Rangers : counting the cost

[Steve1872 4]

By Richard Bath

Published on Sunday 15 July 2012 00:00

 

 

 

The shockwaves from Rangersâ?? fall from grace will resonate through every aspect of Scottish football â?? and beyond

 

 

 

Financial implications

 

The ramifications of sending Rangers to the Third Division were spelled out to the SFL delegates shortly before they made their fateful decision, and those ramifications are severe with a potential loss of between £16-17 million in sponsorship and television income. Under the scenario outlined by the SPL, the prize money each SPL club will receive at the end of next season will be less than 10 per cent of that which they received at the end of last season.

 

So Celtic got £2,957,000 for being champions last season and would have got £2,141,000 had Rangers gone into the First Division â?? but next year they would receive just £287,000 were they to win the SPL. For smaller clubs at the bottom end of the SPL who are already struggling, the implications are potentially disastrous: the second-bottom team would have received £870,000 last season; with Rangers in the Third Division that figure goes down to just £84,000.

 

Several of the smaller SPL clubs are run on such a shoestring that Rangersâ?? demotion could well put them out of business. Dunfermline, for instance, were unable to pay their players in February when Rangers failed to pay them £80,000 owed from a cup fixture. Motherwell have already stated that they face going out of business following Rangersâ?? demotion. Nor are they alone: heavily-indebted Kilmarnock, Dundee United and Hearts can all scarcely afford any reduction in income, while even Celtic have started cutting their playing budget.

 

The nub of the issue is the SPL television rights deal with Sky and ESPN, which is worth £80m over five years from 2013. The deal includes a clause which insists that both Rangers and Celtic must play in the SPL. The deal is now expected to be renegotiated downwards, or even be scrapped altogether, although there have been calls for First Minister Alex Salmond to use his much-vaunted influence with Rupert Murdoch to apply pressure to ensure that the deal remains in place (see page 1, News). The Clydesdale Bankâ??s £10.5m sponsorship of the SPL ends next summer, and the likelihood of a procession for Celtic (who are 1-33 to win the SPL with bookmakers) will make it even more difficult to find a successor.

 

Nor is is just all about sponsorship and TV rights. The loss of Rangers to the SPL will cost the average SPL club just over 2 per cent of its turnover through the loss of ticket sales for home games to Rangers. While clubs such as Hearts and Aberdeen will be relatively well insulated, the clubs with smaller crowds will be hit hard. Had St Johnstone not played Rangers in 2010-11, its turnover would have been down by 5.18 per cent; for Dunfermline that figure was 4.02 per cent and for Inverness Caley Thistle the figure was 3.39 per cent.

 

It is not just the SPL clubs which face financial hardship. The SFL clubs currently benefit from a trickle-down sum of £2m a year, which was agreed when the SPL was formed. This, however, comes almost exclusively from the television rights deal and the SPL sponsorship deal, both of which are now in question. The SFL clubs will not countenance a reduction in that sum, yet SPL sources insist it will be stopped if the TV and sponsorship deals come to an abrupt halt. We could yet see an ugly legal spat over this one, with the financial survival of a whole raft of SFL clubs at stake.

 

 

Social implications

 

The days when the shameful sectarianism which has become the rocket fuel for the Old Firm rivalry has been any secret are long gone. But will the disappearance of the Old Firm game from the calendar for at least the next three years do anything to remove the anti-social excesses which have accompanied the fixture? These are such that Les Gray, the then chairman of the Police Federation, last year called for the fixture to be banned on public order grounds after there were so many arrests after one derby that every police cell in Glasgow was full within four hours of the final whistle.

 

â??Itâ??s safe to say the police service dreads Old Firm games,â? said Gray. â??The policing of the game does not concern us, because we have got into a routine now, and it is very orderly and there are only a small amount of arrests at the game. But it is the murder and mayhem that follow after, in the pubs and the clubs and the homes throughout Scotland. That is the concern for us because it is now at the stage where we are finding it difficult to cope with the resources and also financially, bearing in mind that the police budget and all the public sector budgets are being cut back.â?

