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. Just had a horrible vision. We’re on 9 in a row, going for the 10. Rang3rs do a deal via Dick Advocaat to take all the Ajax players for one year (knowing this will cost them administration but willing to do it anyway). All the refs are given a 4-line whip (instead of the usual 3) to stop Celtic by any means possible.




  2. leftclick Together we will get justice for the Dam 5 on



    The SFA are standing back and allowing the spivs to bleed the deluded mob for season ticket money again in the vain hope that this time thing will work out rather than admit their part in the zombie charade.



    No matter what I think of the Newclubs fans for the SFA to stand back and watch football fans of any club be exploited even if they are only 1 yr old to cover up their own corruption is shameful.

  3. sydneyt…






    Setting aside Pukki (who I fear, like you, will just not do) you think Griffiths meets your criteria?

  4. Celtic FC Amsterdam update


    By: Newsroom Staff on 17 Jan, 2014 15:16


    FOLLOWING the events which took place in Amsterdam in November around our Champions League match against Ajax, Celtic were inundated with complaints from fans regarding the conduct of the Amsterdam Police.



    After the match, Celtic advised that they had engaged the services of a Dutch lawyer to investigate these complaints further. The lawyer, Jeroen Soeteman, has been reviewing the complaints passed to him by the Club so far and investigating matters further.



    Celtic can now confirm that Mr Soeteman will be in Glasgow on Wednesday, January 29 and Thursday, January 30 to meet supporters with complaints, explain the process and discuss next steps.



    The Club is happy to confirm that if, following those meetings, complaints to the Chief of Police are progressed by Mr Soeteman, the cost of the complaints process will be covered by the Club. Further details will be provided during the meetings.



    If you would like to come along to Celtic Park with a view to learning more about the process and discuss lodging an official complaint please email jptaylor@celticfc.co.uk for details.



    If you have already provided information, Jeroen Soeteman may be in contact with you shortly.

  5. eddieinkirkmichael on

    ernie lynch



    13:39 on 17 January, 2014


    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.





    That’s what I was saying Ernie, stadia would need to be brought up to a desent standard and that won’t be cheap. That’s why I can’t see S&L as spins won’t put money in out their own pockets to make it a viable proposition.



    In other words, they’re fecked big time.

  6. Just read this on Hunmedia



    Hun 1 How long is Peralta’s deal for ?


    Hun 2 Four years.


    Hun 1 I feel sick.




  7. Afternoon all. Here is the latest update to the list.


    The rumours seem to have dried up for some reason, guess the SMSM must have something else to write (or worry) about. :D


    Anyway here you go.










    Players in:




    Name Age Position Club Price


    —-— ——– —-—–


    Fridjonsson – 20 – Striker – Fram Reykjavik – £100K


    Johansen – 23 – Midfielder – Stromsgodset – £1.7M








    Players out:




    Name Club Price


    —-—- —–


    George – Hamilton Accies – Loan deal


    Rogic – Melbourne Victory – Loan deal








    Rumoured transfer in:








    Name Age Club Source Price


    —-— —- —— —–


    Forde – 33 – Millwall – STV – No fee mentioned (06/12)


    McCarthy – 24 – Reading – Talkceltic – No fee mentioned (16/13)


    Johnson – 24 – Chicago Fire – Daily Express – No fee mentioned (11/01)


    Johnson – 21 – Port Vale – Celticrumours – No fee mentioned (12/01)













    Name Age Club Source Price


    —-— —- —— —–


    Taylor-Sinclair – 22 – Partick – Various – £75K (30/11)


    Taylor – 27 – Newcastle – Talkceltic – 6 mths loan (13/12)


    Kalas – 20 – Chelsea – Celticrumours – 6 mths loan (05/01)


    Kingsley – 19 – Falkirk – The Herald – £500K (10/01)


    Capuano – 22 – Pescara – Various – No fee mentioned (14/01)














    Name Age Club Source Price


    —-— —- —— —–


    Armstrong – 21 – Dundee Utd – Various – £500K (01/12)


    Gauld – 18 – Dundee Utd – Celticrumours – £500K (01/12)


    Guidetti – 21 – Man City – – Talkceltic – Loan until summer (09/12)


