Podcast Episode 3 – David Low

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I see there was another debate yesterday regarding the club …

Comment on Podcast Episode 3 – David Low by justshatered.

I see there was another debate yesterday regarding the club from Govan and its status.
Like most I’ve recently been amused by the media discussion regarding the finances of ‘The Rangers’.

It looks like this tightrope is becoming ever more difficult to balance on for our beleaguered media.
After every paper and media outlet in the land declared that RFC had died during the summer of 2012 a complete about turn occurred and it was a ‘holding company’ that had died but not the club. It was the club that entered administration and was deducted points in February 2012. Given their use of the courts, if the administrators had found this to be untrue then I’m sure they would have raised a legal action.
They didn’t. I wonder why that was?

When the CVA for the club failed, and it was for the club, all tangible assets were sold to a new company. The club itself could not be sold because it was the club that owned the debt.

We are now led to believe that the holding company was the entity that died yet no one seems to be able to put a name to this company. In reality the company that owned RFC was named The Rangers Group, formerly known as Wavetower, and that company is still alive and well.

When the assets were sold players had the opportunity to TUPE over to the new company. Now if the players must have a contract with the club, as per the rules and the club was still hale and hearty, why would the players need to TUPE over?
I’m sure I don’t know.
History seems to be the main thrust over the continuation politics. Now when Dave King said in early 2012 that he feared a failure of a CVA, Charles Green went on TV to saying that failure to achieve a CVA would mean an end to the history.
Was he correct?
I don’t know.

It seems that ‘The Rangers’ didn’t want the debt that went with the old club.
They did, regardless of how history is now written, want a place in the top league.
When that failed to materialise they expected to only fall one division.
They wanted and expected to keep all of the players of the old club even if it was just to sell them in the early months however several players decided not to TUPE over.

In conclusion, if a club does not own players, does not trade financially with other clubs through the buying and selling of players or register them with the authorities, if it does not trade with local businesses, if it does not pay TAX and NI, and if it does not have season ticket holders because that would be a financial transaction that it doesn’t do how can it possibly claim to have a history of 140 years?
How can it claim to have won leagues and trophies if it did not own the players that played on the park and pay their wages?
Surely it was the dreaded ‘holding company’ that won the honours?
All of the above add up to what history is.
That is what defines a club. It is the characters who played for the club, it is the tough managers that the club had, it is the memorable days and nights where fans come together in a common cause and drive their respective teams forward sometimes to victory and sometimes to fall agonisingly short.

It is often said that fans are the club and that is true because it is their money that keep any club alive.

However in the corporate and financial sense the fans are virtually an irrelevance.
To me, it seems one of the biggest ironies in this shambles, is the fact that people who often mentioned RFC going to ‘the next level’ and being a ‘global corporate brand’ during the nineties now shy away from financial and corporate speak.

justshatered Also Commented

Podcast Episode 3 – David Low
Campbellsmoney says:
May 4, 2014 at 5:56 pm

Sorry TUPE is not relevant?
I may not be up to speed on the law but does TUPE not protect worker’s rights and conditions in a buyout of assets such as this?

If TUPE is irrelevant then why was the new entity not forced to buy these assets also as, by football law, they clearly were not the Administrators to sell. At the point of liquidation the players contracts used to revert to the league or is this just another rule that has a “at the discretion of the board” caveat?

This would mean that the creditors were stiffed yet again.


Podcast Episode 3 – David Low
GoosyGoosy says:
May 3, 2014 at 8:40 pm

I’ve said for a few months that I think that RIFC will simply make an announcement one day saying that they are getting out of the football business but retaining the properties in lieu of money already loaned to the club from the IPO cash. The announcement will say that the money will run out by a date two or three weeks in the future and, if a buyer cannot be found to support the ailing business, it will cease trading.
There will be a call in the statement to Dave King, Jim McColl, and the Blue Knights to now come in and support the club. This will be a game of brinkmanship where the ‘Rangers’ men will then have to buy the club, that has nothing in the bank, and fund it going forward while either renting the property assets or building elsewhere or simply let the club/company die. How much will they be prepared to lose when it is their own money that is being lost is anyone’s guess.

‘The Rangers’ fans that I work with are always asking where the money has gone?
Look at it this way.
‘The Rangers’ can sell 38k in season tickets.
If the average price of a season ticket is £300 it will take 1066 people to pay Mr Wallace’s bonus. That is just his bonus mind you. It will take another 1066 to pay his annual wage.
Now the Chairman David Somers is probably on at least the same package. There is another 2122 fans season ticket money gone!
There are another few board members and even if they are on only half of the above salaries and bonuses then there goes another 1066 for each director. I think there are another three directors which makes the total of 3198 season tickets to pay them.
So to ONLY pay the board their wages and bonuses will take 7462 fans season ticket money.

