Celtic’s Euro nightmare could cost £10m

FAILING to reach the Champions League group stage will cost Celtic a minimum of £10m, according to a report released yesterday.

The Hoops were humiliated 5-0 against Artmedia Bratislava on Wednesday and they appear unlikely to progress further in Europe's premier club competition, with manager Gordon Strachan becoming increasingly under pressure early in his reign.

After competing last season in the group stages where they were guaranteed television money from their matches against Shakhtar Donetsk, AC Milan and Barcelona the drop in income would have a significant affect on their season.

Dan Jones, partner in the Sports Business Group at Deloitte, said: "Entry into the group stages of the UEFA Champions League guarantees each club a minimum of over £6million in UEFA distributions from centrally negotiated broadcasting and commercial deals.

"In addition, each club is guaranteed match-day income from at least three extra home games plus potential commercial bonuses meaning that total revenue per club is likely to be over £10m from the group stages alone."

While Celtic's defeat in Slovakia was the second qualifying-round clash, Manchester United and Everton will be in today's draw in Nyon for the next round.

"These qualifying games are financially the most important in the season for each of the three competing Premiership clubs," Jones added.

If all three clubs reach the group stages, they could generate up to £100m depending on their performance, which could be healthy for the Premiership if the money remains in country.

Liverpool have made an estimated £30m from their victorious campaign last season, and they have already spread £7m of that to Southampton for Peter Crouch.

Paul Rawnsley, a senior consultant in the Sports Business Group at Deloitte, added: "Much of the additional UEFA Champions League revenue has limited direct associated costs meaning it is largely profit.

"Competing is key to the five participating clubs' finances and is likely to represent between 15% and 20% of their overall revenue."

UEFA distributed more than £250m in revenue to the 32 clubs participating in the group stages last season, with a similar amount expected to be distributed in 2005/06.

Meanwhile Artmedia Bratislava coach Vladimir Weiss has backed his players to pile further misery on Celtic boss Gordon Strachan next Tuesday at Parkhead.

"It is still difficult to comprehend what happened last night. I would have settled for a 1-0 victory. But the goals just kept coming. I am proud of my players and they have made a name for themselves and they will do his again next week."