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.

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954 Comments

  1. the long wait is over on

    MWD ; 67 Heaven.

     

     

    You don’t have at all deep on the internet to read lots about this whole stuff.

     

     

    The household names that are mentioned as connected is staggering.

     

     

    The stuff might just be internet bampottery but given our experience of how the bampots can expose the harsh truths that those are blinded by the establishment / meanstream press I’m not so ready to dismiss it.

  2. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    moonbeams wd. wee oscar’s our bhoy and kano’s our mhan. the vow – critically rebuked by 45% of this fine nation.

     

     

    23:10 on 22 December, 2014

     

     

    I cannot believe all this ….. I really cannot …..

  3. Jamesgang

     

     

    Read that post you put up, the joke, we need to be aware of these things unbelievable, how can people be so cruel. Your sentiments regarding posting it were not lost on me. Hail Hail big guy.

     

     

    Ayrshire is Green and White

  4. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    neil canamalar lennon hunskelper extrordinaire

     

     

    23:17 on 22 December, 2014

     

     

    It certainly seems that way ……but the barstewards will reap what they sow ….. and what about the poor people who try to expose it all…..time for action, or they should all hang their heads in shame….

  5. Neil canamalar Lennon hunskelper extrordinaire on

    67heaven..,

     

    They’ve been doing it for hundreds of years it is the core of the realm

  6. the long wait is over on

    MWD

     

     

    I genuinely believe that if the entire truth were to come out – which I seriously doubt it will – then it would be a scandal unmatched. I believe it stretches to the very highest levels of “society”.

     

     

    Can anyone who has read Travellerbhoy’s harrowing posts be in any doubt as to how widespread and far reaching the historical abuse was or how horrendous it’s effect has been on it’s victims?

  7. eddieinkirkmichael on

    Jamesgang, you’re a walloper you big egit.

     

     

    But you know something?

     

     

    We all love you ya bampot xx

  8. So I take it someone wants administration by stopping resolution 9 in the animal’s AGM? No share offer. Really strange.

     

     

    Looks like Ashley is going for admin to me. Flush out a few of the weaker onerous contracts.

  9. macanbheatha Oscar Abú on

    The boy did it again

     

    Juve draw 1_1 11/2

     

     

    Chelsea win 2_0 13/2

     

    £5:00 double

     

    Return £243:00

     

     

    (Just a bit of light relief on this terrible day )

  10. eddieinkirkmichael on

    jamesgang

     

     

    23:40

     

     

    You, my friend, are one of the most honest genuin people I have ever had the pleasure to meet.

     

    I look forward to you giving me a big CQN hug at the Ross County game.

  11. blantyretim is praying for the Knox family on

    Night folks.

     

     

    Say a wee prayer for all suffering or just give a wee thought for them if praying isn’t your thing.

     

     

    KTF..

  12. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    moonbeams wd. wee oscar’s our bhoy and kano’s our mhan. the vow – critically rebuked by 45% of this fine nation.

     

     

    23:30 on 22 December, 2014

     

    67heaven

     

     

    I’m pleased you trust your government so much!

     

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

     

    I don’t know where you got that impression from ……….. I can assure you that, as I have stated many times on CQN, I gave up on politics circa 30 years ago, and wouldn’t trust any politician for one second, but I never thought for a moment that the child abuse was so widespread …… When I say that they need to sort it out, it is in the hope (and prayer) that this would reduce the number of poor, poor young victims…..

     

     

    I admit to being very naive to these things, and to having repeatedly treated ‘warnings’ from people like your good self with scepticism, but not from now on …….. I’ve had a rude awakening tonight, believe me….!!!! It has been a shocking evening for me, and a very sad one also ……..

  13. Jamesgang- Hh I was in oldhall tonight -my father in laws lived there before passing away 2years ago -now I go there to see a Very good guy about guitar lessons.

     

    I caught your post earlier about the despicable post on Twitter -I can understand your anger big chap -my daughter walks that route every day to Strathclyde uni from central station.. I cannot comprehend the pain some families will feel today -it could so easily be someone we know or care for dearly-see you behind the goals soon hh

  14. auldheid

     

    don’t post often, love your knowledge it’s an education for me and probably many others

     

    so please keep up your tremendous work

     

    regards gerrym

  15. johann murdoch

     

     

    Hey big ghuy

     

     

    We were due to meet my sister and her 2 kids only an hour or so after the incident took place.

     

     

    It hit my raj button.

     

     

    HH jamesgang

  16. Jamesgang

     

     

    Meeting you would only confirm your blog persona. An honest, caring and warm man.

     

     

    Your anger was only a reaction of someone who cares.

     

     

    God Bless and stay strong.

  17. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    Goodnight CQN…..

  18. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    A lot of bad news doing the rounds these days. I hope it can mibbe take a holiday for a bit.

     

     

    To those affected by the George Square tragedy,my sincere condolences.

     

     

    Same to all suffering at the moment.

  19. Larsson and McStay on

    Devastating news personally tonight regarding the tragedy at George Square.

     

    18yr old girl and her grandparents among the 6.

     

    A lovely family , I knew all 3 of them.

     

    Well known Dumbarton family…will be a lot of tears shed in Harp club over next few days.

     

    Thoughts and prayers with their friends and family , and for the other 3 poor souls .

     

    Hope all injured make a full recovery.

     

    Off to bed…..life’s not fair

  20. larsson and mcstay

     

     

    I’m so sorry mhate.

     

    I feared CQN wouldn’t be unscathed by this.

     

     

    Prayers for their souls.

     

     

    HH jamesgang

  21. larsson and mcstay

     

     

    Dreadful news, prayers are being said as this is being typed. So, so sad.

     

     

    Weefra HH praying to Wee Oscar.

  22. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    LARSSONANDMCSTAY

     

     

    Dreadful news,mate. Please pass on my condolences.