David Low
represents a highly significant component of the history of Celtic FC and consequently a highly significant component of how Scottish Football has panned out in the last 20 years.
As Fergus McCann’s Aide-de-Camp, Low was instrumental in helping him formulate and implement the plans which ultimately allowed control of the club to be wrested from the Kelly and White families. Low also helped McCann to rebuild and regenerate Celtic as a modern football club.
His views are unsurprisingly Celtic-centred, and this interview reveals his ambition for the club to ultimately leave Scottish Football behind. That may or may not be at odds with many of our readers, but the stark analysis of the realities facing football in this country may resonate.
He provides a window on the pragmatism of the likes of McCann, Celtic and many other clubs in respect of the demise of Rangers. He pours scorn on Dave King’s vision of a cash-rich Rangers future, and provides little comfort for those who seek succour for our failing national sport, believing that Scotland will find it impossible to emerge from the football backwater in an increasingly global industry.
Agree or not with Low’s prognosis, it is difficult to deny his compelling analysis of our place in the football world.
Thanks to all who responded to my query above. Next question: why would it benefit the parent if the subsidiary went into admin – problems with bills notwithstanding – since the parent already controls the subsidiary?
Rangers I went into admin because of external creditors. Rangers II have no external creditors (although if cashflow dries up then it’s lights out).
Why is there player costs of £1.5 mill, who did they buy???
Football
Player Sales 1.2
First Team Payroll Costs 10.4
Other Football Related Payroll Costs 5.6
Termination of Player Contracts 2.3
Purchase of Players 1.5
rabtdog says:
April 25, 2014 at 5:38 pm
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Thanks to all who responded to my query above. Next question: why would it benefit the parent if the subsidiary went into admin – problems with bills notwithstanding – since the parent already controls the subsidiary?
Rangers I went into admin because of external creditors. Rangers II have no external creditors (although if cashflow dries up then it’s lights out).
_________________________________________________
The parent would be the main creditors, so would emerge with the assets post admin. (TRFC owes RIFC millions since TRFC effectively spent RIFC money).
Meanwhile, admin would allow TRFC to tear up onerous contracts and agreements on the cheap. (e.g. they could fire Ian Black, Ally McCoist etc and only pay statutory redundancy, rather than the millions it would take to buy them out of their contracts.)
nowoldandgrumpy says:
April 25, 2014 at 5:43 pm
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Why is there player costs of £1.5 mill, who did they buy???
Football
Player Sales 1.2
First Team Payroll Costs 10.4
Other Football Related Payroll Costs 5.6
Termination of Player Contracts 2.3
Purchase of Players 1.5
____________
templeton
Oh Dear is this the website of Zebra Finance they mention as a method of payment:
http://www.zebrafinance.co.uk/
Registered in England & Wales, Company No 3065024, Registered Address, Century House, 29 Clarendon Rd, Leeds LS2 2PG.
And then there is this (note the company reg number)
http://www.companiesintheuk.co.uk/ltd/zebra-finance In Administration
Company Registration No.: 03065024
Resin_lab_dog says:
April 25, 2014 at 5:50 pm
The parent would be the main creditors, so would emerge with the assets post admin.
——————————————————
No they wouldn’t emerge with the assets. Who were the main creditors in (for example) the Hearts insolvency? The Lithuanians. Have they emerged with the assets? No – and they even had security.
So that is not how insolvencies work.
The assets will either be sold and the proceeds split amongst creditors or a CVA will be achieved and the assets will stay where they are.
nowoldandgrumpy says:
April 25, 2014 at 5:57 pm
===========================
I received my Celtic season ticket renewal today. Contained within the pack is an option to pay through Zebra finance. I pay by automatic direct debit, but a number of people do use the finance company. Seems to add about £40 onto the cost.
Campbellsmoney says:
April 25, 2014 at 5:58 pm
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Resin_lab_dog says:
April 25, 2014 at 5:50 pm
The parent would be the main creditors, so would emerge with the assets post admin.
——————————————————
No they wouldn’t emerge with the assets. Who were the main creditors in (for example) the Hearts insolvency? The Lithuanians. Have they emerged with the assets? No – and they even had security.
So that is not how insolvencies work.
The assets will either be sold and the proceeds split amongst creditors or a CVA will be achieved and the assets will stay where they are.
_____________________________________________________
OK. Semantics. What I meant was this:
RIFC in this case are not only the main creditors, but also the sole shareholders. As main creditors, they could control the CVA arrangement you mention. And as sole shareholder, they would therefore emerge owning the assets (through the club, post CVA) without many of the onerous liabilities by which it is currently encumbered.
Whether they continued footballing operations subsequently would be another matter.
SSB Gordon Daziel accused by Jim Delahunt of pleading with fans to but ST on radio. Priceless.