 

Violent attacks increase ninefold on Old Firm weekends, and there has historically been a 41 per cent increase in domestic violence on Old Firm weekends. As well as murders such as that of 16-year-old Celtic supporter Mark Scott in 1995 which precipitated the launch of the charity Nil By Mouth, the sheer level of violence that accompanies the Old Firm match is such that Strathclyde Police incurred costs of £2.4m for the seven derbies played during the 2010-11 season, of which only £300,000 was paid for by the clubs, with the rest being spent on disturbances away from the two grounds. Nor are the police the only service stretched to breaking point by the Old Firm games: hospitals also suffer, with one widely-accepted estimate putting the cost to society of the games at £40m per season in terms of policing, prosecutions, hospital care and social services intervention.

 

 

Footballing implications

 

In the short-term, the most obvious effect of this weekâ??s events is two divisions with the shortest odds in world football, with Celtic at 1-33 to win the SPL and Rangers 1-50 to win the Third Division, the shortest odds Ladbrokes has ever offered (itâ??s still drawn some business, with one punter putting £50,000 on both sides winning their respective leagues). Yet the effects will be felt in many other, more subtle, ways. With less money, each side in the SPL will need to reduce its wage bill, with young Scottish players likely to be the beneficiaries.

 

The European dimension means that race to be the best of the rest will also assume greater importance, with the obvious corollary that the league will be more even and games will assume a greater significance. Whether this will energise supporters â?? or convince Rangers fans from Aberdeen or Edinburgh, for instance, to follow their local teams â?? remains to be seen. The cups will also be less dominated by the Old Firm, with Rangersâ?? weekly playing standard meaning that they are likely to be uniquely vulnerable.

 

The removal of the Old Firm veto means that a pyramid reorganisation of the leagues can now be countenanced. Quite where the Rangersâ?? fiasco has left SPL2 remains difficult to tell. Although it is now clearly back on the agenda, such is the suspicion that it is merely a ruse to fast-track the newco back into the top flight that there must be grave misgivings about the willingness of fans and their clubs to look seriously at the whole subject in the near future.

[Steve1872 4]

Impact upon supporters

 

My colleague Andrew Smith referred to the way in which fans found their voice on this issue, and were mobilised via social media, as the “Supporter Spring”. It was a point well made: for all the talk of the absolute primacy of sporting integrity, the financial ramifications of a Rangers-free top league meant that many clubs wanted to let them back into the SPL; it was the fans who were having none of it, and it was their pressure and the threat of boycotts which backed their clubs into a corner. The same was true for the SFL clubs as fans began to communicate with each other – and their clubs – across social media and the internet.

 

Fans effectively seized power from clubs which were wavering and dictated events, with their absolute conviction that Rangers should be punished for misdeeds and that sporting integrity should prevail proving the driving forces. When ten of the SPL clubs voted against Rangers, many of them thought that Rangers would end up in the First Division, but the SFL fans had other ideas, with their clubs voting 25-5 to instead place the newco into the Third Division.

 

Such is the force of fan power that supporters have become emboldened and yet more change may come onto the agenda. The loss of the Old Firm veto over SPL regulations means that the top flight can now be overhauled in favour of the majority of clubs, while the clumsy attempts to woo SFL clubs with the promise of SPL2 looks to have backfired and, as Martin Hannan writes on pages 8-9, may even threaten the position of SFA chief Stewart Regan and the SPL’s Neil Doncaster.

 

 

Practicalities

 

So, how will the clubs in the Third Division cope? For most of them, the arrival of the Rangers hordes may not bring as big a financial fillip as they may be expecting because the costs of policing the Rangers games will be astronomical, especially where the local force has little experience of dealing with the Old Firm (such as Dumfries & Galloway police service) and especially at those grounds which will only be able to accommodate a fraction of Rangers’ travelling support. However, the long-term benefits of Rangers’ presence in the division will undoubtedly be felt in the increased interest in the clubs, which (leaving aside Queen’s Park, who play at Hampden) have crowds which currently average less than ten per cent of their capacity. The aggregate average attendance across the seven other Third Division clubs is around 3,250 (compared to a capacity of 27,832 plus Hampden’s 52,025). Of all the Third Division clubs, Queen’s Park and Clyde (who have a capacity of 8,029) will benefit most, with Queen’s Park confidently predicting a crowd of 20,000 at Hampden for the festive season visit of Rangers.

