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In recognition of the points you made about publishing your responses on line, your letter of 18th September will not be published although readers of TSFM will be able to gather from this reply which is being published what those points were.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
easyJambo says:
October 26, 2014 at 9:18 pm
Would be a bit more if he gets his hands on the crests, badges etc, and then charges a fee to whoever runs Rangers for using them. Pretty sure Ashley could turn a bob or two on the Saint-Étienne bike 😆
Someone, can’t remember who, postulated a while back that the current lot were rank amateurs, and that sooner or later Rangers would fall into the hands of a real shark, I wonder….
@StevieBC 8.56 pm
well done
(Maybe a guest post on the matter to follow Auldheid’s, until we get an update from Auldheid on the Discount option Scheme)
The great success of Mike Ashley’s Sports Direct has been built on price, simply being cheaper than all of his competitors and selling large volumes at small margins has paid off handsomely.
It’s a business that works, but one that requires strict controls of costs.
Sports Direct outlets may not be glamorous but they are effective and appeal to financially hard pressed parents looking to buy sports kit for their kids and indeed themselves.
If the shops often look like a chaotic jumble sale with discount markers haphazardly placed on baskets of sports shirts or racks of sports shoes the business as a whole looks entirely different.
The distribution of acquired brands is slick and effective; the appearance of the outlets is exactly as intended.
One feature of the Sports Direct business is just how little they spend on marketing.
There is no real surprise in this, endorsements by sports stars are remarkably expensive and only work at the high end of the retail market where quality and intangible associations can pay dividends.
Becoming a UEFA Champion’s league sponsor as an example is both off limits and counter productive.
UEFA limit the number of sponsors to create an exclusive and very expensive market. If you are in the bargain basement business then slipping a plug into the half time rendition of Zadok the Priest with any kind of frequency is likely to prove a margin bursting expense.
A progression into European markets is however essential for the continued growth of the Sports Direct brand actually it’s a stated aim.
As one NUFC blogger helpfully extracted from the company’s annual report:
“Developing brand awareness is a key factor in ensuring a sustainable future and the appropriate level of investment in advertising and technology is an important component towards achieving this
Our position as the consumer champion, offering an unmatched range of products at the best available prices is now reaching more countries as we continue to expand internationally.
The board’s aim to expand further into Europe has been a key strategic driver for a number of years which has proved extremely successful.
International Retail revenue grew 20%.”
Alas I have no figures that can shed any light on the value of the 20% growth but clearly continued growth is desirable and ‘ brand awareness’ is seen as something which could unlock the market.
For Rangers fans this all might look like good news. Mike Ashley funds a team capable of reaching the group stages of the Champions League, achieves his business brand awareness aims and in some kind of symbiotic relationship matches the aims of Rangers fans.
The difficulty with that view and one that Rangers fans would do well to realise is that once you start paying for sport at the top end the margins available at the bargain basement end quickly disappear.
I can’t say with any kind of certainty how Mike Ashley intends to expand his business in Europe, but I will say this, when his Sports Direct outlets became ubiquitous in towns and cities across the UK none of us noticed until it happened.
There was no key association with a sports team or individual that could be referenced as a turning point in the company’s fortunes.
What makes Sports Direct successful is simply being the cheapest around in a market which has a large segment in which quality is not the most important driver.
Buying sports kit for kids takes manufacturing standards and quality out of the equation for a great many people. Kids grow, often surprisingly fast- it’s not a long term purchase, price is everything when repeat purchases are necessary.
Sports Direct inhabit a marketing counter culture, there is no recognisable product nor any sporting superstar/ high achiever endorsement.
The product is if it has a name “cheap” it is basically a sports shirt that keeps everyone happy for a short period of time and later comes in handy when you’re washing the car.
The placement of Mike Ashley’s business in Europe will more than likely follow the tried and trusted path used in the UK.
Who knows if he will be successful or not. It is to a large extent dependent upon what his competitors are doing.
The move on Rangers doesn’t look like any significant play in company strategy going forward.
For me it looks like turf protecting with Rangers becoming a useful Sports Direct outlet on the periphery of the wider ambitions of the company which now controls them.
The South African captain & ‘Keeper Senzo Meyiwa has been shot dead
http://www.sport24.co.za/Soccer/BafanaBafana/Bafana-keeper-Senzo-Meyiwa-shot-dead-20141026
Thoughts with his family. We are so lucky in so many ways.
As someone who has admired RiB’s contributions to this site, I am disappointed that his/her slip is showing a little.
It appears that RiB doesn’t get us at all. No-one will be having nightmares if Rangers are nursed into rude health and compete with the rest for honours.
We’ve been LIVING the nightmare for the past two decades as the competitions we thought were being run on a level playing field were actually being skewed unfairly in favour of one club. Of course if RiB’s implication is that we will see a return to that, then yes, that would be our worst nightmare, because nothing will have been learned.
