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”
Spoken to three people involved in the Scottish game at club level last night. All three are confident that there will be no insolvency.
Understandably, people are reluctant to go on the record, but less understandably they are reluctant to state reasons for their optimism, although none of the sources can see how administration benefits anyone.
The consensus is that TRFC will limp on in the hope of promotion this year which will assist in addressing the structural deficit the club is running.
Increased ticket prices, prize money, TV money and sponsorship (watch out for a joint CFC/TRFC venture), none of which is accessible in the lower leagues, are expected to help steady the ship.
I did ask about onerous contracts and their effect on the business. One professed no knowledge of these, one expressed confidence that any onerous contracts would be bought out quickly with access to more cash. Another thinks they may not survive legal challenges if they threaten the club’s solvency.
One curious thing I confess to being confused about is that no-one seems to know what the onerous contracts are. After all this time, I find that surprising. One thing TRFC are not known for is the security of their information flow. Despite the copious amounts of paperwork published by CtH, that info has not been flushed out.
I just don’t understand that.
As I sit here on a sunbed in sunny lanzarote…I thought I would check in to see what is going on…and it has been a few weeks since I last popped in….well blow my sun factor 10 flip flops off …the situation at ibrox has become…what we predicted on here when Charlie took over…quelle surprise…it’s about money and how much they can get out and keep taking out. The sad thing is I believe there will be fans who will be happy to keep giving money as long as there is a club to follow.
The opening two paragraphs in the Daily Record story today beggars belief in how the long term outcome is just a given
——
THE Rangers board have sent out the begging bowl again and admitted they have only a fortnight to save their club.
Now it appears to be a straight fight between Dave King and Sports Direct tycoon Mike Ashley to restore the
cash-strapped Ibrox outfit to their former glories.
Auldheid says:
August 30, 2014 at 12:54 am
The stench from holding on to the old cadaver is polluting the game now.
==========================================
@Auldheid: I really do think you should show more Respect to the greatest Football Administrator in the World 😆
andygraham.66 says:
August 30, 2014 at 8:52 am
The opening two paragraphs in the Daily Record story today beggars belief in how the long term outcome is just a given…
============================================================
Quality journalism there from Gary Ralston: award winning Keef should be getting worried.
No attributable quotes in this lengthy article from either King or Ashley.
There is a wee half-hearted attempt at credibility wrt King’s story, as per: “City sources claim…” 😆
And the main source of the quoted material is from a proper Internet Bampot, Chris Graham !
DR continues to slide to the gutter. Oh dear. 🙄
http://www.dailyrecord.co.uk/sport/football/football-news/dave-king-mike-ashley-frame-4132352
Barcabhoy says:
August 30, 2014 at 12:49 am
It was reported on 13 June that 17000 had been sold in the renewal process before opening up season tickets to public sale. After that date we now know another 6000 were bought.
I guess it all revolves on how monies were paid (cash up front, installments etc )and how that all gets tecorded on the balance sheet by 30 June with regard to how much has gone in and out as cash banked and how much is down as expected future income.
The fact remains that regardless of how you cut it, future financial projections have them needing £3m to get to December and then lord knows how much more to get to the end of the season.
StevieBC says:
August 30, 2014 at 12:14 am
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.
===============================================
I was amazed that McCoist was flung to the lions – albeit flea-bitten – at the press conference.
The press should have been told before it started by a PR that because of the announcement to AIM that no comment could be made by the club or any personnel on financial matters as that could breach stock exchange rules.
No need for any drama – just a simple statement of fact and if there was any mumblings or grumblings then any PR with bottle would have stated that was the position and if any ‘naughty’ question was put that they would immediately end the press conference and the journos could explain their lack of copy to their own bosses.
And the PR should then have smiled and said that if the press conference was terminated then he/she would ensure that a press release dealing only with football matters would be released later that day.
The PR should then have asked if the position was clear and asked for agreement of those assembled on the areas to be avoided and again reiterated that if a single question was asked about finances or share sales then the conference would be terminated.
All this should have taken place with McCoist outwith the room and he should have been wheeled in after agreement was reached.
Then if any journo raised a forbidden issue McCoist wouldn’t say a word and the PR would simply have ended the meeting to an end and they and McCoist would have exited stage right with no comment.
IMO either the structure within Ibrox has collapsed or McCoist was deliberately hung out to dry by his bosses. If a tough line had been taken by Ibrox the fans would have lapped it right-up as a GIRUY against Rangers-Hating journos and RTV could have filmed it showing the journos and charged a fiver a time to view the clip and raised a fortune.
Instead we saw an obviously shell-shocked McCoist looking at the end of his tether and mental reserves. But as I say perhaps that was what his bosses wished to achieve and they did.
The tea lady at Ibrox – if she still has a job – would have known the journos didn’t give a toss about football issues that day but would be hammering away at the club’s dire financial situation. They had plenty of time to protect McCoist in a professional way but chose not to.
Instead they served him up as succulent sacrifical lamb to the journos who in the past 20 years have shown no interest in the true financial situation at Ibrox under various owners.
Barcabhoy says:
August 30, 2014 at 12:49 am
————————————
I see you mention the SportsDirect withheld dosh in your calculation.
