I try to avoid those who really should be avoided but I caught the report of Peter Lawwell’s Sky TV interview on their website yesterday. The “No summer sales” headline was misleading in itself as our chief exec actually said “there is no real necessity to sell players now”.
We are a solvent and well-run football club, there is no real, or imagined, necessity to sell, but there is an enormous leap between this status and “no summer sales”. All clubs, not just Celtic, sell when an offer exceeds their valuation for a player and they believe the money could be more productively redeployed elsewhere. There is no necessity for Manchester City to sell players, not until the oil runs out in the Middle East, anyway, but they may still sell.
Best part of the article was from Charlie Nicholas, “I’m a bitter idiot. Listen, I’ll prove it…..”
I’ve translated that quote from the vernacular.
Loved newco Rangers accounts. £3.5m in the bank on 31 December, £1.5m loan since, so they have £5m to operate until the season ticket money comes in, which will just be enough, but cash burn is running at over £1m per month; close to £15m a year.
£30m-£50m is not enough.
Seville – The Celtic Movement:
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connaire12
19:02 on 28 March, 2014
Vmhan
Good to see you again even though the occasion was a sad one. I hope you and your wife returned home safely.
………….
It was a real pleasure and yes a sad time today but magic to see so many auld friends. The song by one of Freds nephews was one I remember being an old fav of my dad and his mates, on the old Greenock knights bus back in the 70’s.
Sholes of Herring CSC
Ps I’m still up the Puerta de Glasgow
HH
Shoals hoooops
Evening Timland from a coolish hun free mountain valley.
Boab1888
Sad news about your Mam, may she rest in peace with your Da.
YNWA.
…………………………….
WiTS
Yer a Star ma mhan, many thanks, that’s this months bills taken care of.
FFS, if only Graham Wallce had been looking in, all there troubles would be gone >}
HH
If you have time tomorrow I recommend so called derby of Poland Legia Warsaw:Lech Poznan. Kick off at 14:30 your time.
What is the Stars
Thanks for tip,small wager on,but why did I take 16s.HH
Oor Phil….!!
Rather concerning
Leave a reply
As regular readers will know I have been continually asserting that there is a serious cash crisis at Ibrox.
My offerings prompted a statement from Ibrox and it was duly read out on Radio Clyde refuting my allegations last month.
Now we have the interim accounts for Rangers International Football Club (RIFC) which gives the state of play from June last year until 31st December.
For the avoidance of confusion RIFC is the parent company of The Rangers Football Club (formerly known as Sevco Scotland Limited) which is sole the representative of Rangers Football Club (1872-2012) here on earth.
As you will know dear reader when it comes to matters Ibrox you will find that Scots law, UK company law and the laws of physics are suspended.
Rangers were liquidated, but it did not die, like Doctor Who it regenerated into Sevco and everything was ok again.
Honest…
The people who advise me on these matters were rather surprised that the inaugural accounts of RIFC presented at the AGM last December had avoided a going concern warning (GCW).
Now the interims have one of those.
Essentially the status quo at RIFC/Sevco makes no financial sense.
This is an unsustainable business model.
RIFC is a company and it only owns a loss making subsidiary.
Moreover, they have no credit line from a bank.
Subsequently they are relying on emergency finance from shareholders.
The infamous Laxey Loan had now become the Letham loan.
This chap is, we are told, a Rangers supporter and wants to take no cash from the club and fair play to him.
The Ibrox outfit will need much more of this type of emotionally driven altruism if they are to survive with the current cost base.
It really is that simple.
New Rangers spends too much money.
Graham Wallace knows that as does Philip Nash.
Indeed these interim accounts point to a slight increase in operating costs over the six months to December 31st 2103.
The only way to reduce this crippling cost base quickly is to press the Administration button.
All of the preparatory work was carried out with some urgency in mid-February and was completed against a tight deadline suggesting an imminent event.
The Dave King intervention completely blindsided the current regime and they thought that their highly paid PR guru would have had some prescience in these matters.