    Bryson – 27 – Derby County – STV – No fee mentioned (12/12)


    Toivonen – 27 – PSV – Talkceltic – No fee mentioned (13/12)


    Norwood – 22 – Huddersfield – The Scottish Hun – £3M (17/12)


    Eikrem – 23 – Hereenven – Various – No fee mentioned (21/12)


    Henrikson – AZ Alkmaar – various – £2M (23/12)


    Hassan – 19 – Al Ahly – Various – £2M (24/12)


    Tomlin – 24 – Peterborough Utd – Celticrumours – No fee mentioned (03/01)


    Mackay-Steven – 22 – Dundee Utd – Various – £1M (03/01)


    Berisha – 20 – Red Bull Salzburg – Celticrumours – No fee mentioned (03/01)


    Fletcher – 29 – Man Utd – Various – No fee mentioned; possible loan (04/01)


    McDonald – 25 – Wolves – Celticrumours – No fee mentioned (04/01)


    Hupperts 21 – Roda JC – Talkceltic – No fee mentioned (07/01)


    Mane – 19 – Sporting – Scottish Sun – Reported £1M buy-out-clause (09/01)


    Firmino – 22 – Hoffenheim – The Times – £4.5M (12/01)


    Larsson – 16 – Hodaborks – Celticrumours – No fee mentioned (13/01)


    Snodgrass – 26 – Norwich – Various – No fee mentioned (14/01)


    Bryson – 27 – Derby – Radio Snyde – No fee mentioned (16/01)














    Name Age Club Source Price


    —-— —- —— —–


    Parzyszek – 20 – De Graafschap – Polish press – £800K (30/11)


    Vaughan – 25 – Norwich – Daily Mirror – No fee mentioned (03/12)


    Ings – 21 – Burnley – The Scottish Hun – £5M (03/12)


    May – 21 – St Johnstone – Northern Times – No fee mentioned (07/12)


    McCormack – 27 – Leeds – SSB – No fee mentioned (07/12)


    McKay – 24 – ICT – Daily Express – No fee mentioned (12/12)


    Boyd – 22 – Rapid Wien – Talkspurt – £1M (13/12)


    Damari – 24 – Hapoel Tel Aviv – SSN – No fee mentioned (14/12)


    Assombalonga – 21 – Talkceltic – No fee mentioned (16/12)


    Wells – 23 – Bradford City – Daily Rectum – No fee mentioned (16/12)


    Ntep – 21 – Auxerre – Talkceltic – No fee mentioned (16/12)


    Finnbogason – 24 – Heerenveen – Herald – £5M (17/12)


    Mawuli – 24 – Hapoel Ashkelon – Herald – £750K (17/12)


    Johannsson – 23 – AZ – Daily Mail – £2.5M (19/12)


    Soriano – 28 – Red Bull Salzburg – Daily Express – £4M (31/12)


    Griffiths – 23 – Wolves – Various – £1.25M (31/12)


    Fletcher – 26 – Sunderland – Various – £6M (02/01)


    Janko – 30 – Trabzonspor – Various – Player has expressed wish to join (11/01)


    Aboubakar – 21 – Lorient – Talkceltic – £3M (13/01)


    N’Doye – 28 – Lokomotiv Moscow – Celticrumours – £6M (13/01)


    Nikolic – 26 – Videoton – Guardian – £500K (14/01)


    Le Fondre – 27 – Reading – Talksport – No fee mentioned (15/01)


    Bent – 29 – Aston Villa – Daily Mirror – No fee mentioned (15/01)


    Walters – 30 – Stoke – Celticrumours – No fee mentioned (15/01)


    Rhodes – 23 – Blackburn – Talkspurt – No fee mentioned (16/01)


    Marica – 28 – Getafe – Daily Express – No fee mentioned (16/01)










    ShamPOO rumours:




    Name Club Reason


    —-—— —–


    Yamada – 24 – Jubilo Iwata – After a week long trial Celtic decided against


    Pawlowski – 20 – Udinese – Player going to Slask Wroclaw on loan










    Rumoured loan out:




    Name Source Club


    —-—— —–









    Rumoured transfer out:




