The “Lawwell Letter” is trending everywhere this week. To elucidate, it is email sent to (among others) Peter Lawwell and Eric Riley of Celtic on 26 July 2012 by SPL CEO Neil Doncaster.
The email came with an attached copy of the Five Way Agreement (hereafter “5WA”, the deal between Sevco, Rangers, the SFA, the SPL and the SFL). Now that it has been made public, it seems safe to speak openly about what it all means for us as folk who believe in sporting integrity.
I would preface my comments with a caveat though. On the face of it, the Celtic Chief Executive appears to have misled the gathering at the recent Celtic AGM. He was asked by a shareholder if Celtic were involved in the Five Way Agreement. Lawwell replied, “No”, and gave same “No” response to the follow up question, “have you seen it?”
Given that a copy of that email was in the possession of a few folk before that AGM, I have to admit to being surprised by that answer – although even more surprised at the apparent lack of due diligence implied by the lack of knowledge of its content.
We have attempted to contact Mr Lawwell to ask him if he would like to comment on the apparent discrepancy between the evidence and his answer (and I am sure we are not the only ones to have done so). To date, we have received no response. Given the complete lack of acknowledgement of the existence of this anomaly in the MSM, we should perhaps assume that none will be forthcoming.
Perhaps there is an explanation (yes I know), but Celtic should know, like Rangers old and new have come to realise, that silence on these matters breeds deep suspicion and distrust.
Assuming for the minute that Occam’s Razor applies here, there may be an uncomfortable truth emerging for Celtic fans – that Rangers (old and new) do not have a monopoly on dishonesty. There is also an uncomfortable truth that should emerge for Rangers fans too – that as we have said all along, this has never been about just Rangers, but about the governance of the game.
If the Celtic CEO did lie to the AGM a few weeks ago what are the consequences? He broke no laws as far as I can see. One insider I spoke to said simply this,
“So he lied. So what? What happens now? It’s irrelevant”
That is of course absolutely true. As long as controlling shareholders are happy that Resolution 12 is buried, and that no deep inquiry into governance is held into the workings of the game in Scotland, the lie is nonpunishable, though it would be a mistake to believe that accountability is confined only to the corporate rules governing Boards and shareholders; the corporate veil of “I was only following company policy” can be readily challenged in the court of public opinion, which has no statute of limitations.
What all this demonstrates of course is that Celtic have been saying one thing to their fans and shareholders, nodding agreement in private meetings about how appalling Rangers behaviour was, tut-tutting over how amateurish the authorities were, and wringing their hands in frustration at what a sham the LNS inquiry turned out to be.
At the same time, they have done nothing, allowed small shareholders to spend not inconsiderable suns progressing the matter, and quietly hoped that the “appetite” for justice would diminish so they could get back to whatever it is they and the rest do when subject to little or no scrutiny.
Whilst ten in a row is on the table of course, they can get away with it. To Celtic fans right now, understandably, nothing else matters. But what if TIAR is derailed? Not a stretch to imagine that the Parkhead kitchen could get uncontrollably hot in that circumstance. And when the TIAR squirrel finally ends its scurry, in either success or failure, where will the fans attention be diverted?
Perhaps the arrogance that permits making (allegedly) false statements to a general meeting, and (allegedly) misleading shareholders over Res 12 is borne of the knowledge that the parachutes are ready to be deployed when either of the above scenarios come to pass? If TIAR is achieved or goes south, are they already prepared for an emergency exit?
Celtic have two major shareholders whose combined holding is over 50% of the club’s shares. Dermot Desmond and Nick Train. Desmond is now in his eighth decade and Train is reportedly having some business difficulties. Both may well be moved to get out anyway, but fan unrest would make their decision a whole lot easier.
And Lawwell himself is – if you believe the MSM – on the wanted list of nearly as many top clubs as Alfredo Morelos.
The foregoing of course is extremely “Old Firm” centric, and as the two biggest clubs in the country they certainly have the biggest impact on the game, culturally, socially and financially. However there is no get-out clause here for others.
We KNOW there is evidence of fraud surrounding the licencing issue in 2012. We KNOW there is evidence of a cover up over that, and the EBT-related registration issues for Old Rangers. We KNOW that the Five Way Agreement was signed by football authorities in the knowledge that it would rob their own rules of judicial authority with regard to compliance by RFC prior to 2012.
We also know that NOT ONE club has taken a meaningful stand against any of it.
Clubs are saying one thing to supporters and doing their best to derail those supporters’ efforts on the other. We can also infer (not unreasonably) that the folk who run the clubs think that we as fans have no right to interfere in how they run their operations.
As I said earlier, Celtic can do what they like whilst TIAR is live, but afterwards, however it ends, the fans and shareholders involved in Res 12 will still be asking questions. Celtic in particular know how fatal it can be to alienate their own fan base – a fan base that has flexed its muscles with devastating effect for the boardroom in the past. And it is the wrath of the fans of all clubs that will eventually see the charlatans get their just desserts.
Our job as fans is to continue to hold those who care little for the honour and beauty of football to account, to continue to press them on their refusal to deal with arguably the biggest sporting scandal in Scottish history.
The bottom line (which is of course what the folk in boardrooms care about) is this. They need us far more than we need them. As fans of different clubs, the sensibility of those of us at SFM recognises that the real battle, the real war, is not between rival fans or rival clubs, but between the arrogant, self-entitled clique who run our game; who lie for fun, who cheat and belittle the sport; and the good folk who make it possible for the game to prosper.
Resolution 12 is not just about Rangers – nor is it just about Celtic. It deserves to be embraced by every true football fan in the country. The Res 12 franchise needs to widened
Sooner or later the fans will demonstrate their unhappiness with the money men. They did it in 2012, and they will inevitably do so again.
Timtim 2nd March 2020 at 00:41
==========================
That’s quite a significant move in terms of Micromega (now called Sebata Holdings)
At a share price of ZAR 2.30, and at the current exchange rate of 20.19 ZAR to the GBP, then Sebata is only valued at £13.1m with King’s stake via Laird Investments worth £8.3m. That is meant to be King’s primary investment and source of wealth within South Africa.