There are fans of all clubs on here. Some have more antipathy towards a Rangers than others, but they all despise what has been done in Rangers’ name. And no-one will have a nightmare if they win ten-in-a-row – if they win it fair and square.
Mightily pissed off perhaps, but sleeping safe and sound. I really wish you would get that RiB – I thought you did.
Now here is an argument Ashley will recognise as it is at the root of everything he sells.
People aspire to things that are successful/usefull.
Mrs Ianagain posits the question (its very much her area of expertise)
The Sevco brand is NOT admired.(she’s adamant there) So a loose there.
The Sevco brand may well be toxic she mat be right Ashley may be right. (time for an Ashley poll)
The quality is poor. (Mrs Ianagain not too sure but believes its Chinese made polyester).
That’s it Nae fitba, Nae were the gers its about cheap kit and the IP
rhapsodyinblue says:
October 26, 2014 at 6:32 pm
15 62 Rate This
….
But wait a minute let me dream.
….
For me it’s a dream for a lot of you, it’s a nightmare.
===============
Hi Rhaps,
Its a nice dream isn’t it? One I’m sure lots of us fans have: billionaire owner, top class team on the park, all competitors swept aside by the flowing, exciting football while on the way to domination of all competitions.
Fans of all teams have wee dreams about this sort of stuff.
I’m not really sure why you’d want to post it on a forum like this one though and its certainly not something I’ve seen others do – ie post pure fantasy.
However its brought a bit of mirth and fun to the site tonight, so why not. Usually we discuss more serious topics and leave the childish stuff for club forums I suppose.
No idea why you suppose this would be a nightmare for everyone else mind you.
For the 3rd time this week I repeat what happens when Ashley gets “inside” only to find the IP resides “outside” and cant be touched.
Is it £2m that’s yer lot, im better off doing business with Charles and Craig ?
twopanda says:
October 26, 2014 at 9:16 pm
6 4 Rate This
rhapsodyinblue says:
Has made valued contributions / insight and importantly Bears feelings
Not understanding some knee jerk responses
There should always be time for good folk interacting
Not an excuse to contra parading point scoring
Sorry, but that’s how it is IMO
mtp
======
Yes, I think Rhaps has contributed well in the past Mrs tp.
However I think if I made a similar post about a dream of my club spending their way to success some people would wonder what the hell it was about and why I was posting it here on tsfm? Just seems a little odd thats all, Perhaps it will be put in some context.
And so it goes on
“Andy Devlin @AndyDev28 16m16 minutes ago
Graham Wallace to leave Rangers tomorrow (Monday). Read shock name being mentioned as possible successor in @scotsunsport tomorrow.”
ecobhoy says:
October 26, 2014 at 9:43 pm
‘.. At the end of the day football’s only a game FFS.’
——-
And, of course, it’s not even a decent sporting game if it’s rigged big-time by guys like the SDMs of the world, and those who might perhaps have shared his megalomaniac-like vision and aided and abetted his ‘sporting crimes’ by their neglect of/ or dereliction of duty as officers of the Sports Authority supposedly responsible for ensuring that important rules are adhered to.
scapaflow says:
October 26, 2014 at 10:59 pm
1
0
Rate This
And so it goes on
“Andy Devlin @AndyDev28 16m16 minutes ago
Graham Wallace to leave Rangers tomorrow (Monday). Read shock name being mentioned as possible successor in @scotsunsport tomorrow.”
=====================================
With his 340k I presume otherwise he would be screaming his head off.
So already the loan is 1.96 million and depreciating by the
minute.
Graham
Ouzos all round chaps a wee Metaxa gold perchance.
The lives we weave. Satisfaction after a job well done.
Ianagain says:
October 26, 2014 at 10:32 pm
For the 3rd time this week I repeat what happens when Ashley gets “inside” only to find the IP resides “outside” and cant be touched.
Is it £2m that’s yer lot, im better off doing business with Charles and Craig ?
================================================
I hear what you’re saying but for all we know Charles and Craig have never left the building.
Yea the IP rights might have been sold on from TRFC – although no hard evidence exists to that effect. But if those rights have been sold then Ashley would know because he’s the guy whose joint venture company with Rangers is licenced to put the Rangers trade marks on all the Rangers kit and merchandise it is is manufacturing, selling and distributing.
It would mean that the Rangers Retail exclusive worldwide licence from TRFCL covering every Rangers trade mark wasn’t worth the paper it was written on. By extension Rangers Retail must have another ‘hidden’ exclusive worlwide licence granted by whoever holds the IP rights sold by TRFCL.
So Rangers Retail would need to pay that ‘new’ but unknown owner for using the licence which would mean Ashley would need to know the identity of the new owner.
