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You are at:»»Newco spend cheerleader Smith: Destination Insolvency

Newco spend cheerleader Smith: Destination Insolvency

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By on CQN BLOG & Comments

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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  1. Margaret McGill on

    Just posted some of my repeats from 2012.

     

    Nothing has changed huh?

     

    Some stuff I posted back then would be murderated today.

  2. macjay1 for Neil Lennon on

    MARGARET MCGILL on 11TH JANUARY 2017 3:00 AM

     

     

    Your view wasn`t shared by the British electorate who remained in U.K.

  4. macjay1 for Neil Lennon on

    MARGARET MCGILL on 11TH JANUARY 2017 3:24 AM

     

    Macjay

     

     

    The racist island monkey class consciousness of thatcher is exactly Brexit.

     

     

    =====================================================================

     

     

    The grocers daughter who got up the noses of the cabinet landed gentry ?

     

    The Ted Heath`s of this world.

     

    Mate.

     

    First and foremost democracy .

     

    The number of global democracies in the world has dramatically increased in the last thirty tears.

     

     

    Hope you`re not going to tell me that you went to Reagan`s USA.

     

    :-)

     

     

    Brexit.

     

    Home Rule.

     

    I`m sure that there a number of people on this blog who can understand that ambition .

  5. An Tearmann on

    Delaneys Dunky

     

    thoughts and prayers for your mum G.

     

     

     

    Philbhoy

     

    Fine tribute to big moe who will be reunited with his wee lass

     

    Condolences mate.

     

     

    HH

  8. macjay1 for Neil Lennon on

    MARGARET MCGILL on 11TH JANUARY 2017 3:57 AM

     

     

    Two different concepts.

     

     

    Democracy and freedom.

     

     

    Do you agree that Russia is democratic ?

     

    They say its ” not free ”

     

     

    Do you agree that Venezuela and Colombia are democratic ?

     

    Freedom House says that they are ” partly free ”

     

     

    Free . Partly free.

     

    Nebulous terms.

     

    No more . No less.

     

    They can mean anything you want them to mean.

     

     

    I get the distinct impression that this organisation has a political bent which it is trying to promote.

     

     

    Viz. Donate.

  9. An Tearmann on

    BRTH 11.25

     

     

    No sdm accounts should be read in isolation05 and 06 tho are special even by his atandarda!!

     

    The underwriting community knew sir cheats issue was doomed from the start.it shone a light on bos and their dealings with the cheat from a city point view.

     

    Maybe it prepared them for oct 08.:-)

     

     

    HH

  11. macjay1 for Neil Lennon on

    MARGARET MCGILL on 11TH JANUARY 2017 3:57 AM

     

    Macjay

     

     

    As i said complex concepts were beyond her.

     

    ================================================

     

     

    Degree in Chemistry from Cambridge ( ? ) .

     

    Not bad.

     

    She was no economist ,agreed , but she knew that government funded loss making nationalised industries had no future except the debtors court or the IMF , which is precisely where Callaghan had to go.

     

     

    As she said : ” After a while you run out of other people`s money “

  12. macjay1 for Neil Lennon on

    MARGARET MCGILL on 11TH JANUARY 2017 4:15 AM

     

     

    Good civilised exchange of views , mate.

     

     

    Best I leave it there before the ” others ” arrive.

     

     

    :-)

  15. Brogan Rogan Trevino and Hogan on

    Celtic Champs Elect on 11th January 2017 5:16 am

     

     

    BRHT

     

     

    Would you be so kind and send me the info for Lisbon please

     

     

    Is everyone taking along wife’s girlfriends partners boyfriends

     

     

    Joshirons@msn.com

     

     

    ——————————————————————————————————————————————————–

     

     

    Personally, I am taking only me but some others are taking assorted wives, girlfriends, partners AND boyfriends all in the one group which is pretty liberal of them!

     

     

    I will send an e-mail this morning.