Resin_lab_dog says:
April 25, 2014 at 6:52 pm
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Campbellsmoney says:
April 25, 2014 at 5:58 pm
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Resin_lab_dog says:
April 25, 2014 at 5:50 pm
The parent would be the main creditors, so would emerge with the assets post admin.
——————————————————
No they wouldn’t emerge with the assets. Who were the main creditors in (for example) the Hearts insolvency? The Lithuanians. Have they emerged with the assets? No – and they even had security.
So that is not how insolvencies work.
The assets will either be sold and the proceeds split amongst creditors or a CVA will be achieved and the assets will stay where they are.
_____________________________________________________
OK. Semantics. What I meant was this:
RIFC in this case are not only the main creditors, but also the sole shareholders. As main creditors, they could control the CVA arrangement you mention. And as sole shareholder, they would therefore emerge owning the assets (through the club, post CVA) without many of the onerous liabilities by which it is currently encumbered.
Whether they continued footballing operations subsequently would be another matter.
_______________________________________________________
Possible worth adding that in HMFC case, Lithuanians couldn’t do this because the parent company was itself bust. The HMFC opco subsidiary could survive, but the parent holding co was knackered.
Whereas without its loss making TRFC footballing opco subsidiary, RIFC itself is solvent. It has no bills overdue to creditors. It is the opco that is knackered. Exact opposite to the HMFC scenario.
Who in their right mind would pay Ian Black £15K a week?’
and when presented with a perfect opportunity to get shot, didn’t take it.
Couldn’t resist SSB tonight.
Dee-L almost in tears as he implores fans to pony up with the cash and save the club.
One of the earlier callers was ‘Craig’ who was fairly articulate and told everybody that they could pay by cash instalments and then outlined exactly how to do so by using an email he had just received from the club. Happy days all round especially when he told Shug that he couldn’t live with himself if withholding SB Money meant the club would die.
Caller of the night says Shug.
A quick check with RM and there was a fairly recent poster called ‘Bydo’ aka ‘Craig’ with the same instructions on how to get a season ticket by instalments.
The word ‘plant’ comes to mind.
Powerful stuff this emotional blackmail!
I suppose a lot of this depends on interpretation. The parentco already owns the subsidiaryco so admin would only really be of benefit to shed high paid players & management – also if parentco wanted to sell whatever was left of subsidiaryco to a useful idiot.
Conversely if GW is really going to make a go of tier two next season then why dump the players & management who have won two successive promotions? puddling around the lower divisions isn’t part of the strategy – tier one by Aug 2015 is the aim. you’re less likely to do that with second tier journeymen managed by jimmy calderwood…
that does seem like a gamble to me if hearts and maybe even hibs plus falkirk are in the mix…
this could all be moot dep on season ticket sales … GW has many rocks to sail between
TheHumanTorpedo
25 Apr 2014, 05:22 PM
Rangers disciplinary record at end of season 2013/14:
Red Cards: 2
Yellow Cards: 41
Credit & Debit Cards: 0
Nicked, unashamedly
oh and i know it’s orthodoxy here that alistair is useless and the the rangers players are rubbish but they have done what’s needed thus far … if GW reckons he can afford not to dump then, why dump them? unless no one buys season tickets and all bets are off…
Correct me if I’m wrong but according to the recently published TRFC accounts the property assets belong to TRFC. I believe that the transfer of these assets to RIFC is quite a delicate matter if the administration route is being taken.
one Twitter account suggesting they had sold 1020 STs as of close of play yesterday
A lateral thought
If Ibrox and MP are only available to rent then I reckon the genuine Bears with money ought to be considering buying the RFC(2012)plc name from the liquidator before it is finaslly liquidated
They could then buy St Mirren and change its name
After several years of wise management, RFC(2012) could probably justify a fund raising for a new stadium
With a bit of luck the loonies would choose to follow the Ibrox version and eventually go down with the ship
Listening to SSB tonight for a change
Gordon Dalziel almost pleading with the callers to buy season tickets
I had to laugh. I was on RM and one of them is declaring that it is ‘suspicious’ that hte income and expenditure are exactly the same on the balance sheet. 😆
pau1mart1n says:
April 25, 2014 at 7:06 pm
Who in their right mind would pay Ian Black £15K a week?’
and when presented with a perfect opportunity to get shot, didn’t take it.
======================================================
pm, that deserves an;
“Absolutely !”
One would think that contract details aside, Black could/should have been zapped with a nil payoff for gross misconduct. And would he even have had the brass neck to try and fight such a decision legally ?
rabtdog says:
April 25, 2014 at 7:13 pm
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oh and i know it’s orthodoxy here that alistair is useless and the the rangers players are rubbish but they have done what’s needed thus far … if GW reckons he can afford not to dump then, why dump them? unless no one buys season tickets and all bets are off…
__________________________________________________________
I think perhaps ‘overpaid’ is the orthodoxy w.r.t. the players, rather than ‘rubbish’ per se, although the direction of travel has been negative on the whole.
