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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It really hurts when Something you really love turns out to be something diametrically opposed.
Those Institutes.
The Noetic Institutes.
Check oot the flyer for the best ever Event you attended.
The pyramid is there, or at least the Al see yer Eye.
Some vg pictures in this article hence the link as opposed to the usual cut and paste job.
http://celticunderground.net/the-bhoy-in-the-picture-hampden-memories/?
Twists n turns….
Robert Snodgrass is a cracking little player and exactly what we need in terms of creativity.
Born and brought up a stones throw from Paradise and a massive Celtic fan.
Hearing stories that his wife is really keen on getting back to Glasgow,so that might speed his decision.
Have been impressed with him for Norwich last couple of seasons.
Come home Robert…..,.we need you son.
Sad news that they have discovered the body of the little lad who was missing. Mother been arrested.
Ryecatcher
A player I quite like. Would be good business assuming the price is right.
‘It was a bit of a dark time . . .’
Michael Grant
Chief football writer
Saturday 18 January 2014
KRIS Commons was once an ineffective, unhappy player with Celtic.
WINTER WONDER: Kris Commons has been named SPFL Premiership player of the month for December. Picture: SNS
It is such an incongruous and distant memory that it seems like a description of someone else entirely. His lowest ebb came in a game at Tynecastle on October 2, 2011. Celtic lost 2-0 and Commons played as he had for most of that season: poorly. He hardly had a kick all night until he aimed one at Adrian Mrowiec and was shown a straight red card.
It was Commons’ ‘lost season’. Among all of his Celtic campaigns only 2011-12 stands out as a failure. In his first four months in Scottish football, he scored 14 goals. In his second full campaign he scored 19, and in the current one he is already on 16 and on a rich vein of form which promises to yield many more. But 2011-12? That was the season of the misfiring, sluggish, dare-we-say-it slightly heavy-looking Commons. In the entire season he scored only once. He has been indispensable to Neil Lennon for so long that it is odd to recall a time when he was in and out of the team, sometimes injured, sometimes dropped, rarely looking match-fit.
“The low point was probably getting sent off at Hearts,” said Commons, having been named this week as the SFPL Premiershp player of the month for December. “I think I’d been injured or I hadn’t played for a little while. I was on the bench, just playing a bit part, being a sub here and there. I got the nod to play and I got a straight red. I just remember coming back in the changing rooms and thinking: ‘What’s happening here? I’ve not scored a goal. I’m not playing. I’m getting red cards for reckless challenges. That’s not me. I don’t do that’. Yeah, that was a bit of a dark time.
“It was one of those seasons that’s probably never happened in my career before. I’d gone from coming in and scoring goals, playing a big part and doing really well, to picking up injuries, not playing well, being in terrible form. I couldn’t argue about not playing.
“I just didn’t really have the answers. When you’re playing badly and you’re injured all the time you tend to try even harder and you end up making yourself worse. It was a bit of a learning curve for me.”
At 30, Commons now has experience, but he has always had intelligence. He can put the episode into perspective, especially now that he has delivered a campaign-and-a-half of vibrant form since the lost season. “Did I ever feel like leaving Celtic? No. You have to take football as a package. Bad times make the good times even better. Footballers don’t just have illustrious careers and great highs all the time.
“You have to have the lows to make the highs as good as they are. I’m probably grateful that these times – when I’m enjoying it, picking up awards and scoring goals – keep my feet on the ground, because I know how bad it can be.
“I train every day, as well as I can, to stay in the starting XI. I know the gaffer can change it whenever he wants because we’ve got a lot of players always itching to start the game. So I try to keep my feet on the ground. I’ve got to keep performing week in, week out so that I’m one of the first on the team-sheet.
“I probably took it for granted when I expected to be playing week in, week out. And when you are playing at club of Celtic’s calibre then it’s brilliant playing in front of the fans, it’s brilliant winning trophies, it’s superb playing in the best competition in the world [the Champions League]. But when you are not involved it’s one of the worst places because you’re missing out.”
Celtic are in an enviable position as they face Motherwell at Parkhead this afternoon. After 20 games last season they were on 40 points and six clear at the top. This time they are on 54 and ahead by ten. The team has been far more consistent in its results around European ties this season. “I think part and parcel of it was the Champions League and the fact we had a squad which was relatively inexperienced in trying to balance Europe and domestic games.
“We knew going into games we could lose the odd point and if you’re not 100 per cent focused in games then you will get done.”
