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 rangers.co.uk 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. glendalystonsils on




    Do you mean they would start in tier 4 as Sevco did or in the tier they were in at the time of going bust (i.e. the top tier?)

  2. Re our LBs


    Why would we sign a septic tank like Andy Gutman if there’s no paperwork that allows him to play?


    Like buying an imported car that can’t be registered for main roads use.


    Agree about him looking hungry and playing crisply. Was he simply a squirrel or a ‘spite them’ purchase?


    Or are we hoping he becomes a US international and we sell him for squillions? Mibby he can play RB ?


    Poor guy.

  3. Do people not listen to what that horrible shower think of us?



    Anyone wanting them to survive most certainly doesn’t live in the west of scotland.



    If this means 25-30k attendances…a small price…be gone satan.



    Hail Hail.

  4. The_Huddle



    They rewrote the insolvency rules, with regard to administration points deductions, numbers of,


    consecutive seasons, and so on. The likelihood of any ‘financial event’ at Sevco would be a CVA which barring the points deductions, and if met, they’d carry on in the same division.



    Were Sevco to be as bust as original Rangers i.e dead then it would go to a vote which resulted in 10 – 1 for the bottom tier.



    The rules themselves aren’t detailed enough to explain ‘dead’ as in Parott or Rangers dead.

  5. FRED C. DOBBS on 1ST AUGUST 2019


    11:11 PM.




    Well Sed Fred…… 👍

  6. Melbourne Mick on

    Hello again all you young rebels.



    Oh good a list!


    Definitely Huns bust for me.


    H.H Mick

  7. FRED C. DOBBS on 1ST AUGUST 2019


    11:44 PM




    My birthday is next week (Transfiguration of the Lord)……. 😊

  8. Back to Basics - Glass Half Full on

    That silly boy who pretends to be a journalist at the Evening Times (1876 – 2020) … Jack somebody? … finally gets his wish that Sevco will meet Shkendija.



    Tonight they are side by side in the Uefa rankings in joint 141st place just a fraction ahead of the best known team in Wales.



    The New Sinners ahead of the New Saints as it were.



    OK, it was the “holding company” that was liquidated so the “Old Sinners” it is then.



    Feel better?



    Someone tell the freelancer?



    Good night and hail hail

  9. Does anybody know why Etims has disappeared since July 25? Unusual length of absence.









    Are ye…… 😊


    I’m a Lion (Leo) maself.

  11. macjay1 for Neil Lennon on

    JAMES1955 on 2ND AUGUST 2019 12:44 AM



    Enjoyed yer choons ,Corleone.





    Ah Murnae.


    But Senga is.




  12. A Ceiler Gonof Rust on

    Thebhoyfromoz, I cant imagine the pain and suffering you are going through just now.



    You and your family are in my thoughts.



    God rest your wee boy and love to yoi and yoir loved ones.




  13. Melbourne Mick on

    Just reading back now after a coupla days and see the tragic news


    regarding THEBHOYFROMOZ.


    So sad, condolences to all the family.


    And great to see the CQN Celtic family coming together as only


    they can offering sympathy and support.


    H.H Mick

  14. When I was working up in Rosyth, Big Stevie Fulton was the most helpful guy.



    My Dad was a Labourer.



    Definitely wan of the best ever Open Goal interviews.



    It is always to gie people an insight I feel. Genuine.






    I want Aiberdeen to do very well in Europe, I want Sevco to get as many coefficient points as possible – I dinnae understand the stuff but the more the NEW Club gets the better surely?



    It is quite complex.



    Brexit will be Delayed again and again… Until no Brexit.



    Or maybe not.



    The Progressive Left (again controlled) is Embarrassing.



    The SNP Desperate to get into the EU SUPERSTATE is the Obvious No Brainer.



    Dinnae forget Yeshua. Yer gonnae need him!!!!

  15. Logical Song/Progression.



    Paul67, said Lenny would be Back. Not in as many Words.



    Lenny is a highly tactical dude methinks.



    I hope we get some Silverware this Season.



    A refined Lenny.



    Celtic 2 Barcelona 1



    A Refined Celtic.



    Here is hoping.

  16. 9 in a row in a hostile Country, again.



    Love is the Ki.



    It is very Interesting the Orange Odour like their Circumambulation……especially @ places of Worship.



    The Links are Everywhere.



    NFL – Yer a SUPERSTAR.

  17. The Word disnae have Circumambulation.



    I Wonder what does?



    He SLpit Time.






    Celtic are Rocking.



    God Bless Every Supporter of Scottish Fitba.



    Big CS is Rocking the BT World.



    Sort the Governance oooot.

  18. OMG to lose a son at that age is an absolute nightmare. Tragic.


    My deepest condolences to the family.

  19. FRED C. DOBBS on 1ST AUGUST 2019 11:11 PM



    I totally agree with your thoughts about living with the huns in the west of Scotland. Just look and contrast their ” celebrations” at the Pavilion. Sectarian chanting and more warnings, compared to our good natured , colourful family entertainment night after night.


    This sums them up.



    However for me it’s all about the Celtic. Anything that benefits our club must be our priority.



    Hail Hail to all.



    PS : As Arsenal officially smash their transfer policy, they must not be allowed to treat us with contempt.

  20. macjay1,



    Respect, Always.



    We won’t be Allowed to Leave the EU.



    Democracy has just been TRASHED.



    The Almighty is the Focus, It has been for so long now.



    I listen to LBC regularly.



    Nigel Farage has a much better temperant than Jacob Rees Mogg has when callers question things.

  21. macjay1 for Neil Lennon on

    PETEC on 2ND AUGUST 2019 6:40 AM



    Well , Peter .


    JRM Seems quite comfortable with callers and hecklers in the clip I sent.


    However , whatever you think.



    Farage .


    Huge respect for his ability to cut through the jobbies and get straight to the heart of the issues .


    Certainly has a huge personal following .









    Post Brecon , it would seem that a general election is certain.


    May`s legacy. Part 1.