Green plans Rangers wage cap

[kuznetsov 0]

33% of turnover might be quite a lot of wages, depending on turnover of course.

 

I read on another thread Bayern Munich's ST prices are £96. Anyone know what percentage of wages to turnover their players get?

 

They must be getting in a helluva lot of sponsorship money.

 

our best recorded turnover i am sure was about 64m, the year we went to the uefa final, in a year with no european football, in the spl, it was just shy of 40 million. we just about competed with celtic with our wage bill of almost 30 million, there is no way we could do it with less than half of that.

 

bayerns turnover will likely be well over 100 million, der berliner will be able to tell us why tickets are so cheap, it may have something to do with tv money, sponsorships and everything else the clubs can rake in. imagine how more powerful german clubs would be if they charged british prices for tickets?

[kuznetsov 0]

Even if the wage cap is 33% of our turnover that's still almost certainly greater than 100% of the turnover of all the SPL clubs bar one. So talk of relegation is a bit panicked. Financial fair play regulations are going to have to be adopted by all clubs so caps are going to become the norm.

 

And I doubt Green is daft enough to run the club in a way that it can't compete for the title. That would clearly end up being less profitable as attendances would fall.

 

not with our management team. caps will never become the norm in football, never.

 

i think this just rubbish about guarantees we wont be challenging for the title when we get back. attendances will fall, then the ball is back in greens court.

[kuznetsov 0]

So, your suggestion is go mad with the wages, and get in a load of top notch international players??? Why don't we just throw in a couple of tax avoidance schemes as well - that should increase the calibre of player we can get. The future's looking brighter already.

 

Oh Oh...stop the bus.....we've already tried that. Trophy count = Good.....massive debt & liquidation = bad.

 

no, who said that? lol my suggestion is we must do better than we have in the last decade off the park. we must be more clever. we must work harder and we must find better value for money. that doesnt mean we need a cap or that we should go daft. that is just silly.

 

maybe you dont mind playing second fiddle in this backwater country, i do and many more do too i am sure.

[54andcounting 0]

not with our management team. caps will never become the norm in football, never.

 

They'll be soiling their tracksuits, choking on their gum and dropping their clipboards on that news.

[simplythebest 0]

Management teams can change.

[kuznetsov 0]

Management teams can change.

 

there is no appetite for change at rangers.

[Gribz 743]

A club not in debt...sounds rather sensible to me. A wage cap will probably come into play for all teams eventually. Ok so Man City will be able to cap it higher than most but with financial fair play kicking in they might have to tighten things up rapidly next season. These new rules is what I think is keeping Wenger in a job at Arsenal.

 

Anyway it will probably be on basic wage only, players can still make nice add-ons in bonuses and signing on fees. If we are still plying our trade in Scotland then this cap is a must! If we eventually get an Atlantic league or move down south due to the SPL surviving as it stands then the cap increases.

[the gunslinger 3,366]

I've never known many Rangers fans who seem to remember anything that happened five month ago ... unless it is negative. *tongue in cheek, btw*

 

As for the earlier comments of you with regards to dividends et al ... you would think it was not me but you who was brought up in a socialist country? Obviously, the way you present it paints it black'er than it actually is or will be ... but a broadside at the beginning is always a good start for a heated debate, right?.

 

as I say good luck to green with this its all well and good but if we aren't winning leagues the fans will not wear it.

 

if we are it makes perfect sense. a dividend would never be acceptable though. do you know that between 4 and 6p of ever pound celtc fans put into celtc goes back out to fat cats like Desmond and lawell in dividends. I have no idea why they accept that.

[ian1964 10,474]

Rangers' owners are planning to impose a strict wage cap and sharply increase season ticket prices as a key part of their share offering.

 

Documents seen by STV's Scotland Tonight programme show that the consortium behind Rangers wants to restrict wages to 33% of turnover, barely half the average ratio for SPL clubs.

 

The owners also plan to increase season ticket prices by 20% in 2014 followed by a further 15% hike the following year as the club is expected to climb up through the divisions.

 

Notes from broker Cenkos Securities, seen by STV ahead of the stock market flotation of The Rangers Football Club Ltd next month, reveal the season ticket prices would return to similar levels as last season, prior to the financial collapse of the oldco.

 

Cenkos’s projections state that although the company will run at a £3.5m operating loss in 2013, it could bring in an operating profit of £10.9m in 2015. Rangers chief executive Charles Green has endorsed the pre-initial public offering notes made by the brokers.

