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Donald, Ashley, cost of hubris laid bare

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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.

You can get copies of Caesar & the Assassin, Billy McNeill and Davie Hay’s accounts of managing Celtic from Jock Stein’s departure until the appointment of Liam Brady, signed by both Billy and Davie here.

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  1. richie..

     

     

    Time are you in BlaneV on Friday,BT &i will be there around 2.230pm.

     

     

    May come in earlier if I can spot a decent winter jacket on-line today.

  2. AULHEID: agree SDM ruined Scottish football (think Jock Stein had a hand}. He went chasing the dream ,SDM,(not Big Jock he had already achieved it) and signed everybody and anybody from outside Scotland.

     

    If you had an “I” or an “O” at the end of your name you were the one. Rest of Scottish football tried the same but of course their players had to pay tax.

     

    No development in Scotland and schoolteachers not paid overtime for watching schools football on a Saturday , so school football suffered. (I stand to be corrected if this was not the case). This lead to an almighty decline in Scottish football home and abroad.

     

     

    Sixties: Celtic and Rangers in final of European tournaments.

     

    Seventies:Celtic and Rangers in final of European tournaments.

     

    Eighties: Aberdeen win cup & Dundee United do very well in Europe

     

    Nineties: Zilch! Some say Rangers reached the semi-final? NO!! They made the last 8

     

    2000-2010 Will we ever forget? (80,000 won’t)

     

     

    Maybe Ronny D can do something in this decade?

     

     

    Mike Ashley and Newco? Barclay’s Premier League (including Newcastle)transmitted to 220 countries according to Sky, any more left? Maybe he should have held back on the loan as that A***hole Pardew seems to be getting results.

     

     

    AS: Loan; Loan; Loan =Own; Own; Own.

     

     

    HH

  3. Jungle Jim

     

     

    at 15.14

     

     

    Thanks fur the Comment..Pal…

     

     

    Ye Must remember.. that..

     

     

    Ah Must ALWAYS be..

     

     

    Controversial..

     

     

    It’s.. wit .. Ah dae!

     

     

    Mubarack.. in Ma Opinion.. is Not fur Us..

     

     

    He May hiv talent.. as ye Seem tae Think..

     

     

    But..

     

     

    He is A TROUBLE MAKER..

     

     

    No worth the Luggage which he wull Bring.

     

     

     

    NIce Chatting,pal.. as evah..

     

     

    Kojo

     

    Still,Laughin

  4. Sevco, Newco whatever and old hun, sick of the lot.

     

     

    In 2012 huns were liquidated, gone forever, so maybe now they can be liquidised and flushed down the toilet, now that WOULD be good

     

     

    KINGLuBO

  5. Neil canamalar Lennon hunskelper extrordinaire on

    Jungle..,

     

    It was a madness that everyone got caught up in that the banks facilitated, remember it was supposedly the end of the boom and bust economy, which the banks really really did not like so the decided to teach us all a nasty lesson knowing fine well their losses would be minimal.

  6. Paul67 and TET 13.07

     

     

    I hear you guys, however the sevco share price continues to rise on the stock market. I wonder what that means.

  7. KINGLUBO

     

    15:35 on

     

    12 November, 2014

     

    Sevco, Newco whatever and old hun, sick of the lot.

     

     

    In 2012 huns were liquidated, gone forever, so maybe now they can be liquidised and flushed down the toilet, now that WOULD be good

     

     

    KINGLuBO

     

     

    AMEN to that, we live in hope

     

     

    HH

  8. dena29

     

    15:04 on

     

    12 November, 2014

     

    on a personal note just heard I will be going to an executive box on 22/11/2014 for the first time ever I will not be in my own seat (except when relocated by the club)I am so looking forward to it. But is there anything I need to know before I go I would appreciate any advice, thanks in advance

     

     

    HH

     

     

    soooooexcitedcsc

     

     

    ——————————

     

     

    as long as you got the wee bank card type code sent seperate from your tickets to punch in when you get to the first door. its usually 1888, 1967 or 7162

     

     

    then you go up in the voice activated lift that only moves when you say “lisbon lion” like bertie auld,

     

     

    then you get up to the plush suite, and you need whatever the password of the day is (sent to you in a text an hour before), its done in a kremlin drop off type call and response last , last time i was there it was “do you know a handsome hun” ?

     

    response “no, no”.

     

     

    at that point you will get the mythical stuff of legend “the lounge pass” …………….

     

     

    as you move into the foyer, and grand reception space, the master of ceremonies will proceed to take your coat ……………. and flinging the big doors open ……………

     

    all eyes in the lounge will turn on you ………….. he will announce your arrival …………

     

     

    as you hand the coat over he booms

     

     

    “dena 29, you shall not pass, nae colours in the lounge, that includes cellik taps”

  9. Richie #TeamOscarForever on

    oldtim67

     

    15:29 on

     

    12 November, 2014

     

    richie..

