Good Afternoon.
Announcing outstanding financial successes for Rangers PLC the then Chairman of the club opened his Chairman’s report in the annual financial statements with the following words:
“Last summer I explained that the Club, after many years of significant investment in our playing squad
and more recently in our state of the art facility at Murray Park, had embarked on a three year business
plan to stabilise and improve the Club’s finances. The plan also recognised the need to react to the
challenging economic conditions facing football clubs around the world.
Following a trend over a number of years of increasing year on year losses, I am pleased to report that
in the first year of this plan we have made important progress by reversing this trend. Our trading loss
for last year of £11.2m reflects a £7.9m improvement versus the £19.1m loss for the previous year and
although it will take more time to completely reach our goals, this is a key milestone. We also intend to
make significant further progress by the end of the current financial year. This improvement is the
consequence of having a solid strategy and the commitment and energy to implement the changes it requires”
Later on in the same statement the chairman would add:
“Another key part of our plan is associated with the Rangers brand and our Retail Division goes from strength to strength. Our financial results this year have been significantly enhanced by an outstanding performance in merchandising Rangers products, in particular replica kit, which makes our Retail Division one of the most successful in Europe.”
In the same set of financial reports, the CEO would report:
“To further strengthen Rangers hospitality portfolio, a new dedicated sponsor’s lounge was unveiled this season. The Carling Lounge is a first for the Club and was developed in conjunction with our new sponsor, Carling. ”
and
“Our innovative events programme continues to grow and this year saw a record number of official events including the highly successful annual Hall of Fame Awards Ceremony, Player of the Year and 50 Championships Gala Dinner, all of which catered for up to 1000 guests.
At Rangers, we continually develop our portfolio of products and as a key area of income for the Club, we evaluate the market for new revenue opportunities on an ongoing basis in order to exceed our existing and potential customer expectations and needs.
Demand for season tickets reached an all time high last season with a record 42,508 season ticket holders in comparison with the previous season`s figure of 40,320. Over 36,000 of these season ticket holders renewed for this season – a record number.
For the new season, we are delighted to welcome brewing giant, Carling on board as our Official Club sponsor. Carling is one of the UK’s leading consumer brands with a proven track record in football sponsorship.
The Club also continues to work with a number of multinational blue chip brands such as National Car Rental, Sony Playstation 2, Bank of Scotland and Coca-Cola. This year, we will also experience the evolution of the Honda deal via Hyndland Honda and welcome the mobile communications giant T-Mobile to our ranks.”.
The year was 2003 and in the previous 24 months Rangers Football Club, owned and operated as a private fiefdom by Sir David Murray, had made operational losses of some £30 million.
Yes – 30 MILLION POUNDS.
Of course the chairman’s report for 2003 was written by John F Mclelland CBE and the CEO was one Martin Bain Esq.
As Mr Mclelland clearly stated, by 2003 the club already had a trend of increasing year on year losses covering a number of years and was losing annual sums which stretched into millions, if not tens of millions, of pounds.
However, the acquisition of Rangers Football Club was absolutely vital to David Murray’s personal business growth, and his complete control of the club as his own private business key was more important than any other business decision he had made before buying Rangers or since.
When he persuaded Gavin Masterton to finance 100% of the purchase price of the club, Murray had his finest business moment.
By getting control of Rangers, Murray was able to offer entertainment, hospitality, seeming privilege and bestow favour on others in a way that was hitherto undreamed of, and he bestowed that largesse on any number of “existing and potential clients” and contacts – be they the clients and contacts related to Rangers Football Club or the existing and potential clients of David Murray, his businesses, his banks, or anyone in any field that he chose to court for the purposes of potential business.
His business.
It wasn’t only journalists who benefited from the succulent lamb treatment.
Accountants,lawyers, surveyors, broadcasters, football officials, people in industry and construction, utilities, financiers and other areas of business were all invited inside the sacred House of Murray and given access to the great man of business “and owner of Rangers” while attending the “record number of official (hospitality) events”.
Twelve months on from when John McLelland made those statements in the 2003 accounts, David Murray was back in the chair at Ibrox and he presented the 2004 financials.
In the intervening 12 months Rangers had gained an additional £10 million from Champions League income and had received £8.6 million in transfer fees from the sale of Messrs Ferguson, Amoruso and McCann. Not only that, the Rangers board had managed to reduce the club’s wage bill by £5 million. Taking all three figures together comes to some £23.6 million in extra income or savings.
Yet, the accounts for 2004 showed that the club made an operational loss of almost £6 million and overall debt had risen by an additional £7 million to £97.4 million.
However, the 2004 accounts were also interesting for another reason.
