A consortium led by David Low has been in talks with Sir Tom Farmer seeking to purchase Hibernian Football Club. The story has been embargoed for a few weeks, but David agreed to speak to TSFM to give us an exclusive interview and provide us with information about his intentions for the Edinburgh club.
Highlights of the interview include the similarities and differences between the Hibs situation and the one he found at Celtic Pak in 1994; how Scottish Football’s “new level playing field” as Low calls it has created an opportunity for a club like Hibs to be the main challenger to Celtic for honours; the contrast of his consortium’s approach to that of the recent debacle at Ibrox; the role of the fans at every level of the club; the future of Allan Stubbs and Leanne Dempster; and the journey back to the Premiership.
Low is frank about his reputation as a well-known Celtic fan, but highlights his Hibbee credentials and his affection for the club, eschewing the “I was always a Hibbee” line taken by so many people seeking to ingratiate themselves with the locals at various clubs.
Certainly, the experience and finance rolling around Low’s consortium is something that any club could do with, but the fans are crucial to their involvement and interest.
He says he won’t go ahead with the purchase unless the fans are behind them.
“Fans have never been so powerful as they are today, especially with the advent of social media like TSFM”
“We have seen in recent years what a body of fans are capable of when they re together”
“We want to have that togetherness at Hibs, because the only way forward is to have trust between the boardroom and the fans, you only have to look at the levels of distrust between board and fans at Rangers to see that it is a recipe for disaster”
With respect EJ I think you are being overly charitable to Peter Ewart. Having said that he cannot give financial advice he then states :
“Time is very short: If they choose to subscribe the deadline for shareholders to have all their paperwork/monies sorted out is within a fortnight (12 September). I am sure we all will but there is little point in going back over the wasted money and spent opportunity of the last two years.”
“I am sure we all will..” = succulent lambs to the slaughter.
And where will the money come from the next time the clumpany has to go to the well?
RIFC/TRFC fans need to take off their Neil Patey Rose-tinted Glasses©.
John Clark says:
August 29, 2014 at 3:24 pm
JC,
I think your contact is referring to the statement “Legal proceedings are ongoing with regard to the Pension Fund’s uncompleted secured loan of £3m to Rangers Football Club. Our legal team are confident that the £3m will be recovered, plus interest & costs.” in their Interim Financial Statement made earlier today.
http://www.iii.co.uk/research/LSE%3AWRN/news/item/1197667/final-results?context=LSE%3AWRN
Oops, that’s the statement about the Pesion fund and oldco whereas “Law Financial Ltd is a recently incorporated company with a number of subsidiaries, one of which owns an ongoing legal claim against the assets of Rangers Football Club Limited.” is the statement about Ibrox/Murray Park.
” …..and re-establish Rangers as a stable, sustainable and successful business.” Three times this is repeated in the statement.So the board finally admit that, currently, Rangers are UN-stable, UN-sustainable and UN-successful.
About time too!
Possibly OT but it is football related.
http://en.ria.ru/sports/20140828/192430277/Conservative-MP-Backs-End-Of-Scotland-Football-Team-if-Scots.html
nowoldandgrumpy says:
August 29, 2014 at 4:04 pm
Well that would be one way of getting rid of Ogilvie and Regan.. Not sure thats a reason to vote No though !!!!
The_Pie_Man says:
August 29, 2014 at 4:19 pm
0 0 Rate This
nowoldandgrumpy says:
August 29, 2014 at 4:04 pm
Well that would be one way of getting rid of Ogilvie and Regan.. Not sure thats a reason to vote No though !!!!
============
I’m sure that the FA will create a “Conference Scotland” league, to allow us poor rustics on to their precious pyramid. Something to look forward to. They might even allow us a League of Scotland side, just to keep the Tartan Army quiet with a few friendlies against Conference North, or maybe even Cornwall or Yorkshire. What a prospect!
Aye, but Doomcaster will still be in charge of selling what’s left of the game.
His latest update wasn’t very inspiring.
////////////////////////
The_Pie_Man says:
August 29, 2014 at 4:19 pm
Rate This
nowoldandgrumpy says:
August 29, 2014 at 4:04 pm
Well that would be one way of getting rid of Ogilvie and Regan.. Not sure thats a reason to vote No though !!!!
actually it would be more complicated than just No Scotland Team.. if u abolish the SFA, WFA and NIFA and the FA, and just have one Great Britain FA then surely you would have to amalgamate all the different leagues as well
Thanks to Bill I now realise the club with the real problem is Celtic
http://billmcmurdo.wordpress.com/2014/08/29/big-fish-no-more/
James Doleman says:
August 29, 2014 at 5:03 pm
=============================
@James – if you read his Blog before the one you refer to I think you’ll see that Bill is no longer living on this planet 😆
ecobhoy says:
August 29, 2014 at 10:43 am
———————–
Thank you for drawing that to my attention. It evoked some lovely memories. Bernard hired me in the Sixties, long before he joined the Record, and he was a lovely guy. At the interview, he said to me: “Ah wooz thinkin’ that therty pownd ah week would be a fair wage for a yoong lad with your experience. What do you think?” It was the first intimation that I’d got the job and my previous job paid £27/10s.
“Well, Mr Vickers,” I swallowed, “I was hoping for a little bit more, maybe thirty-three?”
He paused and perused me for a moment, during which time I started to feel sick, then said: “Bernard, lad, Bernard.” Another pause. “Oo, ah think we could manage that. Pop down stairs t’wages office in an hour or so — we pay in advance ‘ere, y’see.” And so they did, the first and last place it ever happened to me. I thought I’d never see another poor day lol!
RIP, Bernard. You were as sound as a pownd! I’ve liked people from the north of England ever since.
Apologies for reminiscing off topic.
Peter Lawwell really got on my thrupennys there on the BBC news there.
All that “that’s three years now”, “we’ve been affected more than any other club” – just reaffirms to me that for these guys scottish football is about two teams only and the rest can fight over the crumbs.
Well, for the record, let me dissociate myself from Peter Lawwell’s remarks on Sportsound earlier tonight in which he more or less explicitly said that Celtic need Rangers.
