There’s Some Truth In Derek Llambias’ Bio At Rangers


We’ve been asked by a number of our readers to comment on Derek Llambias’ bio on the Rangers FC web-site, as it seems to contain some inaccuracies about what he did at Newcastle United.

derek llambias st james park

Derek LLambias when he joined Newcastle United

Here’s the short bio on the Rangers FC web site:

“Derek joined Newcastle Football Club in 2007 as Vice Chairman and Managing Director and in his 5 years stewardship he reformed and improved stadium facilities, expanded commercial activities giving N.U.F.C. an increase in turnover from £85M to £123M.”

“He took the club which was making significant losses to one of the top 20 most profitable clubs in Europe.”

The first inaccuracy is that he joined Newcastle as Vice Chairman in May 2008, and then became Managing Director after the departure of Chris Mort in June of that year.

He didn’t join the club in 2007 but he did stay five years until he resigned in June, 2013 after Joe Kinnear had been hired as the Director of Football.

Here’s Newcastle’s revenues since Mike Ashley bought the club in the summer of 2007.

nufc revenues

Note that in 2009-2010 we were in the Championship when our revenues were  cut almost in half.

So when Derek joined the club in 2008 our revenues for the financial year 2007-2008 were £99.4M, and when he left in 2013 they were £95.9M – which is a decrease.

So Derek can hardly say he increased the revenues when he was at Newcastle.

Here is where Newcastle were placed by Deloitte in their annual Money League, which reports the revenues of the richest football clubs in the world.

Financial YearDeloitte ML
Position
Revenues
€M
2007-200817125.6
2008-200920101
2009-2010nowhere near
2010-20112598
2011-201222115.3
2012-201325111.9
2013-201419155.1

So when Derek joined the club in 2008 we were already 17th in the Money League, and when he left in 2013 we were 25th in the Money League – a decrease of 8 places.

So there are some inaccuracies in the bio when you look at the facts of Newcastle’s revenues, and where we were positioned in the Money League over the five years Derek LLambias was Managing Director at Newcastle United.

However, what is very true in his bio is that Derek reduced Newcastle costs significantly during his time at the club, and we went from losing over £30M three years running,  to actually making a profit.

NUFC Profits

And you can see the dramatic drop in losses in 2010-2011 as an example of how Derek got Newcastle onto some profitability.

That probably was helped by Newcastle dropping down into the Championship and being forced quickly to cut  our costs, because of the significantly reduced revenues.

In Derek’s last year at the club Newcastle’s profits were up to £9.9M and we expect them to be four times that for the financial year ending 2014.

If the profits for the last financial year were indeed around £40M that graph above is going to look very good.

Now all we need to do is to get Mike Ashley to spend some of that money on the squad.

In conclusion, Derek LLambias was the prime mover in getting Newcastle’s significant costs under control and to be fair,  he did a very good job in getting Newcastle into some profitability.

Comments welcome.

You can follow us on our three social media sites below:



You can share this articleShare on FacebookShare on Google+Tweet about this on TwitterEmail this to someonePin on PinterestDigg thisShare on LinkedInShare on RedditShare on Tumblr

29 comments so far

  • dazzler

    Feb 19, 2015 at 12:22 PM

    Comment #1

    Technically, we were the 25th richest club when he was sacked. It was Lee Charnley who guided us to 20th in his first year as MD. So 100% of what he has said is horse-s***.

    The only time this bloke was ever honest was the time he was smashed in shark bar and letting his wobbly gob go AWOL.

    0
  • Greebol1892

    Feb 19, 2015 at 12:30 PM

    Comment #2

    Notice to all new readers….
    Welcome to the Rangers blog where you can find all you need to know about some club in Scotland.

    0
  • kakaobi

    Feb 19, 2015 at 12:47 PM

    Comment #3

    You need to reed my cv I’ve played at the highest level……yeah La Paz in Bolivia with a few locals while I was waiting for the train ha

    0
  • spitfire_

    Feb 19, 2015 at 12:55 PM

    Comment #4

    lambeezy is out of this world. He live in parallel universe where he is the queen and ashley is the king. And the laws of nature are under their command.

    0
  • lesh

    Feb 19, 2015 at 1:04 PM

    Comment #5

    Llambias probably was the prime mover in getting Newcastle’s significant costs under control and yes he did a very good job in getting Newcastle into some profitability – by stripping costs out by running the club with a paper-thin squad.

    However, when we take revenue into consideration, he did not maximise commercial income as much as he could have – by insisting on real money coming in from advertising rather than accepting or being complicit with Ashley’s free tat advertising as compensation of his interest-free loans. Interest free? They’ve cost the club dear!

    But the key to increased revenues and therefore profitability is not only cost cutting. Has Ed forgotten to refer to the positive impact of increased monies from the Premier League plus of course, TV money??