It also makes any lending or investments that King makes reliant on his own and his family’s offshore wealth. I think we could see him try to sell his 25.6% stake in RIFC before too long.
https://twitter.com/ftamsut/status/1234070306228183042?s=21
The other side of the Bannergate argument.
@EJ
King selling his stake in RIFC is crucial not just to raise capital for himself but to distance his cold shoulder toxicity from Ibrox. Even if he stands down from the board as long as he has significant amount of shares he will exert his influence and control or at least be seen to have that ability . The problem for the rest of the board is who buys them . The shares valued at 20p is similar to Morelos valued at 20m both have a going concern warning , their real value is far far lower and nobody wants to buy them.
Timtim 2nd March 2020 at 00:41
Great investigative bampottery, Timtim. Pity the 'journalists' of the SMSM aren't of the same standard.
If yesterday's talk of Morelos, Gerrard, Cup exit etc was considered an indication of the Perfect Storm brewing, then that storm just got closer to perfection.
Imagine a loss making business seeing income streams diminishing while awaiting a court order(s) to pay massive damages, to then discover it's major investor, and biggest creditor, has just seen 30% knocked off the value of his main legitimate* source of funds…then imagine if that investor/creditor's only known alternative legitimate* source of substantial funds (sell (unsaleable?) shares and/or recall loan) was tied up in that loss making business!
*Legitimate in that the SA authorities know of these investments.
Timtim 2nd March 2020 at 09:49 @EJ King selling his stake in RIFC is crucial not just to raise capital for himself but to distance his cold shoulder toxicity from Ibrox. Even if he stands down from the board as long as he has significant amount of shares he will exert his influence and control or at least be seen to have that ability . The problem for the rest of the board is who buys them . The shares valued at 20p is similar to Morelos valued at 20m both have a going concern warning , their real value is far far lower and nobody wants to buy them.
________________-
Unfortunately (and not just for TRFC, but for investors everywhere) it's not just Micromega that's losing value rapidly, and not only King of the RIFC board who will be seeing his own portfolio rapidly diminishing in value. I wonder how many potential investors in a football club would, at a time like this, choose to invest in a loss making business rather than direct their available capital at a business with a profit making history.
@AJ the loss for Micromega (Sebata) in 12 months is over 60% , I cannot think why anyone would bother robbing him at gun point as he is clearly impecunious after all. King has clearly gone all in on Gerrard delivering success and flogging his shares to any gullible daft enough to buy them. It's all falling apart rapidly and his media lapdogs have the dog whistle primed and ready , today it looks like Alfredo's fault . King really has shot himself in the foot this time .
@AJ your last point is extremely relevant , this is a global crisis not one that just affects King . I believe the market has been ready to implode for a long time now and only QE and zero rates have stopped it . This Chinese flu is the perfect squirrel to deflect from the real architects of this crime, the parasitical bankers and money men that have bled us dry.
I'm trying to educate myself on the Hopp story.
This link gives an interesting bit of background
https://www.theguardian.com/football/englische-woche/2016/feb/26/hoffenheim-bundesliga-germany-julian-nagelsmann
My eye was drawn to this para. Somehow it reminded me of another unpleasant would-be bully boy in football:
"In German football the issue of tradition carries a lot of weight. Clubs will often be referred to by commentators, players and journalists as a “Traditionsverein” a badge of honour. In contrast, clubs such as Hoffenheim, and latterly RB Leipzig and, to a lesser extent, FC Ingolstadt, are generally tarnished as “plastic” clubs who are often reviled by opposing fans and even coaches and managers. As Hoffenheim became more prominent, so too did the scrutiny. Hopp was constantly forced to bat away comparisons with Roman Abramovich, arguing, and rightly so, that the Russian had not spent 15 years in Chelsea’s youth set-up. Things became so bad that Hopp felt compelled to write a letter to German football association demanding that the open “discrimination” towards his team be treated with the same consequences as racism."
There is a lot of resentment towards Hopp but he has certainly put his money where is mouth is. From my point of view it draws comparisons with Gretna and the late Brookes Mileson although on a much grander scale.
Ex Ludo 2nd March 2020 at 11:28
'…there is a lot of resentment towards Hopp but he has certainly put his money where is mouth is."
%%%%%%%%%%%%
The 'accusation' against Hopp is that like certain UK football people he has been involved in 'tejemanejes' ( translated as 'shady dealings') and has bought/bullied his way into unacceptable and undemocratic influence in German football.
Not, of course, that I think your post is implying anything other than that Miles spent heavily (and rashly!) in his push behind Gretna.
There was no hint of him using his personal wealth to suborn people in football governance or to make them his stooges, ready to yield to his wishes: as a football governance body nearer home was ready to do for a 'plastic' club.
Timtim 2nd March 2020 at 11:10
… I believe the market has been ready to implode for a long time now and only QE and zero rates have stopped it . This Chinese flu is the perfect squirrel to deflect from the real architects of this crime, the parasitical bankers and money men that have bled us dry.
===============
Absolutely, Timtim.
Could be a 'convenient' opportunity to allow the markets to correct themselves…
JohnClark@12.30
No slight on Mr Mileson’s legacy or memory intended JC. Perhaps a fairer comparison would be Sir Elton John’s involvement withWatford FC?
Timtim 2nd March 2020 at 09:49
King selling his stake in RIFC….
I was told, just before Christmas, that his shares were being hawked round various “high net worth individuals” in Scotland and Hong Kong. The asking price was 27p per share – yes that’s twenty-seven pence each. A cool 18m all in although he’s willing to sell to a syndicate. Apparently this not to be missed, once in a lifetime investment opportunity, found no takers back then.
Although my source was a wealthy individual my cynical, none gullible, self doubted the story. Besides which I’m a bit low on funds at the moment.
