I thought I would have a close look at this media offering where Chico has been allowed free rein at making his AIM sales pitch with only a cursory nod to a contrary opinion.
However that isn’t what particularly interest me in the piece but more the way in which Chico slides over the AIM terrain – what a performer he is and must really be applauded for his sales skills. Definitely he could have sold snake-oil at the Glesca Barras nae problem and not being from these airts and pairts Chico might think that’s a dig at him.
I actually award him the highest accolade I can and anyone who has read my post on the original snake oil salesman of that Hallowed Emporium would recognise the honour I bestow.
However back to the CITY A.M. sales pitch which is important because I think it immediately identifies where £5 million of the flotation capital will be spent. There will also be money spent in pump-priming Ibrox regeneration but it is hard to be specific and really Ra Cooncil will be in the driving seat over permissions and, more importantly, land release as Chico wants ground as a quid pro quo for developing it.
He would of course make money from this Cooncil land so it will, no doubt, come under careful scrutiny as the public purse is involved.
I reckon that £10 million from the total share flotation is already earmarked so, to an outsider, things still look quite finely balanced before any money goes to buy players or to operating capital. Of course, if all else fails, then future ticket money can be sold in a Ticketus-style deal.
Lots of clubs do it although Craigie did go a tad too far. There is, of course, the possibility of a series of share floats and if that happens then I think the carrot could well be the sale and lease-back of Ibrox and possibly Murray Park although it might make financial sense to sell the latter and build a similar smaller facility at Ibrox.
Not sure how much capital will come from actual developers to revamp the Ibrox area and, to be fair – Chico has oodles of connections in that field – how much will come from Rangers.
Flotation costs won’t be cheap and could possibly run from £1 to £2 million with Green’s 10% commission on a successful £20 million flotation raising £2 million. And what about the original say £12 million capital – that’s another £1.2 million plus the £5 million I mentioned earlier. All that gives me my £10 million which I freely admit is guesswork with hopefully some foundation but like AIM investment it is up to you to draw your own conclusions.
Chico states: “There is a wealth of talent there – we’ve got five guys aged 18 and under playing in the first team. Tell me a club that’s got six players under 20 that have played 100 league games each – that’s the opportunity now that exists for us. ”
Have you really got six U20s that have each played 100 league games?
Chico states: “Who thinks there’ll be a European Super League within 5-10 years? I do. I spoke to one of the commercial directors at Arsenal. [They] don’t want to play Southampton or Swansea”.
It’s the voices in the heid again and yet another unnamed football official telling him things. Everywhere he goes people seem to sidle up to him and whisper in his ear.
Chico states: ‘”And Football fans are not just the people who live in Hackney. Fans are in India, China and they want to see Man Utd play Barcelona, not every eight years but every season. If there’s two divisions of eighteen then how could Rangers not be in it? I’m convinced it will happen.”
So it looks as though we have gone from a Euro Super League to a Trans-world one. I hate to admit it but I think even Celtic would struggle to be one of the top 36 clubs in the world. You have often said Chico you’re thing is horse racing and you don’t know that much about football so I would stick to tipping horses rather than football shares 🙂
Chico state: “The minute they kicked us out of the SPL, you have your own image rights. In two weeks we’re going to broadcast our away match at Clyde direct onto the internet.”
Mmmmmm wonder how this Super League is going to fund itself if all the members negotiate individual media contracts – Should be fun 🙂
Chico states: “There were 26,000 shareholders in the old Rangers company that was listed on the Plus market. Those shareholders – through no fault of their own – lost their investment and should be given the right to apply for shares.”
I see he ignores the debenture holders who I think lost a lot more and many would also be shareholders. Some time ago I mentioned on here that it would be a nice gesture to allow fans who had lost money a discount on fresh share purchases but I see that greed has overcome moral responsibility.
Chico states: “If people saw the 2008 UEFA Cup final in Manchester, Rangers took 216,000 fans who didn’t have tickets. That illustrates how big this club is. That’s brand loyalty.”
It is indeed Chico and lest we forget: http://en.wikipedia.org/wiki/2008_UEFA_Cup_Final_riots
Chico stated: “[I told some investors two years ago], put £50m into Rangers and you’re guaranteed to play in Europe every year – and it’s the only league in Europe that has that guarantee.”
Tell us more Chico about your mystery investors that keep popping-up in relation to Rangers. And two years ago – I wonder why Glasgow Rangers popped-up on your radar at that time?
Chico stated: “We’ve got a great balance sheet, the envy of football – which football club today has got no debts, no borrowings and cash on the balance sheet? We’ve got cash today, we will raise cash in the IPO and before this fiscal year ends we’ll have cash for next year’s season tickets.”
Why don’t you publish this oft-quoted pristine or is it blank balance sheet. Green Brigade are always looking for clean sheets 🙂 And WTF is the Freudian slip about having the cash to buy next season’s tickets all about? Did you mean to say you’ll have the cash to pay Ticketus?
