Bill Gates could be running Rangers right now and still not make a profit......

[ian1964 10,724]

......claims £1m Ibrox investor Kieran Prior

 

RANGERS investor Kieran Prior has studied the club’s accounts and reckons one of the richest men in the world would struggle to turn a profit at Ibrox.

 

However, Prior has stunned even himself by admitting the figures posted by the club to June 30 are “not that bad”.

 

He knows his views will be unpopular with fans but insists chief executive Craig Mather must be given time to take the club back into profitability as it rebuilds from financial rubble.

 

Former Goldman Sachs trader Prior has been an outspoken critic of the gravy train culture that has been prevalent at Ibrox in the past 18 months.

 

Prior has invested more than £1million to buy a stake of around 2.5 per cent in the club in the last six months and is in the market for more.

 

He is glad to see salary levels being brought under control after boss Ally McCoist agreed to a substantial wage cut and finance director Brian Stockbridge waived his right to bonuses.

 

Rangers posted a staggering loss of £14m for the 13 months to the end of June after running up costs of £33.7m against revenues of only £19m.

 

Prior said: “I have been one of the loudest critics of those currently running the club but they can’t be blamed for all of this and, to my mind, the accounts just filed are not that bad.

 

“It is a different view from one I expected to hold and I know the majority of fans will not be happy with it.

 

“But we could have had Bill Gates running Rangers over the last year and some major costs could not have been avoided.

 

“One-off debts such as certain legal fees, oldco football debts, acquisition and IPO costs and pay-offs to individuals such as Charles Green amount to several million and won’t be recurring.

 

“There are costs in the annual report that I, as a shareholder, will be encouraging the board to work to reduce in the current financial year.

 

“There are also costs relating to the IPO and the acquisition of assets that have raised eyebrows, but agreements had to be made in terms of raising finance to get the club off the floor.

 

“I’m trying to be a fan but not a fanatic about the whole thing. I like the fact we won 8-0 at the weekend, even if critics will say it’s only League One. We have to process through these leagues and earn the right to play Real Madrid again.”

 

Gers fans are up in arms and have been calling for the board to be sacked amid concerns they are taking the club for all they can get.

 

Prior has welcomed the move to reduce executive levels of pay but scoffs at suggestions current investors, including CEO Mather, are only in it to plunder the club of its reserves before an inevitable second administration.

 

He added: “There is no danger, in my opinion as a professional investor, of Rangers going under.

 

“I know people want to be overly critical of those currently running the club, perhaps because they are being encouraged by requisitioners and others. Some of the requisitioners can be held equally responsible for the club’s financial position as they let it to get to the position where it was sold to Craig Whyte.

 

“I’m not saying the fan voice doesn’t matter because it does but under the plc model you generally don’t get a say unless you put your money where your mouth is and that was always my criticism of the Jim McColl consortium.

 

“Jim has more money than any Rangers fans I know and yet has not come to the table.

 

“I have seen a set of accounts, audited by Deloitte, a top five accountancy firm. I’m happy with how things are going fiscally.

 

“It’s important we try to get things settled down off the park. If we’re still struggling financially next year, then we can act.

 

“But I do believe our financial position will be dramatically improved by then. I’m not sure if we will have returned to profit but a lot of the costs incurred in the last 12 months have taken us to the position we can get to the SPFL Premiership without major changes to staff.

 

“Mather has done a good job to move the club to a more stable place and to think he and other board members are only interested in raiding the club is naive. Why do that now when the club is in League One?

 

“This club is naturally six or seven times bigger than it is right now. It doesn’t make sense to raid the coffers when it is being looked at by an auditor at the end of the year.

 

“I’m also pleased key individuals such as Stockbridge and McCoist have agreed to pay cuts and for bonuses to be waived. They must be applauded for reacting to the fans’ will. It was the right thing.”

 

Prior admits he is still concerned to see the spectre of Whyte hanging over the club as he continues his battle to prove he was part of the group that bought over the oldco’s assets from administrators Duff and Phelps.

 

He added: “Individuals such as Whyte and Green are no longer directly involved, although I notice legal arguments between Whyte and the club continue.

 

“Whether or not Whyte has a case is for lawyers and judges to decide. I have nothing but disdain for him because he was taking the **** out of Rangers.”

