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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Oh watch BBC 1 news now
Gideon on
……….does this mean it’s NOT possible to exit Liquidation?
(Why The Face!?)
Scotland. Bitterly divided from birth……..
Ernie…,
Me I don’t care what the nats say is needed, if the vote goes for independence I expect they will be history after the first free Scottish election when the real decisions will begging to be considered, as I said they will only be tolerated as long as they are useful then ditched for a more representative govt. all those things they say they need will be considered and decisions will be made by subsequent govts.
Me, I would prefer a Scottish pound linked to the Norwegian or Swedish currency as they appear to be a lot more stable.
I personally think linking us to the pound is a stupid idea as, as soon as Scotland gets independence there will be a run on the pound which would write off a considerable amount of wealth immediately.
As for the queen, she’s trying to get back to Rome Liszt the first of Scotland the first catholic monarch in 500 years would be a laugh, until we go republican which I expect would happen pdq :)
Neganumpty
“You know all those people threatening to attack no voters at dinner parties etc if they complained again? You remember that tactic? Do you think it goes one way?”
Was that before the after 8’s were passed about?
Ridiculous!!
After the vote Scotland’ll have its very own Kristalnacht (or will that be Kristalnicht?).
;)
i dont trust men who dye their hair.
there i said it,
The Battered Bunnet
“The bullying of Ernie Lynch…”
As a concept, that’s up there with “the exit from liquidation”
________________________
Comment of the night I’d say.
weefra
London’s interest rates will be your interest rates with an independent Scotland wanting to tie itself to the pound, Wee Eck has already stated that it’s Sterling for him and it’s his Government that will be negotiating after the Referendum.
Monteblanco
Trident is not part of the vote, it will be down to the first Scottish Government, following a General Election in Scotland, to determine which policies to pursue but you want to get rid of Trident but join NATO who have Nuclear weapons, NIMBY?
HH
PFayr
So let me get this straight.
Ernie has only ever acted in a bullying manner towards me in conversation/s with me. Never towards any other posters in conversations with them?
I must read one helluva lot of invisible posts from ERNIE!
MWD says AYE
ernie
No such behaviour down this area. Paisley, I used to live in Linwood, can see where some people are, maybe coming from, though don’t agree with it one bit.
pfayr
Can anyone on, any blog, site, telly programme, news programme convince me that Scotland cannot govern ourselves successfully? I ask again, if Scotland was such a nonentity to the UK, which they continually derive us to be, why the hell are they sending everybody but her maj up here to get us to stay in the union? Give you all 3 guesses. No, make that 2.
Weefra HH praying to Wee Oscar.
Neg
Stick yer media house propaganda up yer jacksie Jack.
Would love WGS as Celtic manager again but ain’t gonna happen…..
He has more integrity in his little finger than Walter Myth ever had when he walked out of an unfinished job to accelerate the demise of Deadclub with his reckless spending.
WGS has the makings of a great international manager, who will punch well above his weight with limited resources.
The Myth and his ‘great record’ at Scotland…….Exactly that……a Myth!!
PF
How’s tricks?
With few exceptions, we’re all pretty much anonymous on here. I say pretty much, in fact I know many of the posters personally, as you do too, and anonymity is a relative state.
It’s the CQN community thing. I think I must have met a couple of hundred CQNers in my time, some from down the road, some from down under. I’ve never met a CQNer I didn’t immediately like.
I’ve never met Ernie Lynch. Maybe others have, I don’t know.
If you’re looking in tonight Ernie, you don’t seem altogether ‘human’, if you understand me. My impression is (such impression being given and obtained equally) that your CQN persona is a deliberate fabrication.
To my mind, “Ernie Lynch” is, and has been from the off, an agendised caricature. The character is invented, but the agenda has been “pedalled” for a long time. Whether that’s the intention of an individual riding solo, or of something more coordinated, I have no idea of telling.
It comes across pretty much as an invention though, and like the telephone and the pneumatic tyre, it can’t be bullied, only used for the purpose intended.
No harm mind.
TBB
*groans*…….
ryecatcher
22:26 on
7 September, 2014
Bang on !
WGS has changed that team, we could have got a point from that game.
Neganon2,
hold on a minute mucker,at no point did I include you in my comment,
I only made reference to a comment that Ernie was bullied,
at times he does come across as a smart ass,
I only wish the post I made earlier tonight had got as much attention as the political debate on here gets
Bruce Grobbelaar – the greatest goalkeeper of his generation.
HH.
Interest rates will be set by the market rates…..to suggest we do not consider the world economy at present is nonsense. In future the exact same principles will apply. Currently we , sterling, do what we have to do…how will that change if we have a pound or a groat or a muckle. …..we go with the global market.
TBB
Perhaps
But if not …thought process must change
I just see the need for the unfettered rudeness ….
We all occasionally lose the place and make inappropriate and rude comment
For some it seems to be the default position
Btw…I’m fine …self??
Was hoping for some positive comments on here about Scotland’s performance tonight. I thought they played well.