Rangers PLC had introduced payments “to employees trusts” into their accounts for the first time in 2001 and in that year they had paid £1million into those trusts. Just three years later, the trust payments recorded in the accounts had risen to £7.3 million per annum — or to put it another way to 25% of the annual wage bill though no one in Scottish Football asked any questions about that!
By the following year, the chairman announced that the 2004 operational loss had in fact been £10.4million but that the good news was that the 2005 operational loss was only £7.8 million. However Rangers were able to post a profit before taxation if they included the money obtained from transfers (£8.4 million) and the inclusion of an extraordinary profit of £14,999,999 made on buying back the shares of a subsidiary company for £1 which they had previously sold for £15 million.
All of which added up to a whopping great profit of ……… £12.4 million!
I will leave you to do the maths on 2005.
Oh and of course these accounts included the detail that 3000 Rangers fans had joined David Murray in participating in the November ’94 share issue where the club managed to raise £51,430,995 in fresh capital most of which was provided by Mr Murray… sorry I mean MIH ….. sorry that should read Bank of Scotland …… or their shareholders……. or should that be the public purse?
The notable items in the 2006 accounts included the announcement of a ten year deal with JJB Sports to take over the merchandising operation of the club and increased revenue from an extended run in the Champion’s League. However, the profit before tax was declared at only£0.1 million in comparison to the £12.4 million of the year before but then again that £12.4 million had included player sales of £8.4 million and the £15 million sweety bonus from the repurchase of ones own former subsidiary shares for £1.
Jumping to 2008 Rangers saw a record year in terms of turnover which had risen to £64.5 million which enabled the company to record a profit on ordinary activities before taxation of £6.57 million although it should be pointed out that wages and bonuses were up at 77% of turnover and that a big factor in the Rangers income stream was corporate hospitality and the top line of income was shown as “gate receipts and hospitality”.
However, 2009 saw a calamitous set of figures. Whilst Alastair Johnston tried to put a brave chairman’s face on it, the year saw an operating loss of £17.325 million which was softened only by player disposals leading to a loss before taxation of a mere £14.085 million.
Fortunately Sir David did not have to report these figures as he chose to stand down as chairman in August and so Johnston stepped in and announced that he was deeply honoured to do so.
In 2010, the income stream jumped from £39.7 million to over £56 million with the result that the club showed a profit before taxation of £4.209 million.
However, by that time the corporate hospitality ticket that was Rangers Football Club was done for as a result of matters that had nothing to do with events on the football field in the main.
First, the emergence of the Fergus McCann run Celtic had brought a real business and sporting challenge. This was something that Murray had not previously faced in the football business.
Second,the Bank of Scotland had gone bust and Lloyds could not and would not allow Murray to continually borrow vast sums of money on the basis of revalued assets and outrageous hospitality.
Third, the UEFA fair play rules came into being and demanded that clubs at least act on a semblance of proper corporate governance and fiscal propriety.
Lastly,Her Majesty’s Revenue and Customs tightened up the law on the use of EBT’s which meant that Rangers could no longer afford to buy in the players that brought almost guaranteed success against domestic opposition.
On average, since 2002 Rangers PLC had lost between £7 million – £8 million per year – or roughly £650,000 per month if you like – yet for the better part of a decade David Murray had been able to persuade the Bank of Scotland that this was a business that was worthy of ever greater financial support or that he himself and his MIH business was of such value that the Banks should support him in supporting the Ibrox club whilst operating in this fashion.
Of course, had Murray’s Rangers paid tax on all player remunerations then the losses would have been far larger.
Meanwhile, all the other clubs in Scottish football who banked with the Bank of Scotland faced funding cuts and demands for repayment with the bank publicly proclaiming that it was overexposed to the football market in Scotland.
But no one asked any questions about why the bank should act one way with Murray’s club but another way with all others. No one in football, no one in the media and no one from the world of business.
Looking back,it is hard to imagine a business which has been run on such a consistent loss making basis being allowed to continue by either its owners or by its bankers. However, a successful and funded Rangers was so important to the Murray group that David Murray was clearly willing to lose millions year after year to keep the Gala dinners and corporate hospitality going.
Rangers were Murray’s big PR vehicle and the club was essentially used by him to open the doors which would allow him to make more money elsewhere on a personal basis and if it meant Rangers cutting every corner and accumulating massive losses, unsustainable losses, then so be it.
Today, the new regime at Ibrox run the current business in a way which clocks up the same colossal annual losses whilst the club competes outwith Scotland’s top division. Each day we hear that the wage bill is unsustainable, that the playing staff are overpaid, that the stadium needs massive investment and that the fans are opposed to the stadium itself being mortgaged and the club being in hawk to lenders.
