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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Stairheedrammy
I’ve got one leather elbow patch if it’s any use to you ;)
ryecatcher
18:06 on
7 September, 2014
Eddieinkirkmichael……
I seem to remember that the SNP assisted Thatcher coming to power in 1979
Paul. Just hoe long are you going to allow posters to recycle this old lie.
I wonder if Rio had time to have chat with W D and tell him he is a professional footballer and he has a contract with Celtic and to get his head down and get on with it!!
Snake
I hear Gibraltar defence is solid as a rock and their attack could make monkeys out of us
Ok .. Apes … but that doesn’t work the same
Hat .. Coat .. Taxi :(
Quonno…….
The turkeys voted for Xmas if you think about it….
In 1979, the SNP Parliamentary Group voted against the Labour Government in a Vote of No Confidence, causing the dissolution of the government and subsequent election. The then Labour Prime Minister, James Callaghan famously described this decision by the SNP as that of “turkeys voting for Christmas”. After the 1979 general election, the SNP had only two seats, representing a net loss of nine seats. Margaret Thatcher became the UK’s Prime Minister.
TBJ, big Lucas Z, was lucky enough to be sat next to me at breakfast this morning. Owzat me old cocksparrow. He didnay have the fat boy fry up that i did right enough.
BCW
Unfortunately not during his peak earning years
Wages on offer down south are just too huge
Probably the quote of the whole referendum affair.
In the light of recent poll, Loopy Rupe is of the opinion that folks world wide are getting fed up with politicians and old establishments.
Now just who was helped so many of these chancers into power.
Realistically the best Scotland can hope for the nicht, is further evidence Gordy is building a team.
Even a point would shock, stun and amaze.
sp
Draw is better than a draw???
If Beyonce Knowles.had married Roy Castle?
Than a win. ooops
ryecatcher
19:11 on
7 September, 2014
Quonno…….
The turkeys voted for Xmas if you think about it….
In 1979, the SNP Parliamentary Group voted against the Labour Government in a Vote of No Confidence, causing the dissolution of the government and subsequent election. The then Labour Prime Minister, James Callaghan famously described this decision by the SNP as that of “turkeys voting for Christmas”. After the 1979 general election, the SNP had only two seats, representing a net loss of nine seats. Margaret Thatcher became the UK’s Prime Minister.
With his approval of the forty per cent rule, Callaghan was the real turkey who voted for an early Christmas.
David Marshall in front of McGregor is no shockarooney really…..
Voted the best goalie in the EPL last season, even though his team went down.
Great keeper……Class act.
lennon’s passion
19:02 on 7 September, 2014
‘What percentage of people on this blog wear cardigans with elbow patches.’
###
Is that with or without the Stone Island label on the sleeve?
What will happen to elgins army ?
jude2005 is Neil Lennon \o/
Better for Scotland.
I only support Ireland when they are not Scotland’s opponents in sport.
We’re in the same group. I would be happy if we both qualify but my preference and support is for Scotland.
In addition to earlier post. I believe that a couple of days ago, someone was on here advocating some kind of 75% rule for present referendum.
quonno
As one of the more regular purveyors of the lie that No voters and the OO are bedfellows, you cut an unconvincing picture when complaining of lie peddling.
Why should it bother you anyway? None of the Yes voters here are SNP guys, remember?
Delighted big Marsh is in goal. Think we will need him in top form tonight.
Mon The Scots!
0-1 Strachans marauders
Scottish bench ?
big-cup-winners
18:59 on 7 September, 2014
Thanks for that
Davie Farrell ? Is that the guy who used to be on Radio Clyde ?.
setting free the bears for Res. 12 & Oscar Knox but saying no to CQN racists
19:17 on
7 September, 2014
quonno
As one of the more regular purveyors of the lie that No voters and the OO are bedfellows, you cut an unconvincing picture when complaining of lie peddling.
Why should it bother you anyway? None of the Yes voters here are SNP guys, remember?
If they are not bedfellows, why, even today is Better Together trying to disavow them.
Yep. Like or Lump it, Better together is currently in bed with OO, UKIP and BNP.
Ain’t heard anyone from Better Together telling them we don’t want your votes.
leftclicktic
19:08 on 7 September, 2014
Sipsini & Lennybhoy
We can walk the streets in safety now the debt has been cleared to csc :)))
CRC :(( deary deary me
till later all
Poor performance but a great win for Ireland
Now
C’mon Germany!!
B-)
Further to last post.
As I have posted before. I may tell the truth in an unpleasant, to some, fashion.
Lies I don’t do.
don’t see any response to my remarks about Callaghean being the early Christmas Turkey.
adi_dasler
Puzzled me too………….assumed it was the ex Hibs player.
LITLOTCP
Thanks for the tip, now on FS1.
Maestro
Thanks for the link to Aiden’s goal.
Wonderful two footedness and great strike.
HH
Kilkenny corner-forward Eoin Larkin is under pressure to pick his true love and he’s on a deadline.
The hurler, who scored two points in the epic finale against Tipperary today, is reportedly due to get married on September 27, the same day as the rescheduled All-Ireland final.
The Kilkenny – Tipperary replay has been fixed for Saturday, September 27 following the draw at today’s Croke Park clash.
Quonno
As I said. once you peddle that nonsense with such relish and frequency, you lose the right to complain when you get a little back.
Stop squealing to Paul.
quonno
The professional troll never answers when your point betters him………….never.
Plenty of Celtic and football things to discuss :-)
BIG-CUP-WINNERS
19:24 on
7 September, 2014
adi_dasler
Puzzled me too………….assumed it was the ex Hibs player.
=============
Wasn’t at the game today but a Davie Farrell was a pal of Tommy Burns from the Calton.
Might have been him.
BCW
OH well
Anyway another plus for charity
Bhoylo
Wee Aidan was magic. Hope he is off form at Celtic Park. ;))
CaltonTongues#TeamOscar
It looked like him.
Delaney’s, I watched a recording of the festival you and Ryan were at.
Plenty of hoops on show when Fran ‘ Grizzly Adams’ Healy was belting out Why does it always rain on me.
It looked like a great festival with the crowd jumping about daft.
The new healthy living, tee total & no smoking Paul Weller was good.
Glad Aiden got the winning goals as it will hopefully get Houghton and some greetin faced fans off his back.
It’s good big Marshall is getting a start for Scotland tonight although Charlie in midfield might be a weakness the Germans could exploit if he plays like he did in midfield in the Maribor games.
What a day, seeing double as I type….sat in the best seats in the main stand, went out for a cig as you are allowed to do that in the posh seats…?
Had two wee lassies asking me for an autograph as I went for said cig .. God knows who they thought I was!
Still, another magic day at Celtic park.HH