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Rangers cutting debt in a big way and a gap opening opening between us & Celtic?


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CRISIS COULD PUT GERS IN CELTIC'S SHADOW FOR 10 YEARS

A CRACK team of debt-busting bankers has been put together to claw back millions from crisis club Rangers.

The Ibrox giant’s finances have suffered like all businesses in the credit crunch — causing some of the loans bolstering the club to be put under the microscope.

Now cash-strapped Bank of Scotland bosses have hand-picked a posse of ‘asset hounds’ to examine how the club can pay back much of its debt.

Experts believe the bank could demand repayments of £20MILLION over the next few years — taking the Rangers debt down to around £5million.

Light Blues chairman Sir David Murray has already slashed 12 stadium jobs and ordered manager Walter Smith to axe eight stars in the summer.

But last night there were warnings that more cuts could see Rangers facing a DECADE living in Celtic’s shadow.

A Bank of Scotland insider revealed: “The debt has been deemed too big and it was felt the time had come to start clawing back some of the cash.

“The credit crunch means there’s no such thing as easy money any more — we cannot keep loaning companies big money against assets that leave us exposed.

“We don’t want Rangers to suffer on or off the pitch so we’ve pulled together some of our best brains to make sure that the club comes down as gently as possible.

“But the current situation cannot possibly continue. Ultimately, this is big business and, I’m afraid, sometimes it hurts.”

As Rangers face Celtic at Hampden today in the Co-operative Insurance Cup Final, Stephen Morrow, Professor of Sports Studies at Stirling University, warned fans that the bank’s crackdown could see their club “in the wilderness” for the next ten years.

He said: “This will make it even more challenging for a club like Rangers to compete. In some ways, Celtic’s financial basis is different — they’ve been run in a different way which has left them less exposed.

“If Rangers have to pay back, say, £15-£20million over the next few years, there’s a risk of a big gap opening up between them and Celtic.”

It is believed the specialist lending team of bankers will study the club’s estimated £25million debt before making a string of recommendations to claw back some of the club’s loans.

The options would include selling off assets — such as players — trimming overheads, selling other assets or attracting more investment.

Professor Morrow added: “What you’ve got with a mature business like Rangers is that the business has developed — there’s only a fixed number of games they can play, they’re playing those games to capacity crowds and there’s a TV deal which is not going to get any better.

“Once you’ve brought players’ wages under control then that’s it, there aren’t many more ways to lever huge sums of money into the club.

“Unless someone comes along and gives you the cash, the only other way is to sell some of your assets and that means players.”

Rangers’ finances are tied into chairman Sir David Murray’s complex web of companies, Murray International Holdings — of which the bank owns around 10 per cent.

UNDER THREAT: Kris Boyd

Sir David gained control of the Ibrox club in 1988 after buying the majority of its shares for £6million.

As chairman, the businessman ploughed cash into the club, building a third tier on the main stand and raising the ground’s capacity by 7,300.

Murray’s costly European ambitions for the side, under Dick Advocaat’s management, saw them spend millions. But the club’s debts spiralled as TV revenues failed to make a dent on mammoth transfer fees and players’ salaries.

By 2001, mounting debts threatened the club’s future and Murray admitted mistakes were made.

He said at the time: “We got it wrong. We obviously spent far too much money. We can’t let it happen again because that would be total mismanagement.”

In July 2002, Murray stood down as chairman but returned two years later in a bid to reduce the Rangers debt mountain.

He organised the sale of a new batch of shares which raised £50million to start paying off the bank and, by 2006, the total owed had dropped from nearly £74million to only £5.8million. Since then, the debt has started to rise again at an alarming rate — despite Rangers’ run to the 2008 UEFA Cup Final.

Last year it stood at £21.6million but is believed to have reached around £30million before the bank stepped in.

Half-yearly figures released in January show the club’s turnover is 50 per cent lower than 2006.

And they are facing a 71 per cent jump in interest payments to nearly £8,000 a DAY.

The credit crunch has hit the club hard as Murray International Holdings’ huge commercial property assets have plummeted in value.

