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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sydneytim
The 4-0 win in the 1969 Scottish Cup Final was unforgettable. Big Jock applauded the players and, most important, thanked the fans, too. That was the final part of the jigsaw. A great day altogether. Billy scored in the first minute, Bobby Lennox added a second and George Connelly netted the third – all before half-time. Stevie Chalmers got the fourth. Happy memories!
Bertie is in full flow now! Hilarious.
Bertie
I believe you were a good friend of my uncle Frank Reilly from Larky. Can I ask you where your birthplace was.
tinytim
Two great players – Danny was a right-back and Tommy Gemmell was the best left-back in the world.
Bertie Auld
If you had a £1 for every good memory you’ve given Celtic supporters during your life, you’d be the richest man the world.
My question is do you agree left-footed footballers are just naturally more smooth, slick and stylish than right-footers or do we have to work at it?
BertieAuldaforeverhero
Bertie
I have a memory of you moving in from the wing and smashing home a shot from the edge of the box in a game before you went to Birmingham.
It would be the time of Jim Conway, Alex Byrne etc. The guys taking over from Bobbly Collins and Charlie Tully.
Can you remember who were in the same line up with you in the season before you went to Birmingham?
derbyshirebhoy
We had a guy on the right wing called Brown who played wearing glasses. He was a flying machine.
Let me take this opportunity to thank those wonderful fans at the Greenock Celtic Supporters’ Club last Friday. What a fabulous night was had by all. Be sure of this – I’ll be back. If I’m invited, of course.
Auldheid
14:39 on 13 June, 2014
If its all about the money then how come Celtic entered profit with Sevco gone?
———————————
Downsizing?
Paying less wages?
Signing cheaper players?
Sale of Hooper and Wanyama?
Just a few things which in my opinion have contributed to a healthier balance sheet but also have led to fewer Tims actually going to watch the team on a Saturday or Sunday.
eddie
Yes, there were so many good stories about Lisbon. I might get round to writing a whole book about those memories. Impossible, really, to pick out one.
HAMILTON TIM
Shockingly cynical post.
Which wins today’s prize for being pretty much bang on the money.
el madrigal
Lisbon was a stepping stone which Celtic would have achieved because we had a great history. We had the Coronation Cup, the Exhibition Cup and St Mungo’s Cup, but I believe the European Cup success was the greatest of the lot.
Bertie,
From memory, am I right in saying you were against the admission of Ross County and Caley-Thistle to the league in 1994, saying that Gala Fairydean shhould be admitted instead?
If you were, (ore weren’t!), what’s your opinion of how they’ve both done since?
If VVD is sold, a lot more Celts will become even more disillusioned, with the strategy.
Maximum respect to Mikael and Emilio for doing what they did.
BMCUW
Sceptical more than cynical :-)
……but with good cause, I believe.
I know we are a bit behind, but the stories are brilliant.
Be patient:-)
BMCUW
HT is not cynical.
He is merely suffering from a dead leg and bruised ribs.
I may be responsible for some of his suffering.
Bertie
You very kindly signed a book a couple of weeks ago for my mate Mick, who we’re taking to Dublin for his 50th. Can’t express my gratitude enough for this, you’re his favourite Lion and he’ll be bowled over by this. You’ll have definitely made another “auld” Bhoy very happy.
I’ve got a signed official programme from this season’s Champions League Final and I’ll get Tommy and Yogi to sign it tomorrow. Email your details to david@cqnmagazine.com. We’ll put all entries in the European Cup tomorrow at the Celtic store in Argyle Street in Glasgow and I’ll draw a winner. By the way, there’s a great piece on Celtic in it. FREE TO ENTER.
Hamilton tim.@14:47 Totally agree with you :). Spin spin spin about finances
Best one was PL saying that our financials were wonderfull
Next day Aberdeen strolled through our underinvested midfield to knock us out SC
Hertz sign James Keatings and Morgaro Gomis
SFTB/BMCUW
SFTB could step in for Davie Hay or possibly even wee Bertie himself :-)
SilentAssassinCSC
jobo balde
I had no dough and I had to earn a crust.
petec
absolutely, and why shouldnt they ? No way we should become a stepping stone for someone to go to an english club with nowhere near our history/achievements. Unfortunately, as you know only too well, its all about the cash now.
Fitba’s pretty much fecked now Im afraid
Hamiltontim is praying for Oscar
14.47
Just making a general point that no-one has yet seen a Celtic plc Balance Sheet which reflects the sales of Hooper, Wanyama and Wilson.
