Rangers FC not feasible, an unlikely bampot explains

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Forbes Magazine’s article on the demise of Rangers and prospects for its successor club are notable only as they do not emanate from the Celtic online community.  Jon Pritchett, an advisor to one-time preferred bidder, Bill Miller, explains why he believes a commercial turnaround of “Rangers FC” isn’t feasible.  This assessment was based on season ticket revenue for the new club being 20% less than what the old club earned last season, an ambition that is far from being achieved.

Forbes article brought protest from Sevconian chairman, Malcolm Murray, who retorted that all sorts of positive developments have happened to the project since Pritchett made his assessment in May, including “significant investment in the club from the individuals and organisations”, although he didn’t name investors or provide specific details.

There is something familiar about this process.  Harbingers of doom are rubbished by a club who insist they are in perfect financial health.

Murray claims his club have sold 36,000 season tickets, the adult price of which is £268, inc vat, or a total of £8.04m ex vat.  He also has money from Sports Division and consortium members, at least some of which will have gone towards paying Rangers administrators’ for the club’s assets, but he makes no secret of the fact that his new company needs to raise money through a share issue, which he hopes will “generate many millions in additional revenue”.

Bill Miller, like Blue Knight bidder Paul Murray, could not see how a Newco would be viable without access to European, never mind SPL, income.  The most interesting aspect of the prospectus Newco hope to publish will be the cash shortfall, not only for this season, but for each of the three subsequent years they will be ineligible for European football.

The prospectus will also have to detail how this gap will be bridged, and will have to recognise the impact of potential financial and sporting penalties from the SPL Commission looking into improper registration of players at Rangers, whose SFA membership the new club acquired.  These are the huge questions Newco has to address before it asks investors for cash, the stripping of titles is merely window dressing.

Malcolm Murray is correct, a lot of water has passed under the bridge in the five months since Jon Pritchett looked at the books, but a lot of that water is choppy.

The new issue of CQN Magazine is out today, 80 pages of fantastic Celtic content.  Click here to read for free online, or strain your eyes squinting below.

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636 Comments

  1. Speirs on Twitter saying rumours of major Sevco backer pulling out and possibilty of administration.

  2. dirtymac » fast forward to the G.O.D

     

     

     

    So from the £20 Million raised £5.5 Million is lost right away?

  3. Fool me once, shame on you.

     

     

    Foll me twice, shames on me.

     

     

    Fool me three times, I am a stupid hun…

  4. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    brogan rogan trevino and hogan supports kano 1000

     

     

    11:01 on

     

    11 October, 2012

     

    Good Morning,

     

     

    WOW ……. SOME MAN …..!!!!

  5. ernie lynch

     

     

    ” And the fire from the ice ”

     

     

    Hah !

     

     

    I remember my Grampa showing me how to make fire from ice .

     

     

    .

  6. pabloh_AKA_NEIL LENNON on

    Auldheid

     

     

    That would be beyond hilarious. I suggested to a couple of sevconians last month about sevco administration b4 Xmas and I was laughed at

  7. SonsOfErin:

     

     

    Even if the Vatican Bank itself vouched for them, the vast, vast, majority of the human race who are awake, know it is but the next chapter in the biggest scam – ever – in British Sport.

     

     

    So who will vouch for them?

     

     

    That will be interesting.

  8. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    auldheid

     

     

    11:13 on 11 October, 2012

     

    Speirs on Twitter saying rumours of major Sevco backer pulling out and possibilty of administration.

     

     

    DOUBLE WOW…..!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!……. I need a sedative

  9. andrew67

     

     

    10:22 on

     

    11 October, 2012

     

    Just how much damage would announcements from HMRC and the EBT investigation do to the Sevco share issue?

     

     

    Timing could be everything.

     

     

    ………………………

     

    here we go again …………yesssssssssss

  10. saltires en sevilla on

    brogan rogan trevino and hogan supports kano 1000

     

     

    11:01 on

     

    11 October, 2012

     

     

    Interesting stuff.

