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.”
[calameo code=000390171ece27dd9e54e lang=en page=98 hidelinks=1 width=100% height=500]
891 Comments- Pages:
- «
- 1
- ...
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- »
Given the success at Fir Park I’d imagine it’ll be the midfield diamond and same old faces today. Last week’s successes on the bench.
===================Forster================
Matthews=====Ambrose====Van Dijk====Izaguirre
==================Mulgrew================
========Brown=================Ledley======
==================Commons===============
===========Forrest===========Stokes========
Subs Zaluska Balde Pukki Boerrigter Biton Fisher Henderson
2-0 win, Stokes & Commons
HH
Off to paradise . 3 rd game in a row.. HEAVY rain..
As for Sally… Comical defiant,arrogant,bull from him..
Sleekit courin’ beastie and I bet he has a panic in his breastie.. Tho compensated by all his shares..
HH
South of Tunis
Grazie!
Weather here has been rather unsettled they tell me. Currently 13 degrees.
Enjoy the game – usually enjoy watching Fiorentina. Montella doing a fine job.
Tanti auguri per un felice 2014!
HH!!
The Bomb will bring us together.
Bach 2 the Future.
huh?
Evolution?
It is a long game and it goes way way Bach, perhaps further than the Human Mind can imagine.
The End Times are definitely here, Prophecy says so.
All we can All do is just keeping those 10 commandments, those that all of us have been indoctrinated with.
Stay well clear of Secret Societies and secret oaths, the Mystery Babylon is well exposed now but the externalisation of the hierarchy is indeed a concern. Madame BlavatSKY influenced Hitler, her Secret Doctrine is being implemented through TELEVISION.
HH and come on the Celtic Bhoyos today.
http://www.youtube.com/watch?v=Ky4uYnsF3kc
Didn’t buy it but read today’s DR diatribe in their hotline
Some clown refers to St Vincent Lunny in a ‘call’ slagging us of course and they cretins publish it.
Also, when they have a big story to reveal why does it take two of them to write the article?
Was so looking forward to attending today………..unfortunately a window was left open and influenza.
Kayal33,
There will be at least one frae the development team in the team today, or at least, I think there will be. ;)
In Neil I trust.
Hoopy Birthday Miss Sipsini.
Make sure your Dad spoils you.
It’s raining heavily, freezing cold, there must be a game on.
Of to Celtic Park in the rain, see you all there.
Here we go again!
Looking very much like a Big Coat Day…
If you ask me Raman should have come right out and told Sally he is as bad a liar as those other famous Sevconians, King, Green & Whyte.
I had no idea…
Why on earth do you think you were asked to half your salary? (If indeed that did happen of course.)
Sally isn’t stupid. He is a calculating, sly fox who has become so distant from the truth that he couldn’t find it again with satnav.
Tri Ribbon
If you’re lurking and still fancy a pint I’ll be in Bar67 probably until falling down time!!
energy and youthfullness ?
sounds like the green brigade to me
http://www.scotsman.com/sport/football/spfl/celtic-a-step-closer-to-standing-areas-in-parkhead-1-3273300
Afternoon Timland from a wet hun free mountain valley.
Tom
I may well be a sick Barsteward, but at least I am not a sad one like you.
Open your eyes, use your brain, on second thoughts, you don’t have one. you just believe everything you are told by the msm.
Scroll on by……………
HH
Southampton are, so far, clearly showing the benefits of a good night’s hoovering.
Sunderland will need to bring on Vax for the second half.
Celtic, Celtic thats the team for me,
Celtic, Celtic on to victory,
They’re the finest team in Scotland, I’m sure you will agree,
We’ll never give up till we’ve won the cup and the Scottish football league.
They come from bonnie Scotland, they come from county Cork,
They come from dear old Donegal and even from New York,
From every street in Glasgow they proudly make their way,
To a place called dear old paradise and this is what they say.
Celtic, Celtic thats the team for me,
Celtic, Celtic on to victory,
They’re the finest team in Scotland, I’m sure you will agree,
We’ll never give up till we’ve won the cup and the Scottish football league.
There’s Fallon, Young and Gemmell who proudly wear the green,
There’s Clark, McNeill and Kennedy the best there;s ever been,
Jim Johnstone, Murdoch, Chalmers, John Divers and John Hughes,
And sixty thousand Celtic fans who proudly shout the news.
Celtic, Celtic thats the team for me,
Celtic, Celtic on to victory,
They’re the finest team in Scotland, I’m sure you will agree,
We’ll never give up till we’ve won the cup and the Scottish football league.