Chico stated: “Assuming the manager does his job and gets us promoted [we’ll sell more]. The price will be higher – let’s say we sell 40,000 season tickets next year at £500. I’ve got £20m. Tell me which high street shop can tell you with that predictability the levels of revenue”.
I will pass on whether Ally can achieve promotion or not – I will leave that for Bears to argue over. Increase in ST price will I’m sure be gladly paid by the faithful as it provides an even greater test of their loyalty. Perhaps your PR consultants should have schooled you a bit better though – very down-market to compare the mighty Rangers to a corner shop – the corner shop that may well have been trading successfully for a 100 years and paying all its bills and taxes, as well as serving its community faithfully, might get very upset, quite justifiably, at being mentioned in the same breath as Rangers 🙂
Chico stated: “Historically [the record of floated football clubs] is even more abject that what you’ve described, they’ve all been poor showings. But there are models – Arsenal is a classic”.
Indeed it is Chico but basically it’s shares are traded privately and are in the hands of a few rich individuals. So how is that a ‘classic’ when you don’t want any individual or group to own more than 10-15% of Rangers shareholding? There is also the sensitivity of Bears to the recent sale of their Arsenal shares and I stand full square with them on that particular move by your predecessor.
Chico stated: “I would be disappointed three years down the line if we’re not doing £30m and making £7m just from merchandising. Now, if we then say we’ve done the property deal and get £5-10m. If we’re back in the top league, in Europe, that’s £60m. Merchandising, better sponsorship and we’re turning over more than £100m.”
Certainly ambitious but as long as fully costed sounds really exciting for fans. Not sure about timing though as you are barred from Europe for 3 years and would need to get in the top league aka SPL and play there for a year and win it to get into Europe. I have often pondered on whether Scottish League reconstruction could remove or reduce our Euro opportunities but obviously you seem to have more of an inside track on that – any tips on horses btw as I’m a bit leary of your football ones 🙂
Chico stated: “The original 19 shareholders came in at 50p. We’ve just done some pre-IPO funding at a £1. I’d like to see the fans with 15 or 20 per cent of the club. And maybe 50 per cent held by institutional investors.”
Well, we still don’t know who the mystery shareholders are or how much capital was invested by them but I’ll make a guess a c £11 million and I don’t think there’s much if anything left and that’s why the current float is needed rather sharpish. Maybe that balance sheet is indeed clean with not a single figure on it.
Chico stated: “In Scotland you can’t get a drink unless you’re in a members club. We’ve got a club that costs you £700 a year for membership. I’ve got a stand behind the goal with nothing behind it – stick a bar in there, cost you £1m.”
I assume that Chico means at a football ground. So we are going to have another bar built. Find Chico if you think that’s not only a money-raising scheme but a good idea.
Chico stated: “Edmiston House, which I’ve agreed to buy off David Murray, we could put another members club there with a walkway down into the stadium. I need £1m to buy it, £2m to do it up but it’ll bring £2m pa in income”.
Just like you Chico I’m getting on a bit and the old memory is going but I thought it had been announced that you had already bought Edmiston House from whatever part of the Murray Empire it has been languishing in. So between this and the stand bar that’s £4 million from the flotation. OK you gotta invest to make money – no probs there.
Chico stated: “We’re saying to the council, let us regenerate this area, we’ll build a new railway station, but give us the land next to it and we’ll build a hotel. I believe we can get £5-10m a year in recurring revenues from the rents. What would even a new railway station cost – I don’t have a clue but let’s guess £1 million.”
I have left your comments about why previous area redevelopment plans have failed as it’s what you are going to do rather than just say, like previous owners, that is important.
Your promise to build a new railway station is impressive but what about the permanent way and running costs – I hope that you will be paying an annual percentage of those costs as it would be unfair to ask the taxpayer to sink any more cash into Ibrox – don’t you think?
Now a little of Ally as it would be unkind to leave him out.
Ally said: “I’m excited. I don’t believe for a minute we’re out of the woods but at least the light is at end of the tunnel. We’ve lost 28 players in six months. We’re not going to get back to where we were overnight.”
If I was you Ally, I too would be excited and more than a little apprehensive. However, play less golf and you might get out the woods and I really am fed-up hearing about the light at the end of the tunnel. In keeping with Chico’s current single track railway theme I would observe that the train can’t be moving because it seems the light never gets any bigger or brighter and the end of the tunnel isn’t getting any closer. I also notice that the SPL Station is non-stopping for the slomo Sevco Express.
Lost 28 players? Careless? Not if you knew the game plan which was they were going to be sold to raise mullah and anyway who needed them in SFL3? Might I whisper – possibly Rangers 🙂 You could also have replaced more of them but it seems Chico didn’t give you the necessary cash to do so.
Chico raves about the footballing wage bill being restricted to £6 million pa – if the 28 hadn’t walked away or hadn’t been sold what would the wage bill have been? Possibly £15 million pa?
Posted by Ecojon