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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Bertie Auld
14:47 on
13 June, 2014
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.
Glad I made it along Bertie, bloody great night.. I’m sure your presence will be appreciated anytime in Greenock (Gourock for me :-)
Hail Hail
My previous post was supposed to include the information, from Celtic’s 2013 accounts, that it will be August 2015 before all the monies due from the three sales last summer are received by the club, i.e. not even in next year’s annual accounts.
Pressed post instead of return in error.
pfa
That was very kind. Thank you.
justafan
Joe McBride was a real gentleman and a great friend. He is missed sadly and was a fabulous player for Celtic. If he had been fit, he would have given Big Jock a problem for Lisbon no doubt about it. The injury he received at the tailed of 1966 was devastating.
Mini-huns and big Huns both signing players now, Hibs have no manager but still have an assistant manager on the books because he was on holiday when the boss got the bullet and no one has had a chance to speak to him yet.
Shambles of a club.
sftb,
you bullying poor wee HT on the park again??
Between you on the pitch and Minx off it, no wonder that poor bhoy doesnt know whther hes coming or going.
:-)
HAIL! HAIL!
Token
Hi Bertie
As a fan thanks for all you done for the club,both on the pitch and off it in representing our club.I recall you at a couple of events in 1994.
Who,as an opponent,made you think,wow wit a player?(training apart :-)
HH
Bertie
A genuine, heartfelt thanks for answering my questions.
You were part of our club when it was at its greatest.
It’s clear that you appreciate as much what Celtic gave to you as you gave to us.
God Bless and Hail Hail
petec
I am gaining an entirely unjustified reputation for kicking the younger and faster players. I am just trying to ensure a level playing field. They are only younger and faster because they were born later than me; that’s almost cheating.
Minx
“suffering????? hmmmm!”
Ok, I’m scared now. let me rephrase that.
I may be partially responsible for HT being such a woos.
Hi Bertie,
Are you a plain loaf or a pan loaf man? And have you ever baked your own bread?
stpatricksdaybhoy
My opinion was that Jock may have been approached to accept a knighthood and pointed them in the direction of Robert Kelly, the chairman. That’s then type of thing he would have done. That was the man.
beatbhoy
Thanks, friend.
Hi Bertie
Thank you for everything you have done for Celtic.
Who is your outside pick for the World Cup?
Bertie,
What’s been your favourite victory in recent years over the team formerly known as Rangers FC?
(Also, my Grandad , John, sits behind you at CP and I sat in his seat for the 2-0 game against Ajax last season. When Kayal scored the second, during the celebrations you turned round and patted my shoulder….made my night/week/month!)
Hail, Hail!
singingdetective
I think it was time for Riseth to move on, but he was a good player when he was there.
setting free the bears supports Res. 12 & Oscar Knox
15:16 on
13 June, 2014
petec
I am gaining an entirely unjustified reputation for kicking the younger and faster players. I am just trying to ensure a level playing field. They are only younger and faster because they were born later than me; that’s almost cheating
=============
I blame their parents.
petec
Paul McStay was a truly wonderful players and we could all see his qualities. However, as I answered before when we were discussing the merits of Henrik Larsson, the same answer applies. I wouldn’t have changed that Lisbon line-up.
Auldheid
Need to head home now so I’ll give your reply some consideration later my friend.
TTT
To be fair I don’t get bullied on the park too often, or elsewhere for that matter.
Minx and SFTB remain the exception of course :-)
Bertie,
You have managed clubs up here.
Are we a bit conservative in our spending on players or do we have to do this because we do not have the money to buy better players/ Do you think Celtic could have kept a few good ones (Dalglish, Hay, etc;) if we had paid better money? Or was it inevitable they’d leave?
fess19
No, good story, but it never happened. Wished it had!
setting free the bears supports Res. 12 & Oscar Knox
15:16 on 13 June, 2014
petec
I am gaining an entirely unjustified reputation for kicking the younger and faster players. I am just trying to ensure a level playing field. They are only younger and faster because they were born later than me; that’s almost cheating.
~~~~~~~~~~~~~~~~~
I hear you, I gave up a while ago and ballooned in weight.
If a spot opens up one time, I’d like to play alongside you at the back, see if they get through.
Thanks for your reply about Joe McBride… when i was a wee boy Joe was my great hero.
Bertie,
as one of the Lions and therefore part of one of the Greatest Teams in History, a strange question perhaps given all your success, but do you have any regrets from your footballing career?
Thanks again for taking the time to do this today.
HAIL! HAIL!
Token
Bertie
Have you seen much of the lad Stuart Armstrong at Dundee Utd?
Do you think he could add something to the team?
I should have said, Milan 70 apart….
HAIL! HAIL!
Token
bmcuwp
I think you may be talking about Mick Jones of Leeds United in the 1970 European Cup semi-final. Anyway, let’s always remember the scoreline in both those games – those were a whole lot more important.
Bertie Auld 15:21,
Ta Bertie. It is Excellent that the Lions recognise how good he was, good enough for moi, as I wasn’t as lucky as my Dad.
An olde work mate Bernie asked the question about the showing of the Scars on the Gallowgate, probably Bairds. :))
Remember, folks, I can see you along with my mates Big Tam and Yogi at the Celtic store in Argyle Street in Glasgow tomorrow between 1pm and 4pm. We’ll be happy to see the best supporters in the world and we’ll always have a draw for this seasons Champions League Final which will be signed by me and the lads. It’s a free draw. Good luck.
David Bentley retires from football at age 29.
He has made millions out of football whilst achieving the square root of sod all with his talent.
But he has retired because he has fallen out of love with football.
Good luck in finding a job you love better, David.
weet weet weet
That might be actual fact. Remember, we had so many good players at the time and anyone could have come in and been a credit to the team. I was just happy to be part of that squad. And it was great to get a first team place with that sort of competition around. I’m talking about players such as Big Yogi, Willie O’Neill, Joe McBride, Charlie Gallagher, John Cushley etc. And John Fallon was always on the scene as back-up to Ronnie Simpson.
rocktreebhoy
Blame Doc!
Hail Hail Bertie – thanks for giving so many of us the memory of our lives.
Do you feel that Peter Lawwell has shown greater respect for the Lions than previous directors down the years?
21stofmay
That just how weak he was – he still had another 25 laps to go.
Top Man Bertie – thanks very much for the reply.
A massive Thanks to Winning Captains and all those that make these things happen.
Bertie, Thank 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
celtic mac
Alex Edwards was a smashing wee player and Big Jock actually gave him his debut as a 16 year old at Dunfermline. I believe he could have achieved more.
Last Question for Bertie in 5 minutes fholks.