The possibility of a season ticket strike is, of course, the last straw.
The demand of the fans for the mains assets of the club to hand over as security for the season ticket money is impossible to comply with.
The hole in the balance sheet would be catastrophic for any publicly listed company never mind one that is haemorrhaging money and doesn’t have a credit line from a bank.
The fans are at the core of this entire saga.
There is an irreducible core home crowd and this is what is currently being ‘gamed out’ by the clever numbers people running things at RIFC.
That loyal customer base is crucial to any future business plan.
Let’s say 15,000 season tickets.
That is the amount of people who would turn up no matter the product on the pitch.
Now once the cost base is driven below what those 15,000 season tickets bring in then you have a profitable business.
Of course that is not what the faithful fifteen thousand or any other member of the Ibrox support wants to hear.
That is why the Dave King message is so seductive.
It is the answer to their prayers.
A Bear with cash to burn.
Terms like ‘soft investment’ sounds so appealing to their battered ears.
Of course it was that vulnerability that made them susceptible to tales of billionaires with wealth of the radar in 2010 and 2011.
One man turning up who wanted to pour millions down a hole would solve all of their problems.
The smart people at Laxey have no intention of becoming benefactors or in having their shareholding diluted by another issue.
Austerity is the only game in town.
Payroll was met yesterday thanks to some commercial income for this season and will not be replicated next month.
Sources assure me that additional emergency finance will be required to meet this monthly obligation in April.
The figures in the interims are eye watering.
As always cash is king, follow the money.
In December 2012 the new club at Ibrox had £21.2 million cash in the bank, but exactly one year later in Dec ember 2013 it was £3.5million.
£1.77 million of that belonged to Mike Ashley and has since been returned.
That leaves £1.73 million.
So in twelve months the new entity managed to get through £19.47 million.
Of course some of that would be one off payments.
However, the overall picture is clear.
This football club/holding company, celestial body (delete as applicable) is burning its way through money at an unsustainable rate.
Moreover, no one in the lending business wants to know because of the pesky contingent liability on the main assets of the business.
Of course if I were the RIFC chaps then I would be talking to Craig Whyte and his colleagues in Sevco 5088 right now.
I am sure Mr Whyte wouldn’t be difficult to deal with.
He will have a price that allows him to do walking away from the contingent liability that is crippling all efforts to get normal financing.
Now I’m guessing now, but I reckon Craig’s first request might be to say something like:
“five million pounds please!”
Therefore offering him, say £100,000 wouldn’t really work and I doubt that even upping that to, say, £275,000 would interest the suave billionaire.
However I’m sure they could, if such a hypothetical scenario were to unfold, reach an agreement.
They are reasonable men after all.
If the contingent liability were to go then that really would be a game changer.
Normal financing could be secured against the currently encumbered assets (Ibrox and Murray Park) and then even a sale and leaseback would be possible.
When Rangers died in 2012 there was a list of 276 creditors, including the Ambulance Service and local family run businesses, which were left unpaid.
The GCW might make suppliers re-think their payment arrangements with the current club at Ibrox.
Of course ‘Cash On Delivery’ terms would only make the cash flow crisis-and it is a crisis-even worse.
So February payroll was met by the ‘Laxey Loan’ and wages in March was taken care of by commercial income that won’t be available for April.
I don’t see how this situation avoids Administration and that view is shared by some insiders very close to the action.
What I am sure about is that when the important people on the sixth floor at Hampden signed off on the Five Way Agreement less than two years ago they did not envisage that the man across the table from them would now be in a fine residence in Normandy and disengaged.
Moreover they could not have imagined that in March 2014 the club chairman David Somers would be informing the market that “the company may be unable to realise its assets and discharge its liabilities in the normal course of business”.
It is just as well that the governing body of the national game in Scotland has such excellent people in key positions who will take decisive action if required.
If it were not for the depth of talent at the SFA then I would be concerned by such a warning.
