Warning from Blue Knights comes home to roost

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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. prestonpans bhoys dam justice for the 5 on

    right off to bed, two unionist’s talking too much pish………………..

  2. I’ll state it again, as I did the other day.

     

     

    If 100% of voters in Scotland had voted Labour in the 2010 General Election we’d have the same Govt we have now.

     

     

    Very roughly speaking, if every seat North of the Mersey – Humber line had voted Labour we’d still have the same Govt.

     

     

    Westminster doesn’t care about North Britain. As long as they appeal to the SE they can win an election.

     

     

    Undemocratic.

  3. Neganon2…..

     

    Yes.

     

     

    To answer your question….you ARE a hun.

     

     

    Now that I have clarified that for you, any risk of you stopping your nonsensical, repetitious questioning of bloggers with your ‘am I hun?’; ‘you calling me a hun?’

     

     

    Glad I was able to help.

  4. Neg

     

     

    Any future independent government would be unbridled from south east england economic policies and may therefore increase taxes and may change the way we pay for council services por cierto.

  5. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    Ernie,

     

     

    You been upsetting Fholk…? or have you just, suddenly, become very popular :)

  6. Anyone who doesn’t go to Mass, receive the Eucharist and sacrament of reconciliation is in my view. A Hun.

  7. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    GORDYBHOY64

     

     

    Just catching up,mate.

     

     

    I hope the young fella enjoyed himself tonight.

     

     

    Tragic at any age,all the more at his age.

     

     

    Please pass on my hopes and best wishes,bud.

  8. Lennon n Mc….Mjallby

     

     

    23:23 on 7 September, 2014

     

     

    ‘I think theres definately more compassion in Scots and Scotland,’

     

     

    ###

     

     

    More than in Ireland and the Irish?

  9. Ernie

     

     

    ——————————————–

     

     

    BIG-CUP-WINNERS

     

    11:39 on

     

    7 September, 2014

     

    Are Scots to weak to govern themselves ?

     

     

    Would Scots govern themselves better than a foreign neighbour ?

     

     

    Why does the UK government want Scotland retained in the Union ?….PFayr supports WeeOscar

     

    11:41 on

     

    7 September, 2014

     

    BCW

     

     

    Yes

     

     

    No

     

     

    UK is better together

     

     

    Simple really

     

     

    —————————————

     

     

    Does that help you ?

  10. Neg anon2

     

     

    I watched the whole show. She was and is awful. She said we are all thick on TV.

     

     

    Talk about defending the indefensible.

     

     

    Ernie Lynch

     

     

    I don’t why you are asking me I am not genetically programmed to make political decisions and according to you I am a nutter so I don’t know why you are asking.

     

     

    I must be too wee, too poor and too stupid into the bargain.

     

     

    I know you really hate that being brought up. Glad I brought it up now.

  11. setting free the bears for Res. 12 & Oscar Knox but saying no to CQN racists

     

    23:25 on

     

    7 September, 2014

     

     

    ————-

     

     

    very well put ,

     

     

    however let me distill it a little.

     

     

    ernie talks pish.

     

     

    so hey ho, everyone has a go,

  12. BMCUW

     

    and all others who replied thanks very much,your prayers and good wishes mean a lot to the family concerned

  13. Kilbowie Kelt will vote YES on

    Now, when we were savage, fierce and wild

     

    (Whack fol the diddle o the die do day)

     

    She came as a mother to her child

     

    (Whack fol the diddle o the die do day)

     

    She gently raised us from the slime

     

    And kept our hands from hellish crime

     

    And she sent us to heaven in our own good time

     

    (Whack fol the diddle o the die do day)

     

     

    Whack fol the diddle o the die do day

     

    So we say “hip hooray”

     

    Come and listen while we pray

     

    Whack fol the diddle o the die do day.

  14. TBJ says Wee Oscar Knox is in heaven with the angels on

    Been on CQN for 7 years

     

     

    Used to be all decent Celtic men .. Hearts of gold,

     

     

    Pale shadow of that now

     

     

    I have made loads of great genuine friends on here but now it’s an embarrassment to the original site

     

     

    Signing off for the night .. Happy the charity match brought in loads and made plenty people smile

     

     

    Gutted that WGS scots got beaten by the world champs

     

     

    Keeping the faith .. Praying for Kano and remembering wee Oscar and my pal Pablo

  15. Ernie Lynch

     

    Here’s a question for you – how come you never answer any questions but simply try to provoke everyone with yours? It is very wearying.

