Celtic and loan signings have largely gone hand in hand harmoniously over the course of this century, both on and off the pitch.

You only have to look back over the past couple of years for successful examples of the loan market being used effectively by Celtic. Just last year, Cameron Carter-Vickers and Jota – fresh off of the back of their loan deals the previous year – had their options to buy exercised by the club, as the two players played their part in Celtic’s successes during their initial stay in Glasgow.

Indeed, with the club having already secured the services of Nat Phillips on temporary deal - along with the imminent signing of Paulo Bernardo - Celtic are continuing to scour this sector as they look to bolster their squad ahead of Friday’s transfer deadline. Both deals are reportedly different in their structure, with Phillips joining the club on a six-month loan which can be extended if required. For Bernardo, the midfielder will join for the duration of the 2023/24 season, with an option to buy inserted into his contract, much like his former teammate and countryman Jota.

This is both an intelligent and risk-free business strategy by Celtic, especially if the players joining are essentially profiting over a temporary gap in the squad due to injury. It is no secret that Brendan Rodgers’ side is severely depleted in the centre of defence, with first-team regular Cameron Carter-Vickers being joined in the treatment room by imposing new defender Maik Nawrocki and squad option Stephen Welsh, effectively paving a clear route for Phillips to walk into the first team straight from the off.

Despite there being fewer casualties with regard to midfield, the injury to Reo Hatate has certainly been felt over the past couple of outings for Celtic. His guile and ability to break the lines with his movement, drive and finesse has caused the midfield to lose its spark and creativity, leading the club to draw consecutive blanks against Kilmarnock and St Johnstone. Although Hatate is much closer to joining back up with the first team than the likes of Carter-Vickers and Nawrocki, the addition of a creator such as Bernardo can only help the squad going forward in terms of squad depth.

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Of course, not all loan deals work out, and that is why having an option rather than an obligation can be the best scenario for a club like Celtic. Take the example of Denmark international Oliver Abildgaard, who joined Celtic from Rubin Kazan in Russia. Celtic’s third transfer with the club in just two years, the defensive midfielder was brought in to bring stability in Europe to Ange Postecoglou’s vibrant squad. Despite arriving in Scotland with a decent amount of fanfare and prestige, Abildgaard barely featured for Celtic, clocking up a total of just 156 minutes across nine appearances before his loan was cut short in January of this year.

Abildgaard is an example of the ‘try-before-you-buy’ methodology that Celtic like to operate with regard to loan deals. Admittedly, it was a strategy that that club should have used more effectively in the past, particularly with the likes of players such as Albian Ajeti. The Swiss striker – who was contracted to West Ham United at the time – was reportedly heading to Celtic on loan with an option to buy during the ill-fated 2020/21 season, with Peterborough’s Ivan Toney also close to making the move up north. In the end, the club pushed for a permanent signing for Ajeti, and Toney transferred to Brentford later on in that window. Three years and a grand total of nine goals later – though hindsight is a wonderful thing – Celtic should have loaned Ajeti, as they look set to make a £4.5 million loss on the misfiring striker with his move to Turkey.

Bringing players in on a temporary basis means that finances can be attributed to other areas of the pitch that need addressing. Although not in any way cash-strapped, Celtic will not be hamstrung financially by these loans, both in terms of an initial fee of the wages paid. By taking players in positions that are already busy when everyone is fit, it means that more pressing areas of concern can be remedied. Luis Palma – widely regarded to be Celtic’s Jota replacement – will essentially slot in as the club’s starting left winger, so the decision to fork out £3.5 million for his services seems sensible in both the short and long term.

In the case of Phillips, the player he will likely start alongside is that of Gustaf Lagerbielke, a £3 million transfer from Elfsborg in his native Sweden. Whilst Celtic’s two other defensive assets in Carter-Vickers and Nawrocki are out, the Englishman could potentially do a good job by increasing Lagerbielke’s value playing alongside him and allowing him to thrive by being a calming presence alongside the Sweden cap. For Bernardo, he will be competing with David Turnbull and Odin Thiago Holm for a spot in the team, with both being unable to truly nail down their place in Hatate’s absence thus far.

With both Phillips and Bernardo not guaranteed starting spots when the regulars return from their respective injuries, these loan deals should invigorate the duo to make a lasting impression on their temporary employers. Despite there not being an option to buy for the Liverpool central defender, Phillips will be hoping that this move kickstarts his career, following a mixed couple of years for the player. The same can be said for the high-rated Benfica youth product Bernardo, who will now be afforded the opportunity to play regular football in a front-facing and attacking team at Rodgers’ Celtic.

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Although there will be certain quarters that will roll their eyes at the thought of another loan deal transpiring at Celtic, it is sensible that the club operate in this manner. By not committing straight away to a player long term, it gives both the club some breathing space in which to operate and the loan player a point to prove. In essence, he will have to work hard in order to prove his capabilities as a fully-fledged member of the squad.

Healthy competition breeds success and a club like Celtic, and by giving these temporary players something to work toward and aspire to earn can only be good for the makeup of the team going forward, in matters both on the pitch and in the boardroom financially.