PLAYER sales have helped Celtic record an annual pre-tax profit of £500,000 compared to a loss of almost £4 million the year before.
Celtic plc said a gain of £12.6 million from player transfers helped mitigate the fact they did not qualify for the lucrative group stages of last season's UEFA Champions League. That is a significant rise from the £6.8 million made the previous year.
The rise in profit was mainly driven by the £13m sale of Virgil van Dijk to Southampton.
It marks a predicted dip in financial performance in the second half of the year ended June 30.
The Scottish Premiership champions said in February that with the help of the van Dijk sale, pretax profits for the first half of the year had nearly doubled to £11.7 million.
Peter Lawwell, the club's chief executive said its performances in both domestic cup competitions and in European competition were poor, as it failed to reach the domestic cup final and failed to qualify for the Champions League.
"For a club like Celtic, operating in a market where television values have fallen significantly behind our neighbours across Europe, qualification for the group stages of the UEFA Champions League is of paramount importance," he said.
"The financial rewards allow for investment in the playing squad and physical assets, but moreover, the prestige of participating in the premier club competition in the world reinforces the reach and importance of the club to so many people around the world," he added.
"Fundamentally, Celtic is a Champions League club; our infrastructure and continued investment reflect that.
"At a time when the direction of travel in European football is towards elite level clubs, we must remain at the forefront of developments in the game domestically and across Europe. "We continue to work tirelessly on seeking to improve the football environment in which the club operates."
He added: "Nor is the continued success of Celtic to be taken for granted. It requires hard work and commitment, both on and off the field."
"I know that Brendan is committed to bringing success to the club and the board will support him in that effort," said Mr Lawwell. "Our objectives during this season remain success in all three domestic competitions and in the UEFA Champions League.
The accounts show the club paid out £715,000 in compromise payments for the early termination of player contracts as well as former assistant manager John Collins and a number of support staff.
A profit of £4.7m was made on merchandising, a small increase on the previous year and its year-end cash at bank figure was £3.6m.
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