And one orthodoxy is that really good managers are demonstrating an ability to do more, with less these days. Most TRFC fans – and now even the RIFC chairman it seems, will concede that Ally has done less, with more.
mungoboy says:
April 25, 2014 at 7:07 pm
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Couldn’t resist SSB tonight.
Dee-L almost in tears as he implores fans to pony up with the cash and save the club.
One of the earlier callers was ‘Craig’ who was fairly articulate and told everybody that they could pay by cash instalments and then outlined exactly how to do so by using an email he had just received from the club. Happy days all round especially when he told Shug that he couldn’t live with himself if withholding SB Money meant the club would die.
Caller of the night says Shug.
A quick check with RM and there was a fairly recent poster called ‘Bydo’ aka ‘Craig’ with the same instructions on how to get a season ticket by instalments.
The word ‘plant’ comes to mind.
Powerful stuff this emotional blackmail!
___________________________________________________________
Surely you are not suggesting an Imran Ahmed style PR assault on the blogosphere is being perpetrated again?
😆
rabtdog says:
April 25, 2014 at 7:13 pm
Hear what you say.
CEO Wallace’s problem is that he probably needs some of the players he has on the books, Bell Wallace, Law, Clarke etc to make up the core of the team.
What he doesn’t need is the money they are on, the money they will probably be on in the future given the alleged generous contracts, the luxury of two back up keepers, third stringers and a highly paid dud manager and his cohorts.
That is why some have said earlier that if admin was one tool in the box for reducing costs then it should have been considered. However as Campbell’s Money infers says such a plan may be a non-starter and even if taken forward it could take things outwith the CEO Wallace’s control.
I have long said it is like walking at tightrope. Today has just added a few burning juggling torches to the show.
StevieBC says:
April 25, 2014 at 7:33 pm
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pau1mart1n says:
April 25, 2014 at 7:06 pm
And would he even have had the brass neck to try and fight such a decision legally ?
__________________________________________________
I wouldn’t like to bet against that. Whereas Ian Black very probably would. 😆
Resin,
Not really suggesting that. Just a bit suspicious of anyone who phones SSB and can string two words together and has no signs of alcohol intake!
Plus not being regionalist or anything but the accent was too posh and not West of Scotland (nothing personal!)
Someone once said the first causality of war is the truth.
Think there might be a bit of internecine war on the go at the moment and if the board can get their propaganda out there by any means then they might just do so.
Just saying like etc?
Anyone with shares in Kleenex is on an earner given Dee-L’s tears tonight.
For anyone who didn’t know there’s a great game of football on BBC Alba now.
Thistle v St Mirren
Non Armageddon crowd also
Some thoughts on the 120 day review.
” The Club’s merchant acquirer, which processes credit and debit card transactions, has advised that it would require extensive security, including standard security to be granted over Ibrox Stadium”
They couldn’t grant that security until the MBB’s claim on this asset is resolved and I wouldn’t want to try and issue any more share capital or attempt to borrow money until that was sorted either…I suspect that sorting that wee legacy has to be their number one priority.
“To implement the initial phase of the three year plan set out below, the Board intends to seek shareholder approval in Autumn 2014 for the issue of additional equity pursuant to Section 551 of the Companies Act 2006.”
Which I guess means an EGM…that should be fun…and even if successful it’s hard to see why any investor would buy into a company with no realistic prospect of turning a profit (no tax advantages this time), unless they expect a sharp upturn in the share price…in which case a share price heading south helps but will mean issuing lots more shares in order to raise enough money…highly unattractive to existing shareholders who’d have to approve the new issue…bit of a problem that…
And more
Ҥ The Club acquired a number of players in Summer 2013 that, based on financial forecasts, it should have known that it could not afford.
§ The first team squad has the second highest wage bill in Scottish football for a team currently playing in the third tier. The total player wage cost is well in excess of the level it should be primarily due to generous and poorly structured contracts that were awarded to some players when they joined the Club.”
In other words the players are being payed way more than their worth…and we’ll get rid of you the minute your contracts up…and no mention of the managers modest renumeration….this should make for a happy atmosphere in the dressing room
Resin_lab_dog says:
April 25, 2014 at 7:41 pm
Surely you are not suggesting an Imran Ahmed style PR assault on the blogosphere is being perpetrated again?
==============================
It has never gone away 😆
Bill1903 says:
April 25, 2014 at 8:00 pm
For anyone who didn’t know there’s a great game of football on BBC Alba now.
Thistle v St Mirren
============================
I’m thoroughly enjoying it and the wine is delightful as well 😎
ecobhoy says:
April 25, 2014 at 8:16 pm
Snap!
