Financial fundamentals, credit where due at Ibrox

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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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  1. leftclicktic We are all Neil Lennon on

    Was having a wee sabbatical from blog but would have regretted the rest of my days missing the opportunity to say simply

     

    Thank you for a lifetime of memories and for being you Bertie.

     

     

    LEGEND!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  2. Monaghan1900 on

    reilly1926

     

    13:23 on

     

    13 June, 2014

     

    Monaghan1900: That would be this one:

     

     

     

    The very one!

  3. Bertie, amongst yourselves, did the Lions have any strange nicknames for each other, if so can you reveal any now?

  4. Bertie,

     

    great wee documentary on Alba re Jock.

     

     

    Did you enjoy taking part and its outcome?

     

     

    Great havin you on Bertie

     

    HH

  5. Bertie, do you think Henrik would have kept a lion out of the team had he been a Celt back then?

  6. Bertie

     

     

    Any truth in the rumour that you were in with a shout for the Celtic job in 1978 and 1983?

     

     

    HH!!

  7. Bertie, many thanks for giving up your time this afternoon.

     

    One of the hallmarks of the greatest Celtic side ever is that every one of the players has always given time to the supporters and that is hugely appreciated. That’s why you guys really are legendary – world class on the field and even classier off it.

     

     

    Can I ask you about the Davidson Cup Final in 1970 against Aberdeen? What are your thoughts looking back now on that match?

  8. cadizzy

     

    I never played alongside Eddie Plumley at Birmingham City. I think we just missed each other. I was there in 1961 and left four years later.

  9. Beatbhoy

     

     

     

    I am meeting Raymond at 2pm on Monday for a few hours. I will give you a call before I send him on his way so that you can have a chat

  10. Monaghan1900 on

    Bertie,

     

     

    I remember the Lisbon Lions’ last game in May 1971 – 6-1 against Clyde and I think it was your last game. I was in the Jungle at the front and can still see in my mind’s eye you sitting on the ball and Jock Stein standing at the other side of the park waving his arms and shouting. He did not approve which surprised me more than a bit – I loved it. Did he give you grief after the game?

  11. joe fillipis haircut

     

    No, I’ve never me the new manager, but, obviously, I hope he will do well.

     

    I don’t know enough about the lad to make a prediction about what he will achieve or how he will set out the team. One thing is certain – the fans will give him every encouragement and, hopefully, he can take it from there.

  12. Bertie

     

     

    I wondered about that a wee bit as he was a wee bit vague about dates. At least he wasn’t fibbing about his job at Watford

  13. Hamiltontim is praying for Oscar on

    Bertie

     

     

    I was member of the Willie O’Neill No1 which left from Bairds, often I was too much in awe to speak to you and I NEVER, EVER went to you to be served.

     

     

    My question…..

     

     

    The all time Celtic best 11 included some players who weren’t ‘Lions’. Did you agree with those 11 selected and if not who would you have changed?

     

     

    Thank you and Hail Hail.

  14. Joe Filippis Haircut on

    Bertie. Thanks for your answer to my question and best wishes for the future.H.H.

  15. bertie

     

    we have just returned from a coach tour

     

    of italy , on the tour was a brummie of the

     

    same vintage of ourselves.

     

    when he found out i was a celtic fan the first

     

    thing he asked was how is bertie auld doing.

     

    he then regaled us with tales of your time at

     

    city. you were a hero to him and his mates.

     

    i assured him you were well.

     

    so bertie you are not only our hero but made

     

    a impression with these guys as well

     

     

    hail hail

  16. Richie #TeamOscarForever on

    Hail Hail Bertie!

     

     

    What are your thoughts on the new away tap?

  17. On the new manager, it’s obviously very important that we do turn out in huge numbers in the new season.

     

    Also, CQN have sorted out two Cups – the European Cup and the SPFL championship title – for the supporters to get their pictures taken with me, Big Tam and Yogi at the Celtic store at Argyle Street Glasgow tomorrow between 1pm and 4pm.

     

    And, remember, to get Yogi or Tam’s book – or both! – for Father’s Day!

  18. thomthethim for Oscar OK on

    Hi Bertie,

     

     

    I fondly recall one of your visits to Donegal.

     

     

    You and I, two old Maryhill boys, bellied up to the bar in Sharkey’s, Annagry, talking over old times that we both shared…….you on the field, me on the terracing.

     

     

    Thanks, Bertie, for all the memories.

  19. Hail Hail to all & especially Bertie Auld, you may remember we met in Drogheda at the St Margarets CSC dinner dance last year & we chatted on the sunday morning about everything including your time in birmingham & the fact that i was born there, we even spoke about my 11 year old who is a very promising player here in roscommon. You were an absolute gent & fully warant the tag of LEGEND

     

    Hail Hail

     

    Navanbhoy

  20. Hail Hail Bertie,

     

     

    Which opposition player gave you the most problems ?

