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Desmond Has A Barrel In The Market Place

Broadsword heard Dermot Desmond’s words last week. and offers some of his own…

In time-honoured fashion Dermot Desmond has went public with his belief/desire/delusion that Celtic and Rangers will be playing domestic football to the South of Hadrian’s wall in the not too distant future.

This is a sample of some of the many words offered by the most robust moustache in European football:

Our concentration is to win the Scottish Premier League. As far as developing other leagues, I think technology is going to change and evolve how football is sold in the future.

‘Before it was a monopoly with either terrestrial TV or satellite TV, now everybody has the ability to broadcast their results and performances.

‘In the future I think there will be different types of negotiations between teams and leagues that will evolve into more competitive leagues in the British Isles.”

Below, is what he looked like whilst sharing these views.

I merely jest. For many, the idea of not playing in Scotland is laughable. The English Premier League considered the matter in 2009; after 34 nanoseconds of deep contemplation they kindly told ourselves and the recent victims of disrespect (it’s amazing what a decent opposition of full timers can do isn’t it?) to do one and build another wall slightly above Carlisle. That killed it then and with the £5 billion TV deal due to kick in there would not appear to be much need or want on the part of the English to entertain this suggestion, again.

Yet, despite the ostensibly ludicrous nature of Desmond’s suggestion it does, in my feeble opinion, merit investigation. Is he on to something here or is it a simple case of Johnnie Walker Blue Label for breakfast?

First up, I’ll look at why it won’t happen as it’s easier to begin with the Status Quo (not Francis Rossi et al). As any budding economist shall tell you the English do not need us. Their clubs are trousering the cash, able to outdo the rest of Europe in the transfer market and a lot of people are enjoying very nice salaries thanks to the league they play in, regardless of whether the club is particularly successful or otherwise. Here’s a wee example – Johnny Evans left Manchester United, a club who will likely compete for trophies over the duration of his career, for West Bromwich Albion, who probably won’t. Yes, regular first team football is very important to a football player but then again, so is £75,000 per week. The introduction of two big clubs would, quite frankly, make a lot of the dross down there shite themselves. They are doing far too well out of the current set up for it to change.

Another reason in the ‘naw’ corner would be the amount of change required, in a short space of time, for both teams to survive in that league. We are a decent level of Europa League standard at best, the other mob are nowhere near that. Granted, when they get promoted they should improve and, with the likely increased competition we may up it a level but the intensity of matches in the English Premier League would pose a very severe challenge to any squad coming in from life in Scotland. There would have to be considerable investment in personnel and, albeit the funds would be there, we are constantly reminded that spending copious amounts of money does not guarantee success, or indeed survival, in that environment. Think of that the next time you laugh at Dick Advocaat – which means the next time Sunderland play.

Following that, and I probably should have stated this first, is our travelling support. Paul the Tim will be tested to his limits as we would could face a midweek tie at Southampton, Saturday at home to Newcastle and then another midweek away to Norwich. I don’t know if this scenario would unfold in November as I’m making it up and the weather is a bit of an unknown quantity at the best of times so I would be reluctant to speculate with regards to that as well. I suppose it would be good news for our support based through the UK but for us Weegies it would be a proper pain in the arse.

Lastly in Team Negative’s Arsenal (see what I did there? Topical) is the matter of European Football. I think we could more or less forget it for at least five years. Most of my favorite moments of the last 15 years have come from watching Celtic take part in some fantastic European encounters. I’ll also admit to taking pleasure in Rangers’ disasters in the same time period. So I would be concerned about seeing these fixtures potentially, disappearing from our fixture list.

So, what about the reasons why? Here’s the main one – £££. We’ll make a shiteload of cash. We are a very marketable brand, a famous club, romantic and iconic history, recognisable strip and Mark McNally played for us. Peter Lawwell’s bonus would have to be calculated by NASA but we would still be coining it in. How would we use this extra TV income? Buy better players? Stick another tier on the Main Stand?  Who knows but the greedy bastard inside of you feels we would should do it.

