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.
912 Comments- Pages:
- «
- 1
- ...
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- ...
- 24
- »
Viewfae….is that Jack mcginn.
No…
.
hun skelper
I actually share some of the frustrations of some of our more vociferous posters after some of the performances we’ve witnessed this season. I’m not talking about those whose opinion on a player changes as frequently as Ally eats a bun :-)
viewfaethewindae
Young McGinn fae St Mirren could most certainly play on left side of midfield for us, excellent prospect in my view.
Armstrong at DU also highly thought of, but I would question that, when a SPFL 2 player can get into Scotland squad in front of him :-)
Hail Hail
Pfayr
Not from me.
VFTW
Which McGinn? I rate John.
It’s all about the money money money….o ((
BGX a carrying on the referendum debate isn’t even capable of discussing the point of corruption with me.
Pathetic.
The attempt to bully others into submission continues.
And still isn’t working BGX.
I learned this afternoon of the passing of one of Clydebank’s favourite Celtic men.
A big, popular, decent, gentle & kindly man about whom I have never heard an angry or a harsh word spoken, John was as impassioned a Tim as any I have ever known.
Very few of those who knew him will not have a funny story to tell about him… A character in every sense.
Rest In Peace, John McGuinness, affectionately known locally as The Wean.
Sir Awex wasn’t in doing his Wyder Cup routine, was he?
With Mike Ashley helping out the untermensch again, would the SFA now think that it is within the balance of probability he does actually own them?
HT
It was a genuine question ….
Cowie
Snap! :)
Marspapa
Indeed they have done well together but it’s often left to Izzy to do all the grafting.
I’d like to see McGregor given a run there but I’d give him a rest first :-)
http://www.irishtimes.com/news/crime-and-law/gardai-called-after-fan-and-irish-soccer-camp-member-clash-1.1998489#.VGPdH_zqs6M.twitter
Cowiebhoy
Ah agree wi thee… pal.
McGregor,is very over Hypped…or..should that be.. Over -Hyped?
Whatevah….
He is Not Ma Cuppa.
We should gie Anither Kid a shot at the Peerie.(Henderson? Obvious..or.. Lindsay?
Not so obvious.)
Bitton..? there.. you n Me.. or Should It be.. You n I.. differ.
Bitton, in ma Opinion..has hid his chance tae Impress.. N.
He hisnae Impressed.. well. Me.
He is Far too .. DIFFIDENT.. Ah said.. Diffident.. No .. Ah didnae Mean.. Different..( Ah wish he wiz~)
Diffidence ..in A Fitba Player is.. Bad..
Difference ..in a Fitba Player.. Could Be.. Good.
Commons.. time is Over.. He did Good fir a while ,there…..Noo.. His Time is Past
Time, tae Move Oan.. Bye.
Kayal.. Shoulda, Coulda.. Woulda… Bin a Great Acquisition , but since his Injury..
Na..
Bye,son.. Ah hate te see Him go..
We need at least Two New Mids… as Replacements.
Ah am Sure that Ronny wull bring One or Two New Middys.. In January.
The Mid Field..is Where we ur Fallin Doon.. whenevah..we.. well.. Fa’ Doon.
Kojo
Stliil, Laughin
Delaneys Dunky
22:27 on
12 November, 2014
Yeah, John has a chance, might be worth a punt.
Pfayr
I know mate, I’m just saying that personally I was always going to go when we faced the new club.
For others I honest don’t know but I can say that there’s already a frenzy for tickets.
!!bada bing!!
22:16 on 12 November, 2014
So that’s where my golf ball went….
PFAyr – If you’re hinting at my post, then no my attitude hasn’t changed. If they had been parachuted into the top league then I wouldn’t have gone back. They haven’t, they’ve played their way to the semi’s so we were bound to meet them at some point.
I get that they are still living over their means, still believe themselves to be a big club as P67 mentions but they reached the semi’s and we’ve been drawn against them.
I go to the earlier rounds to watch Celtic, hoping that I get tickets for the final to watch Celtic lifting a trophy….who we play is irrelevant to me….hope that answers your question…
d d
What were you doing in BoA today
Young John McGinn has a huge future in front of him, outplayed Broonie in last couple of games we have played them ?
What has also happened to Young Sam Stanton at Hibs ? Also looked the part last season
Hail HailI would take both, instead of Berget, Boerrigter, Tonev ( yes I know all wingers – allegedly) and Kayal
John McGuinness
R.I.P
Good night all
….ah, still en irlande…………
stumped.
BGX
“not self praise ..but self appraisal…”
That will explain why it was positive and self-praising.
If I was a realist that would give Alex Salmond a blank cheque, I don’t think I would be saying “Well done me!”.
KK
Sorry to hear about your friend John. May eternal light shine upon him.
Neganon2..
I would never attempt to bully anyone .
You have your opinion , i have mine…i have never accused anyone of attempting to bully me..
And i very much doubt that anyone on this site could accuse me of attempting to bully them..
I think you do the posters on this site a grave disservice.
..
bankiebhoy1
22:27 on 12 November, 2014Sir Awex wasn’t in doing his Wyder Cup routine, was he?
VG :)))
Young Connolly at D UTD is getting rave reports!! So is Lewis Mc Leod btw!!
Fan in explosive Roy Keane bust-up taken to hospital after autograph request ends in brawl
http://t.co/VPTUa3MAxV http://t.co/OpyF6pYqRN
Good game of 5s tonight, despite been shunted to the outside pitch with a sprinkling of rain.
“Astroturf in the rain” sounds like a song!
HT had a great game, but unfortunately was weighed down by a couple of us, ha ha and we eventually got beat by 3 goals.
Good to see Bjmac back as we head for our 2 year anniversary in January.
HH
CRC
I’d take Armstrong but would need to see more of McGinn before being able to give a balanced view.
SFTB….Alex Salmond…….never voted for him….round and round and round….
John McGuiness “The Wean” let perpetual light shine upon you, may you rest in peace
Cowie
The Royal and Royal Ivy Hotels are customers of ours. Was through to meet the owner.
Stanton is a great wee player. I like Stuart Armstrong and would welcome him or John McGinn in the Hoops.
Rip the wean.john mcguinness
Cowiebhoy
“What has also happened to Young Sam Stanton at Hibs ? Also looked the part last season”
Same as happened with young McGregor here. We demand the playing of youngsters until we find out how bad they are and then want them dropped. After they have missed a few games, they become great again and we berate the manager for not paying them.
Young players have been inconsistent since the game began. They need careful handling. When we don’t downplay the League Cup competition we find it hard to find games where we can afford to blood them. Especially with a new manager trying to build his own team and not having reached any level of consistency in that aim as yet. I think we would need a double figure lead in this league before we can afford to blood youngsters in the league and, even then, we will still moan that it will affect our cup chances because it disrupts continuity of selection.
CRC
Gonnae tell Canamalar I scored a screamer from 40 yards?! :-)
As a team we were poor tonight. We shouldn’t be beaten by a team with peanut head BJ in the opposition side :-)
All this chat about Bitton/Biton, alleged assault at the Ireland team hotel etc etc…it’s all very diverting but surely what we all need to consider is, what has happened to big Judith on the weather?
KK
Sorry to read that news.
John McGuinness R.I.P.