The cost of failure at Sevco

It would appear that the chaps in the radar press are pushing strongly for Derek McInnes to be the new guy at Sevco.

No doubt he would do a good job at Ibrox.

However, he will cost money.

A well placed Granite City source told me this morning that a likely compensation deal would be in the region of £750k.

That’s £250k per year of his new contract.

Of course, that does not include the price of paying Aberdeen for the release of the Pittodrie backroom team that McInnes would demand accompany him to Ibrox.

At the time of writing, my information is that Senhor Pedro Miguel Faria Caixinha hasn’t been paid off.

He received his salary at the end of last week for this month.

Therefore, he’s probably still on the payroll.

However, I’m sure it will all be sorted out in a Quintessentially British fashion.

Such managerial failures can be costly.

If there is any intrepid stenographer out there who wants to try this journalism thing then they might want to contact the Admirable Warburton.

The following apposite questions would be value added:

Have you reached a settlement with your previous employer in Glasgow?

If so has any such settlement been honoured?

That could clear up a few things.

In the meantime, Sevco remains a loss-making business without a credit line from a bank.

38 thoughts on “The cost of failure at Sevco”

  1. Your a journalist Phil – and certainly one who is a cut above the SMSM (not a massive compliment – or challenge granted). So why don’t you contact Warburton and ask him those pertinent questions?
    I’d certainly be interested in the answers – as I’m sure would many others.

  2. I think that McInnes knows the game and is tactically astute. He’s run Brendan close a couple of times.
    His problem will be that a large section of the support are looking at his head to heads with Celtic and deem him not to be good enough, despite the vast disparity between the resources at Ibrox and Pittodrie.
    All it would take is a couple of defeats from Celtic, fall double figures behind in the table, and they will be calling for his head.
    In fact a drubbing in the Xmas fixture will be too much for their fans to bare and there will be loud cries of I told you so.
    He may not get another opportunity so no surprise if he picks up the baton.

  3. Well according to the Daily Rectum, Pedro is in high demand in South America but Rangers are delaying agreement of a pay-off deal. It’s obviously cheaper to keep paying him monthly until a sugar daddy comes along – rather than paying a lump sum now that they don’t have.

    How perfect would it be if Pedro took umbrigde at being denied new management jobs and chose to take the bull by the horns. All his football failures could be forgotten forever if he became the kaflik to bring the Big House down by taking his case to court and enforcing a judgement for payment – all from the comparative safety of any one of 43 Latin American cities in the top 50 of the world’s most violent.

  4. McInnes would be the cheaper option as apparently despite the parting of the ways Big Sam would still cost £2m because of a clause in his Palace contract.
    Chicken feed for Newco who have just announced a new scouting set up which must be setting them back a considerable amount of investment with pay back in developing players who can be sold on at a profit a few years down the line.
    Given the board/concert party must be pushing the limits of what they can provide in soft loans, it begs the question where is the money coming from?
    With King claiming to be skint I can’t see the others rushing to fill the gap as their original investment has disappeared down the Edmiston Drive black hole, never to be seen again.
    Add the cost of paying off Pedro and bringing in a replacement then it’s a serious amount of money. Wages are still being paid to the Hat’s recruits, even those on loan, and with Walker, Moult and McLean all Ibrox bound in January some of Pedro’s big earning recruits will be relegated to the bench/stand with little chance of anyone else taking them on.
    Whose money and do Ibrox and Murray Park remain unfetterred by securitys against the soft loans/ new money?
    There’s something going down, perhaps an announcement will be made as the annual accounts are published?

  5. Given that Warburton was in gainful employment within a few weeks, it is very doubtful that any payoff would be significant.
    The point being of course that compensation for breach of contract cannot put you in a better position than if the breach had not happened. One presumes he’s being paid by Forrest?

    Maybe ask Rugger Guy about Contract law

  6. Bayern tonight should be a treat. Yes, we are the underdogs but this should sting everyone to cheer the team on. And please, cut the booing. It helps no one and amounts to footballing ignorance. We should applaud good football regardless. Come in the Hoops!

  7. You’d like to think that McInnes would have more sense,Pardew too,but according to the Scottish sun ‘the iBoaks ‘club’ has been swamped with applicants.’
    Then again it’s the Scottish sun,not exactly known for grounded reporting of facts.But that won’t stop them,the saying is;’never let the truth get in the way of a good story’
    Myself,I find it hard to believe,but as previously stated,I may be a tad cynical.
    Thanks for the update Phil.✅

  8. I see the jackass is at it again today. Is this his way of an apology to Miller? Remember he was the man that suck by(And still does) his story that EVERY Sevco player was attacked at the cup final. By sticking to his story he was/is calling Miller and his good lady liers as they both said this was untrue! I also didn’t see any congratulations by jackass to the hibs team or management for that win. Imagine a “journalist” doing this in any other sport! Andy Murray loses at wimbledon to Grigor Dimitrov. A journo says all Andy and all his family and management team were attacked. Andy’s wife says he says this is untrue! Would the said “Journalist” be made to clarify what he reported! Seems not it Scotland and definitely not if it takes bad news away from Sevco. Long may their plight continue.