Allyjambo 2nd March 2020 at 10:48
Unfortunately (and not just for TRFC, but for investors everywhere) it's not just Micromega that's losing value rapidly, and not only King of the RIFC board who will be seeing his own portfolio rapidly diminishing in value. I wonder how many potential investors in a football club would, at a time like this, choose to invest in a loss making business rather than direct their available capital at a business with a profit making
…………………………………………….
Good point AJ, however, what if said "investors" are not invested elsewhere, but are "cash rich" and only cash rich because they are unable to invest in legitimate investments due to money-laundering issues.
Ailing football business could be the ideal opportunity for such an "investor", especially if generous pennies in the pound returns are agreed.
Couldn't happen in Scotland of course, not with the SFA's microscopic oversight of all things financial in our (whiter than white) game?????
Micromega (Sebata Holdings) are down 8.7% so far today (from 230 to 210) and have a bearish trend marker from analysts, in laymans terms King just had €1m wiped off his personal holding with more losses expected.
https://za.investing.com/equities/micromega-holdings-ltd-chart
Timtim 2nd March 2020 at 14:19
Thanks for the update, Timtim, changed my mind about my first overseas investment in Micromega
will nip down to the bookies instead
Sadly, while we are amused by the thought of that nasty piece of work King's losses I'm sure a great many honest and decent South African people will be losing out, too.
normanbatesmumfc 2nd March 2020 at 13:34
Dishonestly gained money at Ibrox, Norman B, to seek a financially driven sporting advantage? Will never catch on
https://twitter.com/mstewart_23/status/1234503838117306368?s=21
Change of plan? Really?
Yes Michael Stewart is missing on Sportsound. Never mind we have Darryl -I am the SFA – Broadfoot!
jimbo 2nd March 2020 at 18:13
''..Never mind we have Darryl -I am the SFA – Broadfoot!"
%%%%%%%%%%%
I was quite surprised , jimbo, when only Darryl took the view that not playing Morelos was a big mistake.
And the way the discussion went suggested to me that Morelos has no friends among the rest of the playing squad, and that Gerrard caved in to their wishes that Morelos should not play.
Gerrard might therefore have been in a bit of a cleft stick- play Morelos and lose the rest of the team, or don't play Morelos and lose at the very least the psychological advantage of his name appearing on the team sheet, and possibly a belated show of brilliance!
The dressing room at Ibrox cannot be a very happy place.
And I canny say that I'm happy at agreeing with Darryl, as I did the other day.
I see that Keith Jackson's piece in today's Daily Record has been targetted as a not so subtle plagiarism of Phil MacGiollaBhain's recent reporting in re Frodo.
When you read the piece it's obvious there's nothing subtle about it.
Interestingly it seems Oor Keef is an Equal Opportunity Plagiarist as his piece includes a mangled lift from an article Ian Archer wrote in the Glasgow Herald over forty years ago.
Ian Archer: "As a Scottish football club they are a permanent embarrassment and an occasional disgrace."
Keith Jackson: "An occasional inspiration but a permanent pain in the arse."
Lack of space must have prevented Keef from providing the next line from Ian Archer.
"This country would be a better place if Rangers did not exist."
I concur.
Ditto T'Rangers.
John, yes I laughed at DB being outnumbered about 3-1 in his opinion. The rest thought Stevie G was correct to stand by his principles by not playing Morelos. Broadfoot reckoned the importance of the game ahead was more important than doing the right thing.
Why does that not surprise me? Sounds like a Hampden way of thinking.
LUGOSI 2nd March 2020 at 19:11
Ian Archer: “As a Scottish football club they are a permanent embarrassment and an occasional disgrace.”
https://twitter.com/ClusterOne2/status/1234573395683049473/photo/1
A bit OT.
Just clicked on an AD, just to see how much.
How Much Is OxyBreath Pro?
It’s now only £37.99 (was £75.98, currently 50% discount).
At £37.99 a pop, how long before Mr king with an ibrox crest on it see’s there is money to be made,and it could be outwith Ashleys matching rights;-)
Cluster One
Special discount for ra bears, £16.90
Did any of the Jambos on here have the misfortune to read Graeme Swann's "report" of the Hearts – The rangers game in the beano today?
Over 2 pages and a good few hundred words he mentions Hearts twice and has no descriptive passages about the game. It was all about sevco's woes. Even though 2 and a half pages in the back of the comic had already been allocated to same.
No wonder the sales figures are below k100 sales per day.
HS
Higgy's Shoes 2nd March 2020 at 21:37 Did any of the Jambos on here have the misfortune to read Graeme Swann's "report" of the Hearts – The rangers game in the beano today? Over 2 pages and a good few hundred words he mentions Hearts twice and has no descriptive passages about the game. It was all about sevco's woes. Even though 2 and a half pages in the back of the comic had already been allocated to same. No wonder the sales figures are below k100 sales per day. HS
__________
I've not got a problem when a TRFC supporting hack fills two pages bemoaning his club's 'misfortunes'. It's certainly referable to them singing their club's praises, as they do at every opportunity or imagined/invented opportunity. I view it as no more than yet another indication of a coming Perfect Storm
I'd suggest that the question should be; are they (the hacks) being orchestrated by you know who, or are they beginning to write what they actually believe/suspect? If it's the former, then something is afoot, if it's the latter, then they (the hacks) are doing what fans with typewriters always do. Pointing the finger of blame to avoid facing the reality of their club's distress.
wrt Morelos, I believe he'll be back in the team on Wednesday, complete with a 'puff piece' that SG has sorted him out, and that all in the garden is rosy (misunderstanding, misunderstood etc etc).
In other words, there is a transfer fee to be got in the summer for him (£20m? more like £5m)
WRT speculation on what is behind current media comment and what may well be heading our way, I think we should start considering what the reaction to a Rangers* financial implosion should be.
I think there is a serious danger of the parties involved agreeing an admin and football “pre-pack” that extends the continuity lie.
The previous club wreaked financial and reputational havoc on Scottish Football and the new club is clearly cut from the same (but new!) cloth.