Some will remember that I stoutly defended Lawwell’s refusal to let Celtic be drawn into comment on the whole RFC(IL) and Sevco business, or accept responsibility for speaking out,on the basis that the problem was none of Celtic’s doing and certainly would not have been solved by Celtic’s interference, but rather made worse.
I will not try to defend this latest pronouncement.
(And this has nothing at all to do with the fact that he has so far failed to do me the courtesy of explaining the lousy ticketing arrangements for the first Murrayfield ‘home’ game,which greatly distressed my American guests for whom I bought and paid for tickets, tickets that were not issued, and for which the money has not been refunded.
Geez,even Broadfoot at the SFA has done better in the communications sphere.
Just what is it with organisations that seem to attach so little importance to their paying clients as not even to acknowledge receipt of correspondence (let alone deal with it), thus forcing people like me to send letters by recorded delivery?
“Failure to secure such funding would be damaging to the business and may impair the value of the ordinary shares,” the club explained.
“The open offer is not underwritten.
“If the aggregate level of subscription is less than 15,000,000 new ordinary shares the open offer will not proceed and subscription monies will be returned to applicants.
“Should this occur, the company will be unable to pay its creditors as they fall due and the future of the company will be uncertain; the directors will immediately have to seek emergency financing which may or may not be available.”
=====================================
That sounds awfully like “If this last resort fails then the club will be trading insolvent. We will then try to get money from people on credit. In spite of the fact we currently can’t get any and have said we were not willing to put the main assets up as security”.
Can I just quote from the past “Wow, just wow”.
I see McMurdo Minor is now using the naughty Admin word, confirmation that things are really dire
John
I fear Mr Lawwell is now, merely saying in public, what he has long said and acted upon in private.
What’s most disturbing about Lawwell’s position that if the tribute act go bust where does that leave him? Waiting for four years for his pals to come back and they crash the bus on the home straight. His (and the rest of the prem chairmen’s)lack of a plan b is quite something.
You’d think the board will know what level of support they’ll get from the big shareholders.Confidence is king in this scenario.If they’d announced that say BPH/ Margerita or any of the major players had agreed to underwrite then this would have sent out a positive message.Other shareholders may have seen this as a good sign.Instead we have a statement giving no guarantees from anyone and looking for money,just to pay debts and keep the lights on for another few weeks,whilst pointing out the alternative if at least 75% of the shares aren’t taken up.The fans holdings only amount to some 14% of shares and lots of them will be for small amounts,bought for sentimental reasons.Bottom line,if one or two major shareholders don’t pony up,Rangers are dead,and if they were going to buy,then it would have given the issue a push,if announced today.
If the people who own the business don’t think it’s worth saving,why should you?.
Torquemada says:
August 29, 2014 at 6:23 pm
21
0
Rate This
ecobhoy says:
August 29, 2014 at 10:43 am
———————–
Thank you for drawing that to my attention. It evoked some lovely memories. Bernard hired me in the Sixties, long before he joined the Record, and he was a lovely guy. At the interview, he said to me: “Ah wooz thinkin’ that therty pownd ah week would be a fair wage for a yoong lad with your experience. What do you think?” It was the first intimation that I’d got the job and my previous job paid £27/10s.
================================================================
OT but anyhoos.
Not paid in advance, but well remember on Weekly paid into the bank account discovering that it took 3 days from our employers to our own bank account.
Fridays we used to commandeer the company “car” a fiat 500 and race down to the companies home branch in Queen street, write out cheque’s to “cash endorsed” and emerged triumphant with our wages in cash, the weekend saved.
Any financial advisor worth his salt would advise that you never ever borrow to pay back previous loans. The current situation at Ibrox breaks this basic rule and yet these guys are getting handsomely paid for this. Wow.
BTW. This practice has lead me to be perennially 3 days ahead of myself. Is this Sunday?
wottpi says:
August 29, 2014 at 2:37 pm
‘..As I have pointed out before folks are more than happy to jump on every rumour and piece of gossip int he hope that the club at Govan will fail.’
———
You are quite probably correct in that observation, wottpi.
But I’d wager that there are more folks whose greater concern is what our Football Authorities will/would do in the event that the club does fail.
Remember, the sense of outrage at the revelation of how much, and for how long, SDM cheated our sport was as nothing compared to the well-nigh universal anger at the apparent complicity and ineptitude of the Football Authorities!
It may be that Clubs, club owners, maybe even individual League bodies can do and perhaps have done ‘bad’things in the past.
But when the overall supervising authority, charged with the proper administration of the sport, disregards the rule book …….look what happens!
The talk about ‘Sporting integrity’ on this blog was not, is not, idle talk. It is what most of us believe in, and what most of us thought we more or less had in our game.
We have been disabused of that notion once already.
And we are in no mood to trust that the SFA as presently constituted will necessarily act in good faith.
redlichtie says:
August 29, 2014 at 2:26 pm
17 0 Rate This
easyJambo says:
August 29, 2014 at 11:45 am
The CoplandRoad.Org site gives a fair summation of the share offer
http://www.thecoplandroad.org/2014/08/groundhog-day-board-calls-for-another.html
Groundhog Day: The Board Calls for Another Share Issue
,,,,,,,,,,,,,,,,,
It struck me that whilst this is a reasonably fair piece Peter Ewart still doesn’t seem to grasp the financial crisis looming – a crisis which is evidenced by the urgent need to have the share issue produce further funds within a fortnight with further massive funding to be sought just some months hence. Any sensible person would be asking just where this will come from. Are they depending on Santa Claus?
,,,,,,,,,,,,,,,,,,,,
It’s sticking out like a sore thumb what the Spivs are up to
THIS SHARE ISSUE ISNT GOING TO HAPPEN
It has been set up to fail
The entire exercise is simply laying the groundwork for selling the assets to an offshore spiv outfit and locking TRFC into a long term lease.
When the dust has settled the current set of Spivs will exit and be replaced by another lot of bottom feeders These guys will be different insofar as they will be well out of the reach of the Loonies
It’s that simple
That’s why nobody is underwriting the share issue
That’s why the deadline is set for two weeks
That’s why the press release spouted nonsense about further share issues
That’s why the Football Manager won`t have been paid last year’s bonus. The next lot won`t care if he leaves and sues them
That’s why signing on fees wont have been paid .The next lot won`t care if the players go to the Union
That`s why a nice fee has been lined up for City Spivs to go through the motions
THIS SHARE ISSUE ISNT GOING TO HAPPEN
Goosy
Highly likely outcome.
