Warning from Blue Knights comes home to roost


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. See posters who just lie and lie, just because they can and are real brilliant at it…



    What are you like?

  2. kitalba



    06:42 on 8 September, 2014



    See posters who just lie and lie, just because they can and are real brilliant at it…



    What are you like?




    It looks like the big-noises are feart to jump into the ring with you so, I’ll embrace you.


    Some of us hve not got the time to read back the blog so – could you be a wee bitmore specific?


    Curiosity killed the cat – CSC


    Hail Hail

  3. Wow, how many posters shed their skins these past couple of days….




    Never take sweeties from a stranger echos…. and never, ever, accept an apology when it is coated with crunchy phlegm.

  4. KevJungle:



    By voting Yes you might just be voting your whole country into administration.



    No matter how much your heart rules your head, and that’s kinda cute… always remember this…



    l’herbe n’est pas toujours plus verte



    Step up and roll the dice, only the deeds to your childrens future is the stake.

  5. Maltese Zico



    Hope you found somewhere to watch the fe in Munich. I had to go to a business dinner which involved giant beers and snitzel. Usually my idea of heaven but it meant I only caught the last 10 mins!



    HH jamesgang

  6. KevJungle:



    No howling, no punching, just preparing to clean up a after a bleeding heart, and get every penny I own out of Scotland before the vote.



    I hear an awful lot of people and companies are doing it of late.

  7. Neil Lennon & McCartney on

    The Sunday Times reported that the Queen now feels “a great deal of concern” over the independence vote and has asked for daily updates.



    David Cameron is now expected to reveal last-minute concessions – including the devolution of more powers to Scots – in an attempt to keep the 300-year-old union alive.



    Squeaky-bum time!

  8. gordybhoy64



    Prayers for the Bhoy and all those close to him.






    Aff oot. Take care Timdom



    HH jamesgang



    PS Jobo. Warm and sunny in Munich following yesterday evening’s thundery shower (do you do retrospective weather observations?!?)

  9. eddieinkirkmichael on




    07:20 on 8 September, 2014





    No howling, no punching, just preparing to clean up a after a bleeding heart, and get every penny I own out of Scotland before the vote.



    I hear an awful lot of people and companies are doing it of late.





    Utter claptrap, more scaremongering with no facts.

  10. Good morning my friends in celtic , I hope you all have a great day , gordybhoy64 prayers said for your friends son & family

  11. Re the sectarian killing of Mark Scott – Am I misreading this or something but I don’t see where this person actually says sorry –



    He said: “It will be 20 years since it happened next year.



    “I’m a dad now. I just want to move on with my life and I’m sure his family do too.



    “There’s nothing I can say that will change things; there’s nothing I can say that can say enough sorrys to that family.



    If anything, he seems to me to be avoiding saying sorry, unless this is not his full response. I would like to know what question was put to him.



    “The last thing they want to hear is me say sorry.”

  12. eddieinkirkmichael:



    Are you sure? I’m not paid to deliver you facts, I know you’re a big boy and can find them all by yourself, hopefully in time too.



    If what I write scares you then congratulations for summoning the courage to get out of your bed today, such bravery should be recognised and lauded.



    What tools is an independant Scotland going to deploy to fight rising unemployment and inflation since the Bank of England will control Scotland’s interest rates? That one really should be a show stopper all by itself and that is what scares me.



    Sincere question… Is it possible for a country to go into administration?

  13. eddieinkirkmichael on

    Scotland will be the richest ever country to gain it’s Independence with our resources why would we end up broke. It’s typical that you won’t provide facts but demand answers to your questions.



    Work calls.



    It’s a yes from me

  14. Neil Lennon & McCartney



    01:50 on 8 September, 2014



    ‘Dominic Behan: “Some years ago I tried to get Dylan to settle the matter as one artist to another, I rang him at an hotel in London where he had been living then. Dylan’s reaction was that I didn’t have the resources to take any legal action against him, and he therefore replied, `Get lost, bum! The songs I write make other people’s attempts at art good.’…I wrote the song (words and music) on the 1st January, 1957, after Feargal O’Hanlon had been shot dead…”







    It’s an old tune, The Merry Month of May, Behan didn’t write it.



