Jump to content

Oh Ah! Rangers In Trouble.


Steven H
 Share

Recommended Posts

 

 

How does he reign in the mad spending when they are all on long contracts and over the top wages? Who will quit? Who will be bought?

Easiest way is admin, default on the £2 million, claim the albion & edminston, break the players & management contracts, keep his retail and scoop it up for a song

 

Sorry Norge cannot answer any of your questions, but the way I see it as an outsider looking in is this...

He bought newcastles debt of £130 million, at the moment they still owe him £100 at least. He is ploughing stupid money into a club that will never get into the Champions league in the next 10 yrs, no matter how much he spends. But as you say he owns the naming rights for the stadium (Sports Direct bla blah blah) and the shirts sponsorship will have his company logo all over it.

So if he buys out said management contracts and also the players on mad wages, for say £20 million, spends 10-15million on players and reaches Europe in a couple of yr, then he has reached his goal...sports direct going global for a fraction of the price he would have to spend with newcastle. If he even spent £20million a yr for the next 5 yr then he would have a massive return compared to his 60-100million with newcastle. Just my way of looking at it, but you maybe right and he is trying for a forced admin and get everything even cheaper.

Link to comment
Share on other sites

Sorry Norge cannot answer any of your questions, but the way I see it as an outsider looking in is this...

He bought newcastles debt of £130 million, at the moment they still owe him £100 at least. He is ploughing stupid money into a club that will never get into the Champions league in the next 10 yrs, no matter how much he spends. But as you say he owns the naming rights for the stadium (Sports Direct bla blah blah) and the shirts sponsorship will have his company logo all over it.

So if he buys out said management contracts and also the players on mad wages, for say £20 million, spends 10-15million on players and reaches Europe in a couple of yr, then he has reached his goal...sports direct going global for a fraction of the price he would have to spend with newcastle. If he even spent £20million a yr for the next 5 yr then he would have a massive return compared to his 60-100million with newcastle. Just my way of looking at it, but you maybe right and he is trying for a forced admin and get everything even cheaper.

 

Sports direct are already pretty well known through Europe, the money he will make from Newcastle in the EPL will far outweigh anything he will get at Rangers.

He took £100 million debt on at Newcastle and got the merchandising, but £100 million debt is peanuts in EPL, Newcastle got £80 million from TV, & League place alone last year, not counting their own sponsorship and £30 million in EPL ticket money.

 

The EPL is broadcast to more countries than Rangers would be seen in the champions league, so he already has the worldwide exposure for his brand.

 

He won't and doesn't need to spend £20 million, as long as Rangers are top 3 and Celtic aren't out of site at Xmas he will keep flogging the tops, then he'll take the ticketing (like Newcastle) with a skim off that, expect a new loan against Ibrox or Murray park soon when the 1st £2 million runs out (Decembers pay roll), players up for sale in January, then whats not sold will go in an admin in February, by which stage he will have the ground, the car park, the merchandise, the trademark, the offices all part of MASH not Rangers....... then he can start running it as a leaner business with him having the kings share of the profits from merchandise, ticketing, lease on stadium.

 

They won't ever go bust again, but the days of outspending everyone are long gone

  • Like 1
Link to comment
Share on other sites

  • Members

SFA reported to have written to Ashley and Sevco seeking assurances that he will not take ownership of more than 10% of the Club and will not have any representation on the board. They were saying on the radio on Saturday that they think that he will just ignore that. Next couple of months could be fun! I reckon he'll keep them going till he finds out what division they will be in next season.

Link to comment
Share on other sites

Really have to chuckle at the Dcottish media's attempts to frame this in terms of good guys etc. Even more hilarious is the SFA contorting themselves in knots trying to blind themselves to the fact that Ashley now calls the shots in Govan. I'd predict that the outcome of all this will be that Sevco will not go bust, but be kept alive long enough to get into Europe and frankly if the h*ns think they're on the brink of world domination, they've got another thing coming.

Link to comment
Share on other sites

I see that Sports Direct have lost a legal case involving zero hours contracts, and the thought occurred to me that Ashley might want to put the Rangers manager and other non-playing staff on zero hours contracts as a way of saving money. Process would be: 1. Go into administration (again), 2. scrap employee contracts, 3. new zero hour employee contracts with newco. Makes perfect sense to me.

