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.

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996 Comments

  1. Never saw that coming.

     

     

    Xavi’s stats are usually very impressive- not tonight they won’t be.

     

     

    Another good keeper has an off night. Pique was dancing on ice and they never used their first half weapon of Jordi Alba & Iniesta to any effect.

     

     

    Makes the group interesting. When Chile win tonight (sorry Oz bhoys) they might be tempted to frustrate a desperate Spain team in round two match. Will Del Bosque stick or twist? He is desperately short of alternatives to replace the misfiring centre backs and centre forwards. My guess is he’ll go back to the Fabregas false no.9 formation.

  2. thebhoyfromoz on

    Fantastic performance by the dutch.

     

    Now for the main event of the day, as a naturalised australian,

     

    AUSSIE, AUSSIE ,AUSSIE OI, OI,OI.

     

    MON THE GREEN AND GOLD

  3. voguepunter

     

     

    22:15 on 13 June, 2014

     

    If the Pope says no….will the orank bassas change to yes?

     

     

     

    _______________

     

     

    HaHaHa, was thinking the same.

  4. A Salvador Dilly Dali by Casillas sees Dutch Masters run riot. :-)

     

     

    Don’t know what I’m laughing about – gubbed my coupon! :-(

     

     

    C’mon the Red Hot Chiles – need a 2 goal margin to break even.

     

     

    Bet nobody got that score in the Predictor!

  5. Back to matters Celtic – how do we find out how many season tickets have been sold or can someone enlighten me?

  6. Manaus ,where England play first game…1.8 million population and no main roads in or

     

    out.What happens when the boats go on strike ?

  7. Eddie, absolutely nothing, honest, I think he simply forgot he’d agreed with you to do it

     

    He would not intentionaly do that. Just a mistake.

  8. Margaret McGill on

    I am convinced FIFA World Cup refs are coached in the FIFA way

     

    We’ll find out soon enough when England play. I don’t really want England to do well as long as they are beaten fairly

     

    I think there may be some Qatari retribution in store for England though

  9. Good evening all

     

     

    Wit a game wi the ole world cup hoders. Taken apart, big time, by the possible winners. Cannie wait till Celtic are back among it. Miss ma bhoys sooooo much. :-)))

     

     

    Weefra HH praying to Wee Oscar.

  10. Saint Stivs

     

     

    22:18 on 13 June, 2014

     

     

    ‘A play a pie and a pint on beeb2 just now,

     

     

    Very good.’

     

     

     

    ###

     

     

    I assume it’s on because David MacLennan has died.

     

     

     

    He wrote this.

     

     

     

     

    If Scotland votes for Independence

     

     

    Will the limestone lochs of Durness become more limey

     

     

    Will Scots porridge oats be much more porridgey

     

     

    Will Arbroath smokies be far smokier

     

     

    And make our Cullen Skink a whole lot skinkier

     

     

     

     

    Will Independence make the heather bloom more purple

     

     

    The gorse more yellow sea campion more pink

     

     

    And will the bluebells below the Duke’s Pass in the Trossachs

     

     

    More thoroughly carpet the woods

     

     

     

     

    If we vote yes

     

     

    Will the Tartan Army throw off its inhibitions

     

     

    And really get themselves about

     

     

    Will Celtic Rangers Hibs and Hearts at last command the passion of the fans

     

     

    Will Inverness Caley Thistle find a more patriotic name

     

     

    And will the Sun and Daily Record finally give some space to football

     

     

     

     

    Will the Proclaimers rediscover their Dundee accents

     

     

    Will Phil Cunningham get his act together on that box of his

     

     

    And Aly Bain get to grips with his Shetland fiddle

     

     

    Will Paolo Nutini sound more Paisley

     

     

    And Capercaille a bit more Gaely

     

     

     

     

    If Scotland was left to go it alone

     

     

    Would Bannockburn be undeniable

     

     

    The Saltire flag more flyable

     

     

    The Bank of Scotland liable

     

     

    The crofting way of life more viable

     

     

    The Wee Free Church more pliable

     

     

    The Orange marchers justifiable

     

     

    The summer weather more reliable

     

     

    And would the deep fried Mars bar cease to be as fryable

     

     

     

     

    If Scotland goes its own way

     

     

    Will the Langholm Common Riding be more common

     

     

    Will the cabers birl further in bonny Braemar

     

     

    Will the flames of Up Helly Aa more brightly burn

     