This is before you even begin to discuss Ally McCoist’s salary. It will take 1333 to pay his current £400k wage and I’m sure somewhere in there is a bonus clause which will be more money out of the kitty.
So to pay the board and Ally’s reduced wage currently costs the club 8795 fans season ticket money.
Out of the 38 thousand season tickets there is now less than 30 thousand. The coaches will also be on bonuses. The players certainly are and their wages are also constantly increasing as they ‘make friends’ moving up the leagues.

‘The Rangers’ fans that I work with are always asking where the money has gone?
As Homer Simpson often says; “DOH !”


Podcast Episode 3 – David Low
occam says:
May 2, 2014 at 10:13 pm

Trust is the key.
Trust has been stolen from all fans and clubs, and that theft has left a feeling of deep mistrust.

It is no longer acceptable for the SFA to sit on its hands, hide behind nameless press releases, and leave clubs to investigate and miss-manage themselves.

If a rule, within the myriad of rules, is found to have a loophole then that loophole must be closed not debated infinitum and then left as it is even though everyone can see it is useless.
If a club suffers an insolvency event then any directors MUST resign from any positions within the SPFL or the SFA. They should also be barred from standing for such positions for a period of 4 years after the date of exiting administration or in the event of a, how shall we say it, liquidation then they are permanently barred from standing for office. This would prevent the ridiculous position we now have of a President of the SFA who has been on the boards of two clubs while they were spectacularly miss-managed. This has led to the crisis currently engulfing our sport.
We do not need these people in our sport. The people we do need are the ones who will protect all clubs and put in place rules and regulations to properly hold wrong doers to account while protecting the integrity of the sport itself.

Trust cannot be bought, and it cannot be taken or given. No it has to be earned. The people in charge have wantonly abused the trust of the paying public and that is not acceptable.
They have been found guilty in the court of public opinion and should go.
Put simply no one TRUSTS them.

Transparency of the rules would greatly assist in trust being restored. No more “at the discretion of the board” nonsense for that is what it is. It is a caveat to cover the most unpleasant eventualities and is easily open to corruption which yet again undermines trust.
A fund should be created to pay for external investigations into serious allegations. These investigations cannot be undertaken by the very people the complaints are against. That undermines trust. If a streamlining of the SFA organisation has to occur to pay for it then so be it.

Radical change is required now within our sport to bring it out of smoky committee rooms and into the light of day. Some of those individuals will not like it in the light because they have to much to hide. They should go for there is no place for them and no place for the people who attempt to protect them.


Recent Comments by justshatered

Time to Ditch the Geek Show
This may have been a question asked before so I apologize in advance.
When Rangers entered Administration the TAX man made a claim as far as I’m aware for all of the National Insurance and Income Tax that Whyte had collected but never forwarded.I still find tn difficult to comprehend how this isn’t illegal but there I am, a simple guy.

The Tax man also had the ongoing claim against the money paid to the EBT wheeze and submitted another claim for the Tax and National Insurance contribution that should have been paid on those payments.

Given that HMRC won their case, and the Liquidators will adjust the pennies in the pound accordingly, how can HMRC continue to after the recipients of the EBT payments?

While I have no sympathy for the individuals this seems, again to this simple guy, that HMRC will be getting paid twice; once through the Liquidators pennies in the pound and then billing the individuals.

As for Dave King’s counsel today……………………………….. well who would have thought that a guy who attempted to hide cars, planes, bank accounts, property, and wine from the South African authorities would turn round and claim to be penniless!!
Not me honest.

Another question regarding this: If Dave King sells up and walks away would this ruling apply to the rest of the concert party?
If it does not then this looks like a great sting by the rest of the concert party to have King as the fall guy. Remember there was the rumor that King borrowed the money from someone to buy the shares. It might have even been from someone who will gain if King goes.


The Vice Closes
The SFA have attempted a deal tonight.
To buy off Celtic and the rest of Scottish football with another weak, ineffectual, in-house, whitewash of an investigation into why there in-house, dyed in the wool, Real and pretendy Rangers men passed RFC as fit for a UEFA licence in 2011.
They have done this in an attempt to prevent a full out enquiry into their handling of the Administration, Liquidation, and unlikely resurrection of RFC to ‘The Rangers’.
Unfortunately for them far too much is now out in the public domain.
Anybody who wishes to look at the evidence knows what a craven, cowardly, corrupt, set of so called administrators we have a Hampden. They knew well before RFC went into Administration that it was coming.
The real problem they have is, like the Watergate affair, the original crime was not the thing that eventually brought down the house of cards.
It was the attempted cover up that did that.
The SFA may attempt to purge their in-house email servers but most are backed up elsewhere. The paper trail will most likely lead to some very uncomfortable places and people.
Paperwork, that the SFA are so pernickety about at various times but incredibly lax at others will be their undoing in the end.
Of course as much as the media will attempt to play this as an ‘Old Firm’ issue what the SFA have done tonight is actually ignore the wishes of the SPFL board. That will also be their undoing. For all they talk about the SFA being the clubs tonight they have told everyone that the SFA is a bunch of despots, up to their necks in scandal, desperately attempting to cover their backs.