But I forgot this blog is now just a platform for cyber bully Mr Lynch. The man who thinks a hefty proportion of Scots are stupid, ignorant, gulllible, liars,cowards,halfwits,chancers and every other insult he has thrown around that I have forgotten.
This site really does need a filter option and soon.
Bye.
Paul 67,
You do realise, your blog is going to go on meltdown for a while with political arguments!
I’ll just lurk.
Goodnight tims.HH
Moonbeams WD – 21:59
“I’m actually beginning to believe our Ernie is a Hun.”
What, does he want to keep Her Majesty like you lot and der Hun too?? Surely not??! I expected much better of him…
NegAnon2, I had a look at the Thousand Flowers blog and did not enjoy the experience. As you know I am proYes and to be honest have been disappointed with the abuse you have taken on here tonight as I have enjoyed and valued your contribution on CQN for many years.
In my opinion BillyBhoy05 was a troll and had no interest in Celtic and put people of the debate. Sadly I feel Ernie does not respond correctly to the posts from other posters and I have no interest in his opinions. Yours I will continue to read and consider as you will continue to have have my full respect. Take care.
mayanman
Salmon has already stated that a sterling currency union is his preferred option, but has also stated, he would be tied to the option delivered by the Scottish Electorate. This “Currency Union” is not a given, WE will decide, not the SNP. They will be the initial government if Independence is voted for. But, the electorate will decide on the most important issues from then. I soooooo look forward to a proper socialist Labour Government to run my beloved Country before my sell by/use by date has expired. KTF.
Weefra HH praying to Wee Oscar.
prestonpans bhoys dam justice for the 5
Imagine that game tonight under Levein.
Worlds apart.
WGS is a man who has the know how and the passion for his nation.
His anger at the end showed why he is the right man for the job. If we can beat Poland and Georgia we will be right in the mix.
Whatever issues the Germans can have they have a hell of a good squad and will beat everyone in the group.
Scotland made them work for that big time tonight.
Makes you have faith that maybe we can do it.
mayanman
22:21 on 7 September, 2014
As far as I know, only 3 countries of the 28 in NATO have nuclear weapons (USA, France and the Firth of Clyde). So, am not sure what the validity of your point was.
‘Self is fine too Sir.
Yogiy
Billy Bhoy 05…. he is a personal acquaintance of BMCUWP
He is a CFC fan …
embramike
22:12 on 7 September, 2014
Q: When is our close season next year ?
————-
Good point mate. Tired legs post WC have hampered Efe and Lizzy this year, coupled with a full change of management and tactics.
Ronny has said that the Jan window will be importent for us, so he is obviously attuned to the issue. The number of loanees is an issue – hope part of January’s plan is to tie down the successful loan players (and hopefully there will be some!!!) onto proper contracts – we need to go into the qualifiers with a settled team.
Still need to get a ‘contracted’ central defender – no point in sticking with Denayer for the full season if there is no option for keeping him through the CL qualifiers.
HH
BGFC
16 roads – Celtic über alles…
22:30 on
7 September, 2014
Bruce Grobbelaar – the greatest goalkeeper of his generation.
HH.
——————————–
i bet he wisnae
….PFayr supports WeeOscar
22:05 on 7 September, 2014
Currency belongs to UK. So if Scotland leaves does the UK dissolve? That’s what interests me?
Interesting that Ireland brought in it’s own currency in 1927 and it pegged 1:1 with Sterling and it continued until they joined the Euro in 2002.
HH
CRC
Let’s all join the Bullingdon club, now that’s an idea.
You actually make me want to puke you torry loving twats.
HH
I’m sorry folks. We are dragging ourselves and CQN down.
I’m to blame, as much as any.
The CQN blog is a great thing that brings Celtic supporters together. It’s a great thing, we know that.
Recently the rancour being sown (some of it I believe deliberately) has undermined us. It’s got us angry, before fall outs were few and far between.
I’d urge all of you to consider desisting from the referendum debate as a topic on CQN. It’s like a festering sore and no one will change their opinion because of a post.
There are more appropriate sites and it bemuses me that some appear to be steering us towards the rancour.
Some never post about Celtic, do they even go to see the Celtic ?
Let’s keep CQN for Celtic and Celtic supporters.
Snake Plissken
22:33 on
7 September, 2014
I hope so, Miss Prestonpans and I was jumping up and down when we scored. Then I thought she’s only 22 and no memory of us being in a finals
Sad really…………
Ignore the troll, I exposed him when his paymasters would not allow him the £20 to match the charity bet I offered him.
neganon, ernie or anyone else.
Why is Scotland the poorest Oil Producing Country in the world? Bet there’s nae foodbanks in the WM, Oxford or Cambridge areas.
Weefra HH praying to Wee Oscar.
Despite an impressive record with Celtic, I was never a fan of WGS style of football and didn’t particularly warm to him as a manager.
I subsequently met him at a function and spoke with him for a good while. He was a proper gent.
So I’m delighted to see the excellent job he’s doing with Scotland. Well done WGS!