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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Once we are free i would set a target on migrant numbers, not a low target, a high number. make it a policy we have 200,000 a year.
make it the poor bastards in refugee camps all over the world.
i havnt met a 3rd generation migrant to scotland i havnt liked.
i would maybe have a low quota on australians though.
beram Kayal has named his new wean “Pirlo” after the Italian footballer!
gordybhoy64
23:38 on 7 September, 2014
http://youtu.be/kbJcQYVtZMo
not much joy on here tonight
~~~~~~~~~~~~~~~~~~~~~
Well that was truly joyous and I thank you
What a braw place that Sabadell looks
HH
MWD as I remember you said that you didn’t think Scotland could raise taxes just now because th block grant would be reduced. That is incorrect but you said you would check and get back to me? Have you?
Does that make me a liar?
Delaneys
and you would be minister for swally and hold all your meetings in Divas
Ernie
Lol
Stringer bell,
Your right.
I was only getting a bit of sarcastic banter going as the posts were referring to this is a Hun and that is a Hun etc, it was getting on my goat.
Might have been misinterpreted.
It’s a good forum.
I’m glad you police it.
Weeminger. And what will you do about the gerrymandering towards Edinburgh etc???
gordybhoy
Sorry, didn’t see yer original post. Can you give a wee write up on it? Please.
Weefra HH praying to Wee Oscar.
A few references to the Orange Order’s position re the referendum……Why?
They really are a tiny organisation that is dying out year on year.
They have very little real influence in 21st century Scotland and progressive thinking nations do not take such minority backward thinking organisations seriously or view their position as credible.
The Masonic Cabal……now that is something totally different and might well have a disproportionate influence in post referendum Scotland.
Time will tell……
Ernie you can go to bed now, before the abusive swearing starts.
There are huns
and there are rangers fans
A difference in my opinion
#0hdearwaitingforthebacklash
So, Scots should just forget the past
(Whack fol the diddle o the die do day)
And think of the day that’s coming fast
(Whack fol the diddle o the die do day)
When we shall all be civilized
Neat and clean and well advised
Oh, won’t Mother England be surprised?
(Whack fol the diddle o the die do day)
Let’s just admit it….. Some of us really NEED Mother England to look after us.
O me miserum.
If a yes vote.. do you think there would be a return to the homeland for ex pat’s?
BCW nice of you to let ernie go to bed.
NegAnon2
23:57 on
7 September, 2014
I genuinely don’t know.One thing at a time. I don’t have the time in my life to consider every turn of every political journey.
However I’ve been following the tale of the constituency boundaries being changed since it was first mooted. If the Lib-Dems hadn’t been so heavily railroaded in the early stages of the coalition they might have bent over on the House of Lords reforn and then we’d be in a bit of trouble (not as much as Wales though).
I wonder if the referendum sites are talking about football…?
Lol. . Football what’s that?
When we are free, what time do you reckon we should let Ernie got bed?
Am thinking he should be tucked up for 10,30 at the very latest
neg
I’m sure that Salmond says he never got the mandate from the SP to raise taxes. May well have that wrong, but sure he said that. Which would mean the other parties voted it down.
What about Brown, saying that Scots should be willing to share our resources with the rest of the UK. NOT that the rest of the UK should share their resources with us. Reasons??? I think we know the answer that. The good thing is, yer still aTim. KTF
Weefra HH praying to Wee Oscar.
CultsBhoy
23:53 on 7 September, 2014
Remember when we used to talk and debate about Celtic….?
=========================================
On the 18th as the results pour in, we play Salzburg.
The perfect storm. This place will be like Arkham Asylum.
I’m ordering the popcorn now.
Re: the vote – why just a Yes or No?
Where’s the Scottishness? Where’s the tribute to our national pastime/obsession/misery?
Why not a ‘Dalglish’ option? – A ‘Mibbees Aye, Mibbees Naw’ box on the ballot paper?
Evening All at the end of a very frustrating day.
Inactivity and a failure to acknowledge the truth thus giving everyone time to breathe, come to terms with the truth and adjust, is just a pile of pish.
Apply that to whatever circumstances you will.
Absolutely and utterly sincere shite is still shite at the end of the day.
Can you tell I am frustrated and annoyed?
Yes so can I.
Neg
Breathe in and relax ya madman.
Neganon
You said I did not answer your question or was it couldn’t. I did bit yes I was to get back to you. Unfortunately work has taken much of my time to check my answer. Bit at the time I answered as best to my knowledge as it was then and is now until I get chance to research. When I do I’ll get back to you but I did answer you.
So yes. You did lie.
MWD says AYE.
Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma
is that a yes or a no
though
DD
He’s fine. I’m looking after him. KTF.
Weefra HH praying to Wee Oscar.
NegAnon2
00:04 on
8 September, 2014
BCW nice of you to let ernie go to bed.
Thought it best, he seems a sensitive soul, unable even to answer or acknowledge when people provide him with what he’s asked for.
So he’s best in sleepy land before the swearing starts………..
Just reading back
Re: currency
While Ireland linked the Punt to £, this changed when Ireland joined the Exchange Rate Mechanism in 1979. The new UK Tory Govt of the day did not.
This saw the fluctuation between the Punt and the £, as highlighted by another poster who correctly recalled £1 being worth 1.20 punt.
The Irish £ was linked to the UK £ ONLY until 1979. The link was not broken by Ireland using the €.
G64
Hahaha, no a bad idea.
Let them eat unlimited curry. :))
BRTH
And your point is? Have not a clue what that was about. Maybe better not knowing. :-))
Weefra HH praying to Wee Oscar.
WeeFra,
I was hoping for a Scotland win tonight as a young lad a friends son.only 24,
had been told in the past fortnight that there was no further treatment available
to treat his cancer,he was asked if he had any questions and all he wanted to know was could he go to Germany,i don’t normally bother about Scotland but I was roaring them on tonight for this young fella
Weeminger the problem is you need to see ahead with this decision. There is no turning back.
Weefra I’m sorry but that’s nonsense. The scottish parliament has tax raising powers. The SNP have a majority. There has been no discussion nor vote. I point all of this out because quite frankly all this left leaning stuff is, well nonsense.
As for sharing resources well it might be the way forward. God knows we need to cooperate with each other. Scotland and England in particular. There will however be a massive anti scottish sentiment post a yes vote.
Delaneys I am pretty terrified of the consequences of a yes vote. I’m lucky I can get out. But most of my relatives can’t. But crap like I am from media house. Really?
Very kind BCW.
Weefra see ya next week night,night.
Awerabest PJ
I feel our time is coming!
Free Alba.
Carpe Diem.
MWD. So asking for a response was a lie? Really? Is that as good as it gets?
No one can as wer the question about why we haven’t used outer tax raising powers because the answer is that the SNP are bribing us just like the Tories. And boy do we seem to like it.
Neganon – I’ve done MWD’s research for him, as I was interested in the origin of his idea. It’s in point 1.4 of this Office for Budget Responsibility document which states:
“The new Scottish income tax rate will need to be set every year by the Scottish Parliament. The block grant from the UK government to Scotland will then be reduced to reflect the fiscal impact of the devolution of these tax-raising powers. “
Ehhhup! :-)
How many Freudians does it take to change a light bulb?
2 one to change the light bulb and one to hold the penis, ladder I mean, one to hold the ladder……..