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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McBhoy
12:38 on
13 June, 2014
Rump Rangers has a certain ring to it.
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Hump Rangers is better!
Any sign of a number 2? Any news Paul67?
Hamiltontim is praying for Oscar
12:48 on
13 June, 2014
Why? Even if they sell that many and increase the price to an average of £500 that only covers the cost of infrastructure. Not wages.
In order to stay in existence they need to downsize all over the place and still expect sell-out crowds paying top dollar.
Or Pump Rangers
PFAyr
How exactly would Celtic have gone about destroying TRFC?
How about they persuaded the other clubs that TRFC were really a bad thing and they should all vote TRFC out of the league and Celtic agree to pay the other clubs the cost to them of doing do?
If you are going to blame someone for doing or not doing something then surely you have to take into account their power to do so.
So if my cunning plan is unrealistic what is yours?
We are not able to destroy TRFC but we can try and minimise the damage they can do us and the other Scottish clubs who are now benefitting from a weakened TRFC .
That is what I would expect of Celtic, limit their toxicity and maybe it will poison them further.
Bertie
Bertie
Bertie
dksglen
12:52 on
13 June, 2014
Any sign of a number 2? Any news Paul67?
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I saw one earlier, but at the push of a button it disappeared.
I can understand and this Music, I loved, hardcore.
Wind it Up
Bring them on, after the Global face of Corruption, all ye can do is Stand up straight and say. I’m off oot.
hoopy-doo. We have a new unkown manager to us we dont know who we will sell we dont know who we will buy.So selling SBs is no easy matter. H.H.
HT
It may worry you …but it’s part of the PLCs business plan
Rump,Hump,Pump,Dump,Thump,Bump,Slump…they all fit.
McBhoy
“Rump Rangers has a certain ring to it.”
Aye, There will be twerking in the streets of Rump tonight”
Bill McLaren csc
reilly1926. Not bad that sevvy losing 2 stone.
They could maybe make some money by packaging it as the sevco diet.
Auldheid
Not going to argue with you …waste of time
The arrival of Sevco into the SPL next year is part of the business plan ……
It’s all about the money …..
Petec/weeminger
Apologies but this’ll need to be short.
The additional revenue and the greater likelihood of better sponsorship deals etc.
Oh and the thought of thousands more of their scummy followers on the streets of Scotland most Saturday nights.
Hail Hail Bertie!
It must be a great honour for you to talk to a Podium winner on CQN!
I was reading about a country which had two football players who made up the best midfield combination on their continent, and proved it by winning that continent’s major trophy in fantastic style with their club.
Yet, these players were never chosen to play together for their country.
That can’t be true, can it?
why should it worry if thems have 40.000 next season ,if they get promoted and thats a big if, before they went out the game,there were 40,000 plus at there home games,and we had 50,000 at our home games .and that my friends is what will happen when thems play in the same league as us,
Bertie, since it`s your first time on CQN it has to be asked………..well, are you?
Mr Auld
Was the free kick you took against Dukla Prague pre planned in training where you steadied the ball, then took a quick free for Willie Wallace to score, or was it a one off, that took Dukla by complete surprise.?
Hail Hail Bertie Auld Celtic Legend.
Reilly
Wait until he realises they were liquidated ….
Cmon Bertie where are ye?!
HH!!
Where’s the Great Man?
Does he get fined for being late?
reilly1926
12:46 on 13 June, 2014
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.
________________________
If that’s what happened to him in administrakion, he must have feckin top himself when liquidation came along, oh here wait a minute………………..
They’re still alive.
Are you here yet Bertie?
Do you really think we missed a trick in not recruiting Roy Keane as our new manager? Personally I think his sometimes abrasive manner would have been on display more often than not and ultimately it would have all ended in tears.
Bertie can I just say thanks for coming on the blog. I have 2 questions that I will get to.
I have met you 4 times (all in the past 2 years) and it is clear that you would be happy to sit and chat to the fans all day long. The entire squad of players from the late 60s/early 70s are just so humble.
Anyway thanks again for winning that BIG CUP. We are eternally grateful.