But I wonder if anyone has any idea why the money hasn’t been released to Rangers as it seems a sizable amount – in the current perilous financial situation – to be locked-up.
There seems to be no clue in the details of the Rangers AIM Prospectus dealing with the joint-venture Rangers Retail Ltd. There is mention of a loan facility there but that, if extended, was to be secured on TSFM property and leases IIRC.
The Darkside is awash with rumour of 120 SportsDirect ad signs having arrived at Ibrox and presumably it will be easy enough to spot today if true 😆
Ally only wants to talk about football. Unless of course he wants to talk about:
Demanding to know names
Lists of gambling footballers
Attacks on TRFC team bus
Being kicked when down
Injustice from authorities
Having a go at Charles Green
Backing any new boss he may have
Taking a pay cut
Anyone care to add more?
Barcabhoy says: August 30, 2014 at 12:49 am
I suspect the bulk of season books were purchased after June 30th.
—————
Auldheid says: August 30, 2014 at 12:58 am
Have you factored in that they can only draw down on the ST money as games are played?
============================
BB – you have the numbers the wrong way round. The bulk of the ST sales were before 30th June. RIFC issued a statement to AIM on 13th June advising that they had sold 17,000. I’d estimate only 4-5,000 sold after 30th June
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=RFC&ArticleCode=zwoff8c4&ArticleHeadline=Season_Ticket_Sales
——————-
Auldheid – I’m not so sure that they will be sticking to one game at a time with the ST money.
Clubs have a history of spending all the ST money before the end of the season. Oldco was one with their use of Ticketus.
Hearts also did it before they went into administration. 7,000 STs had been sold prior to 19th June 2013. When BDO took over on that date there was just £7,000 left in the bank.
Clubs want to sell STs early to ensure that they have enough money to cover the close season expenses and any signing on fees, bonuses etc. I’d be very surprised if there were more than a handful of clubs that stick to trickle feeding of ST funds as games are played.
I know that PMGB has hinted at Deloittes requesting that the ST funds are not used, but they can’t enforce it. There is always the possibility that accounts for 2013/14 will never be produced if the share offer doesn’t meet its targets. (i.e. it is designed to fail)
BP I agree to a point…in that they have a hold of a business that will guarantee an income…with an increased income if they can reach the top tier…as a businessman I would keep that business alive even if it meant running at a loss for 2 years if I had the wealth to sustain it and in the knowledge I have a compliant governing body who will financially and operationally assist wherever they can….without questioning what i am doing or how I am doing it. The only hurdle in the plan is HMRC…and as long as I keep them onside all will be fine. Where I do take issue with the people you spoke it to is…do they know who the shareholders are? If they are unaware of the onerous contracts then their presumption that things will just continue is somewhat simplistic. As far as a joint business deal with CFC that would be corporate suicide for a PLC
RyanGosling says:
August 30, 2014 at 1:01 am
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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.
//////////////////////
Sorry Ryan, I just can’t let that one go. Speaking for no-one else but myself, to be absolutely clear, I am laughing, and I am, because:
I have renewed confidence in my common sense based on years of experience that dead ducks don’t fly, in fact they struggle to quack.
I am seeing the sleezy lamb fuelled hacks very publicly shown up for what they are.
I am seeing the cheating hordes (sp) at Hampden and beyond, right into the boardroom of my own club shown up less publicly for what they are.
I am seeing the first threads of possible salvation for 12 years of wasted personal funds that would have been very well used for other things (like eating properly!) thrown into the pit of scottish football which lo and behold, despite LNS’ assurances otherwise turns out to have been rigged.
I am not laughing at the average bear. I have said before and I will say it again because I know you are in agreement with it. They are realising they are damned if they do, but that is now the best offer they are going to get.
Sorry, but you’re damn right I’m laughing, but not at the bears.
Neil Patey at his best
http://www.dailymail.co.uk/sport/football/article-2738117/Rangers-brink-tycoon-Dave-King-refuses-underwrite-4m-share-issue.html#ixzz3Bp5BN761
Patey, who has followed the Rangers saga, believes the coming weeks will be vital.
I think this is probably the worst point since coming out of administration two years ago.
Hi All
First of all, to RyanGosling, i’m genuinely sorry about what you and other ordinary rangers fans have endured and are having to endure. I’m a Hearts fan and suffered through the admin and was genuinely worried we would disappear. How you guys are feeling I can’t comprehend, so to any and all rangers fans like ryan, You have my sympathy. I’ll say no more re what has happened previously etc etc, that doesn’t help anyone right now and I for one have always appreciated Ryan’s posting on this forum(I don’t always agree with him but his posting gives balance).
Re the share announcement, they are truly on fumes, I believe this is the end game, will the share issue work? I’m 50/50 on that, I still think the property will end up at RIFC, TRFC will be sold to “rangeruz men” for a nominal sum with a lease back of ibrox/mp and onerous contracts in place.
With regard to the onerous contracts, I think we can see from the cash burn that money is leaking out, contracts would be the perfect way to legally bleed them dry. I’d imagine the contracts cover almost everything – security, catering, retail(rangers retail anyone?), cleaning, supplies(office, toilet rolls etc), wifi, maintenance, possibly image rights.