     

    Will Abermuchty and Auchtergeldy take it in turn

     

     

    To have the longest village main street in the land

     

     

    Will smir and dreich and gloaming forebye

     

     

    And drookit and glaikit an’ aw naw an’ och aye

     

     

    Burst forth like a spring when Scotland is free

     

     

    An’ gallus an’ stumour an’ oh michty me

     

     

     

     

    If Scotland says aye

     

     

    Will St. Andrews be the home of golf

     

     

    Will the curling stones roar on the Lake of Menteith

     

     

    Will the camans clash loud in the Camanachd Cup

     

     

    Will the Guest House in Oban be always full up

     

     

     

     

    Will the Rest and Be Thankful be thankful at last

     

     

    The Beallach to Applecross more like a pass

     

     

    Will the Old Man of Hoy and the Old Man of Stoer

     

     

    And Buachaille Etive Beg and Buachaille Etive Mhor

     

     

    Stand taller and prouder and more recognizable

     

     

    And the chip on oor shooders a wee bit less sizeable

     

     

     

     

    Will Glaswegians be more gallus

     

     

    Will you have had your tea in Edinburgh

     

     

    Will Aberdonians be more mean

     

     

    And will all the stereotypes

     

     

    Of every city town and village in the land be reinforced

     

     

     

     

    If Scotland does its ain thing

     

     

    Will Scotland be more Scottish

     

     

     

     

    I hae ma doots.

  11. Margaret McGill on

    So the deid are no deid yet and when it comes to an abundance of not so deidness and lack of deidness seems the deid are alive and well

     

    Ok sickly but no deid

  12. Del Bosque has to shoulder majority of blame for key decisions tonight. Unbalanced team selection with Alonso / Xavi and Silva/ Iniesta wanting to fill the same space. Badly lacking width & pace with Pedro on the bench and Navas watching at home. De Gea was the in-form keeper and the selection of in form Brazilian Costa seemed to split the camp. I would have led the line with Negredo (also sitting at home).

     

     

    Sadly cannot see them recovering, looks a game too many for the Barca boys.

  13. Ernie,

     

     

    Its an OK poem.

     

     

    Line by line though loads of arguments, David says he is an international list with no borders,

     

     

    A dreamer maybe.

  14. Margaret McGill on

    ernie lynch

     

     

    22:44 on 13 June, 2014

     

     

    You forgot some

     

     

    Will the BBC talk more shite?

     

     

    Will Celtic be cheated out of 21 more trophies

     

     

     

    Eh aye

     

     

    So!

  15. How are you tonight Ernie? Enjoyed our wee tet a tet the other night. I really appreciate your input to the indy issue, just because I disagree with you, does not mean I don’t respect you. I would really enjoy a pint with your good self. Defo not talking politics though. :-)))

     

     

    Weefra HH praying to Wee Oscar.

  16. thebhoyfromoz on

    What’s the chances of CQN declaring a moratorium on the referendum debate until september?

     

    C,mon the Socceroos

  17. Margaret McGill on

    dixiedeans

     

     

    22:47 on 13 June, 2014

     

     

    I”m thinking it may have something to do with gubbin the World And European champions 5-1 in the World Cup 2014 after being somewhat peeved at losing the last World Cup to same deity entitled twats

     

    Or

     

    Could be something else? :)

  18. Ok, away to watch the footie. Take care all and no squabbling now. :-)) KTF

     

     

    Weefra HH praying to Wee Oscar.

  19. WeeFra, I agree I would love to sit down with Ernie over a pint, I would disagree about not talking politics though, all subjects would be on the table.

     

    A ghuy with a different point of view will teach you so much more than someone who agrees with most of what you have to say. Top posters, bith of you.

     

     

    I told the girls we were going to the Farm during the holidays, they are very excited about being on a farm.

  20. 16 roads - Celtic über alles... on

    15 league titles and 26 cups.

     

     

    Obviously not all robbed from Celtic, they cheated every club in Scottish football.

     

     

    All bought and paid for by the Bank of Scotland.

     

     

    Lost revenues, Europe etc.

     

     

    Fraud probably runs into over £100million.

     

     

    Sad but true.

     

     

    HH.

  21. C’mon Chile!

     

     

    Doc

     

     

    Im tempted to open that bottle of whiskey

     

     

    Iv been waitin for a ‘special moment’

     

     

    This counts…. right?

     

     

    B-)