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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Pal tells me that Sleekit’s neighbours are demanding – No Topiary.
Bankiebhoy
Agree with that.
Said it before and no doubt Ill say it again – if only my late father could have seen the events of the last few years he’d have laughed himself hoarse.
Yesterday was , yet another , new low for them.
As I saw it described elsewhere –
How can you not laugh at an AGM that looks like it took place in a manger?
HH
BANKIEBHOY
I said similar to ACGR last night,on the phone.
I’ve been hypercritical of the board on many and most occasions. But I always give them credit for steering us through financial difficulties.
Disnae mean I agree with their methods,mind!
THE LONG WAIT IS OVER
The set-up at Ibrox yesterday was forced upon them by events.
The original plan included barbed wire and machine-gun nests,but they couldnae afford them.
seems Ally made an appearance yesterday after all
Apologies if already posted
http://i.minus.com/iOq0LD2q5v7Ti.gif
BMCUW
Pmsl !
HH
TLWIO and BMCW
………regarding the make-shift manger at yesterday’s Bloo Kristmas bash –
I was expecting to see abseiling “santa” commando’s and tank -” sleigh rides”.
Ho, Ho, ( Ho!)
This may have been covered already, but I’m too lazy to read back. It’s just a brief explanation of why the failure of resolution 9 at their AGM was quite important.
For the example lets say RIFC already had 100k shares in issue. If res 9 had been passed they could have just created another 42.5k shares and sold them only to Mike Ashley. It’s all new money for the club and instanly gives Ashley his 29%.
However, because it was voted down they can only make an offer to existing shareholders and a sufficient number have to buy in for it to happen. It makes it very hard for MA to take control. He’d have to make agreements with existing shareholders and if he does manage to get enough onside to increase his percentage I suspect that those aligned against him wouldn’t take up the offer and it would fail.
Interesting times ahead.
I see we have 248 000 followers on twitter here at Celtic.
Arsenal claiming today they have 5 000 000.
How can that be?
They are only Arsenal.
We, on the other hand are Celtic.
BANKIEBHOY
C’mon,they couldnae afford them either,ffs!
And the nearest they got to a sleigh ride was a bit of Donner und Blitzen from Bomber. At least I think that was what he said…
TICTAEWIN.
Celtic fans have CQN.
Arsenal fans don’t.
weeminger – I read that Ashley was one of those who voted the proposal down – why would he do that?
weeminger-The Kray Twins would want money back from what they have put in? They are lame duck owners now.HH
When I first saw Bada`s ( I think) photo of the Ranger Manger, I honestly thought it WAS a manger and it was some stunt by the Scrofulous Hillbillies to raise money and an awareness of their `caring image` !
JJ
Phyllis Dietrichson
09:14 on
23 December, 2014
Who knows. While it makes it more difficult for him to gain control, the same is also true for other parties.
Perhaps because it might be even cheaper for him to get the assets and get rid of contracts by going through admin and liquidation.
Maybe he’s completely lost interest after his man giving the place the once over.
The penny appears to have dropped for the MSM re the managerial position at sevco.
Yesterday morning they totally ignore the statement to AIM that McDowallyy will be in charge until end of season and blab on about Davies and McCall being front runners.
Sevco re-iterate the McDowallyy news at the AGM and today he appears to be the new Mourinho just waiting to take his place on the ibrox throne.
He was head hunted by Walter so he must be the real deal. The same man who groomed super for the ibrox dugout.
JJ-this one-AGMs Spot The Difference http://t.co/NhbAmCDwve
!! Bada Bing !!
A picture paints a thousand words.
JJ
kingoh-when the Cardigan pulled his masterstroke in taking McDowelly from our youth team,he was still Scotland manager,and McD freely admitted this was the case.I’m not sure i can remember what fine Myth got for going behind the SFA’s back, to create a new management team for a club side.I do remember the MSM ,saying it was his destiny and a great move for everyone……Fergus was fined 200k (i think), for tapping up TB from Killie.Still a Scottish record fine i’m sure.HH
BMCUWP / JJ / Bankiebhoy / Bada Bing, when I saw the pictures of the Celtic AGM and the hun AGM side by side, boy did I laugh. I thought their wee tent was a photoshop piss take by a clever Tim.
