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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Another theory touted on admin ,was you would lose 1/3 rd of your last season’s points total
Looking back, the TB/ Killie /SFA thing was outrageous. Their wee Judas banner put me off Killie for a lifetime also. SFA got theirs in the end.
Saint Stivs 0959-
The “We wur the establishment” bear was hilarious. He went on about how they “wur aw aboot charity (why then did they trouser the proceeds from that Legneds game v Milan in 2012 instead of passing it onto to charity as they were supposed to?) and the community” (how does that square with a no Roman Catholics policy from 1920 to 1989?)
You could see between him, the wee wifey that said she couldn`t talk any more, and the august fellow in the blue jacket slumped on the deck sobbing like a baby, that the realisation that they are no longer “ra peepul” is driving them demented.
I really don`t know how the news reporters managed to keep a straight face.
It would be 25 points for admin 2. They are the same club according to the 5 way agreement. This has been borne out by the recent 250k LNS debate.
Ashley may have one or two plans but both will involve how much he can make.
The attendances have dropped and will drop again over the next month unless they can produce a manager palatable to the press.
The money they need each month goes up with falling attendances.
Ashley’s mob will go with the predicted fair accompli to the SFA SPFL and tell them they need to root out Green and his axis. dont know if there is time for that though.
Bomber Browns question about Ticketus though. If that was answered as I think it should we would no one attending Ibrox but the stewards and police.
I don’t think Ashley has or will have any claim on the assets. He must think there is a way to get Rangers to safe ground. Maybe if he could rent a smaller ground or get Hampden at a cut price this would cut the cancer out?
Jungle Jim Hot Smoked
09:43 on
23 December, 2014
It’s 25 points because the SPFL rules were written in such a way that it doesn’t matter if the owner of the club is new, it’s classed a 2nd admin.
Now you can view this 2 ways. 1) it’s perpetuating the same club myth and/or 2) you’ll still get the football penalties of following that route, even if you escape the financial ones.
Although 1 is partly true, the rule (below) doesn’t necessarily mean the SPFL formally recognise them as such.
Page 37 of the SPFL rules section E5 states:
Where a Club, whether owned and operated by the same or a different Member,
suffers or is subject to an Insolvency Event which results in a deduction of points in
terms of these Rules and within 5 years of the date of such Insolvency Event suffers
or is subject to a further Insolvency Event which is not part of the same Insolvency
Process as the Insolvency Event then suffered, the points deduction applicable in
terms of Rules E1 in respect of that second or further Insolvency Event, shall be 25
points with the 15 points in Rules E2 and E3 being 25 Points.
Sunny – 20 degrees -way down south . Napoli beating Rube has added to the festive mood .
The Christmas choon countdown ———- Strictly vinyl 45 – day 23.
Lois Lynn ——–Every Christmas We Know ( Concept )
The Soul Brothers -Jingle Bells ( Money Disc )
Horace & The New Establishment -Christmas Version ( Money Disc )
Richard Ace -Christmas Reggae ( Coxsone )
Big Walter & The Thunderbirds –Watusi Freeze -( Myrl )
Good Morning to All.
I have not been particularly well over the last week being confined to bed and so have been away from the internet and all it offers.
In the course of yesterday, I received two separate calls from my older sons just to make sure that their decrepit oul man had not been running about George Square doing the Christmas shopping when the bin lorry went out of control.
Such phone calls and the maturity and concern of your own kids — let’s face it they will always be just kids in my eyes — takes you back a pace.
My thoughts and prayers go out to all who have been affected by the incident which is just tragic.
Like everyone I know the stretch of road so well, but in my own case I spent years looking out the ground floor windows of No 30 George Square where I had my first office and so I have walked every inch of pavement outside the building on literally thousands of occasions.
My thoughts and prayers also go to Martin Kane and his family at a time when he is seriously ill.
Things might not be prefect for some of us this Christmas, but we are so lucky in all that we have and enjoy.
