntcham definitely, Ajer probably and Christie possibly.

They'll be able to buy replacements and make a good first team if they re-invest but they're squad players aren't that great.

They don't have a decent RB. They need 2 CBs, they'd need to buy the wee girl from AC. They'll need a midfield overhaul as they surgically remove Brown. They'll need another 2 minimum forwards.

Expect to see lots of folk sold off on rhd cheap to clear out the squad and let a new manager bring in his team.

The myth that their a good team has been peddled by the media. They've got some good individuals that pull the team through but they aren't a great team and Lennon has coached them terribly.
 
I've not looked at the accounts in detail but I'd imagine that there's very little income from merchandise sales up to the end of June. I'd hope a lot of money to have been generated for the club since the Castore kit went on sale.
 
Great analysis OP, sets out all the possible financial benefits we accrue if things go as we would like. It does underline, though, how important this year’s title is to both clubs. Can we do it? Better than an even chance if the playing field is level.
 
It really is an incredible story.

We owe a lot to the people who have put money into the club, and we will have to pay that back as well when we get into profit.

Europa league has been ideal for us where we are at a level we can compete, a year in the champions league will bolster that, and even if we got third place and dropped down, would be a success.

I think with the likes of hagi, kamara, Morelos, Itten we have a number of players on the way up as well.
 
They are paying an over inflated champions League budget to not even make the champions League and to not even get out the group stages of the europa :D

Expect a player sale in the summer
 
Barisic's Bandage said:
The CL money will be the year after. I'm wondering if we'll overtake them before that
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I think we might you know. They are out of Europe with no fans and hardly any bonus money I can see their turnover easily down 5-10m. Whereas our Castore deal has surely boosted our turnover, we’re still in Europe and have picked up bonus money.

They also lose more overall when the fans are locked out because they have more seats.
 
They are heading for a 25-30 million loss next season.

If we win the league then they will be having a firesale and trying to slash the wage bill even more drastically than they’ll be doing anyway. They’ll have a massive rebuild over the next 12-18 months
 
Celtic finance report next year could make interesting reading. This year they made what 100k profit after selling Tierney for 25m. This year no player sales, spent 8 figures on players in the summer, wage bill must have risen and not picking up much prize money in EL. If we can win this league we will not be far at all of catching them on the spreadsheets as well as park.
 
Bobans27 said:
We lost c£16m last season.

They lost £24.1m offset against £24m for Tierney.

Theyve regressed, we’ve invested in the squad far smarter. Their bench cost £18m last night...

Fact is, we both need CL or player sales to balance the books. As it stands, they lose more money day to day than we do.

Its irrelevant until we win the league though. Access to the CL was described as ‘rocket fuel’ on the H&H pod about the accounts.
Click to expand...
All about the value of the squad as well. Eduard is in last year now so is Christie and Ajer. Big players have been allowed To run contracts down. Not worth near as much. No more big sales in the offing for them.
 
Any clarification on their ST sales this season? That’s the vital piece, having an almost sell-out crowd in the bank before a ball is kicked is crucial for us.
 
They've made 355.000 € more than Rangers in prize money this season so far.
The reason for this is their 10-year coefficient pay out which is almost double the amount we get.

UEFA Prize Money*
* for participation in the qualifications, in the group, in the playoffs and bonuses for the results, .. (ie without redistributed market pool)

RANGERS
Matches
W 570.000 €
W 570.000 €
D 190.000 €
D 190.000 €
Participation
260.000 €
280.000 €
2.920.000 €
Ten-year coefficient
1.357.170 €
Total 6.337.170 €

CELTIC
Matches
D 190.000 €
Participation
280.000 €
380.000 €
280.000 €
2.920.000 €
Ten-year coefficient
2.642.910 €
Total 6.692.910 €
 
In 2018 they posted a £101 million turnover to our £32 million and this season potentially we might overtake them and certainly with CL income next season we'd absolute blow them out of the water.