 

Mr Green told STV that he expected the club to be worth at least £60m in two years' time, which would represent a tenfold return on his original £5.5m investment in June this year.

 

"When you look at Rangers where it sits today, to have a valuation of around £30m, there's no reason why within a couple of years we haven't doubled that valuation at least," he said.

 

The severe constraints would put top European players beyond Rangers' reach, but the brokers believe that fiscal discipline will give the club a long-term advantage over "irrational competitors".

 

The projections by Cenkos claim that the value of shares in the newco club could “more than double in three years”, an assessment described as realistic by football finance expert Neil Patey.

 

Mr Patey, of Ernst & Young, said: "I think it's realistic to say Rangers could be a comparable value to Celtic in two or three years' time when they're back in the SPL."

 

According to Cenkos, Rangers directors are committed to a maximum ratio of players' wages to turnover of 33%, which is almost half of the 2010 Scottish Premier League average ratio of 61%, while English Premier League clubs sit at a current wage-to-turnover ratio average of 70%.

 

The notes state that in 2013 the first team payroll is to constitute 26% of all revenues with it currently sitting at around £7.5m, which will reduce to 18% of all revenues in the next two years as Cenkos predicts turnover to hit £46.5m by 2015.

 

Cenkos states that it “believe that this will be achievable with our growth revenue forecast and the current level of players wages being paid gives significant room for manoeuvre.”

 

The brokers also believe that the policy would be in line with UEFA’s financial fair play regulations, which stipulate that wage-to-turnover ratio should not be higher than 60%.

 

Cenkos states: “We suggest that investors should take comfort from UEFA’s reforms which are designed to end financial instability within football clubs.

 

"We believe the high level of player wage inflation and transfer fees driven by irrational competitors will be significantly reduced and, as one of the 20 best supported teams in Europe, the requirement for clubs to live within their means should work towards Rangers’ competitive advantage.”

 

Comparisons in the document are made to Celtic and Manchester United’s share market flotations as successes, with the brokers stating: “In our view the old notion that revenues from television are the only driver of value for football clubs has proven to be incorrect and it is the potential for selling branded product on a global, multi-channel, basis that has resulted in the value of the leading football clubs appreciating significantly in the past decade.”

 

The forecast is based on several assumptions set out in the document, including the season ticket price increase, as well as a £1.5m reduction in unspecified overheads.

 

According to Cenkos, non-matchday cash, including the £3m-a-year retail deal with Sports Direct, will bring in £17.5m in 2012-13 financial year, out-weighing matchday revenue of £13.5m. For the 2012/13 Third Division season, Rangers raised £8m through selling 36,000 Ibrox season tickets this year and £1m from corporate hospitality sales, according to the document.

 

The consortium led by Mr Green purchased the club’s assets from oldco Rangers, now RFC 2012 Ltd, in a £5.5m deal in June after administrators Duff and Phelps failed to maintain it as a going concern.

 

Mr Green and his group are aiming to raise around £20m through the initial public offering, with payments scheduled to be processed on the scheme by December 17.

 

Directors of the club are currently involved in road shows pitching the flotation to fans groups and possible investors across the UK.

 

In 2000, under Sir David Murray, oldco Rangers, now RFC 2012 plc, was floated on the stock market with the aim of raising £53.1m to pay off some of their debts. This resulted in £38m of investment, £32.3m of which was from Sir David's Murray Sports Ltd and the remaining £6m from around 3500 small shareholders.

 

Four years later Sir David oversaw another share issue which aimed to raised £57m for Rangers. It brought in £51m, only £1m of which was from the fans - the rest being underwritten by the Murray MHL Limited, one of the owner's companies.

 

This came after the Rangers Bond scheme in 1991, which saw 6700 fans raise £8.5m through buying debentures to construct the Club Deck at Ibrox Stadium. When Rangers went into administration, those who bought into the scheme became creditors.

 

http://sport.stv.tv/football/200640-...o-revive-club/

[Gribz 743]

Documents seen by STV's Scotland Tonight programme show that the consortium behind Rangers wants to restrict wages to 33% of turnover, barely half the average ratio for SPL clubs.

 

33% of our turnover is a higher figure of 66% of St Mirren / St Johnstones turnover.

 

If turnover increases our wage cap could still be quite a high amount.

 

Season ticket prices were dropped this season so when we get back to the top flight its natural ST would go up.