One of the few that makes sense.
They work cheek by jowl with their shareholders, they’ve asked before for funding and only conjured up some loans.
Why on earth would existing shareholders volunteer for dilution?
I fear the loanees are going to find they own more worthless paper.
I think we may well be done unfortunately. Today’s announcement screams of desperation, it’s quite clear it is donations rather than investment that is required. I feel sorry for the people in charge now, because I think they are doing rather a good job, but at the same time I also understand the abstention from buying season tickets because we all know that the money is being funnelled straight out of Rangers. Liquidation may well be the result. You’d be a fool to argue it’s not at least possible, in the immediate future. Will they then try to relaunch yet another Rangers? Would the fans buy it again? I can’t really take in all the goings on at this moment. The only thing I know for sure is that my patience is running thin and my emotions can only take so much of this crap.
CF, never mind that, having share issues just to pay the bills is mental.
Share issues should be to develop the business, maybe to buy fresh assets to satisfy a major contract, maybe replace obsolete machinery or carry out improvements to building. Certainly not to raise money just in order to pay bills as they fall due.
As you say obtaining credit to do it, presumably on “Wonga” terms is also madness. If you are not earning enough to make ends meet just now then how does it get better when you have to service those loans as well.
In other considerations, after Ticketus, after administration, after the previous business was placed into liquidation, after failing to meet almost every promise from the IPO, after spending all of that just to keep going, after a further failed share issue, who is going to even consider providing loans … without any real security.
A simple question raised by John Clark’s post of 8.21 is what will the authorities do if TRFC go into 1) admin (do we all agree that we expect a 25 point penalty?) and 2) liquidation … what then? Are we going to have another round of Scottish Football needs another incarnation of Rangers? Any attempt to avoid another new entity starting again in the lowest tier will surely lead to even more supporter outrage (it certainly will for this supporter).
GoosyGoosy says:
August 29, 2014 at 8:22 pm
It’s sticking out like a sore thumb what the Spivs are up to
THIS SHARE ISSUE ISNT GOING TO HAPPEN
It has been set up to fail
======================
I agree. If any of the major shareholders were willing to pump more money into this basket case, then today’s announcement would have been unnecessary. As Torrejohnbhoy has pointed out at 7.52, what the fans do simply doesn’t matter. They don’t own enough shares to make a difference. The big players need to pony up, and they clearly don’t want to. So I agree that this is set up to fail. Maybe the Board just want to be able to blame the shareholders, who knows.
So all that today’s announcement really does is to buy time, but only a fortnight. What will happen in 14 days time? I don’t know, but prepare to be surprised. I think we really are into the end game now. The only realistic source of money after the share issue inevitably fails is the property portfolio, but only if Whyte first agrees to withdraw his claims. That will cost, but there’s no money left to pay him off. What a mess!
Any word from the SFA/SPFL yet? Thought not.
Phil Mac Giolla Bhain has made several recent references to Wallace and Nash as being serious and effective operators. Is this their way of calling the bluff of all the other self-interested parties involved in the situation, in a “put up or shut up” or “back me or sack me” way? If it fails, they can walk away having done their best and with reputations untarnished although not necessarily enhanced. If it succeeds, they will gain more leverage to carry on with their wading through treacle attempts at implementing austerity, albeit only for a few months until the begging bowl appears again. Wallace and Nash could save The Rangers, but do The Rangers really want to be saved on their terms?
wildwood says:
August 29, 2014 at 7:46 pm
What’s most disturbing about Lawwell’s position that if the tribute act go bust where does that leave him? Waiting for four years for his pals to come back and they crash the bus on the home straight. His (and the rest of the prem chairmen’s)lack of a plan b is quite something.
==================================================
Lawwell personally has nothing to do with whatever happens to Rangers in a financial sense. And if Rangers does go bust again then Celtic won’t follow them into the abyss.
I personally wouldn’t shed a single tear if Celtic never played Rangers ever again although I recognise that many of my fellow supporters can’t wait to humiliate them.
I also recognise – in what has become a steadily declining Scottish football market – that Lawwell would welcome guaranteed sell-out home gates against Rangers and indeed many of the old SFL clubs licked their chops in anticipation at securing a slice of the blue £.
I would think that Plan A for all sensible football clubs remains as always – to live within their means and Celtic have been pretty successful at that in recent years.
I’m also sure that each will individually have their own Plan B’s dependant on their own personal circumstances and – just like Celtic – they won’t be depending on Rangers to keep them solvent.
There’s a reasonable piece on Lawwell and Rangers in September 2012 at: http://www.scotzine.com/2012/09/lawwell-dismisses-complaints-from-rangers-over-ebts-as-whiff-of-paranoia/
neepheid says: August 29, 2014 at 8:50 pm
The only realistic source of money after the share issue inevitably fails is the property portfolio, but only if Whyte first agrees to withdraw his claims. That will cost, but there’s no money left to pay him off. What a mess!
============================
Going by what Worthington Group said in their accounts today, I think that Whyte has already received his pay off via Law Financial and it will be down to Worthington to pursue the claim against TRFC.
http://www.iii.co.uk/research/LSE%3AWRN/news/item/1197667/final-results?context=LSE%3AWRN
Two extracts from Worthington’s accounts:
1) Legal proceedings are ongoing with regard to the Pension Fund’s uncompleted secured loan of £3m to Rangers Football Club. Our legal team are confident that the £3m will be recovered, plus interest & costs.
2)9. Acquisition
On 16th April 2013 the Company acquired a 26% stake in Law Financial Limited (“LFL”) for £250,000 payable in unsecured convertible loan notes issued by the Company repayable in 2019. Law Financial Ltd is a recently incorporated company with a number of subsidiaries, one of which owns an ongoing legal claim against the assets of Rangers Football Club Limited. The Company was also granted an option to acquire the remaining share capital of LFL for £750,000 which was exercised on 28th October 2013.
The accounts also indicate that the book value of Law Financial’s litigation is estimated at £10M (value of Ibrox and Murray Park???)
