Got into a brief conversation last night about whether administration and liquidation were likely at Newco Rangers.
The club’s creditors will be few and of comparatively low value, nothing like their predecessor club’s £100m debts. They will owe HMRC vat and PAYE money, utilities and other trade creditors will be owed no more than a small number of money’s month. Newco have not been able to secure bank borrowing, so that’s not a worry, but there may be directors’ loans, as well as wages in arrears.
The upshot of this is that money saved by ditching creditors is limited and unlikely to offset the damage administration would do to a club with less than two years trading history. The only significant action that could be taken in administration would be redundancies. Playing staff could have their contracts terminated by administrators, bringing to an end the Charles Green extravaganza.
Liquidation is an unlikely to occur as a consequence of the short or medium term challenges.
The most surprising element of yesterday’s news is that players were asked for such a modest pay cut. 15% of player salaries will not change the fundamentals and will save very little (circa £300k) between now and season ticket renewal time.
Keep your eye on the sale and leaseback of properties we discussed here since 2012. If Ibrox and Murray Park are sold (potentially to existing investors looking for their payback), Newco could get some relief between now and being able to reach the Premiership, while the investors would become less anxious.
The cynic would say that being able to lay blame for selling Ibrox on players for not taking a modest pay cut is a convenient line. Selling your main/only fixed assets to a commercial investor is a horrendous prospect as you will left to pay the consequences in perpetuity, you also lose collateral, making future borrowing more difficult and expensive, but, right now it’s a decent option for Newco. Their future is screwed, not because of a land deal (delightful irony), because of what has happened on that land over the last two decades.
The fundamentals remain:
Running a football club the size of Celtic, under normal conditions, costs anything between £17m and £22m – before you employ a footballer. Utilities, rates, policing, stewarding, insurances, maintenance, ticketing, PR and the tasks circa 200 people carry do not come cheap for a club of this size. When budgeting for football operations, start to count your football income after you’ve banked money around this level.
Newco Rangers will be a fraction below this at the moment, but if they are to continue to operate a business capable of entertaining (sic.) >30,000 people several times per month they will not be able to eat into these costs significantly. Insurance, rates, police and other costs need to be met; face painting is optional.
A club the size of Newco Rangers, or Celtic, is not viable without regular Champions League income, and is not possible short term without splurging into higher debt. If Celtic slip away from the group stage for an extended period, they will have to downsize all areas of operations. Football budget would be much more like Aberdeen’s.
Keep in mind the words of the magnificent Blue Knights. While ensuring Charles Green was left in an invidious position to start his new enterprise from, they were clear, only a CVA, leaving Rangers in top flight football with access to Europe, was viable.
This BBC article adds insight into what I referred to yesterday about former Southampton chairman, Nicola Cortese: “A presentation to the players in April last year did not ask if Southampton can win the Premier League, but how can they win it?
“Players were asked to fill out questionnaires. What time did they wake up at home? What were their habits? Did their children wake them, did the dog? The results were analysed and changes were made.
“When Southampton travel away from home, the hotel is often booked for two nights rather than one. On the first night, club staff arrive and clean the already pristine rooms. They vacuum up every particle of dust that might cause illness or carry a bug.”
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:-) Nice
http://twitter.com/CollectCelticFC/status/424273502183505920/photo/1
!!bada bing!!
22:46 on 17 January, 2014
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Bada they may not have updated the companies website with that particular crest but what I was saying is that the terms “The Old Firm” and “Old Firm” are Trademarks registered to Celtic FC, they do not appeared to be co-registered with the huns/zombies.
Cowiebhoy- thanks
Cowiebhoy supporting the Celtic to 3 in a row
Very Nice but a bit quiet
Just seen on facebook
“I dont know if John Valentine (the R*ng*rs centre half) Had any faith in George Niven(the R*ng*rs goalkeeper),
or Niven had no faith in Valentine,but ultimatley they had no faith in themselves,
Something you can sense very quickly on a football field, and inevitably the game became a Rout.
Bobby Collins speaking after beating R*ng*rs in the 1957 league cup final.
GerryBhoy
21:33 on
17 January, 2014
Just took a break to watch our Big ’67 Cup win on an old vhs. What a team we had; absolutely crucified cattenaccio; the first real attacking fitba in Europe that the Dutch studied, adopted and implemented afterwards. When you see how good we were, it makes your day, as it did mine tonight. My uncle John was there in Lisbon. He was a real Celtic mhan and it was great that I could invite his son to Seville; another great effort at Europe’s top table.
MorethanaclubCSC
When i 1st watched the match it was actually on a cine reel projector up in the loft which had been floored and kinda turned into a playroom/more organised loft storage area if that makes sense!
Anyway, it was a good place to hang out at times and with my basic understanding of how the projector worked id feed a reel of film into it after setting up the screen and sit with my pal to watch it.
