Our First podcast features a general discussion involving our own Big Pink and Auldheid.
Since it is the first podcast there is no particular agenda save for a general chat about TSFM, the state of Scottish Football, and some few reminiscences. The chat covers a lot of ground, but establishes the ethos of the blog pretty well.
Topics discussed include FPP, Leadership, Interdependence, Scotland’s self-regard, Coaching and Nurturing of Talent, Redistribution of Income, Rangers, Forgiveness, domestic strife 🙂
The interview was conducted a couple of days before the latest round of Armageddon, when Big Pink and Auldheid felt safe and well 🙂
The link below is to the iTunes store page for our Podcasts. If you go there, you can subscribe to the podcast (on your PC or iPhone) and new episodes will automatically be sent to you.
Since we have just been approved for a spot on iTunes, the iTunes search side of things may not work properly for a day or so.
Campbellsmoney says:
February 20, 2014 at 8:52 am
GeronimosCadillac says:
February 19, 2014 at 9:36 pm
Re Deed of Novation V Deed of Waiver are these actually the same thing being talked about by CW and RIFC but they are just using different terms. Is the use of the DofW a more commonly used English legal term whereas the DofN is more of a Scottish term?
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No
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One of the things that has intrigued me is the Scottish ‘excuse’ that gained currency to explain the switch from the English registered Sevco 5088 to the Scottish registered Sevco Scotland.
Going back to the TRFCL board minute of the 31/10/2012 the reason for the switch is stated as: ‘. . . the directors of Sevco 5088 had, following tax advice and considering the commercial objectives for the acquisition of Rangers, decided to establish the Company for the purposes of making the acquisition of Rangers pursuant to the CVA or APA’.
The ‘company’ means Sevco Scotland btw and there is no mention of the need for it to be a Scottish company. So what were the tax and commercial objectives which necessitated the switch in companies. Anyone got any ideas ❓
I would point out again that the minute refers to Sevco 5088 ‘directors’ and not just to ‘director’ which presumably would be Green although as we have all learnt that nothing should be taken at face value in this tale of intrigue and double-dealings with mystery offshore investors flitting on and off stage – at least one of whom would appear to be a figure of interest to Interpol with many others of interest to HMRC and various UK police forces it would appear.
Rangers International Football Club plc
(“Rangers”, “RIFC” or the “Company”)
Statement re. Press Speculation
The Board of Rangers notes the press articles this morning and confirms that it is holding discussions with two major shareholders with a view to arranging a loan of up to £1.5m to provide working capital for the Company. Documentation and terms have not been finalised, and a further announcement will be made when appropriate.
Apparently TRFC’s £2.5m Line Of Credit has been used up. Does this mean that if they make it to next season they are £2.5m down before they even start? Would the first £2.5m of Season ticket money go to repay this amount?
Cannot wait to read the SMSM version of this loan being a positive in this saga. Expect words like boost cash injection blah blah.
I bet Easdales and Laxley are glad players did not take pay cut.
Show me the money.
Rufus
You forgot interest and fees, but fundamentally yes, and the 2.5 is about to become 4. Guessing we won’t see it reported that way though 😉
EDIT EXILED – go and do us a favour and edit your link to the herald piece 1 POINT 5 million bailout.
neepheid says:
February 20, 2014 at 9:23 am
Hmm, and there was me speculating that the latest ‘good news’ from the MSM was as a result of some PR puff piece! Of course, it couldn’t possibly be, because that would mean that TRFC had deliberately put out an exaggerated statement, then put out another, less heralded statement, to correct the position so they don’t break AIM regulations (if any actually exist 🙄 ).
£1.5 million? That will cover next weeks wages and not a lot more. Last June wages stood at £17.8m. They may be down to £15m or so. It still eats up all of that loan
Alexander Easdale, assuming that he is one of the ‘two major shareholders’ who are considering making a ‘loan’ to Rangers, is only a major shareholder because of the number of proxy votes he holds.
Will he be making a ‘loan’ on his own behalf or on behalf of those shareholders who trust him with their proxy votes?
Whenever I read about the Easdale brothers and their involvement with RIFC Plc one question jumps to mind. Why have two serial, reasonably successful small town businessmen, who support Greenock Morton, put money into Rangers? There is only one answer. To make money. They have as much interest in Rangers as Blue Pitch Holdings and the Margarita Trust. They would not have been accepted so readily into the fold if they had any other objective.
Just a thought. Is the Laxey/Easdale loan an attempt to ensure the pre-emption resolution gets through at the next AGM (hence later in the year). If the 2.5m credit facility is also from a shareholder could the AGM have a big stick being wielded in the form of if we don’t convert these loans to shares we will have to repay them. If its at the same rate as previous director loans then it will be over £10m (from £4m)by the time the next agm rolls round.
Or, the 1.5m gets them to the cup tie and they get Ian Black to put whatevers left on Albion to score in the last minute 👿
No1 Bob says:
February 20, 2014 at 9:43 am
Whenever I read about the Easdale brothers and their involvement with RIFC Plc one question jumps to mind. Why have two serial, reasonably successful small town businessmen, who support Greenock Morton, put money into Rangers? There is only one answer. To make money. They have as much interest in Rangers as Blue Pitch Holdings and the Margarita Trust. They would not have been accepted so readily into the fold if they had any other objective.
