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Accounts out this morning


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The expenditure made last season won't be repeated this season in terms of some staffing costs, one off payments, purchasing of new assets etc.

As long as revenue increases from match day, retail, sponsorship and season ticket sales then we should be in a good position for 13/14 accounts.

Would be happy to see income of around £21-23m next season.

The big concern is non playing staff wages and bonus structure. That has to be addressed ASAP.

dougie76 and Shuggy like this
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Basically much as expected, we are not going bust by Christmas, more detail provided than ever before, doommongers were talking nonsense, and looks like we are on course to break even this year. More

I've just come over the Erskine Bridge - you should see the queue The Sons of Struth are at the front, followed by 3 names, Furry, Greenslade, the RST, the goon brigade, the UB's, the Assembly and Spi

We need to do two more things to move forward 1 Half the wages of Ally and his 2 sidekicks 2 Dispense with ANY board bonuses until we get in to the top division Job done

Sponsorships obviously dropped due to the fact we've no European football and don't play in the top league.

On the surface that might be true, however Rangers have had a bigger European profile over the last twelve months than we probably had while playing or trying to qualify for European football. Combine that with regular gates of over forty thousand and that fact that we can command an overseas market the impact of playing in the fourth/third tier of Scottish football in reality isn't that much less than being in the top tier. Indeed I would say that as a club we provide a better package for sponsorship than the whole of the SPFL league structure. It will certainly be interesting to see just how much Rangers will gain from the deals that have already been signed with Puma and Sports Direct over the period of those contracts.

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Boss - this is where I'm confused. £17.8m of staff costs minus £7.8m of player costs = £10m on mgt and board. We know the mgt team are being paid way too much (c.£2.2m for the 3) but that leaves c.£7m going out via the board / owners???? For what??? Without these guys taking exorbitant bonuses and salaries the accounts would be ok - but they are. Why is everyone happy with this?

The board/owners don't cut the grass, manage the ticket office, carry out essential maintenance and do all the other jobs around Ibrox and Auchenhowie

Do you think they all work for nothing?

dougie76 and iang2911 like this
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On the whole, I think the accounts are probably par for the course.

A particular concern of mines would be the sugar coated use of first team wage : turnover ratio. On first impressions 42 to 43% doesn't sound too bad, however I'd have thought that total wages : turnover would have been a more relevant benchmark.

Considering total wages & salaries [15,855] : turnover [19,107], we're hitting 83% Unhealthy is probably an understatement.

I'm slightly pushed for time (nearing the end of my lunch), we can attribute:

£000s

First team salary 8022

Total Director Remuneration* 1589

Ally's salary 825

Imran Ahmed* 303

Total 10,739

By my reckoning this leaves circa £5.146 m being paid to all other (157!) staff members.

*including bonus

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to those that are saying costs are too high for the 3rd division etc. come on! do you really want us to move out of a 5 star stadium, make all players part-time and bring in a low league manager, reduce facilities and only cater for 2-300 fans every week?

Rangers are not a 3rd division club, we are on the road back with massive rebuilding to be done while maintaining facilities that are the best in the country, it takes money to operate for 40-50,000 fans turning up every other week. Also, on the non-playing staff wages, CG made a very strong point of not sacking anyone last year as in another 2 years time we would need to re-employ people for that job, accepting the increased cost to the company in the mean time.

Sure, the accounts could be better but there was always going to be a period of losses. From June 2013 onwards we will have TV revenue, sponsorship, retail income and more to be added to the revenue. All in all we are not in a bad position.

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Boss - this is where I'm confused. £17.8m of staff costs minus £7.8m of player costs = £10m on mgt and board. We know the mgt team are being paid way too much (c.£2.2m for the 3) but that leaves c.£7m going out via the board / owners???? For what??? Without these guys taking exorbitant bonuses and salaries the accounts would be ok - but they are. Why is everyone happy with this?

We're not. Board and management team costs are too high. But we also employ 146 non football staff included in that £10m.

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Direct from your link:

"When assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the balance sheet date. The degree of consideration depends on the facts in each case."

My emboldenment. This is no "12 month rule". If the board's 5 year plan (to which they refer in the accounts and therefore must be made available to the auditors) indicate that we will run out of money in a few years, that is absolutely relevant to the going concern consideration even when it's outside 12 months.

