A guest blog by Auldheid
In the previous blog (http://www.tsfm.scot/how-not-to-govern-scottish-football/), TSFM wrote to Harper Macleod raising questions on their advice supplied to the then SPL Board in February 2013 when the Lord Nimmo Smith Decision re use of EBTs and side letters was announced.
A reply was received from Mr McKenzie on 18th September the gist of which can be discerned in the following reply sent on 4th October.
Dear Mr McKenzie 4th Oct 2014
Thank you for your response of 18th September to my letter of 5th September regarding the consequences of information on the true nature of EBTs for Craig Moore, Ronald De Boer and Tor Andre Flo being withheld from your good selves when establishing in 2012 the Lord Nimmo Smith Commission into the use of EBTs and side letters by Rangers FC from 1999.
In recognition of the points you made about publishing your responses on line, your letter of 18th September will not be published although readers of TSFM will be able to gather from this reply which is being published what those points were.
Anonymity.
It is a matter of real regret that not only was anonymity required, but that Harper MacLeod were used as a conduit to try and elicit a reply from the SPFL or SFA. In terms of anonymity there were three factors at play:
- Security. The individuals asking the questions are aware that any raised concerning Rangers can attract threats from the worst of the Rangers support. We know that they are a minority but nevertheless, as we have recently witnessed, some are ready to turn threat into action. It is a condemnation of Scottish society that fear has played its part in preventing the truth being revealed about Rangers FC’s use of EBTs since 1999.
- Collective. The Scottish Football Monitor is made up of supporters of many clubs in Scottish football and is in effect a collective. The letters reflect to a large extent the thinking and feelings of the majority of readers. If a name is required for any future correspondence from the SPFL or SFA, then it can be addressed to Mr John Macnab, and a Post Box address can be supplied if necessary in addition to this e mail address press@tsfm.scot.
- Accountability. The final factor is the most important because it is why Harper Macleod were approached. It was not just because you were responsible for commissioning the Lord Nimmo Smith enquiry, but because there is absolutely no form of direct accountability by either the SPFL or the SFA to the supporters of Scottish football clubs. Correspondence can be ignored or the content not fully addressed and the customer who pays the wages of both organisations has no means of redress at all. Had there been some oversight in say an Ombudsman type role, it would not have been necessary to involve Harper MacLeod and indeed your good self. We sincerely apologise for doing so along with our thanks for actually responding to our correspondence, but we would like the reasons for our approach being addressed by the clubs who make up both footballing authorities. We hope you pass this particular point on to both SFA and SPFL.
Provenance.
You ask what the provenance is of the information/evidencethat you were given. The answer is we do not know, it was taken from material uploaded mainly in June last year for purposes unknown. Whilst its provenance may be in doubt there is no question as to the veracity of the content of the material itself.
This, when put together, sets out the narrative that prompted our correspondence. This question of provenance simply looks like an excuse for football authority not investigating what the material suggests took place when Duff and Phelps were asked to supply all documents relating to EBTs (no distinction being made) from the inception of the SPL.
Even if the material itself could not be used directly, it should have prompted questions that would have either corrected the narrative or established that the Lord Nimmo Smith Commission was indeed misled either by accident or design, when those documents were not supplied.
The SPFL must surely have the powers to seek the original documents from BDO and the SFA cannot be totally impotent in that regard either.
Then there is the personal knowledge of current SFA President Campbell Ogilvie to draw on. A simple statement explaining why he saw no reason to make any distinction between the irregular DOS REBTs that he launched in 1999 and the later MGMRT EBTs of which he was a beneficiary would surely help clear the air?
Existence of Side Letters.
We note that the Commission were aware of the existence of side letters to Moore, De Boer and Flo at the time of its decision of 28th February 2013 and these were taken into account when determining the appropriate sanction. The existence of side letters is not the issue that was raised in our previous correspondence, it was the nature of the EBTs that was the issue raised. In fact it would seem that the Commission themselves were confused by the switching from the irregular REBT ebts in 2002/03 to the MGMRT EBTs that are subject to further appeal with regard to regularity by HMRC.
The side letters to De Boer and Flo of 30th August and 23 November 2000 related to the DOS REBTs that they were both paid under. It is not known if they had subsequent side letters relating to the MGMRT EBTs , which is possible, but as set out in previous correspondence there were two distinctive types of EBTs and the side letters supplied relate to the earlier irregular type.
The position regarding the Moore EBT is interesting in that whatever EBT side letter was known to the Commission in February 2012 it could only have related to payments made to him under an accompanying side letter from the MGMRT ebts after 2002/03.
That Mr Moore was paid under the REBT scheme in 1999 is a matter of supplied evidence. However there is no record of any side letter in relation to the payment under the 1999 arrangement, which may or may not have been reported in the contract lodged with the SPL and SFA. It was the absence of any side letter in respect of this payment that prevented HMRC pursuing the tax due on it as they did for De Boer and Flo in what has become known as “the wee tax case. “ The evidence of deliberate concealment by the Murray Group of the side letters to De Boer and Flo allowed HMRC to seek repayment outside the normal 6 year time limit.
However the absence of a side letter or tax demand for Mr Moore does not mean this particular payment is not deserving of further scrutiny since
- It was an irregular payment that other clubs could not avail themselves of (as applies to the other two EBTs to De Boer and Flo)
- It is not known if it was reported to the SPL/SFA under the registration rules of that period.
Finally thank you for forwarding our letter of 5th September and previous correspondence to the SFA Compliance Officer. Hopefully any further correspondence will be between him and ourselves, first to our email address, later to a PO Box if required.
