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Ref: Celtic’s economic value to Scotland
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Celtic contribute £165million boost to Scottish economy every year
By: Newsroom Staff on 20 Nov, 2018 11:15
THE scale of Celtic’s contribution to the Scottish economy every year has been set out for the first time by a new independent report prepared by the Fraser of Allander Institute.
The economists estimated that the spending of Celtic and their supporters was worth £165MILLION in 2016/17 to the Scottish economy, helping to support the equivalent of 2,820 full-time equivalent jobs in Scotland. Such a boost to Scotland’s economy isn’t just a one off, but occurs annually.
Report Highlights:
– The spending of Celtic and supporters worth £165million to Scottish economy.
– Attendances of almost 2million.
– Helping to support the equivalent of 2,820 full-time equivalent jobs.
– 25th strongest brand in world football.
These conclusions emerge from an independent study commissioned by the club from the Fraser of Allander Institute at Strathclyde University which examined spending by the club and spectators at all matches involving Celtic FC during the 2016/17 season. The study also identified Celtic as the 25th strongest brand in world football.
The report found that during the 2016/17 season, matches involving Celtic saw attendances of almost 2million, while more than 40 per cent of Celtic’s day-to-day spending was with Scottish firms.
To illustrate the scale of Celtic’s contribution, other studies have estimated golf tourism’s contribution to Scotland’s GDP is around £155million each year, while the one-off economic impact of the Commonwealth Games in 2014 to Scotland was valued at £125million.
The release of the research findings coincides with research recently commissioned by UEFA that assessed the economic and social contribution of football to the Scottish economy as a whole. This supported the conclusions of the study commissioned by Celtic that football was a valuable contributor to the Scottish economy.
The findings were welcomed by Celtic Chief Executive, Peter Lawwell, who said: “We commissioned this research because of a feeling that the economic contribution from football in general, and Celtic in particular, is consistently under-valued.
“While a huge amount of attention is rightly paid to one-off events like the Commonwealth Games and other activities which attract interest to Scotland and Glasgow, football’s economic contribution tends to be overlooked – yet it brings people here from around the world.”
The Celtic CEO noted that Celtic Park is the seventh most popular visitor destination in Scotland. The club’s website ranks 23rd in world football for ‘hits’, with more than one-third coming from outside Scotland.
The club is particularly important to the Glasgow economy, with a net inflow into the city of over one million people in the course of the season, mainly from within Scotland. However, 54 per cent of visitors from outside Scotland who visit the city to attend games stay in paid accommodation for an average of 1.7 nights. The report estimates that there are just over 90,000 bed nights related to matches in Glasgow featuring Celtic over the course of a season.
The report highlights the limitations placed on Celtic by being a big club in a small league. It notes that ‘clubs from leagues with higher brand value but fewer league attendances include Liverpool, Manchester City, Paris St Germain, Athletico de Madrid and Inter Milan’.
Celtic’s social contribution is covered by the report which observes that ‘The work of Celtic FC Foundation is quite unlike standard football club foundations in scale and scope, with its focus on improving heath, promoting equality, encouraging learning and tackling poverty.’
The report also notes that Celtic is ‘the only football club in Scotland with Investor in People accreditation,’ while ‘all permanent staff members are paid in excess of the current Living Wage.’
Peter Lawwell said: “There is a great deal in this report for the club and its supporters to take pride in. We also hope the Scottish Government and Glasgow City Council will recognise that Celtic, and football more generally, are significant economic players when it comes to issues like transportation links and tourism promotion.”
Professor Graeme Roy, Director at the Fraser of Allander Institute said: “This study tracks the contribution of Celtic and the spending of their supporters on the Scottish economy. Our survey of supporters – including season ticket holders, international visitors and match-day spectators – was one of the largest that we have ever undertaken.
“What is particularly interesting from our findings is the value of international spending that is attracted to Glasgow via Celtic. This acts as an ‘export’ for Scotland boosting jobs and supporting growth. This suggests that there is an opportunity to use regular major events – such as Scottish football – as a lever to help support economic development.”