     

     

    David Miller’s autobiography ‘fall and rise…’ Gives an interesting insight into the pressure applied to cyclists by team and sponsors to dope… The UCI don’t do enough to stop it. Mainly because it would destroy the spectacle – 3 wks solid climbing up mountains that some cars would choke on… and some accelerate up those cols!

     

     

    It will be interesting to see how long Team Sky can resist the temptations …off to a decent start …but its an unforgiving sport

  11. rangerstaxcase

     

     

    Green’s “debt-free” declaration is meaningless without an audited balance sheet & statement of equity. Debt can take many forms…

     

    “Debt” can take many forms- preference shares, special purpose entities, it’s easy to hide (legally) if you don’t have complete financials.

     

    Green & partners will have an escape route that treats them better than new shareholders. This is certain & is effectively the same as debt.

  12. ASonOfDan

     

     

    11:13 on 11 October, 2012

     

     

    So from the £20 Million raised £5.5 Million is lost right away?

     

    +++++

     

     

    £20m?? Is this the share issue thing? There’s no way they’ll raise that amount of capital unless it’s massively underwritten by someone. I can’t imagine many trust fund managers being too impressed with their offering.

     

     

    ST’s will have realised barely more a third of that amount (net of VAT).

  13. Valentine's Day on

    Please keep post’s short and uninteresting I am

     

    stripping wallpaper and don’t have time to lurk.

     

     

    Hell hath no fury like Mrs Valentine’s Day when

     

    her living room is not stripped of wallpaper.

  14. Philbhoy - It's just the beginning! on

    ASonOfDan

     

     

    Is that the same thing as Desmond having fancy shares that pay him a huge dividend, whereas my shares have paid me brussell sprout since I bought them years and years ago?

  15. I can’t believe the huns will fall for this……. have they learned nothing from North Haverbrook?

     

     

    hehehe… etc.

  16. Celtic who have a host of talented players on long term contracts and are also participating in the CL and will pocket £20 Million from the competition are valued at £33 Million.

     

     

    Green values a Scottish Third Division club, who have a transfer embargo and Kevin Kyle on a one year contract at £40 Million.

     

     

    Roll-up Roll-up ya stupid zombies…

  17. GooooooooooooooooooooooooooD

     

     

    …………… Afternoon………………………..

     

     

     

    C…….……..Q……………N

     

     

     

    Cooler today…………………. Only 29°

     

     

    BigJoeINdaaaaaaaaaaaahouse

  18. I suggest we all declare an interest from 5 pm tonight.

     

    Would be a shame not to carry this charade onwards and the longer it goes the more lies need to be told.

     

    However at some point true funding and accounts will have to be divulged.

     

    All extensions and prospectus will of course cost money, lets all ask for the details.

  19. Brogan Rogan Trevino and Hogan supports Kano 1000 on

    Saltires

     

     

    Tour de France is undoubtedly the toughest sporting event on the planet.

     

     

    Huge pressure to Dope and effectively there has been not one winner between Indurain’s last win and Cadel Evans in 2010 who has been dope free!

     

     

    Kimmage has raised issues with Dave Brailsford — the Director of Cycling in the UK– about the British teams links with some known doping doctors, and where he was being spoken to before he is now being shunned.

     

     

    Also note that one of the Doctors named in the USADA report who was banned for life re Cycling– was an adviser to Barcelona FC a few years back– although Barca deny that he was “on the payroll”– however he as there for some reason in some capacity!

     

     

    http://www.telegraph.co.uk/sport/football/teams/barcelona/9597078/Barcelona-deny-link-to-banned-doctor-Luis-Garcia-del-Moral-who-worked-with-Lance-Armstrong-and-US-Postal.html

     

     

    I thought Blinker was pants

     

     

    That link features the documentary on Big Jock and the initial 45 min programme on the Armstrong affair– both are very good.