    Ed paints too positive a picture of Llambias and people have every reason to be sceptical about his role at Rangers.

    0
  • BandB

    Feb 19, 2015 at 1:07 PM

    Comment #6

    Lords of nature indeed.

    And yet the EGM they tried to shift to London is now to be held at Ibrox after a humiliating climbdown.
    I’m not surprised some readers want the Rangers topic banned.
    It seems to suggest that protest does work and we don’t have to just “wait and see” what they choose to do to us.

    0
  • geordie157

    Feb 19, 2015 at 1:11 PM

    Comment #7

    Even on my FM game Rangers may not go up, as Hearts and Rangers are miles ahead of them with two months to go in the season.

    On the subject of FM, anyone know if Inigo Martinez is as good in real life as he is on the game? imagine he’s got the usual spanish buy out clause of at least 30 mill.

    0
  • Belfast

    Feb 19, 2015 at 1:12 PM

    Comment #8

    He wrote it himself, I’d bet my life on it !!

    0
  • Average_Contents

    Feb 19, 2015 at 1:15 PM

    Comment #9

    BandB

    Here here.

    0
  • Belfast

    Feb 19, 2015 at 1:21 PM

    Comment #10

    If you see an article about Rangers on here just don’t read the article if it annoys you that much.

    You can’t really blame Ed for writing an article about an ongoing situation that involves Ashley and his old side kick.

    0
  • Belfast

    Feb 19, 2015 at 1:23 PM

    Comment #11

    It’s relevant news like.

    0
  • Average_Contents

    Feb 19, 2015 at 1:24 PM

    Comment #12

    Not a bad read.

    http://mobile.newsnow.co.uk/A/759350513?-11058:809

    Belfast

    Exactly. Some think we aren’t linked even when the evidence is staring them in the face. No, not our mikey. Scoff snort scoff scoff.

    0
  • sickandtired

    Feb 19, 2015 at 1:24 PM

    Comment #13

    Even more interesting that MASH Holdings (Ashley) published accounts stating that turnover from NUFC to Apr ’13 was 102.9 million.
    NUFC accounts to June 30th ’13 say it was only 95.9 million.

    0
  • sing in the corner

    Feb 19, 2015 at 1:26 PM

    Comment #14

    One fine day

    re: a couple of threads ago

    I tried for years to do that little shimmy / drop shoulder thing PB used to do,having watched him in wonder as a kid. But as a centre half, it wasn’t too pretty, and I just about dislocated me hips and fractured the clavicle in the process 🙂

    0
  • lesh

    Feb 19, 2015 at 1:42 PM

    Comment #15

    sickandtired

    £102.9m? £92.9m?

    Aw, come on, it’s only a trifling £10m and probably a simple case of a printers error and nothing to worry about….. Maybe the £10m could be a management fee charged by MASH for doing such a sterling job in running the Club?

    0
  • lesh

    Feb 19, 2015 at 1:44 PM

    Comment #16

    sickandtired

    £92.9m should have read £95.9 and thus £10m becomes £7m.

    Now that looks so much better doesn’t it and it just shows it’s easy done!

    0
  • TacoFlavoredKisses ForMyBen-arfa

    Feb 19, 2015 at 1:58 PM

    Comment #17

    anyone sickened by the fact that dummet is out injured because he came on as a defensive replacement for an attacking player late in a tied game?? Please get the pardew croney carver out!

    0
  • sickandtired

    Feb 19, 2015 at 2:01 PM

    Comment #18

    @ lesh – yeah, so easy apparently 😉 Posting garbage on a club website and no one even noticed.
    Reducing costs they have achieved, but we can see now the problem it brings when following the slash and burn principle.
    Player sales and tv revenue equals profit. Wheres the commercial and brand growth we heard so much about?
    Next accounts will have all the Wonga money in them as the last ones couldn’t possibly have. They showed an increase of only 3.3 million from year before.

    0
  • mindshaft

    Feb 19, 2015 at 2:04 PM

    Comment #19

    bored of LameArse chat – score prediction for Man City?
    I’ll start with 4-0

    0
  • Our Toon

    Feb 19, 2015 at 2:09 PM

    Comment #20

    B&B

    Spot on mate….what is happening at Rangers is very relevant to us and our future.

    0
  • BandB

    Feb 19, 2015 at 2:10 PM

    Comment #21

    We will NOT be parking the bus!

    Due to the shortage of fit players and cost cutting, we are not even taking the bus.

    Available players will instead be travelling to the match in a small convoy of their parents’ cars.

    0
  • Our Toon

    Feb 19, 2015 at 2:15 PM

    Comment #22

    The good news for us this weekend is that man city play Barcelona on Tuesday evening, they’ll have an eye on that game.