"management takes into account "

Yes, that is for internal managements consideration, not the auditors. This is a self declaration which should be followed, but is heavily caveated with assumption. It is also open to projection for future borrowing suggesting that they may still expect to make a loss in 2014-2015 but seek funding to cover.

Auditors can ask for detials on this, but they would have to be very doubtful that funding could be obtained before refusing to sign off the accounts.

The board may not be projecting to break even for a good few years yet.

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The board/owners don't cut the grass, manage the ticket office, carry out essential maintenance and do all the other jobs around Ibrox and Auchenhowie

Do you think they all work for nothing?

No but i think a groundsman gets paid £15k per year, someone in the ticket office £10k. Unless we hired an extra couple of hundred people that figure seems extremely high to me.

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To simplify, as it stands it costs around 30 million to run the club each year.

We take in around 20 million.

We had about 7 million in the bank before season ticket money.

So we are potentially about 10 million short. This seasons income will increase from merchandise and sponsers and hopefully costs will be cut, hopefully this will decrease the shortfall.

There was is no chance we will make a profit this year (unless we sell our best players)

We will probaly have to raise more capital at some point.

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Nah I know that we spent more than our income, I'm not that stupid :lol:

I meant how will we break even in a years time if we've lost that amount of money over the past year.

Revenue up, say, £5m. Costs down, say, £2m. There's half the difference. Player sales would be needed to take us towards break even (Wallace, Macleod, Law?).

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I'm in the same boat. The accounts are as clear as mud to me. It doesn't help when you have dozens people on here playing amateur accountant, trying to pick them apart and put their own slant in. I have 3 questions

How much money did we take in in total?

How much money did we spend in total?

What is our current balance?

overall PROFIT of £1.2m and £11.5m cash in bank, with £2.5m available credit should we ever need it
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To simplify, as it stands it costs around £30 million to run the club each year.

We take in around £20 million.

We had about £7 million in the bank before season ticket money.

So we are about £10 million short. This season income will increase from merchandise and sponsers and hopefully costs will be cut.

There was is no chance we will make a profit this year (unless we sell our best players)

We will probaly have to raise more capital at some point.

Where are you getting that we only had £7m in the bank?

As far as I can see, there is £11.5m in the bank before season tickets.

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Interim accounts for 6 months to 31 December 2013 will be issued around February which will help us see the current picture.

i think the AGM should answer forward projections and a hint of current performance, hoping that this will finally nock the doubters in the heid once and for all, hope so anyway
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We're not. Board and management team costs are too high. But we also employ 146 non football staff included in that £10m.

Understand that. I'd also like to see a breakdown of non-operating costs of c.£16m. Seems extremely high to me. Given that the management and board are clearly being too generously compensated why can't we all agree that it requires more transparency and more "heavyweight" finance guys on the board? Doesn't need to be an US and THEM argument which seems to be going on. Just some proper financial controls, executives paid at a less "generous" rate and a review of the management team salary. I'd be surprised if Terry Butcher was getting more than £100k at Inverness for example - we're paying £2.2m+ for our senior football management team. Farcical.

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Its all possible, but in reality we will need another cash injection to be challenging for the league, because in all probability we wont have any cash reserves.

This was ALWAYS gonna be the case though.

Both halves of the boardroom battle, no matter who wins, will be doing another share issue at one point soon.

iang2911 likes this
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No but i think a groundsman gets paid £15k per year, someone in the ticket office £10k. Unless we hired an extra couple of hundred people that figure seems extremely high to me.

Rangers groundsman on £15k ... :blink: . If your old enough and out of school go and ask what a golf course groundsman at any club gets .

A top golf course groundsman will be on a par with Rangers head grounds man. and there will be many groundsmen not just the one.

You`ll be in for a shock if you think they are on £15k.

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Understand that. I'd also like to see a breakdown of non-operating costs of c.£16m. Seems extremely high to me. Given that the management and board are clearly being too generously compensated why can't we all agree that it requires more transparency and more "heavyweight" finance guys on the board? Doesn't need to be an US and THEM argument which seems to be going on. Just some proper financial controls, executives paid at a less "generous" rate and a review of the management team salary. I'd be surprised if Terry Butcher was getting more than £100k at Inverness for example - we're paying £2.2m+ for our senior football management team. Farcical.

Don't forget that the current board offered a seat to Frank Blin, however it was structured they were open to him coming on board.

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