Am enjoying a nice Chateau d’Water o’ Leith myself. Between the Wallace review and the CBI Hockey Cokey its been a bizarre day on Planet Scotland. Margo will be wetting herself
GoosyGoosy says:
April 25, 2014 at 7:22 pm
5 1 Rate This
A lateral thought …
———-
Far too sensible — and Chick Young would be heartbroken to lose his beloved St Mirren.
The biggest challenge to the plan is to convince the loyal fans that they are, at present, only following Sevco re-named. Buying the old name and starting somewhere else highly unlikely, though, after Graham the Highly Intelligent stated that ‘the club’ emerged from administration. Honestly, it must be a form of madness.
And the oft-repeated lie now has the supporters captive to the regime that gave them the untruth in the first place.
Re the 120 days worth of thinking ……
Based on the summary presented , I suspect the detailed document must be eye-watering in it’s laying out of dodgy contracts , directors bonuses and the like.
It’s hard to see where there is any responsibility at work here , seems blindingly obvious that Rangers are in serious financial trouble ( hey Sherlock!) and the last 120 days has been spent doing what?
Looks like the appeal to the market is please, please, please give us money so that we do not go out of business …… is the Rangers appeal ( by their own twisted thinking – stop Celtic) enough to get various loyal institutions to cough up the dough?
Thought not ….
, sale & leaseback of the ground , the next move on the chess board. Quickly followed by CEO resignation and the magic box passed to the next incumbent
Shambolic doesn’t really cover it. A suicide note from the current CEO.
Chris Graham (no relation) going on the attack
@ChrisGraham76 2h
So you know that time I called Stockbridge a liar, he threatened to sue, and it turned out I was right? Mr Wallace, you are a liar.
EKBhoy says:
April 25, 2014 at 8:52 pm
“and the last 120 days has been spent doing what?”
That for me is the interesting question. It takes time to put the plan together, but, there are always things that can be done almost immediately, that you can do to book some savings whilst fleshing out the plan. As far as I can see, none of that low hanging fruit has been plucked. (RIFC is not a huge company, 120 days to get to this point is a bit excessive)
So I’m left with two thoughts:
1. It’s all been a sham, designed to run out the clock for some reason
or
2. Wallace hasn’t been able to get the board’s backing to take action. Given that the Easdales provide the link between the previous board and this one, do they still hold all those proxies, and, if so in who’s interests are they acting?
Apologies if I’ve missed it (been otherwise engaged lately) but has Mr Regan expressed his surprise at ‘Rangers’ plight?
I noticed the section about signing up players that they should have known they couldn’t afford.
And presumably they are aware that they are employing a manager that they know they can’t afford?
But am I correct in thinking that the self-same people that are currently on the board are happily accepting bonuses that they should also know they cannot afford?
ecobhoy says:
April 25, 2014 at 2:28 pm
http://www.philmacgiollabhain.ie/the-iceman-cometh/#more-4583
I stand by the veracity of this story.
There is much more to it, but I have to protect sources.
Two people paid with their jobs for having their finger prints on the RIFC decision within their organization.
Another two were moved sideways.
scapaflow says:
April 25, 2014 at 9:02 pm
5 0 Rate This
EKBhoy says:
April 25, 2014 at 8:52 pm
“and the last 120 days has been spent doing what?”
That for me is the interesting question. It takes time to put the plan together, but, there are always things that can be done almost immediately, that you can do to book some savings whilst fleshing out the plan. As far as I can see, none of that low hanging fruit has been plucked. (RIFC is not a huge company, 120 days to get to this point is a bit excessive)
So I’m left with two thoughts:
1. It’s all been a sham, designed to run out the clock for some reason
or
2. Wallace hasn’t been able to get the board’s backing to take action. Given that the Easdales provide the link between the previous board and this one, do they still hold all those proxies, and, if so in who’s interests are they acting?
———
I guess it proves that Rangers are still dysfunctional and the end game is edging closer
andygraham.66 says:
April 25, 2014 at 8:57 pm
Chris Graham (no relation) going on the attack
@ChrisGraham76 2h
So you know that time I called Stockbridge a liar, he threatened to sue, and it turned out I was right? Mr Wallace, you are a liar.
==========================
Oh come on Chris! You’re going to have to narrow it down a bit. In fact, lets start with the bits that you do agree with. Ah yes. Winning the Premiership. Of course!
Oops…almost missed this…
“§ The financial forecast in place when the current Board was appointed contained several key assumptions that upon review were seriously flawed…. the presumed availability of a £2 million overdraft facility..”
Err…probably just me being dumb…but how does a business with no banking facility get an overdraft of any amount…
ooo me sir, me sir!
Is it “because they’re Rangers and they just do?”
Campbellsmoney says:
April 25, 2014 at 1:55 pm
16 0 Rate This
Resin_lab_dog says:
April 25, 2014 at 1:00 pm
2 words:
Insolvent trading.