We would be up against a better standard of opposition on a weekly basis. We should have a more competitive and enjoyable product in front of our eyes. Crowds would rise, season tickets sales would go up and so will ticket prices – I think that’s something to be wary of; if you don’t believe me then try to get a ticket for an Arsenal home game – make sure you have a driving licence, passport and recent utility bill handy before you do so.

Overall, what do I think? Initially I think Dermot has been on the hot sauce but when you take his business dealings into account then it is fair to state that he knows how to polish a turd and roll it in glitter. London City Airport bought for £23.5m in 1995 when that part of town was pretty much shutting down and going into administration as if it were in the early stages of the Apocalypse. Sound familiar? Well, he punted that plane station for £750m in 2006. Just one example, and maybe not a congruous analogy with Scottish football but I think it indicates that Desmond knows where the opportunities are and as he indicates in his comments, the nature of sports broadcasting is undergoing change. Do I want it to happen? To be honest, I’m not really in favour of it, I’d prefer change to happen on a more European level. If we were to join the best marketed league in the world then I’d be concerned that we would become a target for an Abramovich type owner – although it has its flaws I like the structure of Celtic’s ownership, I like having my insignificant votes being counted at the AGMs and I don’t ever want us to go back to a model whereby fans, albeit we are shareholders, are denied a say in the running of the club.

As I said earlier, it may seem like the annual headline gift from Desmond but I wouldn’t be surprised if he’s maybe on to something.

 

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schoosh71
8 years ago

It is my interpretation with what ‘The Mustache’ meant, when being bum-rushed by the MSM, was that. Within the next ten years the big clubs in England will want to negotiate their own TV deals independently from the EPL. It’s their greed that may create an opportunity, for Celtic in joining a newly formed league, not the EPL. Only my opinion.

yestim
8 years ago
Reply to  schoosh71

Schoosh71

I agree, did they not say British league as opposed to EPL??

If it is to happen, IMO we would struggle without putting the club into an enormous amount of debt because the TV money comes at the end of the season. This would rule out the manky mob from the start unless they have another Magic Hat for the finance department.

Would Desmond take this type of gamble? I personally think he would have no option. We would be forced to pay over inflated prices for mediocre players hoping they turn out be superstars, the same as happens in the EPL at present.

Another point to consider is, how desirable would it be to your average Arsenal supporter to welcome Scottish supporters. I know that the Celtic support would welcome with open arms at any town in England, you only have to consider the amount of testimonials we are invited to play in, the other mob new or old are a whole other story.

Personally I would rather see a European league structure with our development team playing in the SPFL weekly. This would allow us to breed our own players whilst competing with the European big guns

Monti
8 years ago

Dermot Desmond is full of shite,,, just like the rest of our board.
It is all about the TEAM on the park,,, it isn’t about Dermot or Lawwell or Bankier, it is all about the players and the strength of our team.

British leagues,, Atlantic leagues,, Euro league. WTF?

Dermot, put your hand in your pocket and back the manager with the kind of money you gave to Martin O’neill.
If you believe in Deila like you say you do, then back him then.

If we have this so called co-op loan of £20m then why don’t you clear it Dermot, if we get into the CL you get your money back and the fans are happy!

Sound.

bob
8 years ago
Reply to  Monti

Off on a rant again Mongti? Careful now people might get fooled into thinking your a Tim but we all know where your allegiances are.

Charlie Saiz
8 years ago
Reply to  Monti

It’s £14.40m Monti.
You asked me the other day to provide some figures regarding money spent under O’Neill and Loans etc well here it is:
***Please note Peter Lawwells wage and Bonus increase between 2004 and 2014***
Annual Reports 2003 -Currrent (Debts)
Financial Summary 5 year up until 2003-(Uefa Cup Final Year)
Turnover
1999-£33.84m 2000-£38.579m 2001-£42.007m 2002-£56.892m 2003-£60.57m
Profit
1999-£6.754m 2000-£4.676m 2001-£871k 2002-£5.37m 2003-£6.73m
(Loss)Profit After Tax
1999- £1.134m 2000-£(3.956m) 2001-£(8.123m) 2002-£(3.039m) 2003-£(11.659m)

