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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Murray beats Lopez 7-6 6-2 6-4
braw …morning from cold and grey Lower Saxony …
Good morning CQN
Dark and wet in old Clydebank this morning
Looking forward to the game today
Come on the HOOPS
Keep the Faith
Hail Hail
Morning from a damp and dreich South Staffs.
A one hour power nap,after six hours kip early evening,has now revitalised this Golfing Adonis into a frame of mind where he wants to kick AstonVillaboy erses in the monthly medal today.
We have one little Orc in the whole membership of the Golf Club,and he goes out of his way to avoid me ever since February 2012…..wonder why haha.
Anyway,I hear he will be playing today, half an hour after us, so might just stop a wee while longer in the Clubhouse and rip the pash out of the wee scrote (who now pretends to be a Killie fan to people who don’t know him).Loyal then,now,forever…my erse!!
Quite looking forward to this now.
Hail Hail
Morning cqnrs
Another sad and sorry tale to awake to this morning.
I sincerely hope the speculation about the wee boys mother is wrong. . But history tells us it has a high chance of being true.
Whatever happens. . That wee boy is gone and that breaks my heart and puts everything into a cold perspective today.
God rest his soul
Has rogic or megough been loaned out yet ?
strange how mcgeough hasnt even featured on bench in a long time
Pre packaged and sliced ‘Scottish Lorne’ Skwerr sausage from an English supermarket………on pan breed tae.
Yeuuuuuuuchhhhhhhh…..Deserved everything I tasted there for even buying this poor imitation.
The tattie scones are even worse……Speweeeeeeeee
Henrik the Dug loves them though.
Right,aff tae the Driving Range via McDonalds for breakfast.
Difficulttoplaygolfifyoure29stoneCSC
Reading the zombies comments about paying more for sb next season made me think
At the recent albion rovers initiative I spoke to a true fan who has held a season ticket for decades. He pays £140.
He told me he had paid a tenner at the gate that day despite having his season book.
So step up zombies… lets see you follow follow his example and give generously at every home match for the rest of this season
Loyal … rangers then rangers now rangers always.. dont do walking away…. aye right
Also saw sleekit ally say he won’t be selling any players .. but the club might.
No surprises that he deflects the blame even before the act … but has he missed a chance to state the company might sell his assets
proudbhoy
Both Rogic and Mcgeouch featured in the 0-1 loss to Morton, at a time when Neil had been under pressure to play them. Neither has started a game since (with both enjoying roughly 20 minutes’ playing time). I suppose this shows he doesn’t forgive easily, or forget at any rate.
Whenever you hear Lenny say how well somebody’s been doing in training, bear in mind games like these – they can be career-defining.
Sad news to wake to this morning
Poor wee man
Pray for his soul
‘I wont be selling anybody, the club might sell somebody’.
Dearie me. McCoist is fast building up his own book of Johnstoneballs.
The guy would be as well cutting the crap and just shout ‘watfp’. That never fails to sell tickets at the Bigot Hoose.
Oh and btw, he’s spot on with his ‘no chance of admin II’ shout. It’ll be the new club’s first.
Top of the morning from Fife where there is sad news of the little lad Mikaeel.
Kids deserve to have their childhood free from worry and the harsh realities of life but sadly many don’t.
Anyway a big game today and hopefully a big performance from the bhoys.
On the culinary front we have square sausage with the black pudding insert. A fine start to the day when served with fried egg, crispy bacon and a well fried tomato.
I like my tomato fried for at least 10 minutes till it is going black in parts and bursting with juice that takes this simple fruit to a different level.
For the avoidance of doubt, this is the fellow for me.
https://www.google.co.uk/search?q=square+sausage+with+black+pudding&client=firefox-a&hs=wgS&rls=org.mozilla:en-GB:official&tbm=isch&tbo=u&source=univ&sa=X&ei=BzjaUob_PNCUhQeDgIHoCA&ved=0CDAQsAQ&biw=1054&bih=590#facrc=_&imgrc=tYcQg7_VKMMzEM%253A%3B4oHgzunFlYh_AM%3Bhttp%253A%252F%252Fwww.findlaysthebutchers.co.uk%252Fimages%252Fsource%252FSlilcedSausageBlackPudding-2335.jpg%3Bhttp%253A%252F%252Fwww.findlaysthebutchers.co.uk%252Findex.php%253F_a%253Dproduct%2526product_id%253D61%3B390%3B312
BIG NAN
I hate you!
Off to the pub. Cry into my pint for a few hours.
UPDATE
Further to my 7.16 report, with dawn now breaking I can confirm my earlier suspicions that it is indeed damp and pretty calm. But ideal for a slightly injured Jobo to hobble round his 5K ParkRun course… A target time of 23’30″…
mountblow tim,
Is it every any different in old bankieland and now the council are talking about making the ‘Muni’ a nine hole golf course!
Sacrilege
AR (formerly of the parish of clydebank)
heartbreaking news about young mikaeel – very sad news to start the day
Sad news on the wee boy but sadly, it was always going to end thus.
Chucking it doon here in the Fylde riviera . Quick shower and aff up the road to Paradise.
Been soaked to the skin the last 3 home games, it’s looking like another wet yin.
Did salary refuse to accept a cut also, or did he agree that he was being paid far too much as the manager who got them dumped out of 10 competitions (out of 11) since he took over….. you could not make this up …… How fortunate are we to witness all this………….!!!!!!!!
