Warning from Blue Knights comes home to roost

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o Newco Rangers have £1.2m in the bank and the courts have just arrested £620k, leaving circa £600k available.  In early September.  Football clubs have their cash high water mark in June, after season ticket money arrives, with the low-point coming the month before, so is liquidation just around the corner?  Not necessarily.

The club has a couple of significant problems: it’s short of money and has significant monthly outgoings, but it also has assets, and may have buyers for those assets.

Murray Park is an outrageous folly and should be sold immediately.  Protests to secure it have been acts of self-harm; swallow your pride and sell.  This is a football club in acute danger, pretentions of grandeur, and Murray Park is exactly that, should be shed immediately.  Albion car park and the Edmiston House office building are superfluous property assets and could be sold without stopping football operations.

Mike Ashley has an asset Newco want back – stadium naming rights.  He could repatriate these rights as a sweetener in a deal to buy Murray Park, Albion and Edmiston.  Newco could leaseback the training ground, Sports Direct would be able to build a stonking big tracksuit shop on the Albion site and the club could boast to fans that they negotiated back Ibrox naming rights.

This might sound like a bitter pill but it will keep the lights on a little longer, makes irrefutable sense and is relatively painless.  The original Rangers existed for over a century without Murray Park, one of Scotland’s best run topflight football clubs’ Motherwell, train on a school sports field, Newco Rangers could do the same.  A little humility right now would be good for them.

There remains a problem: cumulatively, these assets are unlikely to be worth more than the £4m the club hope to raise in their proposed (not underwritten) share issue.  This is still not enough to see them through the season.  Expenditure for the last season accounts are available, 2012-13, averaged close to £3m per month.  The club will need close to £20m between now and season ticket renewal time.

Creditors must be paid or the club will go into administration.  To pay creditors, without sufficient income or credit, more assets must be sold, specifically Ibrox.

If they go into administration before selling Ibrox, don’t expect events to follow a similar path to the one Duff & Phelps took when administering Oldco Rangers.  Duff & Phelps were appointed by a liquidation specialist with a specific remit.  They even tried to sign a player.  Newco in administration would follow a more conventional route: redundancies would take place and assets would be sold to pay creditors.

Ibrox is the only significant asset administrators would have to sell.  It could generate enough to pay creditors in full and get the club through to the end of the season.  Finding a buyer would be the main challenge, but as we all now know, the club can stand or fall, but whoever controls Ibrox can continue to get a rental return from successor club.

An administrator could dismiss the manager and some other highly paid staff, reducing costs to a more manageable level, and pay ordinary creditors in full.

Newco Rangers need to finish in the top four to be in with a chance of promotion, which would be a challenge, but not an insurmountable one with the right manager in place.  They could be a top flight club next season.

This is not how fans wanted the Newco to progress but after they were unable to raise more than the £5.5m Charles Green’s consortium put on the table to buy Rangers assets, the future was mapped out.

Costs for police, insurance, electricity, IT, office staff, security and the million other items needed by a football club who occasionally host 50,000 people will be no less than circa £17m p.a – before you employ a footballer.

Newco’s income could rise from the £19m they earned in season 2012-13 (though possibly not this season), but there’s just not enough money to run a football team.  Scottish Premiership football would be a chastening experience, the levels of austerity required going forward would be draconian.

Fans can protest that they are watching the same old club all they like, but it’s not going to look anything like the Rangers you or I have ever known – and I knew them under John Greig.  And here’s the nub, the most optimistic financial projections are based on Newco selling the same number of tickets Oldco sold.  Would a Newco competing alongside St Mirren and Kilmarnock sell any more than the 23,000 season tickets they’ve sold this year?

The long-term financial fundamentals remain unchanged.  In 2012 the Blue Knights concluded there was no viable future for football at Ibrox if Rangers were liquidated.  Two years later all the evidence reaffirms that position.  This is a dead multi-club franchise.

Looking forward to the Maestro Match tomorrow.  See you there.

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  1. I wish I was Going to Paradise tomorrow.The Maestro true Celtic legend.They say all things that glitter is not gold,watching Paul from the Jungle he was more than gold,he was green and white as well.LEGEND.

