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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Ellboy – I am Neil Lennon, YNWA.
11:34 on
8 September, 2014
1) We’ll be wholly governed by a Parliament that while obviously not always your personal choice, will at least have ‘won’ in Scotland.
2) We won’t be spending billions on an absolutely unnecessary nuclear deterrent
3) We won’t be subsidising infrastructure that has zero benefit for Scotland eg HS2.
weet, weet, weet…
No doubt the board did cack hand things but I remember my late father being very critical of Bobby Evans because of the way he left Celtic and a suggestion of some money irregularities and other events.
I don’t know if anyone else can confirm or refute these beliefs.
HH
Ernie,
Do you still think it’ll be 2:1 in favour of no?
Ernie….
So he’s a politician…he’s in good company with others!!!
HH
tlwio
As a committed socialist, Darling will eat your bogeys too if you want him too.
He IS the Bogey Man.
Look at his scary eyebrows.
Thank wee minger appreciate the time taken to reply. Im a control freak an like answers an its he lack of definitives that concern me. To play devils advocate have you seen towns around the border in Ireland. Big diff in prices an people regularly cross border for cheaper goods. I know its comparing apples an oranges an not fair comparison but its another point to consider.
Thanks for reply appreciate it, that’s politics done for me.
I’ve voted in every single election i was legally allowed to without exception an was really excited to see country energized an gettin involved. Unfortunately it has turned into school boy politics with point scoring more important than policy an asking questions. I hope after vote country is able to move on. Not convinced things like living wage etc will change either way. Im happy to pay a couple of pence in pound if it helps country but not if it finances bludgers, the benefit needs over hauled an more incentives to work, generations have fell by the waste side an something needs done bout that. Whatever way it goes hope this issue becomes priority. Thanks again for the civility. You’re a good person
Geordie Munro
11:48 on 8 September, 2014
‘Ernie,
Do you still think it’ll be 2:1 in favour of no?’
##
Yes.
Do you still think it will be a no vote?
South of Tunis
There is the rub.
We either believe in the best of human nature or the worst.
What we choose is what we get.
OMG…
Could the royals not have held an announcement back until Sep 19?
The fawning has stared already…
Should add a couple of % points to the ‘yes’ side!!!!
SFTB
Thanks for clearing that up.
I feel sure however that Mr D’s socialist principles fall a little short of the lofty standards you suggest…
:-)
Ernie@ 1151
Aye. But closer than I thought it’d be 6 months ago.
justafan
11:52 on
8 September, 2014
OMG…
Could the royals not have held an announcement back until Sep 19?
The fawning has stared already…
Should add a couple of % points to the ‘yes’ side!!!!
—————
I’ve tried to stay out of the Indy but you cannot seriously be suggesting that there are undecided voters whose vote will now swing to No because of a royal birth.
If that is the level of decision making then , either way, we’re done for…
Ellbhoy
1. No Tories running Scotland
2. No Tories running Scotland
3. No Tories running Scotland
Err that’s enough
Sorry for the football related post
I see blatter is standing for re-election for a 5th term as fifa president. Of course he knows where the bodies are buried – he may have buried a few himself.
Auldheid, if you believe ErNAY, we will become a Banana Republic under Salmond! :-)))
tlwio…
Wasn’t meant to be taken too seriously…
But I do find the fawning a real metropolitan media disease which the rest of us (monarchist or republican) are force fed!
Ellboy – I am Neil Lennon, YNWA.
11:34 on 8 September, 2014
For the 100% Yes voters..
Can you give me three things that you are 100% sure will improve our lives as an independent country?
1. The Scottish people will get exactly what they vote for in general elections in an independent Scotland. – Under the current system, they don’t.
2. Scotland can make independent decisions about it’s natural resources (Oil, Gas, Water & Wind power etc;). Under the current system it cannot.
3. Scotland will be able to rid itself of the stationing of weapons of mass destruction on it’s territory. Under the current system, it is unable to do that.
There is much more but you asked for three. Here they are.
HH
Gerry
Weeminger;
“We won’t be spending billions on an absolutely unnecessary nuclear deterrent”
The Referendum is on Independence only. The first Elected Scottish Government would determine the future of Trident. Are you keen to join NATO with their Nukes? Are you another NIMBY?
https://www.youtube.com/watch?v=0XzY1q7Io5E
hehehehehehe awfy braw ……”and sent them homeward to learn to skip!”
braw says AYE………………..
ah heard that in the new scotland Alex Salmonds face will be the £50 note.
and a national holiday for his birthday.
well everyone else is making stuff up.
Soon be time to book the taxi with the dodgy brakes.
Bawsman:
How many Catholics in the SNP Cabinet?
I don’t know and don’t care.Neither do I care how many are in westminster it does not matter.
Whatever happens on the 18th, I will never forget the buzz of these present days & the feeling that our own future is actually, for the first time EVER, in our own hands.
mayanman
12:02 on
8 September, 2014
I don’t believe nuclear weapons are required at any level.
