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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Ah sage advice and threats from those in the ” finance” industry or as I would call it glorified bookies
Is that the same financial geniuses that predict chaos post a yes vote but failed to predict the biggest economic downturn since the last depression?
Por ceirto so the SNP did a right wing think in freezing council tax and not raising taxes but Scotland is left wing despite voting for the SNP? I am confused???
Ah johann shall we just throw away the finance industry then? That will be healthy for Scotland, just for info I work in risk trying to stop the chancers. But if you want real corruption let’s talk oil industry…….
KTF Jinky – Legend.
HH.
Ernie was that what you were looking for ? ? Were you going to make a point ?
Tictaewin mmmm that’s right. We are going to spend more and cut corporation tax. Mmmmmm that’s what the Tories do isn’t it? But I thought we were let leaning. Man oh man I am I getting confused…….
Neg
Sorry but I’m confused as well by your reply, can you clarify what it was you were asking about raising taxes please? I may have came in halfway through something you were already discussing, if so apoligies. por cierto.
No is offering just the same.
We have had the same and it’s not working for a great deal of people.
People have been paying tax since biblical days.
I’m sure lots of people would love to pay tax.
If they are paying tax it means they have got a job.
Yes offers something new and exciting for many people, and they are willing to give it a go.
If you are thinking of voting No.
Please change it to Yes.
Ernie
Nope but definately more than the south of England as is my experience and I had a feeling you would ask something like that which is a bit unfair,I grew up a Thatcherite in Scotland and saw how everybody helped each other and id like to think its a microcosm for a bigger picture.
Not having a go at you or jumping on a bandwagon but I do sincerely believe Scotland is a bit more socially conscious.
Neganon……
Oil industry corruption…..
Noo yer talking man……..
Even more corrupt than the bankers.
Ernie
Are you really going to pull the “away to bed trick” again ?
St. Stivs
That I understand.
And thank you for trying to keep it humane.
There are several Yes voters who are a credit to their side and several No Voters, not including the OO, who have been rude and counter-productive.
I hate zealots of any kind. The ones who can never see anything wrong on their side of the fence but see clearly the faults of others. The ones who never say, I was sorry and I was wrong, because they see it as a sign of weakness.
Anyway, how’s this for a conundrum? If there is a Yes vote majority on the 18th, I will be changing overnight from a Unionist to a Seperatist and will start a campaign for Home Rule for Glasgow, Lanarkshire and Dumbartonshire.
End Edinburgh rule before it starts!
You’ll have had your tram because you’re off your trolley (bus)csc
THE EXILED TIM
23:39 on 7 September, 2014
You’re wrong. I’ve expressed the opinion that those voting yes are either stupid or ignorant. I have never said the Scots or Scotland are too wee, too poor too stupid or whatever to run Scotland on their own.
It’s the nats who have said that.
I’ll give you the benefit of the doubt and assume you have misunderstood my posts rather than are just lying.
TET well currency tends to be important in the global community because we will not live in a wee bubble.mwe may well get into the EU but on what terms. As you say they may view us as a rich country and then demand terms for us to be a big net payer…….
As for the queen well….what’s the point as you say? Is it to appease the bigots? Or is it cos we love the blood of our blood and bone of our bone…..
tictaewin,
Presume your comments about “who are Huns” was a wind up
Ryecatcher you betcha………..
Ernie
So your not pulling the “away to bed” trick again.
Never mind there’s always the old “no answer” trick.
Por ceirto yes it was me.
NegAnon2
23:36 on
7 September, 2014
You asked why we hadn’t raised them before. I’ve put forward a possible reason. I don’t know what my happen in the future but if the context was an independent country people might view the situation differently, or not, I don’t know.
The will of the electorate in Scotland is only ever represented in Westminster by coincidental like minded voting in England, and that isn’t democratic.
I see ernie isn’t allowed to go to bed now.
tictaewin
23:28 on 7 September, 2014
Anyone who doesn’t go to Mass, receive the Eucharist and sacrament of reconciliation is in my view. A Hun.
