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Warning from Blue Knights comes home to roost

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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. BRTH

     

     

    Yep Smith had the Rosevale on Dumbarton Rd and The Crowwood out at Moodiesburn. Not sure if he’s still got The Rosevale but pretty sure he sold The Crowwood.

  2. Yeah Bobby Glennie, great guy and non-nonsense centre half, had a pub in Dundee and you’re right it was downhill after that. Wet my 25 year old daughters head in Bobbies pub, I think I got home around 4 in the morning, what a night that was.

  3. TonyD 67,

     

     

    If you’re lurking…

     

     

    Have you heard about the republican march being attacked by a group of loyalists on castlemilk drive?

     

     

    I saw the helicopters and heard the police cars earlier… Hurting huns…..

  4. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    Testing ….

  5. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    Where are my smileys…?? ….. Hahahaha

  6. Virgils GF..

     

     

     

    “When I was in Holland, they talked about the ‘Celtic Family’ and now I know what they mean” she said. “We had a couple nights out and I enjoyed it a lot. They are very nice and make me very welcome in Glasgow. The Celtic fans are amazing, the sound they make is unreal. I think Celtic is a very good club, the people are very friendly and helpful. Most of the people I meet understand how it is to live in another country, so they help me a lot.”

     

     

    Summa

  7. 67Heaven ... I am Neil Lennon ....The angels are with Wee Oscar in Heaven.. Ibrox belongs to the creditors on

    sipsini

     

     

    18:26 on 6 September, 2014

     

    TonyD 67,

     

     

    They wouldn’t have tried that on Castlemilk drive in the late 60’s, early 70’s …. They cannae fight anyway ….. Hahahahahahaha

  8. smoke and mirrors on

    sipsini

     

    18:26 on

     

    6 September, 2014

     

    TonyD 67,

     

     

    If you’re lurking…

     

     

    Have you heard about the republican march being attacked by a group of loyalists on castlemilk drive?

     

     

    I saw the helicopters and heard the police cars earlier… Hurting huns…..

     

     

     

    passed the Kings Park Hotel earlier….loads of arrests… however if we object (quite rightly) to the orange scum marching then why is it OK for the republicans???

  9. HT

     

     

    He sold the Rosie. He has The Ettrick in Old Kilpatrick. Eddies Helensburgh bus pick up there.

  10. Zico

     

     

    Tried sending you a test email. Will fwd my hotel details once I open my case in Manchester airport tonight!

     

     

    HH jamesgang

  11. ....PFayr supports WeeOscar on

    Sevco charade continues …..cancelling a Petrofac cup game against lowly East Fife because of international call ups

     

     

    Cause that’s what big clubs do ….embarrassing

  12. If I had a £/€ for every pub owned by a player/ex-player/manager/ex-manager, I would be a lot better off than I am now.

     

     

    Jum McLean’s brother Wullie, used to own the ‘Old Loans Inn’ in Troon while, I think, he was manager of Ayr United way back in the day.

     

     

    He made Jum look like Groucho Marx! Miserable fecker.

     

     

    I was delighted when I was hatred!

     

     

    HH!!

  13. Murray Park is an outrageous folly and should be sold immediately.

     

     

    Paul,

     

     

    Given Celtic’s increasing reliance on loans and foreign imports, could the above not equally be applied to Lennoxtown.

  14. Ryecatcher.

     

    The Murphy family lease the Pot Still which may well be still owned by the Waterson family.

     

    I used to frequent the Arlington and knew Brian Murphy well from all our forages abroad with Celtic He had quit the Arlington and retired.

     

    Happenstance brought me to the Pot Still on Wednesday and I was staggered (no pun intended) to find Big Brian, large as life, behind the bar.Old times were fondly visited!

     

    His family had acquired the lease and he was ‘persuaded’ to bring his expertise to bear.

     

    After all the rubbishy pubs I’ve frequented in Glasgow, it was like finding an oasis in the desert!

     

    As Arnie was wont to say, ‘ I’ll be back!’

     

    Hail! Hail!

     

    Terrymac

  15. The Celtic Way

     

    18:00 on

     

    6 September, 2014

     

    ryecatcher

     

    17:20 on

     

    6 September, 2014

     

    Some brilliant goals in here up to the point where the Hun died……

     

     

    Henrik’s chip 6-2 was the best I think…….Naka’s not far behind it though.

     

     

    Leaving aside that THEY are not deid.

     

     

    Henrik’s beats them all.