 

There is also the question of if – and how – the matches will be covered. As well as the lack of facilities for the large corps of 50 or so newspaper and internet journalists who follow Rangers to away matches, how or whether Rangers matches will be televised remains unclear.

 

 

Where does this leave Rangers/Green?

 

Undoubtedly in a better state in the short term, although the loss of key playing assets has also made the club balance sheet less attractive. Nevertheless, although a handful of top players have remained loyal to the club, Rangers will no longer pay 80 per cent of their turnover in salaries to top players and the costs of competing in the Third Division will also be far smaller than they would have been had they entered the First Division and been forced to recruit a whole squad of relatively expensive players. As it is, the cost of fielding a squad to blitz the Third Division will be a fraction of that they would have needed to spend to compete in the First Division.

 

However, Rangers’ income will be decimated. There will be no SPL prize money (which last year was £2,6m), no Sky money, no SPL sponsor-ship money, a reduced corporate hospitality market and no European competition. The club has also lost several smaller sponsorship deals, with one taxi company reportedly pulling out of a £70,000-a-year deal with the club.

 

But it is the impact upon gate and season-ticket receipts that will be the most profound. The average Rangers season ticket last season cost £450, yet the cost of most of the Third Division season tickets is £150, and the pitiful take-up of season tickets at Ibrox (said to be still in three figures) shows that fans have been biding their time. Crowd sizes at Ibrox, which averaged 45,000 last season, will inevitably suffer, too, partly because there will be few away fans. It seems certain that Ibrox will see less fans paying less money for their tickets.

 

However, it’s also worth bearing in mind that when Hibs went down to the First Division, there was no reduction in ticket prices and the crowds went up. The same scenario seems unlikely to unfold with Rangers, however, for whose fans winning holds no novelty value.

 

Although some costs will be reduced – notably policing and stewards for the Old Firm games – Rangers’ whole infrastructure will need to be radically downsized.

 

Nevertheless, Rangers were encumbered by an unsustainable debt burden and have for many years been running at a loss so, in an ironic twist, in the short term the lack of a huge wage bill may ensure not only that the club survives, but actually prospers. For how long it does so under Charles Green and his opaque coterie of anonymous directors is another story...

http://www.scotsman.com/sport/football/spl/rangers-newco-counting-the-cost-of-their-demise-1-2412834

[TheWeeBlueDevil 0]

The European dimension means that race to be the best of the rest will also assume greater importance, with the obvious corollary that the league will be more even and games will assume a greater significance. Whether this will energise supporters â?? or convince Rangers fans from Aberdeen or Edinburgh, for instance, to follow their local teams â?? remains to be seen

 

 

I got that far then couldn't read anymore for laughing.

[Guest Xander1873]

Usual rubbish from the Scotsman newspaper, they should just have a section titled "we don't like Rangers, now this is our views on everything". I think as supporters its important that we get our finger out and start buying season tickets. I know why people are hesitating in terms of their lack of trust where the clubs new owners are concerned but for me it comes down to one simple question.

 

Do I want to go to see Rangers next season ?

 

My answer to that is yes, I was planning on buying a season ticket next season at the usual price anyway, so if it is for the good of the club and ticket prices are to remain the same, or at least close to it. Then I will still be buying my season ticket, I don't care who is in the directors box and who owns shares. In my opinion its my club and I want to go and see them play at any level. I never went to see the opposition anyway, they were an insignificance to me, in the simplest terms they were there because the game states we need to play against 11 players.

[Gribz 966]

I think the SPL clubs were making their decision based on losing Rangers finances for a season, now they have to look at from a minimum of 3 years and at 2 games per season they are going to be hit massively from the fixture alone - before TV and sponsors.

 

Outside Celtic, Aberdeen are supposed to be worst hit from missing the fixture. Their approx 250k per match now ends up being minimum multiplied by 6.

