Green's double whammy of ticket prices up and wages down
In an incredible double whammy the Yorkshireman intends to raise season ticket prices by 20% year on year while bringing in a wage cap that will see player wages accounting for no more than 33% of the clubs turnover.
Green announced his intention for the share issue on October 12 but more than a month later there is no sign of a prospectus emerging to substantiate the wild claims that he has been making during his six months at Ibrox.
Reports of a new kit deal with adidas and commercial links to the Dallas Cowboys have yet to be backed up by hard evidence while other claims such as having three billioaire investors in the pipeline or renaming Murray Park appear to have slipped off the radar.
Despite claims to have £21m of pledges from supporters for the share issue Green has been hosting a roadshow in Edinburgh and London for potential investors with the latest claims made in an interview with his preferred broadcaster, STV.
Notes from broker Cenkos Securities, seen by STV ahead of the stock market flotation reveal the season ticket prices would return to similar levels as last season.
Cenkos’s projections state that although the company will run at a £3.5m operating loss in 2013, it could bring in an operating profit of £10.9m in 2015. Rangers chief executive Charles Green has endorsed the pre-initial public offering notes made by the brokers.
Speaking to STV about the figures Green said: “When you look at Rangers where it sits today, to have a valuation of around £30m, there’s no reason why within a couple of years we haven’t doubled that valuation at least.”
Green bought those assets from Duff and Phelps for £5.5m.
Backing up the claims STV brought in favoured financial ‘expert’ Neil Patey who confidently predicted last season that Rangers wouldn’t be liquidated.
Patey said: “I think it’s realistic to say Rangers could be a comparable value to Celtic in two or three years’ time when they’re back in the SPL.”
It appears that Patey is in the dark about calibre of directors around the boardroom at Celtic, both executive and non-executive, and the level of investment required to secure contracts with companies such as Nike and the work required to produce a scouting system that can unearth half a dozen players currently rated in the £8-10m bracket.
According to the Cenkos document Sevco ‘ will run at a £3.5m operating loss in 2013, it could bring in an operating profit of £10.9m in 2015.’
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