The alternative would be that Rangers Retail continues paying TRFCL who then passes on the money to the new unknown owner of the trade marks. The problem with that is that it appears that actually very little money has been paid over to TRFCL in terms of kit/merchandise profit and that it is held somewhere in reserve and according to the accounts is unavailable to use.
I seriously don’t think that Ashley would be parting with £2 never mind £2 million if he didn’t know he could secure whatever he wants. He will know exactly who owns the trade marks because that’s what his business is all about.
We may get some useful info from the AIM notification wrt the £2 million loan in the next couple of days of course.
ianagain says:
October 26, 2014 at 11:13 pm
Could be, but Nash will need paying off too, so call it £1.8 million for arguments sake 😉
Ok Ill take a bet.
No version of Rangers as invested by Ashley has the all important IP, its with Chuckles.
Once Ashley finds out he will be off, maybe as soon as Friday.
scapaflow says:
October 26, 2014 at 10:59 pm
And so it goes on
“Andy Devlin @AndyDev28 16m16 minutes ago
Graham Wallace to leave Rangers tomorrow (Monday). Read shock name being mentioned as possible successor in @scotsunsport tomorrow.”
======================================================
Aw naw ❗ I can see the headline now: ‘Dave King jets in again’ 😆
With the size of his footprint the carbon cops will be after him – time for him to produce his green credentials 🙄
ianagain says: October 26, 2014 at 11:13 pm
With his 340k I presume otherwise he would be screaming his head off.
So already the loan is 1.96 million and depreciating by the
minute.
=======================
I demand a recount. 🙂
£2M – £340K = £1.66M
easyJambo says:
October 26, 2014 at 11:30 pm
You’re right, 😳 call it £1.5M after Nash gets his payoff #brainfart
Edit
Senior moments coming thick and fast lol
easyJambo says:
October 26, 2014 at 11:30 pm
1
0
Rate This
ianagain says: October 26, 2014 at 11:13 pm
With his 340k I presume otherwise he would be screaming his head off.
So already the loan is 1.96 million and depreciating by the
minute.
=======================
I demand a recount. 🙂
£2M – £340K = £1.66M
=============================
Ah yes man v machine (try it with an extra zero)
I well remember my boss who checked everything on paper telling me Id cocked up by a few million dollars as Exel couldn’t handle the lira exchange rate!
ianagain says:
October 26, 2014 at 11:17 pm
‘..The lives we weave. Satisfaction after a job well done.’
———–
I somehow doubt that Wallace ( if he was, as some suppose, a relatively ‘good guy’) will feel anything but seething rage, first at himself for being so blind as not to see what he was getting into, and then at seeing his ‘chief executive’ capacities ( and his CV accordingly) trashed. Which apart from damaging his pride, will make finding another fairly lucrative position very difficult.
And if he was not a relatively ‘good guy’- he’ll be spitting blood at having been cut off from the gravy train!
He will not be in celebratory mood, I fancy.
ianagain says:
October 26, 2014 at 11:28 pm
Ok Ill take a bet. No version of Rangers as invested by Ashley has the all important IP, its with [..]. Once Ashley finds out he will be off, maybe as soon as Friday.
===================================
Why would he be ‘off’ ❓ Check the Rangers AIM Flotation Prospectus at 12.1.3 which spells out what happens if the IP Licence Agreement is validly terminated or there is a material breach or insolvency.
Basically mandatory share transfer provisions come into play whereby SportsDirect end-up owning Rangers Retail.
So why would Ashley walk-away when he controls the whole manufacturing, sales (instore and online) and distribution of all Rangers kit and caboodle.
I genuinely don’t think a few mystery overseas spivs will frighten Ashley too much.
But I’m not saying you’re wrong about who owns the trade marks but all of the evidence in the public domain points to it being owned by TRFCL and I have never seen a single piece of hard evidence to the contrary.
I assume if you are willing to bet on it then you must have some evidence and I would love to hear it 😎
For some reason I’ve had this tune rattling in my head all weekend 😉
have a goodnight, no doubt tomorrow will be interesting
https://www.youtube.com/watch?v=89PqD_z7lJ8
John Clark says:
October 26, 2014 at 11:52 pm
ianagain says:
October 26, 2014 at 11:17 pm
‘..The lives we weave. Satisfaction after a job well done.’
———–
I somehow doubt that Wallace ( if he was, as some suppose, a relatively ‘good guy’) will feel anything but seething rage, first at himself for being so blind as not to see what he was getting into, and then at seeing his ‘chief executive’ capacities ( and his CV accordingly) trashed. Which apart from damaging his pride, will make finding another fairly lucrative position very difficult.
And if he was not a relatively ‘good guy’- he’ll be spitting blood at having been cut off from the gravy train!
He will not be in celebratory mood, I fancy.
==================================================
I have never seen Wallace as a ‘good guy’. He was just another creature of the spivs just passing through and working to an agenda and timetable set by those who have controlled the club from Day 1.