It is the hope of all readers of The Scottish Football Monitor that the SFA will stop hiding behind the provenance excuse, which is destroying any semblance of integrity and proper governance of Scottish football and they will use their powers to properly acquire the information that will set the record straight and in doing so start to restore some of the lost trust which is essential for the wellbeing of Scottish football.
John Macnab
TSFM
Martin says:
October 24, 2014 at 11:04 pm
‘..Graham Spiers pitches in:..’
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There is something utterly baffling in the way that Speirs and ( with gey few exceptions)the whole lot of the SMSM hacks and BBC pundits lose their critical faculties, drool at the mouth and at least metaphorically wet themselves with excitement when ‘rich’ men appear to be considering ‘investing in’ or ‘lending money to’ the failing shambles of a club:
A club which dishonourably claims identity with what had for a decade or more been a despicable and utterly dishonourable club that perpetrated the biggest act of football sports cheating this country has ever seen!
That we should have to put up with ‘sports-writers’ who ,eagerly, like the worst type of fans, have endorsed by their silent support and journalistic neglect, the acts of unsportsmanlike behaviour of what had been their favourites, is somewhat sad.
They have no shame- and no self-respect.
And accordingly deserve no respect whether as journalists or as men.
In my,(perhaps tediously oft-expressed but none-the-less valid) opinion.
This is old but I had not come across it before.
From The Lawyer
http://www.thelawyer.com/briefings/glasgow-rangers-appeal-lost-by-hmrc-but-the-case-continues/3024575.article
I repeat if the IP doesn’t reside in the AIM thing or the Fitba thing belonging to Sevco/Rangers people. Then Ergo the games up and Ashley will be having chats instead with CG/GW
Fitba team – what’s that got to do with it?
I also wonder what note is in Nash’s bottom drawer. Is it there’s nothing left?
Roddy News
http://www.telegraph.co.uk/sport/football/teams/rangers/11186814/Mike-Ashley-edges-closer-to-Rangers-takeover-after-forcing-out-Philip-Nash-with-emergency-loan-offer.html
Phil Nash into sensible stuff
Self centred money grabbers don`t like that sort of thing
mtp
According to the BBC website Graham Wallace is in Greece on a family holiday.
http://www.bbc.co.uk/sport/0/football/29761396
Is he making a Drachma out of a Crisis? 🙂
Scottish Football needs a good Skype connection.
Morning all. A wee bit grumpy this morning. Too much whisky last night and things to do!
I had a few drinks last night with an old colleague who is a Killie fan. He made a great point that the media complained the Premiership would be a walkover for Celtic, and now seem annoyed that it is not! Was nothing meant to overshadow the league below, which is clearly the greatest league in Europe?
Ashley Bingo: Cross off, ‘Vice-like grip on Rangers’.
Could the Ashley wing then be described as the ‘vice squad’?
I’ll get my toast and jam …
Taking my daily constitutional along the coastline paths of Ireland’s sunny southeast (sun doing its best to peep through this morning) I amused myself by listening to the BBC Sportsound podcast. I use the word “amused” advisedly lol!
There were Chris McLaughlin and Bill Patterson out-hyperventilating each other like Pollyanna on speed as they delivered this wondrous news for the Bears of money men forming a queue to invest. Not an ounce of analysis, not a syllable of insight, just a John the Baptist-like prepare ye the way of the saviour. We don’t know who he is yet but he’s coming.
Now a tub-thumper like Patterson can say whatever the hell he likes, including a fatuous observation that because Fergus only took a couple of years to catch David Murray’s Rangers, Sevco can reverse the process. What was that I said about no analysis?
But McLaughlin is a professional journalist employed by a broadcaster widely acknowledged as the world’s best. He has a duty to spell out the pitfalls and obstacles for his listeners. Not our Chris, not a bit of it. The end-game is in sight for financial woes at “Rangers”, he assured us. Just like it was the last time I listened to this buffoon’s reporting two years ago. Incredible. Nay, pathetic.
I’m sure I heard Jim Spence yelp, so hard was he biting on his tongue. Poor Jim, he has to pretend to take these clowns seriously. I’m sorry for your troubles, a chara!
Spoke to a director of a Premiership Club last night. “It’s a f** free-for-all!”, he said.
“People are laughing at our game, and the SFA, typically, are providing no leadership or direction.”
“Whatever you think of Rangers, they are a major component of Scottish football. This farce being played out in public reflects badly on all of us”.
My sense is that TRFC are fast becoming pariahs amongst the boardroom classes, and that King is seen as the pragmatic and temperate choice. Certainly King’s blue-blooded credentials may buy some conservative influence at Hampden, but I’d bet that Ashley’s wealth will buy a whole lot more.
There is a lot of fear at the SFA over who not to upset. On balance though, I’d say it’s far more likely that Ashleigh’s 10% restriction will be extended, rather than King’s fit and proper test pass threshold being reduced.
Torquemada says:
October 25, 2014 at 8:59 am
It was Craig Paterson on the radio last night Torquemada, and listening to his nonsense almost made me crash my motor on the way home from work, such was my laughter.
As for Chris McLaughlin! What planet do these journalists live on?
If only we lived in a world where the likes of Spencie and Cosgrove could say exactly what they wanted on the radio.
Factual broadcasting!
Unfortunately it will never catch on!
Torquemada says:
October 25, 2014 at 8:59 am
I heard this analysis as well last night from the state broadcaster & actually brought in my Wife just to say,”please listen to this pish”……and of course, it is one of the most disreputable aspects of the whole Rangers saga,since it all began,the obfuscation,the implantation,the hogwash & even darker arts of propaganda here at play by organisations & institutions who have a clear public service mandate to do so much better. I speak of course of Radio Scotland.
