Before you start on the subject of the breaking news at the top of the page, we have a VERY important message lower down the page, so make sure you read the whole blog!
Since Rangers first went into administration on St Valentine’s Day 2012 those seeking to phoenix the club have kept their eyes on the critical item – ownership of Ibrox Stadium. Ultimately it doesn’t really matter who owns intellectual property like the badge or crest design or domain name, if you own Ibrox, you decide who can play football in your stadium, or not, as the case may be.
With wages day approaching, and with creditors having taken recovery steps earlier this month, Rangers International are in urgent need of cash to stave off an insolvency event. Two groups of potential new investors have failed to come up with the cash necessary to secure control of the club, and the SFA stopped the club from issuing more shares to Mike Ashley, so, as many predicted, Ashley has lodged papers to gain security over Ibrox and Murray Park. A loan from the affable cockney now seems the club’s only viable option.
The first thing to point out is that this security does not mean Ashley will acquire Ibrox, such an eventuality would only happen if newco Rangers failed to adhere to the terms of any loan secured against it, or both parties agreed to forgive the loan in return for Ibrox being passed to Ashley, with a tenancy agreement being struck.
CQN reported Heads of Terms drawn up in 2012 for the sale of Ibrox and Murray Park, with the leaseback of Ibrox at a rate of £5.4m a year. It’s worth refreshing some of the options which could be on the table.
An annual rent of £5.4m is a bit steep in return for the estimated £10m-or-so cash necessary to finish the season, but newco may consider living month-to-month like this is unsatisfactory and instead take the opportunity to borrow enough money to see them through the next 18 months, a figure well north of £20m.
With no Hearts (and possibly Hibs) to compete against next season, newco would have an excellent chance of promotion into top-flight football for season 2016-17, with commensurate access to additional revenues. They would have to pay rent, and learn to survive without profitable merchandising revenue streams, which have already been sold-off, but at least there is a chance they could muster a football budget almost double the size of that oldco had in 1876, their fourth year of business.
Remember what we covered a few weeks ago. A football club is actually a collection of businesses: merchandising, hospitality, publishing, broadcasting, advertising, property rental, and football. In business terms, the ‘football’ part is rubbish. It always loses money and attracts incessant complaints from fans, who are both necessary to keep the venture afloat but always want to see budgets expanded to allow them to live vicariously by reaching whatever ‘next level’ floats their boat.
Merchandising and advertising are hugely profitable, publishing and broadcasting less so, while hospitality is hugely dependent on the vagaries of sporting fortune. Ashley has merchandising, stadium and possibly shirt advertising. If he picks up stadium rental income, newco have reached the logical conclusion of where a distressed club ends up- someone will come in and strip away all the profitable revenue streams, leaving some other mug to take flak from fans.
This is the template, more clubs will follow.
Tickets go on sale TODAY for CQN 11, our St Patrick’s Day Dinner event, which this year celebrates the 50Years since Stein, the 50th anniversary of Jock Stein becoming Celtic manager will occur a few days before the event, which takes place in the Kerrydale Suite on Friday 13 March.
Last year, CQteN raised enough money to build three school kitchens in Malawi for Mary’s Meals. It was a stunning achievement, attendance at the schools has increased by over 30% since the kitchens were built, over 2000 kids are being fed each day, often their only meal of the day. We’ve told Mary’s Meals we’re going to fund another school kitchen this year, and they have asked us to build at Chibwata Primary School, which has 909 pupils, without any kitchen facility. The UN regard Malawi as the 17th poorest country in the world, but it is making progress and is fertile territory for targeted aid like this.
We’re going to change the mix from last year but as well as your dinner, there will still be a dance with great singers, you will hear from some former players, and Jock’s biographer, Archie Macpherson, will say a few words on the man.
You can book individual tickets or tables on CQNBookstore (at the bottom of the page). Any problems, let me know, celticquicknews@gmail.com
It will be another fantastic event, look forward to seeing you there.
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!!bada bing!!
12:44 on 15 January, 2015
We definitely need players out. Too many collecting large salaries and contributing little/nothing. They also hinder our own young players getting a chance.
As well as those already loaned out, Boerrigter, Tonev, Wakaso, Kayal are four who’s departure wouldn’t affect the team at all.
Monaghan
“for months now I’ve refused to let McGill’s buses pull out from stops and I sometimes drive really slowly in front of them until I can see the driver’s face starting to fume in my mirror.”
——
“Disrupt a match by continually throwing bog rolls etc on the pitch at points during a game.”
———
Shoooorlee you made the last 2 up???!!!
;-)
MickTT my Bhoy!
Hail Hail to you!
Jamesgang
Mick TT said:
“Full breakfast please, oh and a pint sir.”
Ah, so there is a podium prize after all 0:-)
Cheerio for now from a Doldrum Free Arbroath.
JJ
Quadbhoy –
Before security can be granted to Ashley, it has to be proved that the issuer – Newco -owns the stadium. This is done by Ashley’s lawyers performing a search to see if any other party has a claim on the stadium.
So yes, if Newco does not own the stadium, the loan will not go ahead.
folly folly
12:42 on 15 January, 2015
Good grief!
I don’t think I can remember seeing such a scramble for the podium: 10 posters all timed at 12:33.
That must be some kind of record …
FF
₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩
Funny, have a picture in my head of nine scrambling exactly like me, am in, am in oh oh oh…
HH
” O’ Bommur, Wherefore Art Thou?”
Just back from the ticket office.
Waited an hour, North stand sold out hrs ago.
East stand it is then.