(=fraud)!
——————————————————
I have said this many times – there is no legal concept of “insolvent trading” that is layman’s language (like “ringfencing”). Legal terms matter in these contexts because people can know exactly what the use of a term actually means if it is used correctly. The bits of the Insolvency Act 1986 that matter are s213 (fraudulent trading) and s214 (wrongful trading).
Wrongful trading is not fraud at law. So if by “insolvent trading” you mean “wrongful trading” then its not fraud. If by “insolvent trading” you mean “fraudulent trading”, then obviously (by definition) that is fraud. But there is a big difference.
========================================================
I found this earlier to this evening. My attention was drawn to s216 and s217. Are these not also relevant in this case?
In the UK, many companies in debt decide it’s more beneficial to start again by creating a new company, often referred to as a ‘phoenix’ company. In business terms this will mean liquidating a company as the only option and then resuming under a different name with the same customers, clients and suppliers. In some circumstances it may appear ideal for the directors, however if they trade under a name which is the same or substantially the same as the company in liquidation without approval from the Court they will be committing an offence under S216 of the Insolvency Act 1986 (and equivalent legislation in UK regions). Persons participating in the management of the ‘phoenix’ company may also be held personally liable for the debts of the company under s217 of the Insolvency Act unless the Court approval has been granted.
One good thing about this mess is it has revealed the bones of the machine.
Smugas says:
April 25, 2014 at 10:03 pm
ooo me sir, me sir!
Is it “because they’re Rangers and they just do?”
———————————————–
Full marks Smugas….go to the top of the class and have a gold star 😀
Compare and contrast.
Rangers 29/5/12 to 31/3/13 – termination of player contracts £2.1 million.
Dundee United annual accounts to June 2013 – overall wage costs £3.262 million
Having just caught up on today’s posts on here, I agreed with Resin Lab Dogs first post earlier on and thought it was very well out. From what I have read of the review so far, seems like Mr Wallace has taken a very long hard look at a fairly shambolic situation and has come out with what seems like a fairly honest and reasoned appraisal. Leaving aside the challenging for the top league within three years, which was fantasy at best and delusion at worst.
To be honest I’m still in shock at the no credit or debit card payment situation. If anything should ram home to the wider public the severity of the situation, then that is the one that did it for me.
Just read the shocking news about Tito Vilanova. I said this morning that Sandy Jardine was too young to go, this man was only 45, so tragic. Rest in peace sir.
Well the 128 review has been revealed.
As a document it was surprising for the fact that it did lay it on the line for the brethren.
This was predicted on this site and many others for over a year now but what did we know we’re just bampots!
No one can have security over the stadium while Craig Whyte’s shadow is over it. So nothing can be raised on it and yet Dave King still expects the only thing of value to be passed into his trust.
For the IPO RIFC raised £22.5M and the share price has tanked. The fans contributed under £5M of this so the rest was made up of institutional investors. So perhaps the question should be who is going to provide £10M a season for the next few seasons to get ‘The Rangers’ challenging for honours?
Will the fans put their hands in their pocket to fund a board they detest? I don’t think so.
Will the institutional investors, who have already been burned, commit more funds with no prospect of a return? I would think not.
Remember the key word here is ‘investment’ which, as has been pointed out before, intimates that at some point you will get a return. There is no return to be made in this unless you are one of the original investors.
So where does this leave RIFC?
With four properties and a loss making football club.
If this was an insurance job you would expect to smell smoke shortly!
Whatever money is received from season tickets will allow the club to start next season……. possibly.
As it currently stands ‘The Rangers’ will not complete next season. It is a mathematical certainty.
When this club implodes mid way through the campaign our sport will be plunged into a crisis far exceeding anything that has gone before. The SFA will attempt a continuation club in mid season. The rest of the league, if they have any testicular fortitude, will rebel. This will leave a club with no ground to play in, no training facilities, no league to play in, few players, and a baying mob.
The only way to avoid this is for someone to buy the millstone, that is ‘The Rangers’, and fund the money pit going forward. There is no one left. The ‘city’ will shun them, their own fans are in disarray and cannot provide the financial resources required to save this club.
This is now the nightmare scenario before us. An impotent, rudderless National Association bereft of any form of leadership or moral authority cowering in the corner hoping that the inevitable does not occur. A sizeable club at war with itself where the fans distrust the board that, lets be honest, do not deserve any and attempt to deprive them of funds believing, unbelievably so, that all properties will miraculously revert to them when Administration happens.
Once again, the people in charge of this company DO NOT care about football far less ‘The Rangers’. They will sell the ST Etienne bike, The Loving Cup, the panelling from the Blue Room, the seats in the stadium, the turf itself, reduce the stadium to rubble and sell a vacant lot if it gets them a return on their investment.
Right now that is what my money is on.