STEFAN JOHANSEN wanted the ground to open up and swallow him.
He was two minutes into his Norway debut and his mistake had just gifted old rivals Sweden a goal.
But Jan Age Fjortoft says the way the £2million Celtic signing responded spoke volumes about his mental make-up.
Ex-Norway skipper Fjortoft, now a pundit and agent in the country where he won 71 caps, was in Stockholm last August when midfielder Johansen made his international bow.
He admitted: “What happened in Sweden told me a lot about Stefan.
“He’d gone to the European Under-21 championships in Israel last summer and had a good tournament. He played in the team which beat England and that was a big result for Norway.
“But he then made a disastrous start in his first full international.
Johansen in action at U-21 European Championships
Action Images
“He tried a pass across the park, but Seb Larsson intercepted it and sent it through to Zlatan Ibrahimovic, who scored.
“It happened in the second minute and I remember thinking it would be interesting to see how he responded to such a big mistake. But the truth is, he reacted brilliantly.
“Norway went two behind then pulled one back and Stefan equalised just before the interval.
“We went on to lose 4-2, but Stefan showed he was able to put a bad moment behind him and concentrate on performing well.
“The way he shrugged it off told me a lot about him and I think the Celtic supporters will see that. He’s not a guy who hides in a game.
“He believes in himself and I think that will stand him in good stead in Scottish football.”
Former Swindon and Middlesbrough striker Fjortoft reckons Johansen has all the attributes to be a hit in Scotland.
He added: “He’s a boy who always wants the ball and wants to be involved in the game.
“He has great vision, a nice left peg and a great shot.
“He’s left-sided, so you tend to notice him a bit more. He’s quite an elegant player and he has developed gradually, but this is the right time for him to make a move to a better standard of football. He was a level above everyone in the Norwegian league.
“Stromgodset are a good side and Stefan played a big part in them winning their first title in 43 years.
“But they were second in the league the year before and they have a coach, Ronny Deila, who has helped him by having them play the kind of football that suits him.
“He put a mentality in them not to worry about making mistakes and that allowed them a freedom to express themselves.” Fjortoft believes Johansen can follow the likes of Victor Wanyama and Gary Hooper in using Celtic Park as a stepping stone to a higher league.
He said: “I think Stefan’s agent will be pretty well aware how Celtic operate, bringing in younger players and making a profit on them.
“Stefan will know what the opportunities are if it goes well for him in Scotland.
“There is far more scope for him to develop properly there than there is in Norway.
“Norwegian club sides go out of European competition quite quickly and the national team isn’t playing at a level where our players are getting noticed. For that reason it’s always difficult to compare a good young Norwegian player to others around Europe.
“But Celtic have shown in recent seasons they’re quite at home in the group section of the Champions League.
“I think a move like this is a win-win for everyone involved because Stefan gets a platform to play on and Celtic get a really exciting player.
“It shouldn’t be under- estimated what a big move this is for the boy. He’s going to get opportunities to win a league title and play at a far higher level than he has done.”
Fjortoft is delighted Johansen has joined Celtic because he has a soft spot for the Hoops.
He said: “I was never lucky enough to play at Celtic Park but I have been there.
“One of my first coaches was David Hay, a Celtic legend, at Lillestrom.
“He was a big influence on me and he was a good man. I stayed in contact with him and visited him in Glasgow.
“I also played for Norway at Hampden Park in a World Cup qualifier in 1989 when we drew 1-1, so I know about the Scots’ love of football.”
Twists turns…
Smashing article on Hampden,mate.
Indeed,what stadium could spend 50 million and be worse than the stadium it replaced?
Been in the new Hampden only once thankfully…….dreadful stadium…never be back.
Old Hampden….lost count of how many games I had been at there.
In the main picture……which game is this?….looks familiar
Ryecatcher
Yeah, I enjoyed that article. Don’t you think it looks like Aberdeen? Not sure to be honest. Wee Hampden aside…..the centenary cup final…I was first into Hampden Park that day as a young 14 year old! Well, first alongside my mate and his dad who took us.
Twists turns……
It does look like the Dons but trying to suss out which one as there were lots v them….Will look for some clues later.
Centenary Cup Final………What a day at Hampden that was……What a night in Glasgow City Centre after it,too…….Was pashed from the Friday until around the Tuesday that glorious weekend.Couldn’t handle that level of abuse on the old liver these days.
