Newco interims, vanity projects and inevitable conclusion

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Interim accounts for the 6 months to 31 December 2017 were issued by Newco over the Easter break.  Income was up £3.1m, due to the new merchandise deal negotiated (paid for) with SportsDirect, higher ticketing and hospitality revenue, although no mention was made in the notes of the progress the club made with its first foray into European football.

Costs were up correspondingly, by £3.5m, leading to a loss of £926k for the period.  The previous year, a corresponding loss of £238k led to a season-end loss of £6.663m.  We can expect something similar for this season, leaving directors to find an operating loss in the region of £7m.

The good news is that “penniless” Dave King has convinced a Trust to provide the £11m required for him to make an offer for shares his concert party do not already own.  The offer of 20p/share is likely to be accepted by some who have tired of the episode, including those who were ousted by King and colleagues in 2015.

It is likely all the money is in place to cover this season’s deficit and the share offer but the big question remains, how to breakeven?  Competing with Celtic is not even a question.

If expenditure remains at current levels, reaching the Europa League group stage would bring in enough money to remove the spectre of running out of cash, but that is a huge challenge.  Newco would need to overcome four higher seeds to get there (something I doubt has ever been achieved).

They could increase the football budget, but that would expose them to higher-still potential losses, with associated risks.  Or they could downsize.  Stick with Murty, get rid of the Portuguese vanity projects and develop a team from the ground up.

Downsizing also comes with risks.  Vanity projects sell tickets and merchandise.  A first team full of teenage graduates from Murray Park would be a hard act to ‘follow’.

In short, I don’t see financial viability in this club, never mind competing with Celtic.

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449 Comments

  1. Sky sources understand Dundee have turned down a bid in the region of £2 million for defender Steven Caulker from Norwegian side Rosenborg. #SSN

     

     

    ———-

     

     

    Okay dokey.

  2. david 66, how are you and cheeko, please come on frankie and benny love cheeko.hh.

  3. Delaneys Dunky on

    BP

     

     

    Chic admitted his Saint Mirren supporting pundit act, was just that, an act. His nose has aways been bright Royal Blue.

  4. Delaneys Dunky on

    D17

     

     

    Had I not picked Juve in my 5 team accy tonight, I would be wanting Real Madrid to win. I let my head rule my heart when I picked Juve to win tonight.

  5. Just checked BT Sports to see what Scottish games are on tonight. Guess what? NONE! All CL games. (Foreigners) BRITISH Telecom, really?

  6. Canamalar it looks like OCD obsession on

    Best explanation for the physics of 9/11 and I expect most will agree

     

     

    9/11thology.com

  7. Delaneys Dunky on

    D17

     

     

    I don’t mind CR7. He bought me and another 20 CQN guys n ghirls a drink, the day we won the treble last year. Good type. :)

  8. Delaneys Dunky on

    Canamalar

     

     

    You listened to Mr Deighan Saint Tams physics genius, too much.

  9. Delaneys Dunky on

    BP

     

     

    A wrong wan is wee Chic.

     

    Would you lie and say you were an Airdrie fan really? Strange wee man.

  10. big packy on 3rd April 2018 4:39 pm

     

     

    HH mate! If you have any luck with the dug coats, would nae mind the details!!

     

    HH

     

    TC45

  11. Decided to pick 4 games tonight where I though there’d be at least 3 goals in each game. Decided that Easter Road wouldn’t feature. D’oh!

  12. DD,

     

     

    the CR7 story of buying the drinks was a highlight on here. He obviously wants to play for us next. for free.

     

     

    disappointed that Zlatan didnt offer himself to us.

  13. Delaneys Dunky on

    TheCelt45

     

     

    Have you checked out The Exiled Tim’s site?

     

    He does some beautiful leather collars etc.

     

    HH

  14. THECELT45, been trying to get these coats for ages, but getting false information but if this comes off,i will let you know hope you are well.hh.

  15. JIMTHETIM53 on 3RD APRIL 2018 7:50 PM

     

     

    You cannot show domestic football on ECL nights.

     

     

     

    KTF

  16. the rsin this side of the bridge is bliddy torrential. what an easter break this is.

  17. Delaneys Dunky on 3rd April 2018 8:13 pm

     

     

    HH DD! Sure have.

     

    But we have a selection of Celtic dug collars already. Need a coat for the two cauld days we get here in SE Texas! :)))

     

    BTW, great too have ye back and hear yer doing well!

     

    TC45

  18. !!Bada Bing!! on

    Fulham v Leeds live on Sky, they changed it last year but i think you pay UEFA a levy to show games

  19. Delaneys Dunky on

    Fieldof Drams

     

     

    Click on his green name.

     

    I have a quality Celtic leather bracelet he gifted me. His dog collars are a work of art.

     

    HH

  20. fieldofdrams on

    DD

     

     

    Never realised that clicking on the green names revealed such magic. Thanks again. Hope everything going well for you.