Link to comment
Share on other sites

I don't think Ashley is putting his money in just to lose it. If he can get his company name all over Europe for a fraction of the money he throws at newcastle, then he will.

It doesn't work like that. Only official sponsors are allowed to advertise during CL televised games. Any and all mentions of Sports Direct that would be visible during the televised match must be taken down or covered up. And that includes the post-match interview background thingys...
Link to comment
Share on other sites

It doesn't work like that. Only official sponsors are allowed to advertise during CL televised games. Any and all mentions of Sports Direct that would be visible during the televised match must be taken down or covered up. And that includes the post-match interview background thingys...

Would he need to turn the Rangers jerseys inside out :D

Link to comment
Share on other sites

If his time at Newcastle is anything to go by then what we can say is that Ashley doesn't give a frig about the supporters. He has a captive customer base (it is not as if they are likely to transfer their custom to another brand) and he is certain to want to squeeze them for all he can get out of them. All he is interested in is profit. Whatever way you look at it, going into admin and therefore significant points deduction is not going to generate much profit. The obvious way to maximise profit is to get Rangers into Europe for the minimum cost and once there, seel the club on as a team pretty much guaranteed European football. It also meens that there will be a high player turn over with players bought cheep and sold on for profit,

Link to comment
Share on other sites

If his time at Newcastle is anything to go by then what we can say is that Ashley doesn't give a frig about the supporters. He has a captive customer base (it is not as if they are likely to transfer their custom to another brand) and he is certain to want to squeeze them for all he can get out of them. All he is interested in is profit. Whatever way you look at it, going into admin and therefore significant points deduction is not going to generate much profit. The obvious way to maximise profit is to get Rangers into Europe for the minimum cost and once there, seel the club on as a team pretty much guaranteed European football. It also meens that there will be a high player turn over with players bought cheep and sold on for profit,

 

 

There's a lot of sense in what you say however catching up quickly and beating Celtic to the CL place won't come easily or quickly (unless he spends HUGE spondulicks and then it would diminish his profit). Celtic may be poorish just now but that's because they can afford a risky choice of manager. If Rangers threatened they'd go out and get someone much better. Of course he doesn't need to get CL to make his money. As long as he can get them to the top league and challenging regularly he will sell lots of shirts. That would require a lot less investment. That would need him to bring in a decent manager though but I think everybody including the current one knows that already.

 

However it isn't going to happen overnight as the first thing that needs to happen is control the finances. Ashley has just gotten control and there are 2 years at least of nonsense to unravel and fix (not saying it would take that time to sort out, just that it can't be done overnight). I've no doubt he's the man that is capable of doing that and making them long-term sustainable but that requires patience by the supporters for 2 or 3 years. The demotion of Hearts and Hibs has made it a lot more difficult than it otherwise would have been though in theory it shouldn't matter if they go up this season as long as the club's future is assured. The big question is how patient will their supporters be. They're not known for patience and besides they are also very factionalised at the moment.

 

Finally, whatever we say and however logical we are there's so much hidden from us as well as so much that doesn't make sense about the goings on at Ibrox that anything we surmise can easily be completely wrong. What I do think is sure is Ashley is only in it for the money and to get it with as little of his own investment as possible. That means Rangers are likely to avoid administration and this year or the next get promoted. However he is not going to throw his money away. Rangers won't find it easy like in the past. On the other hand they will still be bigger than the other clubs bar Celtic so ought to challenge for a European place at least though it always depends on getting the right manager and him getting the right players: look what Hamilton have done this year. A wee club can challenge briefly at the top and a big club can struggle.

 

Forgot to add: I wonder what the SFA would do if he filled the club with Newcastle reserves?

Edited by Mr Bunny
Link to comment
Share on other sites

Bilko what's your take on the latest installment of the Rangers saga or better known as "a fist full of pound coins"

 

To be honest Norge it's reached the stage now where i really don't give a crap.

 

Time will tell what his (Ashley) intentions are especially for the longterm but i can't see him letting Rangers go in to admin.

 

Standing just a few feet away from a certain Mr Easdale on Sunday i was going to go and ask him what's going on but he probably doesn't know himself

:D

Edited by billko
Link to comment
Share on other sites

 

However it isn't going to happen overnight as the first thing that needs to happen is control the finances. Ashley has just gotten control and there are 2 years at least of nonsense to unravel and fix (not saying it would take that time to sort out, just that it can't be done overnight). I've no doubt he's the man that is capable of doing that and making them long-term sustainable but that requires patience by the supporters for 2 or 3 years. The demotion of Hearts and Hibs has made it a lot more difficult than it otherwise would have been though in theory it shouldn't matter if they go up this season as long as the club's future is assured. The big question is how patient will their supporters be. They're not known for patience and besides they are also very factionalised at the moment.

