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Financial fundamentals, credit where due at Ibrox

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Credit where it’s due, season ticket sales at Ibrox near 17,000, with so many people trying to force the club into the gutter, is an achievement, and ignore anyone who doubts this figure.  Respect to those fans who have remained ‘loyal’.  The information was released to the stock market, so sales will definitely be north of 16,500.  It’s not worth lying to the stock market over such trivialities.

In the short term, this means the club will be able to meet its loan repayments, if they choose to do so.  Don’t ignore the possibility of a game of brinksmanship over loans made by fans hostile to the board.  Lenders could be forced take insolvency steps to recover their money, which would be politically awkward, so the club might be able to hold onto this cash.

It also means they will survive the summer and start the new season, which in itself, will encourage others to buy season tickets.  The eventual figure may reach 20,000.

With adult tickets costing an average of under £300 before vat, that’s circa £5m hitting the budget so far.  Visits from Hearts and Hibs next season, in what counts as big games at Ibrox these days, will provide additional income, which will go towards offsetting the drop in income from lower season ticket sales.  Controlling investors are looking to raise £8m from a share issue, so where does that leave Newco?

Based on figures produced by the club in their 2012-13 accounts, income, including a contribution from circa 36,000 season ticket sales, was £19m, while operating expenditure was £32m, leaving an annual shortfall of £13m.  Since then, costs and well as income, have fallen.

The £8m share money still leaves them short by a margin that’s likely to be at least £5m, probably more, so further funding should be required by early next year, possibly in the form of a secured loan.

From this position, assuming they compete successfully on the pitch, Newco are short odds to survive long enough to make it into the Premiership for season 2015-16, albeit, still carrying an enormous structural overspend.

It’s also likely that Dave King’s plans, however limited they were, have been torpedoed.  Newco will limp on as an unrecognised and unloved rump of a football team, largely owned and controlled by people who have done everything in their power to hide their identity from fans.  We can only speculate………

Know your place

King’s most damaging intervention in recent months was to assert that Newco should be spending enough money to compete with Celtic, which after original Rangers went through liquidation is hard to fathom.  Newco Rangers must surely learn to live within their means, whether that involves competing with Celtic or fighting off relegation.  Those now running Newco can insist all they like that they are custodians of the heart and soul of Oldco, but only the colour of the shirts will bear any resemblance with the former ‘bears’ in the decades ahead, should they survive long enough to enjoy them.

The financial fundamentals have not changed.  It will cost between £17m and £20m to operate a football operation at Ibrox, before you employ a footballer.  Rates (possibly rent in future), policing, insurances, utilities and the hundreds of staff required for a stadium which can accommodate 50,000 people leave little room for shortcuts.  Jettisoning the vanity project that is Murray Park is a no-brainer.  Get rid of it, cut costs and bring in some cash.

Football on this scale in Scotland is only possible with regular Champions League participation.  Celtic could not operate at anything like their current levels without reaching the Champions League group stage more often than not, or by receiving an investment of cash to recover the situation, should the bogey come off the rails.

This scenario has gone for the Rangers group of clubs.  Celtic’s dominance has come while they have sorted out their finances and, right now, are not in debt.  Should things go wrong one season in the future, they have the bank facilities available to roll the dice again.  Should this go wrong they have investors available to step in, just as they did in 2001 and 2005.

Dave King’s plan may have been unfathomable, but his motivation is not.  He knows too well that a subservient Rangers will be unloved and will eventually wither and die, just like the supremacist, version.

Don’t even try to fight long-term fundamentals.  They are fundamental!  Accept it.

The one and only Bertie Auld is due in the comments section below for a live chat starting at 1pm. Tune in.

Visit the CQN Bookstore to get Tommy Gemmell to sign your personal copy of his tome, All the Best.

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  1. The Token Tim on

    First time in a good while actually posting and it would appear to be on an article that rangers centric……Hooops! (and a podium into the bargain!)

     

     

    However looking forward to seeing what Ten-Thirty has to say later on.

     

     

    HAIL! HAIL!

