I suspect our new chairman and investment will be delayed

KGR98

KGR98

Well-Known Member
Due to the circumstances for some time I reckon think most clubs will be a mess until the epedemic is dealt with but we are supposed to be in a period of transitional change at board level and leaves me wondering if it may permanently affect the rumoured investment.(if it is more than just rumour)
 
KGR98 said:
Due to the circumstances for some time I reckon think most clubs will be a mess until the epedemic is dealt with but we are supposed to be in a period of transitional change at board level and leaves me wondering if it may permanently affect the rumoured investment.(if it is more than just rumour)
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Thanks for this update and valuable information.
 
As tough as this situation will become for folk in every day life, football wise it might deflate some of the ridiculous transfer fees and salaries players get which are the main costs for clubs. Maybe the whole market will correct itself to more sensible levels now that clubs will be scared that something similar might happen again.
 
I was thinking that myself about the investment. You don’t invest that kind of money in a situation of high uncertainty. I’m not so sure about the new chairman being delayed, but perhaps the plan was to announce both at once, get their tenure off to a positive start.
 
We have been operating at significant losses for the last decade. Even with European football and the match day revenue it brings we are still operating at big losses. There is no guarantee of that match day revenue at all in the summer when we were counting on having that revenue from qualifying matches.

Those big losses have up til now been stemmed by generous directors putting their own cash in. The country is already in recession and many industries and businesses are on the brink of going under. This is a serious, serious problem for us as a club, the most serious since the tax case. I don't think people on here appreciate how bad this could be for the club.
 
Tugay83 said:
We have been operating at significant losses for the last decade. Even with European football and the match day revenue it brings we are still operating at big losses. There is no guarantee of that match day revenue at all in the summer when we were counting on having that revenue from qualifying matches.

Those big losses have up til now been stemmed by generous directors putting their own cash in. The country is already in recession and many industries and businesses are on the brink of going under. This is a serious, serious problem for us as a club, the most serious since the tax case. I don't think people on here appreciate how bad this could be for the club.
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Every club will probably be in the same boat even the yahoos if no football is played for 6 months they would have to shell out £30,000,000 in wages alone with no income coming in.

I suspect if this is long term we might see emergency legislation from uefa/governments allowing players to be freed from contracts to reduce wage bills etc.

Rangers are still in the Europa as well so we might get potentially a cut of the pot if the tournament is finished for the season. If the tournament were to resume in the summer my guess would be we’d go directly into the group stage for next season as teams couldn’t complete last 16 ties and qualifying rounds at the same time.
 
wullieonthewing7 said:
Won't affect the investment, maybe how it is used that's all.
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I think that’s naive. At best it’ll affect the timing, the logistics of concluding a deal are made harder by the current circumstances. Investors are a lot less willing to complete investments because the financial models / prospectus they will have done DD on is now redundant. So they’ll either wait it out, discount the price or potentially decide they can’t afford it themselves because of other losses.

I’ve just withdrawn from a deal us and our backers (one of the largest investment firms in the world) have been working on for 4 months because, frankly, all bets are off right now. The target can’t tell us what their P&L will look like for the rest of the year or what their balance sheet will look like at the end of it. Makes it impossible to set a price everyone was comfortable with and, honestly we want to hold on to our cash right now in case this situation goes on for months and we need it to keep paying our operating expenses.
 
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