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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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
PS I know it was a comet but I was thinking `asteroid`. !!
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
Dena just to echo what others gave said you fair deserve it Ghirl! Have a fantastic day out!
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)
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
now that I’ve broken the blog I’m away to make the tea
HH
Dena29
They don’t deserve YOU…..
Enjoy yer day
Fine girl ye are :-)
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
Jungle Jim Hot Smoked
Asteroids are right annoying but ye can get cream for them.
Gotta Leave, Steve
Seeya
Kojo
Still,Laughin
Greenpinata
16:18 on
12 November, 2014
You missed out Mr Custard, how could you !!
Good evening all
Dena29
Enjoy yer day, and yer tea, see you on the 22nd kiddo. :-))))
Weefra HH praying to Wee Oscar.
All blacks now on ff banned list as some of the players visit CP.
On official site.
pedrocaravanachio67
WeefratheTim
thanks Bhoys Jeezo hope I dont let anyone down
HH
The all new FF anthem ;))))
http://youtu.be/luKmSLXukaw
HH
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.
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
owen
:-))))))
me a Guppy aye a bubble guppy (ask the wee woman)
Hows you all bro?
HH
dena29
Are your mhob taking over the blog? Hahahaha
Weefra HH praying to Wee Oscar.
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.
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?
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.
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
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.
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
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
dena29
At least you can go a bit easier on him for that smart move. :-)
Weefra HH praying to Wee Oscar.
HT. I got 2 for tynecastle, looking forward to it
WeefratheTim
your a real ghent
lol
HH
dena29
:-))))
Weefra HH praying to Wee Oscar.
Dena
Nice one, enjoy the posh seats.
owen
cheers I’ll try lol /tell the two girls we were asking after them
HH
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.
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
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
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
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.