More woes for Sevco as Celtic’s victory overshadows their “record-breaking” sponsor deal.

I’ve been thoroughly entertained the past few days by some of the Ibrox feel-good stories in the media, clearly intended to shift focus away from Celtic’s record-breaking financial results and the excitement of our first home Champions League game, where we stand a solid chance of a strong showing. This morning, the Daily Record published a classic piece of self-flagellation, and I enjoyed every line.

In the article, they highlighted one of those feel-good stories: the “record-breaking” shirt sponsorship deal Ibrox signed this week.

They’re touting it as one of the biggest deals in their history.

The initial reports conveniently omitted the financial details of the deal. However, it turns out that it’s not substantial. They’ve transitioned from a £1.5 million agreement to one that could, if specific conditions are met, reach a total of £3 million.

You can’t help but laugh at this. These amounts are relatively modest in today’s football landscape, and the idea that they could reach £3 million if conditions are met is almost absurd. Those conditions will likely depend on them achieving something significant in Europe or winning a domestic trophy—neither of which seems probable. They won’t even come close to seeing £3 million.

What really tickled me this morning was Andy Newport’s coverage in the Record. He’s not exactly my favorite writer, as regular readers of this blog know, but he seized the chance to lay out some inconvenient truths for Ibrox fans. The most glaring point? Celtic earned more in UEFA prize money from a single match than Ibrox’s entire increase from the shirt sponsorship deal could net them, even if they meet all their targets.

Last night’s victory brought us £1.75 million. It’s that simple—no complications, just significant implications. This emphasizes the growing gap between the two clubs. Newport also noted that if Ibrox were to miraculously beat Manchester United, they’d only pocket around £560,000 from UEFA. That’s minuscule compared to what Celtic earned last night, and we still have three more home games (plus a very winnable away match) in this tournament.

These are the things that amuse me. I wonder how Ibrox expects to keep pace when we can generate this kind of revenue with such ease. Their commercial department probably worked hard on that deal, but a single win from Celtic has rendered it almost irrelevant.

The Champions League group stages are set to bring us a fortune, regardless of how many points we accumulate, though we have a solid chance of winning plenty. The revenue from this campaign will dwarf anything Ibrox could make, even if they embark on an extended European run. But of course, that’s unlikely to happen.

It’s not just about potential Champions League prize money. Our sponsorship deals are closely linked to on-field success—winning titles, qualifying for Europe, and racking up points. And we’re already doing that. Celtic’s latest financial accounts are alarming for anyone involved at Ibrox, with earnings reaching £124 million, including over £30 million from merchandising alone. That’s staggering. Right now, it’s hard to even guess how much we could earn from this Champions League campaign if everything goes according to plan.

Naturally, our primary focus is on the incredible football from last night—exhilarating, beautiful play that boosted our coefficient, improved our standing in Europe, and delighted every one of us. However, the financial implications are equally important, particularly for teams trying to catch up with us—especially Ibrox, which remains mired in our wake.

UEFA’s financial sustainability regulations are straightforward: clubs can only spend what they earn. Celtic’s earnings from the Champions League and other sources far surpass what Ibrox is pulling in. They’re in a tough financial position, while we’re enjoying strong financial health. The gap between the two clubs, already significant, is poised to widen further by the end of this campaign.

When we can outshine their much-touted shirt sponsorship increase with just one night’s performance, it highlights how challenging it will be for them to catch up. This is why there’s so much chatter about Dave King and new investors—none of it will truly change the situation. UEFA’s regulations are strict; no matter how much a benefactor might be willing to invest, they can’t spend what they haven’t earned.

Newport’s article, while filled with sobering truths, attempted to provide Ibrox fans with a glimmer of hope. He mentioned that now that their legal issues are resolved, the club can begin to rebuild its business side, suggesting that this sponsorship increase marks the beginning of that process.

Sure, it’s a start, but it’s not a substantial one.

The numbers are clear: Celtic has made a more significant advancement with a single victory than Ibrox has with their new sponsorship deal. No matter how much they want to pat themselves on the back, that’s the reality they must confront—and it carries major implications for their future.

Source: https://thecelticblog.com/2024/09/articles-and-features/with-one-single-win-celtic-has-nullified-ibroxs-much-heralded-sponsorship-increase/