Last night insolvency expert John Shields said: “Murray International Holdings is built on steel, property and football.

“The bottom has fallen out of the market for steel and property, so the football cannot carry on being a loss-making luxury. The Bank of Scotland has specialist lending teams whose job it is to protect the bank’s money. Those men in grey suits will be looking very closely at the Rangers balance sheet and may suggest pruning the Ibrox staff.

UNDER THREAT: Barry Ferguson

“The team will probably be three-strong and they’ll spend up to six months poring over Rangers’ accounts and working with the club to identify where the savings are.

“They should have a strategy in place for when the transfer window opens at the end of the season and then guide the club through until it closes at the end of August.

“We’re in a recession so season ticket revenue could fall, corporate hospitality has been cut, the Murray Park Academy hasn’t delivered enough young players. The only way to raise revenue short-term is to sell players.

“Usually, the fact that the club has a wealthy parent company would be enough to satisfy the banks.

“But Murray International Holdings has taken a hit as well so Rangers is more exposed than it would normally be.

“David Murray is a realist — he is trying to bring a sound business structure to the club which is essential for it to survive but if the bank is now restructuring the debt then there may be even deeper cuts on the way.

“I think the fans need to rally round the chairman at this time, not barrack him for putting his neck on the line.”

Sir David recently admitted Rangers had lurched deeper into the red, losing nearly £4million between June and December 2008, with £1.4million paying off interest alone.

An early exit from European football at the hands of Lithuanian minnows Kaunas in the second qualifying stage of the Champions League this season cost the club around £13million in potential revenue. During January’s transfer window, Murray sanctioned the sale of star striker Kris Boyd for £3.8million in a bid to rake in cash.

UNDER THREAT: Allan McGregor

Boyd, 25, was on the verge of a move to Birmingham City but a row over his £20,000- a-week wages saw the deal fall through. Goalie Allan McGregor and captain Barry Ferguson, on salaries of £25,000 and £30,000 a week, were linked to a lucrative Newcastle United move which also fell through.

Walter Smith’s squad is to be trimmed to only 20 in the summer after failing to offload Boyd in January.

But Murray has insisted that long-term loans were keeping the club stable, saying: “What I’m doing is not panicking. We have a financial facility with the bank and we must work within that framework.”

Now that strategy has been thrown into uncertainty and earlier this month, Rangers admitted a dozen backroom staff would lose their jobs. John Macmillan, general secretary of the Rangers Supporters’ Association said: “It’s a pretty bleak picture — the fans won’t take kindly to this.

“Most really don’t care about who owes what to whom, so we may see a split between the club and the fans over the next few years.

“But the club must recognise that it’s not the fans’ fault that Rangers are in such a mess — there’s been mismanagement and unwise signing policies which continue to this day.

“The way through this crisis is to put bums on seats, not to penalise the fans. The club should look at lowering prices and even letting in kids for free.”

Bank of Scotland has recently been bought out by Lloyds Banking Group after racking up losses of £10.8billion as part of HBOS. Both the bank and the club refused to comment

http://www.newsoftheworld.co.uk/scottish/s...vid-Murray.html

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By Lorna Smith and Mark Howarth, 14/03/2009

A CRACK team of debt-busting bankers has been put together to claw back millions from crisis club Rangers.

The Ibrox giant’s finances have suffered like all businesses in the credit crunch — causing some of the loans bolstering the club to be put under the microscope.

Now cash-strapped Bank of Scotland bosses have hand-picked a posse of ‘asset hounds’ to examine how the club can pay back much of its debt.

Experts believe the bank could demand repayments of £20MILLION over the next few years — taking the Rangers debt down to around £5million.

Light Blues chairman Sir David Murray has already slashed 12 stadium jobs and ordered manager Walter Smith to axe eight stars in the summer.

But last night there were warnings that more cuts could see Rangers facing a DECADE living in Celtic’s shadow.

A Bank of Scotland insider revealed: “The debt has been deemed too big and it was felt the time had come to start clawing back some of the cash.

“The credit crunch means there’s no such thing as easy money any more — we cannot keep loaning companies big money against assets that leave us exposed.