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I think you might be forgetting that – 1. people such as this have access to funds that can be used to shore up short term funding (that might be why the “masterminds” behind this asked them in in the first place) and 2. they probably expect some kudos out of being associated with such an institution. Being asked to put their hands in their pockets by from time to time might not have been what they really expected but they might just be willing to do it once or twice to hang on to their positions (and the perceived kudos).
neepheid says:
February 20, 2014 at 9:23 am
Rangers International Football Club plc
(“Rangers”, “RIFC” or the “Company”)
Statement re. Press Speculation
The Board of Rangers notes the press articles this morning and confirms that it is holding discussions with two major shareholders with a view to arranging a loan of up to £1.5m to provide working capital for the Company. Documentation and terms have not been finalised, and a further announcement will be made when appropriate.
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How things have changed for Rangers 🙁
I remember the days when Minty didn’t deal in any amount that wasn’t in the tens of millions to be lavished on his beloved Rangers.
Nowadays two major investors, at least one with Board representation at Ibrox, are scrabbling about to raise £1.5 million to keep the lights on – not sure if it’s enough to pay the players’ wages right enuff 🙄
I have always said that if push came to shove and it was down to a few million to get through the season there was a good chance that someone would stump up the cash.
As others have pointed out above if the £2.5m credit line rumour is true then RIFC will have pumped that along with a further £1.5m into TRFC who apparently will now probably have an internal debt to the operating company of some £30m.
Season ticket prices may go up and some cuts may be made but I doubt they will significantly eat into what appears to be an increasing internal debt. The only obvious and known cut made to date is one month of McCoists salary.
Once again heading back to the Dragon’s Den – where exactly is the return coming from for the investors and those providing the short terms loans. The existing shares and those that may be issued in the future will not provided a dividend anytime soon.
Given the shennanigins down south involving clubs like Coventry and the recent problems at Hearts are the Scottish Football Authorities not a tiny bit worried about a football club being in so much debt to the controlling body.
Remind me again why Scottish Football needs this unsustainable football club that appears to have learned nothing from the last few years, while everyone else is tightenting their belts and doing what is necessary to deal with the reality of the current economic climate?
Rufus Otis and Hugo says:
February 20, 2014 at 9:28 am
Apparently TRFC’s £2.5m Line Of Credit has been used up. Does this mean that if they make it to next season they are £2.5m down before they even start? Would the first £2.5m of Season ticket money go to repay this amount?
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Don’t forget the £1 million from SportsDirect. Of course that isn’t a loan but just an interest-bearing draw-down facility up to £1.5 million secured on property assets.
I reckon Rangers are heading for another world record for how many ways to disguise a loan so that the Bears don’t think it’s a loan 🙄
ecobhoy says:
February 20, 2014 at 9:51 am
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… Nowadays two major investors, at least one with Board representation at Ibrox, are scrabbling about to raise £1.5 million to keep the lights on – not sure if it’s enough to pay the players’ wages right enuff
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What are the chances that the Brothers are actually being taken for a ride? Could they be in way over their heads? And will they have to borrow to make their part of the loan? I take it they could borrow against their business to raise cash?
I note that over on the Bears Den many are pointing out that at many football clubs people/investors put cash in to help the club out when required.
However they fail to recognise that the folk in control down Ibrox way aren’t emotionally attached benefactors like the Thompsons at Dundee Utd or Multi Billionaires who see the football club as a play thing.
As long as the money is coming in it would appear the blinkers are still on for many a fan as to the potential for everything to be held to ransom, once again, by Spivs!
You’ve a point Wottpi – even friendly money doesn’t come free and has to be paid back. At least Ann Budge has been straight with Hearts fans.
Unlikely. They’re so high profile (which they need to be to get the ‘kudos’ as someone put it) that any mainstream lender worth his salt is going to know exactly where its going, and thats its a pretty safe assumption it aint coming back! Depends how much taxi profit they’ve been declaring I guess.
Fully expect statement from Ally soon saying his quest to raise the £30m needed to get his team ‘back where it belongs’ has got off to a flying start. After just one week they’re already 5% towards target and at this rate of progress everything will be rosy by this time next year.
He’ll try and say that it just goes to demonstrate the depth of support that exists for his club and will encourage others to chip in.
The wee sowel…
Smugas says:
February 20, 2014 at 10:22 am
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Danish Pastry says:
February 20, 2014 at 10:08 am
What are the chances that the Brothers are actually being taken for a ride? Could they be in way over their heads? And will they have to borrow to make their part of the loan? I take it they could borrow against their business to raise cash?
Unlikely. They’re so high profile (which they need to be to get the ‘kudos’ as someone put it) that any mainstream lender worth his salt is going to know exactly where its going, and thats its a pretty safe assumption it aint coming back! Depends how much taxi profit they’ve been declaring I guess.
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“taxi profit” Is that what it’s called nowadays ❓ 🙄
A comment from the Darkside explains all as far as I am concerned and reinforces why the final end is inevitable whenever that might be. The fight is on at Ibrox to pay the leccy bill and the wages but the fantasy of getting back to the ‘rightful place’ runs too deep to change:
“The Board of Rangers notes the press articles this morning and confirms that it is holding discussions with two major shareholders with a view to arranging a loan of up to £1.5m to provide working capital for the Company. Documentation and terms have not been finalised, and a further announcement will be made when appropriate”
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If we take that statement at face value then Rangers are in the middle of negotiating a loan from key directors, it has not been finalised yet but the MSM are already reporting it. Rangers only felt the need to comment because of the newspaper reports so that would imply that this information was leaked to the press, as the company did know it would become public knowledge until they read about it this morning.
