Guest Poster Den’s Thoughts on the Future For Rangers

One of our regular commenters, Den, posted the following in response to a comment by Niall. It gives Den’s summary of where we are and of what COULD happen, rather than what WILL happen.

I felt it would be useful to pop it up as a Guest Post – so here it is.

———————————————————–

I am certainly struggling with this whole affair. My guess would be that another insolvency event is likely.

This whole affair has confirmed what I knew of the weaknesses of Company law and administration and surprised me in how blatantly the laws and rules can be, and were, disregarded.

It is hard time know what Craig Whyte is contesting or what he has ever been up to. I would think it was always in his own interests and always will be. If others lose on the way I don’t expect he will lose any sleep. Anyone who has followed this story will find it hard to disagree so far.

CW had control of Rangers. He has taken a huge loan from Ticketus to achieve this. If you accept that CW and Ticketless are naive business operators you may accept that they blundered and were sidelined at an early stage. Given the protagonists I tend to believe that they would have have tried to protect or reclaim their investment.

The CW tapes are interesting. I would dismiss his word in most circumstances but the tapes suggest he was protecting his investment by entering an agreement with CG which would have kept him in control of Rangers. His contribution of £137.5k may seem like chickenfeed in many circles but I think it is significant for the following reasons: CW doesn’t usually pay out anything at all, it is 25% of the 10% deposit on the £5.5m purchase price of the assets of Rangers Oldco, it went to Mr Ahmad’s mother.

My guess is that CG was still in the loop.

The EBT saga is ongoing and we know that the FTTT knocked five of the trusts on the head and also found the ones for SDM and those of his sons to be doubtful. There are letters by the score and they are related to the employment. Given that there is an appeal, it looks like a contingent liability to me.

The sale is not being contested at present but BDO haven’t played their hand at all up till now (I really wish that they would do something, but that is just me). CG may still sue, if he can persuade lawyers to take his case without payment up front. Someone else that we don’t know of may still emerge.

Seven million losses in seven months doesn’t make twelve million losses in twelve months inevitable. In the absence of effective management it usually means more than twelve million losses. So far the management doesn’t inspire confidence, my opinion of course.

Survival doesn’t hinge on a massive boycott but on continued support, the fans have done well in the circumstances but their patience is always being tested.

I don’t see much evidence of a business plan. Frightening cost base, lowered revenue possibilities, senior figures leaving regularly, board disunity. I don’t see two years under this scenario.

You say that once they are in the SPL they are more or less secure. That is two divisions from now. I wouldn’t be too sure that the progress will be one division per year. Even so they could struggle in the SPL. All in all it is a long haul for the fans and that is the key source of revenue for Rangers as Europe is out of sight and nobody is going to put significant sponsorship into a club that is so far from the big time with serious management issues.

It is of little consequence to me whether Rangers go bust again. I think it is probable though.

Like you say though; with Rangers anything is possible.

 

Posted by Den

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91 Comments

Filed under Guest Posts, Rangers

91 responses to “Guest Poster Den’s Thoughts on the Future For Rangers

  1. JohnBhoy

    Nothing is possible with Rangers. They do not exist. The club playing in the SFL has not gone bust before, therefore cannot “go bust again”. They are a new club.

    That dead club, to Scotland’s shame, was the beating black heart of Scottish football. It was the establishment club that was, ironically, determinedly anti-establishment: for much of its inglorious existence it operated an anti-Catholic employment policy, sang bigoted songs with impunity, sought out sleekit ways not to pay their taxes on an industrial scale, boasted about leaving creditors out of pocket, and rioted home and abroad at the drop of a bowler hat. They died from the excesses of Thatcher’s Capitalism.

    • Adam

      Bits of coal. Bits of coal.

    • Maggie

      @JohnBhoy
      Hi JB,glad to “see” you back 🙂

      • JohnBhoy

        Hi Maggie

        Dipping in and out. Busy writing and travelling! What’s up with Pensionerbhoy? Think I got the tail end of something about his health. Hope he’s ok. Brings a sane, but witty, balance to things. Funnily enough, I was thinking about him today when I was walking in a park – saw a well-groomed elderly gentleman with an air of inner self-confidence, wearing a cap and puffing on a pipe, and I thought – “I wonder…”

        • Budweiser

          JB.
          No, he’s gone on holiday to Ireland for I think, four weeks.