Their main journalists like McLaughlin, Lamont et al are utterly without a clue,are utterly bereft of even the slightest semblance of the subtleties required to report on what is admittedly a complex & fluid story. It is embarrassing to listen into the stammering, the hesitation & pauses as they attempt to fill the air time with their expert analysis, all the while, both consciously & unconsciously communicating clearly,”I don’t have a fuc*ing clue”
What on earth do they do in terms of research? For example, a cursory glance on this website would educate them massively. Is it simply the case that they have direct lines to the main players & just regurgitate whatever nonsense & pap is passed to them breathlessly reported as “breaking news” & ‘exclusives”?
Whatever it is, clearly it’s not only Rangers fans that are been taken for mugs, it’s every one of us who pay our licence fee & are entitled to expect much better from the state broadcaster!!
rougvielovesthejungle says:
October 25, 2014 at 9:15 am
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Craig, of course! Mea culpa! Another brain freeze.
Fortunately, I don’t seem to get them as often as poor Craig!
twopanda says:
October 25, 2014 at 4:57 am
Roddy News
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RF does seem to make more of an effort than most of the ‘journalists’ covering this story and I’m not aware that the following detail of Ashley’s offer has been covered before….
“the package, said to be worth up to £10 million but with only £2 million offered up front”
and this regarding the naming rights…
“It can also be revealed that although Ashley bought the naming rights for Ibrox for £1 from Charles Green in 2012, Nash negotiated an additional clause with him earlier this year to the effect that they would not be activated this season.If, however, Ashley succeeds in getting two of his own people on to the plc board, the clause can be scrapped.”
Big Pink says:
October 25, 2014 at 9:01 am
6 0 Rate This
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Very interesting. As several have mentioned the SFA are nowhere to be seen, not a peep unless justifying sky-high ticket prices at Scotland matches.
Apropos Ashley, it’s not all bad PR. From The Guardian:
“Even so Newcastle remain in the bottom three. “Results have got to improve,” said Pardew, who feels his players’ morale was bolstered when Mike Ashley, the club’s owner – who has remained loyal to his manager through considerable recent adversity – visited the dressing room and celebrated with them after the 1-0 win against Leicester.”
http://www.theguardian.com/football/2014/oct/24/alan-pardew-newcastle-united-crisis-injuries
mcfc says:
October 24, 2014 at 9:14 pm
Buffoon Tourette’s Syndrome
Ally’s latest brain leakage confirms his diagnosis of this rare and debilitating affliction. Yes, on the day the Newcastle United owner, who will determine the length of Ally’s tenure and the velocity of his departure, makes an offer the company cannot refuse, Ally decides to remind everyone he has strong emotional ties with the Mackems. Classic BTS behaviour.
http://www.scotsman.com/sport/football/english/ally-mccoist-sympathy-for-former-club-sunderland-1-3583341
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Perhaps Ally simply wants sacked so he can walk away with his compensation package intact.
Being sacked gets him off-the-hook of the ‘We don’t do walking away’ pledge although it would appear this season alone circa 13K supporters have done that by not buying their STs.
Interestingly I am detecting a bit of a shift recently amongst Celtic supporters I know with more actually looking forward to playing against them. However it still appears that the vast majority would get even more pleasure with another Ibrox financial collapse.
Of course I don’t suppose the two are incompatible depending on how the admin is ‘handled’.
And, of course, Ashley might do just enough to keep Rangers ticking over but I simply can’t see him putting in the millions required to rebuild a team for the Premiership and Europe. That won’t generate enough extra profit in kit sales to nake it all worthwhile financially for him IMO.
Perhaps Ashley is just enjoying the experience of reliving his exciting earlier days as he cut through financial competitors in his swashbuckling and cut-throat manner.
He’s probably become bored as his financial fortune has steadily increased with his experts handling most of the mundane mechanics of switching share funds between companies to steadily grow his personal wealth.
So Rangers really could be a last chance to return to his youth and show that he still has the bottle to totally rout any opposition deluded enough to oppose his blitzkreig technique. It’s the type of thing which will send ‘messages’ to other businessmen that when Ashley comes calling it’s easier just to sell-up and let the tanks roll-on.
Ashley’s tanks don’t fire blank cheques and it’s increasingly looking that King doesn’t have any any heavy weaponry to defend his beloved Ibrox turf.
For me the question is increasingly about what happens once Ashley wins the war and the adrenaline and excitement evaporates. Quo Vadis Rangers?
Roddy Forsyth’s take on things in the Telegraph also includes a snippet of the Accounts being ready to go to Delloites and showing an operating loss for the year of just under £9M down from £14.4M.
That may sound like a good improvement, but the operating loss for the first half of the year was £3.6M, meaning the loss for the second half of the year was over £5M (approx £850k a month). The figures may also have been massaged with some income from their shirt sponsorship deal with 32Red appearing in the 2013/14 accounts.
Who knows what they have spent in first 4 months of the current period, but they no longer have the time to implement a share issue before the money runs out, hence the apparent urgency for further short term loans.
It is clear for all to see that Rangers are a financial basket case – the company that operates the club more likely than not is structured to suck money from the paying fans into high fees for services (rights to use the club crest etc.)
Loans to keep the team playing football on the park will come at a high price, making long term recovery of the club exponentially more difficult than it already is.
There is no pain free solution now.
If the SFA had any integrity, it would step in and demand answers to a range of questions: finances, who owns what, under what terms.
At that stage options for moving forward in a sustainable way can be assessed. This could include starting over, building the club progressively.
