buster. 4,808 Posted October 12, 2014 Share Posted October 12, 2014 (edited) Ashely is already wired into the commercial side of Rangers and has an almost embarrassing list of what some may call 'onerous contracts' and prospective or options for more. Let's go down South to the North of England and see if we can get a handle on his MO regards the commercial revenue at a football club where he has control. In the three years prior to Ashley taking over, have a look at how much of the 'revenue pie' that commercial income contributed to overall Newcastle Utd. turnover. (guide re. revenue tables below) MD: Matchday BR: Broadcasting CR: Commercial %CR/T: % CR of Turnover Figures are Pounds Sterling / Millions Pre Ashely .....................Turnover........MD........BR. ...........CR...............%CR/T 2004/05.............87.1..........35.3......27.9....... ..23.9.........(27%) 2005/06.............85.9..........31.5......26.5....... ..27.9.........(32%) 2006/07.............87.1..........33.6......25.9....... ..27.6.........(32%) Now have a look at some more recent figures with the Ashely/Sports Direct influence. .....................Turnover........MD........BR. ...........CR...............%CR/T 2011/12............93.3...........23.9......55.6....... ..13.8.........(15%) Brief Conclusion The Ashely MO regards football clubs would seem to mean that of the commercial revenue generated, a large percentage (around 50% in the case of NUFC) goes elsewhere, probably Sports Direct. The problem with doing similar (or worse) at Rangers is that the broadcasting revenue is miniscule in comparison and the MO isn't viable. Thoughts ? Link from where I got some of the info....Interesting article from November 2013. 'Newcastle United Financial Accounts – Where Has The Money Gone Under Mike Ashley?' http://www.themag.co.uk/tyne-talk/ggg/ Edited October 12, 2014 by buster. 0 Quote Link to post Share on other sites More sharing options...
Stimpy 0 Posted October 12, 2014 Share Posted October 12, 2014 Read the article and look at the Spurs comparison. Both similar sized clubs with successful owners but only one club has progressed in terms generating income. Ashley runs a tight ship in terms of spending which is no bad thing from our perspective, but Ashley also takes and downsizes the operation whilst he appears to get richer. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted October 12, 2014 Share Posted October 12, 2014 It's certainly a worrying situation regarding the merchandise and retail income because before administration the JJB deal was apparently providing a decent amount of income each season. It was somewhere in the region of £3m per season was it not? Now though, it seems completely uncertain how much income the Club is going to receive each season from retail & merchandise. 0 Quote Link to post Share on other sites More sharing options...
buster. 4,808 Posted October 12, 2014 Author Share Posted October 12, 2014 (edited) Read the article and look at the Spurs comparison. Both similar sized clubs with successful owners but only one club has progressed in terms generating income. Ashley runs a tight ship in terms of spending which is no bad thing from our perspective, but Ashley also takes and downsizes the operation whilst he appears to get richer. Bottomline - Ashely is involved with football clubs to extract value. - His MO is crude but complex and prioritises SD over the football club. - He'll slash business costs so as to make possible his 'take' from the commercial revenue whilst trying to ensure near 'minimum services' to keep (gravy)train on the track. Edited October 12, 2014 by buster. 0 Quote Link to post Share on other sites More sharing options...
buster. 4,808 Posted October 12, 2014 Author Share Posted October 12, 2014 It's certainly a worrying situation regarding the merchandise and retail income because before administration the JJB deal was apparently providing a decent amount of income each season. It was somewhere in the region of £3m per season was it not? Now though, it seems completely uncertain how much income the Club is going to receive each season from retail & merchandise. The JJB deal also included a large frontloaded payment. Regards the "uncertainty", you can add a lack of control due to SportsDirect calling the shots on financial matters over Rangers Retail in the joint venture. 0 Quote Link to post Share on other sites More sharing options...
Super Cooper 0 Posted October 12, 2014 Share Posted October 12, 2014 It's certainly a worrying situation regarding the merchandise and retail income because before administration the JJB deal was apparently providing a decent amount of income each season. It was somewhere in the region of £3m per season was it not? Now though, it seems completely uncertain how much income the Club is going to receive each season from retail & merchandise. £3m clear guaranteed every year. By comparison, Celtic make just over £4m profit from merchandise. Since we became newco how much have we brought in from the 3/4/5/6 new kit launches and all the other merchandise? I bet it's nowhere near the £9m we would be sitting with pre newco. 0 Quote Link to post Share on other sites More sharing options...
jhunter 0 Posted October 12, 2014 Share Posted October 12, 2014 I think murray got £18M up front for the deal , which was supposed to be averaged over the 10 year deal at £1.8M a year so in total we would have been making £4.8M a year IIRC. Now we get pennies in the pound that SD pay at their whim. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted October 12, 2014 Share Posted October 12, 2014 £3m clear guaranteed every year. By comparison, Celtic make just over £4m profit from merchandise. Since we became newco how much have we brought in from the 3/4/5/6 new kit launches and all the other merchandise? I bet it's nowhere near the £9m we would be sitting with pre newco. 3 million a year and 18 million up front for ten years. So really 4.8 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted October 12, 2014 Share Posted October 12, 2014 The JJB deal also included a large frontloaded payment. Regards the "uncertainty", you can add a lack of control due to SportsDirect calling the shots on financial matters over Rangers Retail in the joint venture. Yep, no doubt about it, the situation left in the wake of Charles Green & co is seriously worrying. If we DO end up getting good retail payments/income from SportsDirect, then fair enough, but the way things are shaping up it's looking like Rangers are getting robbed blind.... AGAIN!! 0 Quote Link to post Share on other sites More sharing options...
Super Cooper 0 Posted October 12, 2014 Share Posted October 12, 2014 3 million a year and 18 million up front for ten years. So really 4.8 Murray was under sever pressure at the time. He got dogs abuse for selling off our shops and sacking so many staff. The Glasgow club will receive an initial payment of £18m on 7 June, when they launch their new Umbro home kit. A guaranteed minimum annual royalty of £3m will be received by Rangers in each year of the licence. Rangers chairman David Murray said: "It will allow for the reduction of the club's debt and enable further investment to be made in the team." 0 Quote Link to post Share on other sites More sharing options...
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