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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. whitedoghunch on

    Mike I ended up browsing your way yesterday looking at that great meat from Penokean Hills farms that Hashimoto uses in his kaiseki, ended up there having sorted a wee japanese thing for my sister in Cork which is supposed to be superbe.

  2. TURKEYBHOY on 23RD MARCH 2017 1:34 PM

     

     

    The word Unionist was bandied about very freely by the various nat trolls and sock puppets who invaded this site during the referendum campaign (where are they now?).

     

     

    As I pointed out then, the word Unionist entered the political lexicon in the UK to describe the union between Britain and Ireland. It had no reference to Scotland.

     

     

    Just to be clear about this: There is no inconsistency between supporting a United Ireland and wanting Scotland to remain in the UK.

     

     

    Anyone who thinks otherwise is, frankly, either a bit thick or motivated by nothing more than anti English racism.

     

     

    In many cases, of course, it’s a bit of both.

  3. Paul67 et al

     

     

    You would not expect that today of all days posters on here would use the funeral of Martin McGuinness to make cheap and nasty political points. But you wouldn’t reckon on Ernie Lynch and South of Tunis.

     

    Whose comments are beneath contempt.

  4. mike in toronto on

    WDH … surprisingly, I wasn’t familiar with Penokean Farms until I read your email …. looks very nice.

     

     

    Hashimoto … that guy has some serious knife skills!

  5. Ernie Lynch. Arnold has spoken.

     

     

     

    An excellent set of results and much better than I expected, if I am totally honest.

     

    I let my brother-in-law Arnold have a quick glance and he has confirmed that the good ship Rangers is very much back on an even keel and heading for the big wide ocean which is called “European Football”.

     

    This continued sign of progress and self sufficiency hasn’t been as widely broadcast by the Scottish mainstream media as it should have been.

     

    Arnold also believes that big things are ahead which will impact all football teams in the UK. There is a potential maelstrom ahead, and to continue the nautical analogy, we will ride the waves whereas others will flounder in Davy Jones’s locker. The appointment of a ‘different sort’ of manager and back up team is evidence of our growing fortunes.

     

    All in all, Arnold gives us a 8/10 which is very generous given his cautious nature.

  6. johann murdoch on

    Has our cheeky wee Portugese friend Pedro commented on the accounts yet? ..Maybe waiting till they convert the numbers into Euros?…

  7. johann murdoch on

    Just had a sneeky peek at RIFC accounts..oh dear I think they need snookers now personally..Still never mind the Nomad will be pleased..

     

     

    hold on ..wait a minute…!!

  8. Ah, missed out on the concert tickets. Wanted to take my old man who was in Lisbon.

     

     

    Looks like there’ll be a beamback event according to the report. I wonder if they would open source the feed, live on youtube for example and let people run their own Foundation accredited events.

     

     

    Get big interactive map up of all the events all over the world that have registered.

  9. btw the difference between operational profit and loss for RIFC was the string of home cup ties covered live on TV.

  10. Mountblow tim on

    Thanks for the reply guys

     

    Sorry did not get back sooner

     

    Having one of those days

     

    When nothing goes right from morning till night

     

     

    HH

     

     

    Mt

  11. whitedoghunch on

    ~Mike there was a picture recently of chefs from his place taking in big joints of beef from the farm

     

    on their instagram or the like.

  12. Paul67

     

     

    Apart from the money and misleading presentation the accounts raise some UEFA Licensing issues.

     

     

    The first one will be of interest to the “not the same club” fraternity.

     

     

    If the accounts are for Rangers International Football Club then they are not from The Rangers Football Club. The applicant for a UEFA Licence (see next) is defined by UEFA as follows:

     

     

    ” Article 12 – Definition of licence applicant and three-year rule

     

     

    1 A licence applicant may only be a football club , i.e. a legal entity fully responsible

     

    for a football team participating in national and international competitions which

     

    either:

     

     

    a) is a registered member of a UEFA member association and/or its affiliated

     

    league (hereinafter: registered member); or

     

     

    b) has a contractual relationship with a registered member (hereinafter: football

     

    company).