Otherwise, this saga will go on, without end. Scottish football will be tarnished for a long, long time.
I am no fan of Rangers – I am a fan of football. The SFA need to do what they are set-up to do: govern for the betterment of the game.
parttimearab says:
October 25, 2014 at 10:08 am
RF does seem to make more of an effort than most of the ‘journalists’ covering this story and I’m not aware that the following detail of Ashley’s offer has been covered before….
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Another detail revealed by Roddy, which I haven’t seen elsewhere, is that it was Nash who approached Brian Kennedy to seek alternative funding.
Now that Nash has gone, what does that say about the bold Kennedy’s chances of success?
Chris McLaughlin @BBCchrismclaug · 35m35 minutes ago
Following talks into the early hours, all indications from Ibrox are that the Mike Ashley deal will be ratified over the weekend. #Rangers
It does seem a no brainer, but it also suggests that Laxey and the other institutional investors have reluctantly conceded ground to Ashley.
The Scotsman this morning re-prints 3 of the late Glen Gibbons’ articles.All 3 are very much worth a read.
Of immediate relevance to the saga is the first piece:
” 2 February 2002
‘Hugh Adam shakes Ibrox pillars with warning of bankruptcy’
Do have a read at what Adam said then ( and remember and reflect on how he was ignored by the horde at a time when sanity of a sort might just have been imposed on the megalomaniac, ‘one-party state’,that was the rogue,SDM.
Adam does,incidentally and regrettably, betray some hint of disgruntlement that “… while ‘the Irish ALL’ [my parentheses and capitals] have an allegiance to Parkhead, there are millions of SCOTS who not only don’t support Rangers, but actively dislike them.”
This is the link (I hope! Her ,much older, Majesty is more techy than I am, it appears with her twitter skills!)
http://www.scotsman.com/sport/football/spfl/glenn-gibbons-from-the-scotsman-archives-special-1-3583611
John Clark says:
October 25, 2014 at 10:36 am
5 0 Rate This
The Scotsman this morning re-prints 3 of the late Glen Gibbons’ articles.All 3 are very much worth a read …
http://www.scotsman.com/sport/football/spfl/glenn-gibbons-from-the-scotsman-archives-special-1-3583611
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Truly amazing, really. It’s all there — even the debunking of Charles Green’s idea of a 500m potential global fan base! There’s no doubt whatsoever that the :slamb: -eaters are in large part responsible for the widespread ignorance of the true facts. In my eyes that makes them complicit in the whole affair.
Btw, didn’t read disgruntlement (not in a negative, anti-Irish sense), apart from bemoaning the fact that his club had such a poor international/North American support compaired with Celtic. C’est la vie — any normal person looking objectively ‘under the bonnet’ (aw naw, noo ah’m talkin in clichés 😆 ) of both clubs’ history would probably find far more sympathetic sentiments in the East End.
Looks like Ashley & The Offshore Mob have won, the pillaging will only get worse
“keith jackson @tedermeatballs 3m3 minutes ago
BREAKING: Ashley’s £2m loan deal approved by RFC board over £3m offer from Kennedy. Easdale, Ashley and Laxey drove it through.”
scapaflow says:
October 25, 2014 at 11:05 am
“keith jackson @tedermeatballs 3m3 minutes ago
BREAKING: Ashley’s £2m loan deal approved by RFC board over £3m offer from Kennedy. Easdale, Ashley and Laxey drove it through.”
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£2m…just kicking the can down the road again (and a what a well dented can it is now)…presumably enough to get a going concern on the accounts?
scapaflow says: October 25, 2014 at 11:05 am
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Now we can look forward to the continued boycotts from the pro King and anti Easdale/Ashley lobbies.
Things may get interesting if gates fall further towards 25k, I can see Ashley coming out and saying to the Bears, “either you turn up and support the team and buy (my) merchandise, or I turn off the life support and the club goes bust”.
What would be the reaction? If fans don’t respond, an insolvency becomes inevitable and new Blue Knights could come to the rescue, or do they act like sheep and do their master’s bidding. It is a bit of a quandary for the hard of thinking and a split fan base.
Bears who buy tickets should be aware they`ll be paying off debt & interest for decades,
That debt being run up by trouser lining spivs
And on-going pillaging via onerous contracts
All because spiv groupings terrified of CoS proper administrators looking under the bonnet
mtp
easyJambo says:
October 25, 2014 at 11:13 am
EJ I’ve come to the reluctant conclusion that killing the company, and starting again is the bears only realistic option
What price sportsound starting later today with a sketch:
(Sound of shop entrance bell)
Tom English: hello I’d like to buy a cake. That one looks grand.
Richard Gordon: it’s £50
TE: I’ll only need the half
RG: ok
TE: I’ll give you £20
RG: eh, naw.
Well that’s the Dave king story covered. Now let’s talk about Hamilton.
parttimearab says:
October 25, 2014 at 10:08 am
“the package, said to be worth up to £10 million but with only £2 million offered up front”
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Mike’s not daft – you don’t give a junkie the key to the methadone cupboard.
For anyone looking for an insight into the future relationship of The Rangers to Mike Ashley, may I recommnend “I’m Waiting For My Man”, Velvet Underground.
“Feel sick and dirty more dead than alive”
“First thing you Learn is you always gotta wait”
“He’s got the works, gives you a sweet taste”
“I’m feeling good, I’m feeling oh so fine. Until tomorrow, but that’s just some other time”
It is certainly beginning to look like Ashley will become the major benefactor to TRFC, though not because he’s the best option (from a supporter’s point of view), but because he has all the big guns. But we have been here before, with various factions squabbling over the incumbent club at Ibrox, and nothing yet has ended in anything close to a solution.