Twists…
SFA Centenary or Celtic Centenary Final?
One was good and one ermmmmm….wasn’t good.
And today’s comedy news item is………..
EXCLUSIVE: Easdale brothers to plough £20m into Rangers
JAMES and Sandy Easdale are poised to plough around £20million into cash-strapped Rangers.
By: Graham ClarkPublished: Fri, January 17, 2014
James and Sandy Easdale are set to give Rangers a well-needed cash boost [WILLIE VASS]
The Greenock businessmen, already significantly involved in the Ibrox club as shareholders and directors, are edging closer to selling their bus firm and are considering investing massively in the stricken League One leaders.
The brothers are already understood to have knocked back approaches for McGill’s Buses amid rumours that one £80m offer wasn’t enough and that they’re holding out for £100m.
If they succeed in getting a buyer at that price, the speculation is they will aim to increase their stake at Ibrox by investing about £20m.
James, on the club’s plc board, and Sandy, who is chairman of the football board, have been building up their shareholding in recent months as they look to tighten their grip on the club.
They are now generally recognised to be the powers behind the throne at Ibrox.
The Easdales took over McGill’s in 2001 and, after moving back into the black by posting profits of £659,404 compared with a loss of more than £550,000 the year before, their turnover has almost doubled from £15m to £28m following the takeover of rival Arriva Scotland West nearly two years ago.
These figures have made McGill’s an attractive proposition and it is a business the Easdales are prepared to offload as they have other interests, including taxi firms and private rental and commercial property.
The jury remains out on the Gers’ board simply because little or no information is passed the supporters’ way and stories like yesterday’s in Express Sport that players had rejected chief executive Graham Wallace’s suggestion they take a 15 per cent cut in wages has done little to quell their concerns over the club’s financial position.
Wallace, in fact, has declared there is no chance of a second administration but conceded the club can’t continue to run the way it is amid suggestions it is losing around £1m a month.
And, even if the Easdales were to splash their cash, there would still be a need to rein in the general costs.
But, if the Greenock pair put up around £20m, it would go a long way to easing the near-critical state at the club and, of course, help appease and win over worried fans.
twists n turns,
thanks for posting the links, I miss a lot of links, hopefully I wullnae depreciate and turn into a Fish!!!!
Talk about Mass Manipulation. Harumph.csc
msm=smsm
Ryecatcher
Ah the ‘ bad’ centenary cup final….sadly
Twistsnturns……
My old man wouldn’t take me the ‘bad’ Centenary one as I think he wanted to get pashed with his mates and not have to worry about Ryecatcher the wean that day.Didn’t stop him taking an even younger me to the Leeds semi 3 years earlier though.
Remember crying in the kitchen when that big Diddy Forsyth scored the winner that day lol
Petec
You’re welcome.
I miss square sliced more than links to be honest…….:-)
TWISTS N TURNS
Jee-zoh,man!
I’m just in the door,and the first thing I get on screen is a mention of the skwerr!!
Ya hard,hard,swine of a man. I could greet…
Ryecatcher
That Tam Forsyth thunderbolt from 3 inches…..I believe Jim Brogan was off the park getting treatment at the time.
twists n turns
04:31 on 18 January, 2014
Petec
You’re welcome.
______________________________
Food, I love food, perhaps too much.
I’m sorry for not sustaining a challenge at the Horse Racing.
I’m glad the Boss took me out of the equation.
I will speak to you in a months Time
The MSM have plunged new lows now.
100 million for a local bus business that turns over 28 million at an optimistic guess?
Profits of less than 1 million.
Return on Investment tiny by comparison.
They must think our heads button up the feckin back.
BMCUWP…….
Where ya bin ya moon howler?
Bobby
Sincere apologies:-), didn’t mean to get your day off to a bad start!
Maybe I can pass on a wee winner today. No tip, but I’ve just been going through the 2.25 at Ascot. Bourne – is 6/1 – and I’m thinking that’s a decent bet. The market leader has done sod all on heavy ground, whereas Bourne has , and though it was half a dozen runs ago, it was off a mark half a stone heavier than today’s. I won’t nap it on cqn, as I’m still chasing a 33/1 winner in that comp, but I’ll have a decent bet on it.
Incidentally, a few runs back, he also ran 4th off a mark 1 stone higher than todays. Gotta be worth a wee try.
TWISTS N TURNS
Pretty sure I backed Bourne in the apprentice race at Cheltenham,despite the ground!
