Generic Sevco / Rangers meltdown thread

[Cabbage East]

Jesus wept.

Appendix 1 – Summary of Income & Expenditure 29 May 2012 – 31 December 2013
Income
£m
Expenditure
£m
External Funding
Purchase of the Club
IPO Shares Issued
22.2
Purchase of the Club
5.5
Pre IPO Shares Issued
13.3
Repayment of OLDCO Debt
3.0
35.5
Commissions and introduction Fees IPO/Pre IPO
2.7
Pre Acquisition Payroll and other Expenses
1.2
Broker Commissions & Stamp Duty
1.2
Corporate Finance and Fund Raising Advice
1.1
Legal & Accountancy Fees
0.7
Other Professional Services
0.5
Professional Fees of Purchase and Incorporation
0.4
16.3
Football
Football
Player Sales
1.2
First Team Payroll Costs
10.4
1.2
Other Football Related Payroll Costs
5.6
Termination of Player Contracts
2.3
Purchase of Players
1.5
19.8
Operations
Operations
Match Day Income
26.3
Central Administration and Overheads
8.6
Commercial Income
7.7
Matchday and Direct Costs
8.4
34.0
Non Football Payroll Costs
7.0
Purchase of Fixed Assets
5.6
Director’s Severance Costs
0.9
Investigation Fees
0.6
31.1
Cash Balance at December 2013
3.5
70.7
70.7

" The Club acquired a number of players in Summer 2013 that, based on financial forecasts, it should have known that it could not afford.

The first team squad has the second highest wage bill in Scottish football for a team currently playing in the third tier. The total player wage cost is well in excess of the level it should be primarily due to generous and poorly structured contracts that were awarded to some players when they joined the Club."

[Moulin Yarns]

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Admitting they have mismanaged again ! Need to raise £30M.

Joke Club

They've already blown £70million in the 2 years of their existance!!!!

[jgl07]

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Jesus wept.

Appendix 1 – Summary of Income & Expenditure 29 May 2012 – 31 December 2013
Income
£m
Expenditure
£m
External Funding
Purchase of the Club
IPO Shares Issued
22.2
Purchase of the Club
5.5
Pre IPO Shares Issued
13.3
Repayment of OLDCO Debt
3.0
35.5
Commissions and introduction Fees IPO/Pre IPO
2.7
Pre Acquisition Payroll and other Expenses
1.2
Broker Commissions & Stamp Duty
1.2
Corporate Finance and Fund Raising Advice
1.1
Legal & Accountancy Fees
0.7
Other Professional Services
0.5
Professional Fees of Purchase and Incorporation
0.4
16.3
Football
Football
Player Sales
1.2
First Team Payroll Costs
10.4
1.2
Other Football Related Payroll Costs
5.6
Termination of Player Contracts
2.3
Purchase of Players
1.5
19.8
Operations
Operations
Match Day Income
26.3
Central Administration and Overheads
8.6
Commercial Income
7.7
Matchday and Direct Costs
8.4
34.0
Non Football Payroll Costs
7.0
Purchase of Fixed Assets
5.6
Director’s Severance Costs
0.9
Investigation Fees
0.6
31.1
Cash Balance at December 2013
3.5
70.7
70.7

" The Club acquired a number of players in Summer 2013 that, based on financial forecasts, it should have known that it could not afford.

The first team squad has the second highest wage bill in Scottish football for a team currently playing in the third tier. The total player wage cost is well in excess of the level it should be primarily due to generous and poorly structured contracts that were awarded to some players when they joined the Club."

I am not sure that player contracts are at the root of the clubs' problems. They appear to at an acceptable level in terms of turnover according to figures published in the press. They are certainly excessive for playing in the third and fourth tier. However the money has been leaking out in other directions. Some have been lining their pockets including McCoist and possibly past and present directors?

[jacomo]

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Sevco only accepting cash for season tickets.

Dearly me.

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Admitting they have mismanaged again ! Need to raise £30M.

Joke Club

It's a mess. A total shambles. Redundancy notices going out while Sally and plenty others feather their own beds with unaffordable contracts that are pushing the club to the brink.

And apparently they are banking on higher season ticket sales at higher prices to make the whole thing add up, while renewals and credit facilities have been cancelled. Oh dear.

[Dunderhall]

Link to the report below.

http://www.iii.co.uk/research/LSE:RF...ic-plan-update.

§ The Club acquired a number of players in Summer 2013 that, based on financial forecasts, it should have known that it could not afford.

§ The first team squad has the second highest wage bill in Scottish football for a team currently playing in the third tier. The total player wage cost is well in excess of the level it should be primarily due to generous and poorly structured contracts that were awarded to some players when they joined the Club.

who would have thought it?

[Www1875hfc]

http://www.investegate.co.uk/rangers...251100045425F/

[Kaiser1962]

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Thing is, he wouldn't get them for £5.5m the way Green managed it. After all, didn't this lot value Ibrox et al at about £50m?

I recall the assets were re-valued a matter of weeks post admin with the properties value being £43.7m with "intangibles" a further £19.4m.

[ALF TUPPER]

Shambles !

Can zombies come back as zombies ?

[jacomo]

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http://www.investegate.co.uk/rangers...251100045425F/

Thanks for the link. How on earth can you start such a review with:

At the time of the AGM, the Board believed that there was sufficient cash in the business to fund the Club through the current season. However, the Review found that Rangers was in a more severe financial condition.

Does anyone there know what they are doing?

[Weststandwanab]

That was a right good laugh on a Friday afternoon.

[robinp]

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That was a right good laugh on a Friday afternoon.

