There’s your dinner! Newco are rubbish and plan to downsize

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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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  1. Auldheid

     

     

    You bother because you care about playing fairly.

     

    And you’re kind enough to keep the blog informed.

     

     

    Your work is appreciated by many many Celtic supporters.

     

    I’m only one of them.

     

     

    Keep it lit!

     

     

    T

  2. Had a mobile phone malfunction. Lost the rubber end off my stylus. Hence the mispost.

     

     

    Before you start, Mrs HJ has beaten you to every possible comment.

     

     

    On this sad night.

     

     

    Let Glasgow flourish.

     

     

    Let CQN flourish.

  3. Auldheid – tip my hat to you and all of your work.

     

    Too many of us enjoy voicing our opinions but rarely get off our backsides and try to do something constructive about it. Easier to leave that to others after all.

     

     

    Goodnight and God Bless to everyone on this very sad night.

  4. Joe filippis haircut,

     

     

    Not really the night for it but what figure would you put on…£100 discount on all adult season books, a missing 15000 persons per year paying up to 40 odd quid each?

     

     

    Not to mention TV deal and lesser corporate packages.

  5. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    That Sky News presenter is absolutely excellent at her job…..

  6. Agree with all the comments on Auldheid…. A rational voice sometimes in the midst of insanity.

     

    Disapointed though to see that the views of other Celtic supporters on the blog are rubbished.

     

    We all want the same thing ?

  7. Can you believe this.

     

    I’ve told him already what I think.

     

     

    @DrOssie90: Terrorist news.

     

    Bin Ladens close friend, Bin Lorry, kills 6 in Glasgow.

     

    What? Too soon

     

     

    HH jamesgang

  8. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    ginger

     

     

    21:06 on 22 December, 2014

     

     

    I was brought up near George Square and It hit me very hard when I heard about this tragedy after work tonight…..truly awful, as you say…..

  9. Hrvatski Jim

     

    20:48 on

     

    22 December, 2014

     

    Everyone is entitled to state their view but constantly repeating the same position is tedious and loses interest and respect.

     

     

    haven’t you been on here before saying the same thing :)

     

     

     

    auldheid

     

     

    cqn needs you.

  10. Joe Filippis Haircut on

    GeordieMunro. So with that question I have to assume you think that is all down to Rangers not being in the SPL . I tend to think if Rangers were in the SPL we still would not fill Celtic park for every match many Celtic fans are fed up with the cheating that has gone on in Scottish football and are not willing to pay money to watch there team being cheated. Many are fed up with the Celtic stance on the matter and want Celtic to come out in public and say where they stand in the matter however,if you are happy to continue to pay your money no questions asked thats your perogative fella.H.H.

  11. jamesgang

     

     

    There are sick bastards all over the World…..please don’t post their sickness on here.

     

    Thank you my friend.

  12. Neil canamalar Lennon hunskelper extrordinaire on

    Winning Captains

     

    I’m sure Jamesgang would like that removed.

  13. Joe,

     

     

    I don’t. I think it’s down to a number of factors.

     

     

    I also put it down to people not being able differentiate between the words ‘could’ and ‘is’.

     

     

    HH

  14. Auldheid

     

     

    On a site where my scroll on by finger is now overworked don’t dare stop bothering.

     

     

    You’re a giant amongst too many pygmies.

     

     

    Keep the faith..

  15. neil canamalar lennon hunskelper extrordinaire

     

     

    21:25 on 22 December, 2014

     

    Winning Captains

     

    I’m sure Jamesgang would like that removed.

     

     

    ——

     

     

    Please do.

     

    In my anger I wanted folk to join me in replying on twitter to tell him what we thought.

     

     

    But I realise that any fight I want to have on twitter shouldn’t necessarily come onto CQN.

     

     

    HH jamesgang

  16. Captain Beefheart on

    Jamesgang,

     

     

    One could of course argue that there is never an appropriate time for quick witted individuals to make such gags. Humans have a strange existence though.

  17. Neil canamalar Lennon hunskelper extrordinaire on

    So the hun mob decided it was time to blame someone :)

     

    All this talk about austerity, making them start to twitch five years too late :oD)))))

     

    Then they block the only route to raising funds that doesn’t involve giving power to an individual. Pure kwality stupid man :oD))))) DOH

  18. HE EXILED TIM

     

    20:51 on

     

    22 December, 2014

     

    Auldheid

     

     

    You bother because you care, you care about fairness and justice, honesty and transparency……….

     

     

    Had it not been for people like you, ach you know.

     

     

    Keep on keeping on mi amigo.

     

     

    HH

     

     

    =================================

     

     

    Auldheid………………Don’t you dare stop mate.

  19. captain beefheart

     

     

    To stress. The guy on twitter said ‘what, too soon?’

     

     

    For me I hate that kind of humour. Not matter the time that passes.

     

     

    exslaemuirbhoy

     

     

    Point taken. But in the same way I’d blow up if I was with you in the pub and would show you that filth I did the same.

     

     

    Apols again.

     

     

    HH jamesgang

  20. prestonpans bhoys on

    JFH@21:20

     

     

    Also we are in a depression and bhoys can not afford to go, a fact a lot of people forget.

  21. gene

     

     

    21:31 on 22 December, 2014

     

    jamesgang

     

    disappointed that you posted that

     

     

    Gene

     

     

    Apols to you then. Just kinda lost it cos it angered me so much.

     

     

    HH jamesgang

  22. So ghuys we had some posters described tonight as tedious, bad apples and pygmies.

     

    Whilst I may disagree with some on here I like to think I would always respect the fact that they take time out their day to show their love and concern for Celtic.

  23. Joe Filippis Haircut on

    Geordie Munro. I am not the brightest guy on CQN so that post of yours has gone right over my head.However, in my simple mind by not paying tax Rangers could bring in top name stars and pay top money while Celtic struggled gainfully tried to challenge now at that time many Celtic supporters thought there was cheating going on but they were laughed at.Now it came to pass they were right however,a learned judge said not paying there tax did not give them an advantage.So many Celtic fans say you conned me once and if it is not sorted honestly it will happen again.There as I said in an earlier post many Celtic fans of which I am one believe Celtic have been complicit.So once again if your happy thats good but dont look for any change in Scottish football. H.H.

  24. Shieldmuir Celtic on

    Shieldmuir CEltic

     

    Keep the faith! You represent the views and the spirit of the real Celtic supporters on here.Forget the balloons!

  25. On a day of desperate sadness and Christmas around the corner many people will have very mixed emotions tonight.

     

     

    Auldheid, I have never had the pleasure but please keep it lit and keep fighting the good fight, people like yourself are what makes this club and it’s support so strong, having just watched those streaming out of Ibrox today and their damaged sense of entitlement and we deserve better attitude makes me thankful we have guys like you fighting our corner.

     

     

    HH

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