Am I keen to join NATO? I’d be happier if it was a nuclear free organisation, but that’s never going to happen. As I ponder your question, I wonder if it’s really that relevant nowadays. I suspect a more EU centric force might be more useful, or just a UN one.
weeminger
1) We’ll be wholly governed by a Parliament that while obviously not always your personal
choice, will at least have ‘won’ in Scotland.
2) We won’t be spending billions on an absolutely unnecessary nuclear deterrent
3) We won’t be subsidising infrastructure that has zero benefit for Scotland eg HS2.
——————————————————————————————-
Thanks for your top 3!
I’ll give you 1 as this will be 100% true. Although I suspect we will have successive Labour Governments for the foreseeable. Basically turning Scotland into a one party system which is never a good thing.
2) We’ll have to disagree on Trident as IMO it’s entirely necessary.
3) HS2 in time could be very beneficial for Scotland. Faster commute for tourism etc etc.
improving infrastructure can only be a good thing for all of us. Talk of it being extended to the central belt? Would HS2 be a viable proposition for an independent Scotland?
Anyhow a fast train service from the North of England to the South makes your top three for a yes vote. Seems a little thin, No?
Kilbowie Kelt will vote YES
12:09 on 8 September, 2014
I feel exactly the same the last few months have been fantastic,the number of normally apathetic Scots who are motivated to take part is incredible.
Ernie Lynch
I see you don’t have the balls to say too wee, too poor or too stupid yourself.
You’re posting American economists saying it for you.
I cannot get it.
I must not be genetically programmed to get it.
Ellboy – I am Neil Lennon, YNWA.
11:34 on
8 September, 2014
For the 100% Yes voters..
Can you give me three things that you are 100% sure will improve our lives as an independent country?
——————-
1 – ban under 10 year old children from supermarkets – my weekly ten minute dash round sainsburys is too often spoiled by the sound of torn faced wee brats greeting their heads off for no reason whatsoever
2 – ban under 10 year olds from airplanes – my infrequent airplane journeys are too often spoiled by the sound of torn faced wee brats greeting their heads off for no reason whatsoever
3 – compulsory national service for under 10 year old children to stop them turning into torn faced wee brats
sorted!
Ellboy – I am Neil Lennon, YNWA.
12:13 on
8 September, 2014
Oil will have run out before HS2 gets to the central belt! :)
timmy7_noted
12:08 on 8 September, 2014
‘Bawsman:
How many Catholics in the SNP Cabinet?
I don’t know and don’t care.Neither do I care how many are in westminster it does not matter.’
###
The SNP have never had a Catholic cabinet minister.
The laws of average suggests that the fact that they haven’t means it matters to someone.
Ernie and NegAnon2 do you two guys post your political views/opinions on any other blog or exclusively on this one? Hail Hail Hebcelt
ErnieLynch 0934
Is that the same banks who contributed to the financial collapse in 2008, by over-selling mortgages to people who could not afford them, in order to boost their over-inflated profit margins, at the expense of the ordinary working people?
Why do people refer to “Scottish Banks”? – RBS is owned by the UK plc, and the BOS is owned by Lloyds-Halifax. We have cross-border trade and financial transactions on a daily basis throughout the business world, and not just within the UK. It is difficult to see why that would change?
Hebcelt no. Just this one and really just about this referendum. It’s absolutely the biggest decision we will ever make.
Hopefully the unemployed youth of Scotland, the Have Not’s, the Romantics, and the Nationalists will outnumber the Have’s, the New Labour Diet Socialists, the Wrap-the-Union-Flag-Around-Me-ers, and the elderly Scared-of-Changers.
Vote Yes on September 18th
hebcelt
12:16 on 8 September, 2014
I post football stuff on a number of political blogs.
What about you?
timmy7_noted
12:08 on
8 September, 2014
Bawsman:
How many Catholics in the SNP Cabinet?
I don’t know and don’t care.Neither do I care how many are in westminster it does not matter.
========================================
Exactly the point I was trying to make about being branded some kind of ‘royalist/loyalist’ because I would prefer a NO vote. I care not a jot about royals, unlike the SNP who wish to retain them as Heads of State.
I am a Republican socialist who prefers less borders rather than more.
For what its worth…my take on some likely outcomes if ‘yes’…
1. Currency union…very likely but as a transitional arrangement until a viable Scottish Central bank is established and stable, maybe 3 – 5 years.
2. EU Membership…very likely but initially on an associate basis. Other than Spain very few members would have objections of principle. The complex politicking again probably means full accession in 3-5 years. The integration of Scotland would be one of the simplest accessions in the history of the EU.
3. NATO membership… almost certain. The idea that Europe’s north western sea route flank would be held at arms length is risible. Poor George Robertson is I fear, and I genuinely mean this kindly, in need of help. His mental state seems unbalanced in the extreme.
Having said that though that these three items have taken up so many hours of debate and miles of newsprint is ridiculous and frustrating. The questions that really need to be faced by separatists are the important real life issues…
Pensions
Employment
Trade
Social Services
Social inclusion
Taxation & redistribution
Health & education
To name but 7.
It seems to me ‘Yes’ really need make a strong case on all these items for no/undecideds (like me) to realistically consider separation as a benefit.
I may be ill informed but I haven’t seen that strong case.
HH
hoopy-do
you`re an undertennist