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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Mea Culpa
Problem is, there are a hundred and one scenarios concerning the hun, we really don’t have a scooby what is happening over there, we can speculate till the cows come home, and we will get nowhere.
Until the msm break the story, and they will, we are all poking around in the dark with our blunt stick.
What will be will be, they will still have the powers onside, they will still have the referees onside, and that is what bothers me, and always will till they are reformed and are open and transparent, and honest, that may well be a task too far.
At some point,someone will step out from the sewer and save them, that is a given, there may well be a couple who claim to be the real huns, but trust me on this, the real hun will be the ones who have cowdenbeath in their plans, it’s getting closer by the day.
HH
Clunks –
Just read that online. Desperately sad news if true, my thoughts are with the family. I cannot imagine what they are going through at this moment in time.
Curly
clunks
01:19 on 18 January, 2014
We boy from Edinburgh’s body been found. Man been detained.
Fucking awful. Why in the world would someone do that. Just tragic
________________________________________________________
The whole case is ridiculous, a 3 year old kid jumps out of bed.
Wake UP – Chip Implants is the Hegelian Dialectic.
FFS
http://www.youtube.com/watch?v=C2ZKQfp7D6U
late in, was going to have a wee moon howl session, wont do now.
keep it lit.
Something just no quite right about the tragic circs of the young fella from Edinburgh, I have resisted posting about it.
Something just never rang true about what was getting reported.
I feel for the innocent involved here, say no more.
Comatosed Girlfriend
And they have arrested his mother, how sad.
TET
Just saw that.
just brutal. I am not religious or particularly god fearing but a wee prayer will get spoken tonight
The Dubliners live in Dublin 1984
http://www.youtube.com/watch?v=eU8GC8Foyvk
I was watching War of the Damned and dozed off. I started reading the whole blog from the start and what a brilliant laugh until reading Clunk’s post about the little boy missing in Edinburgh. Utterly tragic. No words I can muster will hold meaning on the loss of this wee innocent.
Petec, I don’t get your drift. Are you advocating the microchipping of children?
clunks
That is what I meant about the reporting, the polis knew fine well what they were doing, the reporting was out of order imo, and there are so many instances of the same reporting.
The wee fella will be in a better place now, so feckn sad.
HH
Torontony, if you’re still looking in, good to see you are in good form. I’ve a nice dram you may be interested in next time you meet our shores. More on this to follow.
Say hello to Mike and enjoy the game tomorrow. I’m heading off at 11.00 with young acgr and jungle jim in the acgr boogie bus. Lunch at coias with my wee bro PC67, and the bhoy’s first pint with his dad since being officially old enough to swally. Then meeting up with Doc and miss Doc, The sisters bmcuwp and our own BRTH to hand off some drams.
Should be a good day oot in paradise.
Drop me a line when you come over, we can dram together.
There are no places where the truth gets reported now.
I thought it odd that the mum had not been in a press conference etc.
They report whatever will generate the most fear. As its what keeps us in line.
We moan on here about the SMSM reporting the truth on the huns when there are far more serious things that are completely misrepresented or outright lied about.
We as a society are doomed.
Long live the revolution
long start the revolution,
kilkenny,
john.
http://www.youtube.com/watch?v=N76kAivCb20
A Ceiler Gonof Rust,
It is Blatant noo………
TET, we should be an even match when we meet. I’ve not swung a club since we humbled the young un.
Two things:
Don’t forget to post the pool and fleg pic.
Bring the Fleg with you, it should really put in a guest appearance at the CQ10 gig.
Bring an overnight bag and yer lovely missus, lets get two rounds of sclaffbaw punctuated by a proper Celtic get together.
Aye aye, I know, that was three things.
HH
clunks
How true, but how sad.
I will wager now the the young fella has been dead for a couple of weeks, and the polis knew that all along.
Fear, divide and rule are but two of the things that keep us in our place.
What a sad state of affairs.
HH
St Stivs
Indeed.
We will be waiting for a bit yet but the momentum is a gathering. Just not fast enough.
