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Newco admin unlikely in short term but traumas ahead

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I had lot of questions over the weekend about Newco going into administration in the coming days or weeks, following Dave King’s resignation on Friday when he simultaneously announced funding plans have “been put on hold”.

To recap:  In their most recently available accounts to 30 June 2018, Newco recorded an £11m annual loss.  Since then they have gone one stage further in European competition, but also spent significantly in the transfer market.  My expectation is that losses would be higher this season, even before the current crisis.

In a statement on Friday, interim chairman Douglas Park and vice-chair and John Bennett indicated they would continue to support the club financially.  It is unlikely they would have made this commitment if they were planning to put the club into administration in the short term.

While the coronavirus will devastate the P&L of every club in Europe, government provisions will help Newco, who, like every other business in the land, will be able to defer payments to HMRC.  They will also be able to furlough the vast majority of non-playing staff.

Even with players and coaches remain on the payroll, cash required to get through the next three months could be as little as £6m (assuming they defer paying every other bill they can).  Led by Barcelona (or Herats, if you prefer), some clubs across Europe have taken unilateral action and suspended or curtailed player wages for the duration of the crisis.  Before next month’s payroll is due, there may be a coordinated effort by clubs to push a rule like this through.  If not, Newco could come to an agreement with high-earning staff to take a pay cut, or postpone wages.

A few million may be enough to see the club limp to the summer, when they hope to see season ticket renewal money.  With these possibilities still in play, and bearing in mind the funding commitment by Park and Bennet, I don’t see a convincing argument to suggest they will press the administration button immediately.

While it is clear they can (if they choose) survive until the summer, they still need to address the fact that they are trading beyond their means and incurring unsustainable losses.  An open transfer window gives them an out.

The market for footballers will open hugely down on where it closed in January.  Fanciful valuations that appeared in newspapers for Newco players will not be met, but to survive, all they need to do is get high earners off the wage bill, even if it means accepting low or zero compensation.

The first thing an administrator normally does on taking over a distressed company is to keep creditors at bay while he tries to salvage the business.  Newco’s creditors are not applying pressure – and the quantum is nothing like what it was when Oldco went down.  The next thing an administrator would do is try to cut costs while turning non-key assets into cash where possible.  This can be done by management without the need to go through administration.

The one caveat to this – as long as the directors are prepared to cough up a few million, and they said on Friday they were, I don’t see the benefit of administration before the transfer window opens.

All the underlying issues remain.  This club has lived beyond its means for all its eight-year history.  It will need to downsize quickly and significantly to have any future.  The Sugar Daddy daydream cannot help them, as funding continuous losses is inconsistent with Uefa FFP – and the most recent Knight on a White Charger has just tailed it back to Hong Kong.

Newco can have a future as a smaller football club, one that pays its bills and develops players in the same way Motherwell, Hibs and others do.  Living within their means is their only viable future, but that would necessitate giving up on fantasies of catching Celtic, and I suspect they would prefer liquidation than take that bitter pill.

The auction for Roy Keane’s signed Ireland shirt closes tomorrow, keep an eye on it.  Proceeds to towards Glasgow South East Foodband at this difficult time.

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  1. Melbourne Mick on

    Hello again all you young rebels.

     

     

    From a lovely sunny but deserted Melbourne suburb.

     

     

    This crisis has brought the best out of some people, but alas

     

    it also brings out the worst in some cases.

     

    Petrol outlets with a glut of the stuff decide to ramp up the

     

    prices to keep their profits going…scum.

     

    $ 10.000.00 fine dished out to a restaurant /bar owner who

     

    decided he would flaunt the ban and stay open and serve idiot

     

    customers.

     

    Gun dealers being shut down after a big spike in gun and

     

    ammunition sales.

     

    Whats the world coming to?

     

    But the kids raise our hopes of a better world in the future

     

    with home baked cakes and muffins handed out to health

     

    workers today.

     

    And my wee Grace set up a Marco polo app so that me and

     

    the princess could watch vids of her daily activities.

     

    Bless.

     

    H.H . Mick

  2. Good morning CQN from a dry, mild but overcast Garngad

     

     

    Day 9 of our self isolation in the David66 household, although we had the grandson for last 5 days.