    0
  • Mister Tuff

    Feb 19, 2015 at 2:19 PM

    Comment #23

    It’s a pity some sort of anti Tubbs campaign could not be organised in time for the up and coming Parliamentary Committee Hearings.
    There would be quite a lot of anti Tubbs stories in the news -it would be a missed opportunity to highlight the misery/mis-management at SJP at the same time – basically try to ride the coattails of the hearings to raise awareness.

    0
  • Toon_Tom

    Feb 19, 2015 at 2:22 PM

    Comment #24

    Mindshaft @19…

    City will have one eye on their CL game next week so will probably rest one or 2 players, wont play with the usual intensity, will try to play keep ball without wasting too much energy,,,,,,

    So – 4-0 sounds about right!!!

    0
  • martoon

    Feb 19, 2015 at 3:19 PM

    Comment #25

    TacoFlavoredKisses ForMyBen-arfa @17 – I’m disapponted he got injured but I’m not sickened at all. As I recall Palace’s substitute winger was murdering us on the right and that’s where the cross came from for their goal. Putting on Dummett to try and stop this supply line was a perfectly good tactic – Carver has his limitations but I don’t think he can be blamed for this one!

    0
  • toon kk

    Feb 19, 2015 at 3:27 PM

    Comment #26

    Our Toon
    City may have one eye on there CL game, but it won’t make any difference to the result, we’ll still get a good thrashing.

    0
  • John Irving

    Feb 19, 2015 at 3:27 PM

    Comment #27

    Fresh financial papers for Rangers Retail reveal that from January 27, the Sports Direct founder and owner has been the “ultimate controlling party” of Rangers Retail, which handles the club’s merchandising and stores. It confirms the switch has been made from the previous controllers, the club holding company The Rangers International Football Club plc.

    The accounts reveal that while Rangers Retail turnover quadrupled from £1.2 million in the year to April 2013 to £4.8m in the year to April 2014, profits only doubled from £434,312 to £877,662. That is because the costs of the sales soared by eight times that of the previous year from £546,656 to £4.2m.

    It is understood most of that money has gone to Sports Direct as Rangers Retail is buying Rangers merchandise, including replica kits, gifts, polo shirts and track suits from the Ashley-controlled firm for use in club outlets.

    Sports Direct confirmed to the Herald that Rangers Retail has provided over £3.8m to Sports Direct in the year through such sales.

    Notes filed over Rangers Retail with Companies House reveal: “This transfer in ownership is a result of a loan issued by Sportsdirect.com Retail Limited to The Rangers International Football Club plc initially for £5 million.”

    Mr Ashley’s control over retail and trademarks comes as a by-product of his £10m emergency loan to Rangers made last month.

    New documents have come to light that show that a host of Rangers and club-related trademarks and logos including the famous

    RFC Scroll crest and the Ready logo are being held by Mr Ashley and Sports Direct as security against that loan which is payable on demand.

    Details provided by the board to the Rangers Fans Board reveal that Mr Ashley gave up the stadium naming rights he bought for £1 in 2012 in favour of 25 per cent of the Ibrox advertising rights.

    When Rangers Retail, a joint venture with Sports Direct, was confirmed by the club under then chief executive Charles Green in There’s a lot of miss information flying around.

    But in August 2012, it was promoted as enabling Rangers “to once again control its retail operation and give supporters the chance to buy direct from the club and in doing so, continue to invest in its future”.

    Rangers Retail run the club’s entire retail operation, including the Rangers Megastore, and hold the rights under licence to the club’s famous crests.
    When details of the Ashley loan first emerged, the RIFC board admitted it was forced to pay Sports Direct £1.6m, its share of a Rangers Retail dividend, over the “cessation of onerous leases” in relation to the closure of club shops.

    Under the previous 10-year retail agreement with JJB struck by Sir David Murray in 2006, Rangers accepted an initial £18m from the sports firm, while it was also guaranteed a minimum royalty fee of £3m per year until 2016.

    As a result, JJB held exclusive rights to design, develop, source and retail merchandise associated with the club.

    It has been confirmed that Mr Ashley has been called to give evidence before the Scottish Affairs Committee regarding the role Sports Direct played in the treatment of workers at its fashion chain USC.

    0
  • cyprus

    Feb 19, 2015 at 3:50 PM

    Comment #28

    Ed,
    You get me defending people I hate to defend man. You sure are nit-picking there on that CV.

    Did you (or I) describe your accomplishments completely accurately? 😉

    Here’s some more stats:
    80 percent of all resumes are misleading
    20 percent state fraudulent degrees
    30 percent show altered employment dates
    40 percent have inflated salary claims
    30 percent have inaccurate job descriptions
    27 percent give falsified references

    0
  • Jeff from Benwell

    Feb 19, 2015 at 3:56 PM

    Comment #29

    http://www.ft.com/cms/s/2/cfbddcce-9c12-11e4-a6b6-00144feabdc0.html

    Probably the best article on the Rangers debacle

    0

You must log in to post a comment.