Can I just say how enjoyable today has been!
These people who profess to be so loyal to their club are so concerned that they’ve been hiding their head in the sand for months/years. NOTHING in todays’ review has been news to any of us (other than the loss/dumping of credit card facilities) and yet they are acting as if suddenly a light has been shone on the evil empire.
The latest PR spin is the use of the word ‘squandered’! This is another squirrel to deflect them from the fact that once you take out the £16m of ‘exceptional costs’ ie Spivs lining their chateuax, they are still looking at an operating loss of £1m+ per month with zero credit facilities.
This problem won’t disappear once honest men like Dave King and the Easedales take over (I know, humour them for now).
As Phil and many others have said for a very long time their whole set up is financially unsustainable and until they get Champions League football in 3 years ( I know, it’s beyond parody) then they are stuffed. And until one of them stands up and says ‘you know what, we have cheated and bullied our way for years to illegally gained titles which the authorities haven’t had the balls to rightfully strip from us’ then I for one will enjoy every second of their pain
Long Live Armageddon
scapaflow says:
April 25, 2014 at 9:02 pm
It is (2) without a doubt.
PhilMacGiollaBhain says:
April 25, 2014 at 11:17 pm
Phil, that’s my own feeling too,
justshatered says:
April 25, 2014 at 11:12 pm
Ibrox is the key asset.
If it can be acquired cheaply and unencumbered by any legal threat (Sevco 5088) then the Rangers brand can be made profitable.
Dave King can get Ibrox in a liquidation sale-that works for him.
He has no interest in RIFC/TRFC continuing to exist IMO.
scapaflow says:
April 25, 2014 at 11:30 pm
Check through my reports in January and February this year.
It is (2) for sure.
STV Interview
GW said there is cash “just below £3.5m ” versus £3.5m in the accounts to 31 Dec2013
……………………
Hmmmm…..
GW didnt say how much of this cash was committed to paying him off in the Summer or if the fan who loaned £1m would be repaid pronto
Fortunately the Bampots are a bit more inquisitive than STV
We know
We are dealing with Spivs who adore cash
So
GW will be getting at least £1m for a 6m job with a bonus of at least £0.5m
As a Spiv GW will have ensured that this payment is legally guaranteed and ringfenced from any Administration. It is probably in an escrow account but still showing as cash in the RIFC accounts
And
The gulllible RFC fan who invested £1m is very likely(as are all other external creditors) to be repaid next week
So
Allowing for a GW escrow account and repaying all outstanding Creditors except RIFC
RIFC and TRFC are skint as of now and can`t pay any more wages beyond April unless they dip into next seasons ST cash which is most unlikely to exceed £ 1m by next Friday
This leaves a nice clean sole Creditor situation which passes the assets to the Spivs when TRFC are put into admin
My money is on
……..an Administration announcement next Friday after the AIM market has closed
and before the 3 May final fixture against Dumfermline
The points penalty of 15 or 25 pts will be taken this season and TRFC put up for sale minus assets but with right of entry into the Championship league in 2014 2015
PhilMacGiollaBhain says:
April 25, 2014 at 11:31 pm
RIFC has loaned virtually all of the IPO money to the club as far as I can see.
I can’t believe that the people in charge will not have a security over these assets in the assumption that Craig Whyte’s claim fails and the club runs out of cash. Otherwise what are they in this for?
I believe this ‘security over assets’ card will be played when the money runs out and the properties will revert to RIFC leaving the club high and dry.
MSM mood music now sounding a full scale assault.
Let`s start nailing the pants
The Companies are Companies – Hedge Funds, Mysterons & Proxies – They are not Bears
`Onerous Contracts` – are self-serving spiv vehicles – NOT Players Stuff
Have these `onerous contracts` been terminated – Yes or No
If they haven`t – `Cash` still goes to the spivs – spivs will CONTINUE to cash-up
Q: Why should spivs give up / re-negotiate `onerous` contracts [free-spinning cash cow]
A: None
Whatever else – spivs remain embedded in long term coin – until it’s stopped
It goes without saying, I think, that the published review will not be a complete reflection of the problems uncovered, and those TRFC have to face in the foreseeable future. It must have been very difficult to produce a review for such a diverse audience, with supporters who are only interested in how much money is available to strengthen the squad to win the Championship, but need to have the fear of death (of their current club) to encourage them to part with their cash. Then there’s the current investors who want to know how likely it is that they’ll ever see a return on their money and the future investors who will flock to buy shares in the Autumn. There’s more interests such as the SFA/SPFL (though they will have been told to look away) and I’m sure others all with different angles to be satisfied. All with the need to ensure they don’t mislead current and potential future investors. Everywhere there is a Catch 22 type problem, where tackling one issue creates another. The biggest example probably being: how can you convince the bears of the need to pony up, or the club sinks, and at the same time leave room to paint a rosy picture in the proposed share prospectus? I doubt they’ve managed that. They’ve used a lot of words deriding (deservedly so) the previous incumbents, a few less trying to paint a rosy picture, a minimum coverage of the on-going problems but very little in the way of how they intend to actually tackle/get out of the mess they are in. There is no hint of real austerity, there’s even a mention of funds being made available to strengthen the playing squad. In fact the planning seems to consist of ever more moonbeams as the club conquers all before them on their relentless march to first or second spot in the Premiership and endless European prize money, a strategy that worked really well for another club called Rangers a few years back. Oh, but they’ve got a share issue planned (according to their PR outlet, the BBC), well, not so much planned as hoped for, as there’s a few problems to overcome before they can put that into the moonbeam machine!
