Financial Fundamentals, the Newco loss reported as profit


While who puts the ball in the net determines the outcome of any given game, the financial fundamentals will determine who can win the league title. Today we got an insight into how the medium term future of Scottish football is likely to play-out in this respect, as Newco, Rangers International Football Club, released their interim accounts for the six months to 31 December 2016.

Turnover reached £16.3m, up £5m from their previous season in the Championship. The rise in costs was limited to £4m, allowing them an operating profit of £294k, although their loss for the period was £238k, almost identical to the previous term’s loss of £288k.

No notes are provided with the accounts, so there is no breakdown of £451k of non-operational “other charges”, which tipped the club into a loss.

It is with some astonishment that I note the early reviews proclaim, “financial results show club is in profit under King”, and the like, when “financial results show club is in loss under King” would be considerably more accurate.

RIFC loss as reported in accounts

RIFC loss as reported in accounts

How this is reported is of little consequence, as in reality no one who is taken in by this will have any influence over events, but you have to wonder, what’s the point? Why go shout about a small profit when you should write about an equally small loss?

Neither scenario is particularly noteworthy. Whether Newco made or lost a couple of hundred grand isn’t going to impact their ability to be competitive.  The need to control inconsequential elements of the public narrative is highly dysfunctional.

It suggests some key influencers in this scenario are working-through deep insecurities.

By contrast, Celtic’s income for the six months to 31 December 2016 was £61.2m. Income disparity between the clubs for the second half of the season will be less significant, but Celtic are still likely to turnover circa £50m more than any other club in Scotland.  The league title will remain a no-contest for this reason.

Celtic are also in profit, actual profit, not the imaginary kind you need to compulsively ask journalists to write about.


Click Here for Comments >

About Author



    On the subject of companies reporting an operating profit,Royal Bank of Scotland has been doing just that for a fair few years now.



    During which time it has racked up additional actual losses in tens of billions,and is still in essence a basket case.



    Just thought I’d mention it…




    Any idea how to do a “shaking my head in disappointment” emoticon??






    ^ that’s not an emoticon btw…

  3. South Of Tunis on




    ROY C on the blog — Thank you .



    I think Shotgun Wedding is a classic as is the much later funk great –


    7″ _The Honey Drippers -Impeach The President (ALAGA)



    My big sis was heavily into doo wop . Something I tended to like or hate . One of her favourite choons was a 45 by The Genies _ Who’s that Knocking – I hated it – I then learned that Roy C was in The Genies . Whenever I’m in London she plays it just to annoy me !.



    Big up !!!


    Radio 2 has recently blown its overnight scheduling out of the water,an example being last night’s attempt at a solid three hours of Craig Charles.



    At least ten thousand seconds too long for me,I’m afraid.



    As a result,I’ve found myself listening to Radio 4 overnight. Much of which is more interesting than I expected,I have to admit. Last night,I found out about a fella who chucked his high-flying role at Microsoft in order to fund libraries-and much more-for kids in some of the poorest areas of the world.



    So far,he has established EIGHT times as many as Andrew Carnegie did. Just thought I’d mention it.




  5. macjay1 for Neil Lennon on

    Brexit was about personal safety and judicial independence from the trough snouters in Brussels .


    The economy was not the prime consideration.



    A brave and smart choice was made.


    That`s why there is wailing and gnashing of teeth from the remaining victims of les Brusseloises .


    They can see the future and it don`t look pretty.


    Quite the contrary.

  6. Davidopoulos



    “Any idea how to do a “shaking my head in disappointment” emoticon??”






    You’re not expecting one in about 8 days’ time, are you?




    The Honey Drippers, a regular in my wee playlists when I still played out in Basel:))



    “She Kept On Walking” is my favourite Roy C tune I think, his later stuff I don’t know so much, off tae check it oot!



    I got a lot of great tunes out of your box:))



    Big up yerself:))




  8. Qualifier on Sunday for next year’s World Cup.



    Vital game, given that it’s a tournament that only comes around once in a generation.





    Good point,and much more suitable sentiments!

  10. South Of Tunis on




    I was never that keen on playing out .Way too much paranoia re the safety of the choons . !!!