Tallybhoy/SoT
Absolutely pouring here on the Riviera di Ponente. Several villages are cut off, a house was swept away by a landslide in the next village, roads blocked, we even had a train almost fall into the sea (after a derailment) just up the coast. We are blocked in, due to a wall coming down on or access road- I hope to get out by midweek so I can fly back to Glasgow – if it stops raining. Still, as people here say, “Your are Scottish, so you must be used to it”. The thing is, you NEVER get used to it. Seems like a good day to watch CelticTV.
Anyone out there got a firm idea on the maintenance costs for the Sevco temple?
How much would need to be spent in the short/immediate term?
How much on-going?
Am I the only one who suspects that the sale & lease back notion is just as unlikely as them winning the Award for contribution to Business & Industry?
Saint Stivs :
I remember standing half way up the Celtic end, in a crowd north of 140,000 when Celtic beat Leeds United at Hampden. As a kid I felt safe and secure there. I mourn the tragedy of the Ibrox disaster but that aside (and bearing in mind it had nothing to do with standing or sitting), I can’t readily remember an instance when standing at a football game in Scotland ever caused me a concern.
When they made us sit, I felt they took away a wee bit of the joy and the freedom.
BSR
Fantastic song, still proudly chanted on the Burgh bus.
As each day goes by I understand better why some huns smear how some Tims are obsessed with the huns; it is ever so often evidenced on here. If I could be bothered I’d wonder which of the two groups were the saddest.
Kitalba.
You dont quite get Celtic, do you?
Sorry, I’ll re-phrase that, you dont get what a Celtic blog is about!
HH
boune –
3.15 on the dot – you start it, I’ll join in. Eb I think.
Burgh
Shower, shave, stick the vinyl on ;’) head for Paradise in the rain.
Kitalba
It’s satisfying having lost so many unfair battles to have fairly won the war…
Jonny the Tim
13:25 on 18 January, 2014
Kitalba.
You dont quite get Celtic, do you?
______________________________
I’d suggest that you don’t. The Celtic Soul is at stake here.
I don’t want to ever join a European Super League now.
New Zealand, Nigeria and the Czech Republic were the only countries who had the balls for armed force to be used to stop the genocide in Rwanda.
Kofi Annan blocked it and to Bill Clinton’s eternal shame he said there was no material gain to the USA to encourage intervention.
See what happens when hate is unleashed and you have nothing of worth, not even colour, or maybe religion.
Jonny the Tim:
So what part of ‘getting’ Celtic, in particular, do you think I don’t get?
CultsBhoy:
Mate, I hated the cheating, I hated being second class, I hated looking up the hill, but as for the war, I don’t think that has started quite yet.
Jobo
the big coat and wee guy with bunnet brigade ♫♫♫♫♫♫♫♫♫
Jonny the Tim:
I re-answer that, so what part of not getting a Celtic blog don’t I get? Am I not allowed to think, to have an opinion, to post it even though it may not run parallel with yours, to deny me the right to post my thoughts would be rather bigoted… don’t you agree?
bourne –
could be one for the ole camera phone to CQN Facebook page… ;-)
Apricale.
You entered my thoughts as I watched the news last night.
May the fates be kind.
I ,too,get the- you must be used to this- stuff . No -I am not . Memories of being in Ragusa a few years back . Lovely summer night ,not a cloud in the sky and then 20 minutes later I was sheltering under a bridge, knee deep in rainwater and struggling to remain upright in the torrent . Italian rain is something else !
So while you are cold and wet at Celtic Park i will be at in the relative comfort of an executive box at Vale Park.
Would i swap ?
.
.
.
.
.
You bet I would
enjoy the game
firstloveCFC
Bom dia from the sand dunes of Rio Grande de Norte, Brasil.
Looking forward to the (midday here) kick off. Wonder how many / if any places NFL will find a place on the bench for the new signings / Turkish hero’s today?
Elsewhere the state championships kick off here in Brasil today (first week Dec to third week Jan is close season). So a wee tip to all you who like to flutter. The state championship matches are notoriously hard to predict, as the “Big” teams often (with an eye on next month’s Libertadores) field understrength / reserve sides. That being said today’s Botafogo (allegedly fielding 9 reserves today) v Resende (last years semi finalists) MAY be worth a punt as a draw.
Only other thing, is to convey the feeling of “angst to anger” that we’ve all felt here about thon poor wee boy in Edinburgh. Apart from the obvious “victim” thoughts and prayers must go to his remaining brothers and sisters.
RIP, wee man
Forster; Fisher, Ambrose, van Dijk, Izaguirre; Forrest, Brown, Ledley, Mulgrew; Commons; Stokes
Forster; Fisher, Ambrose, van Dijk, Izaguirre; Forrest, Brown, Ledley, Mulgrew; Commons; Stokes
Subs: Zaluska, Biton, Balde, Pukki, O’Connell, Henderson. Final substitute TBC.