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.
[calameo code=000390171586f6fbaa2ba lang=en page=122 hidelinks=1 width=100% height=500]
2,690 Comments- Pages:
- «
- 1
- ...
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- ...
- 71
- »
Jude
Your opinion not mine
Btw..re Forrest ..I agree with the spirit of your answer
No way was that wall far enough back
Cmon Ernie
No answers, are you really just a cut and paste, politician?
Explain why you think Scots are incapable of governing their own country?
Your ..even …FFS predictive text …apologies
Damn it………can we just ban the troll (s) while that game is on……?
HH
….PFayr supports WeeOscar
21:13 on
7 September, 2014
Magnificent seven
You’re definition of rudeness is clearly different from mine
To suggest I have a lack of understanding when all it is is a different opinion is rude
You clearly do as you think we are voting for the SNP, that’s not rude, it’s accurate
We’ll just wait and see this week.
If you thought the press whipped up mass hysteria during the Danzig/Polish question, you ain’t seen nothing yet.
Great Britain don’t lose too many battles, as history proves.
They are not about to lose one to the Jocks of all people.
Wait for scaremongering of the highest order.
Mass hysteria.
A tearful queen, caught on camera.
Lump in the throat appeals from Cameron, Obama, Clinton Muhammad Ali……you name it…
This fight has just started.
Britain (England) has many friends in this world.
Watch them close ranks.
No will win this – have absolutely no doubts about that folks.
It’s nailed on.
….pfayr supports weeoscar
Companies leaving in my example makes zero difference and in fact may be a positive. The oil will still be there and smaller operators can produce more effectively in many cases. …. American and UAE ones already in the North Sea doing just that
I think Whittikers new hair is going to his heed!!!
The only reason, let’s be honest here, that WM is terrified of losing Scotland is, the oil and whisky revenue they will lose. The english economy will collapse. We all know that. So, if we hold all the aces in this, why can’t our economy boom with this. Makes sense to me. KTF. Don’t be afraid, we are the poorest oil producing country in the world because we are propping up a government who despises everything we stand for. Socialism.
Weefra HH praying to Wee Oscar.
Ref is a homer here. Gerries should be down to 10 men
ryecatcher
21:05 on 7 September, 2014
It’s all duck or no dinner now.
BIG-CUP-WINNERS
21:16 on 7 September, 2014
‘Explain why you think Scots are incapable of governing their own country?’
##
I’ve never said that.
It’s the nats who are telling us we can’t go it alone.
We need a currency union.
We need to be in the EU.
We need to be in NATO.
We need to have the queen as head of state.
Why do the nats say these things?
Do they think we’re not capable of doing things on our own?
Lads
They know it’s not vote for salmond or nats
They continue harping on that line for a reason
Can mibbe see a German player getting booted up the erse before the end of this game.
TamGemmellCSC
Mccarthur has made the side poorer
I am struck tonight at how quiet the Germans have been in Dortmund around the stadium.
I thought they were usually well noisy in Dortmund
Quite like thon new band Royal Blood,wouldnt wear their t-shirts though.
Random thoughts csc.
Big George
Should be down to 9
Kikinthenakas
Magnificent seven
Stop being obtuse ….
SNP are the only political party advocating a Yes vote …I feat you fail to understand
Could ferr go wan oh those big German pints just now!!!
stevo
wee eck says that it will be sterling, a sterling zone just lie the euro zone where the central bank calls the tune and just like the ECB imposed austerity measures in Europe the BOE would be able to do the same in same in Scotland. Independence my erchie.
Say NO to the Dominion of Scotland.
HH
WeefratheTim
21:17 on 7 September, 2014
Any notion that an independent Scotland would be a left wing country is delusional nonsense.
Right scotland – big last 15 please!!!
Saltines
As you continue harping that it’s not for the same reason
Great tackle from big Tam Gemmell v West Germany
► 0:08► 0:08
http://www.youtube.com/watch?v=Lnja51VticQ
26 Jun 2014 – Uploaded by James Murphy
Tommy Gemmell vs Helmut Haller 1970, world cup qualifier.
Missing: boots
BIG-CUP-WINNERS
Why do the nats tell us we can’t run our own country by ourselves?
Why?
Naismith been good, but whole team looking a bit leggy now. Wee maloney coming on – take mccarthur aff
Emdae ever been to the beer festival in Germany??
Stevo
Oil will save us
Jesus wept
BCW
This whole blog know that Ernie is the C&P agitator. Sad
Stevo
apologies for repeats but watchin’ the game as well
HH
Does Anya play like this for Watford every week ?
Maloney for naylegs (who hasnt dived all night!!!!)
Mulgrew has been much better tonight.
Ernie
Can you give me 1 thing that’ll be better in my life after a no vote, not the same, better? And not some silly Maybees aye Maybees naw promise of something Devo Max would have assured us of.
MWD says AYE
….PFayr supports WeeOscar
21:23 on 7 September, 2014
Don’t forget the whisky.
Wee Shaun coming on