As has been stated here more than once the military tenet of ‘a bad plan being better than no plan’ is particularly apposite for the Ibrox omnishambles.
The plan that is extant in the stadium that John Brown played for is simply to keep going.
At the moment there is not a real discernible end game.
The onerous contract structure that Charlie and the boys put in place continues to send money out to various electronic destinations around the globe without very much in return.
The statement today about the Season Ticket sales of “approximately 17,000” lays out the success of the campaign against renewing.
I understand from well-placed sources that the figure can be broken down as just fewer than 14,000 for cash and 3,000 for corporate high end tickets.
The latter has been promised, but so far has not been paid for.
In estimating the average price of a Season Ticket I have used best case scenario to err on the side of caution.
Hence my figures are based on a £400 Season Ticket.
That means that, as it currently stands, RIFC/TRFC have taken in £5.6 million from Season Ticket sales and that is best case scenario.
That tranche of Season Ticket cash has to go a long way.
The unsecured Letham Loan is due to be paid.
That is £1 million with 15% added on.
Moreover, I am led to believe that there will be around £100,000 in fees for arranging the loan.
That brings the monies owed by the company to £1.25M to clear that debt.
I do not expect that the Easdale family will want their £500,000 loan paid back quickly if at all.
Once more their actions are that of genuine supporters who want to keep the show on the road.
Given that they bought in at the IPO price and provided emergency funding earlier this year then I think they should be receiving thanks from the supporters rather than online vitriol.
Then there are the bonuses that are due at the end of this season.
Mr Graham Wallace is due a bonus of 100% of his salary with the tax paid for him by his employers.
This bonus is a reward for the RIFC CEO navigating the business over the finishing line this season.
This clause was inserted in his contract in February and may have had some bearing on him remaining in post.
His annual salary is £316,000 therefore the overall cost to the company of this bonus, as they are picking up the tab for the tax, will be in the region of £600,000.
Of course it remains to be seen how many of those who refused to renew their Season Tickets will turn up on a match my match basis.
I have been told that the stadium that John Brown played for requires 30,000 paying customers every game there, whether Season Ticket or a pay on the day basis, to reach breakeven point.
With the IPO cash reserves gone even with a full tranche of Season Ticket sales then this venture would be in trouble within the next twelve months.
Any working capital raised through the Share Option will have to be used for an austerity programme.
Sources inform me that the company/club/celestial entity has engaged a football agent, based in England, to assist them in moving on the high earning players.
I understand that Kenny Miller will receive £2,000 per week if he plays, but if he is out injured he will receive £1,000. Moreover, he will not receive any of the normal perks that the modern footballer usually gets at a top flight club.
There will be no club car or accommodation provided to him.
Darren McGregor’s remuneration will not exceed those offered and accepted by Mr Miller.
The new wage structure at Sevco is actually what Charles Green had originally envisaged when the club was set up in 2012.
However the man with big hands was soon over-ruled by the combined force of Ally McCoist, Walter Smith and the then Chairman Malcolm Murray.
The two best paid employees at the two year old club are currently manager Ally McCoist and Lee McCulloch.
As of the 1st of July the latter will move from a weekly remuneration package of £15,000 to £17,500.
Sadly the iconic captain of the two year old club is currently having a problem with his back and one of his knees and obviously the fans will want to see him fit and ready for the new season.
As regular readers here will know I have consistently stated that Sevco has a choice to make between austerity and insolvency.
Whatever working capital they can garner from the Share Option will have to be utilised to cut the cost base without any delay.
If RIFC/TRFC could lose the cost of Murray Park and some of their high earning staff on and off the field then breakeven point could be in sight.
The plan for the people around the board room table is to keep the show on the road.
However they are smart enough to know that the status quo of a huge cost base and meagre revenues is not an option.
By close of business today auditors Deloittes wanted a ‘definitive spend’ from RIFC for the next twelve months.
Before they sign off on the year end accounts for the publicly listed company they want to see a plan.
