Not all contracts are fulfilled. Usually, the failure is caused by an underperformance, less often, by one party wilfully reneging on their obligations.
Newco’s fans, and other fans, have bought tickets for games at the Ange Coming Home Tour that will not happen, leaving the promoters with an obligation to refund money. Money paid for promotional events has been wasted, as has costs sunk into the setup. Perhaps only the lawyers’ fees were not wasted.
Contracts have been concluded with Celtic, at a sum more than twice as high as Newco’s, agreements are in place with other clubs too. The promoters need to fulfil those contracts – in Celtic’s case, the deal is not dependent on Newco attending. Celtic contracted to play the tournament without mention of any other club. The promoters have a £6m liability to Celtic and doubtlessly a few million to other clubs, venues and elsewhere.
If you detect some frustration from the promoters in response to Newco’s unilateral withdrawal from the Ange tour, it is not difficult to imagine why. They will now attempt to line-up an alternative attendee that allows them to sell the tickets and the TV rights necessary to keep the project afloat.
Now that other clubs know Celtic bid the price up to £6m, the promoters are unlikely to find a suitable draw who are as disparate as Newco and to accept the first offer of £2.5m. Any substitute club capable of selling the required volume of tickets will demand parity with Celtic. That’s a bitter £3.5m pill to swallow.
I expect they are looking at a £10m liability if the project fails to go ahead. The costs of starting again with another club are likely to be £5m more than the promoters initially budgeted. These tours always carry a commercial risk for the promoters, but no one ever makes this kind of money. The project is underwater.
Today the promoters will be running various scenarios. I expect they will try to get a big English club to step in. Either way, they will tally up the costs and get the lawyers on the phone. The £2.5m fee Newco will not now collect, is only the first phase of their exposure.
Newco made a mistake in signing the initial contract. Without wanting to be petty here, they are a newer corporate structure than Celtic, with less experience and expertise. They cannot be expected to be as accomplished as more experienced clubs.
Neither sets of fans wanted the game, but in bowing the pressure, Newco exposed themselves to far greater risks. Sometimes you need to take an unpopular stance for the good of the club, even if you were the one who made the initial mistake. Fans never say, “Indulge our demands and expose the club to a £10m liability that could do longterm harm to our strategic aims”, but scenarios like this are played out by angry mobs everywhere.
Despite the unpopularity of the game, Celtic had an easy decision to make. We still do not know if we will get Champions League money next season, but the Ange Tour money will cover the fee being asked for, for one of our top signing priorities. As I mentioned, sometimes you need to take an unpopular stance for the good of the club. Insert our own “Indulge our demands… strategic aims” quote here.
Newco apparently briefed that one of their objections to the tour was that the phrase “Old Firm” would not be used. I know this subject has been covered at several AGMs, on here and other places many times – but some people live to wind up Celtic fans. Through copywrite, Celtic and Newco have a legal veto over the commercialisation of the phase “Old Firm”.
If you have any connection to football, you know this is because Celtic moved to kill the phrase in any commercial sense. If, when this tour was announced, you used this copywrite to claim the exact opposite, that Celtic cherish that phrase and status, you need to take a good look at yourself in the mirror. What are you trying to do to Celtic fans, what are you trying to do to the club?
For the watching CSC.
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2 more sleeps.
HH!
Shoots
Misses, thankfully we are 3-0 up already….😉
Great goal Aipple…….
DAVID66
Sorry mate wont make it today.Have fun and tell Big Jimmy i was asking for him and il deef catch up with yous soon.
Hail hail brothers😉😉😉
Lets do this mob😠😠
AN TEARMANN on 1ST APRIL 2022 11:51 AM
Name Depeche modes first single?
A keyboard player from orig line up played with another 2 bands name them ?
HH
—————
Dreaming of me – I first heard it on Singles 81-85 album, never heard it on the radio in 81
Vince Clarke – Yazoo and Erasure
Interestingly, Vince Clarke and Martin Gore have a side project called VC:MG. A bit more dancey I think – haven’t given it a listen
Renewed ST ; 6% rise
If the tournament doesn’t go ahead, and Celtic don’t get paid, who do they sue?
The organisers?
The huns?
Both of them?
MARTIM1980
I’ve been training for it.
It’s not often I express any Kind of intrest on real fininacal issues they said he/She said stuff .
But I’d be hugely surprised if the rotten mob had any liability at this point it would be almost as daft as some of the Lord Ashley deals . The timeing and bits of information we have had would leave me to think they will walk away with no liability.
It’s only a personal interpretation of what I have heard and read so I could be reading it wrong on the other hand I would almost die laughing if any money they earned from Europe this year had been washed away by this .
I find it hard to believe they would be so stupid
Paul 67
A wee bit of pedantry here.
Sevco are desperate but, despite their equality slogan, not near enough disparate.
To clarify, a group of disparate Celtic supporters from CQN are dropping into a pub to see Big Jimmy today. They are desperate to see him back on CQN as they feel the blog is desperate without that humour.
First single I ever “bought” with my own cash was Depeche Mode – Stripped.
I asked my big brother to buy something else – Madness maybe – when he went into Impulse Records in Hamilton but he came back with the DM one, a band and song I had never heard before, because the shop “didn’t have” the one I was looking for.
As was the time, I ended up loving the song because I didn’t have too many other options to listen to.
Copywrite Paul? Surely that’s not write. That’s rong…
Ernie Lynch at 12.13, I’d hope Celtic will have insured against that eventuality so one way or another the money is guaranteed.
Superb piece Paul Brennan! The Sydney situation explained for us who are less knowledgeable about complex contracts. Thanks!
T
McCargo
Sorry for the delay in responding, I was at the wrong end of a bottle of red. Yes I played for GI, 1995-1998ish. Wonderful memories!