“We don’t want Rangers to suffer on or off the pitch so we’ve pulled together some of our best brains to make sure that the club comes down as gently as possible.

“But the current situation cannot possibly continue. Ultimately, this is big business and, I’m afraid, sometimes it hurts.”

As Rangers face Celtic at Hampden today in the Co-operative Insurance Cup Final, Stephen Morrow, Professor of Sports Studies at Stirling University, warned fans that the bank’s crackdown could see their club “in the wilderness” for the next ten years.

He said: “This will make it even more challenging for a club like Rangers to compete. In some ways, Celtic’s financial basis is different — they’ve been run in a different way which has left them less exposed.

“If Rangers have to pay back, say, £15-£20million over the next few years, there’s a risk of a big gap opening up between them and Celtic.”

It is believed the specialist lending team of bankers will study the club’s estimated £25million debt before making a string of recommendations to claw back some of the club’s loans.

The options would include selling off assets — such as players — trimming overheads, selling other assets or attracting more investment.

Professor Morrow added: “What you’ve got with a mature business like Rangers is that the business has developed — there’s only a fixed number of games they can play, they’re playing those games to capacity crowds and there’s a TV deal which is not going to get any better.

“Once you’ve brought players’ wages under control then that’s it, there aren’t many more ways to lever huge sums of money into the club.

“Unless someone comes along and gives you the cash, the only other way is to sell some of your assets and that means players.”

Rangers’ finances are tied into chairman Sir David Murray’s complex web of companies, Murray International Holdings — of which the bank owns around 10 per cent.

UNDER THREAT: Kris Boyd

Sir David gained control of the Ibrox club in 1988 after buying the majority of its shares for £6million.

As chairman, the businessman ploughed cash into the club, building a third tier on the main stand and raising the ground’s capacity by 7,300.

Murray’s costly European ambitions for the side, under Dick Advocaat’s management, saw them spend millions. But the club’s debts spiralled as TV revenues failed to make a dent on mammoth transfer fees and players’ salaries.

By 2001, mounting debts threatened the club’s future and Murray admitted mistakes were made.

He said at the time: “We got it wrong. We obviously spent far too much money. We can’t let it happen again because that would be total mismanagement.”

In July 2002, Murray stood down as chairman but returned two years later in a bid to reduce the Rangers debt mountain.

He organised the sale of a new batch of shares which raised £50million to start paying off the bank and, by 2006, the total owed had dropped from nearly £74million to only £5.8million. Since then, the debt has started to rise again at an alarming rate — despite Rangers’ run to the 2008 UEFA Cup Final.

Last year it stood at £21.6million but is believed to have reached around £30million before the bank stepped in.

Half-yearly figures released in January show the club’s turnover is 50 per cent lower than 2006.

And they are facing a 71 per cent jump in interest payments to nearly £8,000 a DAY.

The credit crunch has hit the club hard as Murray International Holdings’ huge commercial property assets have plummeted in value.

Last night insolvency expert John Shields said: “Murray International Holdings is built on steel, property and football.

“The bottom has fallen out of the market for steel and property, so the football cannot carry on being a loss-making luxury. The Bank of Scotland has specialist lending teams whose job it is to protect the bank’s money. Those men in grey suits will be looking very closely at the Rangers balance sheet and may suggest pruning the Ibrox staff.

“The team will probably be three-strong and they’ll spend up to six months poring over Rangers’ accounts and working with the club to identify where the savings are.

“They should have a strategy in place for when the transfer window opens at the end of the season and then guide the club through until it closes at the end of August.

“We’re in a recession so season ticket revenue could fall, corporate hospitality has been cut, the Murray Park Academy hasn’t delivered enough young players. The only way to raise revenue short-term is to sell players.

“Usually, the fact that the club has a wealthy parent company would be enough to satisfy the banks.

“But Murray International Holdings has taken a hit as well so Rangers is more exposed than it would normally be.

“David Murray is a realist — he is trying to bring a sound business structure to the club which is essential for it to survive but if the bank is now restructuring the debt then there may be even deeper cuts on the way.