     

     

    2 The membership and the contractual relationship (if any) must have lasted – at

     

    the start of the licence season – for at least three consecutive years.

     

     

    3 Any change to the legal form or legal group structure of the licence applicant

     

    (including, for example, changing its headquarters, name or club colours, or

     

    transferring stakeholdings between different clubs) during this period in order to

     

    facilitate its qualification on sporting merit to the detriment of the integrity of a

     

    competition and/or its receipt of a licence is deemed as an interruption of

     

    membership or contractual relationship (if any) within the meaning of this

     

    provision.”

     

     

    Thus RIFC have never applied for a licence before under b) and whilst there is no documentary evidence available, historically Rangers FC (Oldco) must have been the applicants under a) unless MIH used their accounts.

     

     

    This forms the basis of the Traverso reply to Res12 lawyers when The Head of UEFA Club Licensing described the next applicant for a UEFA Licence from Ibrox as as a NEW club/company.

     

    I appreciate its not about the accounts per se and it does ask the question of what form does the contractual relationship take between TRFC and RIFC and lets hope its not just a wheeze to separate TRFC from RIFC, allowing whichever one suits the context to carry the debt.

     

     

    I’m not sure if the accounts are interim or final but either way they need to be audited under UEFA FFP Article 47 or 48 subject to further extensive Annexes V, VI and V11 that are too long to post here but on the basis the unaudited accounts are Interim here is the relevant part from Art 48

     

     

    Article 48 – Financial statements for the interim period

     

     

    1 If the statutory closing date of the licence applicant is more than six months before

     

    the deadline for submission of the list of licensing decisions to UEFA, then

     

    additional financial statements covering the interim period must be prepared and

     

    submitted.

     

    2 The interim period starts the day immediately after the statutory closing date and

     

    ends on a date within the six months preceding the deadline for submission of the

     

    list of licensing decisions to UEFA.

     

    3 Interim financial statements must be reviewed or audited by an independent

     

    auditor as defined in Annex V.

     

     

    which says

     

     

    ANNEX V: Determination of the auditor and

     

    auditor’s assessment procedures

     

     

    A. Principle

     

    1. The auditor must be independent in compliance with the International Federation

     

    of Accountants (IFAC) Code of Ethics for Professional Accountants (see Articles

     

    47 and 48).

     

     

    2. The auditor must be a member of one of the relevant IFAC member bodies. If

     

    there is no member of the IFAC within a licence applicant’s territory, the licence

     

    applicant is required to use an independent auditor who is permitted by national

     

    law to carry out audit work.

     

     

    It would take an accountant to wade through the relevant Article re accounts and Annexes, but to a layman like me they are unlikely to be granted a licence based on what amounts to self certification from a Chairman of RIFC, who risks being cold shouldered (which might mean not having auditors) and from a club whose predecessor club had the same man on board as a Director when that club made a mendacious submission to SFA/UEFA when last applying for a UEFA Licence in 2011.

     

     

    The relevant accounts should be with the SFA by end of this month and if I were Anne Budge or Geoff Brown of St Johnstone I would be asking the SFA to clarify the position.

  13. Reading on JJ site that the Sports Direct court case is ongoing,

     

    i thought i read on here it had been put back,anyone know?

  14. Just a wee bit of info.

     

     

    I took the car (Seat Ibiza) back to the original place I bought it. It was Vauxhall Linwood. I told them what was happening, EPC and Engine Management lights on.

     

     

    They lightened my wallet by £49 and said go to the Seat branch which was probably less than 100yards away.

     

     

    So the moral of this story. Go to the actual makers branch rather than the place you buy the car from Arnold.

     

     

    Love this

  15. AULDHEID

     

     

    I know this is a daft question but how can they possibly qualify for a Euro license??

     

     

    Are your accounts valid if they’re not signed off??

     

     

    Good post thank you AH

     

     

    HH

  16. Bendigo 3:59

     

     

    I always remember Bill Clinton holding court @ Wimbledon. Very impressive.

     

     

    Thanks for the link.

