Prior to this morning’s AGM, which got underway a few minutes ago, Rangers International chairman David Somers issued a statement to the stock market, which he intended to reading at the meeting. It contains powerful insight into reality at the club:
“Graham Wallace (former chief exec) wrote a review [in which]he indicated a desire to spend £20-30 millions in reaching the top levels of Scottish and European football. After visits to various City institutions the Board believed that such a level of expenditure would be supported by the City institutions, and the then monthly rate of loss, would also be supported by the shareholders. In the event, this was discovered not to be the case, because when we came to raise funds through a share issue, we soon found that there was a lack of appetite from shareholders to invest significant extra funds just to pay wages and utility bills.”
No. Kiddiin’. Sherlock.
That £20-30m estimate was conservative, more would actually be needed. The funding requirement remains but it has grown as a result of newly-established commercial deals the club accepted to agree short-term funding in recent months. Charles Green found fools in the City but that ship has sailed, it is staggering that the board believed going back to the same well would have been effective.
The penny has dropped, the most important aspect of Somers’ statement is:
“Accordingly, we have moved to cut costs significantly. Like any household, Rangers can ultimately only spend what it earns and, as has been reported in the media, we have moved quickly to bring our costs down and much more in line with our income. Rangers Football Club has been living beyond its means for many years and much of the cost cutting and efficiency improvements should have been addressed years ago by previous boards when we were in the lower divisions. But they weren’t, so we are doing it. A material part of our costs relate to player costs, however, and these can only be addressed over a long period of time because of the length of the contracts. These contracts are often measured in years, not months.”
Bang, there’s your dinner! Newco are rubbish and they plan to downsize.
They can’t do much about property, security or business services costs, as Somers said, the “material part of costs… relate to player costs”, and with a player budget heading closer to Alloa Athletic than Athletic Bilbao, income potential will nosedive.
Fixed costs to operate a football club, which occasionally hosts 50,000 spectators at Ibrox, run to around £17m p.a. Then they have to employ players, coaches and other football staff.
As I’ve been saying for years now, football at Ibrox is not economically viable. They can survive as long as there are assets to sell-off, but the sharks will soon finish off the carcase. More power to Mike Ashley’s elbow.
Today is the LAST POSTING DAY BEFORE CHRSTMAS for CQNBookstore! Orders placed before 14:00 today will be shipped Special Delivery to ensure you get them next day. Take a look around the store, you know about your Annual, and Caesar & the Assassin, but here are tons of Celtic books and DVDs.
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Leftclick ah informal talks with the SFAS. Isn’t that quaint. We will discuss off the record with you so we can decide how to stitch up the rest of scottish football. big Peter will no doubt help!!
What an absolute con scottish football is.m
I think that reads along the lines, the SFA will be told by Sevco what to do.
TonyDonnelly67,
Even if, as you claim, you were unaware of JF’s personal circumstances, it’s a bit disappointing, although not entirely surprising, that the idea of apologising for your tasteless diatribes about her hasn’t even crossed your mind.
Still, as long as you’ve got Peter’s back ,eh? Those pesky Celtic supporters keep asking questions of him, it’s just no fair.
Ramie
Any update?
U
BSR
I wonder if it cracked when it hit the ground..?
Why have informal talks?
Why not have formal , grown up talks?
What a bunch of amateurs.
Maybe the badge was taken away by it’s rightful owner…
#challs
DBBIA
That question makes me laugh out loud every time I read it.
RIFC did not achieve sufficient vote for the Resolution to allow share issues. They’re cream cracked, Donald Ducked and looks like MA will be the only route they might have. I’m not convinced he’ll bankroll them to be honest.
!!Bada Bing!! & NegAnon2
C Ogilvie will be on the blower the now
asking Big Mike what time is most suitable and what cakes they would like Sandy Bryson to bring.
If it wasn’t so sad it just might be funny
sameoldsameold
Neganon read this slowwwwww
Neganon you asked, oh as in his reference to me being a snake? I lost that one too.
HIS not yours,
PL? I’ve met him about four times for a short hi and how are you kind of thing, to say we re friends would be as true as Hamiltontims post, but just in case you read this wrong too, friends? No.
TonyD
If your tale is accurate then why did you state on here on the morning of the Forum Meeting that you were going?
If your tale is accurate why did you claim on here after the meeting that it was you who’d asked the question about your bus being attacked at Bridgeton Cross?
leftclicktic-too true unfortunately..
Turkeybhoy 13:40 on 22 December, 2014
If as you suggest we play Ambrose in midfield, who do you suggest makes way. Oh and by the way you are wrong. He cannot tackle. Lightweight and powderpuff. Him and Matthews would struggle to negotiate their way out of a wet paper bag.
weeminger
14:23 on
22 December, 2014
RIFC did not achieve sufficient vote for the Resolution to allow share issues. They’re cream cracked, Donald Ducked and looks like MA will be the only route they might have. I’m not convinced he’ll bankroll them to be honest.
===========================================
No reason to doubt the truth of this mate, what is the way forward for them?