We are moving to another phase and who knows where that will take us ❓
I really would love to see that 127 Day Review whose purposes seems to have been mainly to keep Ra Bears quiet and under control so they would buy their STs as usual. That didn’t quite work the old magic right enough.
Still I suppose Mike’s the very man to knock-out an orange tap forra Berrs 😆
Interesting piece on Ashley:
http://www.themag.co.uk/the-mag-articles/sir-john-hall-makes-clear-mike-ashley-bought-newcastle-united/#.VE0a2UMIh-w.twitter
scapaflow says:
And so it goes on
“Andy Devlin @AndyDev28 16m16 minutes ago
Graham Wallace to leave Rangers tomorrow (Monday). Read shock name being mentioned as possible successor in @scotsunsport tomorrow.”
==============================
Well, whoever it is, one thing is certain – they will be lauded as a “real blue chip” CEO with experience and respect in the City. Capable of raising serious finance etc. etc. … while the SMSM set out dutifully revising history and how much of it was all really GW’s fault…. yadda, yadda, yadda how many CEO’s are we at now…I’ve lost count…
…and another thing…. Where is Neil Patey? I demand to know!
Is he not usually due around this time to pop up and spray some financial rainbows all around?
Peterjung,
Wouldn’t Neil Patey be a great choice for CEO or Finance Director?
Karma? Putting money where mouth has too often ventured?
Scottish Football looks forward to an ineresting day.
Graham Wallace gone as Rangers CEO and the Mike Ashley loan of £2m announced. Interest free secured on Edmiston House & Albion Car Park.
Ally wondering how many sugars the new guy takes
Jackson saying he was sacked
Every other media saying resigned.
From Keith Jackson in today’s Record-
It sounds to me like Ashley knows where some of the bodies are buried.
redlichtie says:
October 27, 2014 at 7:19 am
Mr Patey(for it was he) was on Sky Sports News yesterday pontificating massively, like some great learned financial owl, providing the type of scrutiny & searching examination on all things monetary down Ibrox way, for which he is renowned.
Didn’t listen to be honest,was more interested in his hair colour. #JustForMen
27 October
Rangers International Football Club plc
(“Rangers” the “Club” or the “Company”)
Credit Facility of £2 million
Withdrawal of requisition for general meeting
The Board is pleased to announce that the Company’s subsidiary, The Rangers Football Club Limited (“RFCL”) has entered into a credit facility agreement with MASH Holdings Limited (“MASH”) pursuant to which MASH shall make available the sum of £2 million for drawdown by the Company (the “Facility”). MASH is a shareholder in the Company holding 8.92% of the voting rights in the Company. The Facility shall be secured by standard security granted by the Company over Edmiston House and Albion car park. The Facility shall be for a 6 month term and is interest free. The Facility will be used by the Company for general working capital purposes. Under the terms of the Facility MASH has the right to appoint up to 2 directors on the board of directors of RFCL.
Further to the announcement made on 8 October 2014, the Company has entered into a letter agreement with MASH (the “Withdrawal Letter”) pursuant to which the Company has invited MASH to put forward the names of 2 nominees of its choice for appointment to the Board, such appointments being subject to all necessary regulatory approvals being successfully completed for such persons nominated by MASH. In addition, the Company confirms that MASH has agreed the immediate withdrawal, by virtue of the Withdrawal Letter, of the notice served by MASH on the Company on 7 October 2014 requiring the Company to convene a general meeting of the Shareholders of the Company to put resolutions to such Shareholders for the removal of Mr Graham Wallace and Mr Philip Nash as directors of the Company
For further information please contact:
couple of things strike me as odd, why is the credit facility to the club not RIFC, why are Ashley’s men being appointed to the club board not RIFC board and just how many directors are left on the RIFC board – shares suspension?
neepheid says:
October 26, 2014 at 10:27 am
21 0 Rate This
Danish Pastry says:
October 26, 2014 at 9:16 am
But £25m for a husk of a club that isn’t even RFC? I can’t see King and diverse bluenose knights coughing up so much for so little. For that amount they could start their own entity. Even if a token payment was the deal would anyone want to be a tenant with no ultimate control of anything club related?
=======================
This is where psychology comes into it. Even if only as a tenant, you get to use the marble staircase, have a seat in the Blue Room, watch the games from the Directors Box, and enjoy the adulation of the fans as their “saviour”. Does King care who actually owns Ibrox, so long as he is the “main man” there?
Commercial sense would indicate that King and his mates should start again, ground sharing Hampden, new badges, etc, I’m sure his good friend Ogilvie could “square the circle” and get any New Rangers into the bottom tier. And to be fair, a lot of the clubs would go along with that. At that point, TRFC would be dead in the water, since I’m guessing that King could take over half the fanbase with him.
