‘Smarter spending’ sees Celtic score €18m profit

CELTIC chief executive Peter Lawwell claims a policy of “smarter spending” lies behind the Parkhead club’s financial rejuvenation.

The SPL champions posted a profit before taxation of £17.94 million (€26.6m) for the final half of 2006.

The interim results compare to a loss of £960,000 (€1,427m) in 2005.

When the Hoops reached the final of the UEFA Cup in 2003, they still lost almost £8m (€11.8m).

However, a restructuring of the club by Lawwell, which included introducing incentive-based contracts and accepting lucrative pre-season friendlies abroad, in addition to a successful Champions League campaign this season, has, according to Lawwell, put Celtic on “solid foundations”.

He said: “Over a number of years, we made significant losses but now we have a solid foundation.

“In the year that we got to Seville, we lost £7.8m (€11.5m) and the turnaround since then has been for various reasons but mainly increasing the income and controlling the costs.

“The European run this season has played its part but you also have to include others things, such as the pre-season tours and transfers.

“But, during that time, we have still managed to recruit big name players such as Shunsuke Nakamura, Jan Vennegoor of Hesselink and Thomas Gravesen.

“We will always have three or four of big-name players at the club because the Celtic fans demand it.

“But we are spending more smartly.

“And incentives, in terms of players being paid for appearances, is in a bigger percentage of contracts than previously.

“We have spent £13m (€19.3m) on players over the two periods second half of 2005 and 2006.

Lawwell acknowledged the importance of Celtic’s Champions League run this season to the club’s encouraging financial upswing.

The Parkhead side failed to qualify for the group stages last year after losing in the second qualifying round to Artmedia Bratislava.

However, manager Gordon Strachan has guided the Hoops to the knockout phase for the first time, where they will take on AC Milan in the last-16 first leg at Celtic Park next week.

UEFA have confirmed Celtic’s Champions League tie against AC Milan will be played at the San Siro Stadium on March 7 in front of a limited number of spectators. The exact capacity is still to be determined but there will be provision for 4,500 seats reserved for Celtic fans.