Someone is playing games or telling blatant untruths, they knew the press would run with it as they gave them that information in the first place or there is a leak at the highest level, so what is it?
Smugas says:
February 20, 2014 at 10:22 am
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Unlikely. They’re so high profile (which they need to be to get the ‘kudos’ as someone put it) that any mainstream lender worth his salt is going to know exactly where its going, and thats its a pretty safe assumption it aint coming back! Depends how much taxi profit they’ve been declaring I guess.
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Cheers Smugas. Just seems to me that they are some of the few involved who actually have assets of their own. As such, they must be a prime target … no, that sounds bad … they must be seen as a financial opportunity. Or have I become too cynical?
Whatever, if not a loan, then they must have a few bob stashed in the matress.
Madbhoy24941
Think Phil’s earlier blogs show there is definitely a leak somewhere.
Danish Pastry says:
February 20, 2014 at 10:08 am
ecobhoy says:
February 20, 2014 at 9:51 am
… Nowadays two major investors, at least one with Board representation at Ibrox, are scrabbling about to raise £1.5 million to keep the lights on – not sure if it’s enough to pay the players’ wages right enuff
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What are the chances that the Brothers are actually being taken for a ride? Could they be in way over their heads? And will they have to borrow to make their part of the loan? I take it they could borrow against their business to raise cash?
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I suppose borrowing against their businesses would depend on how healthy they are in a financial sense and whether there are any assets that can be ‘charged’. From what I have seen from other posters I doubt if they have much spare cash which isn’t needed for their businesses.
As to being taken for a ride I suppose that many would think that unlikely but then Rangeritis can be a mind and vision-altering condition that defies normal business judgement and even commonsense. Still if they stick to taxis and buses the ride should be ‘free’ but much more problematic if it’s across a pretty rough-looking football pitch IMO especially in the dark when the leccy gets cut-off.
Think that if things are as desperate as they appear then can’t help but wonder if stadium naming rights will be back on the agenda.
‘The Begging Bowl’ anyone?
I’ll get my coat.
So Sevco borrow £1.5m on top of their other debts.
That’s the February wages paid.Who’s paying March and Aprils?.
ST money if increased by 50% and there’s a similar take up of around 35k will bring in around £9m net of VAT.If renewals start in May then if TRFC have borrowed more cash to cover March/April costs(4-5m)then with this £1.5m and the other £2.5m added,that’s another maybe £9m debt and next season hasn’t even started.
Unless a way is found to cut costs severely this club will be bankrupt before next season.that’s if they can get through March-May till cash comes in.
So here’s an improbable theory.
The £1.5m is to fund an administration of TRFC.
This allows RIFC to retain the assets and dump the club,preferably to someone who will rent Ibrox,giving Laxey etc a long term return.Failing that,they sell the properties.
If they realise £25m that gives a return of around 37p per share,a premium of around 30% on todays price.
I’m thinking out the box here as I don’t see any other way.If RIFC don’t act quickly to cut costs and that almost certainly means decimating the club,then Laxey and the Easdales won’t have to worry about converting their loan to shares in 12 months.There won’t be a company to get shares in.
AyeRightNaw says:
February 20, 2014 at 10:40 am
Think Phil’s earlier blogs show there is definitely a leak somewhere.
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My experience tells me that in normal circumstances, there are not leaks of this type in discussions of this nature. However, what we do tend to see is strategic placements of selective information designed to look like leaks!
£1.5 million…..that is 1 months salary run….what about out going debts…external running costs?
What is the significance in allowing the lame dog to run for 1 more month…it still doesn’t reach ST renewal…how will anyone know if the £1.5 million was provided? Other than the wages arrive in the bank accounts?
I am guessing if true…they are buying time…for what…who knows!
As regards providing a share return…really…who has approved that and has AIM been notified…does AIM care?…what value is there in having shares in a Company…whose shares have headed south faster than a brick in water? £1.5 million would attract a possible £52k a month interest on the capital unless of course they have agreed to a payday loan rate? In which case…pick a number!
It really is news that should attract serious media attention as a concern to Scottish football….a club needing to borrow £1.5 million to keep going….signs of a club in distress…..and the SFA…..sweet F*** all from them….
Madbhoy24941 onFebruary 20, 2014 at 10:52 am
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AyeRightNaw says:
February 20, 2014 at 10:40 am
Think Phil’s earlier blogs show there is definitely a leak somewhere.
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My experience tells me that in normal circumstances, there are not leaks of this type in discussions of this nature. However, what we do tend to see is strategic placements of selective information designed to look like leaks!
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Aye you might well be right but the impression I get is that they are in a real flap and I can’t see the strategic advantage in deliberately placing story with someone who will be unsympathetic and who has track record of digging that wee bit deeper.
Danish Pastry says:
February 20, 2014 at 10:08 am
What are the chances that the Brothers are actually being taken for a ride? Could they be in way over their heads?
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Without casting aspersions, of course, taking these Brothers for a ride is not an approach that I would recommend. Perhaps they are the latest victims of Rangeritis? A disease I wouldn’t mind catching myself, since all known victims to date have miraculously recovered following the administration of a suitcase full of other people’s money.
torrejohnbhoy(@johnbhoy1958) says:
February 20, 2014 at 10:49 am
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Very possible…however for it to cover Admin costs…they will need to be quick in firing the starting gun…
Here is another thought….does the £1.5 million increase the debtors percentage to a favourable level in deciding a CVA?
