Cost reduction program - what are we not being told?

[BarrhillLoyal 32]

I am concerned about the smoke and mirrors of the response to Mr Wallace when he asked the players to take a 15% salary reduction. Some suggest that the players may have thought this more acceptable if cuts were being made in the executive costs. I believe this to be nonsense for the reasons set out below which demonstratye clearly that the execs HAVE done their bit

Key assumptions.

The annual accounts (page 34) state that for the 13 month period total director / executive costs were K£1589. ( The annualised salary and benefits costs would be K£1466; with Ally on K£732 total becomes K£2226.)

CEO annual salary equivalent to Green at K£307 with NO bonus payable

Stockbridge has no bonus and base sal of K£200

Chairman / director fees take the same payments as Walter and previous board of around K£140

Taking all of this into account I am not sure what else we could reasonably expect the exec team to do by way of cost reduction.

Leaves the question then.....why is here such a mess and why are the players being asked to take this reduction unless there is a lot more we have not been told?

Any thoughts, fellow Bears?

Executive costs 2013/4

Exec costs 1466

Ally’s salary 762

Total 2228

Green Bonus - 360

Green separation -217

Stockbridge bonus -200

McCoist reduction -380

Revised exec cost 1071 (52% y/y saving)

[Getstiffed 8,863]

Yes. They are secretly siphoning off millions into Green/Whyte/The Popes bank accounts.

AIM auditors are in on it as well.

[bigblueyonder 11,156]

Because total wage bill was 95% of revenue

[JCDBigBear 10,810]

I am concerned about the smoke and mirrors of the response to Mr Wallace when he asked the players to take a 15% salary reduction. Some suggest that the players may have thought this more acceptable if cuts were being made in the executive costs. I believe this to be nonsense for the reasons set out below which demonstratye clearly that the execs HAVE done their bit

Key assumptions.

The annual accounts (page 34) state that for the 13 month period total director / executive costs were K£1589. ( The annualised salary and benefits costs would be K£1466; with Ally on K£732 total becomes K£2226.)

CEO annual salary equivalent to Green at K£307 with NO bonus payable

Stockbridge has no bonus and base sal of K£200

Chairman / director fees take the same payments as Walter and previous board of around K£140

Taking all of this into account I am not sure what else we could reasonably expect the exec team to do by way of cost reduction.

Leaves the question then.....why is here such a mess and why are the players being asked to take this reduction unless there is a lot more we have not been told?

Any thoughts, fellow Bears?

Executive costs 2013/4

Exec costs 1466

Ally’s salary 762

Total 2228

Green Bonus - 360

Green separation -217

Stockbridge bonus -200

McCoist reduction -380

Revised exec cost 1071 (52% y/y saving)

Firstly ref the board:

Wallace is probably on £300k as per Mather.

Stockbridge £200k

Somers £50k as was M Murray and Walter Smith

Crighton £40k as were previous NEDs

Easdales apparently don't take a salary.

I'm not entirely sure what else you fail to understand that you wish others to put forward their thoughts.

The club needs to increase revenue and reduce costs. The overheads for RFC are huge, approx £1m per month. That is not including ALL staff costs football and non-football.

It takes time to review the cost base and what can be cut. Also, you can't just sack people without incurring some financial penalty. Wallace will be looking across the whole Club not just the leaked bit about a possible player wage reduction. The only reason that people focus on that one aspect is deliberate and an attempt to undermine the Club.

[BarrhillLoyal 32]

Bigblueyonder.....

Because total wage bill was 95% of revenue

-------------------

That's exactly why I am on about smoke and mirrors....we have the media and Ally going on about player costs being 30% of revenue as if this is great. If it was total football department costs it would be great but this is first team only then the other 35 or so non-first team lads plus Ally, Durranty,McDowell, Jim Stewart, Jimmy Bell etc....and still the media churn out30% as if it was true.

That said I do believe the exec team ARE finally doing their bit.

Cheers, mate

[Bobby Hume 12,990]

Yes. They are secretly siphoning off millions into Green/Whyte/The Popes bank accounts.

AIM auditors are in on it as well.

It's a well known secret, that Charles is in need of a few bob, as he was seen in the local French Homebase checking out the cost of laminate for his big chateau, and he needs hunners.

[Bothwellbear 1,392]

120 days. Then we will know.

[TheLawMan 6,240]

You forgot to take off Green Salary as well which reduces it further. Wallace salary is a straight replacement for Mather.

[TheMotor 2,208]

I wonder where the savings on costs are expected to come from if not from the footballing side? What else has changed in the business except the footballing side?