Cheers,bud.
205 at Haydock looks like a cracking wee novice hurdle,btw.
Could be a good pointer to this year’s festival.
RYECATCHER
Out doing a shift,mate.
Shift done,grab a snack then bed.
Pub opens at 8am,best be there for about 9am to grab a seat!!!
tnt and Rye
The description of singing from the Hampden North Stand reminds me of one of my proudest moments.Huns game`69 or `70.Glasgow Cup..Charity Cup.The day I kicked off the singing.
Song of the day was The Troggs; “Give it to me”.
Celtic version:
Give us a goooal,give us a goal,Glasgow Celtic,Glasgow Celtic.
Celtic got four.Harry Hood got three.
I seem to remember that a half jack may have played a small part in the proceedings.
The original.
Not necessarily the best.
http://www.youtube.com/watch?v=xRiLeb4BDLQ
Just before the financial crash,a company I worked for got a little tad acquisition crazy and started to buy up lots of small businesses with high turnovers.This in itself was not unusual as the Banks were lending money like giving out sweeties in 2007.
Even back then,the maximum any acquisition would make the seller,after due diligence(no laughing out loud) was 7 times the average profits of these businesses over the previous 3 years.
Turnover is vanity,Profit is sanity,Cashflow is reality…..the way these guys work.
100 million for a two bit bus business with lots of fire risks……Aye right!!
Just a thought……
If an individual wanted to swap South African Rands for pound coins found down the back of a sofa……Would he;
1….Buy a controlling interest in a provincial bus company.
2….Buy a Laundrette situated somewhere between Greenock and Govan
3…..Both of the above
Just asking like.
ACGR- Good to hear from you amigo; enjoy yer dayoot and pint with yer bhoy. I had a similar experience with my son in September in Cancun. Nothing like leaning on the bar talking tae yer son man to man:)
Got a nice bottle of Clynelish at the duty free when leaving Puerto Vallarta. Last time I played Dornoch they didn’t even have any behind the bar which buggered up my pre round preparation.
Off tae my scratcher but really looking forward to watching the game in the Toronto #1.
BMCWP- I trust you are well young fella; hope to see you this year at some point.
slainte
tony
Slot machines are the epitome of how con men suck in the mug punters to continually part with their readies.
Time and again you almost win the big prize. Almost win, but not quite. Maybe next time. And so you take another go.Another almost big winner. Try again … and so the pattern continues until you have nothing left.
Con men offer you a great return on your investment assuring you that some big shot investor is just waiting in the wings for the right moment. But they need just a little more of your money to get the ball rolling.
So you part with your money reassured that your ‘investment broker’ knows what they’re doing. (Ironically, that is the truth. Just not quite the truth you imagine it to be.)
After a short delay, another hitch. Another injection of cash required….
And so it goes until you are penniless.
Sound familiar?
For 1 poor sod to be taken to the cleaners in this way is unfortunate. But 1000s of them all taken in by the same con….?
I’ve seen more intelligent goldfish.
ryecatcher. It isn’t us they think have rear buttoning heads. Their target audience though…..?
Good Morning Timland.
Not a great start to the day, woke up to the news that
the missing weans body has been found in Fife,and
the mother in custody.
CQN Saturday Naps Competition
Lads, for those who are in the CQN Saturday Naps competition, please go back and post today’s selection at the end of the previous article :
“Ballsy innovation comes crashing”
All the best, fleagle1888
Morning Folks,…….how do you tell your body it’s Saturday , your not working, and you don’t, therefore, have to waken this bloomin’ early …?
Really looking forward to the game today….doooo doooo
valentinesday
07:00 on 18 January, 2014
On, no, please don’t tell me that….
Good morning friends from a still dark but apparently damp and pretty calm East Kilbride.
As mentioned there by valentinesday not the best of news to be waking up to.
On the football side, really looking forward to taking my seat at The Park today to cheer on the Champions at the start of our run of 5 home games in the next 7. Expect to see a bit of an increase in attendance from the last couple of visits.
Jobo
Love the Analysts view on Sevco Shareholdings
Settlement as of 17/01/2014
Rangers International Football Club in disarray as it suffers losses of -2.7%….
________________________________________________________________
But hey, the directors of Sevco have assured everyone that there is no danger of Administration. Doesn’t the LSE believe them?
I’m shocked.
A more trustworthy bunch of blokes you could not wish to find.