Laxey(and some of the other shareholders) don’t care about running a football club, they really don’t, and the fans still haven’t realised that yet, so they are only interested in how much money they can bleed out.
Once ryan and the rest of the ordinary fans realise this, the answer for them is simple, do walking away and set up a new team somewhere else and start from scratch. It’s the only way they will ever be able to call the club their own and have a say in how it’s run.
Re ryans comments about the sfa/spl/spfl etc, non celtic/rangers fans have been getting screwed over by these institutions for many many decades in favour of the old firm so if you feel like that now, welcome to our world. Also, rangers were admitted into the third division even though they were a new club, how do you think all non rangers fans felt about the rule bending/ignoring that went on for that to happen? your team has benefited far more from the corruption at the top levels of football admin in this country than it has suffered and this may help you to understand why there has been very little sympathy for rangers fans on this forum.
Good luck Ryan
It appears that The Rangers need funds desperately to continue as an ongoing concern? Why then is there no mention of player sales in this transfer window to raise much needed cash and to reduce the significant wage bill. I am not sure they would be able to raise much more than £1m – £2m but this would save another £1m or so if they got rid of Miller, Boyd and McCulloch in wages. Almost another £1m could be saved by getting rid of McCoist although that might not be so easy as I’m sure his contract is watertight.
I really do not understand the mentality at Ibrox where they will not even try to cut costs but actively seem to want to drive the club into oblivion.
With regards to the PR side not protecting McCoist, did they not replace Jack Irvine last year who did a rather good job showing “Rangers people” in a positive light?
“Even if they raise the maximum it won’t see them through to the end of the season.
Administration is always there as a potential- the board have probably used the most severe language to date.
“This is probably one of the lowest points since they came out of administration two years ago”…….Mr Patey.
When did they come out of Administration? 😮
If there really was season ticket money sitting in a jar with a big “not to be opened – Deloitte” sticker on it, would this pot of gold not have been mentioned in the Open Offer statement as at least a sundry assurance?
The note to the stock market states specifically the money raised would be used to pay off existing loans, though if memory serves was repayment of the Letham loan not contingent on season ticket sales? That would suggest RIFC does not have sufficient cash flow to meet debts as they fall due. Quite how their nominated advisors are spinning this charade to AIM is anyone’s guess, though AIM isn’t known for good policing, or any policing come to think of it.
The fact Rangers Ltd was at last year end £18m in hock to RIFC, and entirely unsecured too, would suggest as a group this money mine has dug its way down into wrongful trading territory. Who would put money on another Rangers entity going under before full-year accounts need to be filed?
The RIFC board have, in recent months, been leaking info Deloitte have insisted season ticket money was ring-fenced, which is frankly nonsense. Advised, maybe, but given the wording of the Open Offer, it looks to have already left the building.
So what now for Deloitte? Given they signed off annual accounts with a ghost finance facility Wallace then admitted in the 120 day review wasn’t there when called upon, any new financial hijinks would surely force Deloitte to walk. They have milked the Rangers cash cow for upward of seven figures and counting, so not a gig they will walk from gladly, though you can also bet Deloitte’s bills are not on any ‘to do’ pile.
This latest fundraising would appear to be part of the controlled demolition to get the assets into a position so those in control can then sweat their value. Rangers fans will have to get used to the idea the big hoose and sundry assets will soon have a new landlord, taking rent via the Caymen Islands with the ‘footballing entity’ sold to those real Rangers men ( debt to parent co included, naturally) who we are told are waiting in the wings. They will be viewed by fans as saviours, and once the joy subsides the real gears men will have to break it to the fans a sale and leaseback is essential to save their club, thus ensuring the fans fund the lavish pensions of the small gang of spivs.
And all bought for a quid too. Marvellous!
easyJambo says:
August 30, 2014 at 10:00 am
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BB – you have the numbers the wrong way round. The bulk of the ST sales were before 30th June. RIFC issued a statement to AIM on 13th June advising that they had sold 17,000. I’d estimate only 4-5,000 sold after 30th June
_____________________________________________________________________________________
That was my understanding too in terms of the number of season tickets sold prior to 30th June. When the share issue announcement came out yesterday, I estimated season ticket proceeds of around 4.5 million (15,000 @ 300) so can’t understand how the available cash balance can only be 1.5 million unless that have already spent a significant part of that in order to meet May/June wages and outgoings.
Regarding the availability of the Rangers Retail cash of 2.7 million, I believe that the Rangers group accounts include 100% of Rangers Retail results in their Income Statement and Balance Sheet as they are the majority (51%) shareholder. They then make an adjustment at the bottom of the Income Statement and Equity section of the Balance Sheet to account for Sports Direct’s 49% share.
That really means that only 1.35 million of the Rangers Retail cash balance “belongs” to Rangers along with 51% of all the other assets and liabilities of Rangers Retail. The 2.7 million cash isn’t available to be distributed to the 2 Rangers Retail shareholders as part of it will be required to pay normal accounts payable to suppliers of replica kits and other merchandise. I don’t think Rangers Retail has made a profit distribution since it was formed in August 2012 so there will be excess cash that can be paid out as dividends to Rangers and Sports Direct. The class of shares held by Rangers is different from those held by Sports Direct and I think Sports Direct can call the shots regarding the timing and amount of any dividends payable.