——————
On a separate point Wothington’s shares had been suspended for some time, but they resumed trading today with the release of their accounts for the last 18 months.
Their share price opened at the suspension price of 3.25p and is currently sitting at 32p (up 882% on the day).
I think Wallace and Nash want to be able to walk away with clean hands from this debacle and it may well be that their friends in the City are supporting them in this.
The problem IMO is a deadlocked power struggle between Laxeys and the original Sevco 5088 investors which seems incapable of being resolved because they have totally different end-games in mind.
I therefore go with the argument that Wallace and Nash have been forced to bring matters to a head in the hope that one side will back down enough to try and get a consensual and lasting rescue plan established.
I truly doubt if that will happen but there’s a possibility it can be done although the property assets remains both the key and the roadblock.
However there have been lots of totally unexpected turns and twists in this saga and anything could happen and probably will. As to fan shareholders they simply don’t count and it doesn’t matter whether they all take-up the share option or none of them do.
Right from the start I have always felt that the Dark Horse capable of taking control is Ashley and I still do. Money isn’t a barrier to him but he might decide that the project would absorb too much time and energy for something that would return so little profit in shirt sales.
But he might be happy just slapping SportsDirect advertising all over SportsDirect Stadium Ibrox and on Murray Park’s roof 😆
Such little quirks and whimsies are sometimes enough for the very wealthy to get a kick out of.
easyJambo says:
August 29, 2014 at 9:12 pm
neepheid says:
August 29, 2014 at 8:50 pm
================================
I have taken my eye off the ball wrt Sevco 5088 but with the Worthington revival I wonder whether the striking-off move will now be contested?
Is it really as complicated as people are trying to make it.
Rangers spend more money than they earn. They had money in the bank from an IPO and that was funding the shortfall.
That money has run out and understandably they have no line of credit.
They need another share issue or new credit to just keep going.
Neither seems particularly likely.
So the support needs to accept either putting Ibrox Stadium and Murray Park up as security, or selling them outright if anyone is willing to buy.
There are few if any options left.
neepheid says:
August 29, 2014 at 8:50 pm
GoosyGoosy says:
August 29, 2014 at 8:22 pm
It’s sticking out like a sore thumb what the Spivs are up to
THIS SHARE ISSUE ISNT GOING TO HAPPEN
It has been set up to fail
======================
I agree. If any of the major shareholders were willing to pump more money into this basket case, then today’s announcement would have been unnecessary.
=======================================================
As I mentioned earlier Imran would need to be in a coma not to have filed today at the Court of Session. And what about other creditors – they have to secure their position.
So Rangers goes under but it’s either Imran’s ‘fault’ or that of some greedy supplier or even – if they are really lucky – the Rangers-Hating HMRC.
That’ll keep the support distracted and on-side – until the next plucking 🙄
16 Sodium Atoms says:
August 29, 2014 at 9:39 pm
So the support needs to accept either putting Ibrox Stadium and Murray Park up as security, or selling them outright if anyone is willing to buy.
=====================================================================
The support have absolutely no say in the matter when it comes to the property. The only option they have is whether to sign-up with the new owner of the new club – who may own or lease Ibrox – for the next stage of the journey.
I have never ever figured-out whether Dave King would return or not but his strength is that he’s possibly the only one who could mobilise a fairly wide-ranging section of Bears.
One thing for sure is that the SFA will welcome him with open arms and any question of a ‘fit and proper’ test will be quietly shelved and I have that old familiar feeling that the SMSM won’t be shining any light in dark corners.
Keeping the lights on at Ibrox has become a complicated business.
All current shareholders have the opportunity (for want of a better word) to pony up to keep things running and to maintain their holding in percentage terms.
For the average Rangers fan who bought into this at IPO keeping the lights on is probably the main lever in getting them to part with further cash.
For the big investors there are other issues at stake.
Had the Rangers board achieved a vote in favour of disapplying pre-emption rights at the AGM I’m sure we would be seeing an altogether different approach to the market.
The Rangers board don’t really have any option other than to allow existing shareholders to have their say in the only way that counts.
Pre-emption rights is a closed door but the latest move by the board is significant in its scale as it allows the possibility of a shift in a future vote.
It will be interesting to see how this pans out.
What a wonderfully enjoyable, eclectic evening.
Meddle, or Obscured by Clouds.
I know nothing, but I try to pay attention.
Phil mentioned “How low can you go?”, and directors considering £12m against Ibrox and the rest. Someone else mentioned Laxey’s “walking the share price down” and by implication squeezing the Spivs by the squirrels’.
Wallace and G. Tudor Nash are Laxey’s men. It would appear that this issue could be seen as an administrative requirement as a legal prerequisite to failure, or…
“Know when to hold em…”
Is it credible that Laxey’s are driving the bus, and will take the property assets (which are the only thing that matters), extinguish onerous contracts on the threat of liquidation (it’s much easier for you that way), buy all shares on offer when the Spivs’ eyes water in September and end up holding all the cards by Xmas?
These people are pro’s. They enjoy a boating lifestyle in the Channel Islands and such places. I’m sure Aquinas is not the only one who would like to see the photo albums.Quietly disappearing without any money is not likely to be their thing.
All of which may be confused billox.
I’d like to know why though.
To say the supporters have no say in matters is to suggest that a business can operate without customers.
Part of the reason Rangers are where they are just now is because a fairly large percentage of the supporters / customers decided not to buy season tickets. That left the business with a huge cash shortfall.
If I remember correctly DeLoittes even put the warning in the accounts, that if the level of season tickets did not reach at least the same as before then there were serious going concern issues.
I understand what you are saying when you post “The support have absolutely no say in the matter when it comes to the property.” However that pre-supposes a board which has already accepted that the business has failed and are willing to totally alienate their customers. Without them there is no business.
The ultimate irony, it is the Rangers support “walking away” which has expedited the position the club finds itself in just now. They have walked away, there is no money left.
easyJambo says:
August 29, 2014 at 9:12 pm
4
0
Rate This
neepheid says: August 29, 2014 at 8:50 pm
The only realistic source of money after the share issue inevitably fails is the property portfolio, but only if Whyte first agrees to withdraw his claims. That will cost, but there’s no money left to pay him off. What a mess!