    Name Source Price


    —-—— —–


    Foster – Various– £7M to Southampton/Sunderland/Everton/Benfica


    Samaras – Various –£2M to Borussia Monchengladbach/Hull/Toronto/Aston villa


    Ledley – Various – £1M to Carrdiff


    van Djke – Various – £10M to Man City or Arsenal


    McGeouch – Various – £250K or loan to Coventry


    Bangura – Daily Rankers – Loan move to Falkenberg


    McGregor – Express and Star – £750K to Wolves/Derby


    Pukki – Celticrumours – West Ham interested









    And as always let me know if you’ve heard of anyone that isn’t here.


    Bye for now fholks!






    /Bishop B

  8. Sale and leaseback of 3 assets……. Will be a feature of the next 3 months or more I reckon.



    thevAlbion car park.



    Had anyone ever explained why a car park in Govan is worth so much money?



    Mineral resources underground maybe?

  9. Guys, I hate to be a wet blanket and interrupt the sevco fun BUT I do hope you will say a little prayer for this wee boy Mikaeel and his family.who must be suffering so much at this time.

  10. Geordie Munro


    16:18 on


    17 January, 2014


    Upon a hill there stood a coo.



    It musta moved, it’s no there noo




    I saw a coo on that there hill.


    it,s no there noo


    it musthae shifted ….


    braw ….

  11. stringer bell



    16:26 on 17 January, 2014


    Sale and leaseback of 3 assets……. Will be a feature of the next 3 months or more I reckon.



    thevAlbion car park.



    Had anyone ever explained why a car park in Govan is worth so much money?



    Mineral resources underground maybe?



    It’s the planning permission for the super casino that makes it so valuable .



    The Glasgow Bellagio

  12. BMCWP ………FC not PLC 15:45 on 17 January, 2014





    Dinnae say that-they’ll block yer flight back!


    You looking forward to it,bud? I hope it goes really well for you and V.


    HEBCELT’s Stornaway specials await your detour to Swindon……………….



    Cheers pal but really don’t know what to think; I’m not sure it’s a good move but V is looking forward to the ‘adventure’…………. She still looks back on the time we spent in Riddrie through rose tinted glasses. Bless her. Me, I just don’t know. We’ll give it a shot and hey, we can always come back to Cebu if it doesn’t work out as planned/hoped.


    Don’t exactly have a queue of buyers looking to take ‘the beach house’ off our hands. More chance of selling Mo Bangura to a group of Scandinavian agents……….


    No matter pal, see you soon. First stop Cambuslang, next stop Wiltshire…………



    Regards & Hail Hail



  13. eddieinkirkmichael on

    stringer bell



    16:26 on 17 January, 2014


    Sale and leaseback of 3 assets……. Will be a feature of the next 3 months or more I reckon.



    thevAlbion car park.



    Had anyone ever explained why a car park in Govan is worth so much money?



    Mineral resources underground maybe?_





    It generates over £1m in charges every year, it’s a cash cow.

  14. eddieinkirkmichael



    16:24 on 17 January, 2014



    Perhaps the spivs will set up another company which will purchase the stadium at a price which reflects its condition, they secure borrowing/investment to bring the stadium up to scratch and then lease it to the club on a full repairing and insuring lease.

  15. eddieinkirkmichael on

    ernie lynch



    16:33 on 17 January, 2014





    16:24 on 17 January, 2014



    Perhaps the spivs will set up another company which will purchase the stadium at a price which reflects its condition, they secure borrowing/investment to bring the stadium up to scratch and then lease it to the club on a full repairing and insuring lease.



  16. eddieinkirkmichael



    16:30 on 17 January, 2014


    stringer bell



    16:26 on 17 January, 2014


    Sale and leaseback of 3 assets……. Will be a feature of the next 3 months or more I reckon.



    thevAlbion car park.



    Had anyone ever explained why a car park in Govan is worth so much money?



    Mineral resources underground maybe?_





    It generates over £1m in charges every year, it’s a cash cow.






    Seriously? Who pays seven figures annually to park there! ?



    Genuine question.

