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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Auldheid–letter from the Metro.https://twitter.com/spotthedog67/status/555622676778463232
Quadbhoy
Mike isn’t daft. He’ll make sure the contract is watertight.
leftclicktic-beaten by a click..:)
guernica
I think we will win this league by a minimum of 10 points, with the current squad.
January buys are notoriously inneffective, we need someone who could hit the ground running, they are very rarely available at any kind of value.
Lustig and Deanyer back, we have a very strong squad with 2 options for every position, at least in the SPL.
Bada Bing ….fair friday..doubt it…that mob go through money like its their job…..
jamesgang
would love it :))
need to go
HH
Lefty…………
Every, single blessed time!
:)
HH.
Geordie Munro
10:16 on
15 January, 2015
“I really cant for the life of me see why we are not doing this.”
Turkeybhoy,
1, cos he’s our best centre half.
2, cos we have a PILE of important games coming up in Feb after the window closes.
3 cos I like him.
4, value will be much less.
In that order :)
I love the guy as well.Best I have seen in years.All our efforts should be on the qualifiers in August.He might not be with us then.We would be scrambling around at the last minute.We have all seen how that has worked out before.If we could keep him for another season,would be great,but,not likely.
I said earlier,we let one good CH from Ajax go without a bid,I would hate to see another go.
Watch this space in August,and tell me if I was wrong.
Can’t imagine many of the bears wearing “Official” replica kits next season. Easiest way to hurt Ashley is not buy anything from him.
Tom McLaughlin
12:53 on
15 January, 2015
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.
————————————————————————————————————
You are correct, Tom – this step should give, at long last, clarity on ‘who owns the assets’.
Bomber Brown will no doubt appear at the door of Ibrox again and who knows, an encore from ‘Boss Hogg’ in Edmiston Drive ” the big hoose must stay open – and not as a Sports Direct Super Store’
Strange that only yesterday we saw the collapse of Scotland’s answer to Robert Maxwell, David Murray, his labyrinth of debt-ridden companies finally being put out of their misery – of course the only people to suffer are the workers and their pensions.
It is fitting then the ‘end game’ is in process of the jewel of Murray’s empire, Ibrox – of course the previous residents have already been liquidated.
All hell is about to break loose – will we now being seeing a new club launched by the fans, resplendent in red and black – FC Rangers of Govan?
!!Bada Bing!!
Was in my local newsagents half an hour ago discussing Sevco and Ashleys moves earlier, when the fella next to us piped up that a family friend phoned him last night and said the naming rights to the stadium had been signed and sealed last night with the relevant people.
My friends in Celtic,
Yet another article about events over at Greyskull. Once more totally justified due to the interest this on-going circus generates.
I cannot second guess what happens next, but regards Mike Ashley’s move today, I am at a loss to why he previously game up the naming rights for a place he now seems to want as security for yet another loan.
Regards a pre contract deal for GMS again I am at a loss. It may be beneficial and win / win for Celtic but as far as Dundee Utd are concerned surely there must be a conflict of interest. I do not doubt the players integrity for a second, but human nature would suggest he would prefer to play in the CL next season and this could unintentionally have a bearing on his performances for the rest of the season.
Again with respect to all, I reiterate, calling posters huns, trolls etc. is lazy posting. Akin to lazy journalism. A healthy vibrant blog must have differing opinions. Argue and demolish the posters view if necessary with intelligence and wit.
HH.
We will win the league but the way its looking, and even more so if we get one more postponement and/or don’t beat Aberdeen, we may win the league without actually having topped the table that often during the season…bearing in mind it was November before we really took the top spot this season.
Interesting times.
HH
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.”
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
They must be quaking in their boots at that…
Check out @Dedge77’s Tweet:
https://twitter.com/Dedge77/status/555708644286009344?s=09
Might be a link to Metro letter.
!!bada bing!!
13:18 on 15 January, 2015
Maybe, but the prize money difference between finishing 3rd and 5th is £270k so maybe keeping him would be a better option for them.
Drowning man offered expensive lifebelt…………………….all strings attached.
Chic talking about “cash injections” yet?
;)
I see Liam Miller has signed for Cork City
U coulda been a contender son
Tin hat on.
Would it really be such a disaster for Aberdeen to win the league ?
Yes – we would miss out on CL football but as things stand, I don’t think we’ll get through the qualifiers anyway.
It would really revitalise Scottish football and give teams like Dundee Utd and Hearts encouragement.
Bada Bing
Cheers. Wonder how much it cost. Lol.
Battered Bunnet.
That would explain why someone would loan more money than the assets sold for pre liability…
So the tax payers would get shafted again if CW did have a valid claim? MA would get his money back and CW would get Ibrox?
Sounds like the system is open to abuse…
QB
paul67
no big deal but Ashley is from Buckinghamshire, about thirty miles from the east end’s bow bells. he might the affable but he’s no cockney
DeniaBhoy
13:24 on 15 January, 2015
Can’t imagine many of the bears wearing “Official” replica kits next season. Easiest way to hurt Ashley is not buy anything from him.
He has a contact that guarantees him 4>5 million in shirt sales even if the orcs dont buy one top(allegedly)
Onerous R US
PeteTheBeat
Aberdeen, Dundee Utd and Hearts already have encouragement, demonstrated by the increase in attendances at those clubs.