Why should other clubs struggle to compete with the financially doped who then shed their skin and assume an undeserved position in Scottish Football?
Are we heading for a season-end drama with all of the various court and other threads coming together and culminating in the plug being pulled? It wisnae us, it wis a’ thon big boys……
What are the implications should this happen and just what can be done by fans?
“No to Sevco 2”? Season ticket boycott? What else? Are there any legal steps that can be taken to thwart us being steamrollered again?
Scottish Football needs a strong Arbroath.
AJ,
Like yourself, I don't have a problem with a journalist who wants to write a piece about the trials and tribulations of his/her club
But, Graeme Swann was the records man reporting on the match. This he did not do. The pull out sections of the newspapers are traditionally where most of the match reports appear (unless a club is playing on a Sunday e.g. Celtic yesterday). He should have written a separate article and it should have appeared on the back pages.
If I wasn't at the game yesterday and couldn't watch Sportscene I would have had no idea what happened during the match if all I relied on was the match report in the record. Not even a mention of Steve Mclean's performance.
Any attempt at administration even as a pre-pack of TRFC (SC425159) will have to be after Close Brothers have been paid off. Otherwise they will totally control everything especially as they will have power of attorney over TRFC. At the moment I cannot see a “Satisfaction of Charge” notification on the Companies House website.
Do they have the funds to pay off Close Brothers? Also don’t forget the very litigious Mr Ashley.
The latest Morelosgate is an interesting one , I think Gerrard was right not to play him but wrong to say in public why he was being left out . I've said before about his release clause and the 20-30m valuations were aimed at attracting investment , making King's shareholding more attractive to buyers and/or appeasing creditors. Gerrards statement has certainly put a dent in that fantasy but it does put the blame on Morelos should he be sold in the future for his release clause price . The 30m valuations weren't working and were becoming a point of ridicule anyway , even some supporters are accepting they will be lucky to get 5m for him now and they should sell him asap so a little victory for the ministry of propaganda with that one. Morelos tho is on a long contract with high wages and should the sulk continue and the lbs pile up he will be tricky to shift and his presence will continue to undermine the squad . Tedermeatballs piece today was a no holds barred attack on Morelos so this whole situation may be orchestrated by King and Traynor to deflect criticism onto a handy scapegoat …..they do have previous . They will know if there is progress in Europe or any hope left for the league before March pay day arrives , Beware the Ides of March it tolls for thee …..as the saying goes
@Giovanni
They also have 5m owing to King and we don't know the exact terms and conditions of that loan except it is interest bearing and cannot be converted to worthless shares , the Close loan is a minimum of 4m , SDI could be 7-10m , Memorial Walls want 1.3m and Hummel and Elite will want a few million for their troubles as well. I have lost track of what is outstanding regards transfer fees . Is there still a shortfall to finish the season ? Long term contracts on big money were handed out in the hope they could sell players for big bucks or be compensated same for EPL clubs snapping up Gerrard and his backroom team .
redlichtie, IMHO, in addition to death and taxes there are 2 other certainties;
– the SFA is a stoopid organisation, has learned b*gger all since 2012, and is destined to repeat its mistakes, ad infinitum, as the sports governing body
&
– the 'next version of a 5WA' – to accommodate another Ibrox club/company continuation lie – has already been agreed.
(And probably agreed when Lawwell was away on holiday – or when he had 'a problem receiving emails and/or attachments' or some other concocted BS.)
I still think the possibility of an administration remains remote. Yes it is possible to offload the high earners, some onerous contracts could be broken and legal obligations ended, but the SFA/SPFL will insist that all football creditors are paid in full. As a group, the football creditors will be the largest creditors in any event, because of the outstanding transfer installments, so would make an insolvency event, including a pre-pack, quite marginal in terms of viability.
easyJambo 3rd March 2020 at 00:41
================
A couple of Celtic bloggers seem convinced their day of reckoning under UEFA FFP is on the horizon. How close is this really though, and how much of an involvement would the SFA need to have? Last year they released unqualified interim accounts basically saying 'aye, we're doing great, we're worth millions', and they sailed through the licence award process. Their audited accounts said they needed millions to get to the end of this season! Also, to what extent can they keep diluting existing shares and issuing new ones to offset debt? Why couldn't the mega rich Man City owners not just do that?
If it requires the SFA to start the FFP process we can forget it ever happening. Look at what they were prepared to overlook in 2011, and still are, even though their own process says there is a case to answer.
One thing I can’t understand is that according to the SFA there is no appetite, with the clubs, for a local FFP in Scotland. Why is that? Surely it would put the brakes on what is happening at Ibrox every year.
Likewise we are led to believe there is no hunger for Strict Liability in Scotland. Now that one I can just about understand. There are a few clubs who could be in trouble with that one. At least in the short term until their fans learned to behave.
As has been said many times the suits at Hampden are a parcel of rouges, but the clubs are not much better! They are one and the same in many ways.
AvatarHiggy's Shoes 2nd March 2020 at 22:51 AJ, Like yourself, I don't have a problem with a journalist who wants to write a piece about the trials and tribulations of his/her club But, Graeme Swann was the records man reporting on the match. This he did not do. The pull out sections of the newspapers are traditionally where most of the match reports appear (unless a club is playing on a Sunday e.g. Celtic yesterday). He should have written a separate article and it should have appeared on the back pages. If I wasn't at the game yesterday and couldn't watch Sportscene I would have had no idea what happened during the match if all I relied on was the match report in the record. Not even a mention of Steve Mclean's performance.
_____________
Totally agree with you about the 'match report' not being what it should be, but this has been the case for such a very long time, so long, in fact, that it was the case even on the last occasion I picked up a newspaper, and that was genuinely many years ago.
It used to be the case that we would read an almost kick by kick report, with description of how a player beat another with wordy descriptions of goals and saves, but many years ago that changed to an almost verbatim report of the post match interviews, match statistics etc, but no description of the actual play.
I also find radio commentary is quite similar with the commentators constantly giving their opinion on what's previously happened rather than describing the ongoing action, who has the ball, and where it is now.
