Charles Green consortium â??put £50m sale priceâ?? on club

[foggy dewhurst 0]

what a load of balderdash

[Guest Corkie]

The article is a total misrepresentation of what was said at the meeting.

 

Still think Charles Green and his pals will be looking for a figure multiples of his investment. Brown can rant and rave but Green knows they have a cash cow in RFC. The money WILL roll in from the fans once the season is underway and given the departures the running costs have quartered. Don't see them getting anywhere near 50M quid but it'll be over 20M imho.

[Bluedell 5,478]

Still think Charles Green and his pals will be looking for a figure multiples of his investment. Brown can rant and rave but Green knows they have a cash cow in RFC. The money WILL roll in from the fans once the season is underway and given the departures the running costs have quartered. Don't see them getting anywhere near 50M quid but it'll be over 20M imho.

 

I doubt the running costs have quartered. The payroll may well have done but what other costs will have significantly reduced? It may well still be a struggle to break even.

[Guest Corkie]

I doubt the running costs have quartered. The payroll may well have done but what other costs will have significantly reduced? It may well still be a struggle to break even.

 

Thought he'd said that running costs had been brought from over 3M per month down to about 1M Dell. OK quartered was gilding it a bit but it's down to very manageable levels and Green only has to sit it out til the football starts again - fans will flock to Ibrox in their thousands to support the Gers every second week, irrespective of what league it's in. OK not as much if its Div3 but running costs for there should be even lower - presumably the league the club is playing in will be factored into the new contracts. Either way I can't see Brown's hope of starving Green out actually working. Brown and co will have to come up with enough money not to take his chances in what he'd likely raise selling shares in the club.

[Zappa 0]

I doubt the running costs have quartered. The payroll may well have done but what other costs will have significantly reduced? It may well still be a struggle to break even.

 

With the players who were out of contract and the players who've refused to move to the new company combined, I think the squad wage bill has been reduced by about £10m. If we end up being put into division 3 there could potentially be another £5m+ cut off the wage bill due to another bunch of our remaining players refusing to stay.

[Bluedell 5,478]

With the players who were out of contract and the players who've refused to move to the new company combined, I think the squad wage bill has been reduced by about £10m. If we end up being put into division 3 there could potentially be another £5m+ cut off the wage bill due to another bunch of our remaining players refusing to stay.

 

Our base costs were around £42m pa. £28m payroll and £14m other. Knock 80% off the payroll and you're down to around £6m. You've still got your £14m other costs, so costs are £20m instead of £42m.

 

Let's say sponsorship, broadcasting and commercial income falls from £14m down to £4m and ticket sales and hospitality falls from £24m to £16m then you are at a breakeven situation.

 

Very "back of the envelope" but hopefully it gives an idea of what we may be looking at.

[Bluedell 5,478]

Thought he'd said that running costs had been brought from over 3M per month down to about 1M Dell.

 

Seems a bit optimistic, but then we don't have a team at the moment , and we aren't playing any games. Costs will probably go up from the £1m a month, but then he would know better than me.

[Zappa 0]

Our base costs were around £42m pa. £28m payroll and £14m other. Knock 80% off the payroll and you're down to around £6m. You've still got your £14m other costs, so costs are £20m instead of £42m.

 

Let's say sponsorship, broadcasting and commercial income falls from £14m down to £4m and ticket sales and hospitality falls from £24m to £16m then you are at a breakeven situation.

 

Very "back of the envelope" but hopefully it gives an idea of what we may be looking at.

 

Do you think the club will be able to generate £16m from ticket sales and hospitality in the coming season if we're put into the third division?

 

I'm sure Green & co would be satisfied with breaking even to begin with, but to do so will they be able to fund a team on the park that can win the third division if that's where we find ourselves?

[Bluedell 5,478]

Do you think the club will be able to generate £16m from ticket sales and hospitality in the coming season if we're put into the third division?

 

I'm sure Green & co would be satisfied with breaking even to begin with, but to do so will they be able to fund a team on the park that can win the third division if that's where we find ourselves?

 

I've got no idea. It could be that income is lower, but then again there could be opportunities for cost cutting as well...lower police costs for example.

[Guest Corkie]

I don't think there's any doubt that should we be in it, we'd win the 3rd division - even with not much more than the current squad. Teams from Div3 would be in awe at ibrox and the atmosphere, and even away the support would carry the club through. Aly would cut his managerial teeth and work his way up. There are some silver threads in the black cloud.