Newco: trading loss, commercial gap, High Court. A familiar story unfolds


It doesn’t really matter to you or I who Newco buy or sell, but it is unedifying to see a campaign run over weeks to generate cash on the back of a guy who specialises in goals against the likes of Hamilton and St Mirren.  Yesterday we were asked to believe that Alfredo Morelos declined to go to China as part of a £30m deal.  The like of this story has not been seen at Ibrox since the last days of Oldco under Craig Whyte.

You would be forgiven for worrying that Newco have some cash issues.

In their most recent annual statement, for the year to 30 June 2018, they lost £14.3m.  That season did not include revenue from Europa League group stage qualifications, which the most recent season did, but when the next accounts are published, they will also show a significant increase in expenses.  I expect losses to be in the £7m to £10m region, before adjustments are made due to the recent High Court judgement in favour of Sports Direct.

That judgement, which is no longer subject to a potential appeal, has incredible commercial reach.  If you visit the Shop at you can buy match programmes, hospitality, Ibrox tours, pictures, bricks, TV subscriptions and lotto, but you cannot buy so much as a novelty duck, never mind a replica shirt.  Sports Direct are linked from the Partners page, where they sell Puma kit of 2017-18 vintage.

This lack of revenue from club merchandise will hit Newco directly, and indirectly, when their inability to perform to the terms of their contracts with Hummel and distributor Elite Group for this season are calculated.  This is in addition to the compensation they will pay Sports Direct for loss of profits last season and this season, and the compensation they will pay Hummel and Elite Group for their contracts for next season being set aside.

Then there are all the legal costs.  The total cost of Mr Lionel Persey QC’s judgement could easily top £10m.

Should Newco fail to qualify for the Europa League group stages, their top line will take another £10m hit, although expenses will remain well above the figures we have for the year to June 2018.  Under those circumstances, Dave King might consider a £14m loss a “favourable settlement”.

We have been here before, when Craig Whyte faced what looked like impossible obstacles at Oldco.  The biggest mistake observers made then, was assuming Whyte had a plan to keep the club solvent.  He didn’t, there was no such plan.  This fantasy chat about a player who scores against the wee teams in Scotland, despite Steven Gerrard’s confirmation that no bids have been received, looks like an all-too familiar scenario.  It looks like a ‘Hail Mary pass’, if you can conceive such a thing at Ibrox.

This club needs a huge investment to meet this season’s obligations, and will need ongoing financial support until expenditure is brought down to sustainable levels.  It is always possible someone will find the tens of millions required and that they will qualify again for the Europa League, but I see no appetite for living within their means – an enduring anathema at Ibrox.

That being the case, it is a matter of when, not if, reality bites.  None of this means we are going to win nine-in-a-row (we will address this tomorrow), Oldco won the league in 2011 when in dire financial circumstances, but it should inform us that not everyone makes decisions with due concern for the consequences.  It would be interesting to know if HMRC, Sports Direct and other commercial creditors constitute more than 25% of monies owed.

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  1. Season Tickets, 3 new strips,3 Day Festival, £23 last round, £26 for Cluj game, getting fleeced yet again……….on top of all the accumulated money from Armstrong,BR money et al,and still looking for a right back, an absolute joke.

  2. The Battered Bunnet on

    Yip, the basket case of assets. It’ll be interesting to see how the dynamic between SD and Elite plays out. They’re each down about £3m per season for two seasons (call it £10M ball park), and their interests conflict in terms of cash owed versus future trade.



    Best case, Elite walk away and put it all down to experience, while SD get their dough through a new, more onerous contract. Doubt Elite/Hummell are minded to do the walking away thing, though.

  3. Go tell the Spartim on




    Thats the Celtic way and runs parallel with the “Rangers” cheating/trading whilst insolvent etc



    Ive never known it not to be the case

  4. Bada Bing sorry a joke is usually humorous/funny, nothing funny about that. At least Dick Turpin had the decency to wear a mask!! H H Hebcelt

  5. Hunderbirds are Gone on

    I know that this is well trodden ground and has been well covered on these pages. Going by headlines only (I don’t click much) the meedja, when discussing KT’s possible move, are using headlines along the lines of “Arsenal and Celtic squabble over £2m for Tierney”.


    Rather than the more correct “Arsenal bid £2m short of Celtic valuation of Tierney”


    I choose not to do the bulk of my shopping in Tesco, as Aldi is cheaper for the same quality, but I am not “Squabbling” with Tesco over their prices.





  6. I note that PL has stepped down from the Professional Game Board of the SPFL, the most powerful committee in the Scottish Game, replaced by Robinson of Sevco.


    It must be hellish sitting at meetings, listening to bigoted huns talking drivel, knowing that most, if not all, others present hate you and your club; yet your club has won nearly every trophy going recently, your so called closest rivals are committing suicide in a most humiliating manner, and the gap is widening.


    PL must need a break. His sides must be in agony.

  7. 36 players in the zombie squad according to Sky Sports.



    They have 15 midfielders on the books.



    The wage bill must be frightening.

  8. Someone said earlier”Celtic treat us as customers”?Sorry to disappoint you,butbthat is exactly what the fans are.Paying customers.Celtic sell a product,people buy it.Its not forced on you.You either buy,or dont.People on complaining about the price for a European game,but there are thousands out there,who will pay more to see St Mirren v Celtic..We can never get enough away tickets to please the fans.The 3 European qualifiers would have cost fans paying around £18 per game.Is this really “Unreasonable”.


    No matter what day it is,what happens,there are always moans about something.It seems the more success we get,the more complaints.Very strange.