============================
Going by what Worthington Group said in their accounts today, I think that Whyte has already received his pay off via Law Financial and it will be down to Worthington to pursue the claim against TRFC.
http://www.iii.co.uk/research/LSE%3AWRN/news/item/1197667/final-results?context=LSE%3AWRN
Two extracts from Worthington’s accounts:
1) Legal proceedings are ongoing with regard to the Pension Fund’s uncompleted secured loan of £3m to Rangers Football Club. Our legal team are confident that the £3m will be recovered, plus interest & costs.
2)9. Acquisition
On 16th April 2013 the Company acquired a 26% stake in Law Financial Limited (“LFL”) for £250,000 payable in unsecured convertible loan notes issued by the Company repayable in 2019. Law Financial Ltd is a recently incorporated company with a number of subsidiaries, one of which owns an ongoing legal claim against the assets of Rangers Football Club Limited. The Company was also granted an option to acquire the remaining share capital of LFL for £750,000 which was exercised on 28th October 2013.
The accounts also indicate that the book value of Law Financial’s litigation is estimated at £10M (value of Ibrox and Murray Park???)
——————
On a separate point Wothington’s shares had been suspended for some time, but they resumed trading today with the release of their accounts for the last 18 months.
Their share price opened at the suspension price of 3.25p and is currently sitting at 32p (up 882% on the day).
======================================================
This is the 3 way BDO, Worthington, (Nee Craig Whyte he waived his claim but allowed all his emails to be used) and Collyer Bristow over the 3 million from the Jerome pension fund allegedly naughtily diverted to CW by Mr G Withey (no longer a participant).
Part 1 attended by myself and James D.
Part 2 due in January 2015 with Charlottes best revelations to the fore.
Never say your Sevco entertainment is short lived. This one whatever the result has appeal written large upon it.
Chris (Fury) Graham and the Union Of Fans clearly think things can still be salvaged with an available £30m “investment”. Though he doesn’t actually explain who will be providing this “investment” (let’s just read that as loan because it can’t really be anything else) and on what terms.
==================================================
“We note with utter dismay the board statement regarding their plans for a further share issue. There are several disingenuous claims made by the board which we feel are bordering on another deliberate attempt to mislead shareholders. The board’s inaction and incompetence over the past nine months has led the club once again into an extremely precarious financial position which could easily have been avoided.
Graham Wallace and the other board members have known for at least nine months that significant levels of investment were required not only to see out the current season but also to invest properly in the club. They have also been, or should have been, well aware that this level of investment would not be raised from current shareholders and that only those with a genuine love for the club were willing to put such sums in. They have continually refused to take the necessary steps to allow those outside the existing shareholder base to invest the funds required. Indeed they have continued to pursue every option to keep those people out.
They now hang the threat of a second administration over the heads of both fans and shareholders when they remain fully aware that funding can be brought in from outside. For the avoidance of doubt, if this board would finally start to do their job properly, there can be absolutely no threat of administration. A £30m funding package has been available for at least the past 7 months and remains available.
The board has tried and failed to convince most shareholders of their plans for the club. They apparently remain willing to allow Mike Ashley to significantly raise his stake in the club despite not having established whether this will fall foul of either the SFA or UEFA. Ask a Newcastle fan about the effects of Mike Ashley controlling their football club. Will this board deliver Rangers into the hands of those who care about it or to Mike Ashley, who will run it for his own benefit? We do not want Mike Ashley calling the shots at Rangers and we would hope the SFA would take a dim view of any attempt by the board to deliver the club to him, given the clear dual ownership issue.
The board are attempting to dress this stop gap measure up as being for the benefit of the club. The stark reality is that not a single penny of this money, if raised, will be used to improve the club in terms of infrastructure or investment. It will be used to repay loans, to pay fees and to pay bills. Nothing else. Graham Wallace has not even clarified if he is receiving the 100% bonus that the board has discretion to give him. The claim that this money will be used to “re-build and re-establish Rangers” is false. It will do nothing to effect the required change. It will only serve to keep an incompetent board in place for a few more months.
Fans and shareholders should not be blackmailed into servicing this board. They are doing everything in their power to keep those who care about the club from having any control over its destiny. We ask them to finally do the right thing, stop putting their own positions and salaries ahead of the welfare of the club, gain shareholder approval for significant, much needed investment and allow those who care about Rangers to take it back to where it belongs.
macfurgly says:
August 29, 2014 at 10:18 pm
Meddle, or Obscured by Clouds.
__________________________________________
Dark Side of The Moon. Best album ever.
I can’t add anything else because I’m lost in the erudition displayed by all of the contributors on here.
16 Sodium Atoms says: August 29, 2014 at 10:39 pm
It will be used to repay loans, to pay fees and to pay bills. Nothing else.
===================
Dear Chris
That is the way that normal business operate. Borrow money, pay day to day bills, repay lenders when due.
Oh! How could I forget, Rangers is not a normal business. Borrow money, spend it, borrow some more, spend it, borrow some more, spend it … ad infinitum
Regards
EJ
RyanGosling says:
August 29, 2014 at 8:34 pm
I feel for you and your frustration at today’s news.
You have debated your position well over the months.
Everyone who posts on here will know RFC fans who only want to watch football, or indeed have a team to watch.
The lunatic fringe has been highlighted again and again and shines a light on the worst of human nature when circumstances and planned design conspire against them.
For months people have prophesied that this announcement made today would come to pass.
As has been pointed out elsewhere today this will not help the situation even in the medium term.
I stated some time ago that a statement would be made regarding the viability of a football club and two weeks would be given to find a buyer for the club otherwise they would threaten to shut up shop. The share issue is, in my opinion, simply a smoke screen to the above plan.
I think the final plan is now beginning to emerge from the fog.
Well worth a read.
http://t.co/5gQbJ3pCbM
This RIFC situation seems even worse than described.
Phil has it wages payed but bonuses not.
That’s if true an alarm bell for all the players, again.
Fraser Had any calls from agents etc?
ianagain says:
August 29, 2014 at 11:07 pm
What is the betting that they would be in bother for not paying wages but there is no such rule for not paying bonuses.
justshatered says:
August 29, 2014 at 11:19 pm
0
0
Rate This
ianagain says:
August 29, 2014 at 11:07 pm
What is the betting that they would be in bother for not paying wages but there is no such rule for not paying bonuses.