“I think the fans need to rally round the chairman at this time, not barrack him for putting his neck on the line.”

Sir David recently admitted Rangers had lurched deeper into the red, losing nearly £4million between June and December 2008, with £1.4million paying off interest alone.

An early exit from European football at the hands of Lithuanian minnows Kaunas in the second qualifying stage of the Champions League this season cost the club around £13million in potential revenue. During January’s transfer window, Murray sanctioned the sale of star striker Kris Boyd for £3.8million in a bid to rake in cash.

Boyd, 25, was on the verge of a move to Birmingham City but a row over his £20,000- a-week wages saw the deal fall through. Goalie Allan McGregor and captain Barry Ferguson, on salaries of £25,000 and £30,000 a week, were linked to a lucrative Newcastle United move which also fell through.

Walter Smith’s squad is to be trimmed to only 20 in the summer after failing to offload Boyd in January.

But Murray has insisted that long-term loans were keeping the club stable, saying: “What I’m doing is not panicking. We have a financial facility with the bank and we must work within that framework.”

Now that strategy has been thrown into uncertainty and earlier this month, Rangers admitted a dozen backroom staff would lose their jobs. John Macmillan, general secretary of the Rangers Supporters’ Association said: “It’s a pretty bleak picture — the fans won’t take kindly to this.

“Most really don’t care about who owes what to whom, so we may see a split between the club and the fans over the next few years.

“But the club must recognise that it’s not the fans’ fault that Rangers are in such a mess — there’s been mismanagement and unwise signing policies which continue to this day.

“The way through this crisis is to put bums on seats, not to penalise the fans. The club should look at lowering prices and even letting in kids for free.”

Bank of Scotland has recently been bought out by Lloyds Banking Group after racking up losses of £10.8billion as part of HBOS. Both the bank and the club refused to comment.

http://www.newsoftheworld.co.uk/scottish/s...vid-Murray.html

Not an absolute new news story admittedly but a bit more depth but also maybe a story to scare us on a day of a Final.

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By Lorna Smith and Mark Howarth, 14/03/2009

A CRACK team of debt-busting bankers has been put together to claw back millions from crisis club Rangers.

The Ibrox giant’s finances have suffered like all businesses in the credit crunch — causing some of the loans bolstering the club to be put under the microscope.

Now cash-strapped Bank of Scotland bosses have hand-picked a posse of ‘asset hounds’ to examine how the club can pay back much of its debt.

Experts believe the bank could demand repayments of £20MILLION over the next few years — taking the Rangers debt down to around £5million.

Light Blues chairman Sir David Murray has already slashed 12 stadium jobs and ordered manager Walter Smith to axe eight stars in the summer.

But last night there were warnings that more cuts could see Rangers facing a DECADE living in Celtic’s shadow.

A Bank of Scotland insider revealed: “The debt has been deemed too big and it was felt the time had come to start clawing back some of the cash.

“The credit crunch means there’s no such thing as easy money any more — we cannot keep loaning companies big money against assets that leave us exposed.

“We don’t want Rangers to suffer on or off the pitch so we’ve pulled together some of our best brains to make sure that the club comes down as gently as possible.

“But the current situation cannot possibly continue. Ultimately, this is big business and, I’m afraid, sometimes it hurts.”

As Rangers face Celtic at Hampden today in the Co-operative Insurance Cup Final, Stephen Morrow, Professor of Sports Studies at Stirling University, warned fans that the bank’s crackdown could see their club “in the wilderness” for the next ten years.

He said: “This will make it even more challenging for a club like Rangers to compete. In some ways, Celtic’s financial basis is different — they’ve been run in a different way which has left them less exposed.

“If Rangers have to pay back, say, £15-£20million over the next few years, there’s a risk of a big gap opening up between them and Celtic.”

It is believed the specialist lending team of bankers will study the club’s estimated £25million debt before making a string of recommendations to claw back some of the club’s loans.

The options would include selling off assets — such as players — trimming overheads, selling other assets or attracting more investment.

