Originally published at: Celtic board need to remember it's the supporters keeping finances healthy
So, Celtic have released their annual results over the last year to supporters, and the club is in a healthy financial state [Celtic FC]. With player sales, the return of supporters and brand new faces across the club, it’s certainly the most eventful annual report we’ve seen in a fair while. However, there’s a lot…
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Whilst our Finances have been in relatively good health for almost a decade now bar the past 18 months where all Clubs have been impacted as a result of a Global Pandemic and all that that entails it has come across my attention that there is a periodic raising of large Captial though the issue of Preference Shares at Celtic.
Statement of capital following an allotment of shares on 28 August 2020
GBP 29,919,850.96
Statement of capital following an allotment of shares on 30 August 2019
GBP 29,919,294.12
Statement of capital following an allotment of shares on 31 August 2016
GBP 29,917,787.5
Statement of capital following an allotment of shares on 1 September 2015
GBP 29,917,140.16
Statement of capital following an allotment of shares on 1 September 2014
GBP 29,916,639.26
Statement of capital following an allotment of shares on 2 September 2013
GBP 29,916,053.79
Statement of capital following an allotment of shares on 31 August 2012
GBP 29,913,989.75
Is there a £30m hole in the Celtic Accounts that needs filling every year and could it be Dermot Desmond is the man filling it whilst obviously receiving interest/dividends on these Shares?
There must be a valid reason as to why there is a necessity to continually raise the same amount almost every year?
Perhaps someone with a deeper knowledge of the use of Preference Shares could expand on why Celtic evidently have to do this?
My guess is it’s cheaper than borrowing from the Bank and there’s less risk attached to borrowing from your own?
I’ve asked elsewhere but drawn a complete blank from someone who regularly claims to be in the know about Celtic and Rangers finances 
So I’m putting it out there to see if there is anyone who has more knowledge on the subject.
Note that there is a gap of two years 2017-18 which conveniently ties in with a period of good health with Champions League Qualification under Rodgers.
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Also note that this goes back to 2010 and the appointment of Mowbray/ Lennon era where Celtic adopted a new approach to player acquisition and players sales.
This after a period of belt tightening and Loan clearance post O’Neill and through the Strachan era where although he took us to the last 16 of the CL twice the Champions League Bounty was far less than in the current era.
If you remember back then Lawwell used to make a big thing of Bank Debt Clearance and it just seems to me that all is/was not as it seems.
A great deal is made of the state of the Ibrox Finances and rightly so because they still don’t have a viable source of lending from a Bank amd are continually needing internal financing to service the losses they have encountered every year since inception in 2012 post Liquidation of Original Rangers.
The fact Celtic have been reliant on this almost £30m a year fund raiser whilst enjoying periods of real prosperity due to player sales etc strikes me as a bit odd.
It could be a legitimate well known Financial approach to lending money on the cheap by big business but does seem rather odd to be banking £20-30m and still have a necessity to do it?
My gut tells me that whoever the kind benefactor is (Desmond perhaps?) they are happy enough to receive the Annual interest in the form of Ordinary Shares thus maintaining their grip on all things Celtic whilst simultaneously diluting/weakening the grip of others?
Ie you are diluting the overall shares whilst compensating any loss of your own portion simultaneously.