We've also gone from losing 9-0 on aggregate in two games against them in 2018 to being miles ahead on the park domestically and in Europe.

We win the league this season and I can see Rangers dominating this decade in terms of trophies.
 
Gaz030191 said:
3 years ago it was supposed to take £100,000,000 to catch them apparently. What a testament to everyone at the club with the progress we've made in proving that wrong.
Click to expand...
You can't really put a figure on that kind of thing. Doesn't matter how much money you have if you are not spending it wisely.

We've recruited really well and got a lot of players way under their market value. The signing of Aribo for example and the buy clause in Hagi's loan deal have been shrewd moves.

We sign McLaughlin on a free and they spent £5M or whatever on a goalkeeper who doesn't like playing in goals.

I'd say we now have a stronger squad than them and the only thing we're maybe lacking is a bit of experience but that is growing stronger after every game. We're in a very very good place and this should really be the foundations of a strong title winning team for years to come.
 
We’ve recruited well and employed the right people. A few missteps on the way there but the board deserve enormous credit for what they have done. Still need the trophies to complete that though, but so far it’s looking good.
 
EndOfDays said:
Christie is there plan it would seem.
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That won't cover their losses. Tierney covered a 24 million loss, when covid stopped the season early. God only knows their losses this season.

The only number I've seen with Christie is 10 million from NICE. No club is going to pay £15-20 million for Ryan Christie, especially when he has 18 months left on his deal.
 
Albertz Loyal said:
Europa league has been ideal for us where we are at a level we can compete, a year in the champions league will bolster that, and even if we got third place and dropped down, would be a success.
Click to expand...

I see this as my dream scenario. Get 3rd in CL group stages and go on a nice EL run. Ideally Alfredo is here for us next season and showcases his value. Then we can sell him for mega money.
 
If we win the league and are the only Scottish team to qualify for the champions league then our revenue should exceed theirs next season. Realistically we will have to sell off at least one major asset and probably only reinvest around half of that money in improving the squad. Failure to win 10 will hurt their merchandise sales but they should still fill their stadium and the sponsorship money is still there. Our wage bill will be rising if we want hang on to our best players. Their wage bill falling as they clear out their poor signings. No fire sale, no collapse just two big clubs with broadly similar financial clout. But we would be back and their dream of destroying forever us would be lost.
 
Great thread, which I have enjoyed reading.

I’m by no means being complacent here and thinking the league is won l, as it certainly isn’t. That said, a few years ago I honestly thought it would be years from now before we were truly competitive in Europe and in a strong position to win the league. I did worry Celtic would reach 12 in a row type numbers! Of course they still could, but I don’t see it with the current trajectories of both clubs.

My question is who will we look back on as the people that restored our club? Not fans, players and the gaffer but the investors, business people and those that care for the non-playing side of the club?

Maybe I was pessimistic but I really did think this stage was further down the line, but I’m absolutely delighted with where we are now. When 55 arrives, hopefully in May, who else deserves the credit alongside Gerrard, the players and the loyal fans?
 
Walters80 said:
In 2018 they posted a £101 million turnover to our £32 million and this season potentially we might overtake them and certainly with CL income next season we'd absolute blow them out of the water.

We've also gone from losing 9-0 on aggregate in two games against them in 2018 to being miles ahead on the park domestically and in Europe.

We win the league this season and I can see Rangers dominating this decade in terms of trophies.
Click to expand...

That first sentence shows an absolutely staggering turnaround mate
 
Turn the screw Rangers so we can sit back and have our moment while they implode before our eyes. 55 this year would be the start of the destruction of the house of cards.
 
There can be no question that Dave King and his supporters restored the club. We are currently running at a loss and reliant on Douglas Park and his supporters. Their belief means that we have a manager and squad progressing in Europe and challenging for trophies on all fronts. The financial gap has been closed by better transfer moves, investment and in my opinion SG has improved as a manager.
 
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