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The Board - general discussion (including Res 12); notes from the AGM
Topic Started: 15 Jul 2014, 12:03 AM (1,414,893 Views)
brianlara67
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Getting on a bit
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I would question SPLOB's package on two fronts:

1 his package in relation to company turnover is very high. If the CEO of the company I work was paid the same as Pedro as percentage of turnover they would be on a package of £430 million. Funnily enough they are not

2 and what skills exactly to you require to be a CEO of a football club? Set up the business model? Well it is a football club. Where your company operates is set in stone, You can't exactly decide to move into the German market and play football there. Or decide to become a NFL team. You can't really diversify into restaurants. Nope you are football club and the success of the company depends on success on the field which requires employing the right players - which isn't your remit (who knows in Pedro's case) Nope that is down to someone called the manager. Ah but you are responsible for appointing said manager. You could hire a head hunting agency to do that. In short you don't have to be a CEO genius to be a football club CEO.

And yet our CEO gets paid a million a year to manage a business turning over £65 million.
Edited by brianlara67, 12 Sep 2014, 08:27 PM.
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murphio
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Could start a row in an empty room
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herbert viola
12 Sep 2014, 05:46 PM
Zurawski 7
12 Sep 2014, 04:17 PM
Celtic PLC have today announced results for the year ended 30 June 2014.

http://www.celticfc.net/news/6656

65m turnover even with player sales and champs league. 60m to pay the wages and keep things running
thats not correct. The turnover is for revenue generating activities, which player sales is not. The profit on player sales is included below profit from trading, and the book gain from that was 17m (which isnt cash, as actual cash proceeds were only 5.6m), it has nothing to do with turnover.

Total net profit was 11.8m, up by 1.5m on the prior year. And that includes a 4m write-off from buying duff footballers by our CEO, sorry DOF, sorry, Chief Scout, sorry, Neil Lennon.

:thumbsup: Any reason why we only received 5m in cash from a 17m gain on player sales? Seems a small amount.
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herbert viola
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Retired and now a BT Sports pundit
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murphio
12 Sep 2014, 08:37 PM
herbert viola
12 Sep 2014, 05:46 PM
Zurawski 7
12 Sep 2014, 04:17 PM
Celtic PLC have today announced results for the year ended 30 June 2014.

http://www.celticfc.net/news/6656

65m turnover even with player sales and champs league. 60m to pay the wages and keep things running
thats not correct. The turnover is for revenue generating activities, which player sales is not. The profit on player sales is included below profit from trading, and the book gain from that was 17m (which isnt cash, as actual cash proceeds were only 5.6m), it has nothing to do with turnover.

Total net profit was 11.8m, up by 1.5m on the prior year. And that includes a 4m write-off from buying duff footballers by our CEO, sorry DOF, sorry, Chief Scout, sorry, Neil Lennon.

:thumbsup: Any reason why we only received 5m in cash from a 17m gain on player sales? Seems a small amount.
its not really murphio. It works like this:

- you buy a guy for a set fee, say 4m. You amortise the value of that contract over its term, of 4 years, so charge "amortization" to income of 1m per annum. (youll also pay it in instalments over the next 4 years).
- at end of year 3, youve 1m remaining on the balance sheet, as an intangible from player contracts.
- you then choose to sell the guy for 10m, and agree a payment schedule for the fee with another club.
- if its a 4 year deal, with no contingency, theyll pay you 4 or 5 fixed instalment amounts over the term of his new contract of 4 years, some upfront, some at the end of year 1, 2, 3 etc.
- so you might end up getting pure cash upfront of say 2.5m (1/4 of 10), but your profit on sale will be 9m. (10m sale price less 1m value remaining on his existing contract).

That explain it? :ponder:
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Henry Trumpington
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Occasional Substitute
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brianlara67
12 Sep 2014, 08:24 PM
I would question SPLOB's package on two fronts:

1 his package in relation to company turnover is very high. If the CEO of the company I work was paid the same as Pedro as percentage of turnover they would be on a package of £430 million. Funnily enough they are not

2 and what skills exactly to you require to be a CEO of a football club? Set up the business model? Well it is a football club. Where your company operates is set in stone, You can't exactly decide to move into the German market and play football there. Or decide to become a NFL team. You can't really diversify into restaurants. Nope you are football club and the success of the company depends on success on the field which requires employing the right players - which isn't your remit (who knows in Pedro's case) Nope that is down to someone called the manager. Ah but you are responsible for appointing said manager. You could hire a head hunting agency to do that. In short you don't have to be a CEO genius to be a football club CEO.