1999 Financial Report Link (Pre Martin O Neil)
Debt liabilities £9.94m previous year £13.381m
Turnover £33.84m previous year £27.821m
Operating Profit(loss) After Tax £1.013m pevious year £7.156m
http://www.thecelticwiki.com/page/Celtic+Financials+-+Annual+Report+1999

2000 Financial Report
http://www.thecelticwiki.com/page/Celtic+Financials+-+Annual+Report+2000

Turnover increased by 14% to £38.58m
Operating Profit £4.68m
Operating (loss) After Tax £(5.98m) from1999: £550,000 profit
Operating Costs up by 25.2% to £33.90m (Due to increase in wages)

“At 30 June 2000, the Company’s net debt was £14.5m which was well within the unsecured bank facility agreed in May 2000 comprising of overdraft of £10.5m together with term loans of £21m, of which £6.4m is repayable in equal quarterly instalments from October 2009 until April 2019 and £14.6m is repayable in July 2019.”

2003 Financial Report Link http://wikifoundryattachments.com/BeYA43ScSFJeN%24Lm6y%2B6Fg%3D%3D286171

ƒTurnover increased by 6.5% to £60.57m.
ƒProfit from operations up 25.3% to £6.73m from £5.37m
Loss after tax £11.66m (2002 : £3.04m).
ƒYear-end debt £17.78m (2002: £16.47m).
Gross investment of £5.43m in intangible fixed assets, including the signing of
four new players.

2004 Annual Report
http://wikifoundryattachments.com/VjnQiWMllPK5XY68%24jLttQ%3D%3D1675389

Turnover £69,020m
Operating Costs £64,150m
Profit £4,870
Profit(loss)After Tax £(7.471m)
Net Debt 1st July £17,782m

“Loans repayable by instalments include bank loans of £16.00m (2003: £18.00m). These loans bear interest at London
Inter-Bank Offered Rate plus 1.125%. These loans form part of a
>>>£24.00m loan facility <<which is repayable in equal quarterly
instalments from October 2009 until April 2019 and £16.69m is repayable in July 2019. The Group has the option to repay the
loans earlier than these dates without penalty. The bank loans are secured over Celtic Park."
So in effect we owed the Co-op £24m at this point.

2006 Annual Report (cant find 2005 so using figures supplied in this Report)

http://wikifoundryattachments.com/sy8S1b0VBIedxsj7B9c1AQ%3D%3D2027073

2005 Martin O'Neills final Season
Turnover 2005 £62.17m
Operating Costs £58.07m
Profit (Loss)After Tax £8,706m
Co-op Bank Loan £19.5m

"Loans repayable by instalments include bank loans of £12.00m (2005: £19.50m). These loans bear interest at London Inter-Bank Offered
Rate plus 1.125%. These loans form part of a £24.00m loan facility which is repayable in equal quarterly instalments from October 2009
until April 2019 and £16.69m is repayable in July 2019. The Group has the option to repay the loans earlier than these dates without
penalty. The bank loans are secured over Celtic Park and land at Lennoxtown."
____________________________ . ________________________________

2004 Peter Lawwell Wage–2014 Peter Lawwell Wage
Salary £102,884———-Salary £524,576
Bonus £38,582————Bonus £400,500
Benefits £9,063———-Benefits £17,312
Pension £15,432———-Pension £57,108
Total £165,961———–Total £999,496

Charlie Saiz
8 years ago
Reply to  Charlie Saiz

You can remove that Financial Post Moderator it’s going to be used as a Thread tomorrow bud.

Buckie1967
8 years ago

And downgrading since MON era cause we overspent more money going out than came in and we all know the effect that has on a team. Man utd look good after £300 million plus.

Monti
8 years ago
Reply to  Buckie1967

Buckie,
I refuse to discuss the dead club while talking in general about Celtic’s affairs.
Man Utd either, if you have read my posts in the past, you should have observed that I have never asked Celtic to spend on a dangerous scale, just enough to significantly raise the standards within the team.

