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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Mr Whyte you now own 100%
Mr Green you now own 50%
Mr Ashley you now own 30%
Mr King you now own 20%
Mr Easdale you now own 35%
Mr Park you now own 40%
NoWayOut CSC
U
:-)
“Naw, keep’em. There ye are! And I’ll be back the morra!”
Greenpinata
16:47
Definitely not sharing home gates. That is where we gain our advantage, Aberdeen’s advantage over Inverness and so on. We also have a bigger operation to run. But I would advocate splitting the Tv money, and sponsorship money -when we get one- equally between the clubs.
Hamiltontim
16:43 on
15 January, 2015
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.
————
a) I always have a few teams I’d like to see win ‘something’. ie the cup. a cup. Dun Utd cos I like how they operate, Hibs cos they haven’t won the Scottish Cup since 1314 or something and Mrs Livighirl would smile, St J cos they’d never won anything before…….
…….but ONLY after we’ve been knocked out……before then I’d scratch their eyes out to win the lot…….including tiddlywinks!
b) The NFL ‘worst team gets 1st pick’ system only works cos they have the draft system. And that only works cos they have the enormous, productive production line of talent that is their college system. Football has never worked that way. And I don’t’ think it ever will.
c) Armageddon has coincided with me seeing some pretty decent technical football from lots of teams across Scotland who are fielding a higher % of young Scots than they have for a long time. I like that. I like it a lot.
HH jamesgang
Didn’t see redistribution mentioned GP.
Would be a no from me
kdc
Exactly :-)
Maybe they could mix things up a bit with the protests. Occasionally chucking a toilet roll at a bus or perhaps blocking people from getting out of the Sports Direct changing rooms.
It could all get a bit tasty….
jamesgang
Mrs LB will be down Easter Road in a shot if Hibs ever win that Scottish Cup and you know what I may even join her.
100 years + for a club the size of Hibernian is crazy without a Scottish Cup win.
Like yourself though when we meet them in the final I want them smashed to pieces and so does LB jr.
LB
The only way i would trade off a % of gate money,is if we had our own separate TV deal.
Tim
Pick’n’mix protests
Like your thinking kimosabi
kdc
16:49 on
15 January, 2015
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
========
The finances/facilities to compete and attract players to compete at the top level in Scotland.
I agree the ground criteria of 10k seats was unfair(it did save Aberdeen at one point if I remember correctly?!).
But 20 teams is too big a jump, I would test the water with a 14 team top flight intially.
HH
There’s always one daftie that’ll catch a mcgills bus down to SD buy a new ‘tap’ and forget his bog roll
jamesgang: ‘b) The NFL ‘worst team gets 1st pick’ system only works cos they have the draft system. And that only works cos they have the enormous, productive production line of talent that is their college system. Football has never worked that way. And I don’t’ think it ever will.’
==================
Haud on Van Dijk, yer off tae Ross County, tell Wenger where tae go:)
HH
LB
Mibbee best you stay at my place that night if we do hammer them…….
If/when they ever win, I might join you in Leith with my Proclaimers specs on!
HH jamesgang
traditionalist88
Still leaves the four games against teams problem for me. Really do believe it’s one of the major problems in the set up. (Often a cup game or two, 6 games a season against some)
Yer right about Aberdeen I think, was it morton that were refused?
livibhoy
I’ve been saying the same thing. Surely if we were taking a break in the sun with the purpose of trying out new systems, tactics or formations (did that actually happen in any case?) then Ronny’s identified targets should have been over there with the squad.
I’m hoping that the manager has identified players that he believes will improve the team. If he hasn’t then God help us!
Assuming he has, what’s the hold up?
I know there are all sort of complexities involved in transfers but as usual we appear to be at the coo’s tail.
traditionalist88
that made me quietly snort…..if such a thing is possible!
rather more seriously in terms of following the NFL franchise approach I saw Jim Spence retweet (albeit slight tongue in cheek) a Newcastle fan’s concern about Mike Ashley buying Sevco and transferring the EPL membership from Newcastle.
Who knows?
I’m sure TBB et al. will keep us right once he’s cleared up all those hunners and thousands he spilled in the pursuit of the perfect metaphor!
Bunnet – over to you Sir!
HH jamesgang
jamesgang
16:54
b) The NFL ‘worst team gets 1st pick’ system only works cos they have the draft system. And that only works cos they have the enormous, productive production line of talent that is their college system. Football has never worked that way. And I don’t’ think it ever will.
————-
I get that. It could only work in Europe if there was a European super league, with a secondary competition feeding into that. Secondary competition gets the best young players, worst teams in the super league get the 1st pick of them. We’re a million billion miles away from anything like that.