On Grounds for Judicial Review
Far be it from me to question tactics with regards to the old club/new club debate but for a long time I’ve thought the best way forward is a reverse tactic.

Don’t ask the SPFL, and their legal stooge, as to why they are the same club: accept it.

Now stay with me on this one, yes accept it.

Ask them to confirm the SPL was made up of football clubs, prior to the amalgamation of the SFL and SPL, adhering to rules created by that league.

Ask them then to justify, from a sporting integrity angle, why the club that finished second in the league in season 2011/2012 ended up in the bottom tier of Scottish football?

Ask them why that same clubs prize money was withheld?

Doncaster has been quite forthright stating that the SFL’s record keeping was not as it should have been but let us see how the SPL’s stand up to scrutiny.

Under what rule/rules of the SPL was a vote required to keep a club in the league?

This is unprecedented that a club finishing second in the top league, anywhere in the world, is treated in such a manner.

Why was a vote even required?

Indeed, what was their justification for such a vote?

Why was that club forced to start at the very earliest round of the Scottish Cup as the SPL should have put them forward to be exempt from those earlier rounds?

Who failed in their responsibility to that club and what sanctions have been taken against that individual?

Was the SFA, as the country’s governing body, not concerned that one of their member clubs was being so harshly treated by its fellow members?

Was there any correspondence between the then SPL and SFA regarding this matter?

I could go on but I think you get the drift.

We as supporters cannot get them to admit that ‘The Rangers’ is a new club because they will just say that is their adjudication however what we can ask, and indeed are entitled to ask, is what were the rules that allowed such an unjust thing to happen to a member club when, according to them, they had committed no crime?

If what they did is not in their rule book, then they broke their own rules and someone should be held accountable for such a vindictive assault on a member club.


Time for Scots Government to Take Bull by the Horns
Haven’t posted for a long time but I was interested to read King’s statement regarding the funding of RFC and that the money would have been found from somewhere anyway.

That, in my mind, actually makes matters worse!

So, if you believe his statement, they deliberately choose not to play by the same rules as everyone else. According to King they had the money but decided to go down the route they did.

However, to go down this route they of course had to confirm to the various players in writing that they would definitely receive the money. This is what gave the player the assurance to sign the contract but RFC did not include this letter with the contract to go to the league and the SFA because in doing so would have made it contractual and therefore liable for tax.

That is the crux of the matter. It is the deliberate concealment of these letters which destroys the myth that this was simply an administrative error because if these letters had been included with the contract and other documentation then tax would have been payable.

On to David Murray and his statement. He had legal advice that everything was above board. Well advice is, by the very nature of the word advisory. It is not a guarantee. It is not definitive. It has as much authority as the next guys ‘advice’ which may be the complete opposite.

Then we have dear old Artur Numan. We won on the park fair and square was his cry. Well Artur you employed the agent who got you the deal and a side letter. As far as I know you signed the contract of your own free will. You did not sign it under duress so you, along with all of the other players, have to accept the responsibility for your actions. You were the guy who seemed to come from a footballing culture, at that time, where tax free wages were the norm.

Finally it has been reported recently that when offered a contract extension where Artur would be paid £20K a week paying tax instead of the £40k a week tax free he decided that this was not enough and retired. That won’t earn him a lot of fans anywhere considering most of them won’t earn in a year what he would have earned in a fortnight paying the same tax as everyone else.


.. and they wonder why nobody buys papers
The good news just keeps flowing down Govan way.
Niko Kranjcar seems like a good signing on the face of things. Well he is a name at least.
A bit like Joey Barton who will shout from the roof tops and our excuse for a media will duly print it.
However at the end of the day both of these guys are the wrong side of 30 and will certainly be unused to the physicality of the Scottish game. I would be surprised if either of these guys last ninety minutes regularly. They will have touches of class from time to time however they will not have the time on the ball they are used to.
I think it is also now safe to say that whatever has been saved by players leaving has now been swallowed up, and then some, by the recent signings.
There is no sell on value on any of these players.
As I see it this is the last gamble by a desperate board!
If these players hit the ground running, and they can go top and stay there until Christmas, then the three bears will be forced to anti up yet again in an attempt to get them through the season and access European money.
If this gamble fails and the team struggles in the top league then I think it is game over. This house of cards will collapse quicker than the previous entity.
The clock is ticking towards season start but if there are a series of injuries to the squad, injuries they did not suffer last year, then that will also impact on performance.
Meanwhile there will be no replica strips for the faithful to buy due to the fall out between King and Rangers Retail. This will hit them hard financially with no income at all as opposed to the pittance they were getting before.
In fact this will actually cost them more as they will have to buy unsold items at shop floor price but still, due to the exclusivity clause, be unable to sell it themselves. So they will have to buy the unsold units but still be unable to sell them themselves.
Once again we are watching high stakes, well for Scottish football, gambling.
This is a club continually posting losses very much like its predecessor.
It isn’t a business but a charity!
Everyone connected with it, that has money, is supposed to just shovel it down the money pit with no thanks because “it’s the Rangers way you know”!!


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