Delighted Aberdeen are now free of their “debt servicing burden” after long-term supporters Willie and Elaine Donald proposed to reduce net debt by an astonishing £14.9m. The club have been able to service their debt but it’s been caught between paying for old overspends and driving ahead with a new stadium to provide for its future.
Aberdeen has a vibrant business and corporate entertainment sector which the club is well-placed to exploit. In the right environment, specifically, playing a regional league with a new stadium, they could be transformed into a European power, as they were back in the day.
Unfortunately, it’s not all rosy positive financial news for Scottish football clubs. Rangers International’s statement to the stock market this morning confirmed that Mike Ashley’s £2m loan will not be enough to see the club through to the end of this month. Ash’ has provided a further £1m, which will take them through to the second week in December – at least!
The statement confirms yet more money will be needed before the end of the year and that the directors have begun a cost cutting exercise. So where does this leave them?
Living week-to-week is fine if you are within sight of season ticket renewal deadline but that’s six months away. The funding requirement to get them to that day is likely to be north of £10m, with Ashley now the only wallet in town.
A great deal of analysis is taking place over his commitment to the SFA that he’ll not acquire more than 10% of the club, but this overlooks all the important factors, specifically that owning more share capital is neither necessary nor helpful to Ashley.
Football clubs are a collection of businesses. There is the football, of course, but there is also a media business (print, online), retail services, brand merchandising, corporate hospitality, there’s advertising space to fill, and with some, there’s a link to a charity, which requires administration.
The charity and football operations cost money but everything else tends to make a profit. Football clubs are horrible entities to manage. You have unrealistic competitive pressures, fans who demand conflicting objectives and your performance can be undermined by a defender’s lapse, before you’re scrutinised in public. Only lunatics would apply.
By contrast, corporate retail management is a walk in the park. Ashley already has a healthy share of Newco’s retail, merchandising and IP rights. He can and will make money out of them, and no one has been able to tell me why he’d be remotely interested in owning an ounce more than Rangers International.
The funding which will get the club through the rest of the season is likely to cost them all those profitable income streams in perpetuity. There’s a good chance security will be required over the property assets too.
Newco is pretty much hollowed-out already but the scavenging isn’t finished. By the time the consequences of all that ‘we will continue to act like a big club’ nonsense of the last two years has comes home to roost, the cost of their hubris will be laid bare to even the most blinkered mind.
All of this was inevitable when Sir David Muray overruled his board’s recommendation and sold out oldco to a liquidation expert.
TIME CHANGE Remember, we’ve got Davie Hay on the blog tomorrow from 9:30 – 11:30.
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rp67
21:20 on 12 November, 2014
Hamiltontim; I’d rather sign an out and out creative #10 for that role or if we want a back up SJ type player go for Armstrong from Utd
——-
There was a grand wee defence lock picker. Went from United to Portugal!
GauldDebateCSC
HH jamesgang
Canamalar
That’s why I’d play him in that more advanced role. Let’s see if he can create.
Hamiltontim @ 21:01
I was in Honduras last year …. everywhere I went…. Izzy…Izzy … they love him…. as do I, and I”m glad to see he is returning to form, but I still think a more defensive (and hopefully bigger) left back is needed. His pace was always his biggest asset (allowed him to get up and back, and cover for a lack of size), but he is 28, that plus his injury, means that his biggest asset (his pace) is a diminishing asset….
Jamesgant@21″03
Kayal – no. Never been the same since that incident.
Brown – no. Did not turn into the player we all hoped he would. Partly, it is the way he is used (decent engine, and okay as wide right of a midfield three, and can run all day), but doesn’t have the necessary ball skills or tactical nous to be in the middle, or to justify what he is paid. Better value for money available.
KC — yes (never throw away someone who scores), but (i) isn’t getting younger, and (ii) doesn’t fit into RD’s scheme, so will see a reduced role. Reduced wages (and let him do his coaching courses while here)
Biton – may not turn out to the player we need (although he hasn’t really been given the chance), but is certainly the sort of player we need … patrols middle, and can see and make a pass
Delaney’s!
Shops in the night!
Wtf?
Bobbio. Nae mare jokes about my meikle digits please!
I need a fisher price iPhone!
HH jamesgang
Jamesgang
Don’t think there is such a thing as a plush store in Clydebank? Not since Woolworths shut anyway. :)
DD,
I don’t see why we need to settle for players who don’t have both, we’re constantly told they are not in out price range yet Eastern Europe is full of them and well within our price range, people are getting lazy and too easily brow beaten into accepting that tosh because some billionaires puppet says so.
I trust all Celtic supporters who attend the Cup semi-final realise they will be simply ‘ tipping their hat’ to corruption of the highest order ……… not going anywhere near Hampden for this second ‘shame game’ would send them all a very powerful message …..which will also contradict the SMSM assertion that most of us want the ‘deed’ resurrected.
