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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Bhoylo83, of course it does, wire in.
be careful though, Drink responsibily and all that!
Geordie Munro
In mine, too. Hope Chile and Oz put on a show to match the great atmosphere in the Arena Pantanal.
VP
Sorry for the delay some of us choose to do a wee bit of work on a Friday night
Anyway those who were of the opinion that we only had to turn up in Amsterdam and the points were in the bag and that the state of Dutch football was comparable to the Mickey Mouse set up we compete in
Doc
Yoor not the boss a’ me…
Fatherdamocsc
Bhoylo83:-)
Knock yersel oot.
After the bottle you may well!
Sanchez 1-0 Chile
cliftonville celt,
Wee touch of the Alf Stewart there?
AR
Bollocks
Chile 1-0 1st chance
1-0 to the jalapenos
1-0 Chile, Sanchez, sharp finish.
Oft
2-0
TheBhoyfromOz, disnae look good, looks even worse now, ouch.
Make that 2
mickbhoy1888
23:07 on
13 June, 2014
VP
Sorry for the delay some of us choose to do a wee bit of work on a Friday night
——————————
I’m surprised you have time to type.
motoraffthefeknroad :O(
Ozzies getting gubbed too
ouch!!
long night for the aussies i think.
Aw well, it was fun while it lasted, hope that is.
Doc
Hahaha
antipodean red
23:11 on 13 June, 2014
cliftonville celt,
Wee touch of the Alf Stewart there?
AR
————————————————–
Well spotted my friend
Alf Stewart is a legend FACT !!!!!
Chile.. Red hot tonight. Been peppering the Aussie goals…apols to ex- pats.
2-0 Chile
doc
Let me know when you and the ghirls are wanting to come down to the ole ferm, and you will be made welcome when ever you decide. You know you will. :-)) Unfortunately there will only be poultry to excite the young uns, but they can have the pleasure of fetching eggs from their roosts. :-))))
Weefra HH praying to Wee Oscar.
cliftonville,
I’ve just started my shift here on a flaming Saturday morning so can’t see the game, sounds like we could be doing with a bit of Alf out on the park, flaming mongrels!
AR
Are they using goal line technology in this World Cup ? Or are ITV showing off ?
Wonder what this years budget will be for our manager
Last Summer it was -12.5m :(
WeeFra, they’ll be feart, then settle in and collect the eggs. Will be July before I can get time off. Busy at work and a kitchen refurb at home.
Just being on the farm will be great for them.
antipodean red
Frantically trying to remember Alfisims !!!!
Mate you don’t want to watch this TBH – think Cliftonville v Celtic !!!!!
Playing like drongos
Chile con carne and battered tripe.
Ah well,that’s the group stages for ye.
doc
Ach behave yersell, the weans will enjoy every minute their here. :-)))) Our hens are of the variety that love to get lifted and petted. How cool will that be for the kids? Bet you end up having hens in yer garden after a visit here. Hehehe.
Weefra HH praying to Wee Oscar.
Morning Timland from a warm and subdued hun free mountain valley.
Never saw that coming, still, had both to score, and a wee dbl with Chile @ -1, so far so good.
Chile and Columbia will be well worth the watchin, as long as they get a fair crack of the whip.
Auldheid
In a different bar tonight, tele was outside, place was mobbed, good atmos despite the result.
Wee NatKnow supporting the Footeroos.
Sure they can bounce back…
WeeFra, they will love it, watch them, they’ll be timid to start with, then they’ll love it.
cliftonville celt,
Stone the flamin crows, you’ll enjoy this
https://www.youtube.com/watch?v=OdIX1b8uBI0
AR
TET
Well, I suppose they have to ‘take it on the chin’ after the fantastic run of success they’ve had since 2008, after so many years of disappointment and under-achievement.
Oh and congratulations to Miss Doc, first day at work today, dig money due on payday:-)
2-1. hope for the Aussies.