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Financial Fundamentals, the Newco loss reported as profit

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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.

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413 Comments

  1. MACJAY1 FOR NEIL LENNON

     

     

    Did the Scotsman article actually say ‘quintet’ when talking about seven players?

  2. A rare so very important chance to tell the SFA exactly what you think about them…

     

     

    IT’S SURVEY TIME! LET’S TELL THE SFA WHAT WE THINK OF THEM…

     

     

    http://www.celticquicknews.co.uk/?p=33823

     

     

    I’ve just done the seven, takes five mins or so and is well worth it.

     

     

    Oh and don;t forget, Bobby Evans – Celtic’s Forgotten Hero by Tom Campbell arrives today. Get your copy at cqnbookstore.com

  3. AuroraBorealis79 on

    What da jibber-jabber has Dave King been blabbering about today. Good grief that guy doesn’t half know how to talk a good turd

     

     

    And they just swallow swallow

  4. BMCUW,

     

    i suspect that the quantities of alcohol consumed might render even the most attractive, large breasted, and brightly plumed birds little more than eye candy.

     

     

    And I echo the words of Thunder Road with his thanks and praise for BRTH and the effort and time that he has put into the organisation of this. Nothing was too much trouble for him, it seems.

     

    To paraphrase…”Like a one man travel agency he was”…. ;-)

  5. Through A Green Glass Brightly on

    MACJAY1 – 10:09 AM

     

     

    “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.”

     

     

     

    Indeed, if Nigel, Boris, Donald and Vladimir are all for Brexit then my goodness, so should I be!

     

     

    On a side note I’ve heard Donald get the boot into almost everyone BUT Vladimir, most curious, suppose it must be cause he’s one of the good guys too , when he isn’t having political opponents and journalists jailed and assassinated for not agreeing with him that is.

  6. 16 roads - Celtic über alles... on

    16:35 @ Bangor – Duel At Dawn – NAP!

     

     

    Good luck everybody.

  7. Eminent Poet 2.40 Kelso

     

     

    21-5-79 – hope this aint a jinx :)

     

     

    Good luck to all

     

     

    HH

  8. Oooft… I see loads of fancied horses running today!

     

     

    I fully expect Shotavodka, Seeyouatmidnight, Ertijaal, and Ribchester all to run close at Newbury, Kelso and Meydan… but for my nap it’s an old favourite:

     

     

    Postponed (16:05 Meydan)

     

     

    Good luck to all !

     

     

    fleagle1888

  9. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    SELDOM INN 315 for me,please.

     

     

    COSYCORNERBHOY goes for

     

     

    CASTAFIORE 335 N

     

     

    (Glad I posted his pick while still soberish enough to spell it,the sod!)