  2. bournesouprecipe @ 13 11 ..

     

     

    I lived in Napoli between the autumn of 1999 and the summer of 2000. I shared a landing with a guy ( and his wife and 8 children ) whose apartment was a wowee shrine to Napoli FC . Napoli were in Serie b ———— I went to the games , he didnt . I asked him why ————” I dont go because nobody goes ” ———–” I go ” ————” Yes -but you dont count -you are not a supporter “

  3. macjay1 for Neil Lennon on

    RobertTressell

     

    13:26 on

     

    6 September, 2014

     

     

    From memory,25 to 30 thou. for average games in the `60s.

     

    Hearts,Hibs 35 thou.

     

    Huns games stouwed out.

  4. I see on twitter, that the club is planning to run coaching classes in Ireland & Germany.

     

    Ireland, I can understand – decent source of players, lots of affinity for club, and in terms of recruiting talent, we probably don’t get as much talent as we probably could.

     

    Who knows we might even flog a few hoops the hound memberships.

     

     

    As for Germany, why ?

     

    Admittedly a strong source of talent, but are German kids & parents really going to up sticks to Glasgow, when there are German clubs with strong youth development programmes on their doorstep.

     

    Again, we may flog a few hoops memberships, but enough to make any impression on our fanbase, I doubt it.

     

    If clubs like Ajax , who are a lot closer to Germany, can’t attract the talent what hope have we got.

     

     

    Looks like a complete waste of time, on a par with Rankers and their visits to Brazil & India.

  5. Paul you say, “Motherwell, train on a school sports field, Newco Rangers could do the same”

     

     

    Will the schools be ok with Sevco offering up their fields for our European opposition to train on?

     

     

    He He.

  6. brogan rogan trevino and hogan supports oscar knox, mackenzie furniss and anyone else who fights neuroblastoma

     

     

    12:25 on 6 September, 2014,

     

     

    __________

     

     

    A great read mate, I mind your cousin George reminiscing about your families involvement in the organising of travel abroad to follow Celtic…some I couldn’t post on here;))

     

     

    That would be twenty odd years ago and now reading your post, I realise how old I’m getting:(. still I’ve brought up two good Celtic supporters to follow my lead.

  7. Just heard that The Rangers board may have pulled of a miracle and arranged a rescue package for the club, they have successfully agreed major funding for the remainder of the season with a major retail company. The agreement is dependant on the club renaming themselves to The “Next” Rangers.

  8. ArranmoreBhoyLXV11 on

    HH

     

     

    In competition, I want to WIN.. ALWAYS.. That defines it.

     

     

    I want that feeling FOREVER..

     

     

    SEE this nonsense,about Sevco 2 or 3 or whatever,it s stupid & undermines what competition is about..

     

     

    I want them gone. Forever..

     

     

    BECAUSE,

     

     

    it means for the rest of MY life, I can walk about my city ,Glasgow, look people in the eye and FEEL good..

     

     

    I can tel my grand kids ,

     

     

    There was once a club, that YOU could not work at,because you are a Catholic.. This went on for over a century,our government did nothing..

     

     

    When they had enough of religious discrimination, they then tried bombastic,self ebullient financial doping of our game..

     

     

    AND still they were not happy ..

     

     

    Eventually, as in all fairy tales the good guys won, but still the bad guys refused to go away..

     

     

     

    SEE all this guff about needing Sevco..

     

     

    I don’t need them or their grubby media friends & traditions..

     

     

    It’s always about Celtic..

     

     

    It’s only about Celtic..

     

     

    Brother Walfrid, Stan Petrov, John Thomson, Paul Maestrio

     

     

    There s a tradition of humility and help at our club..

     

     

    To yearn to be associated with people who are arrogant,self righteous, spend what they like cos they are the peepil,in not the Celtic life I want..

     

     

    I truly hope they are finished for good and they all go and join bowling clubs and golf clubs and leave the weekend free for those of us who like football,played in an honest decent way.

     

     

    Good luck to our cyclists and tomorrow’s Maestrio day..

     

     

    For it IS a grand old team..