     

    That showed me how unfit I really am, so 30 min walk each day for me and Mrs David66 starting today. Can I take a carry oot???? 😂

     

     

    Stay safe guys

     

     

    D. :)

  3. Melbourne Mick on

    Morning David 66

     

     

    Why don’t you try and beat my 15 with the bog roll?

     

    You know you want to lol.

     

    H.H . Mick

  4. Unashamed repost, one final push Ghuys, thank you in advance.

     

    Good morning CQN I bring you an update on your efforts to support TET’s Son, Niall and his Fiancée, Sharon.

     

    To date you have donated £633.88. Go fund donations stand at £1,770.00. Total to date £2,403.88, a fantastic effort.

     

    Given Jan’s health issues it is unlikely she will be able to see Niall get married. So the plan will be to put any money left over to have the wedding streamed so that Jan and other family and friends can watch the wedding live.

     

    We’ll keep the donations open until Tuesday 31st March as it is pay day for most people.

     

    Thank you on behalf of TET, Jan, Niall and Sharon for your support:

     

    For those wishing to make a donation to support The Exiled Tim for his bhoy Niall then you can do so by:

     

    bank transfer to:

     

    o Account name: Walk With Shay

     

    o Account number: 15326765

     

    o Sort code: 80-22-60

     

    o Bank: Bank of Scotland

     

    o Ref: Enter your name or moniker

     

    · By cheque to Walk With Shay (please contact me for address details)

     

    · By paypal to walkwithshay@yahoo.com.

     

    If anyone would rather use the go to page the link below.

     

    https://www.gofundme.com/f/hotel-kept-wedding-money

     

    Until we meet again

     

    Keep the Faith!

     

    Hail Hail!

  5. This is my 13th day of self isolation but i am still a bit confused as to “Police Powers” etc ?

     

     

    If I assume that I do NOT have Corona, then if i go outside just for 10 minutes to shop or get some fresh air, and the Cops challenge me etc and I tell the truth and say that ” I have been in self isolation for just over 2 weeks”, so I am okay to go outside for a while”…

     

    likewise if I self isolated for the proposed 12 weeks due to my being vulnerable cos of my other health issues…

     

    Why should any Cops believe me ?

     

    i feel that ANY Cop would ” fine” me despite my telling the truth, especially if he/she are also having a Bad Day..or maybe feeling resentful IF one of their family/friends has caught Corona ?

     

     

    From my living room window yesterday afternoon I watched a Junkie Guy who lives across the street IN the Entrance to his Close with THREE of his Junkie Pals all standing very close to each other. Three guys and One Female, all around the ages of 35/55 imo.

     

    They then walked along the street together…NO social distancing etc etc…

     

     

    I was praying for the cops to suddenly turn the corner and catch these selfish bastards, who dont give a Flying Duck about anyone but themselves….they believe the World revolves around them…how I hate them.

     

    I know that I am not being very christian…but what chance do decent folk have, especially with this Virus with selfish, ignorant Bassa’s like those Four ?

     

    Rant Over.

     

    HH

  6. MELBOURNE MICK on 31ST MARCH 2020 8:50 AM

     

    Morning David 66

     

     

     

     

     

     

    Why don’t you try and beat my 15 with the bog roll?

     

     

     

     

    You know you want to lol.

     

     

     

     

    H.H . Mick

     

    ………………

     

     

    I dont think that I could Keepie Uppy 15 Toilet rolls at once at my age etc….maybe 14 ?

     

    LOL

     

    HH

  7. Melbourne Mick on

    BIG JIMMY

     

     

    LOL.

     

    When i was a young bhoy roughly the same age as the wonderful

     

    George Connelly and watched him walk round Celtic park doing

     

    keepy uppy, i resolved to emulate him, and practised from dawn

     

    till dusk on the black ash plantation parks.

     

    Even now at my age i can still outdo most of them with a ball but

     

    some like my grandson have got all the up and over tricks which

     

    the aul limbs will not allow for he..he.

     

    Hope you are sorted for your messages, i know DAVID 66 is on

     

    standby, please accept his help.

     

    H.H . Mick

  8. MELBOURNE MICK..

     

    Cheers mate. I am just waiting for my heart Nurse to visit this morning and then I can nip out and walk about 15 yards onto the road to see if my wee local shop is still open, and IF it is…then I need not bother DAVID66 later in the week. I got most of my home delivery order yesterday from Tescos, so that was helpful for now.

