I WAS WRONG, THE RANGERS TAKEOVER ACTUALLY HAPPENED: WHAT IT MEANS FOR CELTIC NEXT SEASON
- BY LIAM CARRIGAN
- May 30
- 5 min read
Updated: Jun 9
So, it finally, actually happened. Within minutes of today’s announcement, I got a message from a Rangers supporting friend of mine, linking to the BBC website confirmation of the Rangers Takeover’s completion. He attached a one-line message: “When can we expect the ‘I was wrong’ blog post?”
Well, fine mate, ask and you shall receive. I was wrong.
I genuinely didn’t think anyone was naïve, or stupid enough to throw serious money at your absolute basket case of a club. But alas, that seems to be what’s happened.
Unlike most of the Scottish press, I won’t attempt to reinterpret history. I didn’t think this would happen, I called it wrong. However, I did so based on the information available and my own judgement.
Ibrox Fans Celebrate Rangers Takeover, But a Rude Awakening Awaits
I’ve been consistent in my position, for the most part, that this takeover doesn’t make sense, financially, logically or by most other reasonable metrics.
It still doesn’t, based on what I know. So, there must be something I don’t know.
I said that the Daily Record have been lying about this from day one, and much of that still remains true. The figures being bandied about: “50 million war chest”, “massive investment in the first team squad”, etc. Pure fiction, it won’t happen and it can’t happen.
Let me elaborate as to why, in Rangers’ own words.
A statement, published this afternoon on the club’s website, gleefully confirming the takeover and outlining their belief that this will “put Rangers back where they belong” contained a few, thinly-veiled but all too obvious home truths, for those willing to look for them.
First off, let’s talk about the level of investment.
Andrew Cavenagh’s consortium said in their first statement as Rangers majority shareholders: “As our first step, we are investing fresh capital into Rangers, which will be strategically deployed on and off the pitch.”
Rangers’ own statement on the club website reads: “The new leadership has committed to investing £20 million into the club at this time”.
Now, I’ll go ahead and assume this is the “fresh capital” to which Cavenagh’s group is referring in their own statement, after all there are no other sums mentioned. So, does this put Rangers back on an even keel with Celtic, with more investment to come?
In a word, no. Not even close.
In their last accounts, Rangers’ net debt was 26.1 million pounds. They also have a number of other liabilities, some disclosed, some not.
The most notable of these is their mandatory purchase of Oscar Cortez this summer for 4.5 million pounds. So that’s 30.6 million in debt, assuming no other liabilities, which we all know is not the case.
20 million is swallowed up instantly and there’s still a funding gap of at least 10 million, before they even begin to look at the costs of repairing Ibrox, paying up the contracts of unwanted players and so on.
Now, I’m sure Cavenagh and Co will invest more over and above that initial 20 million. At the end of the day, they’ll have to, but I don’t see it being much more. Even if it were another 20 million, it’s not going to take Rangers even close to Celtic’s level of financial security.
Also, there’s the small matter of this initial 20 million being subject to yet another share issue.
Pretty soon you’ll be able to take multiple trips to the Queen Street Station lavvies for the price of a Rangers share.
Then there’s this little nugget from Cavenagh himself which I think reveals the true nature of this takeover.
In an open letter to Rangers fans, he said: “While we recognize the importance of resources, we believe that thoughtful, disciplined investment, guided by a clear strategy, is the path to enduring success. Every decision, whether sporting or business, will be made with the club's long-term success and sustainability in mind.”
In other words, sorry Bears, this isn’t the sugar daddy you’re looking for. “Thoughtful, disciplined investment.” In other words, living within your means, austerity.
Indeed, this entire project can only work if austerity is the next step. Cavenagh’s aim will be to get Rangers back into profitability as soon as possible, and like the true vulture capitalist that he is, he isn’t going to give a damn whether it harms Rangers on-field competitiveness to do so.
After all, this is a man who has made his fortune coming up with new and inventive ways to help companies in the US pay as little as possible towards their employees’ healthcare coverage. Compassion and consideration for other people, aren’t his strong suits.
This isn’t all good news for Celtic though. We do have reasons to be cautious, and careful, in the months ahead.
For the first time since they came into being in 2012, Rangers will be run by people who actually know how to run a business properly, based on maximizing income, extracting maximum value from assets, and efficiency.
These are all areas where Celtic currently lag behind many other clubs. Much of our commercial, media and marketing operations are, frankly, amateurish for a club of Celtic’s stature.
Whilst there’s no evidence of direct financial input from the 49ers Group, the group’s CEO Jed Yorke himself confirmed that any potential tie-up with Rangers would focus on sharing “business best practices”.
On the business side of things, these people know what they are doing. Even without actually putting any money of their own in, their expertise and ability to generate revenue will be a massive asset to Rangers.
Celtic will have to step their game up in this area. We cannot continue to take fans for granted and expect that every new kit we drop every couple of months will automatically become a best-seller.
Don’t even get me started on Celtic TV. That whole operation needs to be torn down and rebuilt from the ground up. Even before today’s takeover, Rangers’ matchday media operation was far more professional than the dross Celtic TV serves up to subscribers every week.
In short, Celtic still have a massive financial advantage over Rangers and that isn’t going to change by monetary means alone. We generate more revenue than they do because we have a bigger stadium, we sell more merch and we have no debts.
Celtic cannot stand still on this though. For the first time in a generation, we will go into a new season against a Rangers side being managed off the park by actual professionals.
That is not a cause for alarm. However, it should be a cause for concern, and a call to action. We cannot be complacent, because the gap will begin to close unless Celtic keep moving forward.
