THE KING, on 05 February 2012 - 07:01, said:
I think rangers going under would be a good thing for Scottish football all the thousands of ex rangers fans who travelled from all over Scotland would now just go to their local clubs not to mention the staggering drop in domestic abuse.
from a poster on RTCblog
Quote
The table below shows the loss as I have calculated it if RFC do disappear from the SPL:
Club RFC loss (one game per season) RFC loss (two games per season)
Celtic £320,000 £640,000
Hearts £93,000 £186,000
Hibernian £112,000 £224,000
Aberdeen £140,000 £280,000
Dundee Utd £100,000 £200,000
Kilmarnock £135,000 £270,000
Inverness CT £90,000 £180,000
Motherwell £125,000 £250,000
Dunfermline £72,000 £144,000
St Mirren £75,000 £150,000
St Johnstone £69,000 £138,000
AN Other £79,800 £159,600
I have used a whole bunch of assumptions and averages to get to these figures however I’m pretty confident they stack up as the figures enabled me to get pretty close to the sales figures quoted in club accounts which would indicate that I am on the right track. If possible I will get the spreadsheets emailed to RTC and he can post them in full if so desired.
Points to note:
1. I averaged out attendance over the past three years as this would give a fairer picture rather than just one year and would pick up any shifts in attendance patterns at clubs.
2. I took published data for attendances involving RFC and compared that to three years of attendances at each ground in order to come up with a figure for RFC ticket allocation at each ground. This ranged from 8,000 at Celtic to 3,000 at the smaller grounds such as St Mirren.
3. I have spoken to senior contacts in Sodexo and Compass Group who are the two largest contract caterers in the world and they have run through the catering figures so I am happy that these are broadly accurate. In the end, they are not that important because clubs do not actually make a huge amount of profit on them and the sales from visiting fans is actually quite low.
4.I have not made any allowance for savings on policing costs, however, from the information I could gather this would save all clubs about £15k per RFC match apart from Celtic who would save about £75k per RFC match.
5. Critically, I have made no allowance for TV income. I included it in my pre-RFC bankruptcy model as a check to ensure my assumptions were about right (again they were). In the end, it actually doesn’t matter because all that we need to know at this stage is that the loss of RFC would mean an uplift of a minimum of £90k for all clubs.
6. If clubs can attract roughly 6,000 additional fans over a season (ie 6,000 additional people attending one game per season or 315 additional people per game) then this would negate any loss following the disappearance of RFC. I have made no allowance for any additional home fans.
At the risk of offending some, if we took the “traditional” bottom six (Aberdeen, Hibs, Inverness, Dunfermline, St Mirren and St Johnstone), these would stand to lose between £69,000 (St Johnstone) and £140,000 (Aberdeen) per annum. On the plus side, however, they would benefit from a saving on policing costs of £15,000 and should also benefit from a minimum uplift in TV income of £90,000. In other words, Aberdeen would be worse off by about £35k, Hibs would be about even, and the others would benefit by about £30k.
For the “traditional” top six, it would be worse because they would lose 2 RFC home games per season which would amount to a loss of £186k in the case of Hearts and £270k in the case of Kilmarnock. Again, each club would save on policing costs (£30K) and would benefit from a minimum uplift in TV income of £90k. In the current TV deal they would of course be playing for the potential of an uplift of £180k if they could get 3rd spot and an uplift of £1m if they can secure 2nd spot. Even jumping from 6th to 4th would net a club an additional £180k; suddenly even the potential losses of Kilmarnock and Motherwell pale.
The big unknown now is the SKY TV Deal and Neal Doncaster’s rather dramatic statements. I cannot for the life of me believe that it states or gives the impression that neither Celtic or Rangers can be relegated or in the bottom 6 – that would surely fall foul of all football statutes and I suspect would fall foul of EU legislation as well as national legislation (trading standards?).
I believe the contract will state that the contract is worth £x per season provided SKY have rights to broadcast 4 CFC-RFC games per season otherwise the contract will reduce by x%. Personally I believe that when you compare the SPL contract with the EPL or any other major league, it is actually pretty rubbish and cannot be much cheaper so if RFC disappeared we would be looking at an overall reduction of no more than 10 – 15% in the total value of the contract. That’s the kind of percentage that could easily be absorbed to allow for a more equitable distribution of income so that clubs would not be any worse off in terms of TV income.