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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Adrian Chiles…sits in section 112.
Adrian Chiles…was a alter boy at St Chic’s in Paisley.
Adrian Chiles…is Kevj’s fav cousin.
Adrian Chiles…is a member of the Knights
Adrian Chiles… posts on CQN.
Thierry on the beeb saying neymar should have been sent off ironic or what
nye
only one of those statements is true -need to go and prepare for tonight’s broadcast
baggies baggies boying, boying
From previous article…..
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setting free the bears supports Res. 12 & Oscar Knox
11:38 on 13 June, 2014
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Brilliant post pal thanks.
Sorry for delay in responding
logged out without scrolling back.
Thanks again – Hail Hail.
Have a good one Tims – laters…..
If people wish to be members of, and participate in competitions run, by a totally corrupt organisation, why then do they feel entitled moan when dodgy decisions that go against them are made?
I’m afraid I’m rather sceptical about the whole Sevco busted flush thing. In my opinion, if they make it into the premiership next year, their season tickets sales will go through the roof and they will steamroller their way close to, if not actually attain, the top spot in a year or two.
Their financials depend on it and they will get every assistance in getting there with honest mistakes the like of which we have never seen before.
Syd Negakev
19:45 on
13 June, 2014
I’m afraid I’m rather sceptical about the whole Sevco busted flush thing. In my opinion, if they make it into the premiership next year, their season tickets sales will go through the roof and they will steamroller their way close to, if not actually attain, the top spot in a year or two.
Their financials depend on it and they will get every assistance in getting there with honest mistakes the like of which we have never seen before.
As I pointed out in previous post, THEY will willingly spend the money to achieve THEIR aims.
quonno
Yes indeedy.
quonno
19:33 on 13 June, 2014
A rather unpopular prediction.
Much has been said about the potential competitiveness of next season’s Scottish Championship. Bollocks!
THEY will win it by no l3ess than fifteen points.
More to the point, regardless of THEIR supposed financial woes, THEY will playetrs buy of sufficient quality to ensure that THEY do so.
===============================
I’ve said it before and I’ll repeat it, and you can tell any Zombies who trot out that nonsense – it’ll be no more than a pish-on-pish pishfest, all the glamour of tramp fighting, all the class of the Jeremy Kyle Show.
Watching the Huns rampage among the stiffs in that division will be like watching Paris Hilton try to put lipstick on a pig without using her hands or mouth… Fascinatingly tacky and weirdly amusing.
sandman
don’t think i’ve seen that paris hilton movie
Dreadful coverage on the beeb…..how I
long for that UFB… Adrain Childs
Come on Espana Get into these orange barstewards
VIVA ESPANA AND ADRIAN CHILES!!!!!
.
Watching SBS Australia New World Cup panelist tonight best I have seen for a While.. Smart Views.. Really Intelligent..Thought Provoker.. Seemingly Well thought of and destined to go Far.. A total Ray of Sunshine..
Make me Wonder why CQN Whinges about every Single Football panelist..?????
Her 36DD CUP is a Bonus..Thoz
Summa of CharlottesNickerlessCSC
Is Daley Blind the son of Danny Blind?
•-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-•
20:03 on 13 June, 2014
Is Daley Blind the son of Danny Blind?
———-
Yep
Yes he is, commentator just confirmed it
You a cup mhan then Summa?
I like to keep abreast of up and coming talent, any pics? :-D
Huns will be much more dangerous next season than many suggest
A full Ibrox ….with their supporters hell bent on revenge for their demise ….they don’t accept that they have themselves to blame …
increased finances and interest
Throw in Norris,Murray,McLean ,Thomson,Collum et al …honest mistakes galore
Consider CFC with the bargain basement signings…sale of our best players and the gradual but steady reduction in squad quality
I’m not convinced they’ll be as impotent as predicted ….their fans will be as dreadful as ever ..if not worse
We should have done everything in our power to kill them off ……instead we are set to embrace their return…for return it is ..we can argue the legals etc ..but they’ve retain every rotten aspect
CFC not PLC
Ps. Liked Bertie’s answer to my question today. Whit a mhan!
Drat
Diego Costa getting some stick from Brazilians in the crowd. About as popular as a Japanese ref in Dubrovnik.
Schneider should have scored. . . Through on goal, time, straight at Casillas.
beatbhoy
or aiden or neil at any scottish away ground
Gene’s a bhoy’s name
I think he’s ok to open his post though.
Torres should be playing, think this World Cup could’ve been the time for him to rediscover his form
Big DC misses chance to silence the boo-boys. . . Hesitated, and chance gone.
bobby russell
19:33 on 13 June, 2014
To me it isn`t hate of Chiles, or the vast amount he makes. Personally I think he`s pure crap. Others obviously see it differently. I just don`t like listening to him or watching him.
And I still think he looks as if he`s jobbied in his (probable) y-fronts.
Haw Boabby, what’s up wi Y-fronts ?
Boabby
Nearly said what’ve you got against Y-fronts but that would just be vulgar!!
Hehehe
I don’t accept Rump Rangers will walk next season’s championship, I think they will find it very difficult indeed. I cant see any real quality being added to their squad an little or no talent coming through. Lets look to our own CL adventure rather than worry about that mob.
why is Costa getting so much stick ?
adrianchilescsc
Mcbhoy
Agreed. They scraped home in a few games last season. Hertz will be stronger, Hibs must improve. I think they’re in for a rough ride. Cup finals every week.
He’s Brazilian, but chose to play for Spain.
….PFayr supports WeeOscar
20:07 on
13 June, 2014
Have to disagree, the hun will be no more potent
than the hun of the early 80’s…..a old rabid dug wae
nae teeth.
twentyfirstofmaynineteenseventynine
Cos he’s Brazilian
HH
I think he was granted Spanish citizenship last year, so had a choice to make. I think he’s actually been capped for Brazil though.
Tnt they will also have to play full time players no part timers jeez wee Albion nearly done them, and Raith did.
He’s had a brazilian?