Rangers aim for £100m turnover

[ian1964 10,770]

RANGERS plan to increase the club's turnover to £100 million a year once it returns to top-level competition.

 

The announcement comes little more than a year after the club was plunged into administration, allowing Charles Green's Sevco consortium to buy the business and assets after it was liquidated.

 

Finance director Brian Stockbridge made the prediction for the third division side as he believes an enhanced retail operation combined with greater sponsorship income â?? including a naming deal for Ibrox Stadium â?? will supplement match-day and football revenue.

 

The club pulled in £9.5m of revenue in the seven months between May and December last year and reported a £7m loss.

 

But Mr Stockbridge pointed out that Rangers historically had a turnover of about £60m in years when competing in the Champions League â?? not including merchandising, which had been hived off to JJB Sports.

 

Rangers is now involved in a joint venture with Mike Ashley's Sports Direct, and recently signed a kit deal with Puma.

 

Mr Stockbridge revealed the Ibrox megastore is soon to be made four times bigger, on a site on the ground floor of the Edmiston House office block at the stadium.

 

He said: "When [Rangers] did its own retail it made £20.5m turnover and £5.6m profit just from merchandising.

 

"But because the club needed money, it gave it to JJB and took an upfront payment, then took the £3m annual licensing fee.

 

"So, let's say if we can only do as good as £20m [even] with Mike Ashley as our partner, with Puma and with internet sales, then suddenly we are looking at £80m to £90m turnover.

 

"Then you look at the additional sponsorship possibilities and think it would be nice to get it to £100m, but even then I wouldn't think my job would be done at that point, as it could go on beyond that."

 

He said Rangers were looking at opening a retail store at Glasgow Airport and one in Belfast. Internet sales and the use of Puma's international retail presence are also expected to grow revenue.

 

He said: "The Puma deal is a very good one. Typically, a manufacturer pays upfront and will claw that back at the end through the shirt prices.

 

"With Puma, I negotiated that we get a very high royalty rate on everything, even what we sell in the shop here at Ibrox."

 

A naming-rights deal for Ibrox is due to be in place for the start of the next season, with Sports Direct one potential partner.

 

The sales figures for online streaming of Rangers games this season are described as encouraging and the venture is "profitable". The club is also in discussions over rolling out WiFi around Ibrox and upgrading the electronic displays.

 

While Blackthorn Cider has agreed a deal to be shirt sponsor, Mr Stockbridge is looking for an additional brand to place on the youth team strips as they cannot carry alcohol advertising.

 

Mr Stockbridge said: "It is about looking at new things the club has never done before to generate revenue, but without ripping people off. This is more than a football club. It is a global brand. Anything that can be done to improve the revenue for the club and commercialise things in a more effective way should be looked at."

 

While the exact reconstruction of the Scottish football leagues remains undecided, Mr Stockbridge is adamant the club does not need to be playing in the top flight to be profitable.

 

He admits to being "horrified" at some commercial contracts into which the club had previously been tied, but is delighted with where it now stands.

 

http://www.heraldscotland.com/news/home-news/rangers-aim-for-100m-turnover.20455502

[Bluedell 5,686]

But Mr Stockbridge pointed out that Rangers historically had a turnover of about £60m in years when competing in the Champions League – not including merchandising, which had been hived off to JJB Sports.

 

We have managed to get turnover of £60m twice in our history:

 

In 2008 we had £64.5m when we were in the CL and the 5 rounds of the UEFA Cup and had approx £4.5m of income from JJB included in the turnover and,

in 2006 we had £61.2m including £17.9m of retail sales, which was when we manufacrtured our own strips so we got turnover on every strip sold.

 

 

He said: "When [Rangers] did its own retail it made £20.5m turnover and £5.6m profit just from merchandising.

Between 2003-2006 Rangers manufactured our own strips. This lead to turnover increasing from the standard retail of £9m-£11m to £17.9m-£20.6m.

2003 Turnover £19.2m

2004 Turnover £18.7m Profit £3.7m

2005 Turnover £20.6m Unknown but unlikely to be over £4.5 based on the prior year and standard industry margins.

2006 Turnover £17.9m Profit £2m after taking out part of the lump sum that was included to offset the closure costs

 

As already said, the turnover was inflated because we manufactured our own strips. We are not going to be doing that thereforeoir turnover is extremely unlikely to be anywhere near that level.

 

"So, let's say if we can only do as good as £20m [even] with Mike Ashley as our partner, with Puma and with internet sales, then suddenly we are looking at £80m to £90m turnover.