        1. So he got something right 5 years ago.Its already common knowledge to a few journalists that a member of a directors family paid Pedro his settlement money.I said on here a few years ago that i have a family member in the first team squad there.
          Anything he wants to know i can help him out.A certain journalist has no problems accepting my info and has had quite a few scoops over the years.
          As i said before im still waiting on the roofs to fall down,the FFP being breached,administration 2,3 and 4.
          Warburtons pay off drama despite the fact he dropped all claims etc etc.

  9. Phil, I’m pretty sure the magic hat and Mr Weir wavered any claim for compensation. I think the fact they waltzed into their new employer almost immediately probably helped Mr King.

  10. Older readers may recall the aptly named episode of the Vital Spark, The Quarrel wherein Para Handy ( Roddy McMullan ) and engineer Dan MacPhail ( John Grieve ) fall out over a new whistle and many comic capers ensue.
    At one point Dan lies that he has a new job with the Majestic Cruise Line and he has to change his money in to pesetas for travelling abroad…. Para Handy interjects
    …..”Potatoes”…. comedy gold indeed.
    Thinking of potatoes I do hope Padre Pedro is not paid in root vegetables, poor man, imagine having to work with the sort of peddlers that hang out round Govan and then not getting his just agreed wage.
    Surely the oh so right on Scottish Parliament should do something about this scandal…. this guest poor Padre Pedro in our country is being publicly humiliated…. nobody would get away with treating a dog like this.

  11. The real issue here which is the current elephant in the room is that administration doesn’t really solve anything for anyone. Most companies who go into administration with a feasible way out either have a load of debt they can’t repay or interest is crippling them, but the underlying business is otherwise profitable, or they need to shed some sort of money draining item like staff or rent for a building to make it profitable.

    TRFC/RIFC is just a money pit without these options. Stop paying the big earning staff (players) or pay them half their current wages and half your asset base can just walk out the door. Loose the big players and paying customers will stop walking in the door. They own the main assets so no rent is being paid as far as we can tell (what happened to the £268K per month??) Creditors are, in the main, of the non interest “soft loan ” variety so no real repayment issues there. It’s just the steady drip of more money going out than is coming in which will force admin if no one blinks.

    So admin solves nothing. The only “solution” is to have a fairy godmother waiting to take this basket of assets from RIFC, who could, in theory, sell TRFC as a loss making concern in a single sale to a new saviour and then liquidate RIFC with pennies in the £ to the loanees, who would now be off the hook, but skint. All shareholders would get nothing. Wouldn’t go down well I fear. The administrators should be trying to get the most money for the creditors who in theory again have to consider the break-up value versus trying to sell the operating company as a going concern. Green managed to buy the assets for circa £6MM which many at the time thought was a big steal compared to the break up value. However HMRC as the chief creditor didn’t want to break the club up entirely, so allowed it to move forward as a sale of a basket of assets at a pretty low cost. Given the creditors are all RRM, I can’t see a break up and piecemeal sale of assets on the cards.

    So my best bet, for what it’s worth, is that the ship will be badly holed and listing, but limp along for another few months until the next crisis occurs. This could be yet another manager gone, the stadium being declared unfit for use, DCK pulling out with demands for money lent

    1. Isn’t there still a dispute over the sale of the assets to Charles Green. I read somewhere the once the deal to go into administration was rejected a team of liquidators should have then taken over control of the assets to try and get maximum return for the crefitors, the assets should not have been sold by the administrators.

    2. Admin would solve the issue of paying off Warburton (and his team), Pedro (and his team), plus get rid of the big earning poor performers Pedro brought in who will now otherwise need an interpreter to communicate the new manager’s ideas (whoever that’s going to be).

      It means that those who provided the soft-loans will have to effectively write-off their losses, but it at least means they can stop digging a deeper hole for themselves.

      The 15 points deduction for the insolvency event won’t worry them too much. Had they achieved 15 points less last season, they’d still have finished comfortably in the top six – 10 ahead of Partick Thistle. In fact, they’d still have finished in a European spot. They’re currently 5 points better off than they were after 11 matches last season – with the next three matches very winnable.

      If their legal commercial morals are as low as I suspect, stiffing the last two management teams could pay for the compensation of the new one – i.e. they hire McInnes then enter admin.

    1. Very apt, considering his namesake coined a catchphrase (I don’t believe it!..), in a sitcom entitled One Foot In The Grave.

  12. Saw Chris Mac building up the ibrox role on the beeb. It would indeed represent a challenge for the Don’s man but a srep up from Aberdeen? A better chance to challenge Celtic? The place to meet his ambitions? I don’t bloody think so! CM also labels Celtic ‘uncatchable’ despite currently being but a solitary point ahead of the Dons. Yes, Celtic took them apart despite a heavy schedule however I see that as testimony to the job DM is doing at Pittodrie that they gave arguably their best performance of the season (so far) , shame they couldn’t replicate that form at the weekend against lowly Kilmarnock, one eye on tomorrow no doubt.

    1. I don’t think it had anything to do with tomorrow’s game….
      We were up against a team who parked the bus…and parked it very well I might add…before hitting us with a sucker punch.
      We tend to struggle against this type of set-up and Saturday was no different.
      Also 6 changes from the Pittodrie game….and that’s a lot of changes….didn’t help.
      We take it on the chin….and move on.
      I just hope we pay Bayern NO RESPECT tomorrow night….and get tore right in.
      If we go down….we go down fighting.

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