I think it may just be the case that decent match reports and descriptive radio commentary are beyond the modern day newspaper and radio sports hacks to such an extent that they can provide little more than their own, or the interviewees', opinions of what's happened rather than actual descriptions of the football on show.
As to the case in point, I suspect Jim Traynor cares very little about Hearts and that mentioning them in handouts won't further his current agenda, whatever that might be. Get rid of Gerrard or Morelos? Or both?
easyJambo 3rd March 2020 at 00:41 I still think the possibility of an administration remains remote. Yes it is possible to offload the high earners, some onerous contracts could be broken and legal obligations ended, but the SFA/SPFL will insist that all football creditors are paid in full. As a group, the football creditors will be the largest creditors in any event, because of the outstanding transfer installments, so would make an insolvency event, including a pre-pack, quite marginal in terms of viability.
_____________
Surely what you are describing here is a planned administration as part of a rescue plan, to drop debt and carry on in their traditional carefree manner. But what if they have no choice? What if their debts are as bad as many suspect and they are hit with the anticipated damages? All it will take is for one creditor to demand a repayment RIFC/TRFC cannot make and, unless there is someone in the wings with a large wallet and no brains, administration would surely follow.
I know we've been here before, many times, and I'm sure you have put together a fairly accurate assessment of their current finances with which to gauge the possibility of survival, but they are a club/business that has been on the verge of insolvency throughout their whole history and have only survived these repeated crisis points with crisis loans. At some point it has to be the case that without a new sugar daddy the loans will dry up and an insolvency event becomes inevitable.
I totally agree with you that it's not in the club's best interest, or not as great an advantage as might otherwise be the case, to go into a voluntary administration due to the problems you describe, but it might be the case that it's better to jump into administration than it is to wait until pushed into one in which they might not have as much control. Of course, that doesn't mean they will jump.
@AJ Spot on, they have made a pre pack almost impossible due to the nature of the debts accumulated and the last thing they want is an admin event as it does little to help. As you say , administration isn't always a choice sometimes it is enforced by others demanding payment in the way David Murray did with Airdrie . "Nothing personal, it's just business" is what he said . The bottom line is if nobody writes the cheque it's game over. The Directors should also be aware that it is an offence to continue trading while insolvent and they can be held personally liable . It won't take much , a stadium closure for the naughty song book may just be enough for example.
Talk of a "pre-pack admin" has me wondering if the constant can-kicking in the SDI case re. quantum of damages, is a deliberate tactic to get them to a specific point in the season?
If I was Mike Ashley, I would have my legal team ready and prepared to serve a winding up petition, as soon as the "damages" award is announced, specifically to stop any attempted pre-pack going ahead.
As others have said, there would be many other issues and implications, (secured debt, football debts etc.) of the pre-pack route, but history tells us the relevant money men will be able to slither through any loopholes, shafting as many creditors as possible, while minimizing the damage to the team on the pitch.
They will do what needs to be done to remain within the bendiest of boundaries of the law, safe in the knowledge the footballing authorities will do everything in their evil powers to facilitate a soft landing. The other clubs will look the other way as usual.
Who knows, it might all come down to a supporter boycott again, however the problem this time would be Celtic going for the holy grail of ten-in-a-row and the likelihood of their support seeing this as more important than accepting Third 2angers into the Premiership. Would the other clubs fans care enough to rebel against the repeated corruption and even if they did, would the omnipotent blazers give a toss?
Intriguing times ahead…….
Allyjambo 3rd March 2020 at 09:30
easyJambo 3rd March 2020 at 00:41
As usual EJ points towards what would be the sensible option given the 'known' state of the Ibrox finances. However, as we have found over the years there is always a 'unknown' (or 2, 3, 4…) that finds its way into the accounts to eat up any new income stream, from things like this season's decent Euro run.
Perhaps now that King appears to have taken his foot of the gas a few sensible heads in the Blue Room will manage the situation better but I've yet to be convinced. The hubris and action of the man from South Africa may have left them with a very poor state of affairs to deal with.
Gerrard and his staff will be costing a fair bit, Kent cost £7m (a panic buy) and isn't showing any decent return for that outlay and similarly with the likes of Davis and Defoe, who are no doubt on good money, aren't contributing too much as age and injury starts catching up with them. The whole Morelos saga makes it less likely he will go for a decent transfer fee. Worse case scenario is the Colombian going nowhere fast and sitting doing nothing and taking his wage, which appears to have gone up year on year.
Even if it doesn't go down the financial toilet, on the pitch it looks like summer will have to be another review and rebuild job. That doesn't really help in terms of trying to build consistency and progress in terms of performance. On that basis domestic trophies and Euro success may well take another kicking.
PS in terms of press reporting of Saturdays Quarter final, in a hard copy, I saw Graham Spiers had a wee column in the Times yesterday with a title implying it was going to be about Hearts success but after one and a half paragraphs it all turned to discussing T'Rangers woes.
T'was always thus.
Exracted from The GT;
"[Gerrard] I am all in, I signed up to something here and I knew there would be real setbacks and this is when the club needs me most to stay on, fight and push forward on the progress we have made in a lot of areas whilst learning to ensure the mistakes don't happen again.
"I self-reflect, what I can and need to do better. I think if you want to survive at this level you have to bounce back."
…
Gerrard added: "Alfredo Morelos is available for selection, he has been disciplined internally and accepted this and we move forward. "It is important we are not stubborn here and we move on after these situations are dealt with strongly which it has been."
================
Hmmm…
Well, I suppose he is still a rookie manager, but the drama he created about his own future doesn't reflect well on him, IMO. A bit of attention seeking? He shouldn't have said anything after the Hearts match – except maybe just to apologise to the TRFC supporters?
IF TRFC bounces back immediately, and starts playing decent, winning footy – and Morelos keeps his nose clean and scores goals – then Gerrard might just ride this storm out.
