Rangers: The Lehman Brothers of football?

Dramatic development with Rangers highlights the fact that the beautiful game may be on the verge of a systemic crisis.

Duff and Phelps, the administrators of Rangers Football Club have reported 'very good progress' within the first 24 hours of being appointed administrators over Rangers.

Despite the positive tone coming from the administrators there are growing concerns that British football is facing a systematic financial crisis.

Emmanuel Hembert, principal at A.T. Kearney and an expert in the business of football says:

"This dramatic development with Rangers highlights the fact that the beautiful game may be on the verge of a systemic crisis. The big question at the moment that needs to be considered is whether Rangers going into administration heralds the same advance warning that Lehman Brothers proved to be for the global banking industry?"

Rangers is one of Europe’s biggest football institutions, a club that that has a rich European pedigree and a global brand which is now filing for administration.

Most commentators highlight that player sales may be the best way for the club to pay off part of its debts as they are the most valuable assets that can be realised.

However, the value of a player is only what another club may be willing to pay for them.

According to Hembert the recent January transfer window seems to confirm this as spending was down and even for the majority of big clubs it seems cash is available in only limited proportion.

Hembert says:

"Furthermore, if Rangers – such an established club - does not honour its debts, it may threaten the foundations of the entire system. We run the risk of creating a vicious circle, whereby clubs refuse to lend money to each other through deferred transfer payments while creditors call in their money – which is dangerously reminiscent of what we saw in the banking world.

"This issue is becoming also prevalent in other countries as well, as seen in the recent conflict between players and clubs in Spain regarding unpaid salaries."

The A.T. Kearney EU Football Sustainability Study conducted in 2010 warned of the similarities between football and banking asking whether football was too popular to fail.

"The financial woes of Rangers seem to confirm they mirror in many ways. The question is now: is Rangers the Lehman Brothers of football?" asks Hembert.

http://www.dofonline.co.uk/content/view/6047/152/

 

Jezus **** Ghapist, near every comment you make is about Rangers.


You smelly, Edinburger, poofy, mincey, paedo, ****pig ****.

 

He clearly doesn't watch much SPL football.

 

Just when you thought ST couldn't be more of a paedo bore, he comes out with this

 

I know where you live.

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You're going to need to get someone capable of using that though, probably ex army with a mental problem.

You might know where I work, but you don't know where I live...

 

East Kilbride

Ha!

 

[NSFW]

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[/NSFW]

You wont see it coming, but it's coming.

<scarydevattack>

 

Difficult to disagree with well founded reason like this.

 

If you want to crawl up EDGE's arse you'll have to dislodge Nev first

 

No but for a small fee he could find out

 

dev where in glasgow you from?

 

I'd be very surprised if you knew where I live, especially considering I moved last September.

Pud, please stop posting my personal details on the forum.

 

Dev's from Garelochhead

 

Dennistoun Originally.

 

You've no worries, i'm just yanking your chain again.

 

wrong

 

D-toon

 

I resent that.

 

Incidentally, I was born in 17 Cleveland Street Anderston.

Guess who lived up the close I was born (long before me I should add).