        • Maggie

          @JohnBhoy
          As Bud says he’s gone on holiday to Ireland,but he’d been attending hospital for a cardiac complaint,poor soul.He’s a brilliant commenter and could teach a few on here ( not us obvs 🙂 ) about civility and decency,not to mention real humour.I hope he comes back soon.
          I always think of a friend, an elderly Italo Scots gentleman,when “talking” to PB….. you know the type JB? dapper,mannerly,funny,charming and self deprecating.
          Enjoy the travelling and keep at the writing,especially on here.

  2. Fra

    As has been said till we’re blue in the face, or green around the gils, whichever is acceptable, these guys are spivs of the highest order. Delboy Trotters got nought on these shysters. From the beginning all that’s concerned them has been dosh and they don’t care who they hurt to get it.

    Any Glaswegian can spot a conman a mile off. They might not see the con but there’s no mistaking the operator. Until…….it involves their beloved club. Then they can actually see the con, know its happening but are between a rock and a hard place and accept the fact.

    A very good piece of advice was offered on this blog by Barca or Bud. (Apologies for not remembering). Why can’t the bears pay as you go? Why give the conmen a large chest of dosh for temptation.

    I generally dislike much of the mantra orchestrated by dark side but I genuinely dislike spivs and sharks even more. At the end of the day, these supporters are working class and are being fleeced by sharks. Although they have been warned continuously, the affection for their club is blinding them.

    Run these shysters out of town. Jail them if any criminality has occurred and skin them of any dosh they have accumulated and give to a deserving charity. Start afresh, pay your debts to the little people first, ditch the hatred and if it takes ten years then so be it. The supporters haven’t left so income should allow this outcome eventuality.

    Ps. Old age must be mellowing me because I wanted them dead. I just hate working class people being stung by rich bast@rds.

  3. Monti

    Morning Den, From the moment the dead club went into administration, from the SFA to the SPL and through to the SFL,there has been absolute corruption, an inability or unwillingness to implement the games rules, the dead club have cheated every club in Scotland, broken the rules with an arrogant disregard, stolen money from tax payers & in my opinion, broken Scottish football, the game is HEALTHIER, without them, it is SAFER without them, the game in Scotland can only recover when this new club is closed for good & Ibrox demolished! P.S. Is it foggy outside or just my eyes this morning :)? Regan, Doncaster,Longmuir & Ogilvie are Scotland’s public shame!

  4. Adam

    Of the £7m losses, how much of it was attributed to the purchase of the assets and how much was Year one, one off expenditure ?

    • Big Eddie

      Adam
      You are not very clever are you ??????
      none of the 7 million loses include purchase price or 1st year one off payments
      You are deluded the business that is Sevco
      Cannot exist while it continues to burn money then again there is 5 million of you sevco fans who will glady keep the fighting fund
      Going to save that great institution that is SEVCO
      Circus Circus

      • Adam

        “none of the 7 million loses include purchase price or 1st year one off payments”

        I would suggest that you are wrong on that front.

        • Big Eddie

          Adam
          I repeat you are not very clever ???????????

          • Adam

            I might not be. But you are still wrong.

          • Big Eddie

            Adam
            Do you know what a Balance Sheet is ?
            clearly not can i suggest you dont comment on things you clearly have
            No experience on and
            Just continue to read the Comics you buy

          • rab

            @big eddie.

            My thoughts were that the £7m losses in 7 months came from the prospectus before the new year. One off payments like the edmiston house purchase, football debt repayment and such were concluded after the new year and would impact those figures. Not accounting for a new, supposed 500k bill for the investigation into the asset sale, and possible pay offs for CG and IA. Surely the burn rate has accelerated. The squad has no high value players to sell and needs substantial investment, and ibrox is crumbling. Murray park must also have yearly renovation costs, have these been ignored over the last few years as well. Sevco will have huge accumilating legal costs and court cases lasting years ahead of it, and not one spiv will leave without some family silverware. Outside investment will be hindered by such a scenario so the club must rely on fan funding. A poor product on the park, no real sense of progress and all this uncertainty will test the fans loyalty, dwindling crowds will continue the vicious circle of decline. Thats how i see things as they stand, any correction to my thoughts on the one off payments would be welcome. Thanks.

