ian1964 10,578 Posted January 14, 2013 Share Posted January 14, 2013 â??The best way to make a small fortune from a football club is to start with a large fortuneâ?, a famous saying goes, but Marlboroughâ??s Giles Hargreave believes he has found an investment opportunity that could prove this wrong. The high likelihood of Rangers Football Club moving back up to the top level of Scottish football makes it an undervalued stock that is well worth investing in, according to FE Alpha Manager Giles Hargreave (pictured). ALT_TAG Rangers collapsed into administration earlier this year and were kicked out of the Scottish Premier League, leaving them in the Scottish Third Division. The newly reformed club launched a share issue on AIM in December, and small cap stalwart Hargreave â?? along with FE Alpha Manager Paul Marriage â?? was a significant investor. "Itâ??s the 12th-best supported club in Europe, and in the UK, Manchester United are a bigger brand, but there arenâ??t many other brands that are bigger in the UK," he said. "The club has said it will only stick one-third of its turnover into player wages and with the merchandising potential, if the club does that, it will be significantly profitable and remain so." The company was launched onto the AIM index on 19 December 2012, and data from FE Analytics shows that the share price has risen 17.76 per cent already. Hargreave says that one major advantage the stock has is that the company is free from debt, having recently emerged from administration. It also owns its own stadium and training ground, and is still pulling in fans despite playing in a lower league, meaning that cash-flow remains healthy. "The cash-flow, profitability and balance sheets â?? it ticks all the boxes," he said. Investing in football clubs is often considered to be risky, as financial success is, at least to some extent, dependent on success on the field. Not only are financial prizes awarded for wining competitions and achieving higher league positions, but the marketing potential of a club is hugely affected by its success on the field. However, Hargreave thinks that the high likelihood of Rangers swiftly moving up the league system minimises the risk in this area, and means the stock is still undervalued. The club is sitting 17 points ahead of its nearest challenger in the Scottish Third Division, making promotion this year look extremely likely. The last home league game drew a crowd of 46,406, meaning that support is still strong despite the lowly league position, and suggesting that revenues â?? from ticket prices at least â?? will stand up. http://www.trustnet.com/News/394239/hargreave-why-im-investing-in-rangers-football-club/ 0 Quote Link to post Share on other sites More sharing options...
kuznetsov 0 Posted January 14, 2013 Share Posted January 14, 2013 "The club has said it will only stick one-third of its turnover into player wages and with the merchandising potential, if the club does that, it will be significantly profitable and remain so." we do that, we will never again win another major scottish title or trophy. 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted January 14, 2013 Share Posted January 14, 2013 "The club has said it will only stick one-third of its turnover into player wages and with the merchandising potential, if the club does that, it will be significantly profitable and remain so." we do that, we will never again win another major scottish title or trophy. Can I have tomorra's lottery numbers kuz? 0 Quote Link to post Share on other sites More sharing options...
kuznetsov 0 Posted January 14, 2013 Share Posted January 14, 2013 (edited) Can I have tomorra's lottery numbers kuz? lets be realistic here mate, a club with a 10 million wage bill is not going to win over a club with a 35 million wage bill over the course of a season, that is just common sense and why the old firm have won 99% of the league titles in the last 50 years and that is why wigan and norwich will never win the premiership. Edited January 14, 2013 by kuznetsov 0 Quote Link to post Share on other sites More sharing options...
GovanAllan 0 Posted January 14, 2013 Share Posted January 14, 2013 More like it, not letting a football manager think he can spunk money left right and centre and make him concentrate on bringing on his own talent, well I never. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 14, 2013 Share Posted January 14, 2013 "The club has said it will only stick one-third of its turnover into player wages and with the merchandising potential, if the club does that, it will be significantly profitable and remain so." we do that, we will never again win another major scottish title or trophy. If we spent only a third of our revenue we would still be spending more than every other team in Scotland aside from Celtic.... last I checked they didnt win the treble last year. They won the league whilst the other trophies went to Hearts and Killie.... how much you betting that both those clubs pay wages which would be less than what a third of our revenue is ? I understand the sentiment you are suggesting but to suggest we would never win another major scottish trophy is a bit OTT. 0 Quote Link to post Share on other sites More sharing options...
kuznetsov 0 Posted January 14, 2013 Share Posted January 14, 2013 If we spent only a third of our revenue we would still be spending more than every other team in Scotland aside from Celtic.... last I checked they didnt win the treble last year. They won the league whilst the other trophies went to Hearts and Killie.... how much you betting that both those clubs pay wages which would be less than what a third of our revenue is ? I understand the sentiment you are suggesting but to suggest we would never win another major scottish trophy is a bit OTT. i was more meaning the league, i doubt the possibility of a domestic cup every few years would satisfy our fans hunger for success. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 14, 2013 Share Posted January 14, 2013 lets be realistic here mate, a club with a 10 million wage bill is not going to win over a club with a 35 million wage bill over the course of a season, that is just common sense and why the old firm have won 99% of the league titles in the last 50 years and that is why wigan and norwich will never win the premiership. Yep, Mr Pedantic here.... the figure is actually 90% 45 out of the last 50 titles won by the OF 0 Quote Link to post Share on other sites More sharing options...
kuznetsov 0 Posted January 14, 2013 Share Posted January 14, 2013 Yep, Mr Pedantic here.... the figure is actually 90% 45 out of the last 50 titles won by the OF 90%, 99%, it doesnt matter. the moral of the story doesnt change. the gulf between celtic and the rest is only getting bigger. "We have a situation in this country where the championship has been won by the Old Firm something like 47 times in 50 years." a quote from campbell ogilvie. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 14, 2013 Share Posted January 14, 2013 90%, 99%, it doesnt matter. the moral of the story doesnt change. the gulf between celtic and the rest is only getting bigger. "We have a situation in this country where the championship has been won by the Old Firm something like 47 times in 50 years." a quote from campbell ogilvie. He is wrong.... I counted them 0 Quote Link to post Share on other sites More sharing options...
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