We will be judge on how we looked after the weakest in our society by our children.
Right now we are letting the disabled and unemployed be starved out of existence. Once they are done with them they will come after us.
There are no communities anymore. There is enough for everyone. More than enough
Phyllis:
I remember Charlie. Gem.
Petec:
I can’t be half right about something I was not talking about. If people want to gloat that is their business.
There are some on here whose posts are exclusively about the hun yet they refuse (rightly or wrongly) to admit they are the same club, or crew, or company, or whatever, it just bores me.
I was actually posting about hate and those whose lives are nourished by it, and what I perceive, on our part, to be a much unfocused focus on who it is in particular made (make) it their business to harm us, that’s all.
Like I said – hate begets hate and hate has a price, it always does.
The Hutu Ten Commandments:
The ‘Hutu Ten Commandments’
as published in Kangura, No. 6
(December 1990)
1. Every Hutu must know that the Tutsi woman, wherever she may be, is working for the Tutsi ethnic cause. In consequence, any Hutu is a traitor who:
– Acquires a Tutsi wife;
– Acquires a Tutsi concubine;
– Acquires a Tutsi secretary or protégée.
2.Every Hutu must know that our Hutu daughters are more worthy and more conscientious as women, as wives and as mothers. Aren’t they lovely, excellent secretaries, and more honest!
3.Hutu women, be vigilant and make sure that your husbands, brothers and sons see reason.
4. All Hutus must know that all Tutsis are dishonest in business. Their only goal is ethnic superiority. We have learned this by experience from experience. In consequence, any Hutu is a traitor who:
– Forms a business alliance with a Tutsi
– Invests his own funds or public funds in a Tutsi enterprise
– Borrows money from or loans money to a Tusti
– Grants favors to Tutsis (import licenses, bank loans, land for construction, public markets…)
5. Strategic positions such as politics, administration, economics, the military and security must be restricted to the Hutu.
6. A Hutu majority must prevail throughout the educational system (pupils, scholars, teachers).
7. The Rwandan Army must be exclusively Hutu. The war of October 1990 has taught us that. No soldier may marry a Tutsi woman.
8. Hutu must stop taking pity on the Tutsi.
9. Hutu wherever they be must stand united, in solidarity, and concerned with the fate of their Hutu brothers. Hutu within and without Rwanda must constantly search for friends and allies to the Hutu Cause, beginning with their Bantu brothers.
Hutu must constantly counter Tutsi propaganda.
Hutu must stand firm and vigilant against their common enemy: the Tutsi.
10. The Social Revolution of 1959, the Referendum of 1961 and the Hutu Ideology must be taught to Hutu of every age. Every Hutu must spread the word wherever he goes. Any Hutu who persecutes his brother Hutu for spreading and teaching this ideology is a traitor.
Pete, no it’s not.
The liar video, which I was guilty of spreading, Zeitgeist, because I was hungry for knowledge.
I spread that virus through my whole workforce because I thought it had to be shared, checking the credits, I’m still ashamed.
ACGR
I can do most of what you ask, sadly Mrs TET will not be there, unless you can oversee a dug sitter, and a cat sitter.
I may well manage to persuade her to come down for the day, but as she is rather busy, so wouldn’t hold out much hope, but I will try, I will manage a pic of her holding up the fleg though >}
And it will be returned, unwashed, wouldn’t want to destroy the essence……..
talk soon mi amigo
HH
Petec
Mate.
Re. the tragic news about Mikaeel.
May he rest in peace.
What was reported was tactical.
As was what was not reported.
The early massive response I.M.H.O.indicated that the police held grave fears.
Sleep well Timland
HH
KTF
The bored have accepted a 15% pay cut …wow..well done..awe wait a minute..sorry I should have read to the end. Its the hun club that are deid but really urny in the first year doing business under the auspices of _________ (Insert Tim palpable name here) that are imposing a 15% pay cut on their players..which reminds me of something.
kitalba
02:01
///
Do you think the Greatest Trick the Deviant Devil ever done was convince the World…., well you know the Robin Red Breast?