     

     

    Celtic FIRST,only,always …

     

     

    Remember that..

     

     

    HH

  9. PhilMacGiollaBhain says:

     

    September 6, 2014 at 12:18 pm

     

    27 0 Rate This

     

     

    Resin_lab_dog says:

     

    September 6, 2014 at 1:42 am

     

    ————————————————–

     

    Early next week I will have a piece up on the political blog “Slugger O Toole” about my recent trip to Scotland trailing the Yes Scotland campaign-feel free to comment there and I will respond.

     

     

    I realise that in covering the Ibrox omnishables I have shone a light on the failings of my trade in Scotland.

     

    However, there are great journalists working in politics and current affairs.

     

    It is the Sports Desks that failed to step up when a huge story was gifted to them IMO.

  10. Minceyheidman,

     

    Never understood why we never signed Frank McDougall, he would have been great for us.

     

     

    I don’t profess to know a lot about his career, but he always stuck me as someone who made the most out of the talent he had

  11. hailhail Neil Lennon on

    Re the debate over what points deduction sevco would receive in the event of admin – did the new club not agree to accept any football related penalty due to the old club as a condition of transfering the share?

     

     

    Hence as the old club were effectively on a “yellow card” in the admin penalty stakes, the new club should carry forward this penalty and be given a 25 point deduction for the next admin event- not because they are the old club, but because they carry forward the football related penalty of having been in admin before.

     

     

    Everyone would be happy in this scenario, as we would understand why the 25 point penalty was so and see them punished as fully as possible for cheating their way up the leagues, hopefully impeding further progress and the poor deluded souls could claim that the 25 point penalty proved they were the old club!

  12. eddieinkirkmichael on

    In govanhill baths for the festival of ideas this afternoon then off to The Glad Cafe tonight to listen to Fintan O’Toole. Any CQNers care to suggest a venue for a pint later tonight for a pint in the south side.

  13. .

     

     

    Just found this Little Gem from 2 Years ago Today..

     

     

    ..

     

     

     

    Ohhhh too be a 7 yr. old again..

     

     

    Just picked up My Wee Ghirl from School..@ a Fathers Day BBQ Brekkie at School in Morning..

     

     

    On the Way Home she asked:

     

     

    Dadda.. See GrandPa in Scotland.. you know how his Team went into Retirement..?

     

     

    Yea.. I said..

     

     

    Well Who does he Support Now..?

     

     

    Cue Laughter and Giggles and……..Errrrm.. Errrm.. Errm..??? From Me..

     

     

    I Spent the Next 5 Mins trying to Explain it..in 7 yr. old Language..ie. there is a New Team.. Like the Old Team..But the Old team was Naughty.. And Did Naughty things.. They wear the same Strip..etc etc etc..

     

     

    After this She Replied:

     

     

    I Wish his Team had Retired Forever and Ever..

     

     

    Why..? I asked Her..

     

     

    So GrandPa would Support Celtic Like Us..

     

     

    Ahhh Innocence.. If You could Bottle it..

     

     

    ..

     

     

    001Bhoy..

     

     

    Ps..Happy Fathers Day Tomorrow to All Aussie Tims..Even the Crabbitt wans..In Fact Especially the Crabbitt ones..

  14. For all I’m loving their predicament, and the cosmic amount of karma reigning down on them at the moment, I do fear for us should they permanently disappear.

     

     

    Best that they limp on, forever hamstrung and battered, bouncing around the bottom half of the SPFL.

  15. It seems that a lot on here are more concerend at what is going on over at sevco we should be on here putting pressure on the Celtic board to get things started with some bars resturants being made availible

  16. BRTH

     

     

    Wonderful story. My flat is at the Dalmuir West tram terminus. I have many neighbours from Ramelton. See you Friday. :)

  17. Clashcitybhoy

     

     

    Frank was and still is Celtic daft.

     

    I had the privilege to play with him at semi pro level and although he looked overweight and unfit, he was phenomenal up front.

     

     

    The swally was Frank’s main downfall.

     

     

    He now owns a pub, go figure.

