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.
1,145 Comments- Pages:
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LiviBhoy
Agreed re Hamilton coming up and doing well, but even more so there are a number of clubs with the infrastructure of a top flight team, Raith Rovers, Falkirk, even Dunfermline and Morton, and Ayr Utd have amibitious plans for the future.
A 14 team league would help getting more fans back on side.
HH
The Battered bunnet
Like spilling hundreds and thousand and putting them back in same order.
Great analogy;-)
And a colourful addition to tonights ice cream & jelly.lol.
Funny how last month he gave up naming rIghts last month
http://www.theguardian.com/football/2014/nov/12/mike-ashley-rangers-ibrox-naming-rights
HH
Hamiltontim
Cheers mate. I usually just ramble nonsense but there is sometimes a point to it. I do think that some players get tired of the routine. Certainly fans do at times. It is great when a team like Killie go out the league because there is little atmosphere but then Hearts are certainly a loss for the atmosphere.
The players must get a bit bored playing the same oppenent at least 4 times a season. Just my thoughts anyway. Maybe it is something the CQN magazine guys can ask in their next interview with an ex player.
LB
The Battered Bunnet,
Love the analogy
traditionalist88
16:02 on 15 January, 2015
My feeling is we should think bigger, you’ve just named 5 teams, stick hearts hibs and sevco in there and you’ve got a 20 team top league.
Dundee utd coming once to celtic Park becomes an occasion, Aberdeen hearts hibs, geez even hamilton dumfermline etc becomes an occasion as you get to see something different. Would massively squeeze the league at the top as well as the dons utd etc are only in direct competition with us for 6 points in a season.
38 games keeps gates up and income rolling in
kdc
Certainly wouldn’t be against that.
Decent shout.
I think we have to change the product to go to the TV companies when the deal expires to get a better deal.
Going with the same set up will produce a similar deal as the last one.
LB
Hamiltontim
15:54
Jonny, you missed the bit where it would not be a good thing for Aberdeen, or anyone else for that matter, to win the league because we’re Celtic supporters and as such we should always want (note, not expect) to win the league. Or maybe it’s just me?!
—————
I want to win the league this year. Undoubtedly. But I think you have to look at the bigger picture. Celtic winning the league by 30 points every season isn’t good for the league, ergo long term it isn’t good for us.
Don’t know if you pay any attention to American sports. Whether you like the NFL or not, they have it bang on in terms of increasing competition. 2 of the best players in the league are likely to be available as free agents this off season. There more likely to go to the worst teams in the league than the top ones, as the worst teams generally can offer more money, as they don’t have many stars. This is in addition to the best players coming out of college already going to the worst teams via the draft.
For comparison, take the English premiership in isolation. Say Man Utd and Chelsea are right at the salary cap,and can’t afford to keep Rooney and Fabregas. These players then sign on at Burnley and Crystal Palace. Burnley and Palace then get to their pick of the best young players coming through, say Raheem Sterling and Martin Odegaard. These teams then have the foundations in place to build a team capable of competing. You keep the league competitive, their fans have hope of winning a title, interest is at a premium which keeps the stadiums full and TV money rolling in. As a result the game continues to grow exponentially(there will be a London team within a decade).
Now a lot of what works in the NFL wouldn’t work in soccer, but the essence of what they do, making the league competitive, giving all the teams a level playing field and just giving the fans the hope that they can win, is what we should be trying to emulate in whatever way we can.
People on here said they were glad we didn’t make the CL as we would have been humped. What about the other SPL teams when we were dishing out 5 nil wins every week. Why would they turn up? What incentive is there? If they continually get weaker while we get stronger, there is no competition and ultimately we suffer.
It’s a hard thing to balance out when we need CL money to hang onto the coat tails of English teams, but finding ways to do it is so important to us in the long term. Bringing forward the league season to help in clubs in Europe would be a start. Equal distribution of all Tv and sponsorship money would be another.
kdc
16:11 on
15 January, 2015
Too many games, UEFA would be miffed, 18 teams would fit better
Too many games?
We play 38 just now
Mike Ashley will sooner rather than later
Will own Sevco
.
kdc
16:21 on
15 January, 2015
Too many games?
We play 38 just now
I didn’t really think that one through :-) Back of my head I had UEFA trying to get everyone down to 34, must have been dreaming that part
This is the year to get the change. Sfa spfl would be ‘receptive’ to more teams moving up…..
I doubted myself for a minute there mate, got the abacus out
Rehashed MASH Cash Backlash at Sash Bash Clash
kdc
16:26 on
15 January, 2015
Just ignore the idiot posting under my name
Lower leagues in South Britain are 46 games!
sid
14:21 on 15 January, 2015
FFS
Seen it all now on CQN, it may not be a bad thing to lose the league.
We won’t qualify for CL anyway.
I despair, the apathy on this site is incredible.
I’ve also seen 20, 15, 10 points margins of winning the league.
WAKEY, WAKEY, we have got a title fight on our hands, they margins are arrogant, complacency will be our downfall.
Make no mistake, losing the league, will be the biggest on field disaster ever, bigger than Raith Rovers, Ross County and Morton put together.
Sid, you are right, we have to make the league title our priority, as well as not taking it for granted the cup tie against the Huns as every obstacle possible will be put in our way. Celtic players should do their talking on the park. It is also embarrassing that we cannot pay 250k upfront for a very promising player.
COYBIG
Are we advocating league reconstruction in case a newco need hawners ? Hope not…
kdc
16:29 on
15 January, 2015
Lower leagues in South Britain are 46 games!