Dermot picks and chooses when he plays with his plaything( Celtic), point being, if we can afford the wages of Craig Bellamy and especially Robbie Keane, then why can’t we now?

My whole point is around CL qualification, if we get into the group stages or beyond we are talking £25m
So it makes perfect sense to me to bring in a couple of big signings, not just big but the right signings every summer.
Players who will give the side that extra bit of quality.

Over the last few years Southampton have given us around £35M for three players, how much of that have we spent and is the team stronger?

Jasybaby
8 years ago

If Celtic do go to a British league, does that mean the end of Scottish born players in the team? If the money comes in to buy from abroad then who can honestly say there are Scots born players good enough to make it in the team Celtic would become (top 4?). Celtic would have to drag the Scottish set up, kicking and screaming possibly, into a new era of developing young Scottish players to a level they have not been at for a while. Take the money but it will mean loosing part of the clubs identity. Are we willing to fill the team with mercenaries and loose the possibility of fielding those who love the club?

Charlie Saiz
8 years ago
Reply to  Jasybaby

Great post.

ian
8 years ago

Its never going to happen, i’m glad its never going to happen. Football is a lot about money but thankfully its not all about money, teams have to work their way to the top by winning promotion. Imagine how the other teams would feel if two Scottish teams just waltzed into the premiership because they’ve got a big support and tv companies would love it. Pretty sure it would take decades to sort out the legal challenges and by then Scotland would be an independent country and FIFA would be even less likely to allow it (not that they would now). The NFL has no relegation and no promotion just franchises, if you got the dough you can come, truly appalling and not a sport. Apart from the MK Dons Wimbledon scandal (which the fa will never allow again)football is still a sport, yes money is needed to succeed but you still need to win.

Frankie
8 years ago

Dear Ralph Dermot didn’t accumulate his fortune by taking the narrow view that goals and wishes cannot be achieved. If I were you I would take very seriously what he says, he’s no mug you know and he has a bank balance to prove so. P.S Monti’s post is typical of the ignorant so called fans, you know the one’s that don’t attend games and think they know how to run a business.

Devoy45
8 years ago

If we left the Scottish League, we would probably struggle to ever get a European place under the current set up. We would be lucky to get into the Europa League. However, we would get to play Man City, Man Utd, Chelsea, Liverpool and Arsenal which would make us underdogs for once and I would enjoy that. I don’t see it happening though because we aren’t welcome. The FOD2 have no chance, ever, whatever.

Celtic125
8 years ago

Maybe Dermot was using it as cover. Catalonia is about to make a decision at a national level that is going to create change.

Monti
8 years ago

Thanks Charlie S

Tyneside No1
8 years ago

If it did happen we would struggle in the early years which would be my worry, there are some great old clubs which have fallen from grace not to recover, I would say best to join a British/European league rather than move south and join English leagues.

Bill
8 years ago

The financial strength of the EPL is based on the strength of the collective bargaining rights, in time and I would say 10 years tops it will be its greatest weakness since the platform for broadcast rights will change and the big clubs won’t get the daft money they get from SLY anymore due to piracy. Everyone knows how to pirate SLY and like many I have walked because it’s expensive and bad for Scottish football. In my case to BT since we all need Internet and they give champions league but they are free on the Pirates anyway. I can only see a TV season ticket for the hoops at a fair price as the way forward since most fans would not pirate their own club if rights are fair. This will cripple all bar the top 6 in the EPL who live far beyond their means but would also boost all the larger clubs in Scotland who would make far more than the present deal. It’s only a pity that it could if they are not 5th or 6th rangers by this time save them too

macgavigan
8 years ago

I wrote after the Referendum that Scotland football would be politicised. The result — AND WHAT SHOULD-HAVE-BEENS — scared the politicians down below. They know what is coming and already are working on schemes to thwart the inevitable: The first one is to adopt the word ‘british’ in public as opposed to England: the second is Celtic and Rangers — and their support being part of the EPL and therefore, a blow to Scotland’s independence. So what would you rather have? Playing Swansea or an independent Scotland. I know what I want.

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