In short, only a fraction of the 2.7 million can be paid out to Rangers and timing will be up to Sports Direct.
I always believed that Ernst and Young were one of the top accountancy firms in the world. I still do. The partners must cringe each time their “football expert” says things like ” since coming out of administration” when ,he is in fact referring to a business which has gone from administration to liquidation.
The SMSM are frequently chastised on this forum for such comments, and rightly so, even though they are not accredited experts in financial matters.
We should expect more accuracy from Neil Patey, and, perhaps more importantly, so should his employers.
melbournedee says: August 30, 2014 at 11:09 am
—————–
The Rangers Retail deal is even worse than you describe.
From the last published set of Rangers Retail Accounts (to 28/04/2013)
“Employee wages and salaries are recharged from The Rangers Football Club Ltd. Rangers Retail Ltd has no direct employees”
So TRFC are footing the bill for all the Rangers Retail staff costs, while reportedly only receiving a small share of the sales proceeds. I think I’d describe that as an onerous contract.
Thanks to Auldheid & EJ for providing the accurate numbers on season book sales.
Factoring that in Rangers cash position must be perilously close to zero .
All other conclusions as previously.
I guess the Sports Direct funds could have been released since June 30th, however there doesn’t appear to be public information available about the nature of that contract.
Maybe its one of the onerous ones referred to by Graham Wallace
easyJambo says:
August 30, 2014 at 11:33 am
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melbournedee says: August 30, 2014 at 11:09 am
The Rangers Retail deal is even worse than you describe.
From the last published set of Rangers Retail Accounts (to 28/04/2013)
“Employee wages and salaries are recharged from The Rangers Football Club Ltd. Rangers Retail Ltd has no direct employees”
————————————————————————-
EJ,
I took that to mean that Rangers employs the retail staff and then bills the cost back to Rangers Retail. Rangers are then reimbursed by Rangers Retail from the sales proceeds.
Note 12 in the Rangers Retail accounts shows the employment costs billed by Rangers to Rangers Direct and Note 14 shows that Rangers Direct still owed Rangers 138k at the end of April 2013.
fara1968 says:
August 30, 2014 at 9:55 am
‘Ally only wants to talk about football. Unless of course he wants to talk about:..’
——–
One of the worst Allyisms was the shabby, craven attempt to get AIM’s permission to keep secret from the punters the details of just how hugely disproportionate his salary was.
Big Pink says:
August 30, 2014 at 8:33 am
==============================
Happy to accept your sources BP. I certainly don’t have access to any as informed as that. What do they think of TRFC’s ‘plan’ to access CL cash the season after next. Do they know how that is going to work because I’m genuinely intrigued how they can plan to win the league, then three qualifiers. Where has it been agreed this is all going to happen?
Philmacgiollabhain tells us this morning that the August wages at Ibrox were paid as a result of TRFC sponsor Bet32 paying in advance, and an input of the balance by Mike Ashley. Phil says this gives Mr Ashley full control of the Superstore.
I don’t suppose this will have any retrospective effect on the monies being discussed by EasyJambo and melbournedee, but it may be the end of another source of income for TRFC.
PUTS a new slant on the old phrase “selling the jerseys”.
The previous company did come out of administration however there are really only a few ways of doing it. Pay all your debts, agree a CVA with your creditors (or at least a significant portion of them calculated by debt levels) and pay a portion of those debts or be placed into liquidation.
The disingenuous part from Mr Patey (again) is the bits he leaves out. There is a clear implication in simply saying that a business has exited administration. In the case of Rangers that implication is not true.
The bottom line with Mr Patey is that either
a, He doesn’t know what he is talking about
b, he is working to an agenda, trying to spin everything in as possible a manner as he can manage
c, both of the above.
melbournedee says: August 30, 2014 at 11:47 am
Thanks – I see where you can make that distinction, but it doesn’t get away from the fact that Sports Direct have no staff costs, yet share in the profits.
Note 14 also shows the cost of purchases by TRFC and SD with SD’s costs significantly higher. It may be that which determines the share of the sales proceeds, but without sight of the contract we may never know.
oddjob says: August 30, 2014 at 12:03 pm
TRFC did have a loan facility of £1.5M with Sports Direct which hadn’t been drawn down by the publication date of the RR accounts which was 31/01/14 as it isn’t mentioned in the post balance sheet events, nor was there any mention of it in the RIFC/TRFC accounts.
If PMGB is suggesting that it has since been drawn down at a cost of handing over control of RR, then the end is nigh for TRFC.
Correction to my post at 1203 today. Bet32 should be 32Red. Apologies!
Just listened to Graham Spiers on BBC Off The Ball on the subject of finances at Govan club. Was doing well up to the end when he said the one option was, wait for it ………… get Mr King in with his money. Really? He did mention that if this was the case it would give the SFA a headache concerning the fit and proper test. Really?