Professor Morrow added: “What you’ve got with a mature business like Rangers is that the business has developed — there’s only a fixed number of games they can play, they’re playing those games to capacity crowds and there’s a TV deal which is not going to get any better.

“Once you’ve brought players’ wages under control then that’s it, there aren’t many more ways to lever huge sums of money into the club.

“Unless someone comes along and gives you the cash, the only other way is to sell some of your assets and that means players.”

Rangers’ finances are tied into chairman Sir David Murray’s complex web of companies, Murray International Holdings — of which the bank owns around 10 per cent.

UNDER THREAT: Kris Boyd

Sir David gained control of the Ibrox club in 1988 after buying the majority of its shares for £6million.

As chairman, the businessman ploughed cash into the club, building a third tier on the main stand and raising the ground’s capacity by 7,300.

Murray’s costly European ambitions for the side, under Dick Advocaat’s management, saw them spend millions. But the club’s debts spiralled as TV revenues failed to make a dent on mammoth transfer fees and players’ salaries.

By 2001, mounting debts threatened the club’s future and Murray admitted mistakes were made.

He said at the time: “We got it wrong. We obviously spent far too much money. We can’t let it happen again because that would be total mismanagement.”

In July 2002, Murray stood down as chairman but returned two years later in a bid to reduce the Rangers debt mountain.

He organised the sale of a new batch of shares which raised £50million to start paying off the bank and, by 2006, the total owed had dropped from nearly £74million to only £5.8million. Since then, the debt has started to rise again at an alarming rate — despite Rangers’ run to the 2008 UEFA Cup Final.

Last year it stood at £21.6million but is believed to have reached around £30million before the bank stepped in.

Half-yearly figures released in January show the club’s turnover is 50 per cent lower than 2006.

And they are facing a 71 per cent jump in interest payments to nearly £8,000 a DAY.

The credit crunch has hit the club hard as Murray International Holdings’ huge commercial property assets have plummeted in value.

Last night insolvency expert John Shields said: “Murray International Holdings is built on steel, property and football.

“The bottom has fallen out of the market for steel and property, so the football cannot carry on being a loss-making luxury. The Bank of Scotland has specialist lending teams whose job it is to protect the bank’s money. Those men in grey suits will be looking very closely at the Rangers balance sheet and may suggest pruning the Ibrox staff.

“The team will probably be three-strong and they’ll spend up to six months poring over Rangers’ accounts and working with the club to identify where the savings are.

“They should have a strategy in place for when the transfer window opens at the end of the season and then guide the club through until it closes at the end of August.

“We’re in a recession so season ticket revenue could fall, corporate hospitality has been cut, the Murray Park Academy hasn’t delivered enough young players. The only way to raise revenue short-term is to sell players.

“Usually, the fact that the club has a wealthy parent company would be enough to satisfy the banks.

“But Murray International Holdings has taken a hit as well so Rangers is more exposed than it would normally be.

“David Murray is a realist — he is trying to bring a sound business structure to the club which is essential for it to survive but if the bank is now restructuring the debt then there may be even deeper cuts on the way.

“I think the fans need to rally round the chairman at this time, not barrack him for putting his neck on the line.”

Sir David recently admitted Rangers had lurched deeper into the red, losing nearly £4million between June and December 2008, with £1.4million paying off interest alone.

An early exit from European football at the hands of Lithuanian minnows Kaunas in the second qualifying stage of the Champions League this season cost the club around £13million in potential revenue. During January’s transfer window, Murray sanctioned the sale of star striker Kris Boyd for £3.8million in a bid to rake in cash.

Boyd, 25, was on the verge of a move to Birmingham City but a row over his £20,000- a-week wages saw the deal fall through. Goalie Allan McGregor and captain Barry Ferguson, on salaries of £25,000 and £30,000 a week, were linked to a lucrative Newcastle United move which also fell through.

Walter Smith’s squad is to be trimmed to only 20 in the summer after failing to offload Boyd in January.

But Murray has insisted that long-term loans were keeping the club stable, saying: “What I’m doing is not panicking. We have a financial facility with the bank and we must work within that framework.”