The IPO should have been the best news, ever, for TRFC but it turned into possibly their biggest disaster. The media, of course, hailed it as the kick-start to CL glory, ignoring all the other factors in achieving that level of success, and the return to lording it over Celtic (the rest of Scottish football wasn’t even a consideration). Strangely, while the celebrating was going on, many people not attached to Ibrox (so not the MSM) were quickly warning those who would listen that things might not be what they seem! The MSM, however, continued to celebrate – until the accounts were eventually published.
No hack ever sounded a note of caution (or at least not without something to balance it out), though when the evidence arrived that their celebrations had been somewhat premature, not one was prepared to admit they’d got it wrong. They just carried on as though they’d been on top of the story all the way.
Now, as the engines of the aeroplane that their chosen saviour ‘jetted’ home in cool down, along with his ‘offer’, they are again celebrating, this time before the ink has even been applied to a contract, let alone dried. Multiple bidders, now that’s worked out well before!
Maybe, just maybe, things will work out well for TRFC this time round, and the celebration of the hacks will continue, at least into the new year, but I do get that feeling of deja vu – again! Could this be a world record breaking deja vu moment?
By way of an aside:
I wonder how long it will take for the French to introduce the word ‘kennedy’ to their language to replace ‘deja vu’?
Allyjambo says:
October 25, 2014 at 11:39 am
Loading the company up with debt, would be the action of a very odd sort of benefactor
scapaflow says:
October 25, 2014 at 11:44 am
Allyjambo says:
October 25, 2014 at 11:39 am
Loading the company up with debt, would be the action of a very odd sort of benefactor
___________________
…but not for TRFC!
Allyjambo says:
October 25, 2014 at 11:56 am
True
ecobhoy says:
October 25, 2014 at 10:13 am
Buffoon Tourette’s Syndrome
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Eco – saviours used to be so easy to identify – they used a few pre-ordained phrases and everyone knew to align behind them – but Mike hasn’t said any of those phrases so he can’t be a saviour – can he? Life used to be so simple.
I assume there will be a Regulatory Notice on AIM next week with the loan details and especially the security given by Rangers.
However it will be interesting to see whether it relates only to the initial £2 million tranche or the rumoured £10 million total deal.
For those who like their football seasoned with a dash of politics, have read of Alex Massie’s blog. ( I make no comment on his argument) Though I’ll give him style points for working in both a Rangers and WATP angle
http://blogs.spectator.co.uk/coffeehouse/2014/10/alas-poor-johann-lamont-a-symptom-not-the-cause-of-labours-decline-in-scotland/
Now hearing MA to underwrite a new share issue, if true
50m shares is 10m minus expenses
– that wouldn`t pay back the MA wonga and interest, but he`d get the badge so we have a good gauge of why 16m changed to 10m
If the share offer is partly taken up, MAs percentage ownership goes over 10%
Driving a coach and horses through dual ownership limits
SFA are useless though. They`ll roll on their backs and let MA tickle their tummy
mtp
Big Pink says:
October 25, 2014 at 9:01 am
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There is a really easy solution to this. Rangers reduce their playing budget to what they can afford, no matter the effect it has on future success. I really can’t see why the SFA should be duty bound to agree to anything simply to allow Rangers to be falsely financed beyond their means. Obviously I don’t know the club director you spoke to, but I am puzzled why he seems to think someone MUST be allowed to come in and falsely finance them. Presumably his club is properly managed – why would he not expect Rangers to be too
Ashley loan agreed and Wallace gone according to BBC Radio Shortbread news.
Ashley to underwrite share issue. SFA OK with that?
Scottish Football needs a strong Arbroath.
redlichtie says:
October 25, 2014 at 12:07 pm
Hardly a surprise, though will he be trotting off to the COS for an arrestment order a la Imran?
I suppose £10 million might get them to the end of the season but I don’t see any purchases in the January ‘window’. Possibly some loans from Newcastle?
£2 million will see them to the end of the year and give them time to get the accounts out, have their agm and possibly a share issue in January depending on what the mystery overseas investors want to do.
Possibly the biggest danger now to them getting to the Premiership is McCoist as Ashley will keep the financial transfusion going as long as his wonga is well-covered by property assets which he can punt to Laxeys if it all goes pear-shaped.
Very technical stuff, this. If Ashley underwrites a share issue which is not taken up in full but leaves x million shares for him to have to pick up, and that x million would bring him over the 10%, where would that leave the SFA?
Do we believe that there has not been a nod and a wink to Ashley, to cover that eventuality?
No, we do not!
I was reminded of Captain Oates and his words: ‘I am just going outside and may be some time’ when I heard it rumoured that Wallace was off on a family holiday to Greece.
Beats ‘gardening leave’ 😆
2m Gbp ,just enough to get to the end of the year,oh dear,I wonder what might just be in the offing at that point for negotiating MIke,do tell.
If MA underwrites a share issue and only subscribed to shares not taken up would that give the SFA sufficient wriggle room (not that they’ve ever needed much)?
Anyone else getting the feeling that king’s been played like a lemon by both SFA and Ashley. Approving >10% ownership and getting the ship at least back under power (control of rudder to be confirmed) has been a breeze to get the clubs to nod their approval. After all, look at the alternative……
That’s it then, we’ll have to stop calling them ‘the Ibrox club’ some day soon 😈
John Clark says:
October 25, 2014 at 12:12 pm
Very technical stuff, this. If Ashley underwrites a share issue which is not taken up in full but leaves x million shares for him to have to pick up, and that x million would bring him over the 10%, where would that leave the SFA?