 

 

The problem is the wage bill and length of contracts for a lot of the high earners, add to that the promotion to top teir bonuses (rumored to be millions across the back room and playing staff) and Rangers aren't viable out with Europe without merchandise.

How does he reduce the wage bill "legally" and cheap as possible whilst maintaining and increasing his assets (Stadium name, merchandise, car park, Edminston house)?

 

He can keep giving loans till the contracts run out, and replace with cheaper options, but that could take 18 months and tens of millions (they are losing over a million a month currently) mostly from Ashley's pocket, and slowly get it back or offer 1 more loan secured against ground and Murray Park, let the club/ company renage on the debt, call in the security then allow them to admin. He then has the stadium (for leaseback or sale) the training park, the car park, the offices, the merchandise and the copyright. He doesn't need the actual club he has all the revenue streams tied up.

 

Link to comment
Share on other sites

The problem is the wage bill and length of contracts for a lot of the high earners, add to that the promotion to top teir bonuses (rumored to be millions across the back room and playing staff) and Rangers aren't viable out with Europe without merchandise.

How does he reduce the wage bill "legally" and cheap as possible whilst maintaining and increasing his assets (Stadium name, merchandise, car park, Edminston house)?

 

He can keep giving loans till the contracts run out, and replace with cheaper options, but that could take 18 months and tens of millions (they are losing over a million a month currently) mostly from Ashley's pocket, and slowly get it back or offer 1 more loan secured against ground and Murray Park, let the club/ company renage on the debt, call in the security then allow them to admin. He then has the stadium (for leaseback or sale) the training park, the car park, the offices, the merchandise and the copyright. He doesn't need the actual club he has all the revenue streams tied up.

 

But what does he do with them without the club ? He may own all the assets, but he needs the club to get maximum revenue from them.

 

What I'm certain of is that he has a plan. One way or the other, it will not be dull watching it play out.

Link to comment
Share on other sites

 

 

But what does he do with them without the club ? He may own all the assets, but he needs the club to get maximum revenue from them.

 

What I'm certain of is that he has a plan. One way or the other, it will not be dull watching it play out.

The club will be there in one shape or form, admin allows him to snatch it and the assets (which will already be his through security on the loans) for peanuts

Link to comment
Share on other sites

The club will be there in one shape or form, admin allows him to snatch it and the assets (which will already be his through security on the loans) for peanuts

He makes money either way from this.

Ashley didn't take up any shares in the share issue but bought them later so no money went to the club.

This is the part that should have Rangers fans worrying as he now will just give loans on the back of getting more assets so he owns everything.

If Rangers go into admin he will still have image rights to the badge, stadium/training ground leaseback. edmiston house, albion car park, 51% of all future merchandise revenue etc etc etc

If this happens he alienates the fans and who would buy any merchandise etc if he allows admin to happen.

He needs the fans and full stadiums to maximise his revenue but it will be interesting to see what his intentions are.

Link to comment
Share on other sites

He makes money either way from this. Ashley didn't take up any shares in the share issue but bought them later so no money went to the club. This is the part that should have Rangers fans worrying as he now will just give loans on the back of getting more assets so he owns everything. If Rangers go into admin he will still have image rights to the badge, stadium/training ground leaseback. edmiston house, albion car park, 51% of all future merchandise revenue etc etc etc If this happens he alienates the fans and who would buy any merchandise etc if he allows admin to happen. He needs the fans and full stadiums to maximise his revenue but it will be interesting to see what his intentions are.

 

Or he could just be a closet Celtic supporter with money to burn. Now that would be funny

Link to comment
Share on other sites

I reckon that Laxley Partners will get the property portfolio excluding Ibrox for a reduced price.

The money received will be used to see out the onerous contracts or as compensation for their cancellation, avoiding the need for administration.

Ashley will keep the naming and image rights along with the lion's share of merchandise revenue.

The Easdales will get the club, avoiding any need for Ashley to exceed 10%. I'd also imagine the Sports Direct logo to be prominently displayed on the shirts and around Ibrox.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...