Other matters later maybe.
wee minger ,
see the appendix
rule 16 clause 90 –
unless that club calls itself “rangers” in any form , prefix , context, then the points deduction shall be nil.
The SFA fine handed down to Celtic following Tommy Burns joining from Kilmarnock was an outrage;
Even more so as only 12 months before the Huns had been found guilty of tapping up Duncan Ferguson from Dundee United. They signed him for what was then a record British transfer fee of £4 million.
And their sanction for tapping up this British transfer record-breaking signing. A fine of £8,000!
When you compare the lenient punishment they got for that compared to the financial hammering the SFA dished out to Celtic – and bearing in mind the SFA had also at this time blocked us from playing at Celtic Park while it was being redeveloped, forcing us to rent Hampden which they again shafted us for with an obscene rental charge of £500,000 to play at the decrepit Mount Florida tip – then Fergus had every right to go after the SFA.
Farry got found out in the end. It only took 2 years for Fergus to deal with him. Many years on, we`re still waiting for Ogilvie to be dealt with for far worse…………
weeminger,
I’ve posted my prediction on this one before:
If the new club does go into administration, the crucial part of the SPFL rule book will be “is subject to an Insolvency Event which results in a deduction of points in terms of these Rules”
The administration and liquidation of the old club did not happen “in terms of these Rule”, it happened under the old SPL rules. So administration of The Rangers can be treated with the lesser penalty without having to get into the new club/ company debate.
Gordon_J backing Neil Lennon
10:15 on
23 December, 2014
I’d be interested to see if they tried that. I’m not saying they wouldn’t.
Glorious balance sheet
Those three of four shots of anxt ridden bears really did encapsulate the whole sorry state they’re in.
Its like the penny has dropped three years too late, and its not just about them letting their beloved club self destruct, its how to deal with the timmy ‘we told you so’ factor.
All told, its a nightmare.
Surely words from Lambias like:
“you won’t like some of the things I do, but they will be in the club’s best interests”,
coupled with the open-ended endorsement of McDowall as manager, really means that today he will be advising the SFA of another insolvency event in the very near future – i.e. Administration.
The rejection of Resolution 9 is being downplayed all over the press – my belief is that soundings were taken and they knew it would be defeated – it adds to need for the administration route.
There was a split in the Easdale proxy.
GordonJ
Weeminger
That would seem an ideal route for them to go down. Drown the detail in a sea of detail, league reform, etc. then hit them with a nominal fine backed up by the usual Soundbites:
Lawell says celtic need rangers or risk losing £10m pa
Even the most ardent celtic fans long to see a return of real competition.
Scottish football is on it’s knees.
They’ve been punished enough
It’s still rangers. A team in blue has weathered the terrible storm and continued to play out of ibrox, though not very well of late…,
It’s time to move on
A veritable smorgasbord of succulent lamb headlines to choose from.
HH jamesgang
horrid henry
There was a split in the Easdale proxy.
——–
Can you explain further please?
HH jamesgang
The Wee Wumin couldn’t talk – That’s her permanent state !.
South Of Tunis
10:10 on 23 December, 2014
Sunny – 20 degrees -way down south . Napoli beating Rube has added to the festive mood .
The Christmas choon countdown ———- Strictly vinyl 45 – day 23.
Lois Lynn ——–Every Christmas We Know ( Concept )
The Soul Brothers -Jingle Bells ( Money Disc )
Horace & The New Establishment -Christmas Version ( Money Disc )
Richard Ace -Christmas Reggae ( Coxsone )
Big Walter & The Thunderbirds –Watusi Freeze -( Myrl )
—–
Surely you’re making these up now ? :-)
Is this cognitive dissonance ? –
Former Rangers captain Richard Gough fears for the future of the club now that McCoist has left Ibrox. (Scottish Sun)
Thanks for all the responses to my 2 point question.
We are jumping the gun concerning Admin but that won`t stop me from making a false start as well!
