disgruntled_bear Posted February 8, 2009 Share Posted February 8, 2009 The rangers chief is confident that the club, his business and his peers can beat the financial turmoil A £2.7 million sponsor deal with Murray International was announced by David Murray for the future of Scottish Rugby during a press conference at Murrayfield Stadium, Edinburgh. Last week, Rangers got a taste of something they have badly missed when AC Milan visited Ibrox for a glamorous friendly. As the crowds mobbed David Beckham, Ronaldinho and Kaka, it only served to heighten the disappointment at a lack of competitive European football for the Glasgow club. Rangers held the Italian giants to a creditable 2-2 draw before a full house that will partly help refill the coffers left bereft of European income. But having reached the Uefa Cup final last year, Rangers expected to do better the next time around. Falling in August to lowly FC Kaunas, the champions of Lithuania, was a financial blow that Sir David Murray, club chairman, admits came out of the blue. “Kaunas knocked us sideways,” he said. “Of all the years to do it, this was the one with no safety net. If it had been next year, we’d be in the Europa league and that would mean £3-£4m.” The result was a new fiscal reality for Rangers that some fans have found hard to bear, but for all its high profile, Rangers is just one part of the £600m Murray empire. Not long after, Kaunas, the the global banking system, provided its own shock result with the Lehman Brothers collapse. Murray admitted it had been a tough year, but having overcome enormous personal and business challenges that would have finished off lesser people, he was not going to shy from what he describes as the biggest challenge of his business career. “What surprised everyone was the sheer speed, it was unprecedented,” he said. “We have been able to do okay but we have to be vigilant. “I think it will be the end of this year at least before things turn but, if you are being honest, nobody knows for certain when this is going to end.” One of the Murray Group’s strengths is its diversity, with interests ranging from metals to call centres and commercial property. “We have no one customer with more than 4% of our £600m turnover,” said Murray. “We are like an octopus with tentacles. I am not complacent but if we were just in one sector I’d be far more worried.” Murray’s success had been mainly bankrolled by the Bank of Scotland but in the financial maelstrom, the bank’s parent group HBOS was swept away. New owners Lloyds have been in control for less than a month and have yet to fully combine the two banks. “We have a good working relationship with Bank of Scotland,” said Murray. “They provided the majority of funding. How Lloyds will view the market place in Scotland remains to be seen.” But he insists that if the economy is to recover, it will be private businesses at the forefront — if the banks back them. “You must support the wealth creators to sort this out,” he said. “Governments can’t do it. It is down to the Tom Hunters, the Jim McColls, the Murrays, the [Keith] Millers and the [stewart] Milnes. If you back us, we can create wealth again for a lot of people. If the banks are not supportive of us, in the collective sense, it will have a detrimental effect.” Related Links * Murray demands banks do their bit He detects signs that his metal business is beginning to recover. “We stock about 90,000 tons of steel in our depots and we sell between 18 and 20,000 tons a month. That’s twice the weight of the Forth rail bridge,” he said. “The mills that have closed are servicing the car industry and we are more into fabricated general steel. In the past 12 months we still made a good profit.” Although commercial property is “tight”, he says his portfolio remains strong, with assets including prime central London offices occupied by consultancy firm Price Waterhouse Coopers. “Unlike others, we have never revalued our property portfolio; it’s on our books at cost and we have blue-chip clients. We have one or two properties not let just now, and we will revalue them accordingly at the year-end but the majority of our stuff is relet,” he said. He believes the government has done as much as it can to help but, as a long-time opponent of independence, he added: “What would have happened had we not been part of the Union?” Rangers has been part of his life for 20 years but he reiterates that he still wants to hand over the reins at the right time. “Of course I am still excited by Rangers. We have a great batch of young players coming through and I don’t think anyone could accuse me of being an absentee landlord, but 20 years is a long time,” he said. “The most crucial thing is not price, it’s the right person.” Overall, Murray remains optimistic but cautious. “I am looking to create a legacy in business, and if we get the tools to do the job and a slight turn of the market, I am confident about the future,” he said. “We have to remain positive and if the wealth creators get support from the banks, I am sure we can have a much quicker, faster fix.” http://business.timesonline.co.uk/tol/busi...t=12&page=2 Link to comment Share on other sites More sharing options...
