Astute bit of business or just a false economy?

[corbyloyal84 130]

http://www.heraldscotland.com/sport/football/astute-bit-of-business-or-just-a-false-economy.23307260

Rangers have reportedly rejected two bids from Nottingham Forest for Lee Wallace, although a deal could yet be struck to sell the Scotland defender before the close of the transfer window on Friday.

Rangers have reportedly rejected two bids from Nottingham Forest for Lee Wallace, although a deal could yet be struck to sell the Scotland defender before the close of the transfer window on Friday.

Lee Wallace is happy to stay, and Rangers want to keep him, but they may no choice but to sell. Picture: SNS

Custom byline text:

Richard Wilson

Even then, the player's preference is to remain at Ibrox.

Given the financial and political situation at Rangers just now, what are the pros and cons for selling the full-back?

CASE FOR

In short, the money. Graham Wallace, the chief executive, has been clear that the cost base needs to be cut because Rangers are operating outwith their means. There will be no significant income until season ticket renewal money begins to be received in June and July, which means that the cost cutting needs to happen now. There is increasing concern outwith the club that an immediate shortfall might be encountered next month, although Wallace is adamant there "is sufficient cash in the bank".

Either way, Rangers need to reduce their outgoings, so selling Wallace makes financial sense in that respect. He is most likely the highest-earning player at the club, and he is the most sellable asset. David Templeton would attract attention if he were a free agent, but since he is on a good wage at Ibrox, few other clubs would be prepared to match the wage and pay a fee. The same applies to Nicky Law, Cammy Bell, and Lewis Macleod, the young player with the most potential in the squad. There has been no significant interest in any of these individuals, though, while those players who are out of contract in the summer would need to be incentivised - most likely though a pay-off - to depart now.

So that leaves Wallace. He is an internationalist, a proven top-flight player in Scotland, and still at a young enough age to be considered a player who can improve further. He has consistently been Rangers' best player this season, so it is little wonder that Nottingham Forest showed an interest. It will also be felt that Rangers' imperative to sell is greater than the need of the buying club, which forces the price down.

Graham Wallace raised the notion of the squad taking a 15% wage cut as one means of reducing outgoings. The players will not countenance it at least until the executives are making the same sacrifice, although selling one comparatively high-earning player, and generating a fee, might reduce the need to negotiate a wage cut.

Ultimately, Rangers need to make savings, so selling Lee Wallace is an obvious consideration.

CASE AGAINST

It begins and ends with the fact that Wallace is Rangers' best player. He is the one member of the squad who would be expected to figure in a team that could challenge Celtic for the title once Rangers eventually return to the top-flight. While there is a financial case for selling him, there is also one for retaining him: Rangers paid £1.5m to sign him, and replacing him in 12-to-18 months would cost a similar amount.

Graham Wallace has made several comments about the short-term thinking that brought Rangers back into a financial mess, and it may be a false economy to sell the defender now. There are other consequences, not least the mood among the rest of the players, although footballers tend to be pragmatic and resilient, viewing the comings and goings in a squad as inevitable. None the less, with the financial backdrop at the club, selling Wallace might be seen among the players as a reflection of a grave situation.

The manager, too, does not want Wallace to leave, while the player himself wants to stay. McCoist values his experience and attitude, and his influence with the younger players in the squad. Many view Wallace as a future captain. The player is settled in his home life, with a partner and a young child, and has no ambitions to play in England. He coaches a local amateur team in Edinburgh - many of the players are his childhood friends - and he takes that part of his life very seriously. Money is persuasive, of course, but Wallace is unlikely to move to a club that pays well beyond his current salary.

Rangers must consider their options carefully for other reasons, too. If costs are to be cut, it is legitimate to point out that the first-team wage bill is only around 30% of turnover - well below UEFA recommendations - so cuts ought to be achievable in other areas of the business. The chief executive has tasked Philip Nash to conduct a full review, and so it may yet be that the football side does not bear the brunt of the cuts.

There is also the question of season tickets. The sale of the team's best player, as part of a cost-cutting exercise that would seem to preclude adding to the squad in the summer, is hardly much of an incentive for the fans to renew. The team will be weakened by Wallace's departure.

His future, then, is pivotal to Rangers' future, whatever the outcome.

[gordon123 18]

all very true , at last a sensible well ballanced journalist , i agree with the whole article , we have to start making the right decisions now for the long term , selling our best player is not an option

[quinty 1,445]

'it is legitimate to point out that the first-team wage bill is only around 30% of turnover - well below UEFA recommendations - so cuts ought to be achievable in other areas of the business./

This

Good analysis, balanced, fair and for the most part evidence based.

He'll get slaughtered for it!!

Edit: Looks like it's been overtaken by events in any case

[bump 168]

lees future with us will be in dout right up until midnight on friday am afraid

[folkestoneger 8,131]

We abolished slavery a very long time ago.

Therefore if Wallace wishes to stay the matter is ended no matter what the manager, directors or anyone else wants

[bigbluesea 108]

Correct. If lee does not want to go, then he will stay.