Paulmac2 says:
February 20, 2014 at 10:53 am
As regards providing a share return…really…who has approved that and has AIM been notified…does AIM care?…what value is there in having shares in a Company…whose shares have headed south faster than a brick in water?
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The share price is actually holding up well, because the investors are looking at this as a pure property punt. RIFC is currently valued at around £18m. The properties must be worth at least that, especially if they can be rented out to whatever is playing at Ibrox next season. If I was absolutely confident that TRFC was about to be offloaded and the properties transferred to RIFC, I would have a dabble myself. I don’t see how the share price can go any lower, unless the controlling shareholders themselves catch Rangeritis. I rate that as unlikely in the extreme.
AyeRightNaw says:
February 20, 2014 at 10:48 am
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Unless you are going to pay them enough cash to cover their costs for the next 2-3 years then naming rights are a non starter…you would simply be giving away money…and the only person I know of that appears to have given away money are the supporters who bought shares.
I know that this is a Football blog but Bloody well done to our Girls who have won an Olympic medal.
Paulmac2 says:
February 20, 2014 at 11:08 am
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torrejohnbhoy(@johnbhoy1958) says:
February 20, 2014 at 10:49 am
…………………………………………….
Very possible…however for it to cover Admin costs…they will need to be quick in firing the starting gun…
Here is another thought….does the £1.5 million increase the debtors percentage to a favourable level in deciding a CVA?
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Its impossible for anyone outside the tent to know.
O/T
I notice the first 4 games of uefa CL last 16 were all away wins … Ah reckon next week could be the same … Strange but True !
neepheid says:
February 20, 2014 at 11:10 am
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Unless they can get enough cash to keep going until ST renewal…then its admin…and a freezing of share trading …however I do understand the thrust of the position you suggest…and would agree that looks more like the angle being hedged.
Campbellsmoney says:
February 20, 2014 at 11:19 am
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Gonnay open the zip to the tent then… 😉
Tic 6709 says:
February 20, 2014 at 11:19 am
Well said, Tic, great to see Scottish players at the top level of a sport. Good luck to the guys tomorrow, going for gold!
Somebody seems to have uploaded lots of the original CF stuff back on to Scribd. I thought all this stuff had been taken down months ago? Anyway, if anyone is interested, here is a link which produced 116 documents-
http://www.scribd.com/search?query=charlottefakes
Tic 6709 says:
February 20, 2014 at 11:19 am
I know that this is a Football blog but Bloody well done to our Girls who have won an Olympic medal.
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Just noticed…well done the stone chuckers…..and without sounding sexist….I might take up the sport having just clocked eyes on the Swiss skipper! 😆
Ah notice the DR reports it as a 1.5m “windfall”
Ah always thought a “windfall” was something more positive … Naw ?
Paulmac2
Re naming rights.
Totally agree – just couldn’t resist making a poor joke.
I can’t see anyone investing serious money without demanding security over property. And even that would have limited appeal given the repeated abject failure of successive Boards and CEOs to run a sustainable business from that venue.
whisperer says:
February 20, 2014 at 11:21 am
O/T
I notice the first 4 games of uefa CL last 16 were all away wins … Ah reckon next week could be the same … Strange but True !
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I wonder how much Black had on that? Or does he only bet against his own team?
So, this is my take…..it might not be accurate or popular, but hey ho, TU/TD – do what you like
Sevco are looking for a facility of up to £1.5M
IMO, that is enough to get them to the middle of the ST renewal time and most likely through this season.
I can’t see the current board putting the club into admin BEFORE season tickets are in. So, I reckon the plan is pretty simple. Sums have been done and despite the fag packet calculations of us bampots £1.5M will get them to the end of May
They may well have drawn down the full extent of the money from Sports Direct and maybe there was a £2.5M credit line from one of the board and with this new £1.5m that might just see them through until the end of the season
there is income from SFA for Ibrox being rented out (and maybe even them getting to semi’s and final) – plus walk up gate money
And the ST renewal appeal will be out well before season ends and some punters will put some cash in.
That qtrs VAT/NI might be a bit late until ticket money is in, but i’m sure they can negotiate that.
then, in the summer, once the cash is in we’ll see a couple of things – some or all of the following
Laxeys will get shares for their loan, i reckon a £1.5M loan for 4 months could see them getting about 7M shares – which is about 10% of the clumpany – consolidating their position as major share holders
Assets moved from TRFC to RIFC in consideration for the debt owed to RIFC PLC
TRFC sold – or even put into prepack/admin and then sold, though most likely sold as is, furra pound with a long lease agreement on Ibrox and MP (unless there is some way that Laxey can sell off MP for some kind of development – could council do a swap for allander centre which has development permission?)
The big cuts will come in the summer after all ST money is in, there will be a host of games against Linfield, chelsea and hamburg, massive appeal for funds from all sources, players will be told to find new clubs for free, salary will be given his marching orders….. a new slimline Sevco will be left to fight it’s way in the championship with a much depleted squad and no guarantees of getting out of the league.
It makes no sense for the likes of Laxeys etc to let it go into admin right now, there are tickets to be bought in a few months to repay them and they could have a much increased sliced of a property company for small risk
the blue knights or other “Rangersmen” will have to step up or watch TRFC fall…..but even then, there is a chance the fans could take it on themselves….very unlikely, but not impossible.
thats my thoughts, so stand down bampots, i don’t think we will see anything major in the next 3 months
though, they do have to submit UEFA license application and 6 month accounts and apply for SPFL license for next season – will they wriggle through that public expose?
whisperer says:
February 20, 2014 at 11:37 am
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Ah notice the DR reports it as a 1.5m “windfall”
Ah always thought a “windfall” was something more positive … Naw ?