We have the same stadium, with the same costs associated with that. The same size crowds, the same press issues, the same ticket selling requirements, the same commercial requirements, training facilities, hospitality, food and refreshments, stewarding, legal, HR, maintenance, financial, Rangers TV, etc., etc. They are all maintained at SPL levels due to the fact that they are focused on still having the same level of demand on resources when we continue to get 45000 through the door every other week and we're still the biggest thing in Scottish football.

[cushynumber 25,178]

I wouldn't like to be working in the Megastore and be the last person in the door, come April 1.

[*Manticore* 1,893]

I'm not allowed to tell you.

[UKIP BEAR 370]

I say give the guy his 120 days.

[Guardian 4,281]

I wonder where the savings on costs are expected to come from if not from the footballing side? What else has changed in the business except the footballing side?

We have the same stadium, with the same costs associated with that. The same size crowds, the same press issues, the same ticket selling requirements, the same commercial requirements, training facilities, hospitality, food and refreshments, stewarding, legal, HR, maintenance, financial, Rangers TV, etc., etc. They are all maintained at SPL levels due to the fact that they are focused on still having the same level of demand on resources when we continue to get 45000 through the door every other week and we're still the biggest thing in Scottish football.

As in all industries, there are almost always savings that can be made.

The board are reviewing all jobs to see if any savings can be made there. This may result in job losses which is horrible but necessary.

They can also review supplier contracts to ensure we are getting good value and possibly renegotiate some of them or change supplier.

There may be processes which can be updated to be more efficient.

IT may be used to update old systems and require less staff.

Does the green keeper really need 2 forks ? We could put the other on Ebay.

The players on the bench could replace the ball boys, or vice versa in some cases.

Shorter hotdogs would go further and boost takings.

The corners could be filled in with seats that face AWAY from the park. These could be sold at a premium.

The players could wash their own kit meaning we could do away with the kit man and make a dent in that scandalous Persil bill.

Players will no longer travel to games on a team coach. As fans are going that way anyway, players can cadge a lift. Failing that, there is always the megabus.

As you can see, there are many cuts that can be made with a little imagination.

These are just a few off the top of my head from my very little imagination.

[legalbeagle 3,734]

I am sure that our exec costs have reduced substantially, and normally I wouldn't expect anyone relatively new to a roll to volunteer a reduction BUT some of our players have only been here a few months and would be exempt, so regardless of the overall cost reduction it would be a great example if paid execs reduced their direct salary by 15%

[Big Al 55 9,241]

Generally though the execs are the highest paid within the company and it makes sense for them to lead by example, not necessarily the same in a Football Club

[ForeverBlue_Since91 2,895]

The players should be taking a wage cut or sold. People who aree moaning about this are just doing it because they don't like the board.

Simple.

I would also like know what the fuck Dave King has been taking? He says the board should back Ally 100% the last board done that and this is what happens. He says we should be investing in the team, how the fuck can we do that?

[Ger_onimo 20,488]

The players should be taking a wage cut or sold. People who aree moaning about this are just doing it because they don't like the board.

Simple.

I would also like know what the fuck Dave King has been taking? He says the board should back Ally 100% the last board done that and this is what happens. He says we should be investing in the team, how the fuck can we do that?

Why should players who have agreed contracts, in some cases only a few months ago, accept wage cuts?

Who should they be sold to?

What if you back the board but also think the players should not have to accept wage cuts?

[ForeverBlue_Since91 2,895]

Why should players who have agreed contracts, in some cases only a few months ago, accept wage cuts?

Who should they be sold to?

What if you back the board but also think the players should not have to accept wage cuts?

Blame the person who brought them here then who knew what these players were going to be getting paid every week.

Aye i agree it is shite but it happens in every day life. People have contacts then they get told they have to take a pay cut/ paid off.

What makes football players any different?

[Bertent 2,081]

there will be more horse in the burger and fewer seeds on the buns

[BlueAvenger 10,208]

Of course we need cuts in every department and now.

Hopefully the 120 day plan will inform us of the details.

But what I want to be told is where the investment is coming from, how much and when ?

[theiconicman 2,977]

Honestly

The problem is not our costs, but our income. Our cost base is temporarily high but not for long term.

We need to fix our income

[Malvern 11,329]

You're not being told until Mr Wallace has finished his 120 day review, get over it.

[legalbeagle 3,734]

The players should be taking a wage cut or sold. People who aree moaning about this are just doing it because they don't like the board.

Simple.

I would also like know what the fuck Dave King has been taking? He says the board should back Ally 100% the last board done that and this is what happens. He says we should be investing in the team, how the fuck can we do that?

Simple, but wrong.