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. Canamalar it looks like OCD obsession on

    France security forces used against civilian population protestors – fascists?


    UK security forces used against civilian population protestors – fascists?

  2. Canamalar it looks like OCD obsession on



    Democratically elected parliament were ratifying the extradition treaty, the protestors violently stopped the parliament carrying out their democratically elected duty, how does that equate with supporting democracy?

  3. Canamalar it looks like OCD obsession on



    No one is forcing you to read it, so it’s not a request it is an attempt to own the narrative on what’s allowed to be discussed, scroll past if you don’t like it, no need for comment.

  4. And another thing. I’ve got a couple of tickets for the game tomorrow, two adults, Lisbon Lions lower level. Can bring them through to Glasgow this afternoon or can arrange to take them to Celtic Park before the game.

  5. Request : an act of politely or formally asking for something. I believe that is what I did. Not remotelly interested in “owning the narrative” H H Hebcelt

  6. traditionalist88 on




    Aye, he/she who doesn’t ask questions learns feck all.



    I have asked many questions throughout my life and still wonder if some of the answers I was given were 100% correct.





    Asking a question does not mean you are duty bound to accept the response in full or in part.




  7. Canamalar it looks like OCD obsession on

    And yet here you are still harping on about a narrative you don’t want to own, as I said scroll on if you don’t like it, commenting is making a claim on the narrative.

  8. Canamalar it looks like OCD obsession on



    I believe over 2000 representatives voted for, in that article, voting is the democratic process no?

  9. Banks and financial institutions- Real masters of capitalism where they’ve managed to privatise their gains and socialise their losses.



    So socialism is ok to some capitalists when it suits, complete hypocrisy.




  10. macjay1 for Neil Lennon on






    You got me there.


    Banged to rights.





    2,000 representatives.


    Well that`s democracy fur ye.




    Hang on a mo.



    The current population of China is 1,419,915,992 as of Friday, June 21, 2019, based on the latest United Nations estimates. China population is equivalent to 18.41% of the total world population.

  11. CONEYBHOY @ 11.16



    I don’t think we’re actually ‘dithering’ at the moment, we’ve just deliberately stopped signing players and are waiting to see what ‘players come and players will leave’ © NFL.



    We need to wait and see if we get to the qualifying round, before we start ‘dithering’ again.

  12. Canamalar it looks like OCD obsession on



    Your point?



    The USA probably the most corrupt democracy in the world and champion of tyranny whom you support, is trying to overthrow the Venezualan government put in place through the most rigerous democratic process in the world (Carter Institute).



    Really no sure about your understanding of democracy, apparently democracy is the freedom to vote for capitalism only, any other result is not democracy, is that about right?

  13. macjay1 for Neil Lennon on






    No answer.


    So you shift your ground and / or change the subject.



    Sadly , we have no common ground in relation to the the dangers which are to be faced.


    You are true to your truths.





    We have Celtic in common.


    Maybe we should concentrate on that.

  14. Canamalar it looks like OCD obsession on



    I didn’t see a question about China, was there one?



    My shifting ground was simply to demonstrate your double standards on what democracy means.



    Unfortunately ‘my truths’ are all backed by evidence.


    Election rigging in the USA is well documented.


    Senate and House of Representatives revolving doors between lobbying and government appointments.


    Venezualan constitution and electoral process were agreed on by all internal parties, only the US objected.

  15. Celtic going for NIAR with Lenny in charge must be akin to armageddon for the huns. I fully expect mibbery to reach unprecedented levels in order to stop the hoops where the season of honest mistakes will seem timid in comparison. Don’t fret I have a plan.



    Here’s an idea. Why don’t we use the considerable cash reserves we have to buy a replacement for Moussa and PC Lustig. Two good quality first team ready players to bolster what we have and give Lenny the tools to finish what he started.



    I know the window is still open but why the delay ( in getting replacements ) when our season started a few weeks ago.



    Would like to see them in soon, far too much at stake this season to take unnecessary risks.




  16. According to brexiteers,trading issues after brexit will take between 5 and ten years to even out with WTO rules supplanting eu trading. Within that timescale THOUSANDS of people will lose jobs as companies cut their cloth resulting in despair for families unable to bring in a wage. Historically these families never fully recover and whole communities dissolve. This is a fact.


    Benyamin Habib brexit mp has moved his company to be able to buy up companies that crash because of brexit.He will obviously buy them at rock bottom prices. Tories never change. they care not a jot about the working class as long as we are quiet. EU needs radically changed but is the only thing that can keep this right wing gov in check, at least up to a point.



    Have your own opinion of course, but trite comments only show a limited range of thoughts




    and by the way sevco to go bust every day of the week

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