            • @Rab.
              I hope you are the 7th son, of a 7th son.:-).
              Failing that, just an ordinary bloke with a bit of common sense. Either way. Same outcome.

            • rab

              @barcabuster.

              The 7th son of a 7th son could be a werewolf, now many have said i bark at the moon, but i hope to be on the ball with sevcos future. 😀

              Cue carson melting down his mums best cutlery and trying to make a bullet.

            • Budweiser

              rab.

              What ? A plastic bullet ?

            • rab

              Budweiser.

              😀

            • Maggie

              @rab
              No rab,they’ll be fine,Arseon buys 3 season tickets and when Scotland’s independent, and wee nippy sweetie Nicola Sturgeon overturns the benefits reform,they’ll have tons of new benefits available to buy SBs.
              In fact,I suspect she might introduce a new benefits category “Help Sevco Survive Allowance” show your sash and orange “tap” to qualify.:-)

            • rab
              May 12, 2013 at 11:36 am

              @big eddie.

              My thoughts were that the £7m losses in 7 months came from the prospectus before the new year.
              ===============================================

              The picture you paint couldn’t be blacker, but I’m hopeful…

            • rab

              Carntyne.

              Nacho novo might return, that should darken it down a few shades. 😀

        • terry

          all is attributed tae the purchase mr ostrich

      • Bill Fraser

        One major error in this, Eddie. It’s 500 million but, then, mere mortals like ourselves have difficulty getting our heads round big figures like these.

    • Bill Fraser

      So how much would you expect year one expenditure to be? There were no setup charges, as you tell us this is still the same old club, and redundancy payments should set themselves off against salaries, though you didn’t lay many people off as opposed to all other clubs who entered admin.
      Are you trying to tell us that the losses are only £1.5m (£7m less £5.5m buy out cost)? Unlikely, with the salaries you are paying. With Ally wanting to spend £10m (since you can’t actually buy anyone until Jan, is this just for salaries) how do you expect the club to carry on trading without CL money? And, unless there is an enormous upturn in Scottish efforts in Europe, there will only be one CL place for the foreseeable future. So how is your club going to survive?

    • Den

      Adam,

      Why don’t you tell us, you have access to the accounts same as everyone else.

      • Adam

        I dont know the answer, but im not the one assuming that the £7m could be £12m+

        I thought that maybe you, or others, may know the answer given the views being thrown about the place.

        The one thing i do know though is that there are one off costs in there. How much ? Pass.

        • arb urns

          ok adam dont bother with the amount just tell us WHAT the one off costs are that you KNOW are in there.

          • Adam

            There was loans given and repaid for a start.

            • arb urns

              read the dam thing adam…. what are you worried about anyway there was actually a c £9m profit in the first 7 months…. loans ffs.

            • Adam

              Im only asking a question. Do you know the answer ?

            • Loans given to who?
              repaid by whom ?
              and to who ?

              In what amount of POUNDS were these loans that you talk about..
              If you have the figures we can deduct it from the £7m loss declared over 7 months,

              Green prior to his departure was demanding that Murray Parks £10m per year running cost got slashed by a minimum of 50% as it was unsustainable

            • Adam

              “The one thing i do know though is that there are one off costs in there. How much ? Pass.”

              Was i not clear enough the first time i said it ?

            • Monti

              Repaid 🙂 hahahahahahahaha

            • Den

              Loans would not show in the operating profit. They will show in the Cash Flow statement.

            • Den
              May 12, 2013 at 11:58 am

              Loans would not show in the operating profit. They will show in the Cash Flow statement.
              ====================================================

              You’re wasting your time trying to educate the terminally thick, Den

        • Den

          There may be some one off costs in the reported operating loss but most likely insignificant for the following reasons:

          One off costs are generally shown in the Profit and Loss after the operating gain or loss, to try to show operating performance.