We don’t need to give them any more;)
HH
Just reading back….
Monaghan
Lol lol lol lol lol lol ah jeez cant stop laughin hi….
seriously im delirious here!!!
B-)
Paul 67 –
“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.”
You are clearly a glass half-full man…
If only those angry fans could see that there might be less bother at the LC semi-final.
On Wednesday a United spokesman told BBC Scotland: “We do not need to sell him and if anyone wants him at this stage they will have to put up or shut up.”
—-
You’d think they’d be a bit less confrontational, they’re not exactly in the best bargaining position given the guy can walk for nothing in a few months!
Taking 150k and putting it towards a replacement would be their best move now – whatever happens they won’t have Mackay-Steven in the summer.
HH
liam miller moves to cork city
wonder if he ever regrets leaving the tic
http://www.independent.ie/sport/soccer/league-of-ireland/former-man-united-and-celtic-midfielder-liam-miller-joins-cork-city-30910214.html
glendalystonsils
13:07 on
15 January, 2015
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.
—————
It’s impossible. The players hold all the cards. When a player has fewer than 2 years left on his contract his value will start to diminish. Any player that signs for Celtic, particularly a foreign player, will be using us as a stepping stone to the English premiership. The idea that players would rather win trophies in a football backwater than fight relegation in England is fanciful. They get substantially more money in England, with exposure to a bigger audience, which if they perform in, leads to even greater financial rewards.
Compare this to playing at a half empty Celtic park, devoid of atmosphere, with an expectant crowd more likely to turn on the team than support it. Getting through the CL qualifiers is historically a 50/50 proposition.
Southampton can’t hold onto their players, Swansea just sold their star striker this week. Liverpool couldn’t hold onto Suarez, Spurs lost Bale / Modric, United sold Ronaldo.
We are akin to top Championship clubs in the food chain. I don’t know how we reverse that decline. Packed crowds with a great atmosphere would improve the match day experience for players and of course provide more money for higher salaries. A competitive league brings an edge to games, but look how many on here have thrown the toys out the pram because Aberdeen have the temerity to raise their level and provide a challenge.
We are just trying to hang in there and remain relevant, until a time comes when the Scottish game sorts itself out, big clubs from smaller nations form something like an Atlantic league, or a European super league is formed. None of them is imminent, the most likely is the Scottish league, with debt free clubs like Aberdeen, United, Hearts, Hibs well managed and producing their own players, eventually Sevco will enter the mix, though forced to live within their ever diminishing means.
That’s the reality people have to understand.
Tom
Row AAA ( the battery row ).
I went for QQ about Halfway up or down depending on your philosophy .
The boy behind the counter said would you like PP . After waiting an hour in the bloody cold I was bursting for a PP. :-)
Sloleybhoy-Agree with most of what you said,but we have struggled at times against the parked buses in the league,maybe GMS could be very useful .As i’ve said,i think he will sign for an “undisclosed fee” before Window slams shut…
JonnyRambo67 : ‘ A competitive league brings an edge to games, but look how many on here have thrown the toys out the pram because Aberdeen have the temerity to raise their level and provide a challenge.’
======================================
Some may have thrown the toys out the pram alright but if it continues to be tight CP will be busier as the run in to the end of the season continues.
HH
The Louden Tavern
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Demonstration outside Ibrox: Rangers v Raith Rovers Sunday 8th February (Scottish Cup)
We are looking at a demonstration outside Ibrox for Sunday 8th February prior to the home match against Raith Rovers in the Scottish Cup.
The reasons for this are that we feel that today’s news of using Ibrox as security is a watershed moment. This is where a line in the sand must be drawn. We would hope that all supporters and supporters group could agree with the sentiment behind this and would give their support and endorsement to it.
This is not about boycotts, dividing the support, or anything other than an act to show how important Ibrox is to Rangers and our support. The demonstration is specifically about using Ibrox as security for a loan funding for anyone. We feel Ibrox should be asset locked away for the supporters.
We are holding a meeting on Monday night to discuss this and if you want to attend (as a representative for an organisation, supporters club, or as an individual) then please contact us at info@thelouden.co.uk or message us.
This is a positive action to show how much we care. We all love our club – lets show it.
The Louden Tavern
Nothing like immediate action,and this is nothing like immediate action.FFS,the 8th of February!!!!!!!!.There could be a Safeway there by then.
They never cease to amuse.
Paul67 – 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.
http://media20.giphy.com/media/yO24rwRksHuqk/giphy.gif?w=320 (thumbsup)
a PP3 battery then….?
scottishleaf
Don;t see it being a problem mate. Better give him a bell. he is away to Galway that weekend for a stag weekend. Tommy D’s.
LB
Turkeybhoy,
Normally I’d say get rid of Vvd and bed in for the qualifiers but still being in the 4 comps mean we need all the good players we can get.
He’ll be away in the summer unfortunately. He barely tries to hide his intentions.
JonnyRambo67
Meant to say too, that if, as you suggest, the Aberdeens, Dundee Utds, Hearts and Hibs do start to realise their potential then we have a more than decent product in Scottish football, as those clubs have the support but suffered as much as us when it came to the huns overspending.
HH