  9. 16 ROADS,


    If you take the wages of just 3 of those players,Morelos,Davis,Defoe,probably around,£5 million per year,it shows you the madness going on at that club.God only knows what Gerrard and his army of assistants is costing them.Financial madness.If they dont make the Euro groups,God only knows.

  10. !!Bada Bing!! on

    Neveralone- fed of being played by Lawwell, heard all the excuses (or reasons),for not getting a RB in,and renaging on a deal with Lustig, we done same with Boyata and Dembele last season BTW…..and wait for it…..we’ve just bought a CB for £6.2m……and a LB for £3m…….,these are players we need for obvious reasons. If we brought in a CB last season, we wouldn’t have lost £10 m plus on Boyata going for free,a sacking job for Lawwell IMO,and a replacement for Dembele, we wouldn’t have sold him as cheap as we did.Yeah let’s all move on say the happy clappers,but we are still fannying about looking for a right back, and our most valuable games of the season are next week,gross mismanagement.

  11. Disappointed that Celtic didn’t put up another nominee for this position. We have 2 boards. PLC Board and Football club board. 7 on the PLC Board.



    These Boards are I am sure, a pain in the ass, but they are important and we should be keeping an eye on them.



    Due to lack of transparency, Gordon Smith was appointed CEO of SFA and we didn’t know until it was a done deal. The 5 way agreement was done without our knowledge.



    It is essential we keep our eyes on the manouvers by the Huns who are again in Financial insolvency and are


    breaking all with the help of their Bretheren

  12. !!Bada Bing!! on

    Bigbhoy- Lawwell will see it as beneath him to sit on these Boards, he’s too busy with the prawn sandwiches in Nyon,but we have enough ‘renumerated’ on our Board to attend these meetings.

  13. The Johnatron on

    …. and yet to read the SMSM you wouldn’t be aware of such issues. They really are an incredible beast our SMSM! Not a mention on the BBC website, nothing. Not even on the *Rangers own team page. Surely something like this is in the fans interests? Yet Club 1872 still “boycott” the BBC claiming biased treatment against their club! Hunbelieveable! I truly hope Sevco 2012 go the same way as Glasgow Rangers 1872 did. Down the swanny. The sooner the better.

  14. We currently have listed 26 players with Arzani being on loan. We have 3 further players on loan. 12 in Reserve squad. Oko-Flex and Dembele are not listed in either squad



    We should be looking to loan out Jack Hendry, Calvin Millar, Eboe Kouassi, Vakoun Bayo.



    Last Season at one point under Brendan we had 41 players.



    We are all aware that we need a RB and a CH and if we lose Kieran then a LB, Likely one midfielder and a Forward. 30 players is more than enough with a reserve squad back up

  15. Bada Bing



    It’s probably is beneath him, listening to the Scottish club nominees.



    Nyon is UEFA so not prawn sandwiches, more likely caviar and the ECA as well, more caviar. Not good for the diet

  16. Big Bhoy, no quibbles about loaning or selling Hendry,Millar or Kouassi but I think Bayo could have a big part to play this season if we can keep him fit.

  17. TURKEYBHOY on 1ST AUGUST 2019 1:07 PM






    Eye watering sums of money indeed.



    It’s almost miraculous they have survived up to this point considering that they have no credit line from any bank.



    HH. 🍀

  18. !!Bada Bing!! on

    Miller and/or Ralston being kept as a make weigh for our No1 RB target O’Donnell….

  19. BADA BING,


    I pay for 2 season tickets.I pay for Celtic TV.Not that its any of your business.I followed Celtic everywhere for as long as I can remember.All over Europe.Season ticket holder since the new stand was built,where I had a seat in the hospitality section for 3 years,until I left the country.I have paid ,and still do,to the love of my life.To me,it is a priviledge to follow Celtic.I said earlier,that is my prerogative.If I did not want to pay,I would’nt.Its everyones choice,but as I said,to complain about an average price of £18 for 3 qualifiers,when watching the likes of St Mirren,St Johnston,Hamilton,for more,is just another daily whinge aout anything Celtic.


    These 3 games are £4 more than geting a ticket for 1 Hun game.Perspective.

  20. !!BADA BING!! on 1ST AUGUST 2019 1:44 PM


    Miller and/or Ralston being kept as a make weigh for our No1 RB target O’Donnell….






    Not funny :(

  21. Buffalo zombie, £30million transfer fee



    Stolen from Columbia, brought to Govania 🎶

  22. Bada,


    Cant see O’Donnell signing.





    Bayo will be going nowhere this window until Lenny gets a chance to really see him play.Could be anything.Looked as if he had something about him in Austria.

  23. So these are the post-Cluj possibilities….which lands us a wee £5m cheque for our troubles too.



    Young Boys of Berne


    APOEL / Qarabag


    Slavia Prague


    Maribor / Rosenborg



    The annual Rosenborg get-together would be nice :)

  24. See the Copenhagen boy Ankersen,a RB is on the market for £2 million.Milan sniffing.Good experience,looking at his stats.Very good.We were sniffingvaround him before.Seems a bit of a bargain.ML mark 2.

  25. I am surprised at such a fine chap as bada complaining re the price of a ticket for European games at Celtic Park.


    Like most pensioners , I have to give priority to some `goods` over others. I have no hesitation in paying the asking price for games at Celtic Park. I would still be happy paying the non-concession prices ( I hope PL is not reading !).


    There may well be some who would love to but cannot afford to go to any games . Just like there are many who cannot afford expensive holidays, food, drink etc.


    In a nutshell. I am perfectly happy with the prices charged to go to see my team .




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