Now that strategy has been thrown into uncertainty and earlier this month, Rangers admitted a dozen backroom staff would lose their jobs. John Macmillan, general secretary of the Rangers Supporters’ Association said: “It’s a pretty bleak picture — the fans won’t take kindly to this.

“Most really don’t care about who owes what to whom, so we may see a split between the club and the fans over the next few years.

“But the club must recognise that it’s not the fans’ fault that Rangers are in such a mess — there’s been mismanagement and unwise signing policies which continue to this day.

“The way through this crisis is to put bums on seats, not to penalise the fans. The club should look at lowering prices and even letting in kids for free.”

Bank of Scotland has recently been bought out by Lloyds Banking Group after racking up losses of £10.8billion as part of HBOS. Both the bank and the club refused to comment.

http://www.newsoftheworld.co.uk/scottish/s...vid-Murray.html

Not an absolute new news story admittedly but a bit more depth but also maybe a story to scare us on a day of a Final.

Already posted Boab http://forum.rangersmedia.co.uk/index.php?showtopic=102317

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Guest Andypendek

Stopped reading after the first bit tbh.

The juxtaposition of 'clubs sheds 12 jobs' and 'club needs to save $20m' tells you all you need to know about the intellectual standard of this piece. What were they, paying receptionists $2m a year? I know that's crass, but what a lot of nonsense. Yes, business is business, but believe you me, there are about 3 and a half million businesses the bank would target before Rangers - both for financial and PR reasons.

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Sounds like sh*te to me. How much does it cost for a team of bankers? Plus has Sir David and the tanned one not built up enough business nouse between them to solve debt worries? This is another manufactured press story by the mhedia who are jubilant over what they perceive as a crisis at a club that once boasted about spennding a tenner for every fiver.

Journalists know less about banking than bankers and the vast majority of sports journalists I have met are morons with an axe to grind. Not worth the paper its written on in my opinion.

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The last old firm game we all got our hopes up thinking a huge Boruc story would be revealed.

Sadly it never materialised.

That pist me off, the rumours and constant posts that were made on here were a joke - I said on the Thursday that it wouuld only inspire Boruc and it did that - two cracking saves.

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Makes some sense to me. MIH must have suffered and we must be at least 25m in debt probably nearer 30m after losing 4m in the past 6 months.

I hope its crap, but I am not so sure.

Have faith in Sir David and Martin.

We'll be ok.

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Makes some sense to me. MIH must have suffered and we must be at least 25m in debt probably nearer 30m after losing 4m in the past 6 months.

I hope its crap, but I am not so sure.

the economic downturn will affect the whole of world football,trust me ! the banks will be shitting themselves with the billions of debt in the premiership.

were not in great shape but its certainly 'manageable',when we win the league thats a guaranteed £10m+ plus prudence in the transfer market next season will need to addressed (sell before we buy)

its all paper talk and most paper talk is fu*kin waaaash!

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The thing about this article that stands out to me is their lack of understanding of MIH as IIRC Murray sold the biggest bulk of his steel business to a Russian a year or so ago. So I really would take the article with a pinch of salt

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The thing about this article that stands out to me is their lack of understanding of MIH as IIRC Murray sold the biggest bulk of his steel business to a Russian a year or so ago. So I really would take the article with a pinch of salt

yeah your right ther MIM was sold for £109m at the right time! as the arse has feel out of the metals market.

but the concern i think is that alot was invested in commercial property? but hey its all fu*king speculation!

who really knows?

but all im concerned about is that we turn over the fu*kin rat catching mhanks the morra.

NO SURRENDER WATP

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win the league, auto £12M

Give £5M to the banks

Out go weir, hemdani, dailly, adam, gow, webster, smith, g smith, boyd, mcculloch hopefully £4-5M in transfer fees for the underlined, and its 10 players off the wagebill

one can dream

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I'd take this with a pinch of salt- players aren't classed as assets for a start, hence why Murray could buy the club for £6m to begin with.

Funny how we'd also be out of it for 'ten in a row' :rolleyes:

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