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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TBJ
K still at Celtic park whilst M waits outside to scream…o))
corkcelt
17:05 on 7 September, 2014
Gladly accept your hand – no hard feelings – hurling was the winner today – let’s put it down to pre-match nerves
Aiden Bhoy
Yeah it was a cracking day for a cracking match. Macca’s finish was special eh? Turned the clock back to contort his body for the strike.
Self determination is the key. How often has the Scottish Nation got a Government that it voted for in a general election? That wrong will be righted permanently with a YES vote.
Labour will be in trouble at Westminster without the many safe seats that they currently have in Scotland. Those are 2 big changes that will occur. All the Bullindon and Milliband promises reak of desperation and panic. They have had generations “to take care of us” and they have not done it. They have squandered the family silver. A parcel of rogues. Hell mend them.
Great fun as the Mastro’s team win win 3-2. Good walk in the sunshine all the way back to The Cafe. Pint time HH
Bcw
Macca was the best striker I seen at Celtic bar Henrik. Was some strike, Lubo could still play yet.
reak = reek doh!
Indeed hurling was the winner. I won’t noise you up before the replay.
So far, so good, for Martin’s Irish Warriors ….!!!!
Ernie
Drove by the Bristol Bar on my way home. Several of them were congregating outside. They appeared to be about to drive away in a car cavalcade electioneering.
“No” Banners and Butcher’s Aprons aplenty.
Tbj
I know. No offence was taken. Not in the slightest. Banter always good.
Delighted Charles and Corkcelt amigos again. Two of the most august Tims on this esteemed blog.
HH
Now I’m thinking – if only Tipp took the point at the penalty – no matter – it’s done now
BT
When we walked from CQN corner to the stands at 1:45 there were a load of young girls standing at the rails in front of the entrance . I suspected they were gonna stay there throughout the match and be at the front when Frankie bhoy came out later ;)
At least wee Louis didn’t whitey this time .. Good luck to the wee boy .. Putting thousands onto the crowd for a charity match .
Aiden Bhoy
Lubo was great, kept asking to come off though. Must’ve been tough for the guys, but they put on a great show for us.
Liked the Celtic fan’s solo effort…….to kick start Glasgow’s Green and White song……he succeeded too
Can Labour ever win without Scotland?
History suggests that it would be difficult but not impossible for Labour to win.
BY GEORGE EATON PUBLISHED 12 JANUARY, 2012 – 13:18
History suggests that it would be difficult but not impossible for Labour to win.
Ernie Lynch…..
Scottish independence referendum is win-win for the Conservatives. If Scotland votes No, the Union is saved, if Scotland votes Yes, the Tories win a huge advantage over Labour. While Ed Miliband’s party would be stripped of 41 MPs, David Cameron’s would lose just one. This has prompted some to suggest that an independent Scotland would leave the Tories with an inbuilt “permanent majority”.
Need to check but, in recent history, I’m pretty sure that 1997 would have been the only General Election that Labour would have won without a Scottish vote.
We all see how Tory Blair turned out,ey?
67Heaven … I am Neil Lennon ….The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors
16:57 on 7 September, 2014
‘England and Scotland would declare their own wars / conflicts based on their own individual internal national issues…’
###
That would suggest there would be more wars, not fewer, than at present.
Anyone know anything about the following?
Apparently panicking in the face of latest poll, George Osborne is talking about even more new powers for Scotland should we vote NO.
I have heard an opinion that Osborne making such statements or promises within twenty eight days of polling is against referendum rules.
Turning back the clocks Brattback still took 6 touches when clean
Through on goal.
Good day out and although initially said I wasn’t going glad
My mate ignored me and got us all a ticket.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Aiden Bhoy
17:12 on
7 September, 2014
Bcw
Macca was the best striker I seen at Celtic bar Henrik. Was some strike, Lubo could still play yet.
Sept 27 for the replay at the hurling, Celtic in my home
town, the Ryder cup………oh Mrs Nye’s birthday and our
anniversary.
McGeady put Ireland 1 up after 25 mins v Georgia
YYYYYYEEEEEEEEESSSSSSSSSS …….!!!!!!!!
ernie lynch
17:21 on 7 September, 2014
Are you winding me up, with that logic ……hahahahahahaha
ryecatcher
17:19 on
7 September, 2014
Can Labour ever win without Scotland?