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As someone quipped on Twitter, there will be many Paradise Windfall winners panicking at their interest repayment rates
Tic 6709 says:
February 20, 2014 at 11:19 am
13 0 Rate This
I know that this is a Football blog but Bloody well done to our Girls who have won an Olympic medal.
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Careful now, “our girls” are British you know, don’t want you to be having a contretemps with that former goalie who was tweeting about Britishness yesterday 😆
echobhoy, your message box is full
Danish check your mailbox in 2 mins
this is worth a read – from the Sevco AGM on disapplication of rights
http://www.thefootballlife.co.uk/post/70620598603/the-rangers-agm
The Rangers AGM
2013 has been another annus horribilis for Rangers.
In January this year, Rangers’ share price was over 90p. Immediately rising after the original IPO, it then suffered a slow decline. As interest in Rangers’ tour through the lower leagues has waned so too, has confidence in the financial future of the club.
Rangers’ share price now sits at just over a third of it’s high earlier this year. In spite of boardroom battles that created demand for shares, the price has continued to drop. This has a knock-on effect on the club’s valuation – what was valued at over £50m in Division Three is now £22m in League One.
It is contradictory – Rangers succeed on the pitch, the price drops. Easdales buy shares to shore up support for the AGM pushing demand, the price drops. Not even the board “winning” at the AGM could put the share price up – the reaction was a 1/2 penny drop.
It begs the question of what exactly has gone wrong or, perhaps more pertinently, what have the board done wrong? What is their plan and why does no-one believe in it?
As published to the stock exchange, the new look board are planning to connect to their fanbase, deliver professional leadership, manage their footballing assets, protect Ibrox and strengthen their ties to the community.
Connect to a fanbase that has already rejected them? Good luck. The reaction of the fans on certain message boards was to move from having a red card process to calling in the boys from Ulster to do to the Rangers board what they tried to do to Neil Lennon.
But that isn’t what it really means. Not at the end of the day. The Easdales, while they may well have a bus franchise that is going swimmingly, are hardly about to pop up in Dragons Den – these chaps are more Dunkin Donuts that Duncan Bannatyne. They are not David Murray. Unlike Murray, they do not possess the pizazz or the influence to get an infinite credit line, nor do they have a multinational company of their own to bail the club out if needed nor do they live in an era where such benevolence would be forthcoming from the financial sector.
No, what it really means is that they money has run out. Delivering professional leadership means delivering the message that belts must be tightened in a manner than doesn’t send the fans to war. “Managing football assets” is not expansion, upgrading or evolving it is simply a message to McCoist that he must make do with what he has or less.
But those are not the facts that mattered most to the Ibrox powerbrokers yesterday. Those that mattered most were that everone was re-elected, even Brian Stockbridge, with over 65% of the votes in favour. The board might not be popular with the fans, but the fans don’t own the club, the men in suits do. There was never going to be a blitz in the boardroom – investors don’t like revolution – but for the requisitioners to not even manage to get a third of their votes was a massacre and something that will silence protests at board level for some time. The Requisitioners simply did not offer a plan that was convincing to large investors in any way shape or form. The “fans” have been put in their place, as such – they don’t have the sway to get a single “Rangers man” on the board.
It paints a very different picture to that fans want. Not only do they not get their men on the board, but the current board, as all scouted and recruited by one Brian Stockbridge (the Easdales do not have to contacts to get a Daivd Somers or a Graham Wallace), stay in place. The fans may despise Brian Stockbridge, but it is clear that he has been the smartest man throughout managing to stay relevant, to consolidate his position and to strengthen his influence at the club in a manner that the outspoken Charles Green could not. Stockbridge may not be king of Ibrox, but he has certainly shown that he is the king maker.
And, on the face of it, this might seem like a tough day for the board publicly but a fairly decent one privately. Brian Stockbridge faced questions about the cost of the IPO, easily swatted away as simply the cost of doing business, and the value of his contract. All the board had to go through the rigmarole of stating that there is no puppetmaster but, all things considered, they acquitted themselves well and, with the big investors behind them, why shouldn’t they? The Requisitioners may well now crow that the cat is out of the bag when it comes to Rangers structural problems but, the fact remains that that cat was already out of it’s bag and was, in Paul Murray, only being shouted about by someone with such little credibility as to actually shore up support for the board. Politically, the requisitioners were little more than an embarrassment – when an olive branch would have been all that was needed to thaw relations and to get one of them on the board, they instead chose to have a shouting match that benefitted no-one: especially them.
The board announced a 120 day business review which includes that management of football assets – the media portrayed this as a strengthening of the scouting network. It should be called what it really is – the club looking down the back of a £2,000 sofa for pennies and wondering where all the pounds have gone.
But, under all the headlines and the personalities, one thing got missed a little bit by the media yet it is the most important thing of all.
Resolution 10 was rejected.
Disapplication of pre-emption rights was rejected.
There are two way of looking at the ramifications of that, but first it probably needs defining. Some would think of it as first refusal: if a company wishes to conduct a share issue, pre-emption rights mean that those shares must, for a period, be offered only to existing shareholders. Disapplying these rights makes it considerably easier to raise money as it makes it considerably easier to woo new investors. This disapplication of pre-emption rights has been part of the club since ther very beginning (as pointed out by the sadly missed Paul McConville at http://scotslawthoughts.wordpress.com/2012/07/03/why-did-sevco-5088-ltd-pass-a-resolution-disapplying-pre-emption-rights/ ).
