[PUBLISHED] The 120 Day Review thread - all updates and discussion here

[the gunslinger 3,366]

It's a contract not a loan, hence why we've never been given security over anything for it, and season tickets have been around since the 80s before I was even born

 

Contracts often carry guarantees.

[andy steel 0]

Andy - king is not an alternative at present as he has done the square roiot of fuck all..

 

I don't quite agree with that, I think he's at least helped provide the idea of an alternative to swallowing our reservations and handing over our money. That alone, intentionally or not, has flushed out some facts and characters: Easdale front up for the club revealing where the power lies (as if we didn't know) despite not being legally in situ, a cosy wee arrangement if ever there was one; Wallace apportioning blame while withholding fairly major facts about the loss of the credit facility; the appointment of yet another PR wallah to try to cover the spoor of incompetence which goes up to the door of the stadium.

 

If you mean he hasn't coughed up and bought the club, then you're right, but I see that as a seriously last resort and tbh, anyone who actually did that at this moment/in the last wee while would worry me as to their financial acumen.

 

But it's last chance saloon for the 'Rangers men'. If they don't get it together this time, hopefully with the addition of a supporter based fraction like RF or BR, we've had it.

[chilledbear 16]

http://www.sportingfinance.co.uk

 

F C Rangers of Glasgow a step closer?

Posted on April 26, 2014

One of the benefits of being a listed PLC football club, is that you have greater access to information on the financial performance.

 

The release on Friday of a strategic review (see link at bottom of page) on Rangers makes staggering reading. It we think back a few years, one of the justifications made for points deductions in the event of insolvency, was to deter clubs from using insolvency as a liability cleanse. Put simply, football wanted to sanction clubs for trying to simply dump debt and strengthen their finances with impunity.

 

Of course, that was not the case with Rangers as their Administration led to an effective relegation to the lowest tier of Scottish league football. Nonetheless, financially they had that clean financial slate on which to build. No debts, a paying fanbase at least 40 times bigger than their division rivals, and commercial income still keen on exposure to those fans. All that was needed was to control the costs; cutting one’s cloth sensibly in the knowledge your cloth is a king-sized duvet compared to the handkerchiefs of their contemporaries in the lower reaches of Scottish football. Simples….?

 

.. well apparently not. The business review is damning on the mis-management of the business post administration and a total failure of financial discipline. In the 13 month period to 30 June 2013, the accounts show a wage bill just shy of £18m. Gate receipts were only c£13m and total income just over £19m. Factor in the write down of transfer fees of £1.7m and all the income is spent on players & staff alone. Nothing new or significant in that itself, most other clubs are same, but not a club the size of Rangers in the 4th tier of the league structure. Was that investment really justified or necessary to get out of that division?

 

To put that in context, in absolute terms Rangers’ wage bill is about £5m higher than a mid-table English Championship club like Derby. As a % of turnover or revenue, the current top 5 EPL clubs range from 55% to about 75%. As a comparative, Derby County as a representative Championship club is about 78%. Rangers is close on 94%.

 

Whether “newco” Rangers were saddled with onerous player contract commitments as part of the acquisition from the insolvent company is not clear. This could have been the case under TUPE style regulation (or similar). However, the 2013 accounts state that only 8 players remained from the 2011/2012 season suggesting the extent of any carry over from the old company employment commitments was limited and much of the payroll was therefore committed by the new management.

 

So what happens now, apart from the usual recriminations and lots of criticism of negative coverage? The business seems to be preying on the loyalty of the fans once again. Season ticket sales and potentially a future share issue being offered as the short & medium term solutions. One can only assume fans are the most likely subscribers to shares at present, as emotion seems the only reason to invest. It is very difficult to see the financial sense of purchasing shares at this juncture.

 

At present, the fans appear reticent and you can understand why. Yes, there is a new Board and lots of sensible comment about the future direction from them, but the fans have been let down by successive management teams. They want, and deserve, assurances that this time it can, and will be, different. If they can’t be convinced then the future of this great club is once again in peril.

 

The question a Board should ask fans is “low club or no club.” A difficult and often un-palatable question, but there is only one conclusion you should get – low club. If this was not the case no Phoenix clubs would ever exist. “No club” was not the answer for Chester, AFC Wimbledon, Aldershot, Newport & Halifax.

 

I hope we don’t see AFC Rangers, or FC Rangers of Glasgow in the Scottish non-league. Maybe this time the management will keep the cut of the kilt to the size of the man and the material. Rangers still have so much going for them, this time perhaps they will get the management they need.

 

http://rangers.g3dhosting.com/regulatory_news_article/377

 

Sporting Finance

[pmu 0]

Interesting article. Don't see many on here accepting low club as all the talk since day one of this fiasco(admin) is spending millions to beat celtic as soon as we get back up to the top league. Where this ends now is anyones guess but we certainly blew a huge opportunity.

[Waltersgotstyle 307]

As I said before - the time to buy Rangers is now - the share price is tick bottom.

 

Surely King can gather up a decent amount of shares to gain some boardroom influence now?

[the gunslinger 3,366]

As I said before - the time to buy Rangers is now - the share price is tick bottom.

 

Surely King can gather up a decent amount of shares to gain some boardroom influence now?

 

but who from? and at what price?

[pete 2,499]

but who from? and at what price?

 

Agree it is not as simple as it seems. The price is low but most of the big Shareholders won't sell for that price. If you want to buy a big shareholder out then the price will be far higher.

[chilledbear 16]

Chris Graham saying on FF that Wallace maybe in a lot of trouble.

[Zappa 0]

Chris Graham saying on FF that Wallace maybe in a lot of trouble.

 

Any indication as to why?

[Calgacus 8]

Because he publicly disagreed with Easdale?