Financial fundamentals, credit where due at Ibrox

996

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.

[calameo code=0003901719d82038831a9 lang=en page=126 hidelinks=1 width=100% height=500]
Click Here for Comments >
Share.

About Author

996 Comments
  1. Pages:
  2. 1
  3. ...
  4. 8
  5. 9
  6. 10
  7. 11
  8. 12
  9. 13
  10. 14
  11. ...
  12. 27

  1. Technology, the lack of it, is likely to take a pounding this World Cup.

     

     

    A bit like the Climate Change conference in 2009, BRrrrrrr all around the World.

     

     

    If nothing else, God has a Brilliant sense of humour. ;))

  2. theglasgowcelticway on

    “The officials have allowed the game to flow?” Yeah, they’ve not stopped play for things like goals.

  3. hebcelt

     

     

    Sorry for the typo – of course I know it is Stornoway.

     

     

    Been there loads of times and like to make sure we plug the Stornoway Black Pudding when the guests are on the site.

     

     

    Thanks again to Doc for his assistance today. His phone rang and Bertie took the call – hilarious as the chap at the other end realised who he was speaking to!

     

     

    Bertie gave us his copy of this year’s Champions League Final programme – which has a big feature on our Lions from 1967, He will get Tommy and Yogi to sign it tomorrow and is giving it away to a CQNer, as a thanks for inviting him onto the blog.

     

     

    If you want your name to go into the European Cup draw tomorrow then email me – david@CQNMagazine.com and I’ll add your name to the list of hundreds who have entered so far! Bertie will draw a winner and we’ll post out on Monday.

     

     

    Bertie, Tommy Gemmell and Yogi will all be at the CQN event at the Celtic shop on Argyle Street with the European Cup and the Championship trophy – get your pic taken and get the three Lions to sign one of the books for an amazing Father’s day gift. If you’re the dad time to start hinting!

  4. South Of Tunis on

    Been a scorcher ——way down south .

     

     

    Day spent oot n aboot in Montalbano land .Much talk of last nights penalty award .Perceived to have been a gift . Chatted with a Bosnian guy who made the point that he had yet to hear anyone say it was a mistake rather than a gift . Thats true for me ,too.Sad !

     

     

    Pundit on Sicilian radio made the point that Brazil are not a great team but are clear favorites and added —–we saw Why last night.!

  5. Paul67

     

    With adult tickets costing an average of under £300 before vat, that’s circa £5m hitting the budget so far.

     

    ——————————————————————————–

     

    I make that £6m. Don`t they just trouser the VAT? If not then they definitely CAN`T be the same club.

  6. twentyfirstofmaynineteenseventynine on

    When is someone going to stick it on that annoying wee fecker Chiles ?

     

     

    If only Keano was there.

     

     

    Or if only Keano was here

     

     

    keanocfc

  7. I spend much of my leasure time these days when at home reading in the kitchen with a lapdog, sorry laptop by my side but the telly tends to be on in the background for no good reason.

     

     

    I recall a poster last evening asking what that clown Chiles brings to any football related programme and after having observed him for a minute or two just there I think the question was very valid.

     

     

    martincluneslookalikecsc

  8. !!Bada Bing!!

     

     

    17:57 on 13 June, 2014

     

     

    FIFA ban Kaiser Franz for 90 days,must have slagged that halfwit Blatter

     

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

     

     

    Interesting. How low does this corruption go.

  9. Seems like someone has handed back their rear main stand season ticket and instead bought 5 in the front as there are now only 68 seats remaining in the Main Stand – 19 in the rear and 49 in the front.

     

     

    ———————————————————

     

     

    Jobo Baldie 09:33 on 13 June, 2014

     

    There are 72 seats remaining in the ole Main Stand, 18 in the rear and 54 in the front. I know cos I’ve just counted them online. Who fancies doing the North Stand? ‘-)

  10. !!Bada Bing!! on

    petec

     

     

    18:02 on 13 June, 2014

     

     

    !!Bada Bing!!

     

     

    17:57 on 13 June, 2014

     

     

    FIFA ban Kaiser Franz for 90 days,must have slagged that halfwit Blatter

     

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

     

     

    Interesting. How low does this corruption go.

     

     

    How high does it go?

