I see comment in today’s Telegraph about a shortage of staff to facilitate a club which occasionally hosts circa 50,000 fans at Ibrox. Let me put some meat on the financial bones of that particular project.
During 2010-11, the last season Paul Murray and Dave King were directors at Ibrox, Rangers spent £27.7m on wages with the bulk of that, some £21.5m, going on players and football management, while £6.2m went on non-football related wages.
That same season 37,599 season ticket sales were bought, all at ‘full price’, of course, which brought in £12.9m (this is net of vat, remember). That was a bumper European season for Rangers. They qualified for the Champions League, where they faced Manchester United, Bursaspor and Valencia. They then dropped to the Europa League, where they beat Sporting Lisbon before going out to PSV Eindhoven. Total ticket sales, including all cup, European, away support and individual match sales, came to £19.9m.
Newco’s revenue from all ticket sales and hospitality sales last season was £12.4m. They also paid £1.629 in equipment hire and plant depreciation, this figure is not coming down, while costs for police, insurance, rates, water, electricity, gas, IT, office consumables, cleaning and the odd onerous contract was £16.4m
So consider: the last non-football wages at oldco was £6.2m and total ticket and hospitality sales last season at newco was £12.4m, while a recent peak for season ticket sales at oldco was £12.9m.
The only way modern football is a viable business at a stadium which regularly holds circa 50,000 people is with the support of healthy retail and merchandise deals, and with regular group stage European football.
Newco don’t have access to Europe, as they are a newco, and they don’t have healthy retail and merchandise deals.
If they eventually qualify for Europe they will need to eliminate seeded teams at every round to progress to group stage football. They are not in as healthy a position as they were when Charles Green took over. Green and his cronies had their business plan spiked, before those onerous contracts kicked in, by way of compensation, ironically, leaving the new regime with the prize they planned for, but it’s a battered looking trophy.
Now they have as much money as tub thumping can generate and Sugar Daddies are prepared to pony up. No one has yet explained how this club is a viable entity.
For the record, we don’t share a business plan. Not in a million years.
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They should also take the opportunity to get of all that dreadful double glazing and fit some proper sash windows …
Spot on once again Paul. Oldco’s debt went down by £13m in the two years they had CL money (direct access to group stage). So say £30m for that means an overspend (exc CL money) of approx £17m over those two years.
This “business plan” only worked with direct access to CL group stage.
Maybe Murray or King will be asked how they would have funded the club in 2011-12 without this money. Or maybe not :-)
Commentator: Harry Carpenter
HT
Cheers
As a man in the know do zombies imbibe the vile juice?
HH
Could there be a job for Peter O’tool?
Dharma bam, yes, a wee homage to Arthur Lee. A track from Forever Changes by Love.
They already have more masons than they need.
Tile Lafferty
I don’t think they’ll be short of masons.
Arghh Alasdair Maclean!
Stuart Slater?
Brian Ladderup
Mary tiler moore
The Red Telephone,
Was hoping that was the case, one of my very favourite bands and one of my favourite lps. Saw him a few times with Baby Lemonade – great gigs and his voice was still in great shape, too.
Oops, should have read back,
Weldinho. The cry was no defenders…
It would be handy to have 2 Andy Gorams as he could hold both ends of the beams.
Yuk, it’s lunchtime, please, some decorum required …..
Any lurkin D.I.Y ers who are thinking of heading over to help out their club…..
http://youtu.be/U8xdBCVb-G4
A superfluous “2” in there.
would they accept help from former members of the PVA?
marakesh express
What if I need a refund?
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big nan
12:58 on 10 March, 2015
Re the voluntary work at Ibrox.
I worked with a plater from Glasgow who had been employed on structural steelwork at the home of the Hun and he told me of how, at every structural joint he fixed he welded on a small crucifix.
He must have saw the incredulous expression on my face as he went into his pocket and drew out a small sheet metal crucifix, one of the hundred he had punched-out of a sheet of thin steel for his Ibrox project.
As well as being a Tic fanatic he was a devout RC.
JK, if you read this blog you know this is true because you were that soldier!
A pal of mine was a painter with GCC,every couple of years a squad would be sent to the umbrella at Brigton cross to paint it
He said all the tims would paint in holy medals and crucifixes
HH
wooop de do
ticket secured for sunday.
ta for those lokking out for me, but thats me got one.
alltogether now ………
“we’re on the road again”
clap clap
No 7 – 1 (4) tradesmen allowed…
My friends in Celtic,
Wow I am gobsmacked, even more gobsmacked than Tom McLoughlin,s interpretation of analog motions @ 11.42hrs. ( I bet his mate only asked him the time )
According to an online survey , I have more in common with the liberal democrats than any other party.
I have only one response to that. S@ite.
HH.
Kenny McTrowell
Silence from the Compliance guy ?
on the ibrox repair bills, i dont know what all the fuss is about …………
make it into a good DIY project, a self assembly job ..
IKEA has offers on now ,
* 5 star casino in a box.
* Helipad ,
down the aisle next to the floating pitches.
IKEA play with a flat pack four.
Great start for Ruby at the Festival. Hope you were all on!
philbhoy – jobbies are like those singing novelty fish, or the comedy stylings of Russ Abbot: always funny. (thumbsup)
Kenny mixxer
Compliances Officer has 1 hour or is it another move along Timmy nothing to see here……..
HH
Jackie and Al joyner.
Future GB banner….
The Four Tradesmen of the Apocalypse.
right the new huns line up for next season is as follows. all can claim to have been footballers in a sense and can help rebuild the ground.
Rab the brickie Douglas
Ben Thatcher
Weldinho [welder da silva marcal]
Luke Gutteridge
Richard Carpenter
Liam Brady
Joseph Desire Job
Calvin Plummer
Billy Paynter
Wynton Rufer
Gilles de Bilde [ no relation to bob]
might be shite on the park but ipox will look good.
Big Nan
I knew a guy who did a tiling job in the bogs of the District Bar in Paisley Rd West.
Told me he planted some crucifixes in with the adhesive. Childish of course but the very thing that would drive some of the klan crazy.