     

     

    IF I do need to ask DAVID66 to help it will depend on where he lives etc, as I am in the city centre/Saltmarket/Calton…and I couldnt allow him to travel any distance etc. ?

     

     

    Hope you and family are staying safe etc..My best regards to PADDY.

     

    HH

  9. I know that I am not alone…but I really do NOT trust this SFA/SPL Hun mob to do the right thing and crown Celtic Champions….I fear the worst…I sincerely hope that I am wrong ?

     

     

    What do you call a “Red Indian Virgin” ?

     

     

    ” Shy Anne”

     

     

    I’ll get ma coat.

     

    HH

  10. Melbourne Mick on

    RUBICON

     

     

    We were so lucky to witness those Lions and now these

     

    wonderful Celtic times we live in, beginning to sound like GFTB,

     

    is he forgiven yet?

     

    And what about the crowd that night, maybe 160.000 ? felt like it

     

    to me as i was carried all over the terracing without my feet

     

    touching the ground lol.

     

    H.H . Mick

  11. Big Jimmy

     

     

    If they could void the season risk free then I think we’d be holding a beaten docket.

     

     

    As is, voiding threatens all revenue generated this season, from ticket sales through to corporate and tv sponsors.

     

     

    I can’t see member clubs putting themselves at such risk to stop us winning the league.

  12. DALLAS DALLAS WHERE THE HECK IS DALLAS on 30TH MARCH 2020 10:51 PM

     

    Jimmynotpaul, I hope you and the family are well. I gather you will be off work the due your ongoing health issue. I am as two of the medicines I’m on affect my immune system.

     

     

    Has any decision been made about promotion for Paddy and his team mates yet or dithering like our league is doing .

     

     

    Hey J.

     

    I hope you and the crew are all well too.

     

    Yes, I’m home.

     

    The work, were very proactive, they actually send me home, two weeks ago, now.

     

    Cumbernauld are applying for the new West Pyramid, Kirkintilloch have too.

     

    I think most are, so it might affect Cumbernauld where in the pyramid, they are put.

     

    The chairman has said no matter what, they will accept where they are put.

  13. Melbourne Mick,

     

    That’s one of my memories from that night. My feet rarely touched the ground such was the crush. When we scored I ended up about 30 yards away. I’ve never known such a crowd.

  14. A couple of wee songs to brighten folk up…

     

     

    D-REAM..”Things can only get better”

     

     

    NIK KERSHAW. ” I wont let the Sun go down on me”.

     

    I posted earlier about “Nipping out” to see if my wee local shop was still open………its been a long time since I have “Nipped Out” anywhere !

     

    My legs dont work the way they used to.

     

     

    Would I be correct in saying that with the Pubs all closed, and their Cellars being full of Beer Kegs…will THOSE Beers finally “Go Off” at some point as long as this Shutdown continues ?

     

    If so, what is the Life expectancy of Kegged Beer….how I miss my Pints of Beer in my local.

     

     

    HH

  15. Melbourne Mick,

     

    The English press claimed Leeds were “the team of the century” before the first leg.

     

    Ha!

  16. Big Jimmy.

     

    Jeanette Findlay has just tweeted a helpline number.

     

    0141 345 0543.

     

    Open Mon – Fri 9 to 5.

     

    Glasgow Coronavirus Community Response Helpline.

     

    It’s for people seeking support with issues such as food delivery or mental health.

  17. An Dun, et al.

     

     

    Even when we have turned the tide against Covid 19, I think we will have a phased return to normality. I cannot see the return of large scale gatherings for some time.

     

     

    We discussed the possibility of games behind closed doors a few weeks back. I think this is looking increasingly likely ( Especially in England, but where will that leave us. ?)

     

     

    HH to all and stay safe.

  18. Back to Basics - Glass Half Full on

    Hobo Baldie @ 7:32 am – Lol.

     

     

    I tried a similar “cycle to work” crack on a call last week – it went down like a lead Zeppelin !

     

     

    You tell it better.

     

     

    Hail hail

     

     

    Keep The Faith

  19. Melbourne Mick on

    RUBICON

     

     

    Yes, remember that, complete disrespect from

     

    the English press and complete disbelief when the Lions

     

    humbled them.

