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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voguepunter
i think it was the rio
Spanish league full of overpaid galacticos ( messi ronaldo bale) suppressing local talent – mature Spanish team really struggling – just wait till Escocia get ahold of them :) hh
nye bevans’ rebel soldier
21:48 on 13 June, 2014
They look like a spent force,a ageing cash rich
squad who have done it all…their bellies are full,
they have their medals, their time has gone.
When you have guys in their mid 20s like Pique, Busquets & Pedro who have won everything there is to win at club and international level you do wonder if the motivation is still what it was.
PFayr
Awe yir gettin the ole’ losing a CQN argument’ get out…ye take a drink haw haw
Doc
21:48
I want to know what it is you have on WC ;)
Is TET watching in his village pub?
The mood will be sombre ro.
Looks like time has caught up with Xavi and Iniesta.
It happens.
All over…Spains waggon has nae wheels
Gary67
Said similar to my bhoy
Been guff for years ….vastly over rated and paid …a shadow of his former self
Spain look like a team needing refreshed …
E’dam doing that was, bookies out having a party tonight methinks.
Wow, that was a performance.
Goodnight Timland.
Gene’s a Bhoy’s name
21:51 on
13 June, 2014
voguepunter
i think it was the rio
————————
You must be an ole’ ole yin’ :O) hh
Finally got around to reading “Soccernomics” just last night. The most overrated players in the European transfer market? The Dutch!
Man U fans will be getting Man United tonight.
Spain lost their opening game at South Africa 2010
Nah. . . . .
Ticgaz apologies – I know the spfl championship next year with sevco hibs and diet Huns will be ” the best league in the world ”
Copyright – wee Chico young
VP
I ken …and I’m sober :-))
voguepunter
just a slip of a lad
Silver city – mmmm big Virgil good – derk chocolate ankles – bad
The pain in 5PAIN falls mainly in the rain …
The future is orange……..shoite!
Pf Ayr – has your wife hidden the red wine :))
johann
:)
Rycatcher aff oot to get some supplements to take on PF.
I’ll av an aff
Seem to recall an overwhelming opinion underestimating the Dutch roundabout September October last year
Think they handed out a lesson roundabout that time as well
Night all -play nice
mickbhoy1888
Who was doing the underestimating ?
RVP has scored in 3 World Cups and 2 Euros
Johann
No ..a wee day off today …enjoyed watching the opening game a little too much …going out tomorrow
And my bhoy is home from uni ….. Bassa has drank half of my carry out
RVP – for a guy that is great at hitting the target – he’s rubbish at connecting with a high five
Think NYE BEVAN rebel soldier has gone to the land of nod, but I was just trying to figure out who the alter(ed) boy from St Charles’ Paisley was or did he mean an altar boy?
Just think how good the Dutch would have been if Big Virgil had been playing !!!!
well done holland, but have to say some poor defending from spain, and there goalie well not playing in goal for real mardid ,says it all .
The end of an era for Spain and Barca
Pope Francis…..YES..or..NO…hmmm
If the Pope says no….will the orank bassas change to yes?
World Cup 2014. 11 goals in first 3 games.
Not a bad start, controversies ‘n’ all!
A play a pie and a pint on beeb2 just now,
Very good.
Any fitba on today, no heard anything I hate the Celtic close season