Kit, long time no speak bruv. I hope you’re well. My mrs went a bit doo lally when one of my phone bills came in end of last year. I think one of our chats was in excess of a ton.
Very important business say’s I (Resolution 12 and a chat wi a great Tim).
File it and get it paid were my last words on the matter.
I’ve been seeing some of your “hate” related posts but not enough to know the full origin. Made me think though. Where are the lines and where are the boundaries between love, like, tolerate, despise and hate and lots of shades of grey?
I don’t hate the huns but I certainly loath and despise them. That might border on your idea of hate.
My hate right now is solely reserved for the bastards who broke into my home and robbed me of belongings and my family’s belief that I would always take care of them.
I’d gladly crucify and rob them of their ability to do likewise to others. Is that hate?
Take a look at these hands
the slight of these hands
keep your eye on these hands
The hand speaks. The hand of a government man.
Well I’m a tumbler. Born under punches.
I’m so thin.
And the tweet goes on…And the tweet goes on…And the tweet goes on…
And the tweet goes on…Where the hand has been…And the tweet goes
on…And the tweet goes on…And the tweet goes on…And the tweet goes
on…And the tweet goes on…And the tweet goes on…And the tweet goes
on…Where the hand has been…And the tweet goes on…And the tweet
goes on…
I’m not a drowning man!
And I’m not a burning building! (I’m a tumbler!)
Drowning cannot hurt a man!
Fire cannot hurt a man. (Not the Government Man.)
ahhh Friday night
http://www.youtube.com/watch?v=tzmLSSNSaWw
ACGR
Love is the key in all decisions.
Its not the easiest but it is the best.
We are being divided in Scotland by our hatred of religion and latterly by independence.
Can you imagine then force we would be for good if we all came together and created what is needed.
Maggie doll, are you over for the do in March?
You owe me a babycham and lemonade for sorting oot that wee bammer bro of yours………….. twice:-))
ACGR
Naw sorry man I will be in China watching Celtic and Neil’s last few games in charge.
But I will leave instructions for that babycham :)
clunks
02:26 on 18 January, 2014
ACGR
Love is the key in all decisions.
Its not the easiest but it is the best.
We are being divided in Scotland by our hatred of religion and latterly by independence.
Can you imagine then force we would be for good if we all came together and created what is needed.
______________________________________________
The debates on here are very guid. I just WISH More would Ask GoD to Guide their Lives.
Politics is defo a massive control instrument of the non existent entity. :))
The politicos coming through now are useless.
http://www.youtube.com/watch?v=YyaSQLlS5e8
Clunks, I’m not a religious man so I’m not being divided by a hatred of religion and my view on independence doesn’t merit being considered as a factor for hatred.
I wont let my mind be swayed on politics and my children’s future based solely on the utterings on this blog. As such I ignore the independence debate here while I’ know exactly where my vote will go.
I vote for Mackies Icecream and lashings of it, with green jelly.
HH Bruv
petec:
don’t forget apathy.
A Ceiler Gonof Rust:
I’ve had a few surprising phone bills too and likewise similar conversations with the beloved.
Mate, I don’t want to define hate to you, my interpretation of hate may not parallel yours, but I don’t hate the gullible huns. They were brought up and taught a mantra just like we were. Some of them may have misinterpreted the message and are just fools.
It is the ones who preach and promote hate and all that it entails that I hate. I suppose what I’ve been posting about is a perceived lack of focus and appropriate action on our part and the part of all who have been deprived because of the bigoted rule writers.
Tragically, a 3-year-old boy has died, probably in horrific circumstances, and before we even know anything of the circumstances, the usual suspects are on here with their sick conspiracy theories . . . ie he disappeared weeks ago and the police have known all along and it’s all about “fear, divide and rule”.
Get a grip on yourself FFS you sick bastard!!!
Are you devoid of ALL humanity?
NOW I do have a problem with you and I bet I’m not the only one.
Jesus wept!