Paltry 15% cut cannot be main story


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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  1. GlassTwoThirdsFull



    12:56 on 17 January, 2014



    ‘Or that he won’t stay at Ibrox until he hears Zadok……’






    Don’t be so quick to judge.



    I reckon if the wind was in the right direction and he cupped those big Yorkshire hands behind his ears he might just about have heard the strains of Zadoc the Priest wafting across the rooftops from the east end of Glasgow.

  2. Manager of the Month, Player of the Month, unbeaten in the League, new 2 million pound signing, the list of disasters goes on and on and Neganon (ZZZZZZZZZZZZZ).

  3. Tin hat on here…..



    The guy who had most integrity in the post apocalyptic scenes at Ibrox in 2012,got ridiculed by the MSM,Deadclub fans,and us to be honest.



    Like Fank Blin,another decent guy btw,he got threatened and needed to shut up for his own personal safety.






    Because it is very easy to ridicule someone who, while brave enough to stick his head above the parapet and tell the truth,isn’t capable of doing it in an articulate manner…..Style rules over substance in these days of saturation 24/7 news.



    Step forward John ‘Bomber’ Brown,dreadfully shunned and ignored by Fat Salary and Walter Myth.



    Ole Bomber will have a smashing story to tell soon.

  4. Wee change of topic guys.looking for info on a restaurant in Malaga that was mentioned on here some weeks ago. Going there in a few weeks and would like to visit.if the poster is lurking or anybody with the info could they post it,thanks. Hail Hail Hebcelt

  5. GuyFawkesaforeverhero on




    A considered piece dampening expectations, best summarised by remembering “Thursday’s Child has far to go”.



    Neverthelesss, yesterday was a good laugh all round.



    Criticism of Celtic’s squad numbers should be tempered by the simple fact we run three teams; Premiership, Under20, Under19. Just a team and five substitutes for each adds to 48.



    I think our Under17s play in the Under19 League.



    Piling on the embarrassment for Sevco’s ludicrous squad size, they only run two teams; League1, Under20.





    What? I set them up and you refuse to batter the point home?



    What kinda doubles partner are you?

  7. A Ceiler Gonof Rust Says Liquidate Sevco Now on

    GlassTwoThirdsFull, chuckles Green did hear Zadok. I sent him the file during my ringtone frenzy earlier in the year.

  8. ryecatcher



    13:06 on 17 January, 2014



    Talking of stories to tell, what’s happened to Jabba?



    Is he away to Australia?

  9. BMCUWP….



    Seriously,The Lancet Medical journal reported a couple of years back that the domestic appliance blamed for most visits to A&E department in Brighton was the humble old vacuum cleaner.



    Apparently there were an unusual number of admissions with ‘groin injuries’…..no kidding.

  10. DeniaBhoy in awe of wee Oscar's Courage on

    I’m not sure any amount of media spin would placate Sevco fans if Ibrox is sold and then leased back. They have been told repeatedly by the previous board, the current board and the rebels that it will never happen. I’m sure it will have to be denied again and again before the season ticket money is in for 2014-2015. After that . . .



    Meanwhile, where are all the bids for their star players? Nobody want these guys that should be first choice for Scotland? Moyes not sniffing around Black as the natural heir to Keane?

  11. Ernie…..



    Jabba the Hun?



    Heard he’s in Oz counting his pay off.



    He will have a non disclosure agreement but when that lapses nobody will believe what the fat slug discloses anyway.



    He’s finished now,hopefully.

  12. DeniaBhoy in awe of wee Oscar's Courage on

    I wonder who first spat out their popcorn while watching Star Wars when they saw Jabba.

  13. The zombies must feel this is Groundhog Day again… well, every day is Groundhog Day for them.

  14. The Honest Cover-up on




    I share the same suspicions. I’d assume any repairs required would be the responsibility of the landlord rather than the tenant. Who’d want to take that midden on?


    I’d love to see a sale and leaseback but can’t see it happening for the same reasons. I honestly thing Ibrox could end up mothballed and Newco ground sharing elsewhere.


    The pictures of the roof falling apart were amusing but scary at the same time. God forbid someone is injured as a result of structural damage. Look at the theatre in London a few weeks ago.


    When Chucky was there he claimed £9m repairs were required. That figure can only head north over the next few years. Newco simply can’t afford that.