  11. macjay1 for Neil Lennon on




    Barry Ferguson has joked Scotland are so reliant on Celtic’s stars that they may as well wear green and white hoops when the Tartan Army take on Slovenia this Sunday. Craig Gordon, Kieran Tierney, Stuart Armstrong, Scott Brown, James Forrest and Leigh Griffiths are all in contention for a starting place at Hampden, with Griffiths the only member of that quintet who played some part in the dismal 1-1 draw with Canada in midweek. (Daily Record)




    I didn’t play much on vinyl here, I bought a set of cd’s decks and played off my cd collection.



    I had my whole collection stolen in London, everything:(((



    Never really recovered from that:(((




  13. beatbhoy on 24th March 2017 10:30 am



    Qualifier on Sunday for next year’s World Cup.



    Vital game, given that it’s a tournament that only comes around once in a generation.




    Once in a generation indeed! I was just about to start high school the last time Scotland were at a world cup.



    Kieran Tierney was 1 year old…

  14. South Of Tunis on




    How awful . How absolutely awful. . Something I can’t bear to think about . . The loss would be heartbreaking , the compulsion to find whoever did it would be soul destroying .

  15. Brogan Rogan Trevino and Hogan on

    Thunder Road on 24th March 2017 8:51 am



    Can I procure any birds in Lisbon?



    Hmmm not sure I am willing to volunteer for that one but I can guarantee that there will be some of the following on display:



    1. Tits


    2. Night Owls


    3. Dodos


    4. Kiwis


    5. Screamers


    6. Gannets


    7. Bustards (Loads of)


    8. Old Coots


    9. Toadies


    10. Flycatchers


    11. Australian Treecreepers


    12. Babblers


    13. Bald Crows


    14. Flowercatchers



    and loads of Turkeys …….. and maybe a Cardinal or two!




  16. Davidopoulos



    I finished high school the year Scotland was about to participate in the first of 5 ( yeah, that’s right, lady, FIVE!) World Cup Finals tournaments in a row, having missed out on the previous 3 in Chile, England and Mexico.



    They’ve only qualified for one since the last of those five.



    Ya whippersnapper!

  17. South Of Tunis on

    Sicilian media outlets are claiming that Claudio Ranieri will accept a big money offer to save Palermo FC from relegation . If true, that would mean he would be Palermo’s fifth Manager of Season 16/ 17 to date . Claudio Ranieri played for both Catania and Palermo . The mad core Ultras @ Palermo will be very unhappy at the Catania part of his CV.!

  18. South Of Tunis on

    Scotland / World Cup .



    My first memory is the 58 one . Managed by someone called Dawson Walker . An early encounter with that 2 surname thing . Should have been Matt Busby but the Munich disaster ruled that out . It didn’t go well.!





    My first memory of the World Cup is 74.



    Our biggest mistake was not taking Tom Forsyth along.



    He wouldnae have missed that Bremner sitter against Brazil(!)

  20. South Of Tunis on

    The banality of evil



    Sicilian radio reporting that Khalid Masood had his trousers pressed in a Brighton hotel before heading for London .

  21. South of Tunis



    Wasn’t that (1958) the last World Cup finals which Wales reached, knocked out by eventual winners Brazil?



    They’ll be desperate to beat the RoI tonight.

  22. BRTH


    I’ll be very surprised ( and disappointed ) if there isn’t a smattering of ageing Peacocks on display.


    I will supply the Seagulls.

  23. BMCUW



    Now there was a ‘player’ who knew how to scrape his studs over the top of the ball, rolling it ever-so-slowly ( and painfully!) just over the line from 6 inches out!





    I think 58 was the only occasion when all four “Home Countries” reached the finals.



    We got hammered 7-1 off Uruguay,I think. Before my time but seen many embarrassing occasions since.





    Ah,but who’s gonna make our Dickcissel?



    That is what THUNDERROAD was asking earlier!!!!

  26. BRTH



    Once i spot a pair of Great Tits i will be transfixed and will probably miss all those other species.



    Seriously though thanks for everything that you have done.

  27. BMCUWP



    Im very capable of doing that.


    No need to even look beyond this thread!

  28. not forgetting the occasional……




    15. Grouse



    …..and undoubtedly a…..



    16. Cockatoo