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.
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954 Comments- Pages:
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celtic40me,
Why don’t you head off to follow follow where discussions are controlled and censored the way you like
Were our players out for their Xmas night out on Saturday night.? ……. If so, EFE had one too many .. Just kiddin’ EFE …… You’re still Ma pal….!!!!!!!!
EmeraldBee\o/,
OK, that will be two singles from Newcastle to Glasgow then …
Neil….
Don’t play that card, being shite at football and the colour of your skin is two different things, shocking post.
gordon_j backing neil lennon
11:06 on 22 December, 2014
EmeraldBee\o/,
OK, that will be two singles from Newcastle to Glasgow then …
A belter ;)
Somers commented to staff that the AGM would be intense, he didn’t mean ‘in tents’. Idiots!
21-5….,
Face the truth, there’s nothing shocking about it. What age are you ?
Wish I had bought 1 share in sevco, sounds a right laugh at there AGM.
Panto season in full swing at the scrappy.
Just seen on SSN there one of the sleazedales going into the scrappy, the sky guy asked what do you think about ally leaving….. Not a lot haha
coolmore mafia
is there no roof on that stand ????????
bamboo
10:54 on
22 December, 2014
m6bhoy
Ive seen the Mcmanus’s the Caldwells and ODeas make many a defensive balls-up without getting anything like the redicule and abuse that Ambrose gets. I see that Wakaso is to being quickly being written off by some although he to is a current international. So I’m just wondering if the african factor unconciously comes into play when we make our judgments.
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Raphael Scheidt was an international player and he took some abuse. Lee Naylor was almost an international player and he took some abuse. Then again he was from the Black Country so you might have something.
NegAnon2 – Serious question to you mate, why don’t you just give up supporting Celtic, you don’t seem to get any enjoyment out of it…or is this your idea of enjoyment ?
TET,
Efe played defensive midfield before he came to Celtic so knows what’s needed, as you can see from the likes of the clueless 21-5.., some will never give him a chance and probably never did, is it cause he’s black ?
Things you learn ———–
Local pirate radio has just told me that today is Joe Strummer day .
I never knew he had a day.
Old man me remembers him from pub rock combos like El Huason and the 101 Allstars / The 101 ‘ers belting out Gloria in pub rock dives like the Chippenham and The Elgin . Not bad for a Monday night in West London . Never took to The Clash. Saw them in a boozer in Harlesden called The Collisseum ( with The Slits ) Not my cup of tea/ never forgave them for the murder of Police and Thieves …
Even so — the man appears to have been a hero to many -so -Big up Joe Strummer !.
TonyDonnelly67
I don`t know if the post being referred too was one by HT criticising you for sexist comments re Jeanette Findlay. He said Jungle Jim was even worse for , I think, supporting you. I do not recall supporting sexist comments but that is another matter.
JJ
“Raphael Scheidt was an international player and he took some abuse. ”
M6bhoy,
I honestly can’t remember Raphael getting much abuse when he played.
Most hilarity came after his handful of games, due to his name, fee and the fact Barnes had never seen him play.
I’m 49, born and bred in Glasgow, now live in Birmingham, don’t try and insinuate that because I think Ambrose is not very good at football that has in any way got to do with his colour or race, your trying to distort the original post.
Neil canamaler
In my naivety it didnt occur to me that anyone was being racist, I think in general that the big man has been given the benefit of the doubt for some of his abject displays. Wouldnt like to think he’d come in for abuse because of his race
HH
#RangersAGM shareholders all crowded into away corner section. Official attendance 46,000
bamboo did suggest subconsciously so it is wrong to dismiss his view without giving it more thought than the replies so far, I believe, have done.
JJ
Leave Efe alone…big man plays his heart out for Celtic.
HH
A wee video of them entering the arena
http://t.co/CNpwe48SKW
@STVGrant: And now to shareholders’ questions. David Somers: “I suspect one or two of you may have some questions”. #rangersagm
Nae flies on that Somers guy
#RangersAGM #Rangers can probably expect to make another payout soon when David Somers lodges an industrial deafness case
Geordie Munro
11:15 on
22 December, 2014
“Raphael Scheidt was an international player and he took some abuse. ”
M6bhoy,
I honestly can’t remember Raphael getting much abuse when he played.
Most hilarity came after his handful of games, due to his name, fee and the fact Barnes had never seen him play.
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Online abuse I meant albeit t’internet was in it’s infancy at the time but I was on the Big Lhist then and he got pelters there.
Dignity, dignity dignity
https://www.youtube.com/watch?v=kfSoIGbU4lk&feature=youtu.be
[11:19, 22/12/2014]8 Somers: “If it gets too rowdy, I may have to ask you to leave the meeting.” #rangersagm
David Somers asked about funding. He tries to take another question without answering first. Shareholders furious. #rangersagm
Shareholders imploring next person to ask question not to ask his question until previous is answered. #rangersagm
Maybe ‘the civil unrest’ might come out to play today
Paul67
Your estimate of 17m to run Sevco without taking staff into account seems high to me (but I wouldn’t have the knowledge to really say why).
Would you be able to give a quick breakdown on that – is it mostly Ibrox itself?
[11:23, 22/12/2014] John: @scotzine: AGM getting a wee bit tetchy now – fans want one question at a time while Somers want two at a time. Somers – I’ll do it my way.
[11:23, 22/12/2014] John: @STVGrant: Somers angers crowd by saying: “when you get to be chairman of Rangers, you can decide.” #rangersagm
Tell you what….never mind slating Celtic players who play for the jersey, that’s not on.
If you aren’t happy about the quality of the players, I suggest you take it up with Mr Lawell. or one of his minions.
The board are responsible for dwindling crowds….loan signings, downsizing, complacency, and much much more besides.
Have a go at the chancers on the board….support the team.
HH
Sally faces new selection problems
#RangersAGM #Llambias ends speech; no word on whether #Rangers will use pitch as summer camping site after today’s successful venture
South Of Tunis…ever visit The Greyhound on Fulham Palace Road?
[11:25, 22/12/2014] John Brown says he was refused directors box seat on Saturday by “you lot”
[11:26, 22/12/2014] Brown: What involvement do Ticketus have in this? #rangersagm
Saw a clip of Sevco AGM on Twitter where the board took their places on the platform to a crescendo of booing and jeering.
Reminded me of a confused Caucescu trying to address the masses in Roumania . . . half an hour before they put him up against a wall and shot him.
south of tunis
Things you learn cont….. http://www.theguardian.com/music/2014/dec/16/joe-strummer-has-deep-sea-snail-named-after-him
HH
Brown to Llambias: I hope you are of better quality to the rats at that table. He receives a standing ovation