  18. Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma on

    FAVOURITE UNCLE

     

    13:24 on

     

    6 September, 2014

     

     

    FU to donate by text simply text MCGJ86 then the amount to 70070.

     

     

    Thanks Very Much.

     

     

    Sipsini

     

     

    Yes that George is an awful man for a story — it sort of runs in the family though he is from my mother’s side of the equation.

     

     

    I am going to a wedding with him at the start of next month where I suspect some madness will ensue.

  19. BRTH

     

    Thank you sir for sharing your Dad’s story. Wonderful stuff and written by an 86 year old!

     

    My father was a Jungle Bhoy too. Your story put a smile on my face today.

     

    Have a great weekend.

  20. TBJ says Wee Oscar Knox is in heaven with the angels on

    Summa

     

     

    I posted on your FB page ten mins after you said you would log off

     

     

    I could still see all your pics and posts too

     

     

    Cowiebhoy

     

     

    Just back from the ticket office .. Got there at 13:05 .. Girl standing at the door glared at me ” we close at 1 today ”

     

    I gave her a smile and said ” oh sorry I assumed would be open All day as first weekend selling el tickets ”

     

     

    She opened the door and let me in

     

     

    Young girl behind the desk told me my own seat was away but could give me same seat in the row behind me and my own seat for hearts match .

     

     

    Did they not offer you a similar deal

  21. TBJ says Wee Oscar Knox is in heaven with the angels on

    No football today so thinking might go to scotstoun to the rugby

     

     

    Anyone been there for a warriors match ?

  22. Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma on

    Clashcitybhoy

     

     

    I was reading your post last night about your son’s ticket and the student discount.

     

     

    I read the website and at first I read it that those seeking a student discount had to sit in a certain section.

     

     

    However, I simply asked if my son could apply for the discount in respect of his seat beside me and I was told yes and simply given the appropriate form.

     

     

    Accordingly, I think you can use his normal seat and obtain the discount.

     

     

    Hope that helps.

  23. Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma on

    TBJ

     

     

    Yes — Great atmosphere at Scotstoun and big crowds too.

     

     

    Hope you enjoy.

  24. patmcgrathtakesapenalty on

    BRTH 12.25

     

     

    Just signed in and catching up. That was a wonderful piece: moving and inspirational. Thank you. It is a grand old team.

  25. Eddie

     

     

    South side locations for a beer

     

     

    If you come out of QP Cafe, cut through QP railway station and come out the Niddrie Road and cut through to Pollokshaws Road exit. Heraghty’s is facing you and Kelly’s is next block on right. The latter is a big Donegal shop.

     

     

    Better selection of beers in Mulberry St which is the next block left on Pollokshaws Rd

     

     

    SALUT!!

     

     

    Tripadvisor CSC

  26. TBJ

     

     

    Aye, good venue Scotstoun. Played rugby for my school there, a couple of years ago. ;)))

  27. If sevco go into admin in the near future (hope so ) will they be deducted 25 points as a new club or more as an older club with all there so called history.lets see them all fighting over where the are a newco or oldco.im sure a second admin means being demoted to bottom of scottish football.here, s hoping. HH

  28. MWD,

     

    I thought the Queen’s Park Café was on the left hand side of Vicky Rd heading towards Queen’s Park? Or are you referring to a pub on the right hand side? My neck of the woods, although removed by some 40 odd years distance! My brother drinks in a pub down there ( he lives in Castlemilk), but I now live on the eastern edge of Dundee.

     

    HH

  29. Friesdorfer

     

    14:26 on

     

    6 September, 2014

     

    MWD,

     

    I thought the Queen’s Park Café was on the left hand side of Vicky Rd heading towards Queen’s Park? Or are you referring to a pub on the right hand side? My neck of the woods, although removed by some 40 odd years distance! My brother drinks in a pub down there ( he lives in Castlemilk), but I now live on the eastern edge of Dundee.

     

    HH

     

    ————————————————————-

     

    There is indeed a cafe on the left hand side, but thats what it is, a cafe, full of ice cream and sweeties, whereas the one on the right hand side is called The Queens Park Cafe, which is not a cafe, it`s a pub, full of beer and tims.

     

    Hope that confuses you!

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