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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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912 Comments

  1. Jungle Jim Hot Smoked on

    glendaly

     

    I am interested in all that space stuff so when you mentioned it I went to Google it. In my haste, I typed: Probe lands on astronaut!

     

     

    JJ

  2. Ah detest these “International Breaks”

     

     

    Donch You ,Guys n Dolls?

     

     

    Especially, as Ah hiv Nae Interest In Watchin.. Scotland.. playing the game.

     

     

    or..

     

     

    Any ither Country .. eethur.

     

     

    I Find Games between Countries… Pointless n Boring.

     

     

    Why Is that..then..

     

     

    Well..

     

     

    Tae pit it as Succinct n Pithy… as Ah kin..

     

     

    “Kojo, only.. DIGS.. watchin… Da Celtic!”

     

     

    Kojo

     

    Still,Laughin

  3. minx1888 praying to Wee Oscar on

    Dena just to echo what others gave said you fair deserve it Ghirl! Have a fantastic day out!

  4. My bet is that Ashley is happy to keep the pretendy bears going until Santa fills the stockings and the January sales are over – lots of threadbare jerseys to be shifted over the next month or two.

     

     

    A cost-cutting exercise is underway, so maybe a sale of their better players (although I have no idea who that could be…) could be on the cards just in time for the LC semi?

     

     

    Hopefully McOist is not included in the cull – he’s such a nice chap.

     

    ;o)

  5. minx1888 praying to Wee Oscar

     

    17:19 on

     

    12 November, 2014

     

    Dena just to echo what others gave said you fair deserve it Ghirl! Have a fantastic day out!

     

     

    lol I dont deserve it any more than others and rest assured I will relish every minute.But I really am so excited , the hubby keeps looking at me cos I’ve a perma grin at the minute, roll on the 22nd

     

     

    HH

  6. pedrocaravanachio67 on

    Dena29

     

     

    They don’t deserve YOU…..

     

     

    Enjoy yer day

     

     

    Fine girl ye are :-)

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

    Just met up with Winning Captains to get my copy of Caesar & The Assassin.

     

     

    Great looking book and very chunky at 408 pages.

     

     

    Remember Davie Hay will be on the blog tomorrow morning between 9:30am and 11:30am and will answer your questions.

     

     

    If you want a copy of the book then go to cqnbookstore.com

  8. BIG-CUP-WINNERS on

    Greenpinata

     

    16:18 on

     

    12 November, 2014

     

     

    You missed out Mr Custard, how could you !!

  9. Good evening all

     

     

    Dena29

     

     

    Enjoy yer day, and yer tea, see you on the 22nd kiddo. :-))))

     

     

    Weefra HH praying to Wee Oscar.

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

    Not long back into the office from a meeting with Winning Captains, Jamie Fox and Ian McCallum author of The Gathering Storms and The Storms Break.

     

     

    What a fascinating chat talking with Ian about the history of the formation of our club and the many people who were behind it.

     

     

    His research seems fantastic and his knowledge of Celtic in the Great War and what Celtic men did during that period was a revelation.

     

     

    Ian is giving a talk on Saturday at the Mitchell Theatre along with Kevin McKenna so if you are in the area or just want to go and listen then get along there as I can assure you that if you are a student of our history you will not be disappointed at all.

     

     

    Ian has self published both of his books and is part way through writing a third in what will end up being a far larger series charting Celtic, its history and the connection to Ireland and Irish people.

     

     

    Both current books are to be found on cqnbookstore.com where we are selling them for him so his work can reach a wider audience.

     

     

    It may surprise some to learn that Ian has a military background and spent years of service in the British armed forces and is of the view that the contribution that Celtic people made during the world wars is greatly unrecognised and uncelebrated.

     

     

    The same can be said of the many Irish men and woman who fought in these conflicts or who served the war effort in other ways.

     

     

    I am not a military minded type person but I learned things today about Celtic people and Celtic history that I would want to explore further.

  11. Ah Dena you’re not going all corporate on me Sis are you? Next thing you know it’ll be a Filofax and red braces like oneof them whatcha callits …….. oh aye Guppies :-)

     

     

    stuckinthe80’sCSC

  12. owen

     

     

    :-))))))

     

     

    me a Guppy aye a bubble guppy (ask the wee woman)

     

     

    Hows you all bro?