Will King do it? No chance, in my opinion. But it’s really the only way to peel off the leeches.
———
Oops, late reply. Mostly offline Sunday.
Yes, a newco-newco has got to be the way for the pretenders. Although apart from King & Knights’ psychology, there is at the Ashley mindset. Gordon Waddell’s piece was very interesting, but I suppose that outcome will be determined on what Ashley’s pals find under Kieran Prior’s famous ‘bonnet’ as @ianagain points out. But MA will find out at no expense, since I take it the loan he’ll get back one way or another. Easy-peasy.
Could an Ashley alternative be, not just to crash the club in some kind of voluntary liquidation (to rid the onerous contracts), but to then run an in-house newco-newco? More mega rule-bending needed to remain (ideally for MA) in the Championship as same entity on points deduction, though same entity bit not a problem, apparently! If not, start again in lowest tier (less rule bending) on an absolute shoestring as the true newco? That could neuter any SoS newco ‘Rangers of Glasgow’, since MA could well be sitting on the ‘Sports Direct Spiritual Home’ for a very minimal outlay.
Throw in an offer of a Sports Direct league or cup sponsorship …
Neepheid at 8.04 am
Cue Bobby Picket and the Cryptkickers The Monster MASH.
It’s certainly not expensive to get a couple of your buddies appointed to the Board of TRFC. A 6 month interest free loan of £2 million, amply secured, which costs Ashley the interest he could have obtained on that money. Let’s say 4%, so the interest loss to him is £40,000 for 6 months. His 2 mates will get that back out in remuneration in a couple of months. A truly amazing bit of business.No wonder he’s a billionaire!
So the loan is for 6 months. That means Mike Ashley gets his money (or his pound of flesh) back before the end of the season, if he wants it. But, clearly the loan is not sufficient to fund the club until the end of the season.
Q. What’s the stance of the SPFL/SFA when the money runs out (again) in the new year?
Q. What’s the point of Mike Ashley keeping the wreck on the road for an extra few months only?
Q. RIFC has lost two directors, but Mike Ashley’s guys are on the board of RFCL. Surely, RIFC will also have to replace the exiting directors? You can’t be AIM listed without a CEO and CFO, can you?
Interesting points. Also note that the ‘drawdown facility’ (rather than loan) is to TRFC but it is secured on RIFC properties.
I would suggest that MA is playing clever here. By having bodies appointed to the club board, he is not seen as being ‘in control’ so avoids awkward questions perhaps. However, the minor board now control something like 35% of the shares, whilst the senior board have less than 1%. Who do we think is going to be calling the shots? Also, it is the subsidary that needs to be making cuts, so perhaps it is the right place to be starting
Lads, as a bluenose of long standing let me say this start a new club is a non starter for me. Personally the one we have is worth saving.
It was nice to see most people replying to my posts yesterday and treating me as a normal football supporter not as someone with horns coming out of my head. I like a bit of banter and yesterdays post was done with that in mind.
I am afraid some can’t stop giving me a slap on the wrist or taking the moral high ground. Please stop it, it is tiring, I give my opinion, you give yours, we can disagree, we are coming at it from different sides. This blog needs it, but if you keep moralising every time a Rangers supporter gives a point of view you will never attract more.
scottc says:
October 27, 2014 at 8:28 am
“Also note that the ‘drawdown facility’ (rather than loan) is to TRFC but it is secured on RIFC properties.”
===============================
So far as I know, the properties are still held by TRFC.
the taxman cometh says:
October 27, 2014 at 8:06 am
couple of things strike me as odd, why is the credit facility to the club not RIFC, why are Ashley’s men being appointed to the club board not RIFC board and just how many directors are left on the RIFC board – shares suspension?
—–
The appointments are to the RIFC board.
“…the Company has entered into a letter agreement with MASH (the “Withdrawal Letter”) pursuant to which the Company has invited MASH to put forward the names of 2 nominees of its choice for appointment to the Board”.
‘The Company’ is defined as RIFC and ‘the Board’ is its board, not that of TRFCL.
rhapsodyinblue says:
October 27, 2014 at 8:35 am
8 2 Rate This
Lads, as a bluenose of long standing let me say this start a new club is a non starter for me. Personally the one we have is worth saving…
———–
Is a non-starter for all? The only differences between a newco newco is that it would, initially, not own the trophy cabinet and certain brand names, logos, etc. The current TRFC is just the renamed Sevco Scotland (or Sevco 5088). Charles Green and co just happen to own the physical assets. They are wheeling and dealing with this stuff because they see a chance to make a few bob off ‘loyal’ fans. Successfully too, everyone of them has been welcomed with open arms.
Any group of fans could register a Rangers name, create a new badge, and be Rangers United or Rangers of Glasgow.
If a majority of fans went and supported that club, which one of the newcos would carry the right to call itself the genuine bearer of the history and legacy of the liquidated club?