Bitton needs a run in the team ,to give the guy a chance of making it.
mike in toronto
Good positioning and an ability to read the game and understand what’s needed to play a certain position can compensate for inadequacies eg in Izzy’s case, lack of height.
I love the wee man but at times he’s not helped himself by being too slow to assess situations before they happen.
Another great asset is his strength, he’ll maintain that even when his pace diminishes.
Delaneys,
and what exactly is wrong with Dunnes
Mike in Toronto
You always post wise poo. Rare!
You’re correct about Broonie’s deficiencies but he’s more than the sum of his parts in terms of how he galvanises the team.
They were like lost sheep when he went off against Aberdeen (no pun intended) and I think the early season euro debacles could well have been avoided or minimised had he been there.
Sadly I don’t see KC playing enough of a role in the RD empire to merit a new contract (in RD and PL’s view)!or to sustain the player’s interest.
I may be wrong. I very often am!
Laters Timdom. Need to watch Holby City in the pursuit of Broonie Points!
HH jamesgang
Armstrong is above average,but we really need a creative MF right now.Gauld on loan fae Sporting Lisbon ? Not sure if he is the real deal but well worth a look.
67heaven … i am neil lennon ….the angels are with wee oscar in heaven.. ibrox belongs to the creditors
21:33 on 12 November, 2014
I trust all Celtic supporters who attend the Cup semi-final realise they will be simply ‘ tipping their hat’ to corruption of the highest order ……… not going anywhere near Hampden for this second ‘shame game’ would send them all a very powerful message …..which will also contradict the SMSM assertion that most of us want the ‘deed’ resurrected.
—-
I really don’t want to get embroiled in an argument over this. Why not let Celtic supporters decide for themselves whether to attend or not and just leave it at that.
Hail Hail
Canamalar
Eastern Europe and Africa are the only two markets I would look at, if I was a Celtic scout. Lots of hungry, ambitious players to choose from and value for money.
67heaven,
Problem there is that a very small percentage look at the Internet and still use the SMSM as their main source of information, until the message is common knowledge people will carry on as normal.
Bada..,
I thought the same about Balde, getting a run of games is for favourites.
Bada I’m not sure how keen they’d be to loan him back to our league.
Agreed though, a creative middy is a must. Someone comfortable on the ball. Sees a pass and can keep his team mates out of trouble.
Vicious rumour Keane has laid someone oot like a carpet at Irish team hotel…..
“Eastern Europe and Africa are the only two markets I would look at, if I was a Celtic scout. Lots of hungry, ambitious players to choose from and value for money”
DD,
Yup.
Canamalar
Just my opinion but Balde was never good enough to merit a run in the team.
We’ve got 19 and 20 year olds we should be blooding or youth development is a waste of money.
bada bing – Shay Given?
HT,
You say that about everybody :)
Gordy
Aye, Dunnes is a bit plusher than the rest in Clydebank. :))
Weefra
You still aff the tabs mhate?
That’s me a week off the house bevvy and crisps! I’ll be fading away to an elephant at this rate!
HH jamesgang
“We’ve got 19 and 20 year olds we should be blooding or youth development is a waste of money.”
Canamalar,
True. But there’s hardly been an abundance of games so far to do so in imo.
Canamalar
Only ‘cos I have high expectations :-)
what do you say about the others? or rather how do you say it ?
they’re not going to die
they’re not going to be any good
whatever they call themselves they will be new in being unimportant
they will have to reinvent themselves as being irrelevant
they will have to have an owner who doesn’t give a twopenny toss about them
they will exist but they won’t own anything
purgatory
an eternity for the sin of greed
sitting forever watching the flakes of their past drift to a common ruin
and a goodnight from me
Journalist saying it deffo wasn’t a player so not Given then.
!!bada bing!!
21:43 on 12 November, 2014
Vicious rumour Keane has laid someone oot like a carpet at Irish team hotel…..
Hopefully Super Sally had popped in for a pint or a steak bake or 3
neil canamalar lennon hunskelper extrordinaire
21:32 on 12 November, 2014
Yes, they’re growing on trees in Eastern Europe ……. Just go over and pick them off the trees, why don’t we …. :)
BB
Hope it was Keevins!
tomtheleedstim-at Hotel in Dublin allegedly,a squad member
Chick Young?
canamalar lennon hunskelper extrordinaire
21:40 on 12 November, 2014
Oh, I know………very disappointing, though….HH
Please let it be Gordon McQueen.
HT
did mcgregor not play in an advanced roll at NC
scoring into double figures , should he be given a chance there instead of stuck on the wing ?
Twitter is insane when rumours abound!
bankiebhoy1
21:52 on 12 November, 2014
Naw, he’ no big enough…he’s more a car pet ( wee dug oan the back windae)