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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A Ceiler Gonof Rust:
I’ve got to go but if you send me through your home number again I’ll give you a call tomorrow around 11pm your time. (it’ll save me digging thru’ a heap of e-mails)
Margaret McGill 02:29 on 18 January, 2014
ACGR Naw sorry man I will be in China watching Celtic and Neil’s last few games in charge
…………………
Haw haw, made me chuckle mags, ya mad bam.
China you say? Any reports on just how tasty panda with cashew nuts is would be most welcome. Canny get real panda here in Angus.
Damn the WWF to hell.
Kit
Its about love and the lack of it.
Pete
God did not put us here for Him to control us.
Its always been about free will. We can choose to be filled with love or not.
I think the debate on British socialism has run its course. In my opinion the UKLabour party is the best of a bad bunch, however, this government is proof that English vote Tory. Even when they vote Liberal they are voting Tory. The reason the English dont vote Labour by default is that legacy class concious English terror of being labelled working class. Thats the problem Scotland has always had.The English fear of being working class even though they almost all are. So in my opinion Scotland should jettison England. try it alone. In the same way as the terror mongers warned us against Scottish armageddon of no Rangers the instant Scotland becomes independent there will be no
real SNP just Tartan tories. Then Scots can start working to a more fairer Scottish society.
I voted for Tam Dalyell 3 times and Robin Cook once. My postal vote in September will be for independence.
A Ceiler Gonof Rust
02:41 on 18 January, 2014
Grilled Panda arseholes on a stick. Worth the price man. I’m tellin ye.
Mags, where has your brother gone? Nice bloke.
“Haters don’t really hate you, they hate themselves;
because you’re a reflection of what they wish to be”
― Yaira N
Just got up and heard about that wee wean
FFS wits wrong wi this fucking world
God rest your soul wee fella
Rip
Petec, I’m happy you want god to guide your life, but I wont be asking anyone to guide mine……………………………….except me.
HH
Problem
Reaction
Solution.
Acgr,
Meeting mighty tim tomorrow, tickets are sorted, mind get suited and booted for the 14th march.
There’s plenty wummin oot there ;)
Mags, I’m slevering at the mere thought. If you see that on a menu here it’s more than likely red squirrel arseholes you’ll be served. Very good, tasty, not as endangered as the succulent panda but I doubt a squirrels ring piece compares to the real deal that you’ll be dining on.
Off to the fridge now to forage, you know how to whet a man’s appetite ya we teaser ye.
clunks
02:41 on 18 January, 2014
Kit
Its about love and the lack of it.
Pete
God did not put us here for Him to control us.
Its always been about free will. We can choose to be filled with love or not.
_______________________________
Bingo
________________________
The Societal Engineers, the Moon Men teh Sun Men…. Soh Cah TOA… they control the masses like SHEEP.
http://www.youtube.com/watch?v=OPvhUpnocx0
Morag McGill….
Ahhhh the old socialism debate resurfaces.
Party politics and socialism in the same debate.
An oxymoron if ever there was.
Tam Dalyell……now there is a laugh…..known at his University as…………………..
‘Tory Tam…Yer Labour Man’
Sipsini, suited and booted is no problem. I’m like meester Bond on a night oot in ma glad rags.
I don’t need plenty of wummin oot there, the current mrs acgr (and she’s in here) is perfectly acceptable.
If you’re squaring MT up for my ticket drop me a text with your details and I’ll transfer the funds to you.
P.S. I’ve still got your belt from TET. I might wear it on the night:-)
A Ceiler Gonof Rust
02:50 on 18 January, 2014
Petec, I’m happy you want god to guide your life, but I wont be asking anyone to guide mine……………………………….except me.
HH
_______________________________________________________
Top Drammer, I’m delighted yer happity tappity that I huv Yeshuah messing abo()ot with ma Life……
————————————————————–
X marks the spot
———
Health Warning
The following video may be injurious to your health,
Viewing may cause sore sides and fixed grins.
http://youtu.be/Cj9VEI7tWwM
Do androids dream of electric sheep?
ryecatcher
02:59 on 18 January, 2014
ratcatcher … Tam Dalyell a laugh..is that a genuine comment?
zimmerman
03:09 on 18 January, 2014
yes and they have electric wanks.
like a lot of CQN tossers
‘Socialism must come down from the brain and reach the heart’
Jules Renard
Morag McGill….
Substitute joke for laugh re Tam Dalyell.
so sally has been assured that there wont be another administration. looking good!
Acgr,
I know yer happy with your fine wifee, I’ll see you on the night, it’s no prob.
Just back in from putting the banners up for my daughters eighteenth…. Bloody cat was trying to rip them down.
Ratcatcher
One thing you learn on CQN (apart from the hun lurkers) is the sad preponderance of ignorant arrogant Tims.
youre up there!
Sipsini, that can be the start of our dram kitty, although I don’t think it would go far in the KDS. Plus I’d bet ye they have pish drams in there. On second thoughts, I’ll just square ye up.
Enjoy the party and happy birthday to yer lass, the wee hoopster.
Toot Toot from the acgr tooter.
