According to published accounts the operating expenses of Ibrox etc (not including salaries) are £14 million. It MAY be possible to slim this down to £10 milion.
Wages used to be around £25 million. If we cut them down to the bare bones of £5 million then we have a rough total cost of £15 million. Rangers may get about £3 million historical commercial revenue leaving a balance of £12 million to find. With little other revenue streams this money must be raised through tickets sales.
20 games at £600,000 per game = 30,000 fans at £20 per head.
The future of the newco solely depends on the fans, if the average attendance is 20,000 then it will run out of money 2/3rds way through the season. This is assuming the newco can reduce its fixed running costs and reduce its wage bill by 80%. It also assumes fans will pay £20 to watch glorified Junior football for the best part of 3 years.
This scale of downsizing is unheard of in modern business and I personally do not believe it is feasible.
Only an eternal optimist believes the average attendance will be 30,000. A more realistic figure is 15-20,000 and that will NOT be enough.
I estimate Rangers will be right back to losing £10 million per year for 3 years as estimated by Bill Miller.
Take a look at Leeds Utd in the Championship, average gate at 24,000 with high ticket prices, huge prize money and Sky-commercial benefits, they had an effective operating loss of £2 million.
There is a small possibility that 36,000 fans would renew their season tickets at the full price this year, if the fans knew it was NOT going to cost them a fortune in a future share issue.
The problem with CGs gameplan is he is asking fans to save Rangers, so he can charge them an arm and a leg to buy it off him in 4 years.
He has openly stated he is in it to make money for his investors, he has no more investors’ money, only fans’ money.
It’s a catch 22 situation for all Rangers fans.
In my opinion Charles Green will sell before the season begins once he sees the season ticket sales.
Posted by Niall