     

    Token

  2. Green Lantern (((((0))))) on

    Credit? sevco don’ need no steenkin’ credit.

     

     

    sevco can’t get no steenkin’ credit.

     

     

    We’ve got Jack Bauer, they’ve got Jack Shit!

  3. traditionalist88 on

    If and when Celtic have to play Sevco at CP I will be there provided there is no Old Firm nonsense from the club pre-match.

     

     

    Previous generations of Celtic supporters taught me what we were up against in this country from the usual elements and it only made their, and my, support for Celtic stronger.

     

     

    I and most others were of the impression that things weren’t as bad as they used to be in Scotland but then we only realised the extent of the huns corruption in 2012 and the extent of the attempts to provide them with a ‘soft landing’.

     

     

    My old grandad saw the Celtic greats from the 20′s up to Larsson via Lisbon but just missed out on their liquidation as he passed away a couple of years before. He would not have been surprised.

     

     

    Their ‘return’ in their new guise can be added to the list of shameful events from the toxic brand that they are.

     

     

    We’ve know about this from the day dot and as before we should stand together with CELTIC and we will overcome.

     

     

    They will be back in some form and, like the Dundee United fans before us, they will never be allowed to forget what happened.

     

     

    And they will be powerless to stop us on the pitch.

     

     

    HH

  4. Steinreignedsupreme on

    quantum 10:55 on 13 June, 2014

     

     

    Likewise was enjoying the game untill the so called penalty .

     

    Turned over after Brazil scored and watched a repeat of Game of Thrones.

     

    At least that is meant to be fantasy. Can understand the reaction from the Croatian camp. They spend years preparing just for this game and it ends up being decided not on skill but on an extremely dodgy decision from a referee who was probably out of his depth.(Either that or corrupt!)

     

     

    ———-

     

     

    It happens all the time. In every World Cup the host nation always get the benefit of dodgy decisions. It is embarrassing, and it is just a scunner now.

     

     

    Game of Thrones. I haven’t watched this week’s episode yet. Still getting over the end of the previous episode. Brutal stuff.

  5. maestro-number8 on

    Fantastic article Paul, this is possibly your best line ever ‘’Newco will limp on as an unrecognised and unloved rump of a football team’’

     

     

    I wanted the official definition of the word RUMP so here it is :

     

     

    A small or unimportant remnant of something originally larger: once the profitable enterprises have been sold the unprofitable rump will be left

     

     

    STRAIGHT FROM OXFORD DICTIONARIES

  6. ....PFayr supports WeeOscar on

    Old Firm CFC …alive and well

     

     

    And some would have you believe that CFC were active in trying destroy them ..

     

     

    Shameful

  7. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    Bloody hell,even THE TOKEN TIM beat me to the mark!

     

     

    Mind,he rarely beats me to the bar…

     

     

    How you doing,stranger?

     

     

    What’s yer thoughts on independence?

  8. Marrakesh Express on

    Most of the English I’ve spoke to here in Rhodes are pro Sevco. They all however are in awe of Celtic Park on CL nights, and thats via telly. They also want Celtic in the EPL.

  9. I was called a bigot the other day because I only referred to them as Newco… and as I voiced my reason’s the retiring person just repeated bigot bigot bigot……. the irony. !

     

     

    Ayrshire is Green and White

  10. GoT last episode was the best one so far (imo). Concentrated soley on one event and didn’t jump about all over the place like usual. Felt like a short movie. Incredible fight scenes.

     

     

    ValarMorghulisCSC

  11. Why do we on here bother about sevco ,having 17,ooo season ticket holders, me personaly think abot how my club is being run, not sevco or any other club,i want to find out more about what plans have celtic going to do about having catering and other shops outside the ground,whilst waiting for the match to kick off, the celtic way great but what else, as for parking were do the motorist park there cars ,its alright saying they have areas for football coaches to park ,and i like the third strip. and i take it there is no new home strip this season,why is that.

  12. jude2005 is Neil Lennon \o/

     

     

    12:38 on 13 June, 2014

     

     

    petec

     

     

    Any idea how near it is?

