Warning from Blue Knights comes home to roost


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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  1. Magnificentseven on

    ….PFayr supports WeeOscar





    20:43 on



    7 September, 2014








    No other significant political party wants a Yes vote….



    Either the members of other parties are being disingenuous or it is a vote for SNP







    So, are you suggesting that none of them will run in an election after a yes vote??

  2. Some people are hoping for a labour government under independence yet labour don’t want independence. I don’t understand.

  3. Pf Ayr



    You do know my family lives in Scotland right?



    That is one of many reasons why I care.

  4. Stevo


    Do you think that there will be an adverse reaction in the financial market in the event of a yes vote? Do you think that there will be Northern Rock style queues to withdraw savings, will Scottish Banks some form of guaranteed protection from the BOE?

  5. Gene's a Bhoy's name on



    may i hazard a suggestion that it may have been the former team he played for .



    Naismith sooooo clooose

  6. it really is getting embarrassing the line of argument that says if you vote yes then you are voting for salmond, and if you vote no then you are voting for the OO



    surely people can come up with better than that



    the most you can say is that if you vote yes then you are entitled to be called a seperatist, and if you vote no then you are entitled to be called a unionist, because either way thats exactly what your vote is about, but anything else people infer from it is bollox



    all the other pish watter about salmond, snp, OO, BNP etc is pretty lame

  7. ....PFayr supports WeeOscar on




    But you don’t and you don’t have a vote



    If Caledonia is so wonderful …come and live here

  8. Snake Plissken



    20:46 on 7 September, 2014



    But you’re attributing to Rowling your own beliefs.



    You believe that the welfare state and the nhs are doomed.



    And you assume that Rowling believes that too.



    She doesn’t.



    So your criticism of her are nonsense.



    Frankly, you’re a nutter.

  9. thebhoywithmcgraininhisside on

    syd negakev



    20:48 on 7 September, 2014


    Some people are hoping for a labour government under independence yet labour don’t want independence. I don’t understand.



    Labour don’t want independence because they need the scottish seats to win westminster. Scottish labour mps don’t want independence because they’ll lost their job, with its attractive salary, superb allowances and pension package, and 4 to 5 times inflation wage increases.

  10. Magnificentseven on

    ….PFayr supports WeeOscar





    20:51 on



    7 September, 2014





    Magnificent seven



    I wrote what I wrote …fairly straightforward




    A very straightforward lack of understanding, it’s a vote for our future, not a vote for the SNP.



    The fact is the other parties need to do what their bosses in London tell them to, of course they are saying no, but just watch the scramble for your vote if it’s a yes

  11. No a bad display from WGS’s boys, no great, but it’s against the best on the planet.




    The Vote thing.



    Losing out big time Ernie.



    See instead of making snyde remarks, demeaning comments, attempting to make other posters look stupid, IMO all it is doing is alienating you, pushing the undecided away from your goal.



    If your posts had any substance, fair enough, but as ever, totally devoid of anything, regurgitating past remarks when the whole world has moved on, maybes at the time Eck did believe in what MT said she would do, but she didn’t stick to her promises did she, you know the small print, the rape of scotland, the shutting down of most of the industry, nothing about that in her public utterings, maybes he today has had second thoughts about the torry policies, maybes he realises that scotland will be donald ducked under continued brit rule, anyways, he is not the point, thankfully most scotsmen realise that the snp are not the issue, pity you don’t, still living in the past Ernie.



    Have you moved on Ernie ?



    The parties you support haven’t moved on, they are still delivering the same FU policies, still supporting the fat cats, still crapping on the poor, and you want people to support that, I wonder why ?



    Me thinks not, you sound more like you are living in the late 1600s than you ever did.



    We are not all stupid and ignorant Ernie believe it or not, neither are you, act like it.



    Weefra, you could be right on yer man, he is getting paid from someone, nothing surer.




  12. I’m posting this again because I think it highlights the frightening aspect of the nat mentality as exhibited by snake.



    It’s from the Socialist Unity website.








    Jim on 3 September, 2014 at 11:29 pm said:



    I chaired a referendum debate last night – of course I was equitable and retained a neutral position. However, best question of the night came from the local RC catholic priest to the yes scotland speaker: “the Better Together speaker (a local labour councillor) has accepted that he can understand why people have taken the decision to vote yes and given some reasons for that. Can you give me a reason why good, decent people are voting No?” Answer from the yes scotland speaker – No!

  13. saltires en sevilla on

    Harvest Moon or zupermoon tonite …or tomorrow nite?



    Looking fairly fu’ from West Renfrewshire…hic!

  14. Here’s a conundrum I can’t get my head around.



    Scotland gets independence…….Scotland then immediately applies to surrender independence to the European Union……….hmmmmmmm

  15. jude2005 is Neil Lennon \o/ on




    Oops nerr noticed that. Please tell ME when he will be back?? Like him btw but we really need a player who is less injury prone imo!!

  16. thebhoywithmcgraininhisside



    I understand that but handing power to a party who actively campaigned against independence seems a bit stupid.

  17. thebhoywithmcgraininhisside on




    20:58 on 7 September, 2014



    Independence and sovereignty are not the same thing.




    20:57 on 7 September, 2014



    By your own admission you set out to goad me the other night because you disagree with my views.



    You failed.

  19. ....PFayr supports WeeOscar on

    Magnificent seven



    Why are Yes voters so rude to those with differing opinion …..



    I understand perfectly




  20. DD



    At least he never came back and denied it. :-)) Yip, soooooo looking forward to out wee tet a tet next saturday, and seeing our new bhoys. Cannie friggin wait. Woooohooo. KTF



    Weefra HH praying to Wee Oscar.

  21. ….pfayr supports weeoscar



    I don’t think that makes sense. Parties will exist after this. This is about you, me and everyone else deciding if we want to be a self determining nation. Not about blindly voting with a party line






    Don’t know. Seems unlikely. I’ve heard companies saying they will move if it’s a yes. So what? Bp – pleas go ahead and leave. (Mind and deposit the decom costs with the Scottish government) someone else can run the platforms. Bet they don’t though and I really hope they are not allowed to do it from London as an option

  22. Magnificent seven



    Why are Yes voters so rude to those with differing opinion …..



    I understand perfectly







    I’ve been saying it for days, why?

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