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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tictaewin
23:57 on 7 September, 2014
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.
—–
Fair enough, no argument from me.
I don’t police anything btw.
If John Brown knew more than he could say….Ally must have known also.. Re naming rights etc?
Right off to my cot……..need to check and make sure there are no Guevara’s under the bed :-)
gorrdybhoy
God help the bhoy. Sorry I missed that earlier. Our thoughts and prayers are with,and for the young lad tonight. So sad. KTF.
Weefra HH praying to Wee Oscar.
delaneys dunky
00:19 on 8 September, 2014
I feel our time is coming!
Free Alba.
——
Not sure anything will be free……….
Port Glasgow is my home town.
left wing voters, and a long migrant history, at one point 60% of the 24,000 population were catholics. this was offcourse when the shipyards were at their peak.
doon the toon today, the visible YES posters in lots of windows.
a great Big silver YES half way up the parklea cliffs
not a union jack anywhere.
port glasgows green and white, and voting free.
NegAnon2
00:16 on 8 September, 2014
There will however be a massive anti scottish sentiment post a yes vote.
““““““““““““`
from whom?
The english? Don’t think so.
Maybe the dutch? Naw
Where do you get this nonsense?
WeeFra,
thanks mucker,
Ok ghuys, cot time has arrived. Neg, support yer right to yer views, don’t agree with them. Still know yer a Tim. Ernie, read “Financial Times Reporter” or thereabouts. Defo not a Tim.
DD yer still a nutter and papa, see ya next saturday.
Apart from that it’s a big Night Night Timland. KTF.
Weefra HH praying to Wee Oscar.
Neg
Sorry, but I think the media house cap fits you. You are spouting identical views to Jack Irvine.Are you Jack and Ernie the same person???????? Mmmmmmediahouse???? ;)))))
From the scottish NL and McCartney. There are always consequences to smears and bullying. Always.
Wow that was really clever what you did there Delaneys.
gordybhoy
You are more than welcome.
Weefra HH praying to Wee Oscar.
NegAnon2
00:29 on 8 September, 2014
From the scottish NL and McCartney. There are always consequences to smears and bullying. Always.
~~~~~~~~~~~~~~~~~~~~~~~~
So what you’re saying is that “there will be a massive anti scottish sentiment post a yes vote”, from the Scottish?
Is that right?
Neg
Wis it?
Those well versed in geography will be aware that several countries that were once part of Yugoslavia, now describe themselves as, for example, Macedonia, FYR denoting: Former Yugoslav Republic.
So, if Scotland gains its independence after the forthcoming referendum, the remainder of the United Kingdom will be known as the “Former United Kingdom” (FUK).
In a bid to discourage Scots from voting ‘yes’ in the referendum, the Government have now begun to campaign with the slogan “Vote NO, for FUK’s sake!”
Entirely logical one feels.
67ECW
http://www.neweconomics.org/blog/entry/scottish-independence-uk-dependency
Weeminger well at least I know where it came from. This is an OBR report. The idea here was that I’d Scotland decided to reduce taxes then this shouldn’t be subsidised by the block grant. Which is pretty sensible. My argument is around why freeze council tax and not RAISE scottish taxes?
Super sadly says no… I’m guessing he’s running for the first ministers job now that they’ve found out he’s shoite at football management. Let’s face it.. he’s supported every fecker else
i like the lyric “never be another mans footstool”
then again i like this “the one ive been looking for”
the old lady in red, aint no tory voter.
http://www.youtube.com/watch?v=ALARQ6vuKVs
Saint Stivs
23:55 on
7 September, 2014
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.
==================
That is a fair dinkum point on Aussies for they keep coming back.
To be clear Weeminger the report link you posted doesn’t tell the full story…..
Auldheid
This Glasgow born Irish/Pole wants a free Scotland open to all man.
And to be clear here is an extract fro a BBC story on this point from March 2014
BBC Scotland’s business and economy editor Douglas Fraser explained that setting up the administration around any rise in the tax rate would likely eat up much of the financial advantage gained.
He added that raising income tax is unpopular with voters – and political parties, who want people to vote for them, know this.
In the run up to the first Holyrood election in 1999 , the SNP campaigned for the Scottish Parliament to use its powers not to implement the 1p income tax cut brought in by the Labour government at Westminster.
Called the Penny for Scotland policy, the SNP said it would raise £230m a year for public services.