     

    ~~~~~~~~~~~~~~~~~~~~~~

     

     

    Time setters are ConDem ned in the olde Bible.

     

     

    The signs and the seasons are ALL we have to go by.

     

     

    Trust me, the hour is very late, IMO.

     

     

    2012 was the the new age not the end of.

  13. In Glasgow for a family visit, went up to Celtic park to take my son on the tour, was then informed that the stadium was closed to the public due to the Commonwealth games, couldn’t even get in to show him the stadium as access was restricted to the the Celtic staff as well, this was not stated on the website nor on the phone message when trying to call in (without success!)

     

    Dissapointed.

     

     

    James_Oregon

  14. This has to be shared.

     

     

    The topic on RM is “How did administration affect you ?”

     

     

    ————————–

     

     

    KingKirk

     

     

     

     

    Davie Cooper

     

     

    True Blue

     

     

    8,739 posts

     

    Gender:Male

     

    Location:Glasgow

     

     

     

    Posted Yesterday, 11:01 PM

     

     

    What sort of effect did it have on your life?

     

     

    For myself after a few week I had to go to the doctor and ask for sleeping tablets.. It was the lowest point so far of my short life. I also lost 2 stone in weight and found myself often breaking down into tears..

     

     

    Hard hard times

     

     

    Can you remember what effect it had on your life at the time?

     

     

    ————————-

     

     

    Over 8,000 posts so it’s not a Timposter.

  15. SFTB 12; 19

     

     

    Great post.hh

     

     

    Paul67

     

     

    This news and share funding murmurs

     

    Surely one would expect our governing body to seek funding assurances. …

     

    Mmm thought not

     

    HH

  16. Just a thought, the jump of 5,000 season tickets in a week, no lies to the stock market! no be the first alleged lie the mob have told.

     

     

    Ayrshire is Green and White

  17. Hamiltontim is praying for Oscar on

    17,000 season ticket holders would not suggest they’re ‘unloved’ Paul.

     

     

    If, God forbid, they win the Championship you can pretty much guarantee close to 40,000 the following year.

     

     

    This really worries me.

  18. timbhoy2

     

    12:43 on

     

    13 June, 2014

     

    Why do we on here bother about sevco ,having 17,ooo season ticket holders, me personaly think abot how my club is being run, not sevco or any other club,i want to find out more about what plans have celtic going to do about having catering and other shops outside the ground,whilst waiting for the match to kick off, the celtic way great but what else, as for parking were do the motorist park there cars ,its alright saying they have areas for football coaches to park ,and i like the third strip. and i take it there is no new home strip this season,why is that.

     

    —————

     

     

    Good point, and what we should also worry about is that even though they have only sold 17000 season tickets, if last season was anything to go by, there’s a fair chance that for many games, their home attendance is likely to be on a par with ours if not more.

     

     

    we need erchies on seats

  19. ....PFayr supports WeeOscar on

    MickTT

     

     

    For the Huns it’s all about religion

     

     

    I usually reply…don’t reduce everything to your own base level

  20. We saw last night how a shocking refereeing performance can ensure that a predetermined result is achieved in a football match. Regardless of how weak Sevco’s financial position is in the future, there is no doubt that they will win countless points through the decisions of Scottish referees.

     

    That aspect has not changed, nor has the fact that the current holders of the Rangers franchise attract the same loathsome, anti-social supporters who will continue to inject their poison into our society for as long as they have a flag to rally around.

  21. Hamiltontim is praying for Oscar

     

     

    12:48 on 13 June, 2014

     

     

    17,000 season ticket holders would not suggest they’re ‘unloved’ Paul.

     

     

    If, God forbid, they win the Championship you can pretty much guarantee close to 40,000 the following year.

     

     

    This really worries me.

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

     

     

    Why?

  22. reilly1926

     

    12:46 on

     

    13 June, 2014

     

    This has to be shared.

     

     

     

    Take a look at the one comparing the situation to being dumped by a girlfriend – priceless!

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