The most recent time I met you was at Glasgow Airport when you were going to Lisbon 3 weeks ago. You signed my retro Shamrock top for me. You mentioned that this was one of your favourite tops and that if we brought it back there would not be enough material in the world to keep up with the demand.
1. With that in mind what do you think of our latest away shirt?
2. Was Bobby Murdoch the best player you played alongside?
PS……can you not have a wee word with those at Celtic Park about bringing out a version of the Shamrock top?
BMCUW,
if yir no fast etc. Unless its to the bar….although to be fair I did learm from the Meister himself, Mr Dick Byrne of this parish :-)
Things OK thanks. Had lots going on recently both work and family so CQN time been very limited, usually to article only. But very excited about the World Cup. Like a big kid. I love the WC. Always have. Although that penalty last night did have me a little despairing at how the refs may already be “homers”. Brazil looked decidedly shaky at the back. Cant help but think that Di Maria, Messi and co in full flow could very well rattle them in their own back-yard!
Anyhoo…..as to the Indy vote, I honestly still have not made up my mind. But if forced into voting tomorrow id be in the No camp. Various reasons too extensive to go into just now. But as the great majority of my work is export (and my salary substantially based on said exports) seeing exchange rates of Scottish notes at up to 40% less than BoE notes in several nations where I do business in, hardly has me burning with desire for the Scottish Pound…..
But thats for another day.
Hope you are well and enjoying yourself as always :-)
HAIL! HAIL!
Token
PFayr supports WeeOscar
12:57 on
13 June, 2014
Auldheid
Not going to argue with you …waste of time
The arrival of Sevco into the SPL next year is part of the business plan ……
It’s all about the money …..
===================================
We are supposed to stop them, how exactly?
Celtic have been planning for something that no one would have bet on, an operation run by spivs eager to get the biggest return on their money in as short a timeframe as possible?
Ok then.
Here we go…here we go! Hi, folks, Bertie Auld here being called into action once again to help out two old mates.
I carried Big Tam and Yogi for years on the field and now, alas, I’m still doing it all these years later off the field.
Only joking, fellas!
Right I’m here and good to go.
We’ll get started in a minute once I get my breath back. Okay?
Hail Hail Bertie
Have you ever felt the two goals you got against Dunfermline{to keep us in the game, twice )have been forgotten about a bit because of Big Billys winner ? Not to mention the only goal in Final v St Johnstone
Winning Captains
Can you ask Bertie to check back a wee bit for questions posted just a bit too punctually when he’s ready to log -on?
Sitting here with. Bertie Auld!!!!!!!
@ bobby russell
12:53 on 13 June, 2014
Very good!
Auldheid
“How exactly would Celtic have gone about destroying TRFC?”
While I would use a different verb from “destroy”, I would have wanted my club to query, with the support of other club chairmen preferably, whether the SFA were intending to follow standard company law practices to prevent “pheonixing” of a company or club which had been liquidated, when they sold a license to a new club which intended to pretend it was an old one? I would have also asked the supplementary question of whether they intended to collude with the pretence on their official records?
Legitimate questions, asked by a legitimate member club or group of clubs, without a legal challenge and without any pejorative or aggravating comment toward the club in question.
We do not appear to have undertaken this minimal step.
Auld Doc, if you have a question text it.
In ten years time their demise will be airbrushed from history.
Never spoken about, not even acknowledged and anyone highlighting the truth will be ignored at best.
Evidence for the above ? Manipulate history – it’s what they do:
The riots and international incidents related to Barcelona 1972.
How is the event portrayed today ?
Manchester 2008. That really was just 6 years ago. Airbrushed, the denial was taking place as the barbarism unfolded.
It’s what they do, through a curious mix of lies, manipulation and intimidation.
Welcome Bertie, I’ve stayed up from the nightshift to read your patter.
One of your best one one liners was regarding a question about a former team getting nine in a row, I’ll leave you to explain it. Hail Hail
Doc
Can you ask Bertie to check back a wee bit for questions posted just a bit too punctually when he’s ready to log -on?
Bertie, how would big Jock be towards anyone if they dived and rolled around like some players do today?