Celtic profits up

Celtic have posted a profit before taxation of £17.94m (€26.7m) for the final half of 2006.

Celtic chairman Brian Quinn stressed how important European football had been to the Parkhead club this season.

The Hoops’ journey to the last 16 of the Champions League included three lucrative home games against FC Copenhagen, Benfica, and Manchester United and the Parkhead side benefited further by having Scotland’s share of the television money to themselves.

Celtic were knocked out of last season’s tournament in the second qualifying round by Artmedia Bratislava.

Quinn said: “It is in the measures of profitability that Celtic showed the most striking improvement compared with last year.

“Operating profit rose from £74,000 (€110,000) to £11.9m (€17.7m); and after taking account of gains on player transfers of £7.1m (€10.6m), profit after interest and taxation amounted to £17.9m (€26.7m).

“The corresponding figure a year ago was a loss of £1m (€1.48m).

“This turnaround in our financial performance demonstrates in the most vivid way the importance of European football to clubs playing outside the leading five European countries, but it is also a testament to the professionalism of our executive team.”

After showing a loss three years go despite reaching the UEFA Cup final, Quinn revealed how a new bonus structure put in place has helped increase operating costs by 8.5%.

He said: “Operating costs as a whole rose by 8.5%, unsurprising in the light of the increased activity for the company on almost all fronts.

“The bulk of the increase occurred in payments to the playing and football management teams as bonuses for domestic and European competitions earned under a new remuneration scheme took effect.

“We believe this new scheme will establish a better relationship for both players and club between pay and performance, enabling us to control costs more effectively and rewarding players for the success on the field.”