 

Turnover with reaching the CL group stages and excluding merchandising is £52m and even including a generous £15m for it, we aren't even at £70m so we are way short of his figures.

 

If Stockbridge believes what he is saying then he is showing a worrying lack of understanding of our business and the historic numbers.

[der Berliner 3,859]

I would assume he envisages these numbers once we are back in the top flight and the CL, but surely not on a yearly basis. That said, who knows how the game is structured in 4 years time.

[chilledbear 16]

I would be a lot more excited if they would tell us about the playing side.

 

There was supposed to be a review taking place on the youth set-up, also on how we could better utilise Auchenhowie.

 

We need new thinking in the Coaching side, whether Ally stays or goes, the present system is not working.

 

Unless we do something quick, the crowds will drift away and with them future fan base.

[the gunslinger 3,366]

they must imagine we button up the back.

[Crimson Dynamo 128]

We have managed to get turnover of £60m twice in our history:

 

In 2008 we had £64.5m when we were in the CL and the 5 rounds of the UEFA Cup and had approx £4.5m of income from JJB included in the turnover and,

in 2006 we had £61.2m including £17.9m of retail sales, which was when we manufacrtured our own strips so we got turnover on every strip sold.

 

 

 

Between 2003-2006 Rangers manufactured our own strips. This lead to turnover increasing from the standard retail of £9m-£11m to £17.9m-£20.6m.

2003 Turnover £19.2m

2004 Turnover £18.7m Profit £3.7m

2005 Turnover £20.6m Unknown but unlikely to be over £4.5 based on the prior year and standard industry margins.

2006 Turnover £17.9m Profit £2m after taking out part of the lump sum that was included to offset the closure costs

 

As already said, the turnover was inflated because we manufactured our own strips. We are not going to be doing that thereforeoir turnover is extremely unlikely to be anywhere near that level.

 

 

 

Turnover with reaching the CL group stages and excluding merchandising is £52m and even including a generous £15m for it, we aren't even at £70m so we are way short of his figures.

 

If Stockbridge believes what he is saying then he is showing a worrying lack of understanding of our business and the historic numbers.

 

 

I agree......

 

Though I think we have lot's of untapped potential for example if we are selling the naming rights to Ibrox why not do it for Murray Park also? Why not get a seperate sponsor for training tops etc....

 

I think he needs to be a lot more clearer in what Rangers plan to do to generate this type of turnover.....

[the gunslinger 3,366]

he also plans to reach the cl while paying less in wages than previously.

 

now thats somewhat ambitious.

[Crimson Dynamo 128]

If we get things like scouting and youth development right then it is possible for us to do that.

[der Berliner 3,859]

he also plans to reach the cl while paying less in wages than previously.

 

now thats somewhat ambitious.

 

Do we need to pay much more wages to reach a European place in Scotland? The Scum will probably have enough cash from this year's CL run to finance their squad for a year or more, but whether they can sustain their 30odd first teamers remains to be seen. It all depends on shrewd buys and deals. Most of those players on our current target list will be content with 5 to 7k a week.

[Stimpy 0]

We have managed to get turnover of £60m twice in our history:

 

In 2008 we had £64.5m when we were in the CL and the 5 rounds of the UEFA Cup and had approx £4.5m of income from JJB included in the turnover and,

in 2006 we had £61.2m including £17.9m of retail sales, which was when we manufacrtured our own strips so we got turnover on every strip sold.

 

 

 

Between 2003-2006 Rangers manufactured our own strips. This lead to turnover increasing from the standard retail of £9m-£11m to £17.9m-£20.6m.

2003 Turnover £19.2m

2004 Turnover £18.7m Profit £3.7m

2005 Turnover £20.6m Unknown but unlikely to be over £4.5 based on the prior year and standard industry margins.

2006 Turnover £17.9m Profit £2m after taking out part of the lump sum that was included to offset the closure costs

 

As already said, the turnover was inflated because we manufactured our own strips. We are not going to be doing that thereforeoir turnover is extremely unlikely to be anywhere near that level.

 

 

 

Turnover with reaching the CL group stages and excluding merchandising is £52m and even including a generous £15m for it, we aren't even at £70m so we are way short of his figures.

 

If Stockbridge believes what he is saying then he is showing a worrying lack of understanding of our business and the historic numbers.

 

Have you got a copy of the accounts for last ten years mate? Rangers Pedia ones never work.