Celtic have revealed they cut their debts in half last season but registered a similar reduction in pre-tax profits. Up until June 30 of this year, according to the Parkhead club's preliminary results, profit before taxation was ££2million, down from £4.44million last year.
However, bank debt was reduced to £1.51million net of cash, from £3.52million in 2009.
Celtic chairman John Reid claims the results show the club to be performing well in the midst of a financial downturn.
He said: "From a financial perspective, our results for the year continue to provide us with a solid footing and remain highly creditable.
"Turnover, at £72.59million, was on a par with the £72.95million of 2007/2008, despite playing only 26 home games rather than the 28 of the year before.
"Merchandising sales improved and multimedia sales increased.
"Operating expenses reduced by 4.3 per cent in the year (£2.74million) to £61.36million.
"Exceptional operating expenses of £2.78million were incurred, mainly relating to player impairment values and costs from onerous contracts and employment contract terminations.
"These are good results in the present economic context.
"Gains on player trading of £1.55million this year against £5.70million last time, and higher amortisation costs from investment in players, offset by the savings in operating expenses, result in our profit before tax of £2million compared with £4.44million the year before.
"Our year end bank debt, net of cash, was £1.51million, down from £3.52million the previous year."
Reid continued: "Investment in players increased from £5.11million to £8.53million, reflecting our policy of and commitment to strengthening the team within the parameters of a sustainable financial model.
"Put simply, last year we brought in less from selling players and spent more in bringing in new players than in the previous year.
"At 53.4 per cent, the ratio of total labour cost to turnover has been maintained at the same level as last year - reflecting a total outlay on labour of £38.75million.
"These results have been achieved in trying and often frustrating circumstances and substantially in reliance upon the tremendous contribution of the Celtic support.
"Unlike other sectors, the football transfer market has not been depressed by recessionary influences; indeed wages for good quality players, as well as transfer fees have increased, buoyed mainly by the broadcasting money available in England.
"The recently agreed arrangements with Sky/ESPN are significantly less than could have been the case had Sky's offer been accepted last year, and are a hard lesson in what could and should have been a far more positive outcome for all of the SPL clubs.
"This only adds to the many challenges we face in the coming season: money is tight for all of our customers; much of Scottish football is now edging along the narrow line of solvency; we must continue to seek to ensure that supporters are satisfied that they are receiving value for the money that they are asked to spend; and, for ourselves, we face a difficult path to our initial goal of Champions League group stage qualification."