I personally would be very happy with no new faces in January. Our squad is already too big, with little opportunity to blood our youngsters as it is. Are we seriously saying our current squad doesn’t have enough ability, strength in depth to beat Aberdeen?
Let’s see what our coaching team are made of, their job is to improve individual players, put square pegs in square holes and develop a cohesive way of playing appropriate to our opponents.
If an offer comes in for a fringe player then take it, any buys should be on a pre contract for arrival in the summer avoiding our normal ineffective transfer dealings ahead of a CL qualifier.
GMS fits the bill and we need a centre back to replace VVD who will be gone.
Bankiebhoy1 –
Wherefore means why.
:-)
On a quick lunch break but will struggle to return to work as my sides are sore laughing at the McGill’s bus and bog roll comments.
ComedyGoldCSC
CQN11 sounds like a plan HH
Qaudbhoy ..saw on twitter the contingent liability doest stop you from borrowing against the assets..just makes it more risky..i think a deals been done between M A and h who ever owns ibrokes….the whole thing also means nobody else like the three muppets can offer sevco a secured loan..theres nothing left to secure it to…i.think…
50 Shades –
I went online yesterday and North Stand was already sold out.
I took East Stand row AAA. I presume that is way up high.
…and while I’m on
250k get it paid. This boy has an end product. We’ve wasted more on hotel bills putting up a string of dud loan signings.
HH
Cheers Tom,
For clarity if they own it on paper BUT this is contested (e.g. by Craig Whyte) – then security can still be granted, and the risk lies with the person taking out security on it?
If they defaulted on the loan, the claim on the assets from Craig Whyte would still be valid, but the new ‘owner’ would have to defend the action or settle with Craig Whyte?
QB
Roy C
You on the decks @ cqn11?
Ibiza? Who needs it!
HH jamesgang
BGX,
Cheers!
QB
Sloleybhoy – the issue is not beating Aberdeen, it accruing more points them between now and the end of the season.
Aberdeen are on a very consistent run and have less distractions than us – cups etc.
We will be playing 2 games a week so need strength in depth.
I was, until the last 2 weeks, unflinching in my confidence that we would win the league.
Now I am nervous.
Surprised that nobody on FF has made the ultimate threat – that they will boycott Sports Direct totally and do their shoplifting elsewhere…
Quadbhoy –
I assume Newco does own Ibrox. CW is disputing that, but until he can prove it in court, Ashley can give Newco a loan secured on the stadium. The only stumbling block would be where the legal search unveils a different owner to the one issuing the security.
gary67
12:40 on 15 January, 2015
Rumours, rumours, rumours …….. Usual nonsense from the meeja …let’s wait and see
Interesting that we’re being linked with the young Dutch CB. Could be paper talk but if not it has ‘bye bye Virgil written all over it.
I long for the days when we used to build a team round important players. Mow we dismantle them before the cement’s even dry.
Seats in the East Stand row AAA of Hampden Park are located on the dormer roof of number 137 Montford Avenue.
Tim Malone Will Tell
Nice!
tim malone will tell
13:05 on 15 January, 2015
Hahahaha
BBC saying £10 million loan on the table from big Mike…
BGX
13:09 on
15 January, 2015
BBC saying £10 million loan on the table from big Mike…
might get them to Fair Friday……….;]
TOM
I think we were CCC the year we spent at HAMPDEN
Lets just say Handy for the toilets
My mate took ROW E. Handy for the kids in the group
to read the personalisation on players boots not much else.
HAMPDUMP I HATE YOU
Tom McLaughlin at 13:00 on 15 January, 2015 wrote –
I took East Stand row AAA. I presume that is way up high.
__________________________
Not so much high as far back. You’re about 60 yeards behind the Celtic goal and almost 200 yards from the one at the other end ;-_)
bankiebhoy1
12:49 on 15 January, 2015
Hell slap it intae thum!
Every time Karma hit them a slap in the snout ,that what I say :)))))))
guernica
10:13 on
15 January, 2015
Turkeybhoy – what if the boy from Alkmaar would rather sign for Lazio?
We can’t just say ‘he’s good, I’ll take him’. Not meaning to be a nippy sweetie but I think some folk think it’s Football Manager we are playing!
I was only using him as an example.We already let the Ajax CH go without a bid.There are CHs out there.I think VVD is our best CH in years.No good if he is not here in July.
The Land Registry is backed by a government guarantee that may be relied upon by contracting parties.
If there is a competing claim over rights (and such has been mooted but not actioned) it is for the court to determine who has title. Compensation is then due to anyone who relied upon the information contained in the Register.
Makes it complicated, but if a security was granted on such a property, there is some comfort in the guarantee.
Tm
I’m guessing it’s 53 rows back. …
Perhaps mentioned on previous blog but Metro carrying a page saying the Old Firm are no more.
Looks like a letter from a supporter. Short but accurate.
Zybszek
Thank you for your earlier reply sir.
Zbyszek
Thanks.I will see your reponse tomorrow morning.
I am curious re why a seemingly very good player cant get a game for a poor Bosnia team.
G67- I think Thompson at DU might lift the phone near end of Window,100k is better than nothing.
I sat in row BBB for the league cup semi final when we beat oldco 3-1 and Henke chipped Klos – Again :)
2nd row from the back so handy for a sharp exit but like any seats behind the goal at Hampdump not the best view!
Livibhoy – 4 of us looking for seats on your Dad’s bus for the first ever match against The Rangers, me Darrel, Ciaran and Dougie M if that’s ok?
For those that missed it earlier:))))))
Hamiltontim
07:19 on 15 January, 2015
The letter from the Metro.
https://twitter.com/spotthedog67/status/555622676778463232