That makes some pretty damning reading. It's so bad it almost looks made up!

I particularly like this bit:

£2 million was invested in capital purchases that were non essential and have not generated incremental income. In particular the purchase of Stadium Wi-Fi, LED displays and Jumbo Screens used cash that could have been retained to sustain current operations. A further £2.6 million was spent purchasing Albion Car Park and Edmiston House.

That's a big team kind of expenditure item - Jumbotron!!!!!

[CropleyWasGod]

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That makes some pretty damning reading. It's so bad it almost looks made up!

I particularly like this bit:



That's a big team kind of expenditure item - Jumbotron!!!!!

Confused about the Car park.

IIRC that was part of the original job-lot that they got for £5.5m. I know that those assets were sold by the original Sevco on to another company, but..... please don't tell me they bought the car park twice.

[Seveno]

The only thing that is more incredible than the historic analysis is the plan for the next 3 years and the wish list of 'best in class' for just about everything. It reads like a Scottish Govt White Paper.

Who is going to put even more money into that shambolic wreck of a football club.

[Seveno]

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Confused about the Car park.

IIRC that was part of the original job-lot that they got for £5.5m. I know that those assets were sold by the original Sevco on to another company, but..... please don't tell me they bought the car park twice.

I think the only acquired the lease. Someone must have thought it was a good idea to buy the land to increase the total amount of land for future development.

[Bishop Hibee]

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It reads like a Scottish Govt White Paper..

No it doesn't. Lots of NO voters will be greetin about their club going pop though. Magic!

[ALF TUPPER]

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Confused about the Car park.

IIRC that was part of the original job-lot that they got for £5.5m. I know that those assets were sold by the original Sevco on to another company, but..... please don't tell me they bought the car park twice.

I thought that too..... . So good they bought it twice. (Must be a song in there)

[CropleyWasGod]

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I think the only acquired the lease. Someone must have thought it was a good idea to buy the land to increase the total amount of land for future development.

If the former RFC owned the car-park, Sevco 1 would have bought it. Are you saying that Sevco 2 took the lease, and then bought it outright from Sevco 1?

Or did RFC only ever have the lease?

[Nutmegged]

Litterally burst out laughing when SKY Sports News came on and they said Rangers fans can only re-new with cash...all that was missing was the brown paper bag.

Hilarious, love watching them swing from one mess to another.

[Weststandwanab]

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No it doesn't. Lots of NO voters will be greetin about their club going pop though. Magic!

It is a Yes from me.

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Litterally burst out laughing when SKY Sports News came on and they said Rangers fans can only re-new with cash...all that was missing was the brown paper bag.


Hilarious, love watching them swing from one mess to another.

Did S.S.N. say which currency ?

ETMQ

[Moulin Yarns]

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Confused about the Car park.

IIRC that was part of the original job-lot that they got for £5.5m. I know that those assets were sold by the original Sevco on to another company, but..... please don't tell me they bought the car park twice.

Please DO tell me they bought the car park twice, it would be even funnier.

[Just Alf]

Alison Robbie ‏@AlisonRobbie 10m
#Rangers Graham Wallace says "there's a little bit less than £3.5m in the bank today"


Alison Robbie ‏@AlisonRobbie 8m
Graham Wallace says there will be some redundancies among #rangers non playing staff. Says it will be "relatively small number"

Alison Robbie ‏@AlisonRobbie 2m
#Rangers Graham Wallace didn't deny he and the rest of the board will be taking a bonus



hmmmm....

[ALF TUPPER]

Ohhhhhhhhhhhhhhhhhh my sides

[calmac12000]

Aye, its great that the Huns are able to provide such comedic entertainment, that even we can for a minute or to put our own troubles in perspective and have a good laugh.

[GreenLake]

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Alison Robbie ‏@AlisonRobbie 10m
#Rangers Graham Wallace says "there's a little bit less than £3.5m in the bank today"


Alison Robbie ‏@AlisonRobbie 8m
Graham Wallace says there will be some redundancies among #rangers non playing staff. Says it will be "relatively small number"

Alison Robbie ‏@AlisonRobbie 2m
#Rangers Graham Wallace didn't deny he and the rest of the board will be taking a bonus



hmmmm....

Run a business into the ground with a performance indicative of being completely useless as executives then still award yourselves a bonus. Do these guys think they are bankers?

[Col2]

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Run a business into the ground with a performance indicative of being completely useless as executives then still award yourselves a bonus. Do these guys think they are bankers?

Hey, steady in now. Dont kick the innocent bankers. My bonus was well deserved and helps fund my pool house extension.

[patlowe]

This is brilliant: "The Club raised £70.7 million through ticket sales, commercial revenues and share issue proceeds between May 2012 and December 2013, and spent this relatively quickly, and in some areas liberally".

£70m in under two years to get out of the fourth and third tiers of Scottish football. Yep, that's definitely "relatively quickly"!

They really are the gift that keeps on giving.

[CropleyWasGod]

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If Hearts persist with their 'big club' mentality in a lower Division, that is exactly where they are likely to end up.

Much as it would be fun, I really don't see that happening with AB in charge.

[patlowe]

And it took them 120 days to come up with that. I'm pretty sure an intern could've knocked it up in about 2.

[AndyM_1875]

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Much as it would be fun, I really don't see that happening with AB in charge.

It won't as Mrs B has a track record of watching the costs.

Some of the puddle drinkers might find that hard to take as well.

[CropleyWasGod]

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It won't as Mrs B has a track record of watching the costs.

Some of the puddle drinkers might find that hard to take as well.

She'll also be well aware of the fact that it's her money at stake.... unlike the chancers at Ibrox.