BUT, that is also dependent on Morelos doing what he's told on and off the park – and Morelos making an effort to improve his relationship with his team mates…
I'd guess it will all kick off again anyway – just as soon as TRFC is punted out of the EL.
I’ve often read pieces on other platforms which are very similar to posts from here which have been posted days or weeks previously.
For example, I thought Phil’s piece of a few days ago & Keith Jackson’s of yesterday both contained ‘information’ (as they’re journalists I’d expect they’ve confirmed it elsewhere) very similar to what I’d posted as ‘speculation’ (I’m not a journalist, have zero resources apart from an enquiring mind and Google & am a poster-boy for Traynor’s ‘keyboard-clatterer & internet bampot’ meme etc.) on 14.02.20 on this board (page 7, if you’re interested!).
I don’t mind (much), but it’s obvious that others are mining contributions here & elsewhere to satisfy their need for content. In some ways, it’s a compliment…
The problem with speculation over the finances is that none of us knows the actual situation.
The last information published by the club came with the RIFC and TRFC accounts. They are only a snapshot taken at a given date, in this case 30 June 2019, so are already eight months out of date.
The post balance sheet information generally gives a better indication of the direction of travel, borrowing requirements, contingent liabilities etc., but even that is four months out of date.
Has their financial situation got worse over those four months? I would say no, mainly down to their Europa League success. Ryan Kent was only signed after they qualified for the group stages, so to some extent that transfer fee was covered by what was most likely un-budgeted EL income.
The big uncertainty is about funding the forecast deficit. We know that King put up £5m, but the anticipated new share issue hasn't materialised as yet. It may be that they have secured further shareholder loans, but we just don't know.
Should an insolvency event occur, it will almost certainly be the result of simply running out of cash to pay day to day bills, rather than a debt dumping exercise. However if the shortage is £1m or £2m, I would expect their previous backers to step up to the plate once again.
I think the litigation issues with SDI and others are several months away from being finalised with court dates still to be scheduled and the potential for appeals to follow, so there should be no unexpected bills to be funded this side of the financial year end. By that time we will be into a new round of funding with STs, transfer fees and EL qualifying games all being factored in.
It is indeed a perplexing conundrum: just how does RIFC/TRFC manage to keep limping along?
And back to my hobby horse…
we observed recently that a few hacks stuck their heads above the parapet to make negative comments about Traynor and his malignant influence over Scottish football.
Yet, unless I missed it, I’ve not seen one reference at all in the SMSM sports or business sections about the expected / overdue Interims from Ibrox.
And separately,
as another Bampot [?] alluded to previously, it seems that the unaudited Interims would also be provided to the SFA as ‘financial proof’ to support the Ibrox club’s European licence application for next season? I don’t know this for sure, so can anyone here add any substance?
easyJambo 3rd March 2020 at 11:28
You are, of course, totally correct that we are mostly speculating here and that the EL success will have gone some way to shoring up the sales they didn't make, but only time will tell if it was enough to make up for the £5m shortfall from the £10m requirement that King's loan partially covered. We also have to remember, though, that participation in European competition costs money and that bonuses will have been earned, probably quite considerable though most likely not due for payment until the end of the season depending on (individual?) contracts.
I suspect it may come down to whether or not they can repay, then renew at possibly/probably an increased quantum, the Close Bros loan, and that might depend on whether or not they can up the security. Is the loan not due for repayment this month?
Despite all that I say here, I do suspect they will somehow survive until they can start spending next season's ST money to start the cycle all over again, in all likelihood going through it a month earlier than last year.
@Jingso
you mention other bloggers mining information here, as you say it is a compliment ,this is from todays JohnJames article,
CS King is trying to punt his shares at 27p to prop up his hollowed out hulk Sebata Holdings PTE Limited which is dropping faster than the socks used to inflate the ‘egos’ of the Dubai carousers. It has lost 60% on the JSE since CS King gave it his full attention.
Nice to know JJ pops in here and hangs on our every word.
Timtim, That's exactly what I thought when I read that. Where have I read that before?
Just thought I’d mention in the passing (since it’s quiet!), there’s an Edinburgh Derby on tonight. I will keep an ear on it with our National Broadcaster. Hopefully ably assisted by expert punditry. Like Michael Stewart and Willie Miller.
I have just thought of a solution to the Coranvirus panic. If things get worse, put all domestic competitions on hold until eg. June. Cancel the Euros, EL and CL for next season to ease the congestion.
How do you think that would go down with UEFA?
https://www.bbc.co.uk/sport/football/51720125
Them good ol' boys at the SFA! So the Scotland manager travelling is "an unnecessary risk", but Petrie and Maxwell can't do without their jolly, so they will represent the SFA at the draw in Amsterdam.
Nawlite@15.29
Have the SFA not heard of t’internet. The whole thing will be broadcast round the world and once the draw is made a wee conference call/Skype is arranged to sort out the details. Perhaps the SFA are so acclimatised to self isolation that another 14 days is neither here nor there.
nawlite 3rd March 2020 at 15:29
https://www.bbc.co.uk/sport/football/51720125
Them good ol’ boys at the SFA! So the Scotland manager travelling is “an unnecessary risk”, but Petrie and Maxwell can’t do without their jolly, so they will represent the SFA at the draw in Amsterdam.
============
With declining attendances and sponsorships combined with increasing apathy towards the national team…
there should be austerity front and centre at the SFA Hampden offices.
Travel related costs are typically one of the first budgets to be slashed when times are tough.
…and why does the SFA think it needs to fund the salaries/expenses for both a CEO and, in effect, an ‘Executive President’?
It should be for one or the other.
Apparently the Sun today 'understands' that the SFA will finally make a decision within weeks on whether to refer the 2011 Rangers European Licence issue to CAS. Surely nobody now seriously believes there is even a slight chance the case will be referred? The Celtic Board now officially don't care, the rest of the clubs have never cared, and the media have never cared either. It's a completely open door for the SFA to push at.
