Rangers have to keep an eye on their spending or face financial woe again

[rbr 1,247]

We will bring in extra finance from the Ramsden cup , league cup and Scottish cups as they aren't on the season tickets , or at least I don't think they are

[the gunslinger 3,366]

I would imagine we're making at least 12m from ticket sales alone, then another 1m from catering and 3m from merchandising - and that's just conservative guesses. Corporate packages must bring in another 2m and advertising/sponsorship, at least 5m. Then there's plenty of other revenue streams like the car parking, programmes, overseas streams, Rangers TV and you're looking at a conservative 25m turnover, down from 40-60m.

 

With wages of 7m that's a pretty low wage ratio, which even with the high costs of running Ibrox and police/security etc should still see a good possibility of us breaking even at some point.

 

If we're making a loss, how are all the Championship clubs surviving? In fact, how are the SPL surviving with half our wage bill but about a quarter of the income?

 

our overall wage bill will be 10-20 times the spl clubs.

[forlanssister 3,061]

I would imagine we're making at least 12m from ticket sales alone, then another 1m from catering and 3m from merchandising - and that's just conservative guesses. Corporate packages must bring in another 2m and advertising/sponsorship, at least 5m. Then there's plenty of other revenue streams like the car parking, programmes, overseas streams, Rangers TV and you're looking at a conservative 25m turnover, down from 40-60m.

 

With wages of 7m that's a pretty low wage ratio, which even with the high costs of running Ibrox and police/security etc should still see a good possibility of us breaking even at some point.

 

If we're making a loss, how are all the Championship clubs surviving? In fact, how are the SPL surviving with half our wage bill but about a quarter of the income?

 

Take VAT off the ticket sales, pay Close Brothers the lease fee for the catering money they hold security over, while merchandising might raise £3m this coming season it'll have made nowhere near that last season. Corporate hospitality income was decimated last season for example the Ibrox Suite was closed the whole season apart when 2 RSC's hired it it was only opened a handful of times for wheelchair users and it would have been very lucky to break even on those occasions . Advertising and sponsorship would have been well short of £5m as we couldn't even sell the prime spots in front of Bar 72. Most of the car park income is already counted in with the hospitality plus there are the freebies wheelchair fans, journalists et al which all adds up, I doubt income from streaming the games or Rangers TV would be anywhere near cash positive at present.

 

We are paying the price for Green's complete lack of anything remotely looking like a business plan and one of the first places we should be looking at to cut costs is the utterly ridiculous level of remuneration within the board room. The prospectus virtually told us that we would need to be recapitalised 18 months after the IPO. We have a long way to go before we have cut our cloth accordingly and whether we like it or not it may well get painfull. Let's just hope those holding power in the boardroom put their squabbles to the side and put the long term health of the club above all else.

[stewarty 1,878]

FS- I think calscot was presenting an opposing argument rather than suggesting the figures were concrete. Just my reading though.

 

The accounts will be due in a month or two, so we should get some clarity then.

[Super Cooper 0]

PS It looks like an even more stupid article when you consider that Rangers are a huge club who average 45k fans, had such a small squad and are now signing players for FREE, and will have one of the lowest wage to turnover ratios in professional football. Oh my god, how galling...

 

Do you have any idea what our projected turnover will be this year? Or what our final wage bill will be come Sep 1st?

[Super Cooper 0]

We will bring in extra finance from the Ramsden cup , league cup and Scottish cups as they aren't on the season tickets , or at least I don't think they are

 

With one round? Let's hope it is a home match!

[der Berliner 3,302]

Do you have any idea what our projected turnover will be this year? Or what our final wage bill will be come Sep 1st?

 

Probably as much as those projecting impending doom because of squad numbers?

 

With one round? Let's hope it is a home match!

 

A font of optimism are we today, are we not?

[calscot 0]

FS- I think calscot was presenting an opposing argument rather than suggesting the figures were concrete. Just my reading though.

 

The accounts will be due in a month or two, so we should get some clarity then.

 

Yeah, I was just making it up with what sounded like reasonable amounts which didn't seem out of place when you consider our previous 40+m turnover without European money.

 

I forgot about VAT which reduces ticket income by a sixth but isn't it still part of the income figure before tax? I don't see how the catering and hospitality income would be reduced to nothing when we were being ripped off before by SDM and still made over a million a year. Are people eating a lot less?

 

As for the other stuff, I don't have much of a clue but if we were making 40+m with only something 60% more income from tickets, then we were making over 20m from non-ticket income. I'd be surprised if that's dropped below 40%.

 

We used to make about 5m a year from merchandise and even make that with JJB if you include the up front payment so even if we didn't make that last year, the topic is about ongoing financing and I did say we were suffering from a hangover of the change of ownership for last year and probably this year.

 

Until I'm disabused of my naivety with real figures, I'll struggle to believe a club like ours has a turnover of less than 20m.

 

We may not be making a profit but I can't see how we shouldn't be able to afford a proportional wage bill that is much higher than any SPL club bar Celtic. Usually you also get economy of scale, not a premium. You'd think that with four times the fans through the gate we'd have more than four times the available cash - minus the TV and sponsorship money for the SPL clubs.

[Super Cooper 0]

Probably as much as those projecting impending doom because of squad numbers?

 

I think the impending doom is more obvious.

 

A font of optimism are we today, are we not?

 

I don't speak Yoda, is that 2 questions?

[der Berliner 3,302]

... and lest we forget, while we had old ones too, we have a brand new Puma deal (which will hit the shelfs soon) and our own shirt sponsors too. Would be interesting to see the figures attached.