And yet our CEO gets paid a million a year to manage a business turning over £65 million.
Celtic's annual turnover is roughly equivalent to 2 Tesco Extra's. In relative business terms, PL's salary/bonus is obscenely generous.
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murphio
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Could start a row in an empty room
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herbert viola
12 Sep 2014, 09:37 PM
murphio
12 Sep 2014, 08:37 PM
herbert viola
12 Sep 2014, 05:46 PM

Quoting limited to 3 levels deephttp://www.celticfc.net/news/6656ur CEO, sorry DOF, sorry, Chief Scout, sorry, Neil Lennon.

:thumbsup: Any reason why we only received 5m in cash from a 17m gain on player sales? Seems a small amount.
its not really murphio. It works like this:

- you buy a guy for a set fee, say 4m. You amortise the value of that contract over its term, of 4 years, so charge "amortization" to income of 1m per annum. (youll also pay it in instalments over the next 4 years).
- at end of year 3, youve 1m remaining on the balance sheet, as an intangible from player contracts.
- you then choose to sell the guy for 10m, and agree a payment schedule for the fee with another club.
- if its a 4 year deal, with no contingency, theyll pay you 4 or 5 fixed instalment amounts over the term of his new contract of 4 years, some upfront, some at the end of year 1, 2, 3 etc.
- so you might end up getting pure cash upfront of say 2.5m (1/4 of 10), but your profit on sale will be 9m. (10m sale price less 1m value remaining on his existing contract).

That explain it? :ponder:
Yeah I understand how the charge to the profit and loss column works... but the small amount of cash received seems low when you consider the market we sold these players to. Less than a third of cash up front?
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Bawman
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Class is permanent.
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murphio
13 Sep 2014, 12:07 AM
herbert viola
12 Sep 2014, 09:37 PM
murphio
12 Sep 2014, 08:37 PM

Quoting limited to 3 levels deephttp://www.celticfc.net/news/6656ur CEO, sorry DOF, sorry, Chief Scout, sorry,
its not really murphio. It works like this:

- you buy a guy for a set fee, say 4m. You amortise the value of that contract over its term, of 4 years, so charge "amortization" to income of 1m per annum. (youll also pay it in instalments over the next 4 years).
- at end of year 3, youve 1m remaining on the balance sheet, as an intangible from player contracts.
- you then choose to sell the guy for 10m, and agree a payment schedule for the fee with another club.
- if its a 4 year deal, with no contingency, theyll pay you 4 or 5 fixed instalment amounts over the term of his new contract of 4 years, some upfront, some at the end of year 1, 2, 3 etc.
- so you might end up getting pure cash upfront of say 2.5m (1/4 of 10), but your profit on sale will be 9m. (10m sale price less 1m value remaining on his existing contract).

That explain it? :ponder:
Yeah I understand how the charge to the profit and loss column works... but the small amount of cash received seems low when you consider the market we sold these players to. Less than a third of cash up front?
Is say that's about right. Most clubs don't pay with large wads of cash because that's not how they bring it in.
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herbert viola
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Retired and now a BT Sports pundit
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Bawman
13 Sep 2014, 01:51 AM
murphio
13 Sep 2014, 12:07 AM
herbert viola
12 Sep 2014, 09:37 PM

Quoting limited to 3 levels deephttp://www.celticfc.net/news/6656ur CEO, sorry DOF, sorry, Chief Scout, sorry,
Yeah I understand how the charge to the profit and loss column works... but the small amount of cash received seems low when you consider the market we sold these players to. Less than a third of cash up front?
Is say that's about right. Most clubs don't pay with large wads of cash because that's not how they bring it in.
agreed Bawman. Ive seen a few contracts, and payments are generally straight line over the players new contract.

if you think victor was say 12m, thats 3m per year, plus 1.25m for Hooper plus about 500K for Wilson - that comes close to the money they have disclosed in the cash flow statement of just over 5m.
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Klepton
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Considering retirement
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More of the "we're being financially prudent by pissing £15m of Champions League money away" patter :ffs:
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Wee Red
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not too serious
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A lack of leadership, effort, foresight, expedience, and professionalism, failed to fill the Hooper hole ahead of Legia and even Maribor.
This was negligence on both football and business fronts, then there was the amateur hour spin to cover this massive and damaging folly.
Seems like he thinks that his remit is only to sell efficiently to balance the books, to hell with footballing success or full happy stadiums.
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remy mcswain
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Big in Canada
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It is a sad fact that the two biggest crowds at CP this season will be Scotland games.

