Newco spend cheerleader Smith: Destination Insolvency

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10 years ago today Jimmy Calderwood was manager of Aberdeen. If a nostalgic journalist troubled the Tanned One on what his old club could do to prevent Celtic disappearing further over the horizon, can you imagine him saying: “The board need to bridge the gap with Celtic, spend big and put Aberdeen back where they belong”?

It would be a ridiculous suggestion. Celtic turnover circa £65m more than Aberdeen, trying to match the champions in any meaningful way would jeopardise the club’s 112 year history.

Calderwood, isn’t so daft. But Walter Smith, who 10 years ago was Rangers manager, now advises Newco to spend big in order to catch and stop Celtic. Newco will turnover around £50m less than Celtic.

Football clubs who are engaged in a competitive struggle, either cut their cloth to suit their circumstances, or are destined for insolvency. Of the tens of thousands of registered football clubs in the world, Newco, more than any, should be wedded to a strategy of matching expenditure to income.  They should know better.

Live within your means, pay your bills, build up a track record of responsible trading. Develop youth talent to the best of your ability, plan seasons in advance, and you have an excellent chance of improving as a football team year-on-year.  Whip up unreasonable expectations, become a serial loss-maker, crave short-term hits like an out of control addict, and your chances of sustained development are zero.

It beggars belief that in 2017, not five years since the shadow of liquidation walked up Ibrox’ marble staircase listing every asset in the building for sale, that a hugely experienced authority is putting a futile trophy hunt before the financial security of the club.

The ball is rolling on this now. The vast majority of fans only hear “Spend, spend, spend”. Responsible voices suggesting Newco spend what they earn, irrespective of the consequences on the league table, will be abused as heretics (been there).

David Murray’s ‘speculate to accumulate’ narrative needed Rangers to be competitive at the top end of an inflating market. It worked while these conditions were in place but fell apart when the market in England softened in 2001. Rangers could no longer sell their duds at a profit and the game was over.  It’s not been a viable strategy in Scotland for 15 years.  The subsequent crash and burn was inevitable (although liquidation wasn’t).

Any team wedded to a strategy which requires them to spend money they can ill afford, to achieve an outcome which is beyond their reach, is destined for insolvency.

Is competing for second place really that bad that you need to risk it all to ‘stop Celtic reaching 10’?  Aberdeen, Hearts and Motherwell seem to enjoy their football in this reality, most fans pitch up week-after-week despite lesser ambitions.  I haven’t heard a single voice of reason on the financial strategy across the city from within their own ranks.

You know how this story ends.

charlietrailerbogtwof

 

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330 Comments

  1. Are Sevco trying to Court red bull by playing there German team , and jetting in thousands of fans .

     

    Copyright the magic hat .

  2. The comparison between Celtic and newco in terms of investment is wrong. Celtic are correcting the failures of Lawwell by having a professional run the football dept and ensure CL qualification. We lost circa £50M because of Lawwell; now with Brendan in charge we will EE the CL money most seasons.

     

     

    Also the execution of the talent pipeline will improve. Brendan will ensure the St Ninians Lennoxtown model will deliver and his scouting is way above the John Park era. How many strikers did Lawwell / Park waste money on before Brendan brings in Moussa for £500k.

     

     

    Celtic were wasting the opportunity to take the CL money on offer with a puppet as manager and projects as players. With Brendan we have brought the right calibrate of player, improved the current players performances and started on the internal talent pipeline.

     

     

    Newco are a basket case and will not see CL action for at least a decade if ever again.

     

     

    Panic has set in within the media and Warburton will be the scapegoat or a changing of the guard takes place. This change will be disruptive and damage newco further. The pressure on a newco manager next season as we push for 7 will be unbearable. It would be great to see the waistcoat back and watch Brendan eat him alive.

  3. Canamalar it looks like OCD obsession on

    MWD,

     

    I fear it’s too late we’ve already turned down too much money on our best players, moving on our best players was the only chance to sustain our club. They probably in a huff and won’t play for us after all, new players only signed to get a shot at the EPL and now that we’ve refused that opportunity, there can be nothing but trouble in the dressing room from unhappy players.

     

    Building a team does not work that’s a proven fact, we cannot attract players except with the promise of EPL exposure, now that we have killed that goose there’s nothing left but the downward spiral into liquidation.

  4. saltires en sevilla on

    MURDOCHAULDANDHAY on 10TH JANUARY 2017 1:30 PM

     

    S & S & BMCUW

     

     

     

    From previous thread

     

     

     

    Hi Fella’s

     

     

     

    Thanks for the mention you 2 Sevilla you ever in johnstone noo or you stlll on yer honeymoon :) you have been in Europe more times in 1 year than sevco in there entire history :)

     

     

     

    Boaby last time I seen you was with the Johnstone contingent CQN brigade shooting the breeze over an Indian some very clever blokes thems from Johnstone just ask acgr or his bro pedro :)

     

     

    –///–///–///–///

     

    Honeymoon is over!

     

     

    Back home for the forseeable future and looking forward to the next Joansun curry nite with BMCUW et al.

  5. KevJ

     

    The fans are the soul of the club – not for sale

     

    Football without fans is nothing

     

    The board is only temporary custodians

     

    You therefor are just a troubled soul

  6. The”Myths” interview is surely a prelude to them asking fans to subscribe to club1872, with the level5 spin that it’s for players, but it will be to generate the funds to stay open till season ticket money time again and the spin will go into full gear naming Ronaldo and Messi as certain signings, they will never learn por cierto.