The report recommends that further research should take place into how other European cities harness the economic benefit from football and create an integrated vision, which supports areas like transport and tourism.
Peter Lawwell: Celtic worth more to Scotland than golf
Remaining Time -0:00
Stephen Halliday
Published: 22:30 Tuesday 20 November 2018
https://www.scotsman.com/sport/football/competitions/premiership/peter-lawwell-celtic-worth-more-to-scotland-than-golf-1-4832665
Celtic chief executive Peter Lawwell has called for greater appreciation from local and national government of his club’s value to the Scottish economy after a new study revealed they alone contribute more to the country’s finances than the entire value of golf tourism.
The report by the Fraser of Allander Institute at the University of Strathclyde shows that Celtic generated a gross of £165 million to Scotland’s GDP in 2016-17.
That figure is £10m more than the equivalent amount in the most recent study into golf tourism’s impact.
Half of the expenditure comes directly from money spent by Celtic and their supporters around games, but spreads beyond the matchday experience itself with spending on hotels, transport, food and drink.
Celtic commissioned the study after becoming increasingly frustrated by what they regard as an overtly negative view of Scotland’s national sport from the authorities.
“Over time, we felt that Celtic and Scottish football had been really undervalued in terms of the economic contribution it makes,” Lawwell told The Scotsman.
“In terms of headlines from government, it has been mainly negative – the Offensive Behaviour at Football Act, talk of strict liability – but we felt there is a lot of good which comes out of football, which comes out of Celtic, so we should have an independent study that would try to reflect that.
“We chose Fraser of Allander, because they are world class in what they do, so that gives it status and independence. We were delighted with the outcome, although we kind of expected it. The contribution to GDP, the jobs we help to create and support are really good.
“To put it in context, Celtic generates more for the Scottish economy per annum than golf tourism. That’s a remarkable comparator.
“The contributions that Celtic and Scottish football make to the country – economically, socially and culturally – is sometimes forgotten. There are a lot of positive fundamentals in this report we can hopefully start a debate around.”
The Scottish champions have received planning permission for a £18m club hotel and museum development at Celtic Park. But they remain in dispute with the local council over the contentious proposal of a parking exclusion zone around the stadium which has incensed fans.
“For us, it’s about partnership,” added Lawwell. “We would like to talk to Glasgow City Council about tourism in the city. Can we help each other? Can we have Celtic Park as a destination? Can we talk about public transport infrastructure which might help us both?
“There is a bugbear at the moment over the proposed parking zone, which we think is nonsense. We believe we are good neighbours. So, if there are things we can improve upon, let’s talk about that instead of having draconian impositions such as not being able to park your car within a kilometre of Celtic Park.
Former Hearts vice-chairman Pilmar Smith, left, with Gary Mackay and former chairman Wallace Mercer, right, in June 1987, after midfielder Mackay had agreed a new contract with the club. Picture: Albert Jordan/The Scotsman
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“That inconveniences our supporters who are adding to the economic benefit of the city and the country.
“We would like to have Celtic and football recognised for what it does. Let’s sit down with the relevant bodies, let’s be positive and look at ways of maximising the potential of football so that everyone wins. Our relationship with the council is generally fine. But this is one issue which is an irritant to us. We don’t see the point in it.”
The Fraser of Allander report further underlines Celtic’s current economic health after the club’s most recent annual accounts showed record revenue of £101.6m, a profit of £17.3m and cash at the bank of £27m. Lawwell, who will face shareholders at Celtic’s annual general meeting today, insists his club are ideally placed for potential changes to the landscape of European football as Uefa look to revamp their club competitions.
“We are in as good a financial state as we have ever been in, which allows us to face the challenges going forward,” he said.
“There will be changes in European competition. The Europa League will change from 2021, which is an opportunity for Scotland as a nation to try to get more teams into the group stages.
“For me, the transformer for Scottish football will be to get more teams into regular European competition. If we can in any way try to help that, we will. It will make the Premiership a more competitive and better-funded league.”
Lawwell also welcomed the new TV contract which will see Sky Sports have exclusive live rights to the Premiership from 2020 and is worth around £30m a year.