  16. Brogan Rogan Trevino and Hogan supports Oscar Knox, MacKenzie Furniss and anyone else who fights Neuroblastoma

     

     

     

     

    17:27 on

     

     

    6 September, 2014

     

     

     

     

    Dallas Dallas

     

     

     

    Other relations were McCreadies and Frizes

     

     

    * I had neighbours growing up called Frize….the older lassie and me went through school together….she’s in Oz now but was back home last month and visited the family home in Moyrus.

     

     

    Also I went to St Pats with John McGinley from Dalmuir…he had a wee brother a class below called Jim….they were quite dusky…probably part of the “black Irish”.

  17. newradbhoy

     

    18:55 on

     

    6 September, 2014

     

    Can anybody please tell me if the Scotland game is on tv tonight please?

     

     

    Unlikely unless they have got hold of a Tardis.

  18. smoke and mirrors

     

     

    18:35 on 6 September, 2014

     

    sipsini

     

    18:26 on

     

    6 September, 2014

     

    TonyD 67,

     

     

    If you’re lurking…

     

     

    Have you heard about the republican march being attacked by a group of loyalists on castlemilk drive?

     

     

    I saw the helicopters and heard the police cars earlier… Hurting huns…..

     

     

    passed the Kings Park Hotel earlier….loads of arrests… however if we object (quite rightly) to the orange scum marching then why is it OK for the republicans???

     

     

    ———-

     

     

    That you post stating that a Republican parade is the same as an Orange Walk highlights your ignorance and stupidity.

     

     

    That you post about nothing apart from attacks on anything remotely connected to the supporters of Celtic/Irish/Catholic culture highlights you as a troll.

  19. You’re well ahead of us newradbhoy. And that includes the teams.

     

     

    We’ve all arranged it for Sunday night!

     

     

    HH jamesgang

  20. smoke and mirrors,

     

     

     

    I didn’t say it was ok, I commented on there being a disturbance from a loyalist group attacking a republican march.

     

     

    Might I add, there is regular orange parades in castlemilk every year that is trouble free.

     

     

    Maybe some walks are acceptable and some aren’t. eh!

  21. quonno

     

     

    18:57 on 6 September, 2014

     

    newradbhoy

     

    18:55 on

     

    6 September, 2014

     

    Can anybody please tell me if the Scotland game is on tv tonight please?

     

     

    Unlikely unless they have got hold of a Tardis.

     

     

    —-

     

     

    Get you quonno!

     

     

    You’ve got a telly in your tardis! You flash git!

     

     

    I’ve just got an MW/LW trannie in mine!

     

     

    ;-)

     

     

    HH jamesgang

  22. eldiegobhoy

     

     

    That’s HT in a good mood with Minx stroking his smooth brow and popping the occasional malteser in his gob and passing a cool lager to sip on.

     

     

    You should see him when his dander’s up!!!

     

     

    HH jamesgang

  23. ElDiegoBhoy

     

     

     

     

    19:03 on

     

     

    6 September, 2014

     

     

     

     

    Memo to myself. Don’t get on Hamiltontim’s bad side:o)

     

     

    *crabbit is no the word to describe him….widnae want tae be one of his pupils :-)))))

  24. Dallas Dallas where the heck is Dallas on

    Starry Plough, thanks for your concern about my blood pressure. LOL

     

     

    I had the misfortune to be in Mark Dingwall’s company around 1981. My pal’s pal knew him from school. When I was introduced to him, the first thing he said to me was ‘you’re a tim’. I answered yes and he replied you look like one. I didn’t enjoy hs presence when we had the misfortune to have him in our company.

     

     

    Gregory Porter was on Radio 5’s drive time show last Thursday. He explained how his mum compared his voice to Nat King Cole’s. A lot to live up to.

     

     

    Brogan, thanks for your reply. My former parish priest, Big Mick O’Connell at St Laurence’s in Drumchapel, was a great friend of the removal McGinley’s. One of the curates at St Laurence’s was Father John McGinley from Clydebank.

     

     

    Someone posted earlier about the sevs cancelling a game v East Fife due to international comittments. I work with an East Fife fan & he is less than chuffed about it. I notice how the media have not made an issue of the club with the biggest squad in the lower leagues, can’t cope with 4 players being away on international duty.

     

     

    The BBC gossip page had a story how a sevco v Cowdenbeath game next month has already been cancelled for the same reason and they ain’t happy.

  25. EDB

     

     

    The said poster has continually posted nothing but personal attacks on another poster and me. Recently he brought H into a post attacking me.

     

     

    I never see him posting anything other than troll like comments.

     

     

    Trust me, I was polite in my response :-)

  26. blantyretim is praying for the Knox family on

    Smoke and mirrors has previous, maybe thats why he has such a moniker.

  27. Tontine Tim

     

     

    Hope you’re well my friend. Aff oot shortly for a Ruby Murray in the Burgh of Helen:o)

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