Economic Carnage and what it entails for Rangers

[Bluedell 5,625]

17 hours ago, Tannochsidebear said:

I have yet to hear that by furloughing a player, that gives them any wriggle room in their contract to leave for free. Obviously if it turns out that this would allow the player to leave for free (i.e. breach of contract), then this wouldn't work, but as far as I am concerned, we should be putting every single non-playing, non-income generating, member of staff on furlough and not topping up their wages, or if we can afford to , top them up to a reasonable level that would allow them to live. As for players, slash all wages until such times as they can undertake their work again. A lot of our players aren't even in the country, but we are continuing to pay them in full (dont give me any tosh about deferrals, that merely adds a debt to be repaid down the line), despite them not being able to go to work or to earn their wages. Furlough them all, take the longer term view and safeguard our future.

Employees can only be furloughed if they agree to it. 

 

In most cases, people agree to it because the alternative may be redundancy. However that's obviously not the case with players. It needs to be public pressure for them to look to help, rather than them sitting back and collecting cash being paid for by supporters who are on furlough or reduced hours.

[buster. 5,194]

22 hours ago, Bill said:

I can't understand why Rangers isn't already locking away the chequebook and taking every step possible to minimise cash outflow. More companies go to the wall in challenging times due to hesitation than the challenge itself. 

 

It's for situations like this that companies carry a cash reserve. Rangers, as far as I can see, has no reserve, other than soft loan commitments. Such commitments can no longer be guaranteed because every director whose wealth is founded on his business will also be under pressure. With no end in sight to current restrictions, what Rangers is effectively doing at the moment is bleeding cash. The danger is that, by the time it becomes clear how long it will be before income streams are flowing again, Rangers may be in existential difficulties.

 

I have no insight into Rangers' operating finances but, if it were me, I'd be assuming no crowds (ST income) before (say) October and ruthlessly minimising outgoings between now and then, regardless of the emotional stuff about laying off staff. Any other strategy is irresponsible. I spent my business life in the oil industry, where there is a constant cycle of boom of bust and if you didn't make provisions for and react early to hard times, you likely went to the wall. Rangers don't normally operate in an environment like this and it worries me we may not have the required survival instincts.

 

Far too much attention is being given to the SPFL and awarding titles. Of much greater concern to me is the condition Rangers could be in six months from now.

Good post Bill !

 

Focuses on the stark reality that faces the club and deserves a bump.

[Walterbear 557]

11 hours ago, craig said:

Barcelona already looking to sell the naming rights to Nou Camp for a season to try to help them through it....

 

11 hours ago, craig said:

The markets are currently down no more than they were in 2008.  Consolidation is inevitable and, when it happens, it will be about being on the right side of it.

 

My fear in the financial markets is a 2nd, or 3rd wave and we will see a double dip in the markets - it is very strange because, unlike 2008, this pandemic has everyone already espousing we are looking at a depression - so the markets SHOULD have already priced that in - yet they are "only" down 20% from their highs in February.  

 

We (my company) have had calls with some of the brightest and sharpest investment manager minds around (obviously due to investment portfolio management) and they cannot believe that the markets have rebounded as much as they have - in their words.... "we have NEVER seen this before.... so how can we possibly know where it is all headed" ??

What we do know is that liquidity is essential. Companies across the UK were /are stretching every credit facility in an unprecedented way. The govt is bailing out to some degree businesses and individuals. Our liquidity which is non-existent is going to depend on operational cost reduction, loans, player sales and fans buying ST. It really isn’t rocket science. It doesn’t matter what blue tinted spectacles we put on it this is a real danger moment for us - and we still have Ashley court case to deal with. 
 

Edited April 22, 2020 by Walterbear

[Tannochsidebear 2,406]

2 hours ago, Bluedell said:

Employees can only be furloughed if they agree to it. 

 

In most cases, people agree to it because the alternative may be redundancy. However that's obviously not the case with players. It needs to be public pressure for them to look to help, rather than them sitting back and collecting cash being paid for by supporters who are on furlough or reduced hours.

I accept that mate, but what player is going to risk the wrath of the fans if they refuse? Perhaps one on the way out anyway I will admit, but for most who want a Rangers career at the end of this, they dont have much of an option.

 

I dont think for one minute that the club will ever get to this stage, so its all hypothetical anyway.

[Tannochsidebear 2,406]

10 hours ago, craig said:

Barcelona already looking to sell the naming rights to Nou Camp for a season to try to help them through it....

Barca have said they would give the proceeds from this to corona-virus charities, not for their own coffers.

[Gaffer 1,665]

3 minutes ago, Tannochsidebear said:

I accept that mate, but what player is going to risk the wrath of the fans if they refuse? Perhaps one on the way out anyway I will admit, but for most who want a Rangers career at the end of this, they dont have much of an option.

 

I dont think for one minute that the club will ever get to this stage, so its all hypothetical anyway.

Mezut Ozil?  He won't be alone, and that might be the right thing to do from a players' perspective.  I think many players will find it difficult to get a new contract elsewhere for the same money so the year might take their current clubs for everying they have.

 

I really hope we don't get to that stage, but unfortunately I think it's inevitable.  I just hope our board realises this and is working on a plan.  This is way more important than titles now.  This is our survival.

Edited April 22, 2020 by Gaffer

[Bill 13,717]

2 hours ago, buster. said:

Good post Bill !

Buster being creepy

 

[buster. 5,194]

1 hour ago, Bill said:

Buster being creepy

A good post is a good post.

You are very capable of good objective anaylsis when it doesn´t involve politics of any kind.

 

Edited April 22, 2020 by buster.

[Bill 13,717]

1 hour ago, buster. said:

A good post is a good post.

You are very capable of good objective anaylsis when it doesn´t involve politics of any kind.

 

Ooh professor, thank you.

[compo 7,042]

Any employee who knocked back being furloughed would in my opinion be pretty thick the opposite is temporary suspension due to lack of work all the employer needs to give them is a letter for the benefits office to explain things then it could  e weeks before their universal credit gets paid .