Morag McGill….
I’m sensing you’re related to old Tory Tam in some way.
You’re not in his league for insulting people though.
You get enough practice on here,but the way you do it is not as eloquent.
SeconddivisioninsultsCSC
ryecatcher
03:16 on 18 January, 2014
‘Socialism must come down from the brain and reach the heart’
Jules Renard
_______________________
All I feel and read, there is a Global Government with an apparent Socialist outlook, it is coming.
ryecatcher
03:27 on 18 January, 2014
Shouldnt you be at mass or Anfield :)
Morag McGilll….
Like I said….
You’re 2nd division hen,
Why don’t you put that 3rd bottle back in the fridge and have a wee sleep?
You will feel much better in the morning,love.
Your body can’t process alcohol like we can.
There there……sorted that for ya.
ryecatcher
03:36 on 18 January, 2014
Anfield then?
Hey Sproston Grieren~go?
Celtic.
Glasgow is Green & White (not whyte).
I really hope Aberdeen and D UTD get back to what they were.
God, if he has acKn()wl3dg3d and not by Symbolisism, idols, well the World has found……
‘GG 03:05 on 18 January, 2014
…………
Excellent vid of the wee fat liar, He looks like a liar in every word of that piece. He also looks unwell and that doesn’t help him in trying to pass the buck and peddle his lie’s.
A total prick of a man, lets hope they keep him on the pay role at his current salary.
Here goes the Wise Donkey
CELTIC are weighing up a stunning move to land Scotland star Robert Snodgrass.
Boss Neil Lennon said last month the Hoops could afford to bring in a big-name signing in the January window.
Now he is pondering an audacious swoop for Norwich City attacker Snoddy.
Lennon was in the Craven Cottage stand on Tuesday evening as the Canaries crashed out of the FA Cup to Fulham. And SunSport understands the Hoops hierarchy are exploring the possibility of piecing together a deal.
Parkhead sources insist no bid has yet been placed for the 26-year-old boyhood Hoops fan.
But an offer for the former Livingston starlet could be tabled in the coming days if they can make the figures add up.
Lennon looks set to lose at least one big-name star this month, with Georgios Samaras and Joe Ledley stalling over new deals.
Landing 15-cap Snoddy would more than make up for their exits.
However news of Celts’ interest could spark a bidding war, with other clubs down south sure to be interested in him.
And the strict financial regime and wage structure at Parkhead might see them outmuscled for transfer fees and wages.
The Canaries could also play hardball in a bid to hang on to Snodgrass, who has been their star man in a woeful season.
But the player grew up in the shadow of Celtic Park and Hoops chiefs will hope he could be swayed by the opportunity to play for his boyhood heroes.
Celtic Park awaits me and the acgr boogie bus needs its driver, so it’s off in tae ma chariot and dreams of green, white and hoops.
Hail Hail Celtic Men n wummin
CELTIC manager Neil Lennon is a shock contender to take over at Norwich.
By David Woods & Peter Layton/Published 18th January 2014
IN THE FRAME: Norwich are lining up a move for Celtic boss Neil Lennon [PA]
The Canaries are ready to axe boss Chris Hughton if they drop into the bottom three.
Lennon was at Craven Cottage on Tuesday to see Norwich crash out of the FA Cup 3-0 against Fulham.
But defiant Hughton is adamant he will still be in the Carrow Road hot seat at the end of today.
Hughton’s head is on the block after eight games without a win and the axe could fall if the Canaries lose at home to Hull.
But Hughton insists he will not quit and confidently expects to get the three points that will extend his roller coaster 18 month reign.
Hughton said: “I will never walk away from the club. That is something that will never happen.
“And I am not even thinking about losing my job. All I am thinking about is winning this game.
“I have complete faith in my players and there’s nobody in our changing room that hasn’t had to cope with this sort of pressure before.
“That’s the challenge and that’s what football is all about – getting a result when you really need it.”
The embattled Norwich manager is also under fire from the fans with more than 90 per cent of them calling for his head in a local poll.
Chief executive David McNally admitted Hughton was safe this week, as long as he stays out of the relegation zone.
Hughton said : “We are a passionate club and everybody wants to win. But you always get ups and downs.
“I will never walk away from the club, that is something that will never happen”
Chris Hughton
“I have no problem with the criticism from the supporters because it’s meant in the right way so I will just take it on the chin.
“We just have to ride out what is a very difficult period for us and get back to winning ways.”
Hughton has found himself in this perilous situation before though, in home games earlier this season against West Ham and Crystal Palace.
Both were widely seen as sudden death and the Canaries won them both.
He said : “No, I’m not fed up with it all because I have been in this position numerous times. It’s just the game.
“You just have to be big enough and bold enough to cope and have shoulders broad enough to take all the criticism.
“It’s just business as normal as far as I’m concerned. You have to stay calm and composed, it’s the only thing that will see you through.” In fact, the only thing really bothering Hughton is that his Hull counterpart Steve Bruce has so far avoided all the flak.
“We are only three points behind them. So I don’t know why Steve isn’t under the same pressure and getting the same sort of criticism that I am.”