And it was quashed yesterday.
It’s an extremely important issue. It means that it has suddenly gotten far more difficult for Rangers to make money – to have another share issue would mean that new shares have to be offered to current investors first. It also puts them out of step with the market – virtually every other AIM company has acquired disapplication of pre-emption rights.
When I say virtually every, I mean virtually every – as early as 2010, under 4 years after the legislation allowing it came into place, only one AIM company did not have this voted upon and passed at their AGM.
This, in turn, means that shares have to be issued at a lower price as, not too surprisingly, potential new investors tend to be of the opinion that if the current shareholders do not possess the confidence to invest a bit more into the club then neither should they. It also raises the possibility that, should a new share issue be considered with pre-emption rights in place, a current shareholder could gobble them up and make themselves kingmaker of the club.
That the resolution failed to be passed makes doing business much harder for Rangers. Whereas before they could have taken the vote of confidence on to a share issue to raise money for the club, now there is not that option – a new share issue would potentially destabilise the club even further or lead to a total flop of a share issue that would kill confidence in the club’s financial health.
It means that, if we accept that Rangers have a balance sheet that is not particularly healthy, as proven by their accounts, the only possible way for Rangers to correct this balance is to make big spending cuts. Rangers must now survive the next 150 days – 120 days of the business review and 30 days to call an EGM to say to shareholders that they either back disapplication of pre-emption rights or the club cuts spending to the bone.
75% of the vote was needed to pass that resoltion – it fell 8% short, close to the same vote share as that of Brian Stockbridge’s re-election. The institutes backed it, the fans didn’t.
The Rangers fans couldn’t vote the board out, but they did make sure that their hands were tied behind their backs. They made sure that the club can’t raise money. They made sure that Rangers go into the most severe austerity of their history and, perhaps, even into administration once more.
The institutes voted to save the club.
The fans voted to kill it.
At this time of year, what could be more fitting than the turkeys voting for Christmas.
Not the hud, I just sent you a pm
Not The Huddle Malcontent says:
February 20, 2014 at 11:43 am
I can’t see the current board putting the club into admin BEFORE season tickets are in.
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Nail…..Head…..Bang!
briggsbhoy says:
February 20, 2014 at 11:52 am
1 1 Rate This
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Done. Fits the other bits of the puzzle.
Danish Pastry says:
February 20, 2014 at 11:51 am
1 2 Rate This
Tic 6709 says:
February 20, 2014 at 11:19 am
13 0 Rate This
I know that this is a Football blog but Bloody well done to our Girls who have won an Olympic medal.
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Careful now, “our girls” are British you know, don’t want you to be having a contretemps with that former goalie who was tweeting about Britishness yesterday 😆
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ha ha, I saw that
surely 2Andy Gorams would have no problem being both Scottish AND British
(only, of course, that Andy isn’t Scottish, he just played for them – no wonder he has identity issues!)
Our Girls are Scottish and British (but not for much longer i hope!)
Just wondering – if the referendum is a YES vote, will history show that it was Andy Murray – Scotland that won Wimbledon or will it remain Andy Murray – GB?
Danish Pastry says:
February 20, 2014 at 10:08 am
ecobhoy says:
February 20, 2014 at 9:51 am
2 0 Rate This
… Nowadays two major investors, at least one with Board representation at Ibrox, are scrabbling about to raise £1.5 million to keep the lights on – not sure if it’s enough to pay the players’ wages right enuff
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What are the chances that the Brothers are actually being taken for a ride? Could they be in way over their heads? And will they have to borrow to make their part of the loan? I take it they could borrow against their business to raise cash?
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Funny you should say that. It reminded me of a conversation I had a few months back with another Inverclyde based businessman who said roughly the same as you. Small town players in the Big City don’t normally prosper.
— Volunteers wanted for Ibrox home games. Raffle tickets sold from buckets a quid a go, if your ticket ends in a 0 or 5 you win a bear in an orange tap key ring… A true money spinner..
£1,5m windfall jeez!!! If that is GOOD news what is the bad gonna be like?
Maybe the £1.5m is to keep Hector from closing up the big hoos…
JimBhoy says:
February 20, 2014 at 12:15 pm
2 0 Rate This
Maybe the £1.5m is to keep Hector from closing up the big hoos…
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it is funny you should say that……. 😈
however, if that is the case, it seems a crazy move by ANYONE to lend money to the organisation
However, i do note that the loan hasn’t been provided yet and is being discussed, maybe this is last roll of the dice before EVERYONE gets burned. Holding a gun to laxeys head maybe by leaking this story? maybe they have a WUO threat from HMRC
hmmmm, i’m still not convinced they will crash the bus before seasons end and ST money is in the bank
torrejohnbhoy(@johnbhoy1958) says:
February 20, 2014 at 10:49 am
So Sevco borrow £1.5m on top of their other debts.
That’s the February wages paid.Who’s paying March and Aprils?.
ST money if increased by 50% and there’s a similar take up of around 35k will bring in around £9m net of VAT.If renewals start in May then if TRFC have borrowed more cash to cover March/April costs(4-5m)then with this £1.5m and the other £2.5m added,that’s another maybe £9m debt and next season hasn’t even started.
Unless a way is found to cut costs severely this club will be bankrupt before next season.that’s if they can get through March-May till cash comes in.
So here’s an improbable theory.
The £1.5m is to fund an administration of TRFC.