If Mr Ogilvie is still there then this will really be pushed through as one club and only one club has special treatment in our country.
upthehoops says:
August 30, 2014 at 11:59 am
Big Pink says:
August 30, 2014 at 8:33 am
==============================
Happy to accept your sources BP. I certainly don’t have access to any as informed as that. What do they think of TRFC’s ‘plan’ to access CL cash the season after next. Do they know how that is going to work because I’m genuinely intrigued how they can plan to win the league, then three qualifiers. Where has it been agreed this is all going to happen?
______________________________________________________
Wasn’t discussed. We only spoke about the realities – not the board’s PR wishlist.
To further elaborate, the feeling is that the share offer will be fully subscribed because a relatively small amount of money (£4m) is worth a whole lot less than losing 15 points (and probably promotion).
They will get their money in other words. No grand visions of CL entry – just buying enough time to get promotion to the Premiership and ready the club for sale.
My understanding (which may be flawed) is that it is extremely difficult to move money out of South Africa, even if you are a fine upstanding citizen.
How then a convicted fraudster, tax dodger, glib and shameless liar manages, i’d like to know?
Why do people like Spiers keep bringing up King as if he is a saviour just waiting in the wings.
He can’t buy shares just now as he doesn’t already own any so he would only be able to provide loans.
What sort of terms / security would he be looking for. What level of power would he require. Could he even work with the current board / owners.
I just don’t see how it would work. If anything King is waiting for the club to die and to pick up the assets for a song, much like Green did before him.
Green got the lot for £5.5m (and expected to collect some money, for example prize money the previous club earned, making the actual price much less). King presumably wants to do something similar, though that would take another compliant administrator / liquidator.
To me King taking over is currently just a convenient story to give the fans hope.
Our take on the latest financial calamity at Sevco.
http://www.onfieldsofgreen.com/wolves-at-the-door/
Oddjob and 16 Sodium
This might seem like semantics but the reason the business did not exit administration is that the business was never in administration nor was it liquidation. The company that owned the business was in administration and now liquidation. The business was sold.
Both Neil Patey and yourselves are being lax with terminology.
FTAO this is not an aspect of the OCNC “debate”.
I take this from the announcement to AIM.
“In addition Qualifying Shareholders subscribing for their full entitlement under the Open Offer may also request additional New Ordinary Shares through the Excess Application Facility.”
In essence, if some shareholders do not take up their option then others can take them instead. Meaning that the former’s holding is diluted and the latter’s position is strengthened.
I wonder if that means that institutional investors will get to the 75% holding (aggregated) they need to push special resolutions through. They were reasonably close to it at the AGM.
Big Pink says:
August 30, 2014 at 12:34 pm
It could work, but an awful lot has to go right.
First get the £3m or so after expenses -> then get the shareholders on board for some austerity -> then actually reduce the cost base enough to make the large offering attractive -> then persuade enough investors to subscribe to that issue.
Is it not just as likely that your chums are taking the wrong lesson from King Cnut?
And this from the previous announcement
“In line with the exemption to the European Union Prospectus Directive the possible equity issue would be for not more than an aggregate EUR5m”
As at today’s date 5,000,000 euro converts to £3,956,775.
Basically it allows the business to have the issue without having a pesky prospectus explaining everything and describing what was going to happen to the money. Though to be fair they did totally ignore the prospectus after the IPO.
Big Pink says:
August 30, 2014 at 12:34 pm
Wasn’t discussed. We only spoke about the realities – not the board’s PR wishlist.
To further elaborate, the feeling is that the share offer will be fully subscribed because a relatively small amount of money (£4m) is worth a whole lot less than losing 15 points (and probably promotion).
They will get their money in other words. No grand visions of CL entry – just buying enough time to get promotion to the Premiership and ready the club for sale.
==========================
Cheers BP. Wouldn’t it be a 25 point deduction though? I’m not re-igniting a debate that’s been done to death on here, but it seems beyond doubt to me that the Scottish Football authorities regard them as the same club, therefore surely 25 points. not 15.
upthehoops says:
August 30, 2014 at 1:04 pm
15pts, while covering their asses by blaming pesky UEFA rules
Scapa
As I understand it the money will be used to repay Leatham and Easdale in the first instance. So they won’t have anywhere near £3m once expenses are paid and those loans repaid.
To me there are two plans from this issue. To get enough money to repay those loans and see the bills paid for a short period, at the same time getting over the 75% required (aggregated between like thinking individuals) to do what they want at the AGM through special resolutions.
This comes from the earlier announcement.
“The Company does not currently have shareholder authority to issue shares on a non pre-emptive basis and authority from shareholders to do so, which would allow placements of shares with institutional investors, will be sought at the Company’s AGM later this year, in line with the Company’s stated strategy.”
It also gives them total control over the fate of the assets.
16 Sodium Atoms says:
August 30, 2014 at 1:06 pm
Appreciate that. however, having an issue and persuading the market to buy the shares are two very different things. they couldn’t even find someone to underwrite a measly £4M one, for example.
CM
I apologise for using the words as if they were interchangable. I don’t think it changes what I was saying but I do take your point.
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The previous company did come out of administration however there are really only a few ways of doing it. Pay all your debts, agree a CVA with your creditors (or at least a significant portion of them calculated by debt levels) and pay a portion of those debts or be placed into liquidation.
