Rangers finances 'not the worst' but failure to win promotion 'would be horrendous'..

[ian1964 10,461]

...says football finance chief.

 

DESPITE their well-publicised financial problems, Rangers are not the worst-off club in Scottish football.

 

Yet if the Ibrox side do not gain promotion this season, the consequences of their spending a further year outwith the top flight, "will be pretty horrendous" for the rest of Scottish football, according to the Red Flag Alert Football Distress Report.

 

Published by Begbies Traynor, the business rescue and recovery specialists, it shows a significant upturn in the national game from two years ago, when the comparable document warned that one Scottish club in eight faced financial failure.

 

The report provides annual snapshots of financial distress in 72 English and 32 Scottish clubs. The latest figures reveal just three clubs in the English Championship and Leagues One and Two are in serious financial distress, and just one in Scotland, where the game is "in good overall health".

 

Only one club in Scotland's top three divisions shows signs of critical financial distress, down by two thirds since a year ago, and by 75% since 2012.

 

"Rangers isn't technically the most financially stressed club in Scotland, as a result of the recent cash injection," said Begbies' Ken Pattullo. He declines to name the club concerned, "but there is another club in Scotland which is financially worse off than Rangers".

 

"Rangers don't actually have that much debt at the moment, other than their Sports Direct liabilities. However, the rest of Scottish football has unquestionably suffered financially due to Rangers' absence from the top league. The financial consequences would be pretty horrendous for Rangers if they don't go up this season, and probably also for the rest of Scottish football.

 

"You see the amount of TV money available since Rangers left the SPL. It would be financially very, very difficult for Rangers if they were not to go up. And whatever happens, only two of the big three, if you like, can currently make it out of the Championship. Hearts are up, and whether it is Hibs or Rangers who join them remains to be seen.

 

"How damaging will it be if it's nor Rangers? Very is the short answer. From the point of view of the Scottish game, the sooner Rangers get back into the top league, the better. Hibs' fans might not want to hear this, but that's the unfortunate reality. Scotland is very dependent on Rangers, Celtic, Hearts and Hibs being in the top league. Not having them there is doing nobody any good except the clubs who are there instead.

 

"The future of the Scottish game is very dependent on the financial salvation of Rangers.

 

"It is bound to be financially damaging for whichever team fails to go up, but from a Rangers point of view, they have at least stabilised themselves. Dave King has now bought in, and the previous fans' boycott now seems to have stopped. Would it be a catastrophe if Rangers did not go up? Would it lead them them back into administration? Probably not.

 

"Would it put Hibs into administration if they don't go up? Probably not. Hibs have stabilised their position as well, but if they don't go up it would unquestionably be more damaging to them."

 

Given the astronomical money now available through TV in the English game, with no apparent prospect of approaching that in Scotland, does the game here not face a slow and irreversible decline?

 

"I think that's overly pessimistic," said Pattullo. "The vast sums in England and the reduction in Scotland have coincided, because Rangers are not in the top league. I think when you see Rangers back, whether next season or in two years' time, you will see Sky and other broadcasters offering more money. The unfortunate reality is that for anyone outside Scotland, all they care about is the Rangers v Celtic game. I think decline will be reversed when Rangers are back in the top league."

 

The implosion of Rangers' finances has prompted increased wariness among other big clubs to spend heavily on transfers, he says. "Good business planning in the boardrooms has stabilised what was a really dangerous situation for the sport in Scotland. With the dearth of TV money, clubs have been wisely cutting their cloth accordingly, and largely avoided splashing out on players in the last two or three transfer windows."

 

In England, Financial Fair Play, the fit and proper test of club owners. has been tightened up considerably. Owners are taking action earlier where there are problems, with clubs being offered for sale or investment 'off market' before the business fails.

 

The five percent drop in average attendances across the Scottish Premier, Championship and Leagues One and Two, since last year's report, is due in part to the recent boycott of Rangers matches - a further demonstration of the importance of Rangers. But nobody should delude themselves. The story would be the same were Celtic to have gone down the same road.

 

http://www.heraldscotland.com/sport/football/rangers-finances-not-the-worst-but-failure-to-win-promotion-would-be-horrendous-says-.121514838

[Laudbertz 0]

They're worse off because their hatred of our club outweighed their envisaging what the SPL would be like without Rangers. Not that they'll ever admit it.

Edited March 24, 2015 by Laudbertz

[limeburner 0]

We have had three years of this now,we will cope whatever happens.

The rest?Feck them, I couldnt care less.

I wont give any of them another penny, ever.

[pete 2,499]

Is it not Kilmarnock that were in dire straits?

[limeburner 0]

Kilmarnock are my local team Pete.

Trust me, they hate Rangers with a passion.

if they are in trouble ive no sympathy.

[pete 2,499]

This was from 2013 but they owed almost 10mill and Rugby park was estimated to be worth 11mill. They do seem to have their wages at an accepted limit but still quite high.

 

 

Slim profit for Kilmarnock

Submitted by WG on Tue, 08/01/2013 - 08:37

 

Kilmarnock made a trading profit of £11,384 for the year ended 31 May 2012, down £186,597 from the previous year. In the present state of Scottish football, any surplus reflects credit on the club concerned.

 

Kilmarnock's net debt rose by £83,000 to £9.84m. This is less than the value of Rugby Park at £11.3m. Turnover went up by £300,000 to £7.4m. Player and staff costs were just over £3.5m, a figure that has been stable for four years. This is less than 50 per cent of turnover, a recommended target that few clubs achieve.

[Gribz 743]

The top league cant even get a sponsor. If Rangers do go up then a slight cash injection will go into the fat cats pockets with a new sponsor.

 

However if they listened to the fans and didn't kick Rangers when down things wouldn't be so bad. A top division of 16 or 18 would have had all 3 from Hearts, Hibs and Rangers in the top tier next season yet now one from Hibs and Rangers will be playing Championship football next season.

 

I go back to the SFL given into the SPL takeover (not merger), the SFL held the trump card in Rangers and had they stood strong they would have had it all this season with the Edinburgh clubs joining. That would have set up the lower tiers for years in addition to the gate money these teams received from Rangers.

 

If the SPFL had an ounce of common sense they would restructure the top tier and have either 2 or 3 tiers in total. They would then switch the calendar to Summer Football. Not only would the games be better due to weather and playing surfaces there might be a bit more interest from England as they would want to watch an OF game in June when there is no Premier League therefore a SKY deal would probably be higher.

[Bluedell 5,356]

Kilmarnock are my local team Pete.

Trust me, they hate Rangers with a passion.

if they are in trouble ive no sympathy.

 

Were they not the ones that abstained on a vote when everyone else voted against us? I'd say they were one of the clubs who don't hate us.

[Tannochsidebear 2,322]

Interesting that Patullo refuses to discuss the club about to go bust but is quite happy to discuss Rangers, quite clearly knowing nothing of where we stand at the moment as a club.

 

Surely the story here is that a senior scottish club is about to go to the wall. Take your pick between st mirren and Kilmarnock IMO.

[limeburner 0]

They hate us.With a passion, previously unbeknown to man.

I live the life with them,most of them are friends.

However, when it comes to fitba,well enough said.