That fun lies ahead of us all later this year.
Hi Bertie …not a question but a thank you. You may not remember but I met you when I took my six year old son to the stadium for a tour last November. As I parked the car I saw you were just about to drive off and waved at you and shouted your name. To my delight you waved back and I ran across the car park (abandoning my six year old!) such was my excitement at meeting a Lion. I was nine years old when the big cup was won so you can imagine my delight at meeting one of my heroes for the first time. Eventually my six year old navigated the car park (!) and joined us at the car where you gave him a signed Lisbon Lions certificate which is on his wall at home and is often discussed. He now knows who Bertie Auld is and always comments on you when ne sees old footage or pics. It’s great to meet your hero but even better when they take the time to make you welcome and make the day of a six year old boy and his fifty seven year old Dad!! Thank you Bertie…you’re a star in the true sense of the word.
tbj
Liam Henderson looks like he has the potential to become a very good player. He has come into the first team, shown a lot of enthusiasm and a lot of class.
ht
My brother was a bricky, but maybe your dad knew Ian from the sites.
Ha Ha Bertie, MWWWAAH x
cadizzy
I always told Greigy at least we were on a win bonus.
Paul67
Don’t even want to think about it but say they do get promoted this coming season. They will sell 50,000 season tickets at a good price for their first year ‘back’ in the SPL. That’s £20m. They won’t be able to compete but give it a few years at that and they will start to make money and will be able to at least compete will they not (if they can sort out their structure and system which seems to be bleeding money)?
If they fail to get promoted then the bears will not be dancing! I’d imagine interest will wane and they will lose a generation of young fans. This really is the time all the other clubs should be doing their utmost to attract young supporters to their team.
hamiltontim
The Green Brigade bring a lot of enthusiasm and noise to the ground on match day. They bring a lot to the ground and help the players, too. But I’ve got to be honest and say they should be aware of what Celt in stand for. Honestly, lads, leave the agendas at home – keep supporting the team.
OK…I’m cheeky enough to ask a second question…(not that the firsts been answered mind you lol)
Anyway Bertie, spill the beans…
……..why weren’t you passing to Big Yogi???? ;-)
Hamiltontim is praying for Oscar
Yes but as Paul points out without CL money we have to downsize or transfer and you have not allowed for the position of debt we were recovering from after three years away from Europe when that mob were cheating us out of CL money..
That will have eaten up some of the transfer money.
I simply fail to see the money benefit to Celtic of having TRFC in the top tier as their main competitors for CL money.
There are two risks involved
1. Having an uncorrected rival with support from the national association that is doing its best to keep TRFC alive and appoints referees back in contention for that money. Celtic might not be able to stop it but the idea they welcome it is plain daft from a money angle.
2. Celtic have no control over what happens at Ibrox and TRFC’s return to the top tier is not guaranteed. Some business plan that includes risks that do not need top be taken.
We get on with the same strategy that has put considerable distance between us and TRFC not slow down until they catch up.
To make the return of TRFC profitable to Celtic, the Celtic support would have to stop turning up in huge numbers because they are bored with winning titles and having to go along to European nights every season.
Aye right.
Bertie
Aye its me again!
Love yer biography – read it a few times.
Great stories about yer auld(!) faither, with the inevitable fag in hand! And yer mammy of course!
Btw my favourite goal of yours was the one against Fiorentina in 1970.
HH!!
Hamiltontim is praying for Oscar
14:59 on 13 June, 2014
SFTB/BMCUW
SFTB could step in for Davie Hay or possibly even wee Bertie himself :-)
SilentAssassinCSC
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Seems like my Guardian Angel was just thinking of my physical being and not my Well being, after all.
SFTB is Davie Hay on here and I’m the best Pool player this Gathering has ever known.
You couldn’t make it up.
The Beauty of it all, it is just Normal people, doing Normal things.
approach and IDentify
rocktreebhoy
I still think we missed a chance in not bringing in Keane to replace Lennon. I think he would have been a big asset to our club. He may be outspoken, but I don’t think there is anything wrong with that. He would have made sure we would have made an impact in the Champions League – that’s where he would have wanted us to succeed. I think he has all the ingredients we require.
setting free the bears supports res. 12 & oscar knox
14:57 on 13 June, 2014
BMCUW
HT is not cynical.
He is merely suffering from a dead leg and bruised ribs.
I may be responsible for some of his suffering.
—-
His suffering????? Hmmmm