The disingenuous part from Mr Patey (again) is the bits he leaves out. There is a clear implication in simply saying that a business has exited administration. In the case of Rangers that implication is not true.
Why Ernst & Young haven’t gagged Patey is beyond me. He’s a walking talking reputational issue for them
scapaflow says:
August 30, 2014 at 1:10 pm
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I agree.
It could even be a plan designed to fail. Which would then allow them to go with “We tried but not enough people would buy in, including the support, so we have no option but to …”
If Dave King wants to buy TRFC he will have to pay a lot more than he would at a liquidation sale.
It will cost him at least £4m (the amount of cash shareholders will have to put in to keep the show on the road next month) PLUS substantially more to buy out those who are in control.
A reality buyer will probably pay enough to get control and then steady the ship. That buyer will have a medium term plan which doesn’t assume immediate pre-eminence in the game. That buyer’s biggest problem will be managing the expectations of he Rangers fans. Good luck with that.
King still subscribes to the fallacy that TRFC are DM’s RFC of old – endowed with the birth right that entitles them to automatically put a new league title notch on the bedpost at the end of every season. That requires money that he won’t be willing to commit. It will still cost around £50m on a bonfire to get parity with Celtic – not to mention the problems with an ongoing structural deficit. That approach, whoever takes it, will result in an endless cycle of financial crises – and no success or stability.
In short, unless the fans’ expectations can be managed effectively, Rangers are doomed to – at best – mediocrity.
Upthehoops
15 or 25. The quantum wasn’t discussed 🙂
The 15 pts was my take.
Campbellsmoney says
August 30 2014 at 1256pm
Point taken. Accuracy is important, as I said in my post, therefore I deserved, and accept, a slap on the wrist.
Maybe some more of the same would improve Mr Patey`s performance.
Thank you for your response.
If Dave King wants to buy TRFC he will have to pay a lot more than he would at a liquidation sale.
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Not if he was willing to buy TRFC from RIFC sans assets and was willing to pay a rent to use those assets.
He won’t be willing to do that, and a substantial number of the fans would not accept it, but it really is the only way I see out of this.
TRFC would potentially be debt free and starting from scratch. What he would have to do is put in a proper sustainable business model based on realistic income and expenditure levels.
Since we’re on semantics anyway, there isn’t really anything to stop King being the interest, or aquiring the interest, behind BPH or Margarita.
His issue is, as you said, that he can get the assets for a relative song (like he’s going to worry about ’emerging from administration2′), but can he get/does he need all the assets? I’m quite sure for example, that the bears would accept losing MP if it meant keeping Ibrox. Similarly, despite his birthright rhetoric, he can surely see that taking on a fiscal deficit which is just another name for meeting fan expectation is not going to be the best of starts. Particularly in the 1st division when what he desperately needs is the them and us conflict (and it will be) reignited.
£30m will buy a lot of time, minds and reporters. What it won’t buy him is any sort of repayment source, and I include CL in that.
So Mike Ashley now controls the store. It would also be interesting how big a proportion of the shirt sponsorship income was required to partially cover just one months basic wages.
Straws in the wind and all that
blackjacque says:
August 30, 2014 at 10:57 am
With regards to the PR side not protecting McCoist, did they not replace Jack Irvine last year who did a rather good job showing “Rangers people” in a positive light?
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Not so sure that Jack’s forte was showing Rangers’ people in a good light but more in demolishing the ‘enemies’ with his compliant SMSM hacks.
But whatever anyone thinks of Jack he is very good at what he does although someone with PR 101 would have known how to protect McCoist the other day.
However, now you mention Jack, was his replacement not the guy from the Beeb down south?
I wonder if Phil follows the old adage of never asking a question, unless you already know the answer? 😉
http://www.philmacgiollabhain.ie/question-to-the-scottish-football-association/#more-5026
Smugas
You can get the assets for a relative song
Now what song could that apply to
1]Money for Nothing=Dire Straits [dont know which applies more here]
2]Living on a Prayer=Bon Jovi
3]Taxman =The Beatles
4]Take the money and run =Steve Miller Band
5]Gold Digger =Kanye West
I am sure there are more that might apply to the billionaire from S.Africa
Castofthousands says:
August 30, 2014 at 2:44 am
ecobhoy says:
August 29, 2014 at 9:36 pm
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.
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Ah it would appear that all roads do indeed lead to Wee Craigie 🙂
If you check Companies House you will see that as well as Gold Manson Ltd being a director that Craig Whyte is also a director of Litigation Capital Ltd, a non-trading company, whose registered office and trading address is given as 48 SKYLINES VILLAGE, LIMEHARBOUR, LONDON, E14 9TS.
The company was incorporated on 12/03/2013 and a striking off notice was issued 0n 8 July 2014 for what looks like a late Annual Return which was subsequently filed on 7 August 2014 with the striking off process discontinued on 9 August 2014.
48 Skylines Village happens to be the address at which a large number of companies involving Craig Whyte have had their Registered Office dating back over many years. Through those companies there are long-standing connections between Craig Whyte and Aidan Earley and his brothers.