    I suspect that it’s a Behanesque recollection of events by him.

  15. eddieinkirkmichael:



    Demanding me back again, pray tell how Scotland is going to be the ‘richest’ ever country to gain it’s Independence?



    What resources are you alluding to? Are these tangible, quantifiable resources or are they three mile, might as well be a million mile, down, with a very big and wavey ocean above and ne’r the engineering capacity to get at it, hypothetical resources?



    Or is it just golf, whisky and double distilled bigotry we’re going to build a nation on….

  16. Morning all. Beautiful once again down. How different things are when the sun shines. It lifts the ole soul.



    Has the soul of CQN been lifted today? At the end of the day (as they say), we’re still all Celtic supporters. That ought to brighten the ole step any and every day.



    By the bye, Gordon Strachan is achieving miracles with Scotland. Hard lines last night. We wuz robbed big time by thon eejit of a ref.

  17. Neil Lennon & McCartney on

    LONDON, Sept 7 (Reuters) – The British government is scrambling to respond to a lurch in the opinion polls towards a vote for Scottish independence this month by promising a range of new powers for Scotland if it chooses to stay within the United Kingdom.



    British finance minister George Osborne said on Sunday that plans would be set out in the coming days to give Scotland more autonomy on tax, spending and welfare if Scots vote against independence in a historic referendum on Sept. 18.



    Prime Minister David Cameron had, ironically, vetoed a third ballot option for greater devolution, betting that the stark choice of yes or no to independence would deliver a clear victory for the status quo as cautious voters turned away from an uncertain future.



    Salmond described the plans as a “panic measure”.



    “This is a ridiculous position being put forward by a campaign … in terminal trouble,” he told the BBC.



    “They have failed to scare the Scots, now they are trying to bribe us. That won’t work either because people have come to the realisation that we can take the future of this country into our hands.”

  18. Auldheid



    01:26 on 8 September, 2014



    You are trying to reason with those who are incapable of reasoning.



    I make no apology for posting the following again ( it’s a comment I saw on the Socialist Unity website). It highlights just how intolerant and closed minded nats are of any idea that differs from their own.








    ‘Jim on 3 September, 2014 at 11:29 pm said:



    I chaired a referendum debate last night – of course I was equitable and retained a neutral position. However, best question of the night came from the local RC catholic priest to the yes scotland speaker: “the Better Together speaker (a local labour councillor) has accepted that he can understand why people have taken the decision to vote yes and given some reasons for that. Can you give me a reason why good, decent people are voting No?” Answer from the yes scotland speaker – No!’

  19. eddieinkirkmichael



    07:57 on 8 September, 2014



    ‘Scotland will be the richest ever country to gain it’s Independence with our resources’








    So why would we need a currency union then?



    It doesn’t make sense.

  20. Neil Lennon & McCartney on

    ernie lynch


    07:57 on 8 September, 2014



    The tune possibly came from The Merry Month of May, but do you dispute who wrote the lyrics?

  21. Eddie, this is just part of an article (not todays news, but pertinent none-the-less) by Teresa Hunter from the Telegraph, you might want to read what the Financial Times and the Wall Street journal have to say, but then you’ll probably just accuse them of scaremongering too.




    Uncertainty surrounding the currency, interest rates, taxation, regulation, investor protection and financial stability of an independent Scotland look set to trigger a flight to safety, with hundreds of billions of pounds pouring south as polls narrow ahead of the Scottish independence vote in September.




    Today, Standard Life, a pensions and savings giant woven into the fabric of Edinburgh, became the first major company to warn it may move part of its multi-billion pound operations to England if there is a yes vote.




    Scotland is a big provider of financial services, managing £750 billion of pensions and investments. Its banks serve more than 40 million account-holders. But nine out of 10 customers of institutions based north of the border, live south of it.




    Analysts agree that an independent Scotland, like many small economies, could face higher interest rates, higher taxes, higher costs and greater financial instability than the rest of the UK. These could cut returns, push up charges and increase volatility. Such risks would not be welcomed by savers.




