Celtic slash debts

Celtic reaching the Champions League group stage

Celtic's debts have been reduced by two thirds within six months thanks to qualification for the Champions League.

But being knocked out of Europe before Christmas means that team boss Martin O'Neill will have no funds to add to his squad through big-money transfers.

Celtic chairman Brain Quinn explained that the amount owed would rise substantially again during the second half of the season as a result.

And plans to match big rivals Rangers' youth academy would now take longer than first hoped.

We have pursued a policy of giving priority in the use of financial resources to remunerating players

Brian Quinn

O'Neill has already admitted that his hands are severely tied in the transfer market and Quinn said that their priority will be to reward the players still at the club in an attempt to retain their present staff.

Turnover increased by 59% to £36.3m and an operating profit of £6.86m was recorded, the club's plc has told the Stock Exchange in its interim results for the second half of 2001.

"Revenue generated from our run in Europe has assisted in reducing our debt from £29.6m at 30 June 2001 to £11.5m as at 31 December 2001," said Quinn.

"However, as a result of significant instalment payments in respect of player acquisitions and reduced trading activity, we do not believe this position will be maintained for the rest of the year.

"As in previous years, the majority of our home games has been played in the first half of the season - and, in addition, we will not have the benefits of European matches to sustain revenue growth through the remainder of the year.

Brian Quinn will reward present players

"Trading performance in the second six months will therefore be well down on the first.

"Overall, our ability to generate any profit for the year as a whole will be heavily dependent on the level of progress domestically and the impact of any player trading, should it arise."

Quinn pointed out that £7.2m had been spent on new players and said: "More important but less publicised, we have pursued a policy of giving priority in the use of financial resources to remunerating players - particularly in respect of performances on the field.

"The importance we attach to developing further a high-quality training facility remains unchanged, although it will take longer than originally envisaged to develop a suitable site."