Various posts referring to the address can be found at: http://scotslawthoughts.wordpress.com/?s=skylines
Interesting to note that Rangers won 4-2 today with players they can’t afford. No wonder the SFA don’t want to know about Financial Fair Play, as there is only one club in Scotland they’d have to go after.
With regards to the 15/25 point penalty applicable in an insolvency event, has the dispute over the Telfer move from TRFC to Dundee United been resolved?
IIRC DU contended that they should pay a much reduced fee as TRFC had only been in existence for a couple of years.
Scottish Football needs a strong(er) PR department at E&Y. Surely Mr Patey has a clause in his contract about causing reputational damage to his employer?
Does Phil not say Red32 paid up ALL of it? My understanding was it was only about £600k for the year anyway, but that may have just been rumours.
If you are to believe the DUFC website, it would appear so
Any hack prepared to ask Mr McCoist if he will use his EBT to fund his proportion of the new share issue?
Scottish Football has a strong Arbroath.
scottc says:
August 30, 2014 at 6:50 pm
redlichtie says:
August 30, 2014 at 6:08 pm
With regards to the 15/25 point penalty applicable in an insolvency event, has the dispute over the Telfer move from TRFC to Dundee United been resolved?
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If you are to believe the DUFC website, it would appear so
Upon the expiry of his contract, at the age of eighteen, he moved to Tannadice, United having agreed a compensation fee with the then League One side to secure his signature on a three year contract.
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Thanks scottc
Would a fair assumption be that TRFC caved in to avoid this going to a tribunal/court? United seemed very set on making a stand.
Scottish Football needs a strong Arbroath.
PMG has suggested that the onerous contracts were put in place by CG (but mentioned Stockbridge wasn’t involved). I’m just wondering who would have to sign off on these contracts on behalf of TRFC*. Would he, as CEO, be able to do that on his own, or would it require the signature of other board members?
Remember when CG persuaded Walter to take up the role of Chairman, we all assumed that it was done purely to convince the fans to buy season tickets that year (Walter being another example of the Survival Myth)? There were a few comments at the time about Walter also not knowing what to look for when the spivs were doing their dirty work.
Wouldn’t it be ironic if the man who excelled at spending other people’s money for the benefit of Rangers was actually the signatory who authorised spending TRFC’s money for the benefit of other people?
(NB I don’t personally know if Walter, as Chairman, might have signed the onerous contracts)
redlichtie says:
August 30, 2014 at 6:57 pm
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scottc says:
August 30, 2014 at 6:50 pm
redlichtie says:
August 30, 2014 at 6:08 pm
With regards to the 15/25 point penalty applicable in an insolvency event, has the dispute over the Telfer move from TRFC to Dundee United been resolved?
—————————————————————————————————-
If you are to believe the DUFC website, it would appear so
Upon the expiry of his contract, at the age of eighteen, he moved to Tannadice, United having agreed a compensation fee with the then League One side to secure his signature on a three year contract.
————————————————————
Thanks scottc
Would a fair assumption be that TRFC caved in to avoid this going to a tribunal/court? United seemed very set on making a stand.
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I read somewhere that TRFC accepted the 60k.D.Utd were not for backing down and were prepared to argue their case.TRFC backed down.
this case would almost certainly have destroyed the same club myth.
Scottc says
August 30 2014 @6.50pm
Phil says 32Red paid up all they owed the club, early. Mike Ashley stepped in at a late our to make up the difference. Neither of the sums involved was specified.
Walter Smith was actually a part of the new Rangers truth, not the survival myth. At least originally.
http://www.bbc.co.uk/sport/0/football/18503656
“We wish the new Rangers Football Club every good fortune.”
Good evening
Without opening up the oldco/newco debate If administration were on the table the bears would scream for a ten point deduction rather than 25 to avoid the possibility of relegation.
I however believe that administaration is not an option.
For me it is liquidation of the football club. The spivs are owed circa £17 million and will not let that go. They will take the assets.
There is no dividend in buying into the share issue, the carcass has been stripped bare and the end game is closer than the delusional bears realise.
If this were any other business in any other walk of life it would have been liquidated by now. It is not a sustainable business and putting the begging bowl out every couple of months to pay debts is eventually going to end in tears.
McCoist said at the press conference ” do you want me to leave”
The reporter should have shouted back “You don’t do walking away” sit down and answer the question.
Well a good reporter would 😎
Hello all. Tonight I met a bunch of really fine men I know who were at the TRFC game today. Those fine men not being happy is putting it mildly.
We had a great chat though. Their argument is Scottish football really is s*it now. Mine was tell that to a fan of Inverness CT, Hamilton Accies or Dundee Utd.
There is some soul searching required by many people. Will it ever happen?
UTH
I think the supporters who are describing Scottish football thusly are probably referring to their own experience of the game here, rather than what everyone else might be thinking.
As you say, ask supporters of different clubs and they may feel differently.
upthehoops says:
August 30, 2014 at 9:44 pm
‘We had a great chat though. Their argument is Scottish football really is s*it now.’
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I take it they’ve now found their ‘rightful place’.