Interims ? are they overdue ? last year they were out late February but in the previous years it was mid to late March before they saw the light of day so maybe there is no reason to sound the alarm bell just yet . Being unaudited and prepared by Mr King I'm not sure if there will be much valid information to take from them . Gerrard tho is back and wonders what all the fuss about him walking away is about as he never hinted at such a thing. Alfie has taken to twitter to state that he has taken his gripe water and the windies and burpees from the backroom nanny has worked a treat and he's going to be good for ever and ever. So everything in the garden is rosy once again . I'm not sure who exactly translated Alfie's tweet for him unless of course his crash course in English has been an unrivalled success. As the rollercoaster continues on its journey I expect a 5-0 thrashing of Hamilton with a Galactico hat trick followed by an open top bus parade then defeat at Ross County and someone seeing red ……….again.
I see that the SFA's new interpretation of it being ok to stand on someone lying on the ground has been put into practice by Kevin Clancy.
https://mobile.twitter.com/_heartsreport/status/1234933305822322694
EJ, a straight red. That's one for the compliance officer tomorrow.
Jimbo@20.43
All the Hibs guy needs to do is cite the Morelos precedent and with one bound he’ll be free. Ironically had he chosen to bound instead of stamp then no harm would have been done to his opponent.
StevieBC 3rd March 2020 at 15:52
…and why does the SFA think it needs to fund the salaries/expenses for both a CEO and, in effect, an ‘Executive President’?
==================
Why do you think anyone from that self serving, corrupt cabal would ever stop and think of being accountable to anyone. An utter disgrace of an organisation.
The Ibrox PR people ,or whoever it is who feeds Gerrard his lines just cannot avoid building in some Traynorist aggression .
Halliday(back page) in today's hard-copy of the 'Scotsman' quotes Gerrard as saying that he will not depart of his own volition….
" before I kicked a ball as a professional with Liverpool, it was a dream to win with Liverpool. I sacrificed my life [FFS!] to do that and when I signed on the dotted line to represent Rangers as the leader of this team ,that's what I committed to.You will see smiles, you will see emotion… you will see me going over the top…..You know what? Get used to it!" (snarl?)
What meaningless drivel, from a snow flake of a football manager who has clearly lost the dressing-room to his mediocrities having first lost control over a prima donna of a sulky wean.
Just a funny, [to me anyway
], wee story here;
=========
“…Rare football shirt stolen from National Football Museum returned”
https://www.bbc.co.uk/news/uk-england-manchester-51729113
=========
It has to be one of the ugliest footy tops to have ever graced the Scottish top league!
It’s easy to see why the ‘thief’ didn’t want to keep it.
It should have been burned not returned…
‘John Clark 4th March 2020 at 09:03
The Ibrox PR people ,or whoever it is who feeds Gerrard his lines just cannot avoid building in some Traynorist aggression .
Halliday(back page) in today’s hard-copy of the ‘Scotsman’ quotes Gerrard as saying that he will not depart of his own volition…’
##############################
I note that Gerrard has said that he has had a ‘one-to-one’ with Morelos. Are we to assume that Gerrard’s proficiency in rudimentary Spanish (or Colombian-dialect Spanish) is at least as good as Morelos’ reported ‘rudimentary’ understanding of Scouse/English? Another one to mark down in the ‘Aye, right, so ye did!’ column. (Incidentally, I don’t see another native Spanish speaker in the TRFC squad. I know that Candeias was Morelos’ translator when he was there. Who does it now? One of Morelos’ representatives, an outsider in the dressing-room?)
As for Gerrard’s ‘not quitting’ stance; I suspect that he’s spoken to his representatives & been advised that being dismissed is the better (or least-worst) option in his current mindset/circumstances/career path.
Still, Liverpool has lost two on the bounce: Gerrard may be thinking Klopp’s baseball cap is on a shoogly peg!
Jingso.Jimsie 4th March 2020 at 11:27
'…I suspect that he’s spoken to his representatives & been advised that being dismissed is the better (or least-worst) option'
%%%%%%%%%%%
Prescinding from the case of Gerrard, I assume that football managers' contracts carefully define the criteria(both those directly relating to football success and those other ones about personal conduct etc etc) by which a manager will be assessed, and the point at which he will be judged as having not met them, and has to be sacked. If that is the case, then surely being sacked would not give rise to 'compensation' payments? for unilateral breaching of contract by the club?
Is there anyone on the blog able to provide some general background about the difference between being sacked, quitting unilaterally, and leaving by mutual agreement when it comes to 'money' and the effect on a manager's future professional prospects?
https://twitter.com/islesy123/status/1235006011355750400?s=21
PR offensive goes into overdrive. Amazingly poor article by the Express.
UptheHoops 19.53 3 March.
Re The Sun Article and Res12.
The article states amongst other things that the charges only relate to the monitoring period.
This prompted a short discussion on the curtailment on Sentinel Celts and where it puts every supporter in Scotland if the SFA JPDT use legal advice as a reason not to pursue as they did with LNS.
From Sentinel Celts
That is no surprise. That has been the m.o. throughout …. decide what you want the outcome to be, and then frame the issues so as to arrive at the outcome they want. They are now just trying to bring this to a neat and tidy end.
And they (including Celtic) would have swept this under the rug years ago. And they would have done just that, if it wasn’t for you pesky kids.
=====
The pesky kids immediately drew Celtic’s attention to the curtailment of the period under charge in May 2018.
They further gave Celtic a week later HMRC documentation voluntarily provided by someone who had lawful access to it.
Celtic did nothing so the pesky kids got their lawyer at some cost to send the documentation to the SFA the evening of the JPDT in June 2018.
Three weeks later the SFA came out with the CAS clause which The Sun article refers to.
Celtic had the meaning of the documentation rehearsed to them in Aug 2018 and did SFA, nor answered questions put at 2018 AGM re CAS referral.
In Jan 2019 they refused to use the documentation resulting in the new Res12 2019 where they refused to take case from SFA to UEFA, even though as The Sun article says the SFA had surrendered jurisdiction under the 5 Way Agreement.