 

It will be interesting to see Celtic attendances, if they drop (which I expect) then they are going to be losing a massive amount! 7500 (fans) x 42 (quid per ticket) x 2 (games) x 3 (years) = 1.89M just on ticket sales.

 

How many OF fans in the past have bought ST based on getting 2 derbies in a season. I know one year I bought mine in the Club Deck knowing Im guaranteed OF and CL games, as previously I used to pick and choose matches to go to when possible and could always get a ticket for St Johnstone or Hibs games.

[andy steel 0]

What a crock of shite!

 

'less away fans at Ibrox' is about the funniest line in that....was it meant to be a comedy turn, or something?

[foggy dewhurst 0]

mr gray should be told that the murder of the young boy mark scott had nothing to do with football it was carried out by a thug who thought he could do what he liked maybe if the police had done their job and lifted the gang of thugs in the first place the young man would still be living a happy and good life this was not the first attack on fans returning from parkhead by this gang of thugs the police were well aware of them .

[BrahimHemdani 1]

Some aspects of this article are quite interesting e.g. impact on Third Division Clubs; and the Financial implications but they they are wrong by a season because apparently the TV deal would be intact for next year.

 

Also the writer must have been time warped in March 2011 as his paragraphs on Social implications appear to ignore the work of the JAG/JRG which the police will tell you have had a major impact on social behaviour.

 

Joint Action Group Report

11 July 2011

 

Recommendations from the Joint Action Group set up following the Football Summit on March 8, 2011

 

B. Measures to tackle violence, bigotry and alcohol misuse associated with football through a consistent approach to policing at and around football across Scotland â?? supported by all those involved in the game.

 

Tackling violence, bigotry and alcohol misuse associated with football is not a matter for the police (or any single agency) to deal with alone. Everyone involved in football, from the football authorities to individual supporters, wishes to ensure that the good reputation of Scottish football and of Scottish football supporters is maintained and improved and that our national game receives attention for all the right reasons.

 

It is recognised that the police play a crucial role in maintaining order and safety at football matches and that they are supported in this by Football Safety Officers, Stewards and supporters themselves. The low levels of recorded incidents of individual offending at football stadiums, relative to the number of people attending, demonstrates the importance and effectiveness of current policing and event management and the good conduct of the vast majority of those who attend matches. But some individuals continue to fall short of acceptable standards of behaviour. This extends beyond the match itself; evidence indicates increased incidents of antisocial behaviour/disorder, violence, domestic abuse and (to a lesser extent) bigotry in the wider community on certain match days. More research is needed to explore the links between football and violence and disorder in order that the most appropriate interventions can be developed and targeted correctly. Furthermore, the freedom and anonymity provided by the internet have been abused by some who use it as a vehicle for spreading messages of hate and inciting serious harm. This appears to be a growing issue which requires specific consideration.

 

The importance of a consistent approach to policing at and around football, and for that approach to be supported by all those involved in football, has been emphasised throughout the work of the JAG.

The JAG therefore recommend that:

 

1. A National Football Policing Unit is established, enabling the Scottish Police Service to deliver a consistent approach when policing football in Scotland, co-ordinating football intelligence, enforcing football-related legislation and supporting post-match investigations. This Unit should incorporate the existing ACPOS Football Banning Order Authority to expand the co-ordination, management and application of Football Banning Orders. This Unit should also support the expansion of Anti-Sectarian and Unacceptable Behaviour Initiatives across Scotland at all identified high risk matches and should be in place for the start of the 2011/12 season.

 

2. Any future extension of the initiative known as the â??Football Depute Schemeâ?? as developed through the â??Glasgow Pilotâ?? (i.e. the co-ordination of FBO applications by a Procurator Fiscal in the area) is supported and participated in fully through training and awareness events delivered by the FBO Manager, Crown Office and Procurator Fiscal Service (COPFS) and Judicial Studies Committee of Scotland.

 

3. As part of a comprehensive review of football-related legislation, the Scottish Government should consider amendments to legislation relating to Football Banning Orders which will support their expansion and enforcement.

