67 Hail Hail has examined the level of funds Celtic are expected to retain after the close of the winter transfer window.
Five players arrived at the club overall, all on loan deals, with a number including options to buy.
Ahead of January, 67 Hail Hail understood that Dermot Desmond was holding a significant cash reserve ready for potential use.
A managerial change brought with it a shift in transfer strategy, resulting in no expenditure on permanent signings.
With additional income set to be secured through progression to the next round of the Europa League, our Chief Finance expert Adam Williams analysed the figures to estimate how much money the Hoops are likely to have remaining.
Dermot Desmond seemingly taking a cautious stance with cash reserves
It will surprise no one to learn that Celtic Park still has substantial money in the bank.
However, Desmond and the board appear increasingly wary of future campaigns without Champions League income and are reluctant to commit too much of those reserves.
Williams explained that the funds are likely accruing interest and that a sizeable war chest remains available if required.
He told 67 Hail Hail: “There is nothing wrong with generating a cash surplus. There are a lot of clubs who are in big trouble because, while they have increased their revenue several times over, they immediately burn that cash – plus further subsidies from the owners – on wages, transfers and agents’ fees.
“However, what we’re seeing at Celtic is something different. The ownership’s argument, as far as I can tell, is that they need their cash reserves to be strong for years when they don’t qualify for the Champions League. That’s a very fair point, but equally you’re unlikely to regularly qualify for the Champions League if you don’t adequately strengthen the squad. Having that squad churn and generating regular player sale profits is important, yes, but they don’t need to be a so-called ‘selling club’ because they generate consistent operating profits before player trading almost every year anyway.
“They had £77m in the bank per the last set of accounts. They are generating some interest on that cash, but they are also paying a lot more proportionately in tax. Then, you have dividends paid to shareholders. That’s not a huge expense, but it does make a difference.
You could forgive the hoarding of cash if Celtic were doing well on the pitch, but they aren’t. There are very few managers, sporting directors and executives who can turn around a club through some miracle of alchemy – at the end of the day, change almost always requires further investment as well as an accompanying re-think of strategy. That kind of vision is in short supply at Celtic.
“In terms of what their cash balance will be after the January transfer window, you need to consider a few things. Yes, they have less European revenue this season, but I think they will also have spent less on infrastructure after two consecutives years of pretty high spending in this department. It’s difficult to estimate cash flow without seeing how transfers in and out of the club are structured, but I think they will probably end the season with a slightly lower cash balance than the 2024-25 accounts. I don’t think the drop-off will be too significant – if I had to put a number on it, I’d say £70m, depending on what they do in Europe. The board can say that is a testament to their strategy of hoarding cash, but fans will argue – justifiably, in my view – that a strong balance sheet won’t stay strong if you’re consistently wilting on the pitch.”