Bluedell 14 Posted January 6, 2009 Share Posted January 6, 2009 We had around £4.5m in the bank at 30th June and an unused £15m credit facility (overdraft), but what do we have now? The £15m credit facility is reviewed each November. I can't see HBOS having agreed to increase it given their current problems, and if they had decreased it then we would be in real trouble so I have to assume that it remained at the same level. If we look at the 2007 accounts as a base (being more representative of this year than 2008) it can be seen that we have outgoings of around £40m for the year. The wages of the squad appear to have increased so let's say it's now £44m. We get our season ticket cash in largely in May and June so let's say we get in around another £20m of income during the year. We got cash in for Cuellar but probably spent more in terms of cashflow on Mendes, Davis and Edu, but to offset that we have some Hutton cash to come in and £1m of a loan repayment to make, so for simplicity let's assume that they all net off to zero. It therefore appears that we an average of £2m cash per month going out of the club (44m - 20m = £24m for the year or £2m per month). We have therefore £12m of cash going out of the club up to the end of December which means that we have used £7.5m of the credit facility and have a remaining £7.5m, or around 4 months of cash left until we run out. Our season ticket money will start coming in during May and should keep us going then, but this shows that we have absolutely no cash available to spend on transfers in the transfer window, and we are down to our bare bones in respect of cashflow. Non-qualification for next season's CL could have severe consequences. Link to post Share on other sites More sharing options...
BlueIsTheColour 35 Posted January 6, 2009 Share Posted January 6, 2009 It is all rather worrying BlueDell and just serves to prove that Murray will be desperately looking to offload alot of players this January, regardless of their importance to the squad. What happens if we reach our overdraft limit though mate? Will the Administrators be called in? Link to post Share on other sites More sharing options...
Frankie 505 Posted January 6, 2009 Share Posted January 6, 2009 I think we're seeing signs of SDM being pushed into a corner financially. I see little alternative other than to approach the fans again (Milan friendly to test the waters for a possible share issue) then to move onto other assets (Auchenhowie) if key players can't be sold. IMO, Bougherra is a certainty to go this month and Mendes also likely. That will address the short term financial problems and remove the 'initiatives' above but without CL/UEFA Cup participation next season such ideas may not be as unlikely as they sound. Certainly the cost of no European football this season is now being felt. £30million+ debt, decreasing asset values, bank problems, 5 point table gaps; the list goes on. Worrying times ahead and the transfer decisions made after Kaunas knocked us out in the summer seem even riskier than they did then. Link to post Share on other sites More sharing options...
GeneralCartmanLee 313 Posted January 6, 2009 Share Posted January 6, 2009 Does the credit facility the chaiman provided no longer exist ? Link to post Share on other sites More sharing options...
smitzer007 198 Posted January 6, 2009 Share Posted January 6, 2009 Given some of the transfer targets that we're allegedly linked with I think it's safe to say that there aint much coffers in the kitty. Link to post Share on other sites More sharing options...
Jimenez 1 Posted January 6, 2009 Share Posted January 6, 2009 What do you know about finances ? That actually makes better reading than I had feared, it's no secret that we'll have to sell. Murray after going on a spree after the Cuellar/Kaunas fiasco hinted that we simply must bleed youngsters through the system to remain afloat. Smith's spending through the summer must be questioned. We were in no position to take a £6million gamble on Edu and Lafferty, Murray sanctioned the move but I'm sure he didn't do so on the basis that they'd be sitting on the bench depreciating in value. Link to post Share on other sites More sharing options...
Jimenez 1 Posted January 6, 2009 Share Posted January 6, 2009 It is all rather worrying BlueDell and just serves to prove that Murray will be desperately looking to offload alot of players this January, regardless of their importance to the squad. What happens if we reach our overdraft limit though mate? Will the Administrators be called in? Murray will have to bail us out or move on as far as I know. Link to post Share on other sites More sharing options...
