It Is Better To Offer No Excuse Than A Bad One


HOMUNCULUSDECEMBER 21, 2017 at 20:07 Yes but have you amortised those …

Comment on It Is Better To Offer No Excuse Than A Bad One by melbournedee.

HOMUNCULUSDECEMBER 21, 2017 at 20:07
Yes but have you amortised those values EJ.
Amortisation is a non-cash charge and doesn’t result in any cash flow benefit. From the 2016/17 accounts, the unpaid transfer costs at 30th June totalled £7.8 million.
That means Dave King’s promises to fund the club are less than the outstanding transfer costs and all other activities undertaken by the club will generate a positive cash flow, a proposition that I have great difficulty in believing.

melbournedee Also Commented

It Is Better To Offer No Excuse Than A Bad One
ALLYJAMBODECEMBER 22, 2017 at 13:11
Decision [130] For the above reasons in respect of the first issue I find in favour of the respondent, however, in respect to the second issue, I find in favour of the panel and grant the order sought. I reserve all questions of expenses
Could this be a door left open for an appeal?

The 2 issues considered by the court were:

1) What, on a proper construction of section 995 of the Act, is the ambit of the court’s discretion?

2) If the court has discretion to refuse the order, should the court in the exercise of that discretion refuse the order sought?

Issue 1 – The court agreed that it did have discretion.
Issue 2 – The court decided that it shouldn’t refuse the order an so the order is granted.

No wiggle room – DCK is stuffed

Recent Comments by melbournedee

Who Is Conning Whom?
Has the TOP issue finally hit? See the link below from the Rangers’s web site
Please see via the undernoted links the Opening Position Disclosures and Dealing Disclosures received by Rangers International Football Club PLC (RIFC)  as required under Rule 8 of the City Code on Takeovers and Mergers.
Details of RIFC in respect of whom relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel’s website at, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel’s Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.
The Takeover Panel Executive has granted RIFC and Mr King a dispensation from the requirements under the Code that announcements must be published via a Regulatory Information Service (RIS).  Any Opening Position Disclosures and Dealing Disclosures required under Rule 8 of the Code may be made to Rangers by email to [] and will be published on Rangers’ website at [].  A copy must also be sent to the Panel’s Market Surveillance Unit by email to
Rule 8.3 Disclosures – Rangers International Football Club PLCRiver and Mercantile Asset Management LLP – LINKGlenmuir Limited – LINKMASH Holdings Limited – LINKClub 1872 Shares CIC – LINKAlIstair Murdoch McCoist – LINKAlexander Easdale and family – LINKMASH Holdings Limited Dealing Disclosure – LINKClub 1872 Shares CIC Dealing Disclosure 1 – LINKClub 1872 Shares CIC Dealing Disclosure 2 – LINKJulian Wolhardt’s Dealing Disclosure – LINK
Rule 8 Opening Position Disclosure:
David Cunningham King – LINK
Rangers International Football Club PLC – LINK

Enough is enough
Interesting that the accounts have been signed off by Dave King and the Auditors on 26th October.

So the day’s events must have been:

– Pedro Caixinha turns up to take training as usual in the morning
– Dave King signs off the accounts followed by the auditors
– Pedro Caixinha summoned to Ibrox to learn that he has been terminated as Rangers manager
– Too late to change the accounts, so no mention of the payouts due to Pedro and his team, no addition to he future funding requirements to be provided by NOAL and other investors.

Very convenient.

Enough is enough
EASYJAMBONOVEMBER 3, 2017 at 23:00 The costs of acquiring a player, plus his contract (wages) for the period of his contract, are recorded as “intangible assets”, e.g. if a player is bought for £1.5m, and is paid £500k a year for 3 years, then that player represents an intangible asset of £3m in the accounts (£1.5m + 3 x £500k).

The future wages for the player won’t be included in the intangibles figure, only any “up front costs” that need to be paid to secure the contract, then amortised over the life of the contract or written off when the player leaves the club (e.g. Garner, whose remaining value will need to be charged to next year’s accounts).

The accounts specifically mention agents fees and I would expect sign-on bonuses would also be included.

Wages would be charged to the income statement as earned/paid.

Enough is enough
NAWLITENOVEMBER 3, 2017 at 22:39
If Dorrans’ signing was after the accounts cut-off, then I can only see Cardoso, Pena, Herrera, Candeias and Morelos signing for a fee according to TransferMarket. Their fees listed there total only £7,380m not the c£10m shown in the accounts. Anyone any ideas?
Joe Garner signed after last year’s accounts so would have been included in the c£10m. 
“The costs associated with acquiring players’ registrations, or extending their contracts, including agents’ fees, are capitalised and amortised, in equal instalments, over the period of the respective players’ contracts.” 

Enough is enough
EASYJAMBONOVEMBER 3, 2017 at 21:47
31. POST BALANCE SHEET EVENTSThe following events have occurred subsequent to the year end:
Capital CommitmentsThe Group contracted for capital expenditure on stadium improvements and grounds equipment amounting to £797,000.
Acquisition and sale of player registrationsThe Group contracted for the purchase of one player and sale of four players. The net receipt resulting from these transfers, after taking account of direct costs, is £240,000.  (so much for the claims about spending £10m)
Interesting on the capital commitments – doesn’t mean that is the total extent of the required repairs, merely those that have actually been contracted to date.

Acquisition and sale of player registrations
Those are the transfers that have occurred since 30th June. I think the one player purchased was Dorrans.
The movement in intangible assets does show that £10m was spent on new players over the year to 30th June.

Player Registrations

Cost or valuation at 1 July 2016 3,695
Additions 10,330
Disposals (1,930)
At 30 June 2017 12,095 

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