Having attended the Celtic AGM but maybe not having been satisfied at all the outcomes, I can at least acknowledge that Celtic are capable of setting up a professional meeting commensurate with our standing in the world of sport.
The hun meeting yesterday was akin to a bad advert for camping in a zoo.
!!Bada Bing!!
I’m sure Celtic were forced to pay Killie compensation and the SFA fined us.
That was a bad move by the SFA because Fergus was out to get them after that.
LB
i think the only way to get rid of the onerous contracts is liquidation. with that in mind i’d say that is Cashleys end game, hence him voting against resolution 9
one or two more payday loans with castle greyskull as security then call the lot in, enter luquidation which ends the onerous contracts and then he has the lot. whether he then sells or keeps them going as hun part 3 is anyones guess.
i dont think a simple admin is the plan as a 25 point penalty scuppers promotion and another year out of the top flight would finish them anyway
“The hun meeting yesterday was akin to a bad advert for camping in a zoo.”
Isn`t that what it was?
JJ
livibhoy
09:38 on 23 December, 2014
SFA Fined us £100k and ordered us to pay £200k to Killie.
Keep the Faith!
Hail Hail!
A Ceiler Gonof Rust
09:38 on
23 December, 2014
“The hun meeting yesterday was akin to a bad advert for camping in a zoo.”
==============================================
Carry on Camping
Proud to be etc
25 points? Why?
JJ
It was well known that there was a mole at Celtic Park during MON’s time, leaking team information to the hun.
This stopped on the exit of Mc Dowell.
its snake mountain
So Llambias turns up with a begging presentation at Hampden in front of an audience including our very own Peter Lawell today.
Oh the indignity of It all for the klan and another barometer of how far they have fallen from their supremacist perch.
Ain’t karma a beautiful thing…
On more important matters my thoughts are still with the great people of Glasgow today after yesterday’s terrible tragedy.
The good guys reside at Castle Greyskull.
The baddies slither around Snake Mountain.
#knowyourheman
Did anyone see the guy sitting on the ground outside the bigot hoose after the agm?
He was sobbing like a baby.
I’m quite sure he was, like the rest of them, made well aware of the dangers of his club getting involved with CW, Chuck and every other spiv. I know I flagged it up to some in my work, but like the distraught dude on tv, their arrogance didnt allow for common sense, or a warning from Timmy (via Phil).
They chose to follow the gospel according to Super Ally, Walt, Jim Traynor and Keith Jackson, and oh how they suffer now.
lennybhoy-300k in total is remarkable,considering it is 20 years ago,how much compo did Diedco pay the SFA for Myth? That’s right hee haw.
ME.
aye.
was between him and the “a canny talk ” wummin, or the “we were the establishment” bear for my favorite clips.
Jungle Jim Hot Smoked
09:43 on
23 December, 2014
Proud to be etc
25 points? Why?
JJ
=================================================
a 2nd admin carries a 25 point penalty
unless they accept they are a new club of course
Marrakech
On radio five live yesterday one eijit was still calling out for them to step aside and be replaced with a benefactor who had the clubs interests at heart. I imagine King will continue to play to this large demographic of half wits over the coming months with his off the radar wealth and with his promises of putting the Gers back to where they belong, yadda yadda yadda..
That klan-like mentality won’t shift soon.
operator- i played against McDowell at youth level,a bigger hun you couldn’t meet.Paul McStay was in position for a coach’s job under MON,for some reason McDowell got the job.Paul turned his back on Celtic after that.HH
” large demographic of half wits”
LOL
:-)
There was real anger among the shareholders leaving the AGM yesterday. They are beginning to realise they are being taken for a ride.
But there were still those calling for large injections of cash. Their sense of superiority and entitlement means that the option of cutting costs to match low income doesn’t figure: someone must give them millions more to burn.