I really would.
hamiltontim is praying for oscar
20:11 on 28 March, 2014
Dundee Utd have confirmed that they’ve sold out their initial allocation for Tesco Ibrox and are now selling tickets for the Govan Stand.
………..
I was wondering HT, does the DU tickets come with PPE, like safety helmet, asbestos face mask, ear plugs etc
Just wondering like :>)
Evening all. Whats the latest abt wee Oscar?
No sales
Bring tony back
Give zlatan what he wants …. A jersey to fill in CP
Please!
Vmhan
Safety goggles to prevent Zombie eye contact, gas mask to prevent the inhalation of toxic Hun fumes and crucifix for obvious reasons!! :-)
HT
Nae wonder you got kicked out the louden with that gear on
jude2005 is Neil Lennon \o/
https://fbcdn-sphotos-a-a.akamaihd.net/hphotos-ak-prn1/t1.0-9/p261x260/1970674_539158872868330_1031138216_n.jpg
Evening CQN!
HAIL! HAIL!
Token
jude 2005
if you do facebook try :
get well soon wee oscar
HAIL .HAIL
Ht @-20.11
Are there any tickets available for the vegetable aisle ? :)
Hh
Ht – what -no Cqn camouflage style PVC Speedos ?
If rat nebbin … Never even wore the hoops … Is due a CQN interview to explain himself
Shirley a hooped legend like champagne Charles deserves at least the same respect
Jude fae wee Oscars twitter page
HAPPY BIRTHDAY to my AMAZING daddy! He said I could have his bday so I’m having a party to celebrate being 5-and-a-half! Love u mucker Xxxxx
SOAL
That get up is a pre requisite for any visit to that place.
bognor
Ta
He’s a star bless him. In our prayers as always.
HT
Nae wonder i looked out of place in there
johann murdoch
20:50 on 28 March, 2014
Ht – what -no Cqn camouflage style PVC Speedos ?
——–
You knock yersel out big guy but not for me :-)
What is the Stars
That tip for the 6.45 was a beauty. Pity I didn’t pick it up until after 6.45. Any chance of a private phone call next time?!!
lct
Thanks.
wheres BCW?
HAIL! HAIL!
Token
Folks the quiz will be a bit later at just after 9:30. BCW has been delayed. On his journey, due to alcohol related issues.
how bloody inconsiderate BCW!!
Watchin SCHALKE V HERTHA and thers not a seat to be had!! What are we doing wrong???
jude2005 is Neil Lennon \o/
I thought they stood in League games
Love
Jude,
not serving beers at the game…..
HAIL! HAIL!
Token
big-cup-winners
21:00 on 28 March, 2014
Folks the quiz will be a bit later at just after 9:30. BCW has been delayed. On his journey, due to alcohol related issues.
I have nearly missed half my life due to alcohol related issues. It’s happens to us all.
SoberatthebestbitsCSC
jude2005 is neil lennon \o/
21:03 on 28 March, 2014
Watchin SCHALKE V HERTHA and thers not a seat to be had!! What are we doing wrong???
Charging a fecking fortune and not getting mega tv money.
Robert Plant on BBC 4
Jude
Twenty six to twenty nine quid a ticket, compared to ten to fifteen pounds in Bundeslige
Token
Duty calls was on a night out with a fellow (infrequent) CQNer
jude2005 is Neil Lennon \o/
Playing in Scotland which is run by an administration that has the wellbeing of only one club on its agenda.
I know many who have chucked it because of cheating and rule changing to accomodate them,
Add the fans of all clubs together who have decided that their hard earned cash can be better used elsewhere because of no other reason than the weak actions of the SFA and I would think they would total thousands.
BB
Thanks for the RP heads up. :)
BIG-CUP-WINNERS
21:00 on
28 March, 2014
Folks the quiz will be a bit later at just after 9:30. BCW has been delayed. On his journey, due to alcohol related issues.
—
This could be good :))
Thank you for your efforts BCW