     

     

    Weather outside is brutal BTW

  18. Friesdorfer on

    DD, sorry to hear that your Ma has had further problems. She is in our thoughts and prayers. I’m sure you will do your best for her.

  19. Jobo Baldie on

    Good morning friends from a very wet and wild, grey and horrible, rainy and blustery East Kilbride. Be careful and altert for runaway wheelie bins.,

  20. VFR800 is now a Monster 821 on

    Word of The Day

     

     

    Veracity /vɛˈræsɪtɪ/

     

     

    noun (pl) -ties

     

    1. habitual observance of truth in speech or statement; truthfulness:

     

    2. conformity to truth or fact; accuracy:

     

    3. correctness or accuracy, as of the senses or of a scientific instrument.

     

    4. something veracious; a truth.

     

     

    Word Origin

     

    C17: from Medieval Latin v ē r ā cit ā s, from Latin v ē rax; see veracious

     

     

     

    KTF

  23. Joe Filippis Haircut on

    Good Morning everyone from a wet and windy Central Scotland.DD prayers and best wishes for you and your mother.H.H.

  27. Scaniel on

    BRTH @ 11:24

     

    2. Scaniel – I am not aware of any e-mail at all and can’t see any in the junk so can you send them again and I will look at it and get back to you. My apologies.

     

    *******

     

    As the e-mail address I am using to contact you is clearly not working, then could you please eee me at ffdonx@btinternet.com – I know you must be up to your eyes in other things, so if you are not looking in today then I’ll take your other advice and try to book the flights etc independently tonight and hope to catch up with everyone over there.

     

    You’re not wrong abut the weather,btw – brutal indeed. The donkeys will be kept in today, despite their protestations.

  29. Marrakesh Express on

    I joined a Facebook group, decent football stuff on it mostly English, some cracking old pics etc. Yesterday someone mentioned CP being the best atmosphere in CL, endorsed by Messi Pirlo etc. On comes one of that mob screaming about Child abuse, Council grants, our fan behaviour, Chris Sutton and wait for it, Celtic being involved in illegal Ebt’s. There are no words to describe their suffering.. He got blown away

  31. !!Bada Bing!! on

    Another 4 page pull out in the DR with Myth,I wonder if Jingle Jangle asks him about his cut of the Challs Green ST money,and the penny a share club with the Constant Gardener? Thought not….

  32. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    !!BADA BING!!

     

     

    Inside today-ten years on from sir Walter of Cardigan rejoining The Gers and bankrupting them,we ask him his thoughts-Exclusive!

  33. Brogan Rogan Trevino and Hogan on

    Scaniel & MurdochAuld & Hay

     

     

    E-mails sent with some basic travel plan info. Anything else just get in touch.

     

     

    Thanks

     

     

    BRTH

  35. ernie lynch on

    MACJAY1 FOR NEIL LENNON on 11TH JANUARY 2017 3:44 AM

     

     

     

     

     

    ‘The grocers daughter who got up the noses of the cabinet landed gentry ?

     

     

    The Ted Heath`s of this world.’

     

     

    ###

     

     

    Ted Heath was landed gentry?

     

     

    His father was a builder and his mother had been a maid in service.

     

     

    Regarding Thatcher, one curious aspect that’s never mentioned, is that her circle of confidants contained a surprisingly high number of predatory paedophiles and sexual deviants.

     

     

    Not that she would have known, of course. The security services would have though, which makes you wonder.

  36. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    ERNIELYNCH

     

     

    Judicious use of the word “allegedly” might be in order,apart from those already roasting in hell.

  37. TinyTim on

    There must be an alternative motive for The Rangers to be playing this fixture in Leipzig.

     

     

    I think there could be some truth in them trying to woo sponsorship from Red Bull.

     

     

    TT

  38. Ray Winstone's Big Disembodied Heid on

    BMCUW @ 9.43 am. My favourite so far of the Trump jokes is…..

     

     

    What’s the difference between a lentil and a chickpea?

     

     

    Trump wouldn’t pay $1000 to have a lentil on his face.

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