     

     

    It sickened me hearing the word ‘Radicalised’ used by the BBC in regards to Martin.

     

     

    Bill Clinton is only a human being.

     

     

    His jibber jabber about Martin. Tremendous.

  17. Starry

     

    Regan said this time last year that the huns would get a licence for europe if they won the scottish cup, I doubt anything will have changed in the past year to change that view, they qualify the get a licence, it’s as simple as that.

     

    Who is going to say anything, I saw Auldheid saying that Anne Budge and Geof Brown should be asking the sfa wtf if they do get a licence, not a hope in hell they will cause any problems, they are wanna be huns, they will never upset their masters.

     

    The smsm will champion them all the way, they will get their licence, of that I have no doubts whatsoever.

     

    HH

  18. Margaret McGill on

    Auldheid on 23rd March 2017 3:35 pm

     

    betcha your the only one examining in detail of why Rangers (for thats who they are) should not get a license. Betcha they get it.

     

     

     

    “The relevant accounts should be with the SFA by end of this month and if I were Anne Budge or Geoff Brown of St Johnstone I would be asking the SFA to clarify the position.” …why just 4th and 5th? what about all of them ? But then why would Celtic want to talk about the

     

    Gorilla in the room

  19. There was someone asking earlier if the SNP had offered condolences re the death of Martin McGuinness, as far as I am aware Alex Salmond actually attended the Funeral.

  20. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    PETEC

     

     

    Your contract is with the person who sold you the vehicle,not the manufacturer.

     

     

    What was the £49 charge for,and why haven’t they made good the fault?

  21. THE EXILED TIM

     

     

    Aye I know he did but did he go on to say how he would sell that to UEFA as it’s their competition or was he doing his usual don’t upset the hUns patter.

     

     

    Surely to Buddha Uefa won’t let them skate by the rules and regs…

  22. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    HAPPY HOOOOOOPY BIRTHDAY to

     

     

    BERTIE AULD!!!!!

     

     

    Lion,hunskelper,all-round good guy,HH.

  23. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    Belated condolences to all who were killed or injured in yesterday’s attack in London.

  24. thomthethim for Oscar OK on

    If Sevco’s licence for Europe is dependent on winning the Scottish Cup……..then they will win the Scottish Cup.

     

     

    Their whole short existence appears to depend on it.

  25. Sean47 on 23rd March 2017 3:01 pm

     

     

    Ernie Lynch. Arnold has spoken.

     

     

     

     

     

     

     

     

    An excellent set of results and much better than I expected, if I am totally honest.

     

     

     

     

    I let my brother-in-law Arnold have a quick glance and he has confirmed that the good ship Rangers is very much back on an even keel and heading for the big wide ocean which is called “European Football”.

     

     

     

     

    This continued sign of progress and self sufficiency hasn’t been as widely broadcast by the Scottish mainstream media as it should have been.

     

     

     

     

    Arnold also believes that big things are ahead which will impact all football teams in the UK. There is a potential maelstrom ahead, and to continue the nautical analogy, we will ride the waves whereas others will flounder in Davy Jones’s locker. The appointment of a ‘different sort’ of manager and back up team is evidence of our growing fortunes.

     

     

     

     

    All in all, Arnold gives us a 8/10 which is very generous given his cautious nature.

     

     

    ===================================

     

     

    I discovered Arnold on February 6th 2017, and brought his wisdom to CQN.

     

     

    Since then, ‘Arnold’ has continued to deliver his sage wisdom on financial matters thruogh the FF poster who claims to be his brother-in-law.

     

     

    Arnlod – ‘a chartered accountant no less ‘ – is evidently the alter-ego of that demented Hun poster who thinks his boolin’ club deference to ‘arnold’ gives him some authority to blurt his gullible blandishments every time there’s a financial event of note at Mordor.

     

     

    Looking forward to his future angst-ridden proclamations as the idiot ship zombie sails off the edge of the world.

     

     

    —————————–

     

     

    petec –

     

     

    T2 is a joy – resonates strongly with males of a certain vintage who’ve lived through the cultural times the boys have. Massive pathos and nostalgia amid the glorious black comedy.