==========================================
I seem to remember deep in my brain that there is something akin to insurance for underwriting share issues with the premium based on the estimated exposure of the ‘insurer’ to the issue bombing.
So it could be a play on words as it might not be Ashley personally that underwrites the issue but only pays the premium.
There is then the angle of say Rangers Retail Ltd advising the SFA that to protect its business of manufacturing, selling and distributing branded gear it is underwriting the share issue or, indeed, any other separate legal entity.
The argument being that without this move Rangers will collapse financially and this will justify the business case that the SFA have stated they are waiting on Rangers supplying to allow Ashley a 25% shareholding presumably after the next issue of shares.
There is even an argument that if Ashley isn’t allowed a percentage increase then his shareholding would be diluted and no doubt it might be whispered in the SFA ear that this would leave more power in the hands of those mystery overseas investors and possibly an Interpol fugitive. Yip I’m sure the SFA will see sense 🙄
It now puts all the recent media PR-directed output that Scottish Football needs ‘A Rangers’ to survive. So the SFA have avoided a real slippy bit of the road with DK ditched and will now declare they are doing what’s best for Scottish Football by letting Ashley go to 25%.
He needs a power base in the Rangers board room with his directors in place and I believe that he will be looking to control the ‘executive’ slots with his own men/women from SportsDirect as it might be a bit tricky attracting anyone with any ability to Ibrox given the burn-rate of Board Members and the non-stop flak that fills the blue skies over Govan.
I suspect the SFA will be quite pleased with the outcome, and I could easily believe they’ve had a hand in it. Somehow setting aside their own, seldom upheld where RFC/Sevco/TRFC have been concerned, rules to allow Ashley a larger stake in RIFC/TRFC will sit easier than allowing a convicted tax criminal to hold the ultimate power at Ibrox. If nothing else, he is the lesser of the two evils 👿 👿
AJ, Eco,
My only concern with that theory is that it does of course imply that the SFA do actually know what they’re doing!
Still umpteen stabs in the dark you’ll surely get one right in the end 😈
Big Pink says:
October 25, 2014 at 9:01 am
Spoke to a director of a Premiership Club last night. “It’s a f** free-for-all!”, he said.
“People are laughing at our game, and the SFA, typically, are providing no leadership or direction.”
“Whatever you think of Rangers, they are a major component of Scottish football. This farce being played out in public reflects badly on all of us”.
My sense is that TRFC are fast becoming pariahs amongst the boardroom classes, and that King is seen as the pragmatic and temperate choice. Certainly King’s blue-blooded credentials may buy some conservative influence at Hampden, but I’d bet that Ashley’s wealth will buy a whole lot more.
There is a lot of fear at the SFA over who not to upset. On balance though, I’d say it’s far more likely that Ashleigh’s 10% restriction will be extended, rather than King’s fit and proper test pass threshold being reduced.
===========================
The SFA are not invulnerable from pressure from the clubs so why are the clubs not calling for changes at the SFA?
If they want their supporters to turn up and watch a game where there is no confidence that the rules mean anything when tough decisions are required, why are clubs not demanding SFA reform?
Without
a) an examination of how the situation arose in the first place covering 1999 to 2011.
b) the SFA’s handing of that situation covering the period just before May 2011 when Craig Whyte took over
c) an examination of what rules were set aside from June 2011 to August 2012 including the monitoring of the UEFA 2011 Licence, the Commissioning of LNS and advice supplied during it (Bryson’s law).
d) why the rules were circumvented, how it was done and who made the decisions to do so.
e) the removal of those responsible at the SFA and SPFL for the 5 way agreement, made possible by circumventing the rules.
f) the introduction of an Ombudsman role to give supporters a means of obtaining accountability and transparency and so restoring some semblance of integrity to Scottish football.
Without that they are building on quicksand and its not as if they do not know what really took place. The clubs and the msm have been supplied with all the evidence.
The only chance of this happening is another ST strike in the lead up to next season and that requires getting the full story out there to galvanise all supporters.
Keith Jackson (@tedermeatballs) having an exchange with @Gri64 on Twitter.
@Gri64 seems to question Jackson’s claims that Laxey are party to the agreement with the Ashley deal.
Interestingly, @Gri64 claims to have just received a “lengthy” e-mail from Kingsnorth
cYE9o;%,9]8E4Z
AllyJambo,
He also has deeper pockets.
However there is a curious situation with respect to patronage of Sports Direct. Few people have ever managed to provoke a boycott by both Celtic AND Rangers fans 🙂
I have to assume that Ashley will embark on a charm offensive with the Bears – otherwise the Rangers connection doesn’t make a lot of sense.
Thing is, Ashley doesnt talk to anyone, he never does interviews or makes any attempt to be popular in Newcastle.
http://news.stv.tv/west-central/297080-rangers-board-accepts-2m-offer-giving-mike-ashley-control-of-club/?utm_source=twitterfeed&utm_medium=twitter
A deal is done- be afraid, Bears, be very afraid. And please note- it’s “Mr” Ashley now.
A forecast of the reporting over the next few days.
1. Ashley will be providing £20-30M to get Rangers ‘back’ into the Champions League.
2. There will be some carefully placed transfer stories that will be too ridiculous to take seriously.
3. McCoist will publicly back Mike Ashley
4. We will be informed how much wealthier Mike Ashley is compared to Dermot Desmond.
4. Celtic will receive negative publicity with regards to how the club is managed financially, most likely from ex-Celtic players.
6. The SFA will say nothing, and will not answer a single e-mail or letter from fans asking for clarification why Ashley is being allowed to increase his stake beyond what the rules allow.