There was a caller on Off the Ball and SSB, John in Uddingston, who put the blame squarely on the fans for not uniting and acting as one. As long as fans wait to be fed and told what to do they will get the club they deserve, for good or ill. Until now, mostly ill.
Ashley might come good, but what if he doesn’t?
Just to clarify the company structure between RIFC and TRFC:
RIFC received the proceeds from the IPO (and one presumes, the most recent equity raising), and after costs, advanced the net proceeds to TRFC for working capital.
RIFC doesn’t hold any assets other than the loan to TRFC and there is no interest payable on the intercompany loan. TRFC owns all the other assets of the group including intangibles.
Checking the wording from the previous Easdale/Laxey/Letham loans, the word “Company” seems to be used to mean both “RIFC” and “RIFC and it’s subsidiary, TRFC” in the sense that RIFC is actually defined as the “Company”, but the security offered is described as “the Company’s Edmiston House and Albion car park properties” which are owned by TRFC.
I can’t figure out why Ashley would choose to nominate Directors to TRFC instead of RIFC. The wording of the Directors’ nominations is confusing given that the EGM was being called to remove 2 RIFC directors.
Interesting couple of days ahead.
My reading of the AIM announcement was that MASH will be able to appoint two directors to both TRFC and RIFC.
I’m pretty sure that it was RIFC who purchased Edmiston House and the Albion car park, and not TRFC.
easyJambo says:
October 27, 2014 at 9:20 am
0 0 Rate This
Re-reading the announcement, I think you are correct. MASH can appoint 2 Directors to TRFC (for providing the loan facility) and can nominate 2 Directors to RIFC plc following agreement on the Withdrawal Letter.
easyJambo says: October 27, 2014 at 9:20 am
I’m pretty sure that it was RIFC who purchased Edmiston House and the Albion car park, and not TRFC.
===========================
Edit: I’ve checked the TRFC accounts and it was the football club who bought Edmiston House and the Albion.
mea culpa
Cygnus X2 says:
October 27, 2014 at 8:26 am
8 0 Rate This
So the loan is for 6 months. That means Mike Ashley gets his money (or his pound of flesh) back before the end of the season, if he wants it. But, clearly the loan is not sufficient to fund the club until the end of the season.
Q. What’s the stance of the SPFL/SFA when the money runs out (again) in the new year?
Q. What’s the point of Mike Ashley keeping the wreck on the road for an extra few months only?
Q. RIFC has lost two directors, but Mike Ashley’s guys are on the board of RFCL. Surely, RIFC will also have to replace the exiting directors? You can’t be AIM listed without a CEO and CFO, can you?
,,,,,,,,,,,,,
£2m would be enough to fund a review of existing onerous contracts, confirm those that are unbreakable,re-write the rest to Ashley , sell off any players worth money in Jan, go into Administration, dump ridiculous salaries, stiff creditors and fund raise for a Sevco2 CVA
SFA would be ignored as they have too many skeletons unburied for them to oppose whats going on
And theme theme from MASH was, of course, Suicide is Painless. 😛
Rangers crowds near record low
Rangers have played in front of their lowest attendances for 53 years this week. Ally McCoist’s side beat Dumbarton in the Championship in front of just 1,850 fans at the Bet Butler stadium. And that was a gate of just 23 more than their midweek success at East Fife’s New Bayview in the Petrofac Training Cup. Remarkably, both games were the first time Rangers had played in front of a crowd of less than 2,000 since 1961, since Rangers faced East German side Vorwarts Berlin in the second round of the European Cup 53 years ago. (Daily Mail)
Very telling stat
2 Guys to be `appointed`
Is this a managed internal administration?
The kind that doesn’t risk exposure and spiv jailtime
mtp
Andy Devlin @AndyDev28 4m4 minutes ago
BREAKING: Sandy Easdale due at Ibrox shortly for crunch talks with Ally McCoist. The Rangers boss could be hours from the sack.
mtp
Martin says:
October 27, 2014 at 9:55 am
Andy Devlin @AndyDev28 4m4 minutes ago
BREAKING: Sandy Easdale due at Ibrox shortly for crunch talks with Ally McCoist. The Rangers boss could be hours from the sack
……………………………………………..
Cant see it just now, that would be the 2million loan just about wiped out between his and Wallaces pay offs
@AndyDev28: Hearts CEO Scot Gardiner, a former Ibrox employee, being heavily touted as next Rangers chief executive.
I’ll now just wait for the announcement that Rangers will be seeking to sign all Hearts top youngsters in the January transfer window.
spanishcelt says:
October 27, 2014 at 10:00 am
0 0 Rate This
mtp
Martin says:
October 27, 2014 at 9:55 am
Andy Devlin @AndyDev28 4m4 minutes ago
BREAKING: Sandy Easdale due at Ibrox shortly for crunch talks with Ally McCoist. The Rangers boss could be hours from the sack
……………………………………………..