     

    H.H . Mick

  20. Mick

     

     

    Curiosity finally got the better of me, spent ten minutes on the bogroll challenge. First few attempts didn’t fill me with any optimism 4s,3s and two somewhere between that. Then out of the blue 12 and 12, oh maybe just maybe I thought. Had about another ten attempts and managed to get 15 then about another ten attempts to try and beat that but to no avail.

     

     

    HH

  21. Big Jimmy – trust me you will not bother me at all pal.

     

    I will be glad to help if I can.

     

     

    D. :)

  22. Mick

     

     

    This could be the start of another list that everyone likes on here..:)

     

     

    HH

  23. Video evidence required for anyone who has beat my 8 at bog roll challenge😂😂😂

     

     

    I might give it another go later, although I have done the first 40 min walk I have had in yonks so I’m fecked.

     

     

    D. :)

  24. DAVID66 on 31ST MARCH 2020 10:00 AM

     

    ……….

     

    Cheers mate, I cant go out just now in case i miss my Heart Nurse visit, but I’ll get back to you later Today on here.

     

    HH

  25. Meanwhile in sensible Sweden life carries on as normal . No over-the-top restrictions and lock-down . And at the end of this their economy and infrastructure will be unscathed ………while we will have, at the very least a recession ,peoples livelihoods destroyed . At least we have a nice new police state . I think we have been conned.

  26. BIG JIMMY

     

     

    With due respect , you may well have isolated for a fortnight , leaving your home and being in the vulnerable bracket , whats to say someone with Covid19 infecting you either by not adhering to the 2 metre rule in your shop or you picking it from other sources, you more than others need to be more careful . …..hope you get the jist of what i m saying .

     

     

    take care .

  27. Melbourne Mick on

    DBHOY

     

     

    Same, same, 4’s 3’s then i went on a roll ( see what i done there?

     

    but struggling to beat it now.

     

    DAVID 66

     

    I find vidoe ‘s and the like more difficult than keepy uppy, i’ve even

     

    got to get wee Grace to show me how to put on Thumbelina 8-))

     

    H.H . Mick

  28. BAMBOO on 31ST MARCH 2020 10:10 AM

     

    Meanwhile in sensible Sweden life carries on as normal . No over-the-top restrictions and lock-down . And at the end of this their economy and infrastructure will be unscathed ………while we will have, at the very least a recession ,peoples livelihoods destroyed . At least we have a nice new police state . I think we have been conned.

     

     

    _____

     

     

    Think it’s a bit short-sighted to be praising anybody right now. We will see how Sweden get on in the coming months.

     

     

    https://www.theguardian.com/world/2020/mar/30/catastrophe-sweden-coronavirus-stoicism-lockdown-europe

     

     

    ‘Panic, though, is exactly what many within Sweden’s scientific and medical community are starting to feel. A petition signed by more than 2,000 doctors, scientists, and professors last week – including the chairman of the Nobel Foundation, Prof Carl-Henrik Heldin – called on the government to introduce more stringent containment measures. “We’re not testing enough, we’re not tracking, we’re not isolating enough – we have let the virus loose,” said Prof Cecilia Söderberg-Nauclér, a virus immunology researcher at the Karolinska Institute. “They are leading us to catastrophe.”’

     

     

    “The government thinks they can’t stop it, so they’ve decided to let people die,” Söderberg-Nauclér said. “They don’t want to listen to the scientific data that’s presented to them. They trust the Public Health Agency [Folkhälsomyndigheten] blindly, but the data they have is weak – embarrassing even.

     

     

    “We are seeing signs of a higher doubling rate than Italy, Stockholm will soon have an acute ICU shortage, and they don’t understand that by then it will be too late to act. All of this is very dangerous.”

  29. So Mick’s bog roll keepy uppy challenge leaderboard is as follows…

     

     

    Mick-15, Dbhoy-15

     

     

    David66-8

     

     

    Appols if I’ve missed anyone, feel free to add. I will have a proper crack at it tomorrow in the garden when I’m football training the kids. Neighbour’s will think I’ve lost the plot..:)

     

     

    HH

  30. The Zombies on Twitter are frothing at the mouth. You couldn’t write it.

     

     

    Celtic are obviously “skint” because Neil Lennon admitted the club will at the end of April consider the possibility of cutting wages.

     

     

    We “begged” for season books a month ago

     

     

    Removed from all reality and logic.

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