7. The media will not approach Wallace or Nash in order to get a negative story.
ecobhoy says:
October 25, 2014 at 12:36 pm
A plusible scenario. Its amazing though, how from the start of this saga, we’ve always been only a short step from discussing “Shadow Directors”
Interesting debate going on in FF about Murray. Consensus is negative, but he still has his supporters. I do find it very strange that anyone at all is supporting him, but different strokes and all that …
Have now had an apology from STV over John MacKay describing Zaluska as being involved in a ‘bar brawl’.
My initial complaint was poo-pooed with the claim that the words weren’t included in the scripts for the programme. I rejected the explanation and demanded the complaint be escalated as the STV Player clearly reveals MacKay stating the incident was a ‘bar brawl’ and yet the complaints department claims he didn’t. And I thought the SFA were bad 🙄
STV Apology:
Just for the record I made it clear in my initial complaint that MacKay used the words in the introduction to the start of the 6pm STV News. I also made it clear that the actual report later in the programme made it clear the attack took place in the street and, indeed, so did the STV website.
Appears the only one at STV who didn’t know what happened to Zaluska was MacKay. And the fact that the words ‘bar brawl’ didn’t appear in the official programme scripts IMO means MacKay must have taken a personal and very unprofessional decision to use them.
MacKay is no trainee presenter and I just wonder what he hoped to achieve as there is a world of difference between stating someone has been in a ‘bar brawl’ or that ‘they were the victim of an unprovoked assault in the street’.
I hope MacKay’s bosses at STV arrange for some retraining as it’s obviously required. My own advice to him is to engage a neutral professional brain in future and always remember: ‘Loose lips sink careers as well as ships’.
48 hours from administration without 2m says BBC
mtp
Just listening to Drew Robertson on Sportsound. The gist of what he’s saying can pretty much be boiled down to “let’s see how it all pans out.”
parttimearab says:
October 25, 2014 at 12:17 pm
If MA underwrites a share issue and only subscribed to shares not taken up would that give the SFA sufficient wriggle room (not that they’ve ever needed much)?
……………………
The name of the game isn’t Mike Ashley and survival
Its diluting the Minority Spivs and Bear holders, enhancing the value of the holdings of the Majority Spivs followed by Liquidation and some deal which gives Ashley a piece of Sevco 2
The Mechanics?
Probably something along the following lines
A deal has been done for at least 2 resolutions at the AGM
1 Issue new shares ( much more that the number to be underwritten by Ashley)
2 Dis-apply pre-emption rights for existing shareholders
e.g.
What could happen is that (say) 100m new shares are issued of which MA agrees to underwrite 50m (at a pre agreed and disguised discount ) and 50m are freebie shares are awarded to the majority Spivs. Ashley also gets some concessions which benefit his Sports Direct business.
The numbers being calculated such that only the minority Spivs and Bear investors lose out
TRFC are then liquidated and Ashley gets another bite at the cherry as part of the deal
ecobhoy says:
October 25, 2014 at 2:35 pm
Good for you, and also good forSTV.
On your occaisionally mooted idea of a New Rangers, I think we may be approaching a tipping point, (I know I have), where there would be an outpouring of support for this both moral and practical across the footballing spectrum.
However, there is a but, (isn’t there always?). but, the people who sit around the boardrooms in Hampden, would, out of their own narrow self interest, do everything in their not inconsiderable power to sabotage it. Which would make the project a hard one, but, would also make success all the sweeter!
Sportsound 2.00 – 2.30
Score: 7/10
Special marks to three Rangers supporters interviewed. Was that you Ryan?
Marks deducted for refusal to use simple language on key point -that for Ashley to put in 10 m he expects 11m back. Everything else is supplementary to this.
Goosy,
I’ll now genuinely be amazed if it pans out like that unless there is a particularly troublesome minority shareholder that they need to blow out of the water.
I’m expecting austerity rangers back in the top division sooner rather than later. Where they go from there is not clear. One things for sure. They won’t do it riding on a wave of Ashley generosity that’s for sure!
I wonder if Ashley still sees a role for king there: soft funding for moonbeams.
If I were a Hearts or Hibs or Raith Rovers fan, I’d be wary of “loan” deals involving some surplus to requirement NUFC players.
Clearly, TRFC can’t afford to fund those deals at commercial rates – so Ashley having a significant say in the running of both clubs could potentially give TRFC an unfair advantage in the title/promotion play-off race.
Unfair advantages are nothing new to clubs playing out of Ibrox, but this time it would be relatively speaking out in the open given the public awareness of what TRFC can and can’t afford.
Of course this is exactly why there are rules about multiple ownership of clubs.
Big Pink says:
October 25, 2014 at 3:09 pm
“FAO Stewart Regan
RULE: An authoritative, prescribed direction for conduct, especially one of the regulations governing procedure in a legislative body or a regulation observed by the players in a game, sport, or contest.”
Naw, expect some bromides including, unprecedented times, need for action for good of all, uncharted waters, will keep a careful watching brief, swift action taken if necessary blah blah, insert more piss poor sub-MBA bullshit here, blah blah
Interesting listening to Radio Scotland earlier. Chris McLaughlin instantly talking about the Champions League for Rangers and having to be reeled in by the excellent Richard Gordon. Richard Wilson being quite pragmatic and pointing out that Ashley may only be protecting his existing commercial interests, and adding that without cost cutting another £14M will be required. Tom English bluntly asking when Rangers will live within their means. Chris McLaughlin appears in need of some serious coaching in the art of journalism.