But the policy didn’t appeal to voters – following the 1999 election Labour won the most seats and went on to form a coalition with the Liberal Democrats.
The SNP dropped the Penny for Scotland plan in 2002.
Douglas Fraser says that most politicians see income tax as a bit of a blunt instrument – they are more likely to vary “stealth” taxes such as VAT and national insurance.
The threshold that income tax starts from is also important – the level of income someone earns before they pay tax – but power over this lies with Westminster, and will not change under the Scotland Act 2012.
But the new legislation will mean that the Scottish government may have to be more proactive – they will, in the very least, have to meet every year to determine what the tax rate should be.
Now isn’t that interesting???????
quite good.
caledonia flash mod at the concert hall.
http://www.youtube.com/watch?v=9l1QS1EoNvQ
What is it the Huns sing??? Penny arcade?mpenny for Scotland???
Maybe no when you want to bribe an electorate???
NegAnon2
00:29 on 8 September, 2014
From the scottish NL and McCartney. There are always consequences to smears and bullying. Always.
~~~~~~~~~~~~~~~~~~~~~~~~
So what you’re saying is that “there will be a massive anti scottish sentiment post a yes vote”, from the Scottish?
Is that right?
Mary from Dungloe
Oh,then fare ye well sweet Donegal,the Rosses and Gweedore,
I’m crossing the main ocean, where the foaming billows roar,
It breaks my heart from you to part, where
I spent many happy days
Farewell to kind relations for I’m bound for America
Oh, then Mary, you’re my hearts delight,
My pride and only care
It was your cruel father would not let me stay there
But absence makes the heart grow fond
and when I am over the main
May the lord protect my darling girl till I return again.
Oh,I wish I was in sweet Dungloe, and seated on the grass
And by my side a bottle of wine and on my knee a lass.
I’d call for liquor of the best and I’d pay before I would go.
And I’d roll my Mary in my arms in the town
of sweet Dungloe
:-)
HH
NegAnon2
00:42 on
8 September, 2014
To be honest documents in favour of either sides argument’s rarely do. That’s what makes it such a pain.
Take the oil claims for example. February this year Sir Ian Wood produces a report under his name that 24 billion boe is achievable (p3 I think). Yes use that – after all he’s an industry leader, why wouldn’t they.
Six months late Sir Ian Wood rubbishes that figures says it’s probably closer to 16 billion but doesn’t clarify why his previous claim might be incorrect.
How is your average person supposed to make an informed decision? From the stories I read and news reports I saw not one person in the MSM challenged Ian Wood on his change of mind.
That leaves in a situation where people are responding to the tone of the campaigns and the abject negativity of the No campaign has been the root cause of nearly every switcher I know.
Milliband’s border guards claim which has resurfaced finally turned somebody else I know this weekend.
No NL and McCartney. There will be a massive fall out between scots given the bitter smear and abrasive tactics from the yes campaign. No voters will feel disenfranchised and I have no idea what yes voters are going to do to reunite it. Shout louder perhaps?
Anyway thanks for the chat, always an education. Football will be back soon.
I think the no campaign are doing a grand job, keep it up boys, changed my mind anyway :-)
Sorry Weeminger you are not getting away with that. When it comes to tax raising powers Scotland can do it. Your selected post showed the consequences of tax reduction. So it’s just wrong. Please concede the point.
The constant claims of negativity on the no campaign are laughable when I see claims of the NHS being dismantled if we vote no etc etc.
As for borders of course it will happen. What on earth do you think will happen?????? If England leave the EU it will be worse than trying to get into china.
67 European Cup Winners
00:35 on
8 September, 2014
Fyrom
The Macedonians call themselves Macedonia.
This has infuriated the Greeks, who`s hero ,Alexander, came from Macedonia.
Fyrom was the “compromise.”
But nobody calls it that ,except perhaps the Greeks.
Magnificentseven you will have plenty of time to ahem enjoy your victory…..
NegAnon2
00:58 on 8 September, 2014
“There will be a massive fall out between scots given the bitter smear and abrasive tactics from the yes campaign.”
is not the same as…….
“there will be a massive anti scottish sentiment post a yes vote”…
…..which is a smear of the Scots.
Shame on you.
Just before I hit the cot. Why is WM so desperate to keep Scotland, the country they have subsidised, more than we ever contributed, in their opinion. I think we know the answer.
Weefra HH praying to Wee Oscar.
M7
It’s like the reverse psychology I used to play with my babies.