Was scanning CFC stories online and came across this from the Rancid Record!
For once, read it (below – I don’t mean buy it!!!!) cos it shows the desperate depths they’re plumbing!
Me? I’m a pretty happy wee clapper whose day will consist of 2 rolls with skwer and black pudding and a trip to Paradise with my wee mhan to see the Hoops.
Smell their failed agenda-setting desperation – KTF. Jamesgang
Sports Hotline: Fans vent their fury at Celtic boss Neil Lennon.
Graham Walker, Glasgow, said: “Lennon has shelled out yet another £2million on striker Stefan Johansen and it’s an indictment on our youth system. We’ve wasted a fortune on Teemu Pukki, Amido Balde and Derk Boerrigter who have all fallen well short of the standards required.
“Johansen is another hit or a miss gamble but where are all the talented strikers coming through the youth academy?”
Johansen is a midfielder.
Mick McCallie, Dumfries , said: “I’d love to see more Scots in the Celtic team and Stuart Armstrong would be a great start. He could be developed into a fine left-back as well as a midfielder.
“Emilio Izaguirre won’t be ready for the crucial early-season European ties due to World Cup commitments so I’d sell him. I hope Georgios Samaras goes too.”
One caller got straight to the point.
Jim Murray, Edinburgh, said: “Celtic have an inept manager, players who wouldn’t get a game in the English Championship and a scouting system which is nothing short of a joke.”
Good morning from a wet north staffs -very sad news about the wee lad Mikaeel -but also not totally unexpected – prayers will be said.
big nan
08:16 on 18 January, 2014
Hey, you…am oan a bloomin diet……..hahahahahahahahahahahahahahaha
Right, must run…
McCoist is priceless – ‘I had no idea the club was in this state again’
On SSB last night. A lot of hurting Huns on but Ally still getting away with it …
Tragic news about the wee fella in Edinburgh. Best not to lurch to any conclusions tho . These tragedies are often complex.. I feel
For all the family. The mother must be out of he right mind whatever her involvement.
Morning troops.
Tragic news regarding the wee lad but you always fear the worst when wee tots go missing for so long.
One of these days the huns are going to turn on Sally big time.
He has more faces than an art gallery.
Ever been to a pantomime Sally?
When everyone in the auditorium is screaming “It’s behind you!!” it usually means it’s behind you.
Throughout the downfall of the late RFC and now with the imminent death of its afterbirth, Sevco FC, you claimed “Ah didnae know. Naeb’dy telt me.”
Look behind you Sally, your pants are on fire.
antipodean red
mountblow tim,
Is it every any different in old bankieland and now the council are talking about making the ‘Muni’ a nine hole golf course!
Sacrilege
AR (formerly of the parish of clydebank)
AR
I am not a golfer but like yourself think this is out of order
Use to run around the golf course in my younger days
Great fun in the snow going down them hills on bin lids
Soon to be houses
HH
MT
Our local butcher does the skwerrrr (or lorne if ye prefer) with cheese and spring onion through it.
It’s no bad like.
But the question is….is this sacrilege or is it avant garde cuisine?
Geordie Munro
09:05 on 18 January, 2014
Tragic but not altogether surprising outcome. The story that was being presented didn’t ring true.
Absolutely Ernie.
Wee fellas are found much earlier when missing in Big cities.
Spookily I only heard last night of a sister living in kdy.
*found safe
Breaking News: Prince Harry to be the “Saviour of Sevco”.
Hot off the press. Apparently Harry is no longer to be on active service. Instead he is coming home to be based in London. His role is to organise commemorative events involving the military.
‘Speculation’ is that his first big event will be down Govan way and his presence is sure to attract huge investment in the club.
_______________________________________________________________________
As believable as any other story on the go in the MSM.
Marrakesh Express
Was in Berlin a couple of years ago and did a walking tour of the city-called Red Berlin and it was fantastic. The free tours got the best reviews as they rely on being tipped at the end so put a lot of effort in Lots of tours leave from around the Brandenburg gate. Also went to Sauchsenhausen which was quite a difficult place to visit.
Sad ending to that kids disappearance, cops press releases never looked convincing enough for me, I think they knew from the off dodgy dealings where at hand, but have to go along with they way these things are dealt with, sad world we live in, may he rest in peace.
Geordie
Wee butchers in govan does a nice alternative. . Pork sqwerr with spring onion. Nice
Mea culpa
Love the ” . Look behind you : your pants are on fire”
Big Nan
Tomato .. a fruit .!!!!. or a vegetable ?
Tbj
en.wikipedia.org/wiki/Tomato
The tomato is the edible, often red fruit/berry of the plant Solanum lycopersicum, commonly known as a tomato plant. The species originated in the South …
Nix v. Hedden – Fruit – Lycopene – Heirloom tomato
………………………..
When well fried the stewed juices take on a different flavour.
Tbj,
There’s 4 slices calling me from the fridge. I just didn’t wanna feel durty whilst consuming. :)
Two rolls on aforementioned should help soak up the Saturday hooch.
Tragic news on wee Mikaeel, had an inevitable feel when his disappearance was announced.
Cults Bhoy- I watched McCoist at the presser on SSN, his whole body language told me everything, the fidgeting, shiftiness, stammering and downright evasiveness of questions asked.
Staggering how the hordes still swallow all his lies and the SMSM cover up for him.