  7. sixtaeseven - 65 trophies in my lifetime on

    The cardigan is it now ?

     

    Two days ago it was Agent LeGuen.

     

     

    Was this mentioend in his “exclusive” this morning?

     

     

    “Smith back on board at Rangers in ringing endorsement for Green’s regime.”

     

    http://www.dailymail.co.uk/sport/football/article-2231519/Walter-Smith-agrees-join-Rangers-board.html

     

     

    Him and Super brought on board to flog the ol’ season tickets…

     

    Each of them “RRM” well compensated, you would think.

     

     

    LEGNEDs right enough.

  8. Awesome!!! Well done, Arizona!!

     

     

     

     

     

     

    In the wake of Colin Kaepernick’s unpatriotic refusal to stand during the national anthem, some team leaders are pushing back.

     

     

    And now the Arizona Cardinals have topped them all with a game opener.

     

     

    The Eagle is what makes the whole ceremony extra SUPER!!

     

     

    Watch the video…

     

     

    https://youtu.be/Lrl0w97ogHs

  9. Evening Bhoys and Ghirls. I am looking for a bit of assistance if anyone can help. Its my step dads 60th next month so I am looking for a quality gift for him. His favourite player of all time was Bobby Murdoch, so I was trying to find some kind of signed memorabilia, but the usual haunts of e-bay and the like are unsuccessful. Does anyone know of any other sites that may have something like what I am looking for.

  10. Canamalar it looks like OCD obsession on 10th January 2017 6:27 pm

     

    The American national anthem is a joke

     

     

    “God save our graciouse Queen….??

     

     

    Feel the pain…………HH

  11. Canamalar it looks like OCD obsession on

    Weeman67

     

    National anthems in general are a joke the hypocracy of the American is the biggest.

     

     

    I’ve no doubt you feel the pain.

  12. CIGALASPORFAVOR on 10TH JANUARY 2017 6:44 PM

     

     

    NATKNOW

     

     

    It is if your 18

     

    ———————————————-

     

    I’m nearer 50.

     

     

    It is down from a high of 159/101 on Christmas Day though…

  13. Natknow 151/91 isn’t brilliant but I wouldn’t be panicking yet.

     

    It should be checked monthly I would suggest.

     

    You should be looking for approximately 120/80.

  14. Natknow.

     

    That’s good that it’s down the 101 bit is high, more than 25% higher than expected. The fact that it’s 91 now is a good reduction.

  15. saltires en sevilla on

    Philbhoy

     

     

    Thoughts and prayers with you and your’s.

     

     

    Fond memories will ensure the smiles return..

     

     

    YNWA

  16. BOURNESOUPRECIPE on 10TH JANUARY 2017 5:49 PM

     

    Broxi Bear’s first aid certificate makes him the second most qualified medical at Auchenowie.

     

     

    —————–

     

    Magic!….but who’s in front of him? :O)

  17. cigalasporfavor on

    My cholesterol hovers between 5 and 6 which I know is not very good.However, my doctor reassures me this is below average for “the west of Scotland”??

     

     

    Is that reassuring?

  18. FAVOURITE UNCLE on

    NATKNOW on 10TH JANUARY 2017 6:29 PM

     

    Blood pressure 151/91 – is that bad?

     

     

    if you are taking it yourself sit down and do it 3 or 4 times and put everything out your mind.it will come down.

  19. Earlier posts re blood pressure, or hypertension as it is now called.

     

    Just my opinion , but based on experience….anything above 90 on the second scale needs looking at.

     

    Hypertension is known as a silent killer in the hospitals. A lot depends on genetics, lifestyle etc.

     

    I have had a couple of scares , hence my gym regime and healthy home cooking binge in the last two years. Still working on keeping the bevy down though. Seems to make sense to me, my last readings were 139/80. I have hit the 200’s / 110 ‘s in previous days.

     

    Don’t take chances.

  20. Very interesting developments in Sevcoland these last few days.

     

     

    My guess is the boardroom is split. The “sensible” Bears like Douglas Park are fed up throwing away millions of pounds whilst the GSL sits it out in Suud Efrikka. The only way to stem the tide is to do a deal with a real billionaire: Big Fat Mike…. who won’t play ball till King is history.

     

     

    What we are seeing is a Level 5 operation, likely instigated by Paul Murray, to put pressure on the GSL to do a deal asap or bog off.

  21. Oh for the good old days when giving the bank manager the monkey’s paw solved all THEIR problems.

  22. JMCCORMICK on 10TH JANUARY 2017 7:22 PM

     

     

    Earlier posts re blood pressure, or hypertension as it is now called.

     

     

    Just my opinion , but based on experience….anything above 90 on the second scale needs looking at.

     

     

    Hypertension is known as a silent killer in the hospitals. A lot depends on genetics, lifestyle etc.

     

     

    I have had a couple of scares , hence my gym regime and healthy home cooking binge in the last two years. Still working on keeping the bevy down though. Seems to make sense to me, my last readings were 139/80. I have hit the 200’s / 110 ‘s in previous days.

     

     

    Don’t take chances.

     

    —————————————————

     

     

    Practice nurse told me to come back again in a few weeks for another reading.

     

     

    Porridge for me the morra!

     

     

    #CQNBreakfastClub