Scottish champions Celtic are £15.8 million (€23.55 million) in debt despite reporting reduced losses and an increase in turnover in their annual financial report yesterday.

The Glasgow club, in which Irish financier Mr Dermot Desmond is the biggest shareholder owning close to 30 per cent, played in the UEFA Champions League last season and reached the UEFA Cup quarter-finals. However, it announced a loss of £7.5 million in preliminary results for the year ended June 30th, 2004. That was down from £11.7 million in 2003 when their debts stood at £17.8 million.

Chairman Mr Brian Quinn said that "conditions for Scottish clubs had remained very difficult" as he commented on a year in which Celtic regained the league and Scottish Cup from arch-rivals Rangers.

Motherwell, Dundee and Livingston all went into administration last season as they struggled to cope with mounting debts, while Dunfermline Athletic's players were forced to accept wage cuts to avoid a similar scenario.

All three clubs are now out of administration. - (Reuters)