What I’m saying is to look at their reasons for doing it, eg to increase competition, and see if we can use find ways to emulate those intentions, rather than the methods used, to benefit our own game.
I used to watch Celtic, EPL, La Liga over a weekend with CL in midweek. Now I barely watch any football other than Celtic. Much rather watch an NFL Sunday, than an English super Sunday, regardless of who is playing.
HT
I know there are all sort of complexities involved in transfers but as usual we appear to be at the coo’s tail.
*********
Koos Tail mate – Bulgarian Under 21 with Bovine ancestry. Knocked us back for a move to Liege.
Hates new 4G pitches apparently. Prefers grass.
Keep us Teach!
HH jamesgang
kdc
17:05 on
15 January, 2015
traditionalist88
Still leaves the four games against teams problem for me. Really do believe it’s one of the major problems in the set up. (Often a cup game or two, 6 games a season against some)
Yer right about Aberdeen I think, was it morton that were refused?
==========
The beauty of it would be, from a Celtic point of view, the sides around you 4 times as it splits after 26 games rather than the pointless 33 game split we currently have. More excitement playing the Aberdeens etc and maybe even a title race.
The bottom 8 you would only play twice.
I think…
HH
KDC
Yeah can’t recall who lost out that year actually, Aberdeen were extremely lucky…
HH
JonnyRambo67
Interesting question ref the draft.
was it/is it to ensure competition. or was it more to do with protected the closed shop that is the franchise system.
perhaps i’m splitting hairs….
the euro super leagues and minor leagues could end up being akin to baseball?
HH jamesgang
Jamesgang
That Ashley, transfer of stuff is nearly right.
jamesgang
17:09 on 15 January, 2015
I know his brother, Cous, he’s pyoor lentil!!! :-)
RD will pick the players John Park gets for him,he got Berget as a token pick.
Jamesgang
That Ashley, transfer of stuff, is nearly right.
I think Falkirk got stiffed for promotion one year, as Brockville was a toilet.
glasstwothirdsfull
16:40 on 15 January, 2015
Bada Bing 16:36
There is no way they would get away with THAT ……. Supporters across Scotland would give up on the game …..I’m sure Regan ? stated that there would definitely be no changes to the leagues this year….
HT
Are you his brother?!?!
Big Cup Winners
Really? interesting….worrying….intriguing if so.
Imagine they left and went to the EPL (or got there eventually)
HH jamesgang
Today’s the day the Teddy Bears get their pitch nicked.
No no its not that transfer that’ll happen :-)
Power has now been restored to the Rosses and Gweedore area after last night’s storm outage.
What have I missed?
bournesouprecipe
16:52 on
15 January, 2015
Mr Whyte you now own 100%
Mr Green you now own 50%
Mr Ashley you now own 30%
Mr King you now own 20%
Mr Easdale you now own 35%
Mr Park you now own 40%
NoWayOut CSC
———————-
Mr Whyte you may go on my first whistle…Mr Green you may go….etc etc
FFin’ anatomy:
“Anybody who supports this board must be brain dead from the neck up”
Gate sharing serves only to average out income. It creates mediocrity.
Clubs with home attendances in the upper half gift income to clubs in the lower half.
The ‘bigger’ clubs become diminished. By ‘bigger’ I mean any club with an average home attendance above around 8000.
Gate sharing serves only to turn Aberdeen in the top half for example, and Hamilton in the bottom half, into St Johnstone and Kilmarnock lookalikes.
What’s the point?
The only meaningful externa income that comes into Scottish football is the now and again Champions League dough. Splitting a proportion of that around the top clubs makes a difference.
Take the Marketing Pool share, £4M odd, which is 20% of the typical fee for the participating ECL club, and would add between 5 and 20% to the income of the other SPFL sides.
That’s meaningful and doesn’t average down standards.
In my view…
Auldheid will tell you that it ameliorates the moral hazard of going for broke on ECL participation too.
In his view…
67heaven- rules are being broken by the huns ,as we type mate.Do you believe Regan and Doncaster re Oldco/Newco/ Sevco? Do you trust them? HH Contingency plans will be in place,remember Hibs’ Petrie is involved too mate HH
Anyone who supports that board must be two toilet rolls short of a direct action
That’s it, after all the experts on here today, I’ve decided it’s CQN for any financial advice.
£250,000 should be paid to Dundee United for their player now! Why wait until the summer and get him for nothing?
Thanks God, it’s not some of you, holding the purse strings at Parkhead.