  16. NegAnon2

     

    23:25 on

     

    7 September, 2014

     

     

    If the Scottish Govt increased taxes here, do you not think a huge number of people would go “hold on I’m paying more tax than my English colleagues for the same services, I’ll move down South”

     

     

    Now I’m happy to pay and extra few % in taxes for the overall benefit, but I am quite left leaning and it could be that lots of people in Scotland would be too (perhaps a higher % than eg the South East of England). However lots of people wouldn’t, even if it’s just a significant minority and they’d leave.

     

     

    The ability to raise taxes at a local level was always a gift that couldn’t realistically be used.

  17. 16 roads - Celtic über alles... on

    kilbowie kelt will vote yes

     

     

    23:08 on 7 September, 2014

     

     

    ———————————————————-

     

     

    Pure magic!

     

     

    Jaysus yer goin’ way back in time with thatin.

     

     

    Changed one line just:

     

     

    Whack fol the diddle o the die do day

     

    So we say “hip hooray”

     

    Come and see the Celtic play

     

    Whack fol the diddle o the die do day.

     

     

    Many thanks for posting it.

     

     

    HH.

  18. Ernie/Negatron

     

     

    Vote yes, have a toke and let all your cares go up in smoke.

     

    Free Alba!

     

    Carpe Diem!

  19. Neg anon2

     

     

    2 things

     

     

    1. A lot HAS been made of it. You just haven’t seen it.

     

     

    2. The media cares doesn’t report or scrutinize Labour gaffs. Remember Ian Gray accusing Montenegro of ethnic cleansing at FMQs? That’s on youtube too and is completely false.

  20. Ok Weeminger at least you are the first to directly answer.

     

     

    So people might leave if we raise taxes? So let’s take it to the next conclusion. A left wing scottish governments needs to raise taxes to pay for its promises. Is the idea that because we are an independent country it stops people leaving. Is that the idea?

     

     

    And if we were so confident why didn’t we raise taxes anyway?????

  21. MWD I think your answer was that you felt we couldn’t raise taxes and that the council tax freeze was equal for everyone. I answered and I haven’t seen your response after that. Apologies if you did but could you repeat?

  22. Neg

     

     

    The SNP, I believe, are not a left of centre party and therefore would not look to increase taxes. The previous Labour Governments at Holyrood done what their London masters told them to do. I’m hopeful after independence a more left of centre party will be elected. por cierto

  23. i bet no one on here leaves scotland after we have independence.

     

     

    and that a lot of scots living abroad come home.

     

     

    and that a lot of great immigrants come as well.

     

     

    and that all in the population increases.

     

     

    and we all get wealthier

     

     

    and my pension gets paid,

     

     

    why not, we aint exactly poor.

  24. Weefra

     

    I can see where you are coming from, but where are the people to take us forward, we missed the boat with the likes of John Smith and Donald Dewar, long gone, no-one in my mind at this present time.

     

    Awerabest PJ

  25. Ernie

     

     

    To answer your question, and yes, some of us actually answer questions, you for one have said on many occasions that the Nats are to stupid and too ignorant to govern, if you care to scroll back, you will see I am correct in that assertion.

     

    ……………..

     

     

    NA2

     

     

    The pound…..who really gives a feck what the currency is, as long as there is something at the end of the week, and there will be come what may, or are you saying if scotland votes no, there won’t be anything ?

     

     

    The queen….again who gives a feck if she is head of state or not, she is presently, what the feck will change if scotland votes yes ?….will she be, won’t she be….think about it now.

     

     

    The EU…..Do you really think the burgers of the EU will tell scotland to feck off ?

     

     

    One of the potentially richest wee countries on the planet, good luck with that one.

     

     

    What else then ?

     

     

    You tell me a scary story before I go to bed, I am all ears………

     

     

    HH

  26. Remember we are cutting corporation tax 3%

     

    This along could and will be an incentive for companies to locate at least some operations here

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