SPL: Fans offered share in Celtic

Celtic today announced a £25million shares issue as the club prepared for a Champions League campaign and a Scottish Premier League title defence.

Chairman Brian Quinn hinted that a significant amount of the cash raised would be handed to manager Martin O’Neill to bring in new players.

But chief executive Ian McLeod made it clear other items were also high on the agenda, including the need to set up a youth academy and training ground to rival Rangers’ new £14million complex in the north of the city.

The new shares, which will be made available in the Republic of Ireland as well as the UK, will cost £1.25 each and are designed to convert into Ordinary shares in September 2007.

McLeod said: ‘‘Success on the field is the key to providing us with the opportunity to drive the club forward.

‘‘Future revenue, improved facilities, expanding our brand and raising our profile in Europe are all benefits to Celtic which flow from that success.

‘‘The benefit of a strong youth policy, supported by the investment in quality facilities, is a proven formula which Celtic need to pursue.

‘‘The share issue will provide vital investment to kickstart an improvement in the development of homegrown football talent.

‘‘We will also be able to invest in developing our multimedia capacity, improving merchandising opportunities and enhancing stadium facilities, each of which provides potential for increasing Celtic’s revenues and bringing about future investment in building the team’s potential.

‘‘But above all, the share issue gives Celtic supporters in the UK and Ireland the opportunity to own part of the club, further reinforcing our position as one of the best-supported teams in the world.’’

Quinn revealed that if the share price dipped below £1.25 by the time of conversion then each share would convert into more than one Ordinary share.

Each new convertible preferred share carries a fixed dividend of 4% plus a participating dividend that could rise to 65 if Celtic make an impact in the Champions League over the next few seasons.

Quinn said: ‘‘Our strategy of investing for the future success of the team and the club has got off to an excellent start.

‘‘Under the inspirational leadership of Martin O’Neill, we have enjoyed great success this season.

‘‘Qualification for European competition and the renewal of Henrik Larsson’s contract demonstrate that the foundation has been laid for further success in coming seasons.’’