By J Hutcherson - WASHINGTON, DC (Feb 15, 2011) US Soccer Players -- If the Scottish soccer authorities needed another indicator of their Premier League's place in the wider World of soccer, all they need to do is look at Celtic's six-month financial results released on Monday. Our Premier League leaders posted a profit, but that required an advantageous player sell. In real terms, they're another Scottish club trying to get the money to work.
What they did find was a buyer for Aiden McGeady. Spartak Moscow paid £9.5 million for the forward in August. They sold Marc-Antoine Fortune to West Bromwich Albion a couple of weeks later for £2.5 million and moved out an additional £4.95 million worth of players over the Summer. After spending £6 million on players in July, they spent £2.2 million in August, another £400,000 in January. To put that into 2010-11 terms, that's the price tag on trying to be a little better than Rangers.
As Celtic's chairman John Reid put it in his Chairman's Statement: "The contribution generated from player trading, after allowing for amortisation charges and exceptional operating expenses, more than offset the outcome on our other trading activities and enable us to report an overall profit before taxation in the period of £7.06m, well up on £1.27m at the same time in the year before. However, in common with previous years, the second half is expected to be more challenging in terms of financial performance."
Reid's statement spoke about how a club like Celtic begins to extinguish debt, saying: "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."
In other words, payment in full for transfers out will give us a better picture of Celtic's finances six months from now. Still, the rest of the Scottish Premier League should see this for what it is - a statement on what it takes to contend rather than just survive in their league.
One would think that just like Rangers in recent years, Celtic would prefer to keep their elite players rather than selling them. So would a lot of clubs, but we're talking about the title contenders who focus on league and Europe. Without the ability of the Scottish teams in Europe to compete, the league as a whole suffers. That's not just an excuse for Celtic and Rangers to compete against each other in a strength of squad race that makes third-place the goal for the rest of their league.
Falling down the UEFA coefficient table means less European slots for the Scottish Premier League, currently the last club in the group that gets two Champions League slots and three Europa League slots. That drop from 16th to 17th would cost them a Champions League qualifying slot, the same one Celtic squandered over the Summer. Making sure that doesn't happen means relying on Celtic, Rangers, and whoever else the SPL advances into Europe to have some success. Otherwise, all involved in the Scottish game are hurt.
As we already know, those running Scottish club soccer are focused on tinkering with format. They've decided to reduce the number of teams in the Premier League to ten while revamping the next tier down as a 12-team league. The main impetus would appear to be a better package for broadcasters interested in the Premier League, and it needs a final nod from the clubs next month to be made official. The competitive impact is another issue entirely.
Celtic's results and what appears to be their methodology speaks to an off the field competition model. They're developing players and are willing to sell them, the old model of how small clubs funded their operations. Unfortunately, they're pushing this model in a country full of small clubs. If Celtic is the market leader for selling talent at a profit, where does that leave the other Scottish clubs?
That's not going to be answered by revamping the Premier League's structure. It's a much tougher question, touching on the main issue facing the Scottish game. With decades of results showing the smaller clubs can't or won't bridge the gap in the actual table, how do they have any chance in the Scottish money league?
What we're left with is that Old Firm gap. Even when reconfiguring their finances, Celtic and Rangers continue to play with an advantage.
Comments, questions, solutions to problems that have yet to present themselves. Please, tell me all about it.