Did you play for the predecessor club- Gregg VC- from St, Gregory’s or just for Jinty’s? Were you in the cup final event where KL’s knee separated?
Pingback: Sydney, Newco and the £10m liability | Celtic FC News Now
Season Ticket 6% rise……….not too x 3 bad.
Cheers Coneybhoy.
I like DM (singles mainly) but have only listened to Violator – though surely must have heard Music for the Masses too.
I’ll give them a listen 👍🏼
AIPPLE on 1ST APRIL 2022 12:16 PM
MARTIM1980
I’ve been training for it.
———
😂🤣 sprints? Gym work? 😉
BOB on 1ST APRIL 2022 12:16 PM
‘But I’d be hugely surprised if the rotten mob had any liability at this point’
###
I have to ask.
Not, are you a hun?
But, are you the huns’ lawyer?
Ahh the famous Ernie you never had a good word ‘re anything I offer so of course I am a hun.
I’d be live the liability more if we had more information real information .
As I said I think you will find they have found a way out … that does not mean I want it to happen
FIELDOFDRAMS on 1ST APRIL 2022 12:20 PM
‘Ernie Lynch at 12.13, I’d hope Celtic will have insured against that eventuality so one way or another the money is guaranteed.’
###
I very much doubt that’s the case, but even it is the insurers would insist Celtic pursue whichever parties they can to recoup the loss.
P67 — absolute crap.
Your moniker should be toenails.
That is all the world can see sticking oot of PL’s erse.
Either that or you don’t agree with the 12pm embargo on made up stories on the 1st of April.
I wish all of PL’s failures had been April Fools jokes — unfortunately they weren’t.
Apparently sevco got nothing up front…..which, guessing they may have been looking for a quick buck to paint over the cracks and i think always planning to withdraw. They are haemorrhaging money and showing signs of desperation, perhaps knowing they are going to admin and won’t all of it back.
What about TRFC’s Engerlish cousins Paul…?
Given Chelski’s precarious fiscal plight, they may be looking for clean revenues in a few months and – with its squad names – could act as a decent draw for crowds hoping to see a Lukaku, Pulisic, Mendy or the like?
Decent global brand too ?
Me? I’d still like the Marinos to come to town so I could see us duff them – and Sydney FC – up.
Slainte to all at the Shipbank.
“We were disappointed to wake up this morning to Rangers FC’s statement that it will not be participating in the Sydney Super Cup,” the promoters said in a statement.
“The Rangers Board committed to these matches following extensive negotiations over eight months. Seemingly in response to negative fan reaction, they have pulled out of their contracted commitment.
“We have worked closely with all stakeholders to bring this exciting event to Sydney, and we refute any suggestion that we were unwilling to fulfill our commitments to Rangers. We have acted in good faith and have put the event on sale with a great response from fans here.
“In changing their minds, the Rangers Board has let down many, many fans in Australia and the Asian region. We will now consult with our stakeholders before determining our response.”
Coneybhoy
You win a beer 🤣(but dam you for taking me back to when I had hair)🤣🤣
Got Dreaming of Me the day it was released around 81 I think.They had a track called photograph which was an innovative electric track for the time 1980,it was on a compilation album called ‘some bizarre which had loads of tracks on it from bands who went onto bigger things.Vince Clarke is a genius with electronica tho i dint listen to much erasure,the track ‘situation’ being a timeless club track I still hear sampled continiously..
HH
It’s hard to escape the conclusion that their Board know they’re goosed financially and no longer worry about the liabilities they generate.
It’s anticipated organisers will seek a replacement team for the Sydney Super Cup – which is also slated to involve A-League teams Sydney FC and Western Sydney Wanderers – to fill in for Rangers and pocket the reported $5.25 million they were to receive for taking part. TEG Live was contacted for further comment.
Groucho
@AllThingsMarx
· 4h
#Groucho: “It’s in every contract. That’s what they call a sanity clause”
#Chico: *Ha ha ha…You can’t fool me! There ain’t no Sanity Clause”
#ANightAtTheOpera
#AprilFoolsDay
An Tearmann
Great memories. Funny how many famous folks knew each other in Essex then. Alison Moyet was a few years below Clarke I think. Simon Gallup of the Cure was cutting about too.
BOB on 1ST APRIL 2022 12:28 PM
‘As I said I think you will find they have found a way out’
###
Given their track record of getting rag dolled in just about every bit of litigation they’ve been involved in why would you think that?
Notice to Dublin based lhads
I was trying to help a friend of a friend get pub tickets for this Sunday in Dublin.
I messed up and booked 2 tickets for the 17th April Cup game.
If anyone wants them – no charge – ask paul for my email (i have them on PDF)
Peader Browne’s pub (5 mins from Christchurch)
Game at 2pm followed by 2 bands (Irish Brigade are the main one)
I’m such an eejit
Patrick Power
@MarkHiggins24
·
21h
Rangers entering the Sydney Super Cup and then it not happening, reminds me of a time they entered a CVA and it not happening.
Paul
Would have thought a top Japanese club would be the obvious replacement.
Btw, today’s article is a great example of why this blog is one of the very best around. Very informative, some of the costs covered would never have occurred to me in a million years.
Cap duly doffed, P67.
Paul67
‘in Celtic’s case, the deal is not dependent on Newco attending’
Ta for that.so will just put this in the probable litigation pile for Ubend fc.
Nowt to do with us
Contract discussions are ongoing👇 I heard.
With the 100 bill’yun being sued.
https://youtu.be/G_Sy6oiJbEk
HH
BOB on 1ST APRIL 2022 12:16 PM
I would almost die laughing if any money they earned from Europe this year had been washed away by this .
I find it hard to believe they would be so stupid
BOB, you were doing well until the last sentence!