    I also wonder what will happen with the Commonwealth games rugby. I hope Celtic are putting their name in the hat to provide and alternative venue. We already have the opening ceremony at Celtic Park so I’m sure we could accommodate the rugby 7’s as well. Imagine the permarage!



    Ibrox when it was first built 30 odd years ago was a lovely stadium (whether we admit it or not). Now it’s a crumbling wreck. Provides some food for thought about our younger stadium. I reckon stadiums this size must cost a fortune to maintain. Even a lick of paint would cost tens of thousands I’d imagine. I hope our board continue to use some of our cash reserves to pay for the necessary upkeep to keep it in tip top condition in another 20 years.

  15. TBJ Praying for Oscar Knox on




    Never ever ever underestimate the huns stupidity :)



    And.. dont speak too soon regards the transfer market. Normal for the big hitters to wait until the last day to pounce.



    Sure wee chick will be outside ibrokes at the end of the month :)



    Lee wallace to madrid … lewis mcleod to barca .. lee mculloch turned down man city

  16. Given that the Co-op bank has recently divulged a £1.5 Billion black hole , is currently subject to an investigation into financial irregularaties and the group as a whole has recently implimented it’s own austerity programme in an attempt to recover it’s losses , would it not be prudent to re-negotiate our terms with them …. ? the ball is very much in our court as it stands :-)

  17. Lawwell must be loving this, Sevco limp into the prem and are permanently hamstrung by lease and sell back.



    The way things are shaping up, Celtic could win 18 IAR.

  18. The Honest Cover-up



    13:29 on 17 January, 2014






    ‘I share the same suspicions. I’d assume any repairs required would be the responsibility of the landlord rather than the tenant.’







    Commercial leases are normally on a full repairing and insuring basis ie the tenant is responsible.



    The likelihood would be that the stadium would be brought up to a certain standard by the landlord and the tenant would thereafter be responsible for maintaining it in that condition. The cost of putting the stadium right in the first place would of course be reflected in the rent.

  19. Henriks Sombrero on

    I’m starting to believe that Sevco, Hunco, whatever they want to call themselves in years to come, will NEVER again win the main league title in this country.

  20. NatKnow - Supporting Wee Oscar on

    they saw Jabba.






    TBJ Praying for Oscar Knox




    13:25 on 17 January, 2014




    Jabba… ewokked away ;)



    Now Wookie here TBJ, there’s no call for a Star Wars punfest on this site..

  21. NatKnow - Supporting Wee Oscar on





    13:47 on 17 January, 2014




    The brill no 12 tale on last thread…


    did anyone else think..I am a no 2



    It reminded me of the moment in The Young Ones when Rick (silent ‘P’) tries to kill himself with laxitive pills…I dunno why.

  22. glendalystonsils on

    Give that Jack Irvine his due, what he does he does well.


    While that the head, arms and legs are falling off the maggot ridden corpse that is Sevco,


    what is the Newsnow headline on the Daily Ranger ‘fan’ phone in?………..


    ‘fans vent their fury at Celtic boss Neil Lennon’



    Maybe these ‘fans’ are ‘furious’ about Lenny getting us to the top of the league and winning manager of the month.

  23. All of this administration II has me scratching my head in a puzzled way..



    Shurley if the NEWCO go into administration it will be administration I?



    I didn’t think it was possible for a club going through the process of liquidation to suddenly do a reverse U-turn and get back into administration…. Can anyone explain how that is possible?



    Anyway all joking aside I am looking forward to heaps of Ice Cream and lashings of Jelly :-)





    I should laugh,but it just reminded me of all those huns with DALLAS12 on their backs a few years back.



    Ironically Dallas and Rangers are carrying on regardless despite being discredited and kicked out.



    And that leaves me right royally pissed off.




  25. Bmcw*



    Needs more investigation :


    Could be a switch hitter:


    Or double agent:


    Been told comes in here at night dressed as a woman (have no proof of this mind you)


    Always last on the bell at the pub (common knowledge )


    Has a yearly travel pass for McGills buses:


    Never criticises Ally (have it from a source he has shares in Greegs, BMCW* that is)




    As you can all see I have a lot of work ahead of me here as this is just one character, and a very slippery one too, but as I said the findings will be a two way secret agreement between me and another CQN friend who has offered a helping hand in outing thems from here, lurking Huns, GIRUYs tictoctictocsc ;)

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