Reid accepts responsibility for the appointment of Neil Lennon as manager

Celtic chairman John Reid insists the club remains financially secure despite posting debts of £5.85m to the year ending June 2010, up from £1.5m.

Turnover fell 15% to £61.72m and the club made a loss of £2.13m, due to the costs associated with hiring and firing Tony Mowbray's management team.

"We had a false start last year and it was disappointing," Reid told BBC Scotland. "But it's sustainable debt."

"It's not out of control or anything of that nature."

Celtic sacked Mowbray following a 4-0 defeat at St Mirren in March, having given him almost £14m to invest in players.

We have players we would like to get, most of them we will get. But our fundamental objective is to win the league, as it is the gateway to Europe and the future Celtic chairman John Reid

Neil Lennon was placed in temporary charge of the club and won the remaining eight league matches, before being appointed to the post full-time in June.

The former Celtic captain has since spent about £10m on new players, although the sale of Aiden McGeady to Spartak Moscow netted the club around £9.5m along with income derived from the sales of Artur Boruc and Stephen McManus.

A lack of top-flight European football last season coupled reduced season ticket sales is also another likely factor in the drop in income as Celtic counted the cost of failing to reach the lucrative group stages of the Champions League.

"We invested a lot in players last year, we had a new management team and we hoped that would be the beginning of a rebuilding," said Reid.

"But we now start again, and I have to say that we have a renewed vigour and optimism created by Neil Lennon.

"There's an urgency and passion about the club, so despite the difficulties, we know what we've got to do and we're optimistic about the season ahead."

"We're a strong club, we can pick ourselves up and start again. We're up to the challenge."

Reid refused to be drawn as to whether the increase in debt was attributed to costs associated with terminating the contracts of Mowbray and his assistants, Peter Grant and Mark Venus and a loss of £3.14m coming under the description of 'exceptional operating expenses'.

"You have to draw your own conclusions," said Reid.

"But it's public knowledge that in hiring a new management team and parting with the new management team there are costs involved.

"If it weren't for these costs, we would have equalled last year's figures."

Reid also acknowledged his part in the decision to appoint Mowbray as manager and confirmed that Lennon would be given more funds to complete the rebuilding of the Celtic squad before the end of the summer transfer window in the club's pursuit of wresting the Scottish Premier League title back from Rangers.

"The board accepts responsibility, and as chairman of the board, I accept responsibility," said Reid.

"At the time, especially among the fans, it was seen as a good appointment, but we've moved on from that.

"It was to be a new beginning, but it was a false start and I accept responsibility for that. I also accept responsibility for the appointment of Neil Lennon.

"Whoever is appointed as manager of a club like Celtic, there is a gamble attached to it.

"But in Neil Lennon, we have a potentially great manager at Celtic. He's a motivator and a leader, and he knows the club.

"Our fundamental objective is to win the league, as it is the gateway to Europe and the future.

"We want to go into the Europa League group stages. Of course, when you're at Celtic, you're expected to do that, and we want to do that.

"But the fundamental objective is the Scottish Premier League."

E-mail this to a friend

Printable version