Bluepeter9 Posted February 8, 2009 Share Posted February 8, 2009 No panic or real problems coming through on that interview - and to think some want rid of SDM sigh! Link to comment Share on other sites More sharing options...
Nemesis Posted February 8, 2009 Share Posted February 8, 2009 Like him or loathe him the guys knows the score re the financial pitfalls His point about the Union is spot on We'd be in a right state otherwise Link to comment Share on other sites More sharing options...
harry handsome Posted February 8, 2009 Share Posted February 8, 2009 He does have great business sense. Having a diverse portfolio of business interests is vital in a normal operating economy but even more vital in this current climate. To keep a business strong you need different core groups which work very much like an engine. As one piston (Company) hits the bottom another piston hits TDC which creates enough profit to keep the other pistons moving. As much as i get frustrated with SDM i think he is the best we have at the moment. Link to comment Share on other sites More sharing options...
The Hammer 11 Posted February 8, 2009 Share Posted February 8, 2009 Wonder when our new kit deal is going to be anounced? Link to comment Share on other sites More sharing options...
Thermopylae Posted February 8, 2009 Share Posted February 8, 2009 For Kaunas and the credit crunch happen in the same season was definately bad luck but he has to look at the bigger picture of only 2 championships in 8 years Link to comment Share on other sites More sharing options...
thedarvelmarvel Posted February 8, 2009 Share Posted February 8, 2009 maybe ive missed something but what is the europa league? and will it deff. go ahead. Link to comment Share on other sites More sharing options...
Bluedell Posted February 8, 2009 Share Posted February 8, 2009 Quote from Murrray: “Unlike others, we have never revalued our property portfolio; it’s on our books at cost and we have blue-chip clients. We have one or two properties not let just now, and we will revalue them accordingly at the year-end but the majority of our stuff is relet,” he said. Quote from the audited MIH accounts: Freehold and leasehold investment properties were valued on an open market, existing use basis Hmmm. Link to comment Share on other sites More sharing options...
Bluedell Posted February 8, 2009 Share Posted February 8, 2009 No panic or real problems coming through on that interview - and to think some want rid of SDM sigh! Looks to me as if it's a plea to the bank for extra funding. Link to comment Share on other sites More sharing options...
rfc_no1fan Posted February 8, 2009 Share Posted February 8, 2009 SDM might be telling the truth, but he might be lying (Like he has done on numerous occasions before) He tells us what we want to hear and has been doing that for 20 years We could be in a financial mess, but due to his pride and ego he simply cant bring himself to tell us what is really going on behind the scenes. Link to comment Share on other sites More sharing options...
NorthernLights Posted February 8, 2009 Share Posted February 8, 2009 maybe ive missed something but what is the europa league? and will it deff. go ahead. Basically restructuring the UEFA Cup, I think. Link to comment Share on other sites More sharing options...
Jimfanciesthedude Posted February 9, 2009 Share Posted February 9, 2009 SDM might be telling the truth, but he might be lying (Like he has done on numerous occasions before) He tells us what we want to hear and has been doing that for 20 years We could be in a financial mess, but due to his pride and ego he simply cant bring himself to tell us what is really going on behind the scenes. how many times has murray said something and not went through with it though as for kaunas, no one can blame murray, if the uefa cup runners up WITH THE SAME SQUAD AND A FEW ADDITIONS TO IT, cannot beat a team of inbred farmhands then surely the blame goes right on the managers lap murray must have been fucking beeling at smiths piss poor tactics ESPECIALLY in the first leg at ibrox Link to comment Share on other sites More sharing options...
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