Celtic FC: A prudent but progressive transfer policy

Article by Celtic Correspondent Tim Molloy

As Celtic battled hard to overcome tough opposition on Tuesday evening; Celtic fans were treated to an exceptional performance from a recent summer signing.

The silky ball control of Virgil van Dijk was great to watch and refreshing for most Celtic fans who have become used to central defenders over the years lacking any type of comfort on the ball. Van Dijk is now beginning to be converted into the next gem, unearthed by an intelligent scouting team headed by John Park.

The policy is to buy easy on the pocket, young and physically powerful, then to sell expensive. Circumstances these days dictate no other transfer policy would be economically viable. Prior spending of a decade ago of 5 million for Sutton, 4.5 million for Lennon etc, all in the same year with bumper wages would be impossible in today’s climate. In 2001 Celtic had a wage bill in the top 5 in Britain; today a club like Southampton can double a Celtic player’s wage without a thought.

Peter Lawwell realised the debt figure created by this huge wage bill in the early 00’s needed addressing, commercial revenue from Scottish football is now non- existent, things had to change.

Celtic is now operating with astuteness in the transfer market. It is working and will continue to work. Lennon and his team don’t receive the credit they should in this vicinity. Taking on the finest teams in Europe for the last few seasons and holding their own, whilst losing top personnel along the way isn’t easy. A quick look at some key personnel outlays shows the vast sum of revenue Lennon has raised for the club is nothing short of exceptional. Talents such as Ki, Wanyama, Hooper and Wilson have realised profits in access of 22M for the club.

The Celtic transfer structure is not original, far from it. Ironically Tuesday’s opponents, Ajax have long operated an efficient transfer policy. It is focused upon investing in youth to sell on around Europe.

The Portuguese big three have been at the forefront of such transfer systems. Porto especially, realising some huge net transfer fees over the decades. Porto has realised a staggering 400M in profit from 2003 and consistently won European and domestic honours. Here’s just a couple of examples; Deco purchased for 100K sold for 12.5M, Pepe bought for 750K sold for 20M, the list is endless.

The Portuguese clubs which have implemented these systems have one distinct advantage, their ability to tap into South American markets before the British associations get close, the benefit of past colonies and all that. But Celtic are learning, and doing so quickly.

The Celtic acquisition team are now literally probing the planet. Modest transfer markets in Scandinavia, Eastern Europe and beyond have become the areas of recruitment to find talent capable of wearing the hooped jersey, whilst improving the finances for future years to come. In these markets talented young players can be enticed to join a huge club competing in Europe’s show case tournament, without Celtic paying the premium that they would need to for British players. Playing in the spotlight brings attention from the filthy rich premier league, where the player could end up if they get it right.

The balance sheet in the east end of Glasgow has improved substantially with this policy and with another windfall of multi-millions to be realised post this seasons European campaign Celtic’s closest domestic rivals are as far behind as ever. Hearts on their knees and Rangers; well one only has to open a newspaper to read about their latest financial disaster.

Lawwell is a top accountant and a pragmatic businessman, driving down costs and rebuilding Celtic’s bottom line. Of course the policy is not perfect; just say the name Mo Bangura!

As well as the eventual poor signing the prudence of the policy has frustrated Celtic fans on numerous occasions. The inability to purchase Alfred Finnbogason, Heerenveen’s goal machine because the asking price crept north of four million is one of the biggest frustrations to date.

When you review the signings such as Forster, Kayal, Izaguirre , Wanyama, Lustig, Hooper and Commons to name just a few all purchased for not much more than 7 million you simply have to admire the club’s shrewdness in the market. Lennon has played a blinder and maybe he’s the ace behind it all.

By Tim Molloy @TM_Sport_Agent

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