          The impact of new acquisitions will be shown as depreciation, not its full cost.

          I stated that the £7m loss would not inevitably mean £12m for the full year; I added the warning that without management action it could be worse, by implication with management action it could be lower.

        • terry

          yeah bill miller knew that too

        • Bill Fraser

          pay-offs to Chaz and his wee Paki friend?

  5. gortnamona

    It is remarkable how much money is is being spent to produce such an inferior product. However this is understandable and acceptable when one understands Rangers primary purpose as a Protestant bastion against Catholic and Republican attacks.

    Right Cam?

    • When McCoist announced on the Ibrokes turf last week, “W A T P”. It was a statement calculated to ingratiate himself with the No Surrender Simians waving the Union flegs. However there was more to it than that. It showed his business savvy !! He knows their looming economic emergency needs a ST cash injection, & that Sevco have to walk a tightrope & CANNOT afford to alienate The Orange Pound.
      It just highlights the degree to which the newco is trapped both by it’s current economic quagmire & by the “Horrible Histories” of the Oldco.
      It doesn’t make McCoists tribal mantra acceptable in any way shape or form..

  6. Fisiani

    When a club goes into administration there are points deducted. When the club has a second episode of administration then even more points are deducted. The Rangers may well go into administration soon. Is this a first or second administration for the CLUB? I can assure you that any penalty imposed by the SFL will be of the lesser value, but surely the fans would demand the greater penalty since they claim to be the same club.

    • If it’s the same club, why was the club allowed to sign players before the season kicked off.the club was still in administration, clubs in administration are not allowed to sign new players. and again, if the same club, why no point deduction at the start of the season for still being in administration ?

      • Adam

        If its NOT the same club, why did they have to pay the football debts of the old club ? If its NOT the same club, why cant they sign any players just now ?

        • Monti

          As Ray Liotta said to Joe Pesci in ‘Goodfellas’…” you really are a funny guy”…..:)=]haaaaaaaaaaaaaaaa

        • jimmy white

          Maybe’s the five way agreement could answer that, maybe’s not, if it could it would kill that argument stone dead, which wouldn’t surprise me, it was a deal, not a agreement. imo.

        • beacause Adam, the “sins of the father” visit the son.

        • That’s the Price they had to pay to bring the new club into the leagues ahead of longer established clubs,
          The price had to be paid, otherwise all those fans of DEADCO would not be stumping up for a NEW club,
          Social unrest was predicted, death threats sent out to all and sundry that talked of a new club,
          even GREEN’s life was threatened until the same club message sank in, buttered up with Greens bigotry (and orange top wearing) rant aimed at the old guard, the old guard that ranks bigotry and sectarianism higher than level playing fields and paying your way in the world,

          RFC 1872 went bust owing £55m, this money means nothing to those that need to believe that any institution of their choice, can run up this amount of debt and simply shrug it’s shoulders and carry on AS IF nothing happened,

          RANGERS Official web site clearly states RANGERS became a business in 1899, it became incorporated, it sold shares, it had no holding company, a club evolved into a limited company to raise money to fund it’s self, at what stage did it stop this and become unincorporated and belong to a separate holding company

        • arb urns

          Bingo ….. now you’ve got it adam………….read your first sentence and think about it………

        • rab

          They didn’t legally have to pay football debts. It was included as a condition of joining the league. Do you think the other clubs would allow the same club simply to walk away from its football debts and vote it into the league. No, if this new club wanted to join it had to make a gesture that would not see existing members suffer from rfc’s theft. The same club would have been legally obliged to pay its debts, sevco could easily refuse this debt without any danger of being sued, but it would not have been voted into the league.

  7. Come on BDO, Put this new club out of business and do the right thing for once in this sorry episode.

    HH

  8. wy can’t we all agree that Sevco are burning £1m a month. You do not need to be head of the class to know how long they can stay open for.

