Donald, Ashley, cost of hubris laid bare

912

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.

Click Here for Comments >
Share.

About Author

912 Comments
  1. Pages:
  2. 1
  3. ...
  4. 6
  5. 7
  6. 8
  7. 9
  8. 10
  9. 11
  10. 12
  11. ...
  12. 24

  1. Notthebus,

     

     

    I wouldn’t exactly say pressley loses it there.

     

     

    It thought it was quite lennonesque (after Ross County semi).

  2. “I feel a YES rant coming on …sorry your highness SFTB..”

     

     

    Bgx,

     

     

    Why ye only apologising to him!!?? We’ve all got to endure it :)

  3. ....PFayr supports WeeOscar on

    Bgx

     

     

    Very relevant question

     

     

    You think Scotland will become some form of socialist utopia ….kidding yourself on

  4. Jobo Mobo Baldie on

    ABZMike –

     

     

    Tickets go on general sale Friday 9.00am. As my wife’s mobile is with O2 you can register for ‘priority tickets’. Did this last night which meant we could access the pre-sale today.

     

     

    I don’t have friends in high places and indeed very few in any other places either!

     

     

    SOAL – you just do what you’d rather do ;-)

  5. BGX of course in Scotland there would be and never could be any corruption.

     

     

    Away and look in the mirror…….

  6. ....PFayr supports WeeOscar on

    Bgx

     

     

    Not that old chestnut …didn’t believe then don’t now ….the swell in SNP numbers lays bare the lie

     

     

    Anyway…the once in a generation chance has passed …yesterday’s news

  7. marspapa

     

     

    19:49 on 12 November, 2014

     

     

    Don’t you worry about it mate, everything has been fine and dandy over old ibrox way since February 2012 and don’t let the nastie Tim’s tell you different HH

  8. Pfayr…..under a free from london Scottish Socailist Labour Scottish Gov….might have a chance…as it is **Chance…

  9. Pfayr …your an auld tory…hingin oan ti lizzies underskirt…i on the other hand am a progressive forward thinking optimist….

  10. Living_in_the_Love_of_the_Commons_People on

    brogan rogan trevino and hogan supports oscar knox, mackenzie furniss and anyone else who fights neuroblastoma

     

     

    13:21 on 12 November, 2014

     

     

    If I may, I’d like to inflect a small point here.

     

     

    I do agree we are heading back in the direction of the gold standard.

     

     

    To take your point further, however, over the superpowers hoarding gold, it would be more pertinent to state that it’s actually the global ring of world banks, not individual nations. We are at a time in place in history where borders are no longer relevant. The world banks owned by the Rothschild dynasty (even in China and Russia) and aided and abetted by the like of our own Winsors (Saxe-Coburgs) and the Rockefellers across the pond have ring fenced the planet and are poised to establish themselves as the only superpower when the gold standard is reintroduced.

     

     

    What happens to humanity after this event is anyone’s guess.

  11. ....PFayr supports WeeOscar on

    Bgx

     

     

    Never voted Tory in my life …you don’t know me …keep your assumptions

     

     

    I’m a realist …who has in business been subjected to the nonsense created by the Scottish Govt and the feckwits that inhabit there

     

     

    No utopia for me

  12. Auldheid at 13.42:

     

     

    Do you really think they will ever change from:

     

    “the truth, the whole truth and nothing like the truth”?

  13. marspapa

     

     

    20:11 on 12 November, 2014

     

     

    They’ll be there, they won’t go under mike Ashley will make sure of that. He will own every asset needed to run a club but won’t own the club and the football club playing at ibrokes will be him for the privilege, that’s how I see it playing out HH

  14. I see reports saying Man Utd want to loan out Januzaj in January.

     

     

    Would be a perfect addition to the squad. Wide left is a trouble position for us…. Specially since Sammy left

  15. BT

     

    you enjoying aw the attention your getting from the two women in your life , runnin eftur yi like a couple a maddies ;)

     

    you do realise you will be up on your feet at some stage , then you’ll hear them ……we had to this ,had to do that …

     

    ;)))

     

    bepreparedcsc.

  16. ....PFayr supports WeeOscar on

    Bgx

     

     

    Do you have problems reading ??

     

     

    I offered you nothing

     

     

    As ” nailed” what on earth you on about

     

     

    You remind me of a mad Arthur Scargill ranting nonsense in pursuit of an unattainable utopia

  17. Neil canamalar Lennon hunskelper extrordinaire on

    Some people were stupid enough to want us to hand over the rights to write the constitution carte Blanche to the people who gave us the offensive behaviour law, and after that power was handed over do you honestly think they would not have sat down with the masons and orange order to try and win their approval ffs.

  18. Pfayr…my point was …your utopia is fine….and thats the way you voted….i have no prob with that…

  19. hun skelper

     

     

    exactly Rangers ( whatever ) are not not going anywhere but forward , from one blunder to the next , owing , shifting debt , they dont care how they get up but they will , imo ;)

  1. Pages:
  2. 1
  3. ...
  4. 6
  5. 7
  6. 8
  7. 9
  8. 10
  9. 11
  10. 12
  11. ...
  12. 24