 

4. ACPOS supports a consistent approach to policing football through the development of:

â?¢a strategy to tackle hate crime, incorporating the proposed legislation, prior to the end of the 2011/12 season;

â?¢training around the Offensive Behaviour at Football and Threatening Communications (Scotland) Bill (once passed);

â?¢good practice guidance in relation to Football Banning Orders, prior to the commencement of season 2011/12 with appropriate training/communications inputs to all staff delivered during the course of season 2011/12.

â?¢A toolkit which consolidates all legislation and guidance on football related offences, in liaison with the Football Safety Officers Association Scotland during the course of the season 2011/12, delivered prior to that season end.

 

5. Measures are put in place to support police investigations targeting internet e-hate crime. This should include: legislative amendments to require registration of internet enabled equipment and agreement on the evidence which will be accepted to support convictions for these offences.

 

6. A single standard information sharing protocol is adopted between all SFA member clubs and the local police commanders to include effective two-way communication in time for the commencement of the 2011/12 season.

 

7. That spectator safety content is incorporated into the coaching badge programme at the earliest opportunity.

 

8. That all SFA member clubs agree and adopt a single code of conduct for players, coaches and other officials in Scottish football prior to the end of season 2011/12.

 

9. The Police and Scottish Government and Supporters Direct Scotland (SDS) jointly build upon the research conducted by SDS to develop a national strategy to ensure that all supporters are aware of their responsibilities prior to the end of season 2011/12.

 

10. All SFA member clubs agree and adopt a single code of conduct for supporters to be implemented prior to the end of the 2011/12 season and including a commitment to impose and enforce appropriate sanctions upon supporters involved in football-related offending.

 

11. Minimum Standard provisions should be incorporated within the ticket sale conditions of all SPL-member clubs as well as in the ground conditions to enable consistent enforcement.

 

12. The role of SPL match delegate is reviewed with the aim of placing emphasis on the off-the-pitch events such as crowd behaviour, liaison with the police match commander, player behaviour pre and post match, stewarding and policing tactics.

 

13. A more formal liaison between the SFA and SPL over the system of Match Delegates is developed.

 

14. Increased understanding of the roles and responsibilities of police and stewards within football grounds is developed through better briefing of other stakeholders in the game.

 

15. The Match Commander protocol for briefing players, coaching staff and others be approved and implemented immediately, along with an associated warning poster.

 

16. The Scottish Government commissions academic research into the relationship between football and domestic abuse in Scotland. This research would inform future strategies by the police and partner agencies, ensuring that appropriate interventions are developed and targeted effectively.

 

17. JAG partners continue to co-operate with ACPOS Domestic Abuse Working Group to build upon and promote the initiatives in relation to domestic abuse, including all Scottish Police Forces considering adopting appropriate analytical tools to identify and address football-related offending.

 

Joint Action Group

Progress Report

July 2011 â?? December 2011

 

Improving an understanding of the relationship between football and domestic abuse

 

22. The JAG is also committed to supporting a greater understanding of the relationship between domestic abuse and football. Both the statistics provided by Strathclyde police and further analysis demonstrate an increase in reported incidents of domestic abuse following Old Firm matches. The JAG is agreed that more research is required to better understand this complex relationship, in order to inform the relevant risk assessments and interventions. The Scottish Government will

 

SPL Anti-Domestic Abuse Campaign

 

32. For season 2011/12, the SPL is developing a community- focused campaign to raise awareness of domestic abuse and the need for a zero tolerance approach. This will include the provision of advertising space to the national â??Scotland Says No to Domestic Abuseâ?? campaign. SPL are also developing an initiative which will offer a â??match day experienceâ?? to children affected by domestic abuse. It is hoped that such an initiative will help build or strengthen links between SPL clubs and their local domestic abuse charity.

 

Immediate Next Steps

 

In addition to promoting and maintaining the above actions, the following will be taken forward in the months leading up to season 2012/13:

Supporters Charter and Communications campaign â?? being developed in partnership with supporters, recognising the powerful and positive influence the vast majority of supporters have.