Review of Rangers accounts 2019

[Gaffer 1,665]

4 minutes ago, Bill said:

When assessing the financial health of Rangers and progress towards a sustainable future, it might be prudent to assume there are parts of the board's business plan that are not expressed in the current financial statements. It's been my opinion for a while that permanent salvation from recent upheavals can only ever be fully achieved if there is substantial new investment that goes beyond the current support of Dave King and his allies. What they've done in recent years is hugely important but is it only building a platform for a different future?

 

If we're honest, Rangers' mission is to compete with Celtic and unless their financial position is to deteriorate significantly then ours has to improve a very long way from where we are today. We may be able to "trade" our way to success and security but it will take more years to achieve it than most fans are prepared to contemplate. If short term success is to be achieved it can only be done by incurring a level of expenditure that current shareholders will find impossible to sustain for much longer. This is either going to be a much longer road back to the top than anyone is admitting or we are going to need significant new investment, almost certainly corporate investment ... and that is going to bring the return of a familiar risk for the club, which many fans will find equally unappealing.

 

Finding that new investor has to be one of Dave King's priorities. I just hope he finds one we can live with. If not then we might need to re-assess our own priorities a little.

 

 

I agree we need other wealthy contributors, but I will always be suspicious of anyone (never mind corporate investors) putting money into Rangers as an investment.  If you really are interested in an investment, you'd never put your money in a football club, never mind one with the lofty expectations of our club and it's fans.  We will always rely on a business model of buying and selling players for profit.  Of course we will also benefit from wealthy individuals like King who want to financially support the club too.  I saw Club 1872 as an important part of this process because it could provide the vehicle for fans like me to put money into the c,I believe without expectation of a return on that investment.  For many reasons our support seem unwilling to participate in that scheme.  It's for that reason that we need King to hang around at least five more years to get us to the stage where we have a stable business model.  The problem is though that Celtic are operating a successful similar model and it will be very difficult to ever catch up unless they have serious consequences arising from two years of lack of success in European competitions.

[Bill 13,717]

6 minutes ago, Gaffer said:

I agree we need other wealthy contributors, but I will always be suspicious of anyone (never mind corporate investors) putting money into Rangers as an investment.  If you really are interested in an investment, you'd never put your money in a football club, never mind one with the lofty expectations of our club and it's fans.  We will always rely on a business model of buying and selling players for profit.  Of course we will also benefit from wealthy individuals like King who want to financially support the club too.  I saw Club 1872 as an important part of this process because it could provide the vehicle for fans like me to put money into the c,I believe without expectation of a return on that investment.  For many reasons our support seem unwilling to participate in that scheme.  It's for that reason that we need King to hang around at least five more years to get us to the stage where we have a stable business model.  The problem is though that Celtic are operating a successful similar model and it will be very difficult to ever catch up unless they have serious consequences arising from two years of lack of success in European competitions.

I agree with your fears about major new investment but I think the alternative is going to be a much longer road back than most believe.

[buster. 5,185]

38 minutes ago, Bill said:

When assessing the financial health of Rangers and progress towards a sustainable future, it might be prudent to assume there are parts of the board's business plan that are not expressed in the current financial statements. It's been my opinion for a while that permanent salvation from recent upheavals can only ever be fully achieved if there is substantial new investment that goes beyond the current support of Dave King and his allies. What they've done in recent years is hugely important but is it only building a platform for a different future?

 

If we're honest, Rangers' mission is to compete with Celtic and unless their financial position is to deteriorate significantly then ours has to improve a very long way from where we are today. We may be able to "trade" our way to success and security but it will take more years to achieve it than most fans are prepared to contemplate. If short term success is to be achieved it can only be done by incurring a level of expenditure that current shareholders will find impossible to sustain for much longer. This is either going to be a much longer road back to the top than anyone is admitting or we are going to need significant new investment, almost certainly corporate investment ... and that is going to bring the return of a familiar risk for the club, which many fans will find equally unappealing.

 

Finding that new investor has to be one of Dave King's priorities. I just hope he finds one we can live with. If not then we might need to re-assess our own priorities a little.

 

 

The intention of Dave King and his allies was/is in part to build the platform within the football operation that allows us to get on an even financial keel.

 

The way to do that is not simply chuck more and more money at it but it is partly to invest in youth, improve players/add value, provide pathways that see a significant number of homegrown players as regular starters. Start getting value for money within vastly improved player trading numbers. Not simply buy big with big wages that often mean we end up going down the familiar Pay Off route.

 

The problem that could arise is that it doesn't start producing significantly before a tipping point is reached. In that sense, more money would be required and the big problem with the youth strategy is that managers are going to be under huge pressure to deliver and it'll be unlikely they'd get a real chance.

 

I said back when we were winning the Al Kass Cup that it may end up being some of these players that help win us the league back. 

 

 

All that said,.... we currently have a squad and management team that I think are capable of delivering. I think winning the League Cup would be exactly what our players need to install the necessary belief.

Edited November 7, 2019 by buster.

[MacK1950 2,376]

38 minutes ago, Bill said:

 For many reasons our support seem unwilling to participate in that scheme.

Fair enough on that but I, like many others IMO, am willing to but cash flow prevents me from doing so.

[JFK-1 1,693]

The frothing at the mouth from the usual suspects over financial results is in fact comical. While it's not a trend that can continue indefinitely it's not a problem for a club of Rangers stature. The losses are minimal in comparison to some of those being posted in the English Championship yet no one is screaming they're going to be in admin by Xmas, by the end of the season, or any random future point you care to choose.

This is a link to an article the BBC posted a couple of days ago regarding the spending/losses of English championship clubs plus a chart showing each clubs posted losses from the 2017/18 season.
 

Championship 'bubble waiting to burst' with clubs posting record losses in Premier League 'gamble'

 

Edited December 14, 2019 by JFK-1