    They are the only club in history to go into administration and then liquidation who actually “tooled up” just in-case they ran into Celtic in a cup competition and were slaughtered.

    Whoever authorised £7k a week wages in diviion 3 needs their head looked at.

    What a disgrace Sevco really are.

  9. Deansy

    I don’t dis-agree with any of the points Den has made, it’s a very good piece – BUT – I do think he’s being just a little naive. He looks at the possibility of rangers, not just surviving, but really, getting back to challenging for the SPL, cups etc – ALL done through better/improved management and business strategies. That all sounds good and would probably look good on a business-plan for the future – but he doesn’t take into account the culture that’s been prevalent since Murray took over. There’s been a belief at Ibrox since, that they are ‘different’, ‘special’ and that the ‘Normal Rules’ don’t apply to them. There IS a ‘Dodgy Element’ there and that’s shown by the ‘character’ of the characters that have taken the helm at Ibrox in recent times. Add in the possibility of the future ‘characterS’ who might be next-in-charge, it looks like straight-forward, open-and-honest ways, will STILL be not welcome there.

    • Den

      i did consider the possibility of Rangers getting back and challenging for championships and trophies.

      My post was in reply to Niall’s post and he stated that once in the SPL they were more or less secure. My point was that they were a long way away from it still and it may be very hard to get back. Should they reach the SPL they would still have to go some to qualify for the CL.

      It is possible for them to get back. Current disarray doesn’t help, Two regimes that had only short term focus didn’t help. The refusal to accept the reality of the situation is the biggest issue and the one which threatens the survival of Rangers.

      Straightforward businessmen would find it hard to get the message across that it was a long hard road and hard decisions had to be made and much baggage would have to be ditched along the way. It is much easier to promise a return to the good old days and reinforce the old thinking.

  10. casper

    15 months i have followed this site and still everyone keeps following the red herrings put out there to keep you off the right track.Time to start tracking the real culprit in all of this who at this time must be sitting laughing at the thought that he has pulled off the biggest scam ever

  11. All this talk of business plans, improving on it, debating and dissecting it.
    There is no business plan!….Chicco et al didn’t wade in to become godfathers of Scottish football. Running Sevco as a going concern never once entered their minds when their eyes turned north!
    It is not what they do. They have a business plan, but it unravelled when they lost the SPL slot for next season. However, their end game is unchanged….Get in, get out quick, richer.
    Anybody who thinks they had a business plan with regards running Sevco as a going concern, needs to think a bit deeper.

  12. Raymilland

    The laws of mathematics prevail.

  13. gortnamona

    Spot on Deansy
    They still don’t get it.
    No contrition or/and apology for what has happened.
    Same old arrogance same old Rangers attitude.

  14. Ed Paisley

    Hi Adam
    The £1m per month is an operating loss. It is supposed to exclude material one-off gains or losses which are defined as exceptional or extraordinary items.
    Operating loss/profit is a key number for investors because it indicates the underlying performance of the trading entity.

    Chico’s original business model was for SPL football in year 2. Now that rug has been pulled it is obvious that the cash has to be very carefully managed. Hence the emergency cost cutting and the new emphasis on home grown players.

    Total losses for year 1 might be 10 million. Cash position might be reduced to £14m or less. It is all dependent on that sponsorship and retail income that was Chicos secret weapon.

    Rangers can manage within that budget quite easily but the wage bill will need to be slashed and expectations of a smooth path to SPL will have to be softened. Revco need to look for organic improvement i.e. home grown players supplemented with more experienced and able players when the budget allows it. They can do it but will the fans accept the team of youngsters struggling at Stair Park on a wet cold afternoon? It will certainly test that loyalty that cam/carson are so proud of.

    • gortnamona

      Ed Paisley May 12, 2013 at 12:47 pm

      Hi Adam The £1m per month is an operating loss. It is supposed to exclude material one-off gains or losses which are defined as exceptional or extraordinary items. Operating loss/profit is a key number for investors because it indicates the underlying performance of the trading entity.

      Did you not know that Adam?

      • Den

        Gortnamona,

        “Did you not know that Adam?”

