Money Brox: Rangers journey to top flight nets minnows millions

[ian1964 10,761]

RANGERS’ journey back to the top flight netted their lower-league rivals a £4.5million windfall, The Scottish Sun on Sunday can reveal.

 

Smaller clubs cashed in on bumper crowds and juicy TV paydays from clashes with the Ibrox giants after their demotion to footie’s bottom tier.

 

Sponsorship, hospitality and merchandising boomed, while a travelling army of Bears fans splashed out in local shops, eateries and pubs on matchdays.

 

And football finance expert Neil Patey, of accountants Ernst & Young, urged the minnows to make the most of their unexpected bonanza.

 

He said: “Rangers moving through the leagues has had a significant positive impact.

 

“But the halo effect won’t last so building a legacy is important.

 

“The temptation will be to bump up wages to attract better players — but that strategy has got teams into trouble in the past.

 

“My advice is to pay off debt and invest in the future.”

 

League chief Neil Doncaster warned of financial “armageddon” when Rangers were booted down to League Two in 2012 following the club’s liquidation.

 

But figures for the three seasons to 2014/15 reveal 22 of the game’s smaller clubs turned a combined £3.28million loss into a £1.23million profit.

 

In the three years before 2012 their assets shrank by £1.69million — but rose by £144,000 in the three years after.

 

Meanwhile, total cash reserves bounced back from £1.08million in the red to £1.63million profit, a £2.71million turnaround.

 

Biggest winners were Championship side Falkirk who pocketed £2million from eight Gers clashes, helping to boost their total coffers by £608,000.

 

Queen of the South took in £1.7million to add £401,000 to their reserves.

 

And League Two outfit Berwick Rangers enjoyed a £189,000 cash injection from four games, while clubs like Livingston, Stirling Albion and Alloa also shared in the total £4.5million boost.

 

Paul Goodwin, of the Scottish Football Supporters Association, said: “Many clubs paid off debts thanks to having a large travelling support visit twice a season.

 

“Rangers fans also benefited far-flung local communities by spending in shops and restaurants.”

 

Cash-strapped Ayr United, Montrose, Peterhead, Albion Rovers, Cowdenbeath, East Fife and East Stirling failed to improve their bank balances in the three years.

 

Five teams were excluded from our probe.

 

Annan Athletic, Brechin City and Stranraer don’t produce accounts.

 

Dunfermline went bust in 2013, and Queen’s Park’s ownership of Hampden clouds the results.

 

Rangers won promotion to the Premiership at the second attempt last month.

 

 

A club spokesman said: “We’re delighted all these teams benefited from our journey.”

 

The SPFL said: “These clubs can now build strong financial health.”

 

http://www.thescottishsun.co.uk/scotsol/homepage/news/7181635/Money-Brox-Rangers-journey-to-top-flight-nets-minnows-millions.html

[forlanssister 3,114]

At the second game with Peterhead they announced a record crowd, which was a bit weird considering there were about 1500 more at the first game!

[der Berliner 3,803]

Someone should suggest to the relevant Rangers people that "MARK HOWARTH" is added to the "not wanted at Ibrox" list for producing half-facts and fiction

 

League chief Neil Doncaster warned of financial “armageddon” when Rangers were booted down to League Two in 2012 following the club’s liquidation.

[craig 5,199]

It's till tiresome dB.

 

Booted down is fairly accurate.

 

"Club's liquidation" is still semantics.

 

Saying someone isn't wanted at Ibrox over semantics would see Ibrox empty on a Saturday.

[der Berliner 3,803]

It's till tiresome dB.

 

Booted down is fairly accurate.

 

"Club's liquidation" is still semantics.

 

Saying someone isn't wanted at Ibrox over semantics would see Ibrox empty on a Saturday.

 

Empty of empty-headed journalists telling half-facts, half-truths and lies! What a sight!

 

Which club has been liquidated, BTW?

Edited May 30, 2016 by der Berliner

[craig 5,199]

Empty of empty-headed journalists telling half-facts, half-truths and lies! What a sight!

 

Which club has been liquidated, BTW?

 

Never made a literary mistake ? Are you going to always see this as deliberate attempts to re-write history ?

 

As is your prerogative - but almost every journalist writes about the liquidation process the same - so you wish to ban all journalists from Ibrox on the basis of what is nothing more than pedantry ?

 

Again, that is your prerogative - but if we did then we would look to be very, very petty.

[ranger_syntax 4,422]

Empty of empty-headed journalists telling half-facts, half-truths and lies! What a sight!

 

Given the opportunity to discuss Rangers impact on lower league clubs, or some tedious minutiae, many choose the latter.

 

Could the root of the problem lie elsewhere?

[ranger_syntax 4,422]

“The temptation will be to bump up wages to attract better players — but that strategy has got teams into trouble in the past.

 

“My advice is to pay off debt and invest in the future.”

 

. . .

 

But figures for the three seasons to 2014/15 reveal 22 of the game’s smaller clubs turned a combined £3.28million loss into a £1.23million profit.

 

In the three years before 2012 their assets shrank by £1.69million — but rose by £144,000 in the three years after.

 

Meanwhile, total cash reserves bounced back from £1.08million in the red to £1.63million profit, a £2.71million turnaround.

 

Biggest winners were Championship side Falkirk who pocketed £2million from eight Gers clashes, helping to boost their total coffers by £608,000.

 

Queen of the South took in £1.7million to add £401,000 to their reserves.

 

And League Two outfit Berwick Rangers enjoyed a £189,000 cash injection from four games, while clubs like Livingston, Stirling Albion and Alloa also shared in the total £4.5million boost.

 

. . .

 

Cash-strapped Ayr United, Montrose, Peterhead, Albion Rovers, Cowdenbeath, East Fife and East Stirling failed to improve their bank balances in the three years.

 

Five teams were excluded from our probe.

 

Annan Athletic, Brechin City and Stranraer don’t produce accounts.

 

Dunfermline went bust in 2013, and Queen’s Park’s ownership of Hampden clouds the results.

 

I have wondered about how these clubs would spend the money. In the case of many I hope they used it to improve facilities. Some, Annan in particular, are quite poor.

[craig 5,199]

I have wondered about how these clubs would spend the money. In the case of many I hope they used it to improve facilities. Some, Annan in particular, are quite poor.

 

The right thing for them would be to use the windfall on their infrastructure, if needed, or to "bank it for a rainy day". I certainly hope they didn't plough it into the playing personnel wages - promotion, unless to the premier league, wouldn't see much of an increase in income I wouldn't have thought. So why waste your new found wealth on trying to achieve it ? Infrastructure first.

[BlueMazza 0]

Excellent to see someone doing the analysis on what we all felt. When others talk of the 'contrition' we should feel for being victims of fraud, this should be our only response. We've packed out grounds across the country and probably done more for the smaller clubs in three years than the self serving SFA/SPFL have done in a while.