So MA won’t be getting 29.9% of the club without buying somebody out. Not happening.
ulysses
Sorry mate…i dont do face book but i am lead to believe that the info posted is as up to date and accurate as can be spoken of this evening
It really is not for me to broadcast info at this extremely difficult time for the Kane family… other than my dearest friend is battling once more…and by hell he will battle…and i hope in the coming days he gains strength to pull through once more as he has done before
ffm – i’m the only conspiracy theorist in the village)
14:18 on 22 December, 2014
TonyDonnelly67,
Even if, as you claim, you were unaware of JF’s personal circumstances, it’s a bit disappointing, although not entirely surprising, that the idea of apologising for your tasteless diatribes about her hasn’t even crossed your mind.
Still, as long as you’ve got Peter’s back ,eh? Those pesky Celtic supporters keep asking questions of him, it’s just no fair.
What you call tasteless is up to you, what is my opinion is mine, do you have any thing that I said was distasteful or are the gang just circling the wagons at the moment, you lot are so predicable honestly, oh and your leader is very inconspicuous with his absence today, funny that EH?
Ashley might buy out the Kray Twins?
Bawsman
14:29 on
22 December, 2014
The results of the AGM have been released to the Stock Exchange. The resolution (no 9) that would have allowed the Directors to release new shares wasn’t passed.
It’s secured loans from MA (or another party) from here on in. If MA really wants control of Rangers I think (I might be wrong) the only really viable option is admin, liquidation and he buys the assets. Otherwise he’s spending millions to get control alone, without even putting money into the club.
Celts visit – Yorkhill Hospital
Hopefully without getting into a politics debate
Is the man who allegedly came up with” project fear” statement
“Shorthouse, a former head of communications for Strathclyde Police”
the same RS who worked for the SFA
Prayers and thoughts with Kano and his family at this very difficult time.
TonyDonnelly67,
Thanks for the repy. I’ll leave it at that.
Sevco vow to make next years AGM better
Dundee Utd really put it up to us yesterday but we all know what the result should have been , we were robbed to put it mildly – of at least a point. Our lead is now down to four points and people who think the league is not competitive should think again.
Did we not have the title almost wrapped up last season at this point? perhaps I need to be corrected on this. Another poor result and the pressure starts to build. looks like the honeymoon is over for Guidetti and hopefully it stops all this nonsense about interest from Marseilles and Inter Milan – I still think he will be a good signing. Leigh Griffiths looked particularly lethal yesterday and hopefully he will get more gametime. Some posters are saying Effe on front of the back four – why not.
leftclicktick
The claim is that he made the statement at a Tory Party conference.
Strathclyde Polis, The SFA and the Tories- there’s a unique trio that the big mouthed self-publicist claims to have been employed by.
Thoughts with Kano and his family and friends. Hope he can pull through.
See me. Aye ah me it wis me and we’ll someone else and me and aye.
setting free the bears for Res. 12 & Oscar Knox
Thank you
“Did we not have the title almost wrapped up last season at this point?”
Hankray,
I wouldn’t have thought so. The title wasn’t clinched till end of march.
Every chance we had a bigger lead though.
Ramie – our thoughts are with the family, in Oz and back here. Your man is a fighter and he’s come through all the battles before.
Take care mate,
T4
Enjoy the good times this season, ashleyco fans ! It can only get worse before it gets even worser.
hamiltontim
14:25 on 22 December, 2014
TonyD
If your tale is accurate then why did you state on here on the morning of the Forum Meeting that you were going?
If your tale is accurate why did you claim on here after the meeting that it was you who’d asked the question about your bus being attacked at Bridgeton Cross?
Honestly this mob do my nut in.
Because we where going to the meeting my brother was told before that, that it would be ok not that morning, before it, get it?
No no it my my clubs bus that was brought up at the meeting that’s what I said, my brother brought it up,.
Listen let’s put this to bed you made an are of yourself making an alleged comment that I was NOT at that meeting, I was at it its not a tale, you know JP TAylor ask him if my brother attended the meeting that will clear up your tale accusations, if his words not good enough ask Paul Larkin I spoke to him along with my brother at the meeting, I also spoke to a John Andrews from the Celtic Supporters Association along with my brother, you know any of them ask them they where all there, as I was with my brother, snake? Really?
TonyD
It would appear that I was very wrong and both you and your brother were in attendance but I will point out it has only been in the last few days that you’ve made reference to your brother being there. Prior to this you’d always stated that it was you who’d spoken at the meeting.
So Tony I apologise to you for misreading your posts.
After reading weemingers last post im more than ever convinced that thems is in big trouble, i also think the SFA , after their latest go with sevco,will be a lot harder to deal with than they have been in the past….with regards to mcdowell getting the sevco managers job…i think thats the worst thing they could do…the dressing room will be run by the miler boyd mcculloch clique…good times….
They don’t do glamping away.
Worrying news on Twitter about an accident in Glasgow City Centre, reports of 6 pedestrians killed.