  17. eddieinkirkmichael on

    Still think Murray park will be sold to finance repairs, that way spins aren’t out of pocket Ernie and rental is then pure profit with no repayments to bank

  18. Joe Filippis Haircut on

    I am not up to speed on the Rangers situation but posters are talking about a sale and lease back of Ibrokes and Murray Park and the Albion car park now if Craig Whyte and ticketus own the assets how would that play out for the current board ? H.H.

  19. eddieinkirkmichael on

    Stringer I read it on RTC blog and tSFM blog not sure how many cars it holds but it’s apparently full every home game

  20. traditionalist88 on

    Paul67: ‘weeminger, very few people have realised just what a game changer 2012 was. 10 years from now, 20 years from now, we will still be winning trophies because of it.’





    Disagree. I think, 10 years before, 20 years before, we were LOSING trophies because of the corruption and financial doping at Ibrox.



    When we continue to win trophies this will be because we are the biggest club and are run properly and not because of the huns past catching up with them which was only a matter of time.




  21. ……and the KevJungle Award for most repetitious posting goes to…………….Sydney Tim !!!




  22. Just saw Fat Salary McMoist on SSN. He is obviously a shifty, sleekit wee Hun with non-answers galore. How he supports his players etc; has no idea what was discussed at meeting and has no idea how cuts will be made. If the hordes are buying any of this, they are even more glakit than they appear.




  23. Following Alistair’s bold and selfless revelation that he knows who is to blame, the Huns take to their FFin’ keyboards:



    “Ally has to issue a clarion call to the fans”




    “Once again Super is caught in the line of fire”




    ” I really feel for him as he has had to shoulder the burden of looking out for the Rangers on his own. He said once that “we don’t do running away” and he has kept his word.” [“Running” you say, Sammy?]




    “Alistair still trying to remain dignified despite what he has to put up with.”




    “I honestly don’t know how Ally hasn’t walked yet.



    His love for Rangers must be unbreakable.”

  24. Lenny says he is looking for another striker and an attacking midfielder. Who will we end up with?


    Griffiths & Armstrong?



    Don’t think Griffiths is first choice but could be back up option (McGregor in a swap deal?).


    The Peter Houston influence could mean we move for Armstrong




    Video Assistant on the making of the move ‘Shooting Dogs [Beyond The Gates]’



    He lost ten of his relatives in the genocide.



    He escaped the ETO massacre and hid under the bodies of his own family to avoid being found and butchered by the extremists.



    Father Christopher, despite, or because of his faith and courage, was by then with his maker.



    And the Rangers share price continues to fall and hate, well hate is hate.



    Oh! and HASHA SUGIRA… well he’s a Celtic Supporter.

  26. eddieinkirkmichael-It was a typically generous gesture of Murray to relieve Oldco of the Albion Training ground ,for a whole pound note.

  27. TBJ Praying for Oscar Knox on




    Lets say 20 home games….that’s 50k a game to park cars.


    If its a fiver to park for 2hrs… that would need 10k cars and obviously that cant be true.



    I would imagine that woulld be very lucky to hold 2k and even then im being generous.



    But that would mean £25 each jalopy .

  28. Oh no no no no,


    Geordie Munro.


    Oh no no no no,


    My dear laddie,


    I don’t want to go to Idaho,


    I’d rather stay here in Kirkaldy




    I thank you :)

  29. Bada,



    I was wondering how long it would take before someone commented on the news story.



    That now allows you to bash the board when necessary. ;)

  30. TootingTim supports Wee Oscar on

    Hi Paul67 et al,



    I guess the point of the last para in the Soton BBC article quoted above is to impress upon the general reader how intense Mo Tinypockets (CW ack’d, SFTB:)) and his team have been in chasing that ‘edge’, and I guess their over-performance this season would seem to justify this.



    It’s the latest upgrade to Arsene Wenger’s grilled broccoli & skinless chicken and ‘no boozing lads’ revolution.



    So perhaps next season will see squads of EPL hirelings spending part of the week in 5 star accommodation trying to close off SFC’s game-changer.



    Meanwhile today we read that 100,000 folk in England have stopped participating in the grass roots of the game here in EPL-land since 2012.



    Modren neo-liberal football.

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