Originally published at: Cut off from board and no money: Former manager delivers the truth on Celtic exit
Former Celtic manager Wim Jansen has gone into the circumstances of his exit from Parkhead, more than 20 years after the event. Jansen hasn’t spoken much about leaving Celtic in May 1998, in a move that surprised many following the glorious season that stopped the ten. The Dutchman was a hero with the Hoops support…
Most big Clubs operate within a certain level of Debt ,what Lawwell the bean counter did was push Celtic towards a zero debt balance in order maximise returns for Investors including himself who in 2018 after changes to his Wage and Bonus arrangements was the benefactor of a new Bonus based on Champions League participation which culminated in him drawing a wage of £2,296,000.
Long Term Performance Incentive Plan (“LTPIP”)
Given the importance of the Chief Executive to the consistent and successful performance of the Company, the Board determined that the Chief Executive shall participate in a Long Term Performance Incentive Plan (“LTPIP”), the purpose of which is to link the performance of the Chief Executive to performance targets which have the objective of improving Company performance, the football performance of Celtic FC and generating shareholder value.
The criteria for the LTPIP to become payable as determined by the Board is that Celtic FC qualifies for and participates in the group stages of the UCL in the applicable financial year. In order to receive payment the participant must be employed by the Company at 31 December 2018. Awards under this arrangement accrue in each applicable financial period and are paid at the first appropriate date following
31 December 2018.
It is my firm belief that the wheels started coming off the wagon at Celtic when the Board realised that with the challenge from Ibrox no longer a threat they could simply down size enough in order to maintain dominance whilst balancing the books.
Only problem with this approach was the guys at Ibrox were willing to Chuck everything at it in order to break that domination.
This culminated in last years disaster of a Season.
An interesting wee caveat on the side is the Annual Allocation of just under £30m in preference shares every year over the past 10 years at the Club?
These shares are used as a loan basis where there is no Interest paid directly back but rather the lender receives Ordinary Shares in return at a percentage of whatever profit has been made by the Club that year.
What is even more interesting however is they don’t specify who has loaned the money or has received those shares?
Is this how Desmond is maintaining his grip at Celtic by increasing his shareholding Annually whilst others are effectively being watered down?
I’ve asked this question elsewhere and as of yet no one has provided an answer to this.
£30m hitting the Accounts every year is not a small amount at Celtic and it’s been going on for over a decade out-with 2 Seasons 2016-18 which just so happens to coincide with Champions League qualifying and Lawwells Bonus scheme.
So the term “Lawwell took years to correct” should really read as he took years to over correct resulting in him making an absolute killing.
He was one of the highest paid CEO’s in the U.K. in 2018.