Still, Peter an add the ground rental to operational highlights.
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OBK
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Don't think the board are doing a bad job!
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Bobby Peru
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The Maestro

remy mcswain
15 Sep 2014, 08:44 AM
It is a sad fact that the two biggest crowds at CP this season will be Scotland games.

Still, Peter an add the ground rental to operational highlights.
Depends how the cup draws go :ph43r:
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Milton
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Bobby Peru
15 Sep 2014, 04:35 PM
remy mcswain
15 Sep 2014, 08:44 AM
It is a sad fact that the two biggest crowds at CP this season will be Scotland games.

Still, Peter an add the ground rental to operational highlights.
Depends how the cup draws go :ph43r:
It's funny because it's true. :lol:
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Belgrano
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From http://www.celticfc.net/news/6656

Operational Highlights:
*Winners of the SPFL.
*Participated in the UEFA Champions League, having played 6 home European matches (2013: 6).
*28 home matches played at Celtic Park (2013: 30).
*Scottish Cup Final and SPFL League Cup Final held at Celtic Park.
*The Celtic Way officially opened in May 2014.
*Successful hosting of the Commonwealth Games opening ceremony

So 3 of the 6 "operational highlights" from last season involve a stadium that the PLC inherited. And, from the other 3, 1 involves fulfilling our home league and cup fixtures, 1 involves a competition that we used to qualify for, and 1 for winning a one-horse league?

At least the "financial highlights" (i.e. selling off any talented players we have) were enough to justify Lawwell taking home another £1m this year again, eh?
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popeyed
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Climbing walls while sittin' in a chair.
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Belgrano
15 Sep 2014, 06:00 PM
From http://www.celticfc.net/news/6656

Operational Highlights:
*Winners of the SPFL.
*Participated in the UEFA Champions League, having played 6 home European matches (2013: 6).
*28 home matches played at Celtic Park (2013: 30).
*Scottish Cup Final and SPFL League Cup Final held at Celtic Park.
*The Celtic Way officially opened in May 2014.
*Successful hosting of the Commonwealth Games opening ceremony

So 3 of the 6 "operational highlights" from last season involve a stadium that the PLC inherited. And, from the other 3, 1 involves fulfilling our home league and cup fixtures, 1 involves a competition that we used to qualify for, and 1 for winning a one-horse league?

At least the "financial highlights" (i.e. selling off any talented players we have) were enough to justify Lawwell taking home another £1m this year again, eh?
Look, the league hasn't got a sponsor and the season ticket prices were frozen. Let it go.
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ChristyMoore
Considering retirement
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Can't find the GB thread, but is that their section sorted? A boy who is pretty close to them mentioned something about it today. I may have picked it up wrong though.
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seaneh
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Considering retirement
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ChristyMoore
15 Sep 2014, 10:39 PM
Can't find the GB thread, but is that their section sorted? A boy who is pretty close to them mentioned something about it today. I may have picked it up wrong though.
They'll be in 111 on Sunday :thumbsup:
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thegreenwalrus
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Perhaps not a popular viewpoint, but I think the board and Lawwell are generally doing a very satisfactory job.
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Ess
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Abooganza!
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thegreenwalrus
15 Sep 2014, 11:09 PM
Perhaps not a popular viewpoint, but I think the board and Lawwell are generally doing a very satisfactory job.
They have a lot of dissatisfied customers
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prettygreen
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and white upon my chest
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Ess
16 Sep 2014, 08:29 AM
thegreenwalrus
15 Sep 2014, 11:09 PM
Perhaps not a popular viewpoint, but I think the board and Lawwell are generally doing a very satisfactory job.
They have a lot of dissatisfied customers
which would normally lead to someone accepting the blame or change of personel in most other jobs
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