Some clubs will have been very nervous as they learn about the Financial Fair Play changes UEFA plan to introduce in a radical overhaul of their rules. But it looks like Celtic need not worry and look to be in a strong position already with regard to the planned changes. One would imagine there might be greater worries over at Ibrox though.
One of the key rule changes from UEFA is that clubs must not spend in excess of 70 per cent of their total revenue on transfers, agents fees and wages. Clubs already incurring hefty losses on a regular annual basis will likely be worried by that change.
Even if clubs in those circumstances seek out players on free transfers or low fees, they often rely on offering very attractive wages package and signing bonuses to secure the deals.
As reported by Football Insider, financial guru Kevin Maguire has been looking at Celtic and their finances to see how these changes might impact them and he seems very positive on the club’s position, as he said:
“Celtic are in a very strong position with regards to the new rules.
“They don’t have issues in terms of wage control. Celtic’s wages to turnover ratio in the three years pre-Covid was 58 per cent, 58 per cent and 67 per cent.
“They have three years to taper their outlay accordingly as well because the new rules, while radical, are being phased in gradually.
“Uefa’s calculation also takes into consideration not the whole staff, but only the playing staff and the first-team coach.
“Celtic are certainly in a strong position to deal with that. They don’t often make losses either, so there won’t be an issue there.”
Celtic handed boost amid UEFA rule change plans
As Maguire’s views illustrate, there’s plenty for the Celtic board to keep an eye on and manage carefully when it comes to costs and revenue. In addition to their ongoing careful control over costs, the Hoops will also be able to keep within that 70% threshold by securing an increase in total revenue.
There are still games to be played and points to be won for Celtic to secure the Scottish Premiership title this year. But if that happens then automatic qualification for the Champions League group stage should hopefully follow.
That alone will ensure a significant boost to revenue and help with planning a summer recruitment approach which will strengthen the squad and balance the books within UEFA rules.
This article was originally posted here