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Whyte opens door on finances as securitisation confirmed

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Craig Whyte laid out Rangers finances in a statement today, released in response to the Daily Record’s series of articles on the club this morning.  Whyte explained Rangers operating costs are around £45m while their income is approximately £35m, adding that the club needs to “live within its means”.

He confirmed the central allegation from the Record, that Rangers have securitised income from future season ticket sales in order to provide money for the club to pay its current costs, while denying they owe £5m VAT.

I have refreshed the page several times since an initially read and see no attempt to address the glaring question, if Rangers are spending tomorrow’s income today, what happens tomorrow?  It beggars belief that someone thought it was a good idea to confirm a fact like without addressing the enormous question now hanging over the club.

Maybe an octopus ate Craig’s homework.

I’ve no idea how much money Rangers have in the bank right now, at this time on transfer deadline day, no one even seems to know if they have sold prize-asset, Jelavic, to Everton, but no matter how much of the securitised income remains, if this is not a dead parrot, it’s in severely poor health.

More power to you, Craig.  I’ll not have a word said against you.

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  1. Here’s some news of a move that looks like it won’t be happening. Rangers have confirmed they have had a bid for Norwich striker Grant Holt turned down by the Canaries. The likes of Chris Woods, ‘Disco’ Dale Gordon and, er, Kevin Drinkell have all made the move from Carrow Road to Ibrox in the past but, with Norwich doing so well in the Premier League and with him having cult status in Norfolk, you have to ask why the 30-year-old Holt would want to leave, even if Norwich were willing to sell him? Thoughts.

  2. The Battered Bunnet on

    Must say, I did like the bit in the Record script that said Rangers’ fate was now in the hands of Octopus.

     

     

    Suckers.

  3. Declan Is Neil Lennon 1888 Hates being 2nd on

    Paul76 – at last somebody else is startign to see that whyte is playing this well. or was that comment tongue in lip from you. can i say somethign else to you too. the phrase is a dug ate your homework. octopussys dont eat homework unless you are doing it in a fish tank i cannae see how it could even happen

     

     

    hail hail

  4. Here is the wee chancers statement (sorry if it has been posted already)

     

     

    Craig Whyte Statement

     

    Tue, Jan 31, 2012

     

     

     

    THE Chairman of the Club has written the following open letter to all Rangers supporters:

     

     

    To all Rangers supporters,

     

     

    I write to you today to address a number of key issues facing the Club.

     

     

     

    First, I would like to address specifically the latest attempt to undermine Rangers in today’s Daily Record which devotes five pages to trashing our efforts to get this Club back on a sensible financial footing.

     

     

    In the most lurid terms, the Record accuses the Club’s management and, specifically me, of using supporters’ money to help fund the buy-out of Rangers. Not true.

     

     

    The Club is accused of not paying £5million in VAT. Not true.

     

     

    I can categorically assure supporters that when I launched a takeover bid for the Club it was funded entirely from one of my companies and that was demonstrated clearly to the satisfaction of the previous owner, Lloyds Banking Group and professional advisers.

     

     

    What is true is that Rangers, like many other clubs, has a financing arrangement in place with a company called Ticketus which enables the Club to receive revenue from a portion of season ticket sales in advance.

     

     

    There is nothing unusual or untoward in this arrangement which was put in place at the Club long before my takeover last year and was used by the previous management. For members of that regime to criticise the use of a scheme they put in place is, frankly, outrageous.

     

     

    This is a perfectly straightforward way of raising working capital for the Club. Money from season ticket sales goes directly to the Club and is used for the Club’s operations and that remains the case. In effect, all this financing arrangement does is release the revenue to the Club earlier.

     

     

    The Daily Record’s approach to this story sought to distort and dramatise the matter. I for one will not be reading or buying the Daily Record again and I’m sure many other Rangers fans will share my disgust at yet another smear on this football club.

     

     

    It was, predictably, fuelled by accusations of former board members of the Club. I simply ask Rangers fans what these men did for Rangers in the Club’s hour of need? They were all talk and no action and presided over the Club as it careered to the brink of financial collapse.

     

     

    The overarching issue that affects Rangers financially is the HMRC tax tribunal, which has been hanging over the Club for many years and long before I became chairman. As I have said many times before, the sooner that is resolved the better.

     

     

    In terms of the playing squad, you may know the Club has agreed a fee with Everton for the transfer of Nikica Jelavic. We wish the player well and thank him for his contribution to Rangers.

     

     

    The reality of Jelavic’s departure is two-fold. One, the player wanted to leave and there is no point in trying to keep a player who no longer wants to be at Ibrox. Two, the Club is simply not in a financial position to turn down offers for players which give the Club a good return on its original investment.

