o Newco Rangers have £1.2m in the bank and the courts have just arrested £620k, leaving circa £600k available. In early September. Football clubs have their cash high water mark in June, after season ticket money arrives, with the low-point coming the month before, so is liquidation just around the corner? Not necessarily.
The club has a couple of significant problems: it’s short of money and has significant monthly outgoings, but it also has assets, and may have buyers for those assets.
Murray Park is an outrageous folly and should be sold immediately. Protests to secure it have been acts of self-harm; swallow your pride and sell. This is a football club in acute danger, pretentions of grandeur, and Murray Park is exactly that, should be shed immediately. Albion car park and the Edmiston House office building are superfluous property assets and could be sold without stopping football operations.
Mike Ashley has an asset Newco want back – stadium naming rights. He could repatriate these rights as a sweetener in a deal to buy Murray Park, Albion and Edmiston. Newco could leaseback the training ground, Sports Direct would be able to build a stonking big tracksuit shop on the Albion site and the club could boast to fans that they negotiated back Ibrox naming rights.
This might sound like a bitter pill but it will keep the lights on a little longer, makes irrefutable sense and is relatively painless. The original Rangers existed for over a century without Murray Park, one of Scotland’s best run topflight football clubs’ Motherwell, train on a school sports field, Newco Rangers could do the same. A little humility right now would be good for them.
There remains a problem: cumulatively, these assets are unlikely to be worth more than the £4m the club hope to raise in their proposed (not underwritten) share issue. This is still not enough to see them through the season. Expenditure for the last season accounts are available, 2012-13, averaged close to £3m per month. The club will need close to £20m between now and season ticket renewal time.
Creditors must be paid or the club will go into administration. To pay creditors, without sufficient income or credit, more assets must be sold, specifically Ibrox.
If they go into administration before selling Ibrox, don’t expect events to follow a similar path to the one Duff & Phelps took when administering Oldco Rangers. Duff & Phelps were appointed by a liquidation specialist with a specific remit. They even tried to sign a player. Newco in administration would follow a more conventional route: redundancies would take place and assets would be sold to pay creditors.
Ibrox is the only significant asset administrators would have to sell. It could generate enough to pay creditors in full and get the club through to the end of the season. Finding a buyer would be the main challenge, but as we all now know, the club can stand or fall, but whoever controls Ibrox can continue to get a rental return from successor club.
An administrator could dismiss the manager and some other highly paid staff, reducing costs to a more manageable level, and pay ordinary creditors in full.
Newco Rangers need to finish in the top four to be in with a chance of promotion, which would be a challenge, but not an insurmountable one with the right manager in place. They could be a top flight club next season.
This is not how fans wanted the Newco to progress but after they were unable to raise more than the £5.5m Charles Green’s consortium put on the table to buy Rangers assets, the future was mapped out.
Costs for police, insurance, electricity, IT, office staff, security and the million other items needed by a football club who occasionally host 50,000 people will be no less than circa £17m p.a – before you employ a footballer.
Newco’s income could rise from the £19m they earned in season 2012-13 (though possibly not this season), but there’s just not enough money to run a football team. Scottish Premiership football would be a chastening experience, the levels of austerity required going forward would be draconian.
Fans can protest that they are watching the same old club all they like, but it’s not going to look anything like the Rangers you or I have ever known – and I knew them under John Greig. And here’s the nub, the most optimistic financial projections are based on Newco selling the same number of tickets Oldco sold. Would a Newco competing alongside St Mirren and Kilmarnock sell any more than the 23,000 season tickets they’ve sold this year?
The long-term financial fundamentals remain unchanged. In 2012 the Blue Knights concluded there was no viable future for football at Ibrox if Rangers were liquidated. Two years later all the evidence reaffirms that position. This is a dead multi-club franchise.
Looking forward to the Maestro Match tomorrow. See you there.
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C’mon IIIIIIRELAAAAAND…..make my day …..!!!!!!!!
.