Bluedell 14 Posted January 6, 2009 Author Share Posted January 6, 2009 Does the credit facility the chaiman provided no longer exist ? It was provided through MIH for a couple of years, but is now provided directly by the bank, I believe. Link to post Share on other sites More sharing options...
minstral 5,375 Posted January 6, 2009 Share Posted January 6, 2009 i hate murray but the biggest culprit is the manager who has wasted money on pish players or players that he wont even play. Link to post Share on other sites More sharing options...
Bluedell 14 Posted January 6, 2009 Author Share Posted January 6, 2009 It is all rather worrying BlueDell and just serves to prove that Murray will be desperately looking to offload alot of players this January, regardless of their importance to the squad. What happens if we reach our overdraft limit though mate? Will the Administrators be called in? The million dollar question. No, the administrators will not be called in, but cash would need to be found from somewhere. Either Murray or someone else puts some in or we sell something. If sell say McGregor for £6-7m then that would keep us going for a while. Link to post Share on other sites More sharing options...
Bluedell 14 Posted January 6, 2009 Author Share Posted January 6, 2009 What do you know about finances ? Not much and I'm waiting for someone to tear apart my back of the envelope analysis. That actually makes better reading than I had feared, it's no secret that we'll have to sell. Murray after going on a spree after the Cuellar/Kaunas fiasco hinted that we simply must bleed youngsters through the system to remain afloat. Smith's spending through the summer must be questioned. We were in no position to take a £6million gamble on Edu and Lafferty, Murray sanctioned the move but I'm sure he didn't do so on the basis that they'd be sitting on the bench depreciating in value. I don't have inside information so I could be a few million out and the situation could be worse (or better). I'd agree that the Edu and Lafferty signings seem strange although Lafferty was signed when we still were "likely" to qualify for the CL. Link to post Share on other sites More sharing options...
reddrock 107 Posted January 6, 2009 Share Posted January 6, 2009 i hate murray but the biggest culprit is the manager who has wasted money on pish players or players that he wont even play. Here feckin here Link to post Share on other sites More sharing options...
Frankie 505 Posted January 6, 2009 Share Posted January 6, 2009 If sell say McGregor for £6-7m then that would keep us going for a while. I think most us realise that the selling of playing assets may have to happen to necessitate new players and/or pay for barren years. Success isn't a given and occasionally bad years will happen in Europe. However, while the short termist approach to signing players for 6 months then selling them at a profit may be agreeable during such financial challenges, we have to find a place where we can do that while retaining as much an element of squad consistency as possible. As it stands we're not doing that and that's why we're struggling to win championships. There has to be some middle ground in this strategy. At the moment there doesn't seem to be. Boom or bust indeed! Link to post Share on other sites More sharing options...
Frankie 505 Posted January 6, 2009 Share Posted January 6, 2009 i hate murray but the biggest culprit is the manager who has wasted money on pish players or players that he wont even play. Yep, SDM is a worthy recipient of criticism from the fans. However, he did back the manager with money in the summer (when he probably shouldn't have) and that trust now seems to be backfiring big time. The gamble is still on but this is one bet that the odds are increasing by the week. Link to post Share on other sites More sharing options...
Jimenez 1 Posted January 6, 2009 Share Posted January 6, 2009 Murray isn't going to gamble 5 points adrift, it's simply a matter of who goes. I hope it's McGregor and Ferguson. That could potentially rake in £9/10million and save on wages. The thought of losing Davis, Mendes or Bougherra terrifies me. Link to post Share on other sites More sharing options...
MayboleLoyal_atb 3,731 Posted January 6, 2009 Share Posted January 6, 2009 i hate murray but the biggest culprit is the manager who has wasted money on pish players or players that he wont even play. Exactly. SDM backed Smith with money in the summer but Smith wasted it on players like lafferty, edu and Velicka who rarely get a kick of a ball at the weekends. Link to post Share on other sites More sharing options...
GeneralCartmanLee 313 Posted January 6, 2009 Share Posted January 6, 2009 Does the credit facility the chaiman provided no longer exist ? It was provided through MIH for a couple of years, but is now provided directly by the bank, I believe. I have never heard him say it is no longer available I would think it would be available if we ran out of cash....but in the current climate you never know Link to post Share on other sites More sharing options...
disgruntled_bear 157 Posted January 6, 2009 Share Posted January 6, 2009 I fear it's going to get a lot worse before it gets better. Link to post Share on other sites More sharing options...