=============================================
Very likely. Within the rules etc.
Richard Wilson has given a platform to Chris Graham’s statement on the BBC website.
http://www.bbc.co.uk/sport/0/football/28992456?utm_source=twitterfeed&utm_medium=twitter
I thought he might do that after his contribution to Sportsound tonight, where I didn’t feel that he gave due consideration to the perilous situation at the club.
It’s almost completely at odds with the half decent article he wrote last week.
Exactly why, given we have had a stock market announcement that the creditors may not be paid. The Press such as they are have universally reported the same can it be that the Football governing bodies remain silent.
It all akin to pre Sevco.
How many CW style recorded meetings have we missed.
Ogilvie and co are just getting cute. What’s the plan this time?
Here is what I don’t get and its a point I have made before.
You have Hearts and Hibs with a player wage bill that bears some understandable relationship to their income.
The SFA promised last season that they would publish on their web site financial information supplied by the clubs including ratio of wages to turnover.*
If they have its not that visible but going back to my main point if I were in charge of either club I would be asking the SFA if it is fair that they have to play against a club fielding players they clearly cannot afford by normal means.
Unless they have been bought off for the good of the game.
————-
* Perhaps someone might check if it has appeared and if not ask Darryl why not.
From National Club Licensing 2013
8.12
Financial Information
Clubs are required to provide a
summary of financial information
drawn from the Audited Accounts
submitted at 8.11.
Clubs should be aware that this
information will be made freely
available via the Scottish FA
Website
Period Ended
Turnover
Wages (Total Payroll Costs)
Wages to Turnover Ratio
%
Profit or Loss for Period
Net Assets at Period End
Net Debt at Period End
In submitting this information, the club must give consideration to a relevant reporting perimeter i.e. the entity or combination of entities in respect of which financial information has to be provided. In particular the financial information must include all remuneration paid to any employees including players and any costs/proceeds of acquiring or selling a player.
The reporting perimeter shall also include any entities included in the legal group structure which generate revenues or perform services for
the club in respect of ticketing; sponsorship and advertising; broadcasting; merchandising and hospitality; club operations; financing; use of stadium and youth operations.
In practical terms group accounts are not required. However financial information in respect of all individual entities within the above
reporting perimeter must be provided.
Exceptional dispensation may be granted by the Licensing Committee in certain cases where a club is unable to provide historical financial information . Clubs will be required to submit written reasons for such an exceptional request. Not wishing to disclose the information will not be considered a valid application for an exceptional request however.
valentinesclown says:
August 29, 2014 at 11:06 pm
Rate This
Well worth a read.
http://t.co/5gQbJ3pCbM
_______________
Well spotted that man.
If you wanted to bury a Scottish institution/Switch a Roo/ rewrite the SPFL/SFA Rules, or implement them quietly, Sept. 18th. is the day to do it.
macfurgly says:
August 29, 2014 at 11:44 pm
1
0
Rate This
valentinesclown says:
August 29, 2014 at 11:06 pm
Rate This
Well worth a read.
http://t.co/5gQbJ3pCbM
_______________
Well spotted that man.
If you wanted to bury a Scottish institution/Switch a Roo/ rewrite the SPFL/SFA Rules, or implement them quietly, Sept. 18th. is the day to do it.
================================================
Or as some of think it wont happen at all?
Auldheid says:
August 29, 2014 at 11:43 pm
1
0
Rate This
Here is what I don’t get and its a point I have made before.
You have Hearts and Hibs with a player wage bill that bears some understandable relationship to their income.
The SFA promised last season that they would publish on their web site financial information supplied by the clubs including ratio of wages to turnover.*
If they have its not that visible but going back to my main point if I were in charge of either club I would be asking the SFA if it is fair that they have to play against a club fielding players they clearly cannot afford by normal means.
Unless they have been bought off for the good of the game.
————-
* Perhaps someone might check if it has appeared and if not ask Darryl why not.
From National Club Licensing 2013
========================================
Yes Auldheid
Well followe through.
Dumped it seems to suit certain parties.
I don’t believe it. Or is that a different Richard Wilson?
Yet again, the glib and shameless one gets mentioned with an unquestioning regurgitation of the £30M investment myth. Hadn’t it been established previously that whatever the SFA or SPFL decide about Mr King’s fit and proper status, the South African currency export regulation would make it impossible for him to move anything like that amount of cash away from the country, so the only way he could invest is if they relocate The Rangers from Govan to Durban.
/////////////////////////////////////////////////////////
easyJambo says:
August 29, 2014 at 11:27 pm
Rate This
Richard Wilson has given a platform to Chris Graham’s statement on the BBC website.
http://www.bbc.co.uk/sport/0/football/28992456?utm_source=twitterfeed&utm_medium=twitter
I thought he might do that after his contribution to Sportsound tonight, where I didn’t feel that he gave due consideration to the perilous situation at the club.
It’s almost completely at odds with the half decent article he wrote last week.
Unlike last time , Rangers will have no cash to continue playing at Ibrox and the SFA will pass some emergency rule change to let them play out of possibly Airdries ground with an under -21 team.
Ally will stay taking no salary ……
From a slightly different angle…
Like perhaps many fellow Bampots, I have been bemused as to how TRFC has frequently managed to avoid expected calamity – and has limped along this far.
But this time it feels distinctly portentous: based on body language…
Today I caught the brief McCoist press conference / strop and walking away, and was rather surprised.
IIRC, even in the dark days following February 14, 2012 McCoist never lost the rag with the press. He adopted the ‘Gordon Smith School of PR’ tactics of claiming that he ‘knew nothing about anything financial’ under the Whyte regime. McCoist focussed on football and the maintaining the loyalty of the RFC/TRFC fans.
[His emotional, “who are these people” speech was a premeditated, coldly-calculated piece of deflection / intimidation, allegedly.]
Today, IMO, the cheeky chappie had a bit of a public meltdown.
He seemed agitated, tense, very defensive.
