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. jamesgang

     

    Good night bud

     

    Hugs fae ML5 to you & yours

     

    wont be long tae Santa now

     

    Keep the Faith & keep it lit :))))))))))

  2. jamesgang

     

     

    Anger gets us no where, best thing to do is ignore these people completely on twitter.

     

    silence anoysnthe feck oot o tits like that , don’t react man. Contemplate just for a moment on todays dreadful event. Anger achieves nada

  3. Joe,

     

     

    Yer away aff on one pal;)

     

     

    All I’m saying is Pl said Celtic COULD be losing upto 10M.

     

     

    He didn’t say they were losing it.

  4. Burghbhoy

     

    21:34 on

     

    22 December, 2014

     

     

    without getting into navel gazing, if thats what it is, them showing love and concern for celtic, then i don’t think anyone would argue with you.

  5. Burghbhoy

     

    21:34 on

     

    22 December, 2014

     

     

    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.

     

    ——————————————

     

    If by “show their love and concern for Celtic” you mean childish and personal attacks on other posters, then I respectfully disagree. They could show their love and concern by making rational posts using sensible language. This would make for a better and more productive blog.

  6. Joe Filippis Haircut on

    Geordie Munro. No problem fella but its like being invited into a card game when you know that the guy winning all the money is being helped by an accomplice. So why would you sit down and join the game. H.H.

  7. Neil canamalar Lennon hunskelper extrordinaire on

    Maestro,

     

    My auld man gets tablets for that, want me to ask him for any spares ? :)

  8. any opinions on us signing big bad John? or can wee Leigh dae the biz for us ? or even the green side o embra. A think we should stick it right up the sevvies, loan Leigh to the Hibees.

  9. jamesgang

     

     

    Well said then young man!

     

    Off for the night – hope everyone is safe and with their loved ones !

     

     

    HH

  10. maestro

     

     

    21:45 on 22 December, 2014

     

    Anyone else in the G74 & G75 area still having issues with your water ?

     

     

    No issues in the Murray/ Kelvin area mate…….good luck.

  11. The Spirit of Arthur Lee on

    Glasgow City Council have Tweeted: We’re now switching off Christmas lights in ‪#‎GeorgeSquare‬ as a mark of respect. Police are content with this.

  12. Had Chelsea at -1 and lucky to win the bet. What a boring team to watch

     

    Costa on his tod up front. Often 10 men behind the ball.Boring but effective. Maybe we could learn from them. In open play, their defenders don’t charge up the park in cavalier fashion like Virgil.

     

    HH

  13. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    Did I hear that right ….. Someone has submitted evidence of the murder of 2 Policemen murdered whilst investigating child abuse ‘at the heart of Westminster’ in the 70’s & 80’s …… What a society we live in ….words fail me, honestly……disgusting, disgraceful and utterly appalling

  14. A Ceiler Gonof Rust on

    Jamesgang, dont beat yourself up big chap. People who mock human tragedy are scum.

     

     

    Hail Hailp

  15. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    Broken windows and empty hallways

     

    A pale dead moon in the sky streaked with gray

     

    Human kindness is overflowing

     

    And I think it’s going to rain today

     

     

    Scarecrows dressed in the latest styles

     

    With frozen smiles to keep love away

     

    Human kindness is overflowing

     

    And I think it’s going to rain today

     

     

    Lonely, lonely

     

    Tin can at my feet

     

    Think I’ll kick it down the street

     

    That’s the way to treat a friend

     

     

    Morning sun rising on an empty afternoon

     

    No surprise, river rising faces, I watched you

     

    Human kindness is overflowing

     

    And I think it’s going to rain, rain today

     

     

    Bright before me the signs implore me

     

    To help the needy and show them the way

     

    Human kindness is overflowing

     

    And I think it’s going to rain today

     

     

    Human kindness is overflowing

     

    And I think it’s going to rain today

     

     

    HH

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