    Many are expected to protect their funds by moving money south, where they will continue to operate in sterling, have interest set by the Bank of England and enjoy the protections and compensation schemes run by UK financial regulators and ombudsmen, underwritten by the Westminster government.



    2. How safe will my money be?



    For most investors the crucial consideration is security. While the Scottish National Party (SNP) has promised financial regulation and compensation equivalent to the UK’s existing safety nets, many doubt this could be delivered. Worryingly, no work of any kind has begun on establishing a new financial regulator or financial ombudsman system, which would give investors comfort that their money is securely and competently safeguarded, and they have redress to a consumer watchdog when institutions fall short. The Financial Conduct Authority says that without a Yes vote there is no mandate to prepare for change.



    Given the smaller Scottish private sector, which accounts for less than half the economy, it is not clear that Scotland could afford compensation schemes equivalent to those provided currently. The biggest risk would be the ability of the fledgling economy to withstand a major financial shock. The Westminster Treasury puts the liabilities of Scottish banks at 1,254pc of an independent Scotland’s economy as measured by GDP (gross domestic product). This would make deposits significantly more risky than the disgraced Icelandic banks, which had assets of 880pc of GDP.



    By contrast, the UK banking sector, including Scotland’s banks, is around 492pc of total UK GDP.



    3. What happens to the currency?



    Chancellor George Osborne has said an independent Scotland cannot keep the pound, and the SNP has been given short shrift by European Commission President Jose Manuel Barroso. This could leave an independent Scotland shadowing sterling or the euro, in the same way Panama shadows the dollar. This arrangement could be highly volatile and would introduce a currency risk for UK investors.



    4. Interest rates



    The expectation is that a new Scottish Government will issue gilts, and that interest rates would likely be higher to reflect its challenges. The NIESR predicts that with a stable currency and political harmony with Westminster or Europe, 10-year bond yields will be 0.75pc-1.65pc higher than UK bonds. With no political union – the more likely scenario – the spread will be higher.



    The prospect of a higher return could be attractive to some, but it would come with risks, not least that of saving in a weaker currency.



    Similarly, Scotland might be able to offer a more attractive annuity income for those nearing retirement. However, retirees could lose out when converting the pension back into sterling.



    5. Tax



    SNP leader Alex Salmond has pledged to cut corporation tax by 3pc.



    However, the Institute of Fiscal Studies is doubtful whether Scotland could sustain lower taxes. It believes that in the longer-term, as the revenue from North Sea oil dries up, taxes would have to rise, or spending be cut.



    Stuart Adam, of the IFS, said: “There are differing views on how quickly the oil will run out, but it will run out. Scotland’s population is ageing faster than the rest of the UK. Pension bills will rise. Taxes will have to go up or spending be cut, and the sooner it makes adjustments the easier it will be.”



    UK taxpayers could find their savings subject to higher income, or capital gains tax. Property owners could also be penalised.



    6. Cheap Flights



    One bit of good news is that Salmond has indicated he plans to first cut and then abolish air passenger duty. Those living close to the border may find it pays to fly from Edinburgh or Glasgow.



    7. State Pensions



    The SNP says the state pension will remain the same as the UK, although it would like to introduce a lower pension age.



    Former Prime Minister Gordon Brown has warned that rather than improvements, the state pension could be placed at risk by independence.



    Any divergence in state pension arrangements will be of concern to those whose careers or retirement plans straddle the border.



    Earning pension at a different rate in both jurisdictions could lead to confusion, but what about annual increases?



    Retirees in Australia, Canada, South Africa and many other countries are bitter that their pensions are frozen at retirement because Governments cannot agree reciprocal upratings.



    8. Company Pensions



    Independence will mean massive disruption for occupational schemes.



    Scott said: “Most big UK companies have employees north and south of the border. Potentially every cross-border scheme will have to be divided.



    “The Scottish part could be in a different currency, with different tax relief and regulations. Payrolls will have to be adjusted.



    “How do you divide a scheme and decide which employees should go into which part? Every time staff cross the border do they change schemes?”