        Hopefully he does now. He may have already known that but lobbed it up as a distraction.

        The one-offs is an interesting area in itself though. Payments to middle men to source investors, severance to Green and Ahmad and possibly others who are nearing the exit and there are probably others. These will eat up a lot of the cash reserves.

        The longer it goes before they accept their position, downsize and start a re-building programme the worse it looks. Culturally it will be hard (maybe impossible) for the fans and many within the club but it is the best chance.

      • Niall Walker

        gort,

        I agree but if legal costs are anticipated to be an ongoing cost then they may be included in the operating costs, it is likely legal costs will be a permanent fixture for the foreseeable future.

        • Den

          Legal costs may be a permanent(ish) feature. If they relate to lots of separate events it will not make them necessarily Operating costs. They will be included as incurred or as contingent liabilities in the Profit and loss below the Operating Profit calculation.

  15. Neil Lennon said it all.
    ”125 years of UNBROKEN HISTORY”
    UNBROKEN HISTORY! is all that needs to be said to the poor deluded Sevcomians. Celtic have UNBROKEN HISTORY. . .says it all really!

  16. lordmac

    loosing any amount of money is bad news, there is an extra amount added to the camels back, as when the board agreed on a wining bonus
    and there will be a few hidden bonuses to be paid to the mercenary’s that came in, as i am sure that is why they where selected to keep them up, all this to be added. but what i will say IS this, IF the Rangers fans use there head and start to get the money they loaned players back into there club, all will be OK this year, WALTER AND SOUNESS AND BARRY FERGESON, should set the example, ALO Bain, ogilvie all these guys that got help from the Rangers should now be able to give back what they got ON A Loan of. all the fans have to do is ask for the loans to be placed into there bank account. and name and shame any player that dont pay up.

  17. just drag ’em out intit goota lads bye bye sevco

  18. Geddy (Hall of Fame) Lee.

    Adam, I’m frankly surprised at you.

    This new club”the rangers” had to take on the debts of the old club, and face a transfer embargo, as part of the deal to allow this team to play football in the first place. By rights, they should not be allowed to simply be parachuted into the 3rd Division ahead of clubs with a much better claim.

    “THE RANGERS” were NOT relegatedfrom the SPL to the 3rd, no matter what the laptop loyal continue to print, because they have NEVER played there in the first place. They applied for membership and were quite rightly shown the door. Please explain that.

    The appalling attempts by Doncaster and his ilk to threaten the 1st division into allowing “the rangers” to shoe-horn themselves into that division, rightly fell flat on their faces . Thankfully, the majority of “the rangers” fans were blinded by hate and rage, lashing out at all insundry, including the wretches at the SFA/SPL, so no Ibrox welcome for those imbeciles.

    NO, “the rangers” are no more than the bricks and asbestos of the old rangers. Green, McCoist, Smith, and Traynor amongst others, made it catagorically clear, that if a CAV was not reached, the club, and it’s history would be gone.

    If only the Laptop Loyal would take them to task on these claims we might get everyone, even down Govan way, to accept the reality of the situation.

    Sadly, this is Scotland, so I don’t need to elaborate any more on why that will NEVER happen.

  19. Niall Walker

    Afternoon Den,

    I have dug out as much financial info as I can from various sources and here is what I can make out:

    Initial projection of 3.5 million operating loss based on roughly 28 million income more or less split equally between ticket sales/hospitality and other revenue streams, and 31.5 million expenditure of which 7 million was playing staff wages( now reduced to 5 million).
    Other revenue streams( merchandising, sponsorship etc) anticipated in prospectus were less than expected, and most will not kick in until season 2013-14.
    First 7 months accounts included June and July with zero income( no pre season tour or friendlies).
    16.5 million operating costs did include 1 million in legal fees.

    i estimate Rangers operating losses for this year to be around 10 million, the extra 6.5 million being a 50% shortfall in other revenue streams.
    2013-14 operating losses reduced to 3 million due to wage reductions, other revenue streams including friendlies and a 20% ticket increase.
    2014-15 operating losses reduced to 2 million due to 15% ticket increase.