     

     

    Investment in the playing squad has been a thorny issue since I took over the Club in May and is the source of endless debate, much of it ill-informed. I want to set the record straight.

     

     

    In the summer transfer window last year we conducted 14 different pieces of transfer business, more than any other club in Scotland. This included new signings and improvement to existing contracts with key players, increasing the players’ wage bill significantly. We now have a first team squad of 30 which includes 18 full internationalists.

     

     

    Admittedly, there were transfer targets we did not secure but that is not uncommon. As chairman, I have supported Ally McCoist in his choice of targets and will continue to do so. The timing of Jelavic’s departure so late in this window is far from ideal and efforts to improve the squad will continue until the transfer window closes.

     

     

    That said, we must be realistic. Media coverage of the transfer window has bordered on the hysterical. As it stands at the moment Rangers has operating costs of approximately £45 million a year and revenues of around £35million – not including revenue from possible Champions’ League and Europa League participation.

     

     

    As we know, European money cannot be taken for granted and it doesn’t take much to work out that without it there is a big financial hole to fill every year – regardless of who owns the Club.

     

     

    I’ve said many times that in Scottish football we have to move on from this mindset that you have to keep spending more and more money – that’s what got this Club into financial trouble before. We have to live within our means, continue to develop talent and spend wisely.

     

     

    These are challenging financial times for Rangers – as they are for many other businesses. What I can say to you as a Rangers fan is that everything I will do as chairman will be in the interests of the Club and I thank you for your continued support.

     

     

    Craig Whyte, Chairman

  5. RATM - A BAMPOT! on

    Paul67,

     

     

    Just been saying as much to my dad, a 10 million pound cash shortfal,l no matter which way you look at it is a lot of money. Also Craig Whytes idea of good business is basically the equivalent of a Wonga sort term loan.

  6. Paddy Gallagher on

    Reporter at Murray Park on SSN just said ‘I will be here to update you on Ally’s attempts to replace Jelavic’.

     

    I think I will go for a pint to relieve the tension.

  7. kentbeth says:

     

    31 January, 2012 at 17:00

     

     

    Smokescreen at best that’s if your trying to be kind, Norwich’s owner rubbished it earlier say none of Paul’s player are for sale, not to rangers or anyone else..

  8. !!Bada Bing!! Kano 1000 on

    Fred the Shred loses his knighthood,i wonder who might be next? An online petition might be helpful…

  9. TBB

     

     

    Sounds like a ’50’s B-movie:

     

     

    It’s tentacles are everywhere!

     

    Watch in TERROR as your future income gets sucked away!!

  10. Enquiries for Samaras.

     

     

    M Wilson to decide Leeds or Bristol City.

     

     

    Trying hard to get Rasmussen out the door, we offered him to Dundee Utd.

     

     

    Molina, we need to double our bid but Celtic cooling interest as activity down South means some targets might become available.

  11. The only business in Scotland now will see Sandaza move to Rangers once Jelavic signs for the Toffee’s. Celtic wouldn’t make a move would they?

     

    There is usually some crazy rumours late on so if there is an EPL player who needs games and wanted to come to Celtic would PL burst the bank for a big name player to come in on loan? If so who is available?

     

    It’s been an excellent transfer window could it be a great one?

     

     

    LB

  12. Estadio Nacional on

    As rangers die their thousandaire owner suggests a boycott of their failing fanzine/newpaper.

     

     

    Brilliant, you cant make this stuff up.

     

     

     

    Let them die.

  13. Paul67 et al

     

     

    Now that Fred Goodwin has been stripped of his knighthood can I be the first on here to suggest that the next knighthood forfeited, and for similar reasons, is that of former Chairman of Rangers FC, David Murray. Rewards and awards for failure have got to stop!

  14. Former Royal Bank of Scotland chief executive Sir Fred Goodwin has lost his knighthood.

     

     

    Maybe Sir Minty next ha ha..

  15. Views on January

     

    Thank you Neil Lennon and players

     

    Thank you PL and the Board

     

    Thank you Paul 67 CQN andRTC

     

    And thank you Craigy White And fatty McCoist for the comedy gold icing on the cake.

     

    ROLLLLLL on February and the march to the title.

     

    HAIL HAIL

  16. !!Bada Bing!! Kano 1000 on

    Guy on CM knows the girl who works for Celtic as translator , speaks 12 languages , saying still working on 2 signings

  17. The Battered Bunnet on

    Bada bing

     

     

    Which languages is she using?

     

     

    btw, laughed at your tinned pigeon line.

  18. Ten Men Won The League on

    As i predicted this morning

     

     

    Jelavic out.Sandaza in

     

     

    Fat Sally currently meeting with the Shyster

     

     

    Is he handing in his resignation? :)

  19. After today’s ‘revelations’, surely no one would believe they would receive any transfer money from Rangers? Would they?

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