     

     

    HH

  13. dena29

     

     

    Are your mhob taking over the blog? Hahahaha

     

     

    Weefra HH praying to Wee Oscar.

  14. Dena

     

     

    All doing great, Boo getting ready for Taekwando class. Shifts up at airport keeping me out of trouble, and the pub :-(, so can’t complain. Then again none of the locals can understand my accent anyway so it would be a waste of breath. Must get up to mums some weekend rota permitting.

  15. bournesouprecipe on

    Paul67

     

     

    No pretence from me regarding understanding how a proper business works, let alone a ‘business’ like Sevco.

     

     

    But even in the most ignorant of minds, how could you ask for, and agree a £2million loan and then within a matter of weeks conclude that it wasn’t going to cover your bills, and you needed another £1million. Even living on a ’week to week’ someone is making another mess – What happens in December.

     

     

    Third Rangers?

  16. Weefra

     

     

    I was here first and introduced the rest of the clan to CQN, Dena just pushier than me since I’m a shy and retiring wallflower type.

     

     

    She’s gonna kill me for that.

  17. WeefratheTim

     

    18:19 on

     

    12 November, 2014

     

    dena29

     

     

    Are your mhob taking over the blog? Hahahaha

     

     

    Weefra HH praying to Wee Oscar.

     

     

    Ha Ha thats my brother he introduced me to the blog, God Bless his cotton socks

     

     

    HH

  18. owen

     

     

    No more than you deserve. :-)) yer sister’s a class act and a major contributor to the ole CQN corner. No more welcoming person to the corner than yer sis. :-))

     

     

    Weefra HH praying to Wee Oscar.

  19. owen

     

    18:20 on

     

    12 November, 2014

     

    Dena

     

     

    All doing great, Boo getting ready for Taekwando class. Shifts up at airport keeping me out of trouble, and the pub :-(, so can’t complain. Then again none of the locals can understand my accent anyway so it would be a waste of breath. Must get up to mums some weekend rota permitting.

     

     

    Glad your still working I’m taking Mark and Krissy over for the match on 22nd God help me lol

     

     

    HH

  20. owen

     

    18:23 on

     

    12 November, 2014

     

    Weefra

     

     

    I was here first and introduced the rest of the clan to CQN, Dena just pushier than me since I’m a shy and retiring wallflower type.

     

     

    She’s gonna kill me for that.

     

     

    Ha Ha you’ll be a wilted wallflower when I see you:-)))))

     

     

    only joking

     

     

    HH

  21. dena29

     

     

    At least you can go a bit easier on him for that smart move. :-)

     

     

    Weefra HH praying to Wee Oscar.

  22. So, how many more millions is oor Mick going to lend the basket case before he realises he’s barking(mad) up the wrong tree???? Answers on a postcard. :-)

     

     

    Weefra HH praying to Wee Oscar.

  23. Weeminger

     

     

    Thanks for your reply earlier.

     

    Had to jump into a 20 minute meeting that’s just out!!!

     

     

    I guess that would make sense, the old sake and leaseback arrangement Paul has muted on many occasions !!

     

     

    Either way , hopefully he will be another who will bleed that manky mob dry.

     

     

    They are a blight

  24. petethebeat

     

     

    18:06 on 12 November, 2014

     

    All blacks now on ff banned list as some of the players visit CP.

     

     

    On official site.

     

     

    ———

     

     

    Oh how I’d love to see the brethren trying to educate our rugby brothers from the southern islands. With a Cross of the Big Mhan on their wristbands and their 100+kilos thumping your ribcage!

     

     

    HH jamesgang

  25. Weefra,

     

     

    There’s a lot of good posts made earlier pertaining to what Mike Ashley might have in mind for newco.

     

     

    Personally, I’m with the…he’ll bleed thems dry posts. HH

  26. sipsini

     

     

    We live in hope that he will bleed them for every ounce of life blood. Well deserved. Hope you are well and looking forward,soooo much, to the 22nd. KTF. :-))

     

     

    Weefra HH praying to Wee Oscar.