Cant see it just now, that would be the 2million loan just about wiped out between his and Wallaces pay offs
,,,,,,,,,,,,,,,
I woudn`t put it past Ashley to fire McCoist without notice and double dare him to sue TRFC
Bawsman says:
October 27, 2014 at 9:47 am
Rangers crowds near record low
Rangers have played in front of their lowest attendances for 53 years this week. Ally McCoist’s side beat Dumbarton in the Championship in front of just 1,850 fans at the Bet Butler stadium. And that was a gate of just 23 more than their midweek success at East Fife’s New Bayview in the Petrofac Training Cup. Remarkably, both games were the first time Rangers had played in front of a crowd of less than 2,000 since 1961, since Rangers faced East German side Vorwarts Berlin in the second round of the European Cup 53 years ago. (Daily Mail)
Very telling stat
////////////////////////////////////////////////
To be fair, the only crowds of interest to Rangers will be the crowds at Ibrox and the Bet Butler stadium at Dumbarton only has a 2000 capacity so taking into account segregation the stadium was probably as full as possible?
There already is a £1.5 million draw-down facility in place between Rangers Retail Ltd and Sportsdirect.com Retail Ltd. It’s been there for approx 2 years and doesn’t appear to have been used.
The £1.5 million draw-down facility, if used, was to be secured by a debenture given by Rangers Retail over all its freehold and leasehold property and lasted for 5 years. Interest was payable and was to be capitalised.
I have always wondered whether this £1.5 million was to be used to renovate Edmiston House which was to be used as the new home for the Rangers Ibrox Superstore.
Of course I suppose it might have been earmarked to buy Edmiston House in the first place and then my imagination flits back to a possible connection with the money appearing in Rangers’ accounts from merchandise sales which for some reasom isn’t available to spend.
Another little piece of the jigsaw and I don’t know where it fits 🙄
Looks like
10,000 shares sold at 20p
and
100,000 sold at 19p ??
did GW have any ?
Was away in the west country with work last week. Spent every spare moment this weekend with a cup of coffee catching up on events.
As a v occasional poster I just wanted to say thank you to all the usual posters for their insights into this saga.
The :slamb: merchants down here have been truly useless – not much blue knights to the rescue as a black and white knight to the rescue.
Anyhow, work brings me to Glasgow this Wednesday/Thursday and I’ve just noticed that I will be enjoying the glitz and the glamour of the Premier Inn, Glasgow City Centre South (or Govan as I believe it may be more commonly called) 😀
Think I might pop along to Ibrox and see if I can flog them a asbestos survey. 🙄
GoosyGoosy says:
October 27, 2014 at 10:03 am
Martin says:
October 27, 2014 at 9:55 am
Andy Devlin @AndyDev28 4m4 minutes ago
BREAKING: Sandy Easdale due at Ibrox shortly for crunch talks with Ally McCoist. The Rangers boss could be hours from the sack
,,,,,,,,,,,,,,,
I woudn`t put it past Ashley to fire McCoist without notice and double dare him to sue TRFC.
—————————————————
Well we don’t know if there’s anything that McCoist doesn’t want out in the public domain. If there is then he might walk very quietly with a minimal pay-out and possibly the offer of staying on if he wants as Chief Meeter & Greeter.
Of course why sack him? He can just be put on gardening leave and not allowed into Ibrox except as a paying customer and not allowed any contact with Ibrox.
McCoist likes money – few don’t – but he is a proud guy and despite what many say about him he does love the vision of the club he and many others have. It must now dawn however that that ‘vision’ if it actually ever meant anything in reality no longer exists in the Blue Room.
McCoist could also be a danger if cut loose and a potential rallying point for disaffected fans. He might have come under a lot of attack for his woeful football management skills but I think a lot of that was PR generated and internet-inspired to destabilise him.
He is still a club legend and will always remain so to many fans so it’s a tricky decision for Ashley. But perhaps McCoist has just fawned over too many previous ‘saviours’ knocking at the Ibrox gates and support for DK would have earned him no browny points with Ashley.
Chris McLaughlin @BBCchrismclaug 9m9 minutes ago
Sandy Easdale says no plans to change manager also says Mike Ashley should bring stability to #Rangers. Doesn’t know about long term plans.
Question for Phil Mac…
Now that Mr Nash and Mr Wallace have left the Big hoose
will you still be able to get ‘information’
…two weeks before the Lamb Munchers claim it as ‘news’ ?
The Rangers AIM Prospectus wrt termination of McCoist’s contract:
easyJambo says:
October 27, 2014 at 10:01 am
‘..@AndyDev28: Hearts CEO Scot Gardiner, a former Ibrox employee, being heavily touted as next Rangers chief executive.’
