Built on Failure? The Truth Behind Celtic’s Champions League Exit and Boardroom Strategy

“They have built an entire business model out of failure.”

“One of the biggest franchises in the world of football losing every single year to European minnows.”

“This is Celtic.”

These are just some of the quotes from a recent episode of the Business of Sport podcast, which has gone viral across Celtic Twitter this week.

Charlie Methven, the former Sunderland chief, delivered a damning indictment of Celtic’s business model, arguing that it is set up to fail. He claimed that under the stewardship of Dermot Desmond, the club is merely hoarding cash as a “rainy-day fund” - an assessment that is undeniably accurate.

These so-called “world-class basics” have resulted in six consecutive failures to navigate the Champions League qualifiers. Consequently, one has to question what Celtic’s business model actually is.

It is widely known that Celtic is budgeted as a “Europa League” club. Whether that is the correct strategy can be argued, but it is at least a clear and recognizable model to adhere to. What is utterly unacceptable, however, is Celtic’s strategy when it comes to competing in Europe - an ambition steeped in the club's heritage.

Year after year, Celtic wait until after the Champions League qualifiers to sign the reinforcements the squad so desperately needs. They anxiously wait to see if the team will qualify before deciding if it warrants significant investment in the playing squad.

This season, Celtic sold key midfielder Arne Engels to West Ham prior to the playoff with LASK and failed to sign a sufficient replacement. This left gaping holes in a physically outmatched midfield, which LASK easily punished. Furthermore, there was still no backup left-back for the quality but injury-prone Kieran Tierney. These issues compounded in Austria as Celtic embarrassed themselves and Scottish football as a whole.

Actions speak louder than words, but a quick look at Dermot Desmond’s rare public comments backs up the shambolic incompetency everyone can clearly see on and off the pitch. In an interview with The Athletic back in 2020, Desmond characterized Celtic’s Champions League second-round qualifying defeat to Ferencváros as being down to a “fear factor.”

“I don’t think personnel is the issue.”

“The personnel were better than the opposition.”

“I think it is inexperience and a fear factor, a fear of failure.”

“Sometimes, whether you’re a tennis player, a golfer, a footballer, there are mental blockages.”

Three Champions League failures later, there is no doubt this is the narrative that will continue to be pushed by Desmond and the club hierarchy.

This staggering lack of self-awareness - driven by ego and completely devoid of accountability - was on display again through Desmond’s son, Ross, at the Celtic AGM last season:

“Those who talk about the club not having kicked on in Europe since 2003 ignore the enormous change in the financial landscape of football in that period. It has created a gap which keeps growing. Our model is far from perfect, but for the most part, it has served this club well over the past 20 years.”

The unfortunate truth is that those in the boardroom continue to benchmark Celtic against Rangers rather than their European peers. They credit the club’s inevitable domestic success to their own genius rather than the massive resource advantage they enjoy.

Celtic may go on to win the league this season; they may even win a domestic treble. However, this toxic boardroom culture will persist regardless. Six consecutive failures to reach Europe’s top table will likely be forgotten by this time in 2027 if the club achieves domestic success.

The more things change, the more they stay the same.