Armageddon? What Armageddon?


Ecobhoy says: June 10, 2014 at 11:51 am Hi Eco, I think …

Comment on Armageddon? What Armageddon? by jockybhoy.

ecobhoy says: June 10, 2014 at 11:51 am

Hi Eco, I think you misunderstood, or more liklely I didn’t clarify my thinking. I think it is an academic exercise in that there will be no money for “creditors” – they will be shafted. If BDO’s main hope to get money for those owed it by the company that used to own Rangers is to sue other professional practitioners I thought that was more than hopeful – I didn’t factor in professional imdemnity insurers but even then…

I totally agree that due process should be followed. I additonally hope the precedents set, the loopholes closed and what I would deem “special favours” are exposed and closed for furture cases. Whoever they are – Hearts, Hibs, Celtic, NewGers or the next rich man’s toy.

The idea that clubs/companies/clumpanies can walk away from debts to creditors and just set up again round the corner is a joke and a disgrace and ANYONE involved in such a process – SFA, SPFL, “professional” (sic) practitioners shuld hang their heads in shame at the trust they have abused.

Not sure I can make it any cleaer than that…

jockybhoy Also Commented

Armageddon? What Armageddon?

Daily Record reports (my edits):
ACCOUNTANTS and lawyers have raked in a staggering £2m in 12 months as the bill for winding up oldco Rangers continues to soar…detailed in the latest six month report from insolvency experts BDO who were appointed as liquidators of the Rangers Football Club PLC after it failed to emerge from administration following Craig Whyte’s ruinous 10 month reign.

But (Jelavic fees still outstanding) windfall won’t come close to covering the spiraling costs of the on-going liquidation process – as BDO gear up for a potential multi-million pound courtroom battle with Collyer Bristow, the law firm who advised Whyte during his takeover in 2011.

…more than £1m has been spent on legal fees and outlays with more than £650,000 of it going to solicitors Stephenson Harwood, who are preparing the case against Collyer Bristow. The report says that a trial date is ‘currently set for the beginning of 2015’ but it is anticipated that a deal could be negotiated and an out of court settlement agreed.

… also carrying out a probe into the conduct of administrators Duff and Phelps, who sold the club’s assets to Charles Green for a knock-down £5.5m.

… BDO own running total for remuneration stands at more than £1m which, the report says, has already been drawn down.

… another source said: “BDO are doing a highly professional job in going after as much money as possible for the creditors. The fact they are ploughing so much into the legal cases is an indication of where this thing is headed. There should be a lot of very worried people out there because BDO are going after them like a dog at a bone.”

BDO admit, two years into the process, there is no sign of it coming to a conclusion any time soon.

Not only is the court action against Collyer Bristow still to be settled but an ongoing dispute with HMRC over the club’s use of the controversial EBT scheme also continues to rumble on….The report says: “If HMRC are successful in the appeal their potential claim in the liquidation could be significant and have a material impact upon any dividend that may ultimately be payable to unsecured creditors,”.

BDO report ends: “Due to the significant issues to be resolved in the liquidation, the joint liquidators do not expect to be in a position to bring this case to a conclusion for some considerable time. Further reports will be circulated to creditors within six weeks of each six month anniversary of the date of liquidation.”

The whole thing seems to be an academic exercise – uless there is significant money recovered from these various lawyers and insolvency firms, who I would think have insulated themselves from such action, there will be the square route of nada in the pot even before HMRC wins (or loses) the 2TT.

And “the club” rolls on – signing a 34-year old Scottish international @ some £400k a year…

Armageddon? What Armageddon?
The accusation that “there are some on here who have become institutionalised and think that they own the site” and then the references to RTC. Very deja vuey….

We ALL own this site, as we did RTC
It’s not Eco, it’s not you, its not me,
It’s the casual and the regular,
It’s the lurkers that are welcome here,
It’s the courteous and the gruff,
Posters of opinions or technical stuff,
It’s the Bhoys, the Bairns, the (occasional) Bears
We all post here because we care
About fitbaw’s future, whether lowlander or teuchter…
Whether Diddy team or the Mighties
Or the strong Red Lichties,
It’s for those that care and for those that dare
To shine a light into fitbaw’s dark places
To cause some red faces
At Hampden, Ibrox, even the Court of Session
The authorities need a lesson,
To understand that the piper is paid by all the fans
Not just purveyors of succulent lamb…

(my debut poem, with apologies to William Topaz McGonagall 😳 )

Armageddon? What Armageddon?
Huh. Lennon quitting is a surprise to me. In the frame for FIVE jobs apparently – Fulham, Leicester, Norwich, West Brom and West Ham” – West Ham might make sense. They need to fill the Olympic stadium and tbh it’s the only team I could just about handle him leaving Celtic for. Underscores again how even the championship down here is a bigger pond that Scottish fitbaw.

Recent Comments by jockybhoy

Who Is Conning Whom?
“Take away non-reoccurring expenditure like stadium repairs and Sports Direct compensation and add historical retail profits plus some extra football prize money” – so take away actual costs and add hypothetical revenue and hey presto the books will balance!

With financial acumen like that, you should be on the NewGers board!

The Vice Closes
After these distressed assets, only of use to a football team, actively playing in a professional league, were bought, there were immediately revalued:
“Revaluation increase on land and buildings is put at £33.98 million in total, though the club also notes if those properties were to be sold at that value the tax bill would be £7.8 million.
…Finance director Brian Stockbridge said: “A revaluation process was undertaken during the period; Ibrox stadium and Murray Park were revalued at £40 million, and intangibles (brand and er history? JB) were valued at £19 million on acquisition.”
Administrators of the oldco Rangers, Duff & Phelps, sold the “intangible” assets to Green’s consortium for £1.” Source:

Arguably the fact that it was sold to a football team who could make use of the facilities there was a greater value than £4.5m that wasn’t realised, but that may be being churlish.
What we do know is that all the assets of worth were bought for £5.5m and that included everything, property, brand, history, fixtures and fittings, seemingly playing contracts (people are assets too – I’ve been sold in my time! JB) as well as prize money apparently owed to the previous entity…
For the full breakdown I refer you to the sadly missed Paul McConville site:
its clear the assets were hugely undervalued when sold. 

The Lost Voice of the Armageddon Virus
Hasn’t Chris Sutton also said Alves is going to Ibrox? He probably was tipped off by someone and obviously King’s statement was well crafted. Annual PR overdrive.
Remember what they say “loose lips sell tix”

THAT Debate, and the Beauty of Hindsight
IIRC if a loan is received to a company doesn’t it appear on both sides of the balance sheet? As cash in the assets but as a liability in loans liable? Now the interest would make the liability higher than the loan under normal circumstances but if the loan is interest free it’d just be equivalent. Why would anyone do this? As has been said the requirement is for short term cash, the presence of longer term liabilities is apparently of little consequence. Unfortunately, as we know, these liabilities add up over time, until the straw breaks the camel’s back…
I am sure my fellow Essex boy EBC can steer me right on this.

BTW these lessons apparently unlearned down Ibrox (and indeed Hampden) way…

THAT Debate, and the Beauty of Hindsight
I wonder how much will be due to NewGers players in terms of bonuses for qualifying for Europe? If they do fall at an early hurdle in the Europa League then that may leave them further out of pocket, given costs incurred and low prize money…

About the author