     

     

    Time are you in BlaneV on Friday,BT &i will be there around 2.30pm.

     

     

    May come in earlier if I can spot a decent winter jacket on-line today.

     

     

    ———————————————————————————-

     

     

    2.32 !

  10. I drove past the sevco training complex today. They are flying an Irish tricolour. Either the Republic of Ireland team are training ther or Mike Ashley has broken from his deep cover. :-))

  11. Richie #TeamOscarForever on

    Doctor Whatfor

     

    15:42 on

     

    12 November, 2014

     

    I drove past the sevco training complex today. They are flying an Irish tricolour. Either the Republic of Ireland team are training ther or Mike Ashley has broken from his deep cover. :-))

     

     

    ———————————————————-

     

     

    foaty required !

  12. Kojo

     

    Mubarack.. in Ma Opinion.. is Not fur Us..

     

     

    He May hiv talent.. as ye Seem tae Think..

     

     

    But..

     

     

    He is A TROUBLE MAKER..

     

     

    while he is a Celtic player he deserves our full support and if or when he makes trouble you can then gloat and say I told you so, until then I think he brings something to the team and will support him every time he pulls on a Celtic jersey.I sincerely hope its you and not me who has to eat the old humble pie :-)))))))

     

     

    HH

     

     

    HH

  13. Neil canamalar Lennon hunskelper extrordinaire on

    Dr whatfor,

     

    Looks like another 1/2 million shares are about to be punted

  14. neil canamalar

     

     

    I don’t really understand how all of this works but is that a good sign? For them I mean?

  15. Saint Stivs

     

    15:40 on

     

    12 November, 2014

     

     

    I have printed all of that , couldnt remember it all :-)))))))))

     

     

    lmao

     

     

    stop raining on my parade,

     

     

    HH

  16. why would the republic, managed by martin and roy train at murray park.

     

     

    surely they are up at bobby lennox toon

  17. i miss “viewfromthewindae” for his occasional lennoxtown scoops ……….

     

     

    sammi has had a haircut and stuff like that.

  18. Saint stivs

     

    I don’t know that they are there training. All I know is that they are flying the green white and gold. And no, I haven’t had a drink.

  19. Saint Stivs

     

     

    I would imagine WGS has tied up Celtic training ground for himself.

     

    I would be shocked if ROI are using Sevco turnip patch for training. They would be better off at Riccarton.

     

    I did see a photo of the Scotland team observing the minutes silence yesterday and it looked like the Erskine bridge in the background. Could be mistaken though.

     

     

    LB

  20. If Ah wur King…

     

     

    Ah wid “Roll Ma Ain”… ( Players.)

     

     

    n

     

     

    “Try,,,afore, Ah wid Buy”( New Players.)

     

     

    Those ur the ONLY Weys.. tae Run..

     

     

    A Tobacconist, A Wee Sweetie Shoap…

     

     

    or..

     

     

    A Fitba’ Club!!

     

     

    Kojo.

     

     

    Still,Laughin’

  21. Neil canamalar Lennon hunskelper extrordinaire on

    Dr whatfor,

     

    Makes no difference to them they don’t make any money on share dealings.

     

    Last week I think it was, very small numbers of shares were traded sone one was buying, at the end of the week the price had risen sufficiently for someone to dump 1/4 or 1/2 a million shares at the price they were happy with.

     

    Now come to think of it how many shares would MA need to dump on the market to make more than his loans, it could be he is giving this loan to kid people on he will seriously invest then when the price goes to a level he accepts he dumps the lot :)

     

    How sweet would that be :oD)))

  22. Huns laughing at Aberdeen couple paying £14m for 20% of a diddy club, some mug payed a £1 and got 100% of the Huns,

     

    Who’s the big club ya stupid Huns ? HH

  23. Good afternoon all, my brother and I are heading over to the Ireland game on Friday with tickets in the Irish section.

     

     

    I imagine the Gallowgate will be busy with Irish fans but are there any areas of the city centre to avoid?

     

     

    Thanks

  24. roybhoy

     

     

    15:55 on 12 November, 2014

     

     

    Stick to the gallowgate you’ll be sound, the rest of Glasgow will be hit or miss HH

  25. roybhoy

     

     

    I would approach the stadium via the Gallowgate and avoid Bridgeton. Jist be careful in the city centre.

  26. blantyretim is praying for the Knox family on

    Roybhoyl

     

    definitely avoid the blane valley, it will be full of eejits like oldtim67, richie kitalba and estadio…

     

     

    oh and me…. 8)

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