History suggests that it would be difficult but not impossible for Labour to win.
BY GEORGE EATON PUBLISHED 12 JANUARY, 2012 – 13:18
History suggests that it would be difficult but not impossible for Labour to win.
Ernie Lynch…..
Scottish independence referendum is win-win for the Conservatives. If Scotland votes No, the Union is saved, if Scotland votes Yes, the Tories win a huge advantage over Labour. While Ed Miliband’s party would be stripped of 41 MPs, David Cameron’s would lose just one. This has prompted some to suggest that an independent Scotland would leave the Tories with an inbuilt “permanent majority”.
Need to check but, in recent history, I’m pretty sure that 1997 would have been the only General Election that Labour would have won without a Scottish vote.
We all see how Tory Blair turned out,ey?
ernie lynch
I had been of the same opinion about Milliband being some forty Scottish MPs down at the 2015 Westminster Election.
It may not be the case.
It appears that either through incompetence or just contempt for the Scottish electorate, Westminster apparently has not formed any hard and fast stance regarding Scottish MPs should there be a Yes vote.
My own view is that this because should YES win narrowly – you cani nterpret narrowly to suit your own viewpoint. – Better together will move heaven and earth to have a second referendum. I believe that about fifteen months ago, the were actually talking about a second referendum.
Daughter & 4 kids arrived. Went out to let them in and missed the goal.
quonno
Can’t figure out why they are so desperate to keep Scotland myself…………
Maybe it’s to do with Ernie’s opinion that we are all too “stupid” and “gullible” ?
C’mon Ernie correct me if I’m wrong about your opinion that approximately 50% of Scots are “stupid” and “gullible”.
Quonno,
You have my attention……WOW
If this is true then I find it absolutely incredible that this question has not been addressed by the political hacks, and to be fair most of these are proper journos compared to their colleagues on Sports Desks.
BIG-CUP-WINNERS
17:29 on
7 September, 2014
quonno
Can’t figure out why they are so desperate to keep Scotland myself…………
As I have posted several times. Unless they are not too bright, and I do not believe that for a minute, I cannot get my head round why anyone would want to keep subsidising a crowd of whingeing Jocks.
Excellent piece in today’s Herald by Fintan O’Toole which among other things touches on the responsibilities of voting YES.
ryecatcher
17:19 on 7 September, 2014
I’m familiar with the argument.
It was debunked by the WingsOverBath guy whom the nats regard as some kind of Delphic Oracle.
But supposing it was true, what effect would it have on a separate Scotland? (And this is reason the Wings guy was so anxious to deal with the argument).
A separate Scotland would be competing directly with England, not as a part of the same state, but as a direct, foreign competitor. A competitor with a far larger economy and a far larger market.
Where would businesses chose to be based or to operate? The banks, the financial service companies, the manufacturers etc.
In a country with a government permanently committed to a laissez faire, free market economy, with no prospect of an internal challenge, or in Scotland, a country with, on the basis of the nats assertions a socialist, or at least social democratic government committed to a welfare economy with all the taxation and legislative implications that has for business?
What do you think?
quonno
17:34 on 7 September, 2014
‘a crowd of whingeing Jocks.’
###
It’s only the nats who are whingeing.
Just as it’s only the nats who are saying we’re incapable of running the country on our own.
Ryecatcher
http://www.bbc.co.uk/news/uk-scotland-29100372?
Draw your own conclusions………. would shame LNS and SFA.
Bugger great goal by Georgia.
ryecatcher
17:32 on
7 September, 2014
Not good at the link thing.
Goo9gle Scottish Labour MPs at Westminster. This should bring you to a site headed News for Scottish Labour MPs at Westminster PM could face calls to postpone election.
Hope this helps.
Holy Moly whit a goal..1-1
Some goal for Georgia.
Hope you’re well paid for spouting this 24/7 Che
1-1 in Georgia.
25 yard screamer equalises v Ireland after 38 mins
BIG-CUP-WINNERS
17:37 on
7 September, 2014
Ryecatcher
http://www.bbc.co.uk/news/uk-scotland-29100372?
Draw your own conclusions………. would shame LNS and SFA.
to paraphrase on of history’s great whores. ‘They would say that’.
Goalie??