I was too young to appreciate it at that time and was always too focussed/scared that the film would stick and get burned…..which it did once or twice(sorry dad)
Even though it was so long ago, i hadn’t actually sat down and watched the whole game until about 2 years ago on dvd……which was a little more relaxing than cine film!
Being a lot older and perhaps a bit wiser watching the game was gobsmacking.
Anyone that knows anything about football kinda knows that the Italians can be very good at defending…..and when they create a team that excels at it…..well…..they will be a seriously tough nut to crack.
Sometimes you can actually see teams literally giving up after they have lost the belief that they can break a team down.
Many a team would have done that day…….BUT…..perhaps a few wouldn’t.
The Lions didn’t and not only was their belief/mental strength such a factor in overturning a deficit to that team a factor, the fitness, ability, desire/tenacity that they showed….and not only for spells…..through the whole game in what would have been much more suitable conditions for the Azzurri than wee red haired Glaswegians.
One of the things that my dad often said was about Sarti being exhausted and hanging onto the post because of the relentless waves of attack by Celtic.
Sometimes it can just take a keeper to have a blinder to be the difference between winning and losing and he was a great keeper…..with an amazing defence…..having a 1 of those blinders…..yet that team still managed to overcome.
Like i said….i didn’t appreciate it when i 1st saw it but it really sunk in just how good a team The Lions were and the heroic’s that they performed that day.
The Rangers are dead
and Sevco are now on life support.
What will be their next reincarnation ?
sipsini
A know mate
Ma heart goes oot tae yi
HH
G64
I think they are going to need a bigger incubator.
Still haven’t brought myself to watch the Seville game again though :(
http://www.youtube.com/watch?feature=player_embedded&v=F-wVCMpbPLM
Billy No’Well’s latest tribute to fat Sally…brilliant!
HH
Cowiebhoy
Now. .. you well know I dont have any friends :(
And if this keeps up I think
I’m going to need a bigger float
My goodness Mail online has Lenny heading to Norwich “if” Houghton on decides to quit
Earlier had Sammi going to Everton,
Where do they get this p – – –
Hail Hail
sipsini
Daughter comes over every year with the weans for a hol, she is now 30, and I still can’t stop worrying when she goes out.
Enjoy >}
HH
TBJ
Still no decision ? Thurs I here
You wee pal didny know whether to react to the colours or potential new boss :-)
Hail Hail
The Cranberries-Zombie
http://www.youtube.com/watch?feature=player_detailpage&v=6Ejga4kJUts
musicnightCSC
from the steak bake king
“I totally understand the severity of the situation……”
“…but I am still not taking a pay cut and when can I sell my million penny shares without those gullible peepil noticing?”
Ok, last bit is me paraphrasing a bit :-)
HH
CRC
http://www.youtube.com/watch?feature=player_detailpage&v=h3h–K5928M
The Who – I Can’t explain…(why 9m signings drained all the money!)
Never invite a vampire or a hun into your home
Lostbhoyscsc
Can you have a Tribute Act for a Tribute Act?
http://t.co/KwTWHBCNkk
One keeps saying………………
Cowiebhoy
JN is a good guy.. one of my best friends in the company and one I can trust
I was with him on 14th feb 2012. Bt text me to say the huns had went into admin.. I didnt have the heart to break it to him.
Ten mins later he got a text and said to me … ffs rangers are in admin.
I said I know but didnt want to be the one who told you
As for the appointment. . The vatican elects popes quicker.
!!Bada Bing!!
I saw the drifters and they were all white
Tribute
Crc
You going tomorrow ?
Ive to pay you for my CQ10 ticket
You can have 5 tenners
200 shares in sevco
Or
200 empty irn bru bottles
http://www.youtube.com/watch?feature=player_detailpage&v=UkBCgsFkcDE
Glasgow’s Green and White
HH
Good night all
Lennybhoy see you just after 1 tomorrow.
Soal
Thats harsh.. They werent fantastic but better than all white ;)
Roy..of the rovers
When is ” our” next home match ;)
roy
Magic
See when I played that, I couldn’t see the vid he did, the Bob Dylan one where he was using cards, and I can’t remember what it was called.
any ideas?
HH
The Doors
http://www.youtube.com/watch?feature=player_detailpage&v=L5ndhb5PzhY
LA Woman
Youtube Video
“Guess what a did” tribute to the Zombies
Don’t know how to do the links thing .
TBJ
it might be next week…
greenrednyellowCSC
TET
Subterranean Homesick Blues
by any chance
Did the Celtic fans(a wisnae there)sing Arthur borac,Poland number one, for 90 mins
HH
TBJ
Agree on JN
Night night Bhoys, big day the morra, the Bhoys are back in town
TBJ
The bottles will be fine, at least they hold their value. Will you be able to drink them all empty by tomorrow?
See you tomorrow
HH
CRC