But they don’t play in Europe, I had a vague memory of UEFA trying to get the top divisions down to 34 games to allow more time for Champions League etc, but I think England might have objected to it
West end
Naw, advocating league change because playing teams 4 times a year is killing the game imo.
Would you stake any hard earned on them being around to see a reconstruction? I wouldn’t
west end of east end-i’ve been boring guys with that one on here for over a year.Listen to Doncaster and Lawwell’s statements,they will be gerrymandered into a top league,if they don’t win the play offs IMO.Well prepared to be shot down again,but i cannot see Sevco in the Championship again next year.HH
M7
I was thinking of our lower league of 22, that would be 42 games
Would need a workable pyramid under the 22
Late Run on CO-OP toilet roll specials as Bears Fans rally to ‘disrupt game’ using the ancient ‘toilet roll technique’
Fans unable to make game are requested to harangue McGills coach drivers throughout renfrew until they’re fuming or perplexed.
U
muscat_bhoy1264
16:09 on 15 January, 2015
The Battered Bunnet,
Love the analogy
—————
Jeez, thank god for the ogy!!!
U
I just got over reading that earlier, I’m away again
Bada Bing 16:36
I fear you might be correct, sadly.
Just a wee thought I have had.
We are speaking to Kris Commons and have been for months and we are getting closer?
Surely we put an offer down they put down a counter offer and then a decision is made? This dragging on for months makes us look cheap and unproffessional. This business should have been concluded months ago.
LB
Hordes of them trying things on in SD , but, no buying them!
There ye are!
Jonny
I’m not averse to competition. I quite like the fact that in the past month I’ve taken to looking at the SPFL league table again, something I’ve not done in the past 3 years simply because there was no need.
Nowhere did I advocate that us winning the title by 30 points every year would be a good thing, it wouldn’t. Currently Celtic are the only team in the league who can afford to sign a player, that’s a shocking indictment on the state of our game.
I don’t know anything really about American sports but I’m not convinced that your points would be workable under our current model.
A degree of competition is a good thing but to get back to my point. I don’t want the competition to be at a level where some other club wins the league.
Lb
Know where you’re coming from, and hate the last minute transfer windrow keech as well, but, no many in business will give up a negotiation or terminate where there’s not a deadline forcing them to
kdc
Interesting but you know as well as I do that football doesnt always work that way.
I named a few teams with the infrastructure required but thats not to say these teams will necessarily gravitate to the top division. Even at the moment we have clubs in the lower leagues with better infrastructure such as Dunfermline, Morton whose ground holds over 10k – so if the league is too big there is a danger of clubs making their way up too quickly for them, unable to cope with the demands of the top flight.
I think a 14 team top league is the way to go initially as it tackles the sameness of going to the same grounds all the time for fans AND players.
If a 14 team top flight benefits Sevco this year then I’d hold off, naturally:) There will be a marked imrpovement when Hearts return and hopefully Hibs do so too this season at the expense of Ross County( nothing personal but their transfer strategy is shambolic and not befitting of a top flight club and an example of a club getting too much, too soon.)
HH
HT
just enough competition, no too much
:)
kdc
Asst – Can I help you sir?
‘Punter’ – ‘Aye, ah’d like tae try own these joggie boattums.’
Asst – Okay, this way sir.
4 mins later
Asst – How were they for you size wise Sir?
‘Punter’ – ‘Aye, perfect doll.’
Asst – Great, will I take them up to the till for you?
‘Punter’ – ‘Naw! Cos ah’m no buying them ya daftie! No Surrender!’
Asst – Okay Sir, Thanks. See you later.
‘Punter’ – ‘No Surrender!’
My friends in Celtic,
Competition is good, but only true competition not artificial competition where we downsize to create a more equal playing field.
As for league reconstruction, it is definitely worth debating, and I would imagine it will be music to Doncaster’s ears.
As for redistribution of wealth, if this means sharing home gates then forget it. Many of us pay for ST’s in the knowledge that we will miss many games. We purchase ST’s as we are “faithful through and through” and we are aware that for Celtic to prosper they need the money upfront.
The thought of any split in home gates would result in a terminal loss in ST holders. I for one would not put my “hard earned” into any other club.
I hope I have got the wrong end of the stick.
HH.
Hamiltontim
Did you not think it was crazy for Ronny to be in the job 6 months and not have any targets identified in that time that when the window opened Celtic weren;t able to secure them before the trip to the Canaries?
I found that utterly bizarre. If Celtic want GMS then I hope we pay the £250k for the lad before the weekend or have someone lined up in the mean time.
If the Willo Flood window taught us nothing it is that it is not fair on the player to be linked with a club and then play them in a vital match. I felt Willo’s time at Celtic was doomed to failure from that penalty shoot out when the guy had to take a penalty against the team who wanted to sign him.
Celtic would have looked terrible if they then pulled out after unsettling him. GMS should not be allowed to drag on. We either have him on a pre-contract and will take him in the summer or we want to sign him now and get it done by the weekend. £250k is pocket change. Not even half the gate money from the Inter match. I don’t get why we are dragging our feet IF indeed the stories regarding Celtic and GMS are true.
LB
Kris Commons could be this Window’s major signing…..
Traditionalist
What demands. The ground criteria farce of recent years was just a 2 finger salute from the spl to the rest. ‘Yer no getting in’
As long as the grounds safe or shouldn’t be an issue