Quite rightly, the forthcoming football match was a secondary topic. The hacks wanted to ask about the share issue. I’m guessing that the TRFC fans also wanted to hear McCoist’s opinion as the top priority.
Could be wrong of course – again – but watching McCoist flounce out of the press conference I got the distinct impression that he knows – finally – that the game is up for the Govan club. And that his own, remaining time there is rather limited.
Ultimately, a Rangers will play out of Hampden and have a built in subsidy from the SFA as they will get a good deal on the rental
StevieBC says:
August 30, 2014 at 12:14 am
I suspect any other manager would probably have got away with the football only line. Unfortunately for Mr McCoist everyone knows about his shareholding, and onerously generous contract. Even with the gossip columnists in attendance, the share issue was going to keep coming up.
I’m mainly surprised that the club PR folk didn’t better prepare him for it, I wonder why they didn’t.
Surely Hampden Park?
That way they will all be cosily ensconced under the same roof. There must be some spare offices available up on the sixth floor, or they could just empty the closets where the skeletons are hidden to free up space. Or I’m sure the conflicted one would be willing to share his bunker (sorry office) if needs arose. Bring it all in house and get rid of the pretence.
//////////////////////////////////////////////////
EKBhoy says:
August 30, 2014 at 12:07 am
Rate This
Unlike last time , Rangers will have no cash to continue playing at Ibrox and the SFA will pass some emergency rule change to let them play out of possibly Airdries ground with an under -21 team.
Ally will stay taking no salary ……
Many apologies EKBhoy. You beat me to it whilst I was typing my reply to your earlier post.
That makes two of us, so does that constitute a conspiracy theory?
HH
TheCat NR1
/////////////////////////////////////
EKBhoy says:
August 30, 2014 at 12:18 am
0
0
Rate This
Ultimately, a Rangers will play out of Hampden and have a built in subsidy from the SFA as they will get a good deal on the rental
RyanGosling says:
August 29, 2014 at 8:34 pm
66
1
Rate This
I think we may well be done unfortunately. Today’s announcement screams of desperation, it’s quite clear it is donations rather than investment that is required. I feel sorry for the people in charge now, because I think they are doing rather a good job, but at the same time I also understand the abstention from buying season tickets because we all know that the money is being funnelled straight out of Rangers. Liquidation may well be the result. You’d be a fool to argue it’s not at least possible, in the immediate future. Will they then try to relaunch yet another Rangers? Would the fans buy it again? I can’t really take in all the goings on at this moment. The only thing I know for sure is that my patience is running thin and my emotions can only take so much of this crap.
===================================
Ryan
As our one and only consistent gers poster a wee tale. My gers supporting mate was over from OZ till August , went to whatever game he could etc.
He bought shares in Murray times and again from Chuckles and I said to him you now it will happen again bust again. He said I don’t care Ill buy them again.
So guys with 500 odd to blow do exist (in small numbers).
The tragedy for Scottish football when this guy me and others lived up there we would alternately visit Ibrox Parkhead and Fir Park as a group of 6 maybe 8.
That’s whats lost. The travelling fan without prejudice
There is some misunderstanding of the position at Rangers. It has been reported that the cash balance is currently £4.258 million. That is incorrect. That figure was at June 30th. It is difficult to estimate what the figure is currently, however I suspect the bulk of season books were purchased after June 30th . There has also been quite a number of home matches played at the start of the season.
An educated guess on revenue in since June 30th would be 18,000 season books at £300 each. That is £5.4 million. Home paid attendance for the games so far is likely to be around 35,000 at £18 . That is £630,000
So just over £6 million from these 2 sources, plus whatever catering and merchandising has provided . Lets say another £300,000
From this of course we need to deduct payments for VAT and also the cash required to run the business in July and August. Say £5 million. That assumes Rangers are paying their bills as they fall due.
So the position right now is likely to be roughly £1.5 million higher than the June 30th unaudited figure. So roughly £5.76 million, less the Retail monies of £2.72 not currently available.
So £3 million with a hoped for £3.5 million ( net of costs) from the share issue. Making £6.5 million potentially.At current run rate that will last for 3 months, possibly a tad longer depending on pay at the gate income for the remaining matches of 2014
They will then require a minimum of £12 million to get to Financial year end.
I suspect there is more chance of getting loan capital , on onerous terms, than there is on getting 2 tranches of equity, with probably a 3rd in Sept 2015 . However there is zero chance of getting loans without the security that the board have committed not to give.
EKBhoy says:
August 30, 2014 at 12:18 am
1
0
Rate This
Ultimately, a Rangers will play out of Hampden and have a built in subsidy from the SFA as they will get a good deal on the rental
======================
Only the Commonwealth Games stopped this being a sensible plan last year.
Rangers/The Rangers/TRIFC do not live at Ibrox. They live in the hearts and minds of their support and I’m sure I told Ryan Gosling this a while ago.
If the support can give up their addiction to Ibrox the “dealers” are screwed.
Mind you for that to be allowed I would be insisting on rigorous financial controls and carefully vetted owners and admission of evidence of past wrongs and acceptance it happened.
Plus Ogilvie moving on.
Oh and an Ombudsman for supporters to get accountability.
The stench from holding on to the old cadaver is polluting the game now.
Barcabhoy says:
August 30, 2014 at 12:49 am
Have you factored in that they can only draw down on the ST money as games are played?
The money will still be there of course but some of it will be out of reach.
As an aside to the serious on goings at Rangers today, and the death rattle currently being sounded, I would just like to make one other observation. I’m sure the view I’m about to quote is one shared by many on here, and I know the reasons why, and I know we’ve had this conversation many times but I just feel I have to make my point again:
MacFurgly states that this has been a very enjoyable evening. No. It has not. Not for me. Not for anyone who claims to support all Scottish football and all Scottish football clubs. Because that would include Rangers, or TRFC, or whatever you prefer. I certainly believe that TSFM and all it’s moderators are impressively neutral, but a lot of posters take pleasure in the suffering of their fellow fans, and that to me is something that people have to reconsider. I haven’t done anything wrong, and neither have most of my fellow fans. We have simply been victims of one spiv after another going back decades, and even when we could see through them there was nothing we could do. I love football, I love Scottish football, I love Rangers and I have been completely screwed by everyone in control of every one of these institutions for years.
meant “immediate reach.”
ianagain says:
August 29, 2014 at 11:48 pm
================================================
Or as some of think it wont happen at all?