In truth, what they are now experiencing is the reality that supporters of all but two clubs in Scotland had to endure for many a long decade. It is not nice to be lorded over, and for those that did most of the ‘lording’, football must feel very s*it indeed. A few clubs down in England must be about to get a few more long distance supporters, methinks. Every pub has one, the guy who, when the conversation (argument) turns to football, says, ‘I’m not bothered about it, I support Liverpool (stick in any club that has had a very successful period in the past 50 years), Scottish football is s*it!’
Hoopy 7 says:
August 30, 2014 at 9:29 pm
Good evening
Without opening up the oldco/newco debate If administration were on the table the bears would scream for a ten point deduction rather than 25 to avoid the possibility of relegation.
I however believe that administration is not an option.
For me it is liquidation of the football club. The spivs are owed circa £17 million and will not let that go. They will take the assets.
There is no dividend in buying into the share issue, the carcass has been stripped bare and the end game is closer than the delusional bears realise.
If this were any other business in any other walk of life it would have been liquidated by now. It is not a sustainable business and putting the begging bowl out every couple of months to pay debts is eventually going to end in tears.
,,,,,,,,,,,
I certainly expect this open offer to fail
However
These are very clever Spivs
So
There will be a backup ploy already lined up. One which requires a failed open offer to make it legal
The real end game comes when every non Spiv plus all the fans are legally shafted
The carcass may be nearly bare asfar as the fans are concerned
But
There`s still lots of gullible shareholders left who haven`t been stripped to the bone
Consider this
To achieve 67% in the failed AGM resolution RIFC must have got the support of all the significant Spiv holders.
Suggesting 33% of the IPO went to many gullible groups and individuals who believed Big Hands spiel at the IPO
So
As long as 33% ownership is in the hands of gullible shareholders there is a legal opportunity to reduce their ownership to under 10%
This would increase Spiv ownership by at least another 30% to 40% taking it from 67% to over 90%
All they have to do is somehow get up to 75% and pass a resolution disallowing pre emptive rights for the gullible holders. This clears the way to issue perhaps 100m new shares which can be allocated to the Spivs for peanuts in return for some phoney but legal service
Thus setting the stage for a liquidation in which the Spivs get ownership of almost all the assets and the gullible get next to nothing
And by the way
The only issue that will be worrying GW and the Mgr is getting last season`s bonus safely tucked away in their Bank A/C
It’s most unlikely they will be affected by any future share dilution
They will almost certainly get freebie shares as compensation
After the traumatic day yesterday where the news long anticipated here was finally made public you would have thought that there might have been a rallying call from the fans for todays game. The attendance held steady at 31k.
Now contrast that with the first game after the announcement of administration in 2012. The game was sold out.
I think the normal attendance has now been reached. This drop in income will in turn hurt the business even more.
People are talking about administration if this share issue fails. Now the reason they are having this share issue is to pay wages and bills next month and if it fails then the pot is essentially empty. An administrator does not work for free. There needs to be money there to pay them. This business will simply fold. Even if it does raise the money then there will be a larger share issue before Christmas. What a selling point that is; ‘buy shares this month and watch them be devalued in three months time’. Yes they are going to be flocking to buy those shares! Not.
This crisis is actually worse than 2012. Then the authorities had two months to shoehorn the new club into the system. Now they will be attempting to do it in mid-season while giving them the points of the deceased club and allowing the new club to remain in the Championship.
The fans had better be ready for this because this is the plan.
I don’t know about anybody else but if that happens then, like I threatened my own club in 2012, I’ll simply cash in my chips and walk. I have shares in my club and they will be sold and my season ticket will be returned.
I’m utterly fed up with the way ONE CLUB, not a majority of clubs, ONE CLUB in its various guises is portrayed as the be all and end all of the sport in our country.
We have all experienced the last two years where there has been a real competition in the Premiership. The fight for second place and survival have been riveting. Financial sanity has been restored and I firmly believe that there will be a challenge eventually. Who knows, depending how Celtic’s new coach works out, it might be this year.
The Championship has also blossomed however what we continue to have is the spectre at the feast where one club continues to flout financial and moral rules.
Still the three stooges at Hampden continue to duck their responsibilities. No Financial Fair Play rules have been adopted. Rules on clubs being able to finish the season are not being enforced and once again the three of them will scuttle back down their rabbit hole hoping, that when they emerge, that everything will be okay.
The anger that I feel towards these charlatans is off the scale but we all know who they have thrown their lot in with.
Our game is impoverished enough but they are determined to bury every club in the land with their ineptitude and bias.
Perhaps, the real story at the heart of the Rangers experience, as opposed to the football theatre may be starting to come out.
http://www.independent.co.uk/news/business/news/hbos-accused-of-misleading-the-public-over-4bn-rescue-9701791.html
Some very senior politicians have real cause to be very worried, things may be coming back to bite them
redlichtie says:
August 30, 2014 at 6:52 pm
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Any hack prepared to ask Mr McCoist if he will use his EBT to fund his proportion of the new share issue?
Scottish Football has a strong Arbroath.
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Scottish Football certainly needs a strong Arbroath, but did McCoist receive payments via the EBT scheme?
The Glen says:
August 31, 2014 at 1:06 am
Could be wrong, but I don’t think he did. He could use some of his extraordinarily generous salary package, to invest in the new share issue though