Celtic Football Club saw its revenue fall by 16% per cent last season as the pandemic had an immediate impact on their finances.
The club made a pre-tax profit of £100,000 – down from £11.3m the previous season – after income fell to £70m.
Operating expenses were also down by seven per cent to £80.5m while the club made a £3.5m profit on transfers thanks to Kieran Tierney’s move to Arsenal.
Celtic still had £18m cash, net of bank borrowings, at 30 June, and they have increased their credit facility to £13m in case needed but reported that their finances were secure in the short to medium term.
However, chairman Ian Bankier admitted they were “still grappling with the challenges the pandemic presents including the near-term uncertainty”.
Bankier added that Covid-19 has had a “detrimental effect” on the financial results.
He said: “The governmental restrictions imposed to protect public health continue to have a negative financial impact on the football industry.
“Our hard work and measured approach to investment in recent years has provided a degree of protection, but given the inherent uncertainty of the current environment, we must proceed and invest with a degree of caution.
“Nevertheless, we remain confident in the fundamentals of our football model and since the balance sheet date we have strengthened our player squad.
“Following the year end we invested in the registrations of Vasilis Barkas, Albian Ajeti, David Turnbull and brought in loan signings Shane Duffy and Diego Laxalt. We also extended the loan of Mohamed Elyounoussi.
“Moreover, we have retained all of our key players from last season.”