———
I seem to remember that Dundee FC were glad to see the back of Gardiner,as a ‘divisive’ influence? Sounds as though he would fit right in at Ibrox. How has he been at Hearts?
Maybe Ally has been summoned to discuss his January transfer war chest.
More likely though he’s being told no more hotel bills etc and that some big earners have to go.
If they don’t then he’ll be included with them.
Scott Gardiner is of course a good pal of Bomber Brown. Maybe he’ll solve the eternal puzzle of who owns “ra deeds”……
Just Another Second-Division Brand ?
On Ashley’s MO:
“As well as driving out rival retailers, Ashley’s secret has been to buy up the sports brands which, until he came along, held enormous power over the market. The likes of Nike and Adidas have proved too big to beat, but he has built up a locker room full of second-division names – Slazenger, Dunlop, Everlast”
http://www.independent.co.uk/news/people/profiles/is-newcastle-united-owner-mike-ashley-the-best-boss-in-the-world-8721153.html
Martin says:
October 27, 2014 at 10:31 am
Chris McLaughlin @BBCchrismclaug 9m9 minutes ago
Sandy Easdale says no plans to change manager also says Mike Ashley should bring stability to #Rangers. Doesn’t know about long term plans.
___
They just don`t get it do they
Why speak to SE?
SE doesn’t call the tune
They might as well just speak to Jack
Or rather they probably did just that
They don`t know what’s going on, they`ve lost control. That`s what a power grab does
mtp
Still struggling to see what is in this for Ashley.
Much talk about trying to gain Sports Direct exposure in Europe but he already has stores open in various countries.
What exactly does the team from Govan bring to the party in terms of extra exposure for his brand?
Hard to believe sports fans from current store locations such as Ireland, France, the Netherlands, Belgium, Luxembourg, Hungary, Slovenia, Slovakia, Czech Republic and Portugal are suddenly going to part with their hard earn dosh just because Sports Direct is plastered on the Stadium and the ‘famous’ red white and blue strips of a club that eventually might rise to the top of what is regarded is a lower quality European league whose representatives progress in Euro competitions is sporadic to say the least.
Surely bunging a few quid to have Sports Direct on Celtic’s tops would achieved the same result being it is going to take a heck of a lot more dosh to get T’Rangers back to be competitive and Scotland and Europe.
Still think the main issue thing is that with minimal outlay and just keeping enough folk onside he can bag the loyal fans strip and merchandising sales on a long term deal backed up with potential control over the assets of the football club while his hand remains on the bath plug, ready to pull it at any point he pleases.
easyJambo says:
October 27, 2014 at 9:30 am
4
0
Rate This
easyJambo says: October 27, 2014 at 9:20 am
I’m pretty sure that it was RIFC who purchased Edmiston House and the Albion car park, and not TRFC.
===========================
Edit: I’ve checked the TRFC accounts and it was the football club who bought Edmiston House and the Albion.
mea culpa
—————————-
Can’t help but notice that it is RIFC “The Company” that are granting the security! I wonder what AIM think of oddly vague announcements?
Half a pound to Ally McCoist
Half a pound to Green’s Chumms
That’s the way the money goes
Pop goes the Albion
The Albion and Edmiston House seem to be spending more time in the pawnbrokers window, than anywhere else these days.
It really can’t go on.
John Clark says: October 27, 2014 at 11:04 am
I seem to remember that Dundee FC were glad to see the back of Gardiner,as a ‘divisive’ influence? Sounds as though he would fit right in at Ibrox. How has he been at Hearts?
=========================
Like every other Ann Budge appointee he has kept a low profile and is working away quietly implementing her strategy for the club.
There are a couple of other large egos in Ann Budge herself and Craig Levein to contend with if he sought to go solo or off message.
What I’m really saying is that I haven’t a clue what he’s been doing. ❓
You would have to question why anyone with a half a clue about the current real-politik, i.e. who doesn’t have Sports Direct tattooed across his chest would take the CEO job at the moment? Shirley?
Smugas says:
October 27, 2014 at 12:06 pm
Everybody from the Media, to Ranger’s fans to us, really just needs to kick back and watch the show, cos what happens inside RIFC is now out of their hands.
The fans as customers, can have an external impact, but Ashley will not care a jot about songs, blogs, flags or any other non-monetary protest
easyJambo says:
October 27, 2014 at 11:56 am
‘.What I’m really saying is that I haven’t a clue what he’s been doing.’
——–
Apart, perhaps, from quietly lobbying for a place in the Ibrox sunshine? 😀
I made a post yesterday where I stated that Ashley had paid £1M for his pre-IPO shares. I’ve rechecked some old CF documents and it was £1.5M, for which he received 1,500,000 shares at £1 and a similar number of free shares, thus he obtained his shares at an average price of 50p.
So he has invested approx £4.35M thus far, £500k more than I had indicated earlier.