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
- ...
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- ...
- 24
- »
Joe Filippis Haircut 17:37 on 17 January, 2014 The BarcaMole. I agree and when he has fully settled I think we will see the best of him. H.H……………..
Thanks for the response Joe; we may well be in a minority re but I really feel that this ghuy is a player and I mean a very, very, good player for us when he settles……………..
Regards & Hail Hail
TBM
Afternoon all
McCoist admitted in today’s press conference that his pay cut hasn’t taken place yet.
The reason?
“I’ve not had the contract put in front of me yet”
valentinesday 2 coming soon
17:50 on 17 January, 2014
Good Evening Timland.
I’ve decided to listen to snyde tonight…….I’m just shamelessly
rubber necking, please tell me I’m not going to Hell.
If it was half as good as last night, I think you will enjoy it. Mind turn it of at the ads
“We’ll try and bring in a striker and an attacking midfielder type”
NFL
Paul67,
Agree the wage cut was a distress signal. To make the sale/leaseback work from a financial perspective the tribute act should go for admin and cut all costs to be able to field a team and keep the lights on. This will ensure the tenants can afford the rent…just.
Also the investors/spivs will not give £10M to the spivs/investors from their own pockets. They will deduct the rent from the season ticket money. It will be ticketus the sequel from the Spivs to fund the “sale investment”. After 3 years the rent will flow to the spivs as the sale price will have been met.
Everton may be protesting at having to pay Jelavic sell on money as that club no longer exists?
And the last post from the RIFC Share Discussion Board tonight:
“..gravity has taken effect…get out now..any support for this share will vaporise at the 25p mark… The manager today supporting his players not taking a pay cut has cost shareholders today..the board should act and get rid of this guy who also recently voted against the board at the AGM”
Latchford (on sale and lease back)……. ” ..it will be ticketus the sequel …”.
Cracker, ok to use that?
Craig Bryson might be the attacking midfielder we are after.
!!bada bing!!
18:06 on 17 January, 2014
Craig Bryson might be the attacking midfielder we are after.
Hope no
is there anybody in sevco who aren’t ripping money out of it ? – have they any positions going ?
Emerald bee fire away ; just back from Berlin and in catch up mode on my favourite tribute act
Hail Hail
It’s a farce, say’s uncle shug!!!!
bada bing…
Astounded of forehead if that’s true!
Surely unlikely tho?
Could some one please repost the link to allow me to listen to BBC or Clyde here in Cork.
Thanks in advance.
valentinesday 2 coming soon
17:50 on
17 January, 2014
Good Evening Timland.
I’ve decided to listen to snyde tonight…….I’m just shamelessly
rubber necking, please tell me I’m not going to Hell.
You will mate but at least you will go there laughing at those f*%*@r$ :)
owen
18:13 on 17 January, 2014
Try this
http://tunein.com/radio/Clyde-1-Superscoreboard-p230350/
enjoy owen
http://www.clyde1.com/
McCoist…’we’re on a similar road but not the same road’..I’m thinking Talking Heads doing the Soldiers Song?
The guy is clueless.
15 % reduction in waistline also deemed unfeasible
I have been critical of our board this year but credit when due, superb news that Celtic are covering the costs for the appeal of the ghuys wronged in Amsterdam.
Hat doffed!
jackie mac
18:16 on 17 January, 2014
15 % reduction in waistline also deemed unfeasible
Gregg’s share price through the floor at that thought.
sorry came across this when trying to google the latest on the state of ibrox
it’s so funny looking back
http://www.dailymail.co.uk/sport/football/article-506533/Rangers-consider-open-roof-stadium-new-look-Ibrox-host-megastars.html
Ten Men Won The League
17:52 on
17 January, 2014
Afternoon all
McCoist admitted in today’s press conference that his pay cut hasn’t taken place yet.
The reason?
“I’ve not had the contract put in front of me yet”
Can anyone else see Super Salary standing there with a double barra sawn off shotgun goin……..”go on punk….put it in front of me…..i dare ya”?
For you boxing fans out there…..
http://xfinity.comcast.net/articles/sports-boxing/20140117/Obit-Sulaiman/
Owen try a free smartfone app Tunein Radio
That fat fek Mccoist,whit a bad liar.
heheheheheheheheh raspberry
this could have a huge effect upstream and downstream of steak bakes
Bookies allegedly took a pounding last weekend.
Some stats for this weekend.
Fulham have no wins in 28 visits to Arsenal.
Chelsea 4/5 have won 3, drawn 2, lost 1 in last 6 fixtures h and a v Man U,
Sheffield Wed have won 4, drawn 3 in last 7 visits to Burnley.
Middlesbrough 8/11, won 5, drawn 2 in last 7 fixtures h and a to Charlton.
Huddersfield have won 1 in 10 visits to QPR
Bristol City have not lost in the 6 meetings with MK Dons, w4, d2. Won all 3 at home and are 6/4.
Crewe poor record v Orient h and a with 1 win in 9. LO 10/11.
Tranmere have one win in 18 visits to Petrborough……who have lost last 5 matches.
Preston have vg home record v Coventry with nod loss in 18. Preston 1/1.
Bradford have 1 win in 18 visits to Sheffield United , 1/1
Rotherham 1 win in 20 visits to Shrewsbury9/5.
Burton have never beaten Bury, p6, d2.
Hibs in last 6 h and a to St Mirren, w4, d2 and are 4/5.
Ross County have played Dundee United 14 times, w2, d4.
Form guide gleaned from Football First
Middlesborough improving with 4 wins in 5.
Brentford have won last 8, 5/4 away to Walsall.
Preston improving despite loss last week, 1/1 h to Coventry
TORQUAY have new manager and won 2 -0 away to Wimbledon last week. They are 1/1 home to bottom club, Northants.
YORK have won 3 in a row under Nigel Worthington and are 1/1 at home to Bristol Rovers whose away record is ver poor.
Forfar are 10-1 on Monday at home to Sevco who have to travel by public transport with umpteen stops along the way.
Good Luck wt the bets. HH
Evening Timaland from a cold and damp hun free mountain valley.
owen
This works for sure.
http://www.surfmusic.de/radio-station/clyde-1-102-5-fm%2c1310.html
Lefty
Can’t get the stream to work, 403 error.
HH
jackie mac
18:20 on 17 January, 2014
heheheheheheheheh raspberry
this could have a huge effect upstream and downstream of steak bakes
Am getting rid of shares in flour and horsemeat.
Alistair has been given categoric assurances there will be no administration.
That’s good enough for this bear.
Just seen Coisty on stv. Legend, albeit of the hubristic variety.
Managed to respond ‘yes 100%’ to almost every, contradicting position. Such agility for one so plump.
TeeHeeCSC
HH jamesgang
McCoist lying again.
Neil Lennon leaves him standing when it comes down to plain intelligence.
Don’t normally comment on any aspects of the Hun circus but I’ve just witnessed McCoist’s interview.
The arrogance and deception of the daftie is quite astonishing.
Please can he remain in situ for many a long day.
Billiam Dodds – “Lee Wallace is worth a couple of million”. What – Turkish Lira?
Bada Bing. Bryson was mentioned on Clyde last night as a possible for Celtic. H.H.
Latchford
I’m going to Berlin in July for 4 or 5 days and would welcome some good tourist info.