FINANCIAL REPORT COULD SPELL THE END FOR PETER LAWWELL AT CELTIC
- BY LIAM CARRIGAN
- 32 minutes ago
- 4 min read
Rumors are circulating today, and I emphasize they are just rumors at this point, that Celtic’s latest financial report, which will come within the next 7-10 days might show the club with over 100 million pounds in the bank.
Increased revenue from last season’s run to the Champions League last 16 play-off round, and increased merchandize and ticket revenues, as well as the extra TV money and UEFA that comes with European progress, could well see Celtic record their best ever financial statement.
So, why do I think it could mean the end of our current Non-Executive Chairman’s role at the club? Surely you don’t get rid of the guy in charge of finances when the balance sheet has never looked better?
Peter Lawwell will Carry the Can for Celtic’s Failure to Invest in Growth
I’m reminded of a conversation I had with one of my students years ago while I was working in Hong Kong.
He was quite proud and outspoken about the financial success of his country, China, but I advised caution on his part.
“The world needs to respect China now!” he said with an authority that no teenager with little in the way of lived experience should really have, “There are so many rich people in China.”
Feeling a bit mischievous I said: “No there isn’t.
“There’s more to being rich than just having money, it’s about how you use that money, and when used effectively, it’ll make you even more money. I don’t see many people around here doing that at the moment.”
This was at a time when the property bubble in Hong Kong was getting ready to burst, and money was being thrown around like confetti by those in power. “I don’t see that many rich people around here, but I see plenty of idiots with too much money.” I said with a cheeky grin.
My student, naturally, disagreed, and we had a friendly but robust debate about it.
Now, what does any of this have to do with Celtic or Peter Lawwell?
Hang on, I’m getting to that.
Lawwell has managed to accumulate millions in personal wealth during his time with Celtic. The club have also massively expanded their own cash reserves.
But, as I said to my student all those years ago, being “cash rich” isn’t necessarily the same as being “rich”.
Unfortunately, on dozens of occasions Celtic have failed to capitalize on their massive financial advantage to further strengthen their hold on Scottish football and their position in Europe, over the past twenty years.
Suddenly, we seem a lot less like a rich club and more like one of those “idiots with too much money” I mentioned earlier.
For Celtic to have more money to hand than they’ve ever had in their history, yet fail to replace or upgrade key members of the squad, whilst also allowing Celtic Park to fall into its current, ageing, state displays what I think could only be described as widespread corporate incompetence.
As the current Chairman, from a corporate governance point of view, Lawwell is where the buck should stop. The fact that we all know that it is major shareholder Dermot Desmond actually calling the shots in the background is irrelevant.
Lawwell is the one who will have to deliver the statement that accompanies the financial results. Traditionally, this is also when the Chairman will set out the club’s vision for the next 12 months and reflect on the achievements of the past year.
Considering the level of fan anger towards the board at the moment and towards Lawwell in particular, this is the last thing the club needs.
It’s also become increasingly clear, as we discussed on yesterday’s ACSOM Bulletin, that there’s a battle of wills going on at the moment between Brendan Rodgers and Peter Lawwell. Rodgers certainly isn’t blameless for recent poor performances on the park. However, if offered a binary choice, I think we all know which of the two men most Celtic fans would rather see stick around.
Lawwell has outs. He could retire, he could choose to step down and pursue other business interests, of which I am sure he has plenty.
In business it is usually the path of least resistance that is the one that owners tend to follow.
We’ve reached a point now where, regardless of personal relationships (and self-appointed Celtic “owner” Dermot Desmond is said to be on good terms with both men) the smart business decision is to remove Lawwell and possibly Michael Nicholson as well.
I think these steps are inevitable. However, Desmond and his backers in the Celtic boardroom will want to frame their departures in such a way that it doesn’t come across as a capitulation to fan pressure.
Hence, why Celtic fans have been smart enough to know that the ongoing protest movement is unlikely to bring any significant results in the short term.
But this upcoming financial statement offers Lawwell a chance to announce his departure on his own terms, and in a way that allows him to walk out of Celtic Park with his dignity intact.
Could it happen so soon? I think it’s a distinct possibility.