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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Logging off.
Thoughts with the poor families involved.
Turkeybhoy
15:27 on
22 December, 2014
I think tomorrow’s informal chat at the SFA will be very short indeed.
– So Mr Ashley you want 29.9%?
– Not a chance. See ya.
Although Tony Donnelly is big and old enough to stand up for himself,I do think this witch hunt against him is shocking behaviour.
No matter what your reasoning is,this is a blog,we are all Tims.A wee bit of disagreement is fine,but this goes beyond that.
As with Neganon,I agree with some of what he says.I disagree with some,but so what.
There are a few snidey posters,but the majority should try and get along better.
Thats me said my bit for today.Off now to try for my 15th straight darts win tonight.Could be a great night after that share news from the hun.
Blessed be God.
My son has just phoned in. Was in glasgow heading to Queen St.
A long, long 45 minutes.
My prayers for my own now transfers to those unknown to me.
Pourforth we beseech you O Lord.
weeminger
15:30 on
22 December, 2014
Turkeybhoy
15:27 on
22 December, 2014
I think tomorrow’s informal chat at the SFA will be very short indeed.
– So Mr Ashley you want 29.9%?
– Not a chance. See ya.
Not even a “Sit down with a cup of tea”Copywright of one Alistair Mc Coist.
LOL.Great news mate.
At least in the siege of troy the greeks waited 10 years and then sneaked in inside a big horse – cashley gave thems some spare wonga and is invited in with the blue carpet. Outcome will be the same they are toast.
Best wishes to Kano.
Very sad news in Glasgow today.
The football yesterday is slightly less important.
LB
Tony in what capacity have you met Mr Lawwell ( 4 times)?
Turkeybhoy
15:27 on
22 December, 2014
weeminger
15:20 on
22 December, 2014
Turkeybhoy
15:16 on
22 December, 2014
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12193551.html
Thanks very much.Best news in ages.DOOOOOOOMED,I tell ye.
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A quick look at the voting figures tends to show some sort of split in the Easdale/Ashley/Hedge Fund block, on the Resolution 9.
Who has broken ranks – very interesting!!!!
And Tony I have never referred to you as a snake. As you will see HT did. I look forward to an apology about that and your constant labelling of me as a hun?
Just watching the news from glasgow – tragic
Tom McLaughlin. It is hilarious in the extreme that you come on here pontificating about poor Tony. I face regular attacks on CQN for simply stating my case. You amongst them.
So are you going to defend me next time?
You only want to hear views that coincide with your own……
Absolutely awful news today. A real double whammy with the news of Kano this morning and now this tragedy in George Sq.
Prayers offered to all concerned.
Watching the news from Glasgow with utter disbelief. Thoughts are with all involved in this unfolding tragedy.
Tom.
Wee Bobby Collins.
Was mocked for weeks on here for saying there was a clique on CQN.
can we take a break from point scoring?……….take a look away at what is happening out there.
George Square – absolutely tragic
While watching the video from Bada Bing of the reception given to the board members of the Rangers I notice the stand behind them appears to have the roof removed was I seeing things ? If it has been removed is it going to be replaced and where will they get the money ? H.H.
Evening all.
Been out all day. Did the predicted war break out in Govan?
Leftclictic
Yes it would be a first but it is about theirs best option.
You would get better odds on him having an impact than them going bust again. I ll bet on that
What’s happened in George square?
What has happened in Glasgow?
Neganon –
Let’s leave it for now shall we? More important things to worry about.
Out of control bin lorry ploughed into a building.
Bhoys I have to agree with others the treatment being dished out to Tony Donnelly is most hun like.Maybe a wee reminder due this is a Celtic blog and while we may disagree with each other from time to time surely we can agree to disagree without all the slagging ? H.H.
Parkheadcumsalford
15:57 on
22 December, 2014
Bin lorry ran into some pedestrians after going out of control between Royal Ex Sq and Queen St Station. 6 dead so far.
Bin lorry has mounted the pavement and run 150 yards from Royal Exchange Square to Queen St station.
reports of 6 people dead and many injured.
Oh never that is terrible news.
Dear God the lorry must have travelled in excess of 100m before hitting the hotel.
eye witness saying lorry doing between 50 and 70 mph, are you sure? he was asked? firm yes. he said he has split second to move out of the way. he saw three people knocked over and saw debry fly into the air.
Cars normally do between 5-20 mph there. Several traffic lights to ensure this.
horrific
OMG, thoughts and prayers with the families.
Shocking stuff.
Polis on Sky said the lorry traveled 300 mts along the pavement.
Heart goes out to the familys.
Bad news day all round, first Kano, then six dead in Glasgow, driver of the bin lorry may have had a heart attack.
Kilmarnock flooded as river Irvine bursts its banks, so far only the industrial estate affected.
Murderous weather in Ayrshire last few days, never stopped raining.
https://www.scotblood.co.uk/news/incident-in-glasgow,-monday-22-december.aspx
Dreadful incident in Glasgow City centre. Awful thing to happen at any time but always especially poignant at Christmas.
Deepest sympathies to all affected by this tragedy.
Dreadful news of George Square.
Only good news is the response of the Glasgow public.
Prayers offered for all of them.
The statement to the Stock Exchange about the share issue being voted down is here http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12193551.html
Hilarious.