  11. Have to agree 100% on Adrian Chiles. Ugly, stupid accent and looks as if he`s shat himself. Knows hee haw either. Gets paid MILLIONS as well. And Peter Lawwell gets a hard time!!

  12. !!Bada Bing!!

     

     

    We know it is all the way up the ladder/pyramid. How far downwards are the fear mongrels manipulating things, individually and collectively. It is sickening when I think about it.

     

     

    I don’t think the SFA are anywhere near the Top but they certainly furnish those at the Top with bodies continuously, eventually the Truth will come out, for most in their eternal state.

     

     

    The Battle is never ending. You just need to identify the enemy.

     

     

    Something more upbeat from Pete!!!

  13. TBJ says Wee Oscar Knox is in heaven with the angels on

    Bobby

     

     

    I agree about chiles but how do you know he gets paid millions

  14. Joe Filippis Haircut on

    I like Adrian Chiles he is a real football fan and a West Brom Supporter for me he comes across as a football fan who has landed his dream job.H.H.

  15. Living_in_the_Love_of_the_Commons_People on

    Chortles and guffaws at the rabid hoards are a common occurrence. However, I find it deeply disappointing that they are on track to darken Paradises’s door once more in some form of genetically modified mutation. When they do, polis sanctioned toilet smashing will be the least of our concerns

     

     

    They cheated the league, had the EBT scheme swept under the carpet, were placed in the bottom tier at the expense of the financially healthy Spartans and I would not be surprised if they somehow weaseled out of 10’s of millions in tax debt either. The SFA seems to exist solely to ensure their attitudes and songs of hate will once more sweep across stadiums in the SPFL.

     

     

    SoapboxFridayCSC

  16. Gene's a Bhoy's name on

    Adrian Chiles gets the gig because he is a ‘normal football fan’ – there to ask the experts the daft question -which he does regularly. He can’t help his black country accent.

     

    It’s the so called experts that do my head in.

     

     

    adrianchilesCSC

  17. Just before kick-off one of the ITV tits portends, ‘I fear for Mexico’. Where do they dig them up?

  18. South Of Tunis on

    ” If that was a penalty,we should stop playing football. FIFA talk about Respect but that wasnt respect-Croatia didnt get any . If thats how you start a World Cup ,we should give it up and go home ”

     

    Niko Kovac -Manager of Croatia

     

     

    ” Why dont they just hand the trophy to Brazil right away? ”

     

    Dejan Lovren .

     

     

    Toto Schillaci on Sicilian radio –

     

     

    My Men of the Match ————– For Croatia -Modric , for Brazil -The Referee “

  19. fritzsong

     

    18:25 on

     

    13 June, 2014

     

    Just before kick-off one of the ITV tits portends, ‘I fear for Mexico’. Where do they dig them up?

     

    ——————————-

     

    Said same to wife 5 mins ago……getting paid for nought.

  20. Living_in_the_Love_of_the_Commons_People on

    As for the farce going on in Brazil, when will the investigation start over the assertions from the Nepalese and Indian authorities that over 1000 lives have been lost in slave labour camps, building the humungous stadiums for the 2022 World Cup?

  21. The Mexico strip would make a good away top for Celtic.

     

     

    Even without the tartan.

     

     

    HH!!

  22. Tallybhoy –

     

     

    our new away strip is my favourite (away strip) for many a year. At £55 for a short sleeved sponsorless top I think it’ll be a bit much to justify. Although I do turn 40-12 in a few weeks time…

  23. .

     

     

    World Cup been Brilliant so Far..

     

     

    Cheating Refs..

     

     

    Dodgy Penalties..

     

     

    Dodgy Offsides..

     

     

    Dodgy Perms..

     

     

    Broken Big Screens..

     

     

    Dreich Weather..

     

     

    Celtic Fans moaning like Feck..

     

     

    It’s Jist like Your Typical Old Firm Game..

     

     

    Only thing.. That New Coke..

     

     

    It’s Not the Real thing..

     

     

    Summa of TheWorldCupIsNotEnoughCSC

  1. Pages:
  2. 1
  3. ...
  4. 8
  5. 9
  6. 10
  7. 11
  8. 12
  9. 13
  10. 14
  11. ...
  12. 27