At least disgruntled season ticket holders don’t have to worry about cancelling their renewals on time. Probably the only real positive for the supporters in the whole document!
On the hoped for share issue. At a time when optimism was high, and their dire straits were deniable, they raised £22m…ish. With their current track record, and well documented (despite the efforts of those who should document it) current dire straits, how on earth can anyone think it’s possible to raise £20-30m on a now eyes-open market?
I noticed this comment on another blog, but with the ST deadline extended to the 16th May, and the Scottish Cup Final on the 17th. Is the wrong date being assumed for the season’s end.
A few thoughts on Wallace’s masterpiece.
Thought one: they’re fecked!!
This is probably the PR friendly sales version of the report. Hence the “various big boys did it and ran away” statements and the desperate pleas for cash. I imagine the detail of the £2million pound operating cost cuts would not be broadcastable without an 18 certificate.
The money analysis here is probably pretty blue sky too. I imagine there will be a few one off costs to add to the liability side of the balance sheet. (You never know when you need a lawyer). How they found cash for 2 or 3 new board positions I have no idea.
Wallace chooses his words carefully about the playing budget. He concedes the need to “strengthen the playing squad”. That’s a nice phrase at SB renewal time but there’s no money committed. He could well mean Coisty has to ship out the top level duds and bring in some solid Championship journeymen. After two years of long balls and elbows, it’s hard to argue that wouldn’t improve the squad.
The big talking point is the £2 million loan that wasn’t there. This loan was needed to get the last combined accounts signed off and I might be wrong but I think it was guaranteed by one or more of the company directors at the time. Has Wallace just dropped someone in it for a fraudulent declaration on his company’s accounts?
Also given that there is a going concern warning on the TRFC accounts, making it public that you (as a company) lied on the last lot of accounts is not too sensible. It’ll be another arrow in the flesh for Regan and Ogilvie if they don’t demand a detailed plan and evidence of action taken to get to the end of the season, or at least a bond a la Livi.
Wallace mentioned “equity and other options” and about “developing commercial interests” when it comes to generating the needed millions. I suspect the equity option is the only one that will fly but it might not fly high enough. The number of shares they have permission to sell to existing holders will generate around £3m after costs. Assuming there is a slight bounce in the share price before it goes on offer, not all shareholders will take up the offer and those that do will want compensated for the real dilution in the coming general share offer (if it gets approved at an EGM). If pull that off, in order to raise £30million, they will need to sell upwards of 300 million shares (assuming they can make 10p a share look favourable) and probably more because proper investors will need serious sweeteners.
Other options are debt, diversifying, begging and finding a sugar daddy.
They can’t get commercially viable debt.
God alone knows how you diversify a football club. Owning a basketball team or building a casino have been mooted by other, richer (at the time) clubs – same stadium though – and the diversification was either uneconomic or impractical as a source of finance to fund the football team. maybe they can get Ally to teach pole dancing on the goal posts. Someone might pay to see it or it might encourage him to resign.
Begging and sugar daddy hunting are DOA and we’re no doubt flogged to death over the last 2 years.
Expanding commercial opportunities is a fascinating one. The obvious way is to expand the commercial SBs so they have more restaurants and former players schmoozing the punters etc. trouble is you have to build all that into the stadium and that involves fixing the stadium which according to this plan will have to wait until just after the first Champions league trophy is won in 2018 or so.
There is also the issue of making going to Ibrox to watch a game more attractive to more commercial clients, but that would involve fixing the songbook and making the place less hostile to anyone not draped in red, white, blue and orange.
Wallace’s repeated denials that administration has been considered might be true. If Laxey are still pulling the strings then a full on Liquidation may make more money for them. Alternatively, the board could have been very careful in only considering “an insolvency event” without specifying which type. It’s a lawyers answer, but it lets him pretend to be bullish about this car crash of a projection.
the presumed availability of a £2 million overdraft facility..”
those auditors were on the ball
“you’ve got an overdraft facility”
“ehhhh, presumably”
“that’s good enough for us”
pau1mart1n says:
April 26, 2014 at 12:08 am
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the presumed availability of a £2 million overdraft facility..”
those auditors were on the ball
“you’ve got an overdraft facility”
“ehhhh, presumably”
“that’s good enough for us”
++++++++++++++++++++++++++++
They would also know that the card companies would not process season ticket monies.