     

    (Apart from wee Jinky in training obviously)

     

     

    Always a pleasure to see you on TV or hear you giving your opinion of footballing matters.

     

     

    I’m delighted to have had the enjoyment of watching you play many times.

  21. Paul67

     

     

    The Rangers will return to SPFL with their 52 titles still in place.

     

    This notion will be supported by the SFA ,and therefore by UEFA.

     

     

    Celtic’s stance on this is an utter disgrace.

     

     

    They should have been leading the campaign to assert the truth that the club died with the company and that the history died with it.

     

     

    I have never been so angry and bemused by what this board has allowed to go on under their watch.

     

     

    They are sanctioning blatant lies .

     

    They are failing to support their own supporters .

     

     

    As for The Rangers never being able to compete with us .

     

    I couldn’t disagree more.

     

     

    If they get into the CL and we don’t ,the whole balance of the scales tips in their favour.

     

     

    TT

  22. j67

     

     

     

     

    13:34 on

     

     

    13 June, 2014

     

     

     

     

    “bertie

     

    we have just returned from a coach tour

     

    of italy , on the tour was a brummie of the

     

    same vintage of ourselves.

     

    when he found out i was a celtic fan the first

     

    thing he asked was how is bertie auld doing.

     

    he then regaled us with tales of your time at

     

    city. you were a hero to him and his mates.

     

    i assured him you were well.

     

    so bertie you are not only our hero but made

     

    a impression with these guys as well”

     

     

    If one of them was called Eddie Plumley, then he was making it all up 0.;)

  23. Bertie

     

     

    What are your thoughts on ‘Bairds’ closing down?

     

     

    Had some great nights in there.

     

     

    …but I cant really remember!

     

     

    HH!!

  24. The Battered Bunnet on

    Bertie,

     

     

    You’re one of the Celtic Greats by virtue of Lisbon and 9 in a row.

     

     

    Having seen the time you give to the fans on match days, and the manner in which you represent yourself and the club, you’re one of the Great Celts. Thanks.

     

     

    Hail Hail

     

     

    TBB

     

    Blowin’SmokeWhereTheSunDon’tShineCSC

  25. reycatcher

     

    My first game for Hibs at Easter Road was a friendly against Middlesbrough, who had just signed a certain Nobby Stiles from Manchester United. He clattered me in an off the ball challenge and left me with a broken collarbone. Physio Tam McNiven told me I had to come off, but In persuaded him that I should go back on. Five minutes later, Nobby was going off on a stretcher and was asking him, ‘Are you okay, son?’

  26. I posted a question to Bertie at 13:08.

     

     

    I did not get an answer.

     

     

    Is Bertie actually on the Blog or is he being read the questions?

     

     

    Are the questions being vetted?

     

     

    Otherwise what’s the point.

     

     

    Goodbye.

  27. Bertie. Good evening from a chilly Sydney. I was amazed when I met u in Sydney a few years ago and how friendly u were

     

    I mentioned to you how sad I was when Jinky passed away , but as he was not in my era , I told you how I felt when Tommy Burns left us, as he was in my era and how it effected me

     

     

    Anyway can I ask u a wee question.

     

    What was ur favourite game against the old club called rangers and why ?

  28. Bertie Auld.

     

     

    Danny McGrain or Tommy Gemmell?

     

     

    You have to pick one .

     

     

    TT

  29. As Bertie has just confirmed CQN will have TWO trophies tomorrow at the book signing event at Celtic shop in Argyle Street.

     

     

    The Championship Trophy and European Cup!

     

     

    And three Lions! Bertie, Tommy and Yogi.

     

     

    Starts 1pm….

  30. 79caps

     

    No, that’s not true. Wee Jinky was going on about them being film stars while most of our players had their false teeth in Ronnie’s cap! Truth is, I was concentrating on the game ahead.

  31. hendrix67

     

    Big Davie was a lovely guy who became my reserve team coach at Partick Thistle. The broken leg incident at Ibrox was a complete accident.

  32. derbyshirebhoy on

    Hail Hail Bertie

     

     

    Ifirst saw you as a flying winger with the “Sons” at Boghead. Did you feel that spell helped your development and were there any players in that side you felt were capable of better things?

     

    I seem to remember the right winger was something of a speedster.

     

     

    For me the 1965 final has always been Bertie Auld’s final.

  33. Philbhoy – doc is reading questions to Bertie. He is at Minx question at around 1.15. Bertie is answering each one and Alex Gordon is trying what Bertie is saying. I am here as is my wife Karen. No sign of Campbell Ogilvie – he may appear later.

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