Even a 15 point deduction, coupled with January sales, would make promotion far from certain.These interesting times continue.
JJ
Pogmathonyahun:
You lurking?
Keep the Faith!
Hail Hail!
jamesgang – Easdale reviously held proxies for Laxey, Margarita and Blue Pitch – one of these voted against.
PeteTheBeat @ 10 35.
” Surely you’re making these up now ? “.
No ——–sadly my powers don’t extend to creating shiny bits of vinyl / wish it were so, I would have saved myself a fortune.
By now they will have given up on plan A – winning the Championship.
Plan B is the play offs – and I’m sure there would be a bit of refereeing help along the way if needed.
phyllis dietrichson
10:43 on 23 December, 2014
jamesgang – Easdale reviously held proxies for Laxey, Margarita and Blue Pitch – one of these voted against.
——–
Cheers Big Ghuy!
HH jamesgang
I see wee Jimmy Durranty has been demoted to the youth team manager
Rangers don’t need to go into liquidation to rid themselves of the onerous contracts.
Administration would be enough. Once in Administration, they can get rid of people on onerous contracts, or alternatively, they can tear up the onerous contracts and offer them less-onerous contracts on a take-it-or-leave-it basis.
They will first of all try and sell all their big earning players in January and take it from there. One thing we can be sure of, they won’t go into Administration until after the season is completed.
Whenever and however it happens, this time they will come out of Administration. They do not have massive debt, so liquidation is not an option.
adi_dasler –
He’ll be out of his depth in that role without Ally to hold his hand.
Tom
” liquidation is not an option.”
You are such a spoilsport.
JJ
Straw poll – Has anybody ever heard of any of South Of Tunis’s selections ?
He ought to have his own radio show.
Think I read these onerous contracts are Admin proof, only way out is liquidation ?
Also sounds like a fair few court cases lye ahead, Sommers fella has told some of the owners of said contracts “see you in court” lovin it
What’s this I’m hearing about Izzy possibly getting the boot, surely it’s nonsense?
If RD punts him in January then that’s the last straw for me. Yes Izzy can be caught out defensively but in this current set up most of our attacking threat comes from our left side. Maybe move him forward to play as a conventional winger but it’s not the player who’s at fault here. What he’s being asked to do within an over exposed system, both attack wise and in defence is near on impossible.
I can think of many more in front of Izzy who should be getting the Axe but if this is true, then for me top of that list should be the manager.
HH!
ExSlaemuirBhoy –
No contract is “Admin proof”.
That’s why clubs like Dundee, Livingston and Motherwell tore up player contracts after going into Administration.
You simply cannot have a contract which says “cannot be cancelled in the event of insolvency”. An Administrator would laugh at such a clause.
WOOFT, just saw the John Brown video clip there from yesterday’s panto, a think he can kiss his complimentary tickets ta ta for a wee while.
the glorious balance sheet,
The reason the SMSM didn’t break into a wee smile is simple: they were greetin’ anaw. What planet does thon guy spoutin’ about their charity live on?
Glorious balance sheet I beleive that fergus chasing down and catching Farry was one of his and celtics finest moments.
When you think about it Farry was caught deliberately delaying a transfer of a celtic player until two old firm games had passed.
This was the CEO of the SFA.
No more proof was needed of conspiracy at the SFA.
I awaited the debate about why he did it(we all knew but I felt for the first time in my life we would see what really goes on and the sectarianism behind it). En masse the press never explored why Farry did it. Not one of them. I bought every paper, listened to every show. Only Richard Gordon on BBC radio mentioned it and astonishingly he said “I don’t even want to think why he did it”.
And so it passed without debate. More proof of the massive conspiracy we still see today.
Only today we also know that those who run celtic are part of that conspiracy……..
Tom Mc
Ah well, just what I read recently, me no being a lawyer I can get carried away a wee bit.
still live in hope for the demise of Scotlands newest club though, just to send a message to others hoping to cut corners when trying to start a football club
Oh for wee Fergus today…..