Any fans of teams in next years championship fancy writing to the SFA expressing concerns about the likelihood of Rangers failing to complete the season??? A few letters like that should make deniability harder for Regan and Ogilvie.
Corrupt official says:
April 26, 2014 at 12:04 am
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are you suggesting that trfc believe that the season ends after the cup final rather than after their last league game? would that somehow suggest that trfc if they survive the summer want to be penalised for next season rather than this? now why would that be?
Ok I’ll bite, to make the failure to get promotion be blamed on the point deduction rather than the results,manager investment in the team yadayadayada….that would mean a couple to three seasons in the div 1 allowing maximum revenue brought in, in season tickets without having to spend “big” and getting regular enemas in the top division
Would ticketus have their money back at that stage and could leave the resultant embers to be fanned by the likes of the King? sorry high as a kite on meds and wine……….
Wallace has always emphasised, virtually from his first day at the clumpany, that there will be no administration.
Like PTD, I reckon the money men running the show will be happy enough with a Sevco liquidation, especially if the end result is more wonga for them. They are only in it for the wonga after all!
Wallace is an enigma though. I always assumed that when he took the role, he was a spiv employed by spivs to do a specific job but reading Phil’s blogs earlier in the year, Phil was fairly convinced that he was a genuine CEO there to do a proper job.
Where do you stand on Wallace now Phil?
I recall that you were certain he was on the point of resigning several times in the last few months. All part of the play?
Certainly this farce would make for an excellent project for you to take to the stage!
ptd1978 says:
April 26, 2014 at 12:07 am
‘…If Laxey are still pulling the strings then a full on Liquidation may make more money for them.’
———–
Yes, straight to liquidation, no messing.
I mean, Laxey for one is not going to be arsed with Administration and other idiots like D&P making money going through the motions of looking for a succession of shyster buyers, who are going to create a new club ( though CG didn’t find that too much of a hassle with a very compliant SFA)?
It’s been a long time since I was on the Glasgow subway, but I remember that, when you saw the light in the tunnel, it was already too late for the wee train to stop.
The new club that should not have been in the SFA at all, will cease to be. If Laxey are pulling the strings.
Nail more nonsense
One operation – Two companies – Shared directors
IPO `spent` on spivery [spent `quickly` and `liberally`]
Why exactly is 19m now `Accounted` as an interest free `debt`?
In effect;
Spivs can enrich themselves time and again
Maybe it is just me but has this site not just undertaken a more detailed analysis of Sevco in 12 hours than the 120 days taken by CEO Wallace?
Today’s (Saturday) Record:
http://i.imgur.com/I34kIrv.jpg
Apparently First Data (the credit card merchant) told the club they wanted assurances of full security as early as January 23rd – and that it’s nothing to do with the fans boycotting renewals.
Maybe it is just me but has this site not just undertaken a more detailed analysis of Sevco in 12 hours than the 120 days taken by CEO Wallace?
Yes , and this site and its father site RTC before it have been superbly complete in their analysis and breakdown of every word, wholly appropriate considering the band of thieves and liars we are dealing with.
Any fans of teams in next years championship fancy writing to the SFA expressing concerns about the likelihood of Rangers failing to complete the season??? A few letters like that should make deniability harder for Regan and Ogilvie.
—————————————————————————————————————–
As a Hearts fan I will do just that, that’s of course if we make it through the last stages of our admin.
Does anyone have a template for such a letter, I am not as eloquent as the John Clark’s of this world.
South0fThe Border says:
April 26, 2014 at 12:55 am
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Today’s (Saturday) Record:
http://i.imgur.com/I34kIrv.jpg
Apparently First Data (the credit card merchant) told the club they wanted assurances of full security as early as January 23rd – and that it’s nothing to do with the fans boycotting renewals.
————————-
First Data are a huge Acquirer in credit card industry, and are no mugs they clearly identify a risk, and as per normal business rules would insist on such guarantees when there are concerns….and boy are their concerns….First Data clearly do not believe TRFC will do what they say they are going to do.
Indy14
April 26 12.38am
“are you suggesting that trfc believe that the season ends after the cup final rather than after their last league game?”
Well not quite. If they announce an admin on the ST closure day, the 16th, Then if the season has not officially ended, they will still be on this season’s side of it.
justshatered says:
April 25, 2014 at 11:50 pm
………………………….
Craig Whytes claim over assets is a real thorn in any planned administration event…the time it would take any court to decide such ownership would carry the admin process into next season…
What is not clear is if they enter admin this season and continue into next season if the points deduction is applied next season?…which if it does they will appeal it!