Bluedell 14 Posted January 6, 2009 Author Share Posted January 6, 2009 Does the credit facility the chaiman provided no longer exist ? It was provided through MIH for a couple of years, but is now provided directly by the bank, I believe. I have never heard him say it is no longer available I would think it would be available if we ran out of cash....but in the current climate you never know It's the same facility. It was provided by Murray MHL Ltd in 2004, but in subsequent years there was not any mention of who provided it, so it can be assumed that it is from the bank now, rather than from a Murray company. Link to post Share on other sites More sharing options...
GeneralCartmanLee 313 Posted January 6, 2009 Share Posted January 6, 2009 Does the credit facility the chaiman provided no longer exist ? It was provided through MIH for a couple of years, but is now provided directly by the bank, I believe. I have never heard him say it is no longer available I would think it would be available if we ran out of cash....but in the current climate you never know It's the same facility. It was provided by Murray MHL Ltd in 2004, but in subsequent years there was not any mention of who provided it, so it can be assumed that it is from the bank now, rather than from a Murray company. I know he charged for the privilege, easy money for him. I wonder why he would change it as it doesn't seem like that much money to absorb into MIH. Link to post Share on other sites More sharing options...
Bluedell 14 Posted January 6, 2009 Author Share Posted January 6, 2009 I know he charged for the privilege, easy money for him. I wonder why he would change it as it doesn't seem like that much money to absorb into MIH. Two reasons that I can see. Firstly it allows Rangers to be a bit more self-contained in respect of financing, and if something goes tits up then it's Rangers assets that would be on the line. Secondly I get the feeling he's a bit touchy about the alleged money that he makes from the club and has been trying to reduce the interaction between the club and other Murray companies. It is quite noticable that the value of services supplied by Murray companies have fallen for the last few years. Link to post Share on other sites More sharing options...
BlueSuedeSambas 53,959 Posted January 6, 2009 Share Posted January 6, 2009 If this is the case then surely the need to make maximum use of the youth facilities we have availablle to us must become a priorty? Link to post Share on other sites More sharing options...
nvager 498 Posted January 6, 2009 Share Posted January 6, 2009 I think our debt at present must stand at around 34M. It was 26m last summer and with transfers and additional wages that is my best guess. Overdraft facilities must be next to nothing given the economy and the Banks situation. That is worrying. My guess is that we will definitely be selling assets and that Bougherra will almost certainly leave. Others that may leave are McGregor, Boyd, Beasley, McCulloch, Adam, Daily, Hemdani, Burke, Velicka, etc. I would hope Ferguson leaves, but somehow do not see it. Walter will probably hold on to McCulloch and Adam too. Really Walter is THE problem. Link to post Share on other sites More sharing options...
rbr 364 Posted January 6, 2009 Share Posted January 6, 2009 I posted on another site info I was given by two old and trusted friends ,that Rangers had through Willie MacKay notified clubs in England that EVERY first team player was available for transfer. After this was posted for two days I was phoned and asked to get it removed as one of my friends was gettin serious grief about thi info being in the public domain , it also transpires that certain journalists know about this and are debating whether to run the story now or wait till the bigger picture emerges , a picture that aint going to look rosey for us Link to post Share on other sites More sharing options...
disgruntled_bear 157 Posted January 6, 2009 Share Posted January 6, 2009 I posted on another site info I was given by two old and trusted friends ,that Rangers had through Willie MacKay notified clubs in England that EVERY first team player was available for transfer. After this was posted for two days I was phoned and asked to get it removed as one of my friends was gettin serious grief about thi info being in the public domain , it also transpires that certain journalists know about this and are debating whether to run the story now or wait till the bigger picture emerges , a picture that aint going to look rosey for us I thought Wullie McKay was still banned from operating in England after the Benjani scandal <_< Link to post Share on other sites More sharing options...
Recommended Posts