Meanwhile over on Radio Clyde Hugh Keevins states Celtic will need to take a good look at themselves in the wake of Ashley coming in. Mark Guidi remarks that Celtic will have a real fright at the news. Keevins and Guidi are really just an insult to journalism with this type of nonsense.
As noted by others there exists the possibility of MA arranging loans of players from NUFC to TRFC who clearly cannot be afforded and whose arrival would be detrimental to fair competition in the Championship.
I would have thought that it would be quite simple for the SPFL and SFA to make it a condition of agreeing to MA’s further or extended involvement in TRFC that such loans do not take place.
In fact, matters have advanced to a point where if MA is not considered a ‘shadow director’ he must be seen as a major power broker behind the scenes and this needs to be recognised by the authorities.
At this juncture his influence is such that two Directors have just had to resign and presumably he will wish any replacements to be supportive of himself and his companies. Further he is/was reportedly seeking the right to appoint the Chairman or at least have a veto over the selection.
The matter is so important that an assurance on this subject should be urgently sought by the SPFL/SFA to remove any suggestion of inappropriate arrangements resulting from what is de facto dual ownership of or prevailing influence over two separate clubs.
Scottish Football needs Strong Footballing Authorities.
Whereas Ticketus used the security of future ST income to fund current expenditure, MA appears to be providing his loan to protect a lucrative merchandise deal.Neither deal changes the fundamental issue that the “Rangers” business model cannot be sustained without continuous external funding.
Both deals increase the quantum of that external funding requirement for years ahead.
In many ways, the Ticketus deal appears to have provided better value for the old club than MA’s loan to Sevco No 1.
I wonder if that mean the October wages have, in fact, become a doubt? (prior to the MA loan)
scapaflow says:
October 25, 2014 at 2:43 pm
ecobhoy says:
October 25, 2014 at 2:35 pm
Good for you, and also good forSTV.
On your occaisionally mooted idea of a New Rangers, I think we may be approaching a tipping point, (I know I have), where there would be an outpouring of support for this both moral and practical across the footballing spectrum.
However, there is a but, (isn’t there always?). but, the people who sit around the boardrooms in Hampden, would, out of their own narrow self interest, do everything in their not inconsiderable power to sabotage it. Which would make the project a hard one, but, would also make success all the sweeter!
=================================
Not so sure it was ‘good’ for STV who initially rejected that John MacKay used the words ‘bar brawl’ in relation to Zaluka which IMO was clearly a smear on the victim of an assault.
It was totally unprofessional reporting by MacKay and either sheer incompetence by the STV complaints department – which I think has been outsourced IIRC – or a pathetic attempt at a cover-up by initially advising me the words weren’t in the programme scripts. Let’s hope that Mr MacKay is more professional in future.
However on a ‘new’ Rangers one thing I have always stressed is that I won’t be telling Rangers fans what kind of club they should be building. That is strictly up to them and they will be judged accordingly by other football supporters on what they create.
But I’m beginning to think that with Ashley on-board that it might be harder if not now actually impossible for Rangers supporters to create a new club or even hold a significant shareholding in such an enterprise.
Obviously we need to see what the forthcoming agm brings and it has always been clear to me that the spiv shareholders have no problem with dilution as long as it isn’t their holdings that are affected.
I think there are possibly two significant events on the calender in gauging the reaction of Bears. One is whether there is a significant take-up of half-season STs and then next season’s ST sales.
Obviously this is all set against the backdrop of the boycott campaign and whether that withers and dies with the departure of DK. Cup defeats and failure to be promoted to the Premiership coupled with the dire football routinely on offer is probably a bigger turn-off for the Bears that are left rather than who sits on the board or controls the club.
There’s obviously a point at which attendances and ST sales would cause the spiuvs tp pull the plug. I would hazard a guess of say 25K for attendance and not straying south of 18K in ST sales.
In any case I wouldn’t be in the least bit surprised if SportsDirect sponsors the Premiership next year and who knows what doors that might open?
The events of the last few days has, I’m afraid, further clouded the issues surrounding Ibrox and I’m afraid the interests of Rangers’ fans has all but disappeared from the agenda.
redlichtie says:
October 25, 2014 at 3:46 pm
As noted by others there exists the possibility of MA arranging loans of players from NUFC to TRFC who clearly cannot be afforded and whose arrival would be detrimental to fair competition in the Championship.
============================================
In my humble opinion the SFA will do nothing to disadvantage the Ibrox club in any way. That means they will allow Ashley to increase his stake and let the said suggested loans go through with no opposition. If Ashley was not on the scene they would have waived Dave King in no questions asked. Of course, they will issue some weasel words that there is no issue with Ashley coming in, like they also would have explaining why King was being allowed in.
ecobhoy says:
October 25, 2014 at 4:03 pm
Your idea that Sports Direct might well end up sponsoring the Premiership seemed, at first, to be a natural follow on from what we’ve been witnessing. But then I realised that that would fly in the face of sporting integrity, and so would never be sanctioned by the SFA or SPFL…
scottc says:
October 25, 2014 at 4:02 pm
twopanda says:
October 25, 2014 at 2:40 pm
48 hours from administration without 2m says BBC
mtp
I wonder if that mean the October wages have, in fact, become a doubt? (prior to the MA loan.
================================================
Not necessarily. They might be able to cover them but know that from that point onwards the cupboard is bare and admin is inevitable without a cash injection. They can land in deep water if they continue trading in that position.
But Ashley will be careful and will keep them on a drip-feed until he gets what he wants. He has commercial reasons to save Rangers but he won’t spend his money to enrich the spivs unless they pony-up dosh as well.
In this game of football the ball has been replaced by a hand grenade with the pin already pulled.