Celtic released their financial results for the year ending June 2014, announcing a pre-tax profit of £11.17 million.
Despite revenue dropping by 14.6% – in part due to the club reducing the price of season tickets by £100 – Celtic’s profits increased by £1.3 million on last year’s figures with £3.83 million in the bank.
Despite being faced with fans anger over the lack of spending in the transfer window, club chairman Iain Bankier states that the club’s long term stability is more important.
In a statement on the club’s website, he said: “This pleasing set of annual results arise principally because we have enjoyed a second consecutive season winning our home league and participating in UEFA Champions League football, together with an increased contribution from the disposal of player registrations during the year.
“Whilst the short-term objectives of the Company are dominated by our day-to-day success as a Club on the park, the chief role of the Board is to ensure that the long-term future of the Club, and the Company, is secured.
“Ensuring the long-term security of this Club is a process of maximising the potential of the present and managing the risks of the future. The Board is highly conscious of the financial environment in which we play football here in Scotland. The harsh reality is that the total income from broadcasting rights available to the Scottish game is a tiny fraction of what is available to our neighbours in England
“Within this context and in the face of these hard facts, the Board has evolved the strategy that the Club, financially, has to adopt a self-sustaining model.
“In plain words, we have to live within our means.
“We cannot spend money that we don’t have. This is the only way to discharge our fundamental duty to protect the future of this great Club for our fans and for future generations of Celtic fans.
“Obviously, we work very hard to employ the funds we have to allow the manager and the team to produce the best football results they can. We do our utmost to acquire the best players we can within our financial constraints and the manager and the football operation use their best efforts to develop these players along with the talented players produced by our Youth Academy.
“We fully support our Chief Executive and his team as they manage this delicate and often difficult balance. There is no other way to manage a sustainable football club in Scotland.”
Celtic chief executive Peter Lawwell added: “In June 2014 the appointment of Ronny Deila, a young manager with progressive ideas, marked the beginning of a period of transition for the Club. The Board will support Ronny and his coaching team in the transfer market and in the development of the football operation generally.
“The Board’s commitment is clear. The Board will re-invest every penny received back into the Club for the longer term. We will continue to invest, not only in our own academy but also to scour the world for talent to develop and to make a difference at the Club.
“We cannot, however, put into jeopardy the long term future of this Club or its supporters with reckless spending.
“Costs must be managed, particularly given the challenges presented in the Scottish football environment.
“The main objectives for the forthcoming season are success in all three domestic competitions and the UEFA Europa League, playing creative and exciting football, and to build a team for the qualifiers of the UEFA Champions League next year.
“I am confident that, with the strong base that the Club has developed over previous years, and with the continued support of our supporters, partners and colleagues, these objectives will be achieved.”