——-
I think anyone who makes I’ll informed, offensive sweeping statements is a Hun.
Ach feck it, can’t be arsed, been up since feck o’clock this morn, drove to Malaga and back, no that bad, but a 6 hour round trip, and if the truth be told, was hoping to read and talk about the footy, tis inter footy, but footy all the same, even talking about the hun demise would be a welcome change from the shite, sadly the naysayers are in overdrive, they are crapping it big time, and even sadder I am responding to their shite, give masel a slap for that so a will.
Sleep well Timland
HH
KTF
setting free the bears for Res. 12 & Oscar Knox but saying no to CQN racists
23:45 on
7 September, 2014
St. Stivs
That I understand.
And thank you for trying to keep it humane.
There are several Yes voters who are a credit to their side and several No Voters, not including the OO, who have been rude and counter-productive.
You’ll have had your tram because you’re off your trolley (bus)csc
—————
if i can find my 64 tram picture thats getting posted next.
keep it lit
Weeminger I disagree with your view about Westminster but I get it.
I don’t believe you or anyone has given me a credible response to the taxes question and I believe that reveals a great deal about what Scotland really is.
Hi Ernie
I will be voting YES on the 18th. Any time you fancy, come up to the Blane Valley, Glassford Street, Glasgow (I’m there almost every Friday) and call me stupid or even ignorant, whichever takes your fancy.
PJ
Weefra is the man to take us forward fae the Ministry for Agriculture tae PM :))
TET it seems is allowed to go to bed…..
HE EXILED TIM
23:49 on
7 September, 2014
Ach feck it, can’t be arsed, been up since feck o’clock this morn,
you work too hard bud,
set the clock for two hours after feck o clock.
enjoy the lie in
Neganaon
Your question was a two part question. I answered both. I leave you to scroll back a couple of days and check.
If you posted after that another question I did not see to answer you then I can hardly be accused of not answering something I believed I answered in your original question.
Hence the lying accusation as you know I answered. Your Q just posted was no different to original.
So thanks.
MWD says AYE
papa
Believe me, they are graduating from Oxford and Cambridge as we speak. Hahahahah. Seriously, we have some wonderful academics in our beautiful country. It’s getting them to get in to politics, where the rewards can be enormous, is the big issue. They will come to the fore I honestly believe. You going next Sat? If so, see you at oor wee corner. KTF.
Weefra HH praying to Wee Oscar.
Lennon n Mc….Mjallby
23:44 on 7 September, 2014
‘Not having a go at you or jumping on a bandwagon but I do sincerely believe Scotland is a bit more socially conscious.’
###
My question was whether people think the Scots are more socially conscious than the Irish.
Everybody knows we’re more socially concious than those English basturts.
JB if lurking God bless you and E.x enjoy holiday with our old neighbours.x
Remember when we used to talk and debate about Celtic….?
Ah Delaneys freeeeeeeedoooommmmmmmmmm
And to hell with any rationale thought or consequence……
Cults bhoy. Welcome to the future.
Ernie
I don’t believe for a minute you are paid for your efforts. To be blunt you’d be sacked for the OG’s.
It’s a shame that the old “Ernie is getting bullied trick by name calling Nats” card can’t be played either. Your partner has previous himself and is squirming.
DD
Yer a feckin nutter, but i luv ye. Ya bam. See ye next sat. We are both POSL wi yer post.
Weefra HH praying to Wee Oscar.
NegAnon2
23:50 on
7 September, 2014
Fair enough my primary reason for voting Yes is to pull away from Westminster. My personal view, is that for the average person (and I’m right in that demographic) circumstances (wealth etc) will change very little.
The agreements (in principle) are in place to shift the balance of seats towards the more populated areas that are in the South and East of the UK. It’ll be back up for debate in 2018. If that goes through Scots, Welsh and the North of England will be more or less without a decisive voice in Westminster.