This allows RIFC to retain the assets and dump the club,preferably to someone who will rent Ibrox,giving Laxey etc a long term return.Failing that,they sell the properties.
If they realise £25m that gives a return of around 37p per share,a premium of around 30% on todays price.
I’m thinking out the box here as I don’t see any other way.If RIFC don’t act quickly to cut costs and that almost certainly means decimating the club,then Laxey and the Easdales won’t have to worry about converting their loan to shares in 12 months.There won’t be a company to get shares in.
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That theory might explain why the club is still being run in a profligate business as usual manner as the new owners (Dave, Easdales & supporters!?) of TRFC will be able to inject cash into a more or less debt free club once the properties move up to RIFC in exchange for a debt write off.
More importantly the admin could be used to shed costs and manager/coaches prior to new ownership. BUt a club separated from it’s stadium is in mortal danger. If I was buying I would be looking to build a new stadium nearby using EU, Govt, Council, Sports Council etc money. It would be a hard one to sell but it could be done if it was to preserve the club and with moonbeams about it taking TRFC back to where they belong etc.. Of course the amount involved in improving and maintaining Ibrokes at present continues to grow.
Received via email this morning …
Dear XXXXX,
At our recent AGM I outlined our intention to undertake a comprehensive review of the entire Club and I am pleased to report that we are making excellent progress with this.
A key element of looking at how the Club operates and engages is to understand what is important to you, the Rangers supporters. If we can obtain your constructive input and suggestions then we can develop a comprehensive insight into what is needed to address the areas that are important to the fans.
We are in the process of rebuilding how your Club operates and based on feedback from many of you, it is clear that there is a need for professional business management, honest conversation, transparency and greater communication to allow us to move forward together.
Your Club Executive and Board is wholly open minded on how we can work together for the better development of Rangers.
The Club, and you the supporters, have continued to be tested in recent months as we work on developing the long term strategy for rebuilding the Club. We need you to know that by working together, we have the ability to position your Club for a stable, successful and sustainable future.
We hope that you will engage with the Club and talk to us openly. We value your input and we are Ready to Listen.
To start us on this journey together, I would ask if you could take a few minutes to complete this short survey which will give you the opportunity to commence the process of sharing your thoughts and opinions with us. We will consolidate all input received and use this as the basis upon which to move our wider supporter engagement initiatives forward.
Please click here to start survey.
Thank you for your support.
Graham Wallace
Chief Executive Officer
Rangers Football Club
edit: add link …
http://www.surveymonkey.com/s/ReadyToListen
Just got a bulk email from Graham Wallace (I once registered for some media thing). Carrying out a ‘Ready to Listen’ survey. Interesting (or should I say, confusing) timing considering the day’s other stories.
Blimey Angus, 12.34pm. Snap. Have you considered synchronized skiing?
“The Board of Rangers notes the press articles this morning and confirms that it is holding discussions with two major shareholders with a view to arranging a loan of up to £1.5m to provide working capital for the Company. Documentation and terms have not been finalised, and a further announcement will be made when appropriate”
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Let’s put this statement in context
RIFC is a Spiv company owned by Spivs and run by Spivs The sole purpose is enriching Spivs. The long term future of the club is irrelevant.
Spivs live for the short term. They say and do anything that implies long term decision making if it suits the short term goal. Morality ,ethics, integrity, long term impact etc is not part of their mentality
So this news story and todays statement were probably both written by JI. The purpose is to improve the image of the Easdales by implying they are “donating” money to TRFC in exchange for some future commitment to get shares. Like all Spiv PR releases the truth will be very different
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What are the most likely facts?
1. Cash is about to run out in days. An immediate cash injection is needed to keep going
2. There will have been ongoing discussion between the Spivs and those TRFC (not Spiv) supporters at the SFA and SPFL. This will almost certainly have included TRFC being promoted while in Administration. The establishment TRFC supporters will have put aside their disgust at dealing with Spivs in order to demonstrate support for keeping TRFC alive. However they will have been minded to set (achievable) conditions for their consent.
What are these conditions likely to be?
Here are some thoughts
TRFC win the title in the next few weeks by reaching a points total that cannot be beaten. At that point they are entitled to call themselves “Champions in Waiting”. The SFA and SPFL then have the option to publicly recognise that TRFC are Champions or say nothing.
Let’s say Administration has not occurred before TRFC are technically “Champions in Waiting”.
The SPFL could publicly declare TRFC as “Champions in Waiting” perhaps as part of some innocuous statement
This sets the ground nicely for a TRFC Administration
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3. TRFC go into Administration after the SPFL have declared them Champions in Waiting
What do the SPFL do then?
Do they declare that the points deduction will apply this season or next season?
Here’s my take
This is the point at which the SPFL abandon sporting integrity in the wider interests of avoiding civil disorder.
The SPFL will claim to be “Acting Tough” for the benefit of the Turnbull Hutton supporters
They will declare that the title is not won because a deduction of “X” Points will be made from this season`s points total
How many points will be deducted?
Here’s how it will be figured out
The SPFL will make a calculated football judgement as to whether TRFC can overcome a Newco or an Oldco points deduction and still win the title. The figure which ensures promotion will be the one chosen.
If the points deduction implies TRFC are a Newco it will be fudged in some nonsense language. If it implies TRFC are the continuation of Oldco it will be the centrepiece of the statement.