 

Prior also knows the club won’t reach its financial potential until it returns to the top flight and season-ticket sales, broadcast returns, hospitality spend and European revenues reach previous levels.

 

He added: “These are all factors to be considered. Rangers cannot tap into these revenues until the club is back in the top league.

 

“Ally looks to have his team playing the way he wants.

 

“We are where we are now but need a period of calm so we can build to where we want to be.”

 

http://www.dailyrecord.co.uk/sport/football/football-news/bill-gates-could-running-rangers-2333671

[Bluedell 5,627]

Prior said: “I have been one of the loudest critics of those currently running the club but they can’t be blamed for all of this and, to my mind, the accounts just filed are not that bad.

 

You have to ask why he has been so critical if the accounts are "not that bad".

 

“One-off debts such as certain legal fees, oldco football debts, acquisition and IPO costs and pay-offs to individuals such as Charles Green amount to several million and won’t be recurring.

 

The oldco football debts, acquisition and IPO costs are not included in the £14m operating loss so aren't tat relevant in the overall scheme of things. The legal fees were largely avoidable if the directors and ex-directors had done things differently so what's to say that they will not continue to act in ways that are going to cost us money. As for the Green pay-off, why did we have to do that? Again questions have to be asked of the directors as to why that cost was incurred.

 

 

We have to process through these leagues and earn the right to play Real Madrid again.”

When did we last play Real Madrid?

 

 

He added: “There is no danger, in my opinion as a professional investor, of Rangers going under.

People keep saying that but failing to justify it. Where is the funding obviously required coming from? Then again, we were told that under Whyte as well.

 

“It’s important we try to get things settled down off the park. If we’re still struggling financially next year, then we can act.

It will be too late by then. The time for acting is now.

 

 

 

“This club is naturally six or seven times bigger than it is right now. It doesn’t make sense to raid the coffers when it is being looked at by an auditor at the end of the year.

 

How naive is he, if he thinks the fact that auditors look at accounts prevent cash from disappearing. Look at all the cash that has gone over the last 9 months.

[ian1964 10,724]

I have a lot of mistrust in this guy!

[der Berliner 3,749]

While I take most of what is being written with a pinch of salt, his and the opinion of Arnold Black over on the Rangers Standard site help to put the concern levels down somewhat. We all know that it is far from rosy, but it is neither how some would lead us to believe.

 

NB: I see he receives some flak already. Fair enough. So far, we haven't heard much from McCollCo and Co. either. King has also gone into another hibernation period. Just saying.

[the gunslinger 3,366]

No one was expecting a profit. Its the disappearing cash thats the issue.

 

Green inherited a very difficult situation and made it worse by profiteering.

 

He coukd have been open honest and did what was right for rangers and still made millions but no he got greedy.

[Bluedell 5,627]

While I take most of what is being written with a pinch of salt, his and the opinion of Arnold Black over on the Rangers Standard site help to put the concern levels down somewhat. We all know that it is far from rosy, but it is neither how some would lead us to believe.

Arnold Black doesbn't give much of an opinion other than to state "it contradicts the explanations that costs are being reduced and brought under control" so I'm not sure why it brings your concern levels down.

 

 

NB: I see he receives some flak already. Fair enough. So far, we haven't heard much from McCollCo and Co. either. King has also gone into another hibernation period. Just saying.

It's probably best that we don't hear from either. If they want to do something they should do it and stop talking about it.

[der Berliner 3,749]

"Concern levels down" when it comes to a possible 2nd admin et al. I obviously want to know where all the money's gone.

[True_Ger_1872 2]

It will be interesting to see how he votes at the AGM.....

[ian1964 10,724]

It will be interesting to see how he votes at the AGM.....

 

I think you know where is vote is going!,he can't be any clearer,he has no time for Mcollco

[True_Ger_1872 2]

I think you know where is vote is going!,he can't be any clearer,he has no time for Mcollco

 

Well that came across in his Record Interview but when he was on Snyde last night he stated that he would vote "in the best interests of the club" - now when he says that the accounts arent all bad and we need to build on where we are now, i dont think we can rule out this guy being swayed by McColl...after all....we havent heard their full Rangers Business Plan yet.

 

Long shot i realise, but i am not going to hedge my bets over anything relating to this AGM.