Definition: Shadenfraude - 'pleasure taken from someone else's misfortune'.
Rangers published their financial results yesterday and it does not make comfortable reading for the masses of Hades! Put simply, if they do not reach the Champions League proper this season, they are f**ked (what proper f**ked?)
Here is a link to the document in full.
http://www.plusmarketsgroup.com/story.shtml?ISIN=GB0007237380&NewsID=25453It does make for some interesting reading, especially if you cast your mind back to this time last season when Murray proclaimed "We could be debt free within 12 months"
No David, the only way you could have become debt free in a year is if you had qualified for last seasons Champions League! This statement is turned into something a lot more sinister when you take into account this comment from the above results.
"On the financial front, turnover from continuing operations decreased by GBP1.7m from GBP43.5m to GBP41.8m,
primarily as a consequence of non- participation in the Champions League, partially offset by the UEFA Cup"Now David, when you made your "debt free in twelve months claim" you said it knowing full well that your club would not be involved in the Champions League and therefore would have no way of clawing back your debt level! Naughty Chairman!
And now we cast our gleeful little eyes over the section that relates to retail operations and how much money RFC will get out of this ‘groundbreaking’ JJB Deal.
First of all if look at the results for 2006, Rankgers made 5.2M from discontinued operations. (i.e. retail) and this year they have made 3M (remember how we were told that they would earn 5M a year if they reached their targets? – They obviously didn’t reach the second tier of that agreement)
Therefore they have made 2.2M less than they would have done if they had continued their own retail division!
This of course is offset due to them reducing their operating costs by closing all the shops and laying off all the staff, or is it?
QUOTE: Net operating expenses reduced by GBP11.8m or 22% to GBP43.1m (2006 - GBP54.9m) largely due to the discontinuance of the retail operation
So if we assume that the main costs of the previous Retail operation (staff costs and property and rents etc) totalled £11.0m. The last set of accounts covering a full twelve months show that Rangers had Retail turnover of £20.7m. So we would have to assume that profits from Retail two years ago would be say £9.0 - £10.0m.
So in effect, their Retail profits have been reduced from 9M to 3M!
So one could assume that if their debt increased 3 fold due to the lack of Champions league football that should they fail to qualify this year, their debt will increase again and the losses will become greater! If their shirt sales do not pick up they will only receive the bare minimum payment from JJB! Time for another ‘tangerine’ strip Sir David?
Ha Ha. Ha ha. Ha Ha Ha Ha Ha Ha!!
Schadenfraude CSC!
Yours in Celtic
Clydebuilt