When the statement is released, the SMSM will be given the party line off the record. This will be along the lines of how much excitement it will add to the remaining fixtures particularly at Ibrox. Any Bears who don’t have quarter season tickets will be urged to snap them up fast. The contrast between crowds at Ibrox and Celtic park will become a regular feature on SSB
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So where does todays statement by Spivs fit into the above scenario?
I reckon
The aim is to increase income from the Gullible between now and ST sales in May
The short term loan is to pay for Administration. The Easdales loan was never going to be converted into shares since that would have diluted the holding of the London Spivs. The only reason it was floated to the press was to create the illusion that the money was “free” The reality is that it will probably attract an enormous charge repayable as soon as possible by the Gullible
ianagain says:
February 19, 2014 at 10:21 pm
30 1 i
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Sorry all Had to laugh.
From Rangers Rumours (The “finance page”)
At least the Ed’s not so daft.
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19 Feb 2014 20:16:14
I was talking to a guy at work I said we can’t go into administration as we don’t owe any bank, or company any major money. We are debt free, I said so how can we go into administration?- He said it was a different company that raised the IPO money (RIFC) and loaned the money to Rangers, and it’s in our accounts. Anyone got any info on this?
mullad
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Is not having enough monthly income to meet monthly expenditure too difficult to understand?
On Bryce’s NHS doctor example – the different sources of income would be fine if they were greater than expenditure but in RFC’s case they are not so the IPO capital and subsequently the credit facility were picking up the slack of the monthly burn so give a decent guage as to what that burn rate is and hence the severity of the situation.
Question – Was the IPO sold on the basis that it would not be used for operational running costs or was that just the succulent lamb swallowers reporting RFC PR releases unchallenged as per usual?
I have a vague memory of someone here pointing to a statement in the prospecus that said basically they will use the money for whatever they like in lawyer/finance speak.
Yeah, i went to the Bank Manager last week and asked him for a £10,000 “windfall “…. he did not have a clue what i was talking about and after I …eh…. put him right…..he directed me to Shelley . “So Mr Chris, your here to apply for a “Windfall ” , excellent just sign here, you are a homeowner right……good…….cos these “Windfalls ” don’t come around too often…….
Genuine question here. Let us assume RIFC ‘borrow’ this £1.5m. Can that really be converted into shares? I thought that without the disapplication of exemption rights any new shares issued had to be offered at the same rate to ALL existing shareholders. So, will the lenders have to push for Res 10 being passed at an EGM and just take it on trust for the time being that they will get shares?
http://www.eveningtimes.co.uk/rangers/rangers-could-get-15m-loan-152856n.23485992
Jack Irvine – don’t you just love him!
Re; Richard Wilson’s Herald piece, “Despite continuing rumours over an imminent cash-flow problem at Ibrox,…” It appears he just cannot bring himself to use the obvious word “crisis”. It reminds me of the sad time when the doomed Challenger space shuttle radioed ground control “Houston, we have a problem”. Wilson must know that to go for a Wonga advance of £1.5m in not merely a cash-flow hiccup but the last desperate throw of the dice – ‘problem’ indeed!
The fact that Wilson was the jouno who broke the good news to the nation tells me that this ‘windfall’ money story was a carefully placed leak to placate the fans. With wages due next week and tax & VAT now possibly late, the leak may also give some false comfort to the wolves arriving at the door.
I, too, received the “READY TO LISTEN” e-mail from that nice MR Wallace this morning. I will be anxious to complete his survey and so let the Chief Executive know what I consider to be in the best interests of the famous Glasgow Rangers.
No1 Bob says:
February 20, 2014 at 1:18 pm
0 0 Rate This
http://www.eveningtimes.co.uk/rangers/rangers-could-get-15m-loan-152856n.23485992
Jack Irvine – don’t you just love him!
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wow, inly contacting 1.2M of the 500M supporters – not a huge survey then
One comment from the Evening Times article
Good news on the face of it, given the many predictions that we’d have no cash. But what the medium- to long-term prospects are I’m not sure.
Ehh and the reason you need a loan is because……….?
Answers on a postcard!
Its well known Sevco are skint.
Why use a FREE survey provider available to ALL and SUNDRY when they have a database of season ticket holders and supporters clubs. Surely that would have provided plenty of names and addresses to kick off a genuine fan based survey if that is what they really want to engage in.
Cannot believe that Wallace put his name to this, and he’s allegedly a respected businessman in the city?????
(I completed mine and hopefully it will assist them where they think they should belong 😀 😀 )
Royal Mail must be kicking themselves at a missed opportunity to sell 500m first or second class stamps.
Not The Huddle Malcontent says:
February 20, 2014 at 1:22 pm
The survey is open to everyone: I am an overseas supporter who gets to an occasional game and who wants to see more money being spent on the playing squad.
Join in the fun!
https://www.surveymonkey.com/s/SK3SZLM
The thought just occurred to me re: the e-mail I received from MR Wallace this morning. I have never corresponded with or e-mailed RFC/TRFC or RIFC at any time. Why, therefore, would any of these organisations hold my e-mail address?
I am a proud poster on Follow Follow and from time to time I receive unsolicited e-mails from Grandmaster Suck with the postscript “You are receiving this e-mail as you are a member of FF” etc. Could it be that RIFC has paid the proprietor of FF a fee to obtain the e-mail addresses of its subscribers? Alternatively, FF and other Rangers message-board organisers might be voluntarily disclosing their membership lists in a misguided attempt to help the spivs save their club.
Is there any breach of the data protection acts here, I wonder?
Allyjambo – on reflection it was a poor post expressed badly. I’ll try and do better from now on.