——————-
That was my uninformed assumption until I noticed the date and thought that coincidences of that magnitude are usually not coincidences at all.
http://www.dailyrecord.co.uk/sport/football/football-news/rangers-fans-your-say-15-4127613
Q15. Would Rangers survive a second liquidation?
Seriously…Keef! Now we are laughing at you not with you. Were there magic mushrooms on your :slamb: because that is downright trippy!
That’s a stoater.
And they said that the zombie jibes were in bad taste. I suppose he used the L word, as opposed to the usual tortuous language to avoid it, which may be a step into the world of financial and legal reality. Third Rangers does have nostalgic ring about it, and it would answer Q15 in a roundabout way.
////////////////////////////////////////
Resin_lab_dog says:
August 30, 2014 at 1:03 am
Rate This
http://www.dailyrecord.co.uk/sport/football/football-news/rangers-fans-your-say-15-4127613
Q15. Would Rangers survive a second liquidation?
Seriously…Keef! Now we are laughing at you not with you. Were there magic mushrooms on your :slamb: because that is downright trippy!
RyanGosling says:
August 29, 2014 at 8:34 pm
‘.. Today’s announcement screams of desperation,..’
————
No, RyanG, these guys don’t do ‘desperation’ except perhaps as a PR front. I think that the whole 120 day (or 127?) review was a big duck egg for presentational purposes, as was the waffle about the share issue.
What is now happening is that LP are in the driving seat-not at all interested in RIFC plc/TRFC as a football entity, but in the assets.
The continuing existence of a football operation is not their prime concern: they owe allegiance only to the gods who will give them a return on their investment, sooner and more profitably than running a football club can do.
I think that your man Kingsnorth in LP is going to win.The share issue will fail, as expected. The club will go bust, as planned ( Wallace and Somers may have been played as patsies), and the majority shareholder, LP, -as is their custom- wins hands down.
But what do I know?
RyanGosling says:
August 30, 2014 at 1:01 am
——————
Fair point regarding what I would call genuine Rangers supporters. I also love Scottish football and have supported not only my own team but other teams too in Europe for half a century. I have followed the national team to two World Cups. I have , over the years, been what Ianagain described above as a neutral travelling fan many times. In recent years, I have gone mainly to local matches, to see a game, or I try to get to a CFC match within travelling distance. I will be at Dens on Sunday, I could be at Forfar the week after.
For that reason I have nothing but contempt for the rule bending, breaking and ignoring by the SFA/SP(F)L to sustain a deceit perpetrated by those currently occupying Ibrox. If I elaborate I will be judged Bonkers, but I may say that one should not judge a population by the actions of their government and likewise I would not equate supporters with owners. There has however been a cabal operating against the interests of all other clubs for 2 years now and until integrity is established our game is tarnished.
You feel you have been screwed for years, That’s the point – we all have been.
In my opinion that will only happen after TRFC/RIFC or whatever they claim to be are obliterated.
ecobhoy says:
August 29, 2014 at 9:36 pm
“I have taken my eye off the ball wrt Sevco 5088 but with the Worthington revival I wonder whether the striking-off move will now be contested?”
—————————-
I can’t answer that question directly but might be able to add a bit of fuel to the 5088 fire.
A contributor flagged up a change of address in June of this year. Sevco 5088 now reside at Field Fisher Waterhouse London address. EJ has highlighted the acquisition of Law Financial by Worthington Group and the recent share price movement following a lifting of suspension. Law Financial did have a seat on the 5088 board. The ‘Company Check’ addition to a web search provides a nice format for information. ianagain has plausibly suggested that Whyte may no longer be in the driving seat having perhaps sold on his interest (to Worthington Group?). There was nearly 4 million shares in Worthington Group traded today and as EJ highlighted, the share price has gone through the roof. That could have made someone a few quid.
Speculation aside, you might be interested in a wee ‘coincidence’ I just stumbled upon. Law Financial had a Directorship called ‘Gold Manson Limited’. They have a Florida address. It just happens to be the same address as Willow Trading who were share nominees for Liberty Capital in the initial Sevco share issue back in May 2012. Very small world indeed or wheels within wheels more like.
http://companycheck.co.uk/director/917655387/GOLD-MANSON-LIMITED
I was never keen on Atom Heart Mother but have recently developed a taste for it.
Castofthousands says:
August 30, 2014 at 2:44 am
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I’m determined to be able to fully appreciate Ummagumma, the studio album. As thankless a task as being a ‘Ryan Gosling’ in this affair!
(apologies Ryan!)
Castofthousands says:
August 30, 2014 at 2:44 am
2 0 Rate This
———
Atom Heart Mother, now there’s a ‘rave from the grave’ as they used to say. Not quite rave, though. Haven’t heard that since my dazed youth. I was off listening to bits of it just there looking for what I thought was a section that included Thomas Tallis choral work, but I must be thinking of something else.
Funnily enough, I also came across a band called ‘Nuclear Winter’.
Speaking of which, just seen Phil has asked the SFA if they’ll confirm/deny being informed of a likely insolvency event. ‘We don’t do the fixtures,’ I’m sure I read that SFA response here yesterday to question by a poster. I suppose it was quite a revealing answer, considering that things may or may not have to be re-jigged, so to speak.
Taysider says:
August 29, 2014 at 8:45 pm
A simple question raised by John Clark’s post of 8.21 is what will the authorities do if TRFC go into 1) admin (do we all agree that we expect a 25 point penalty?) and 2) liquidation … what then? Are we going to have another round of Scottish Football needs another incarnation of Rangers? Any attempt to avoid another new entity starting again in the lowest tier will surely lead to even more supporter outrage (it certainly will for this supporter).
=========================================
…and this supporter as well Taysider. I will never forget the demonstration of what fan power really meant in 2012. It was quite simply a recognition by the majority of ordinary fans that a club which cheated financially for two and a half decades should not be rewarded for that cheating by being given a place at the top table.
What would happen if the latest entity is liquidated though? Do we even know for sure if rules have not been put in place which would mean fast tracking can’t be stopped this time, by anyone?