    Total losses approx 15 million before returning to SPL, these losses will increase by about 1 million per year for every 10 % drop in attendances.

    Rangers turnover will be about 30 million with roughly the same costs, their playing staff wages having been reduced from 27 million in the oldco to 5 million in the newco. Worst scenario maybe 20 million in losses which will be covered by share money, they shouldn’t run out of cash before the SPL.unless more than 20% of fans desert completely.

    SPL guarantees about 10 million of other revenue streams with no additional costs except playing staffs wages, if Rangers double their playing staff budget to 10 million they should still make a profit of 5 million or so.

    Now this is the theory and the only real variable is attendances, Bill Miller estimated 30 million losses, so if the newco can keep this down to 15 million then its not too bad.

    Now I don’t have a crustal ball and I am not a mind reader but the loyalty of the fans encourages me to believe the business plan may work, but without large attendances over the next two years then it may require further funding.

    • Den

      Niall,

      I will need a bit of time over the figures. First impression is that they are optimistic but will come back to them.

      Attendance is not the only variable. Although you would be surprised if Rangers can’t win Div 2 and 1 with the second biggest wage bill, this season’s results suggests that they may make hard work of it. Sponsorship is another variable. Green made a lot of boasts but but didn’t secure a lot.

      The boardroom disarray (most likely affecting the whole Organisation) at present is another and possibly decisive factors. These things can take years to resolve and looks to be going the expensive legal route.

      Fan loyalty certainly gives Rangers a better chance than most but much of it seems to be fuelled by defiance rather than a positive enjoyment of what was happening. Two more years of defiance before getting to the SPL is going to take its toll. A failure to gain promotion in one of the next two years will sorely test them. Getting to the SPL and not being anywhere near Celtic will hurt.

      I am not sure that £15m losses is anything like a good prospect (although obviously better than £30m). In addition Cash Flows and Profit and loss are not the same thing. They will have to pay out some serious transfer fees to get players who can compete with Celtic. This will be up front payments which wil be allocated to the P&L over a few years. Basically I am saying that Cash could be a problem in the next couple of years.

      Another share issue may be required. If things are in the doldroms at that point it may fail.

      Then we have BDO, they have been quiet but may pipe up. Craig Whyte has his tapes. Charles and Imran may have left a few more surpriises.

      Now the actual outcome will most likely be somewhere between our views. I see the glass half empty and somebody has watered down the beer.

      • Niall Walker

        Den,

        Please don’t tell Rangers fans but their club will not even attempt to compete with Celtic in the first few years, they will make good money securing an honorable second. The unforeseen losses this year and the next two years have more or less used up the war chest, they will probably need two years to make 10 million.

        • Den

          Niall,

          I won’t tell if you don’t.

          For me the poor performance of the team on the park this year suggests that it may take 3+ years to get back to the SPL and a while longer to get to second place.

          I have gone on about the ownership chaos so will not repeat, but this could de-rail even a good team.

  20. Niall Walker

    p.s.

    I forgot the other variable, and that is Rangers being promoted in two years, however to put the 5 million player budget into perspective, Hearts new budget is 3 million, if Rangers cannot win div 2 and div 1 with the 2nd highest wage bill in Scottish football then I would be surprised.

  21. COYBIG

    @Adam

    “Of the £7m losses, how much of it was attributed to the purchase of the assets and how much was Year one, one off expenditure ?”

    The Rangers are losing £1m per month based on their running costs of £2.35m against their revenues of £1.35m per month. In other words, it’s nothing to do with any one-off expenditure.

    • Niall Walker

      Coybig,

      Since we know the income did not involve 2 months then to calculate the monthly earnings one must divide by 5 not 7, this gives a monthly income of 1.89 million, and an operating loss of 460,000 per month for the last 5 months trading, this equates to 2.3 million, add it to the 7 million in losses and you have an operating loss of 10.3 million. This assumes there is no more income added to the balance sheet in relation to merchandising and sponsorship.

      Worst scenario is 10 million in losses which is not 1 million per month, with new revenue streams, wage cuts and price increases should reduce to 3 million.

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