Happy Fathers Day to All of CQN whether in Australia or The Scots Republic..;-)
If l had One wish Today it would be to have Finished my last of many many email conversations with Pablophanque or better still for the conversation to be still going..
Hopefully you are looking down smiling..
KTF..
001
2 point game. Brilliant stuff.
Huge call in favour of KK
3 DAYS OFF FROM BLOG, COME BACK, BUT STILL IT’S POLITICS!
Sheflin on.
Did Scotland once before play Germany on a Sunday night in a competitive game?
Seem to remember the Hun journalists raving about Drunken Ferguson’s world class volley off the German crossbar ……..international football worked out good for him after that,ey?
Why did Scotland play Germany at Ibrox on a Sunday night or has my memory completely gone?
One point.
Just back from Celtic Park. Good day, nice weather and lots of former heroes on the pitch.
Frankie Bhoy scored a spectacular athletic goal to score Celtic’s first and bring the tally to 1-2 early in the second period.
Celtic ran out 3-2 winners in the end.
Parity.
Sides level/ 2 mins left.
Hurling is magic !
All square – two minutes lefy
All square.
Incredible drama.
Cramp kicking in
One minute additional time
Charles..,
Stretch your leg out and pull back on your toes
ernie lynch
16:50 on 7 September, 2014
England and Scotland would declare their own wars / conflicts based on their own individual internal national issues……if England fall out with the Iraqiis, for example, Scotland won’t declare war on them….. !!??
Gearoid
I understand the cost and time involved for ” foreigners ;) ” coming to Celtic park.
I’m not getting at you or the far flung celts
Local celts who would sooner takeover the blog with party political broadcasts that bore the nipples off the majority of CQNrs .
IMHO they don’t have a life
Very hard call against Hogan.
Foul against Hogan charging????
Whats bets draw
Incredible.
TBJ
It’s Celtic Park so they have to get the horses out :o/
All the English forces have either disbanded or vastly reduced their mounted sections, because they cost an absolute fortune for negligible return.
They are simply exercising the geegees so they don’t go stir crazy.
HH
Wow that was some game!
not expecting the same excitement from Georgia v Ireland game but come on you boys in green.
Can’t catch my breath after that – fantastic
Replay on the 27th
Its all over. What a game. Just glad a few non GAA people got a chance to watch it. Now ye know what we are on about when we talk about hurling.
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
15:45 on
7 September, 2014
SYDNEGAKEV
It might reduce their grants or charity status. Just a thought.
———————————————————
Or maybe the benefits that necessitate the need to turn to a Food Bank won’t be stopped ?
Draw
What a match
Tbj
Foreigners?? Lol.square go big mhan.
Some comeback by Tipp
BCW
Good to meet you today but pardon me for not introducing myself at the corner .
It was a very good day … Sunshine .. Legends .. Goals .. And a right few screaming lassies .
I welcome a charity match every year with names like Zola .. Scholes .. Cole .. Ferdinand .. Petrov .. Moravcic .. Mcstay .. Venegoor of hesselink .. Hartson … Frankie bhoy
I thought Jackie and Simon looked very fit and up for it and have never seen mark burchill put so much effort into a game
Incredible drama at the hurling,lost a tenner, not a
lot of harm done,will leave the boys who know what
their talking about to the after match analysis.
Need to go to replay – first Tipp all Ireland I’ve missed in a long time – watching on tv is absolute torture
Gearoid
I attended the rugger yesterday and there were about 15 Leinster fans beside me
The banter was great .. Tattie pickers .. Sweaty socks … Etc
No malice .. Just a good laugh and all drinking pints too
No offence made by the ” foreigner ” comment . My brother lives in kent and I wind him up with that too ;)
I know nothing about hurling but I’m sure Tipp are kicking themselves for all those missed goal chances.
Look forward to replay, will it be in Dublin again?
OK off to watch the more sedate Ireland V Georgia. Cyber handshake to you charles if you wish to accept it re our bit of pre-match misunderstanding.
Great day at Celtic Park. Great to see the maestro back in the hoops
Keeping the Faith, Yes it will be back in Croke Park.