    All this pushes up costs exponentially, as would the requirement for a new regulator. The Pension Protection Fund safety net, which was set up to operate in the UK, cannot be called upon to rescue failed schemes in another country.



    9. Personal Pensions



    Different interest rates, currency, taxes, regulators and compensation systems, between Scotland and the UK, would inflate costs for firms operating in both jurisdictions, which would have to be paid for by investors, thereby cutting their retirement income.



    Moreover, firms may be required to hold higher levels of capital to make up for the scantier rescue resources of a smaller economy. This, too, would squeeze returns. With-profit funds could be particularly badly impacted.



    Tom McPhail, head of pensions research at Hargreaves Lansdown, said: “If I had money in a with-profits fund in Scotland, I’d be seriously thinking about my options.”



    Customers are advised to begin contacting their providers and ask what will happen in the event of a Yes vote. One possible scenario is that some Scottish institutions would set up major operating companies south of the Border.



    10. Isas and other tax breaks



    Tax breaks, such as Isas and those available to friendly societies, are offered by the UK Government to its own nationals and according to UK tax law. These cannot exist in a foreign country, as Scotland would become.



    11. Banking



    The more than 40 million non-Scots with accounts at banks registered in Scotland face two major worries.



    Firstly, in the event of another banking crisis, would the Scottish economy be sufficiently strong to rescue and safeguard their cash? But these customers would also no longer have access to the UK financial ombudsman system. In time, Scotland would be expected to establish its own financial ombudsman, but it could operate quite differently and English consumers – and their MPs – would have no political influence over it.



    12. Free care for the elderly



    Scotland boasts free long-term care for the elderly. However, this support is highly restricted. It only covers personal care, so people in care homes and nursing homes are still charged accommodation costs. Support depends on the state of local government finances, which means rules and means tests are applied differently between councils. There are continuing questions about the sustainability of the pledge.



    13. Education



    University education is currently free for tartan and other EU students studying in Scotland, but students from elsewhere in the UK have to pay £9,999. The SNP says this discrimination will continue after independence.



    However, lawyers believe this would not be allowed under EU law, which may open up opportunities to travel north to study.





    If you are serious about your vote having a lasting value you might want to google this…


    Scotland independence companies moving their money out of the country and do a wee bit of reading. The Economist is interesting.

  22. Good morning CQNer’s,


    meant to post this last night during discussions. Worth a read for enlightenment.




    Say NO to the Dominion of Scotland.


    At least when the Irish Free State was a Dominion it was eventually able to shake off Britannia’s control because the majority of its Peoples wanted it.


    In a “Free Scotland” that will not be the case.



    Smashing morning here in G66. Have a good day fellow Celts and Ernie your doing a sterling job (no pun intended)




  23. Kitalba


    The above article is from the Telegraph who are merely stating the Finance sector and UK govt position.



    Full of ‘if’ , ‘could’ , ‘maybes’ from a bunch of guys who like to pretent to the public that they can predict the future , whilst managing your money and raking in the commissions , thank you very much.



    Believe the financial industry / experts at your peril , they are only interested in feathering their own nests.




  24. Hail! Hail! Bhoys



    This is a people’s revolution. A huge Tsunami of supporters for independence not defined by political party ties. I am more confident than ever that Scotland will vote to end the political union and become an independent nation. Free to choose its own future direction.



    And Ernie I can understand why the Yes speaker answered your question No. I have asked the same of my Labour supporting friends many of whom I was an Labour activist with for many years. The only conclusion I can draw is they are voting No for unenlightened self interest. They are I’m alright Union Jack.

  25. Morning Ben. Any chance of getting some kind of opinion from someone with official standing about the No side trying to change the meaning of a No vote after hundreds of thousands of people have already cast their ballots by post, and in apparent contravention of the Edinburgh Agreement (clause 29) which commits both the UK and Scottish Governments to make no announcements that could materially affect the vote within 28 days of polling day?



    Just saw this post on a Scottish Independence blog, it raises a serious question, so I thought I’d highlight it. Anyways I’m off Golfing for the day, weeks Hols in Torremolinos starting tomorrow, might check in later today or else twill be day before polling. HH