Celtic were provided with a professional accountants report confirming deception at play in the grant period, which is SFA territory, by a group of shareholders in Jan 2020 which Celtic passed to SFA.
The decision Celtic and Scottish football face is to double down and block any decision on legal advice relating to the 5 Way Agreement or come clean.
The decision football supporters will face is do we continue to support if they double down?
Had Res12 been passed in 2013 the corruption it has revealed since then would not have been known and supporters would not be faced with a decision each will have to make if the SFA double down.
Edit
I made my personal decision in 2013 when I came to the conclusion that Celtic were complicit in the corruption of our game.
I stopped buying my 2 season books.
I have proxied my shares to Auldheid and his fabulous colleagues from day 1 to continue to take the fight to the crooks.
Don't stop now guys, the whites of their eyes ate showing.
I see Mr MacGiollaBháin is saying that TRFC are looking for a junior from the Faculty of Advocates. I assume this must be the long forecast action by Hummel/Elite as Mr Ashley prefers the Royal Courts in London.
https://philmacgiollabhain.ie
Giovanni@15.05
Perhaps they’ll have more luck playing at home than travelling to London.
On the “Calling List” at the Court of Session today.
CA12/20 The Rangers Football Club Limited AG LBJ Sports Apparel Limited. – Anderson Strathern LLP
I think that means that TRFC has lodged a summons with the court. LBJ will be notified and given a period of around a week to respond, so we should see further court hearings scheduled in the near future.
From the Court of Session guidance notes
https://www.scotcourts.gov.uk/docs/default-source/cos-general-docs/court-of-session—notes-for-the-new-court-user.pdf?sfvrsn=24
Callings
To lodge a case for calling, you need to present the signeted Summons with the Execution of Service included at the back of the Summons, and a calling slip. The calling slip must include the names of the pursuer and defender, the case reference number and the pursuer’s agent’s name. Counter staff will check the service of the Summons, and the details on the calling slip. You will then be advised upon which day the case will call.
Defences
Defences are the defender’s pleadings in answer to the summons. Defences are due no later than 7 days after the case has called. Defences must be signed on the last page by counsel.
Auldheid 4th March 2020 at 13:09
Re The Sun Article and Res12.
The article states amongst other things that the charges only relate to the monitoring period.
This prompted a short discussion on the curtailment on Sentinel Celts and where it puts every supporter in Scotland if the SFA JPDT use legal advice as a reason not to pursue as they did with LNS.
=====================
In my view it is certain the SFA will hide behind the views of the fabled 'senior counsel' and bring this to an end. Celtic made it very easy for them to do that at the last AGM. Every other club and football writer in Scotland had already waved them through. The only hope left was Celtic finally being willing to take them on.
The whole thing is truly remarkable. It looks like every football club and every football writer in Scotland is actually okay with one club cheating, and that cheating being condoned by the SFA. Where on earth does that leave us?
upthehoops 4th March 2020 at 18:56
EDIT
It looks like every football club and every football writer in Scotland is actually okay with one club cheating, and that cheating being condoned by the SFA. Where on earth does that leave us?
———————————————————————————————
It is a sad state of affairs when the 'club like no other' turn out to be..well just like any other actually.Maybe some will enjoy Celtic fans discomfiture at the stance taken by the current Celtic board but fleeting smugness still leaves Scottish football betrayed by those in whom we, as supporters, have invested out trust.I say we, but like many others my financial support is now minimal.I was hoping that a crowd funded action of some sort would be forthcoming but that might be an action aagainst the Celtic board for negligence rather than taking aim at the real culprits, the SFA. I am not sure Celtic fans would turn so readily on a board on the cusp of delivering the hallowed ten. Has there been a criminal fraudulent action resulting in shareholder loss? In discussion with friends a referral to the authorities to check such a possibility seems to be enthusiastically backed.At the very least it would embarrass the SFA/Celtic and hopefully allow the issue to be properly aired in the public domain.
Referring back to my earlier post on the controversy over the F1 regulator apparently giving Ferrari preferential treatment subsequent to an investigation into potential wrongdoing, seven teams have now issued a statement on this 'deal' :
"We, the undersigned teams, were surprised and shocked by the FIA’s statement of Friday 28 February regarding the conclusion of its investigation into the Scuderia Ferrari Formula 1 Power Unit.
An international sporting regulator has the responsibility to act with the highest standards of governance, integrity and transparency.
After months of investigations that were undertaken by the FIA only following queries raised by other teams, we strongly object to the FIA reaching a confidential settlement agreement with Ferrari to conclude this matter.
Therefore, we hereby state publicly our shared commitment to pursue full and proper disclosure in this matter, to ensure that our sport treats all competitors fairly and equally. We do so on behalf of the fans, the participants and the stakeholders of Formula One.
In addition, we reserve our rights to seek legal redress, within the FIA’s due process and before the competent courts.
Just the kind of statement Scottish football cubs were no doubt itching to issue over the Rangers* saga.
Scottish Football needs a strong Arbroath.
gunnerb 4th March 2020 at 20:00
'…Has there been a criminal fraudulent action resulting in shareholder loss? '
%%%%%%%
To that question, gunnerb, has to be added the questions about whether the RIFC plc IPO prospectus ought not to have been authorised by the FCA as being misleading to potential investors and whether our Football authorities, by the creation of the Big Lie, might be seen to have in effect been party to quite a serious offence.
We have to constantly remind ourselves that our suspicions are that our football authorities may have been party to, and/or may have sanctioned, statutory criminal offences, not just piddling little 'sports' offences.
The entire 'saga' may be well into areas where football cheating and the breaching of tax legislation by a knight of the realm pale into insignificance when viewed alongside stock market 'manipulation' and conspiracy to defraud!
I'm not, of course, making allegations: merely positing the fact that there are serious questions to be asked of our Football Authorities ( which they are reluctant to answer) and of the FCA ( which they appear singularly unwilling to answer).
Does crime lie at the heart of our Sport ( as it appears to have done in some other countries, which the United states authorities dealt with when the criminals used US banks!)