This is his chance, to be the captain of one of the greatest football clubs the world has ever known.

It is his time to become a legend, a man who will be discussed long after we are gone.

Time to take that stand

[BarrhillLoyal 32]

Another load of Jack Irvine pish here I think.

In our annual accounts, approved by Deloitte's, the first team wages are stated to be 43% of turnover,

Boca, Goian and Alexander have gone but nine new lads came in. I would guess their combined wages may net out with these high earners.

How the hell are we now to believe that wages are less than 30% of turnover.

Just to get the sums in perspective 43% of turnover was K£13363. To get to less than this mythical 30% the new first team wage total would need to be less than K£ 10008. I cannot believe we have taken M£ 3 off that tab.

( I've also remembered accounts were for 13 months to all calcs are 12/13's of annual accounts.)

Hope I'm wrong, don't think I am though.

[West_Side 1,571]

Assuming we sell 36000 season tickets at £258, that works out at £9.288000 million pounds.

That's not accounting for the rise in prices as we go up the league, or even that we will probably sell more once we get back into the top flight.

And if we get one European tie, and we sell 45000 tickets at £40 a ticket, that works out at £1.8 million pounds. When we consider that Lee Wallace is the kind of player who can get us into Europe then to sell him for so little makes no sense to me.

I'm not an expert or anything, but to me it would make no economic sense to sell our best player to gain £1.5 million pounds and save about £500k a year in wages. I think Graham Wallace is a man of financial sense, and I can't believe he'd be willing to sell a player for such a negligible gain.

[geronimoo 1,474]

If Wallace goes there is going to be a shit load of unhappy bears.

[Redwhiteandblue 3,330]

With there already talks of folk not renewing already, the inevitable season ticket rise for next season and selling out best player for relative peanuts seems like financial suicide.

[elephants stoned 2,994]

Whats this rumors of a shortfall next month? Apart from a brief flirtation with minico, Dicky Wilson remains one of if not the only decent prominent Scottish journo so i trust him far more than your keetch jacksons or tam O'Orishes.

[Muirheadbear 1,483]

What would it cost to replace Lee Wallace in two years time never mind the risk any new signing brings.

This is a player with the best years still ahead of him. I genuinely believe not only can he be the next Rangers captain but he could also lead his country.

If they sell him then it's a short term fix something Graham Waalace lambasted the previous incumbents of.

[BarrhillLoyal 32]

What would it cost to replace Lee Wallace in two years time never mind the risk any new signing brings.

This is a player with the best years still ahead of him. I genuinely believe not only can he be the next Rangers captain but he could also lead his country.

If they sell him then it's a short term fix something Graham Waalace lambasted the previous incumbents of.

Fuck Scotland as they do to us. Captain of Rangers is fine for me!

[WadeWilson 4,670]

Correct. If lee does not want to go, then he will stay.

This is his chance, to be the captain of one of the greatest football clubs the world has ever known.

It is his time to become a legend, a man who will be discussed long after we are gone.

Time to take that stand

Well said, that man...

PS - I like Mr.Bickle's badge.

[Guardian 4,281]

If the board deem it necessary to sell Wallace they will do so and if folk don't buy ST'S that will be too bad.

I'm not saying they will or should, but if they need to I can't see why any true bear would start greeting about it.

I do find it odd that those who were most outraged by the board spunking money up the wall (to use the phrase they were taught) are the same ones now outraged at the board trying to cut costs.

Did they not understand what they were being told to ask for before ?

Or are they just out to dig at the board for NOT spending now ?

Sorry lads but you can't have it both ways.

The board are merely doing exactly what you asked them to.

ANY board would have to do the same, including a minico one.

Tho they wouldn't get any grief for it as they would be given the previous board free pass.

Some need to realise we are a bit skint. Not terminal but we do need to make drastic changes to ensure we stay out of trouble.

So many are threatening to not renew to get their way that the club will end up doomed. It will get so bad that one group will be pissed off cos another group got their way. There will be no pleasing everyone.

Our unity kept us alive but these disruptive elements are now using it against us.

[stewaj3 1,446]

It's not very often I say this... But that is an excellent piece of journalism.

[slimjim1690 4,534]

Why would Lee want to leave? , unless it was some premier league club offering mega wages, as the article said it's unlikely he'd be able to command a higher wage, and add into the fact that he works in a top class training facility that few other teams could match, is settled in his home life, then the only other reason I could see him wanting to leave is if he wanted to prove himself at a higher level, which personally has surprised me, but then if he is a home buddy then that would explain that last part.

[born a blue nose 90,754]

First piece of journalism I've been able to read right through recently.

Totally agree with the full article.

100% want Wallace to stay.

[bombaybadboy08 15,660]

Good, non-shit stirring article.

[Corky True Legend 2,682]

What? A journalist giving balanced arguments pro & con! No hidden agenda. There is hope for the Scottish mhedia after all.