Yet, in the Murray era the Stadium was revalued time and time again and its revaluation was used as the justification for ever greater borrowing on the Rangers accounts. The playing staff were massively overpaid and financially assisted by the EBT’s and most years the Chairman’s annual statement announced huge losses despite regular claims of record season ticket sales, record hospitality income, European income, shirt sponsorship and the outsourcing of all merchandising to JJB sports instead of Sports Direct.
The comparison between the old business and the current one is clear for all to see.
It should be noted, that since the days of Murray, no major banking institution has agreed to provide the Ibrox business with any banking facilities. Not under Whyte, not under Green, not under anyone.
Yet few ask why that should be.
The destruction of the old Rangers business led those in charge of Scottish football to announce that Armageddon was on the horizon if it had not actually arrived, yet today virtually all Scottish clubs are in a better financial and business state than back in the bad old days of the Bank of Scotland financed SPL. Some have succumbed to insolvency, and others have simply cut their cloth, changed their structure, sought, and in some cases attracted, new owners and moved on in terms of business.
In general, Scottish Football has cleaned house at club level.
Now, David Murray has “cleaned house” in that MIH has bitten the dust and walked down insolvency road.
What is interesting is that the Murray brand still has that capacity to get out a good PR message when it needs to. Despite the MIH pension fund being short of money for some inexplicable reason, last week it was announced that the family controlled Murray Estates had approached those in charge of MIH and had agreed to buy some key MIH assets for something in the region of £13.9 million.
The assets concerned are land banks which at some point will be zoned for planning and which will undoubtedly bring the Murray family considerable profit in the future, with some of those assets already looking as if they will produce a return sooner rather than later.
However, what is not commented upon in the mainstream press is the fact that Murray Estates had the ability to pay £13.9 Million for anything at all and that having that amount of money to spend the Murray camp has chosen not to buy any football club down Govan way.
Perhaps, it has been realised that a football club which loses millions of pounds each year is not such a shrewd investment and that the Murray family money would be better spent elsewhere?
Perhaps, it has been realised that the culture of wining, dining, partying and entertaining to the most lavish and extravagant extent will not result in the banks opening their vaults any more?
Perhaps, it has been realised that the Rangers brand has been so badly damaged over the years that it is no longer the key to the golden door in terms of business, finance and banking and that running a football club in 2015 involves a discipline and a set of skills that David Murray and his team do not have experience of?
What is clear, is that the Murray years at Ibrox were not good for the average Rangers fan in the long term and that when you have a football club – any football club – being run for the private benefit of one rich individual, or group of individuals, then the feelings and passions of the ordinary fan will as often as not be forgotten when that individual or his group choose to move on once they have decided that they no longer wish to play with their toy football club.
David Murray did not make money directly out of Rangers Football Club. He used it as a key to open other doors for him and to get him a seat at other tables and into a different type of “club” altogether. He did not run the club in a day to day fashion that was designed to bring stability and prolonged financial, or playing, success to the club. its investors and its fans. He did not preside over Ibrox during a period of sustained financial gain.
Mike Ashley will not subsidise 2015 version of Rangers to anything like the same extent that the Bank of Scotland did in the 90’s and naughties.
However, Ashley, like Murray, will use his control of the Rangers brand to open doors for him elsewhere in the sports retail market, and he will use the Rangers contract with Sports Direct to make a handsome profit. He will also control all the advertising revenue just as he does at Newcastle. In short, Mr Ashley is only interested in The Rangers with a view to using it as a stepping stone to achieve other things elsewhere.
However, don’t take my word for any of this, take the opinion of someone who knows.
Mr Dave King is quoted today as saying the following about the current board of Directors who are in charge of the current Ibrox holding company.
“History will judge this board as one of the worst the club has ever had. There is not one individual who puts the club above personal interest.”
That is an interesting observation from a man who became a non executive director of the old Rangers holding company in 2000 and who had a front row pew for every set of accounts and all the financial statements referred to above.
Whether or not Mr King is a glib and shameless liar is a matter of South African judicial opinion. Whether or not he can spot someone who puts their own self interest ahead of the interests of Rangers Football Club and the supporters of the club is a matter that should be discussed over some fine wine, some succulent lamb and whatever postprandial entertainment you care to imagine.
I wonder if he has ever read the accounts of Rangers PLC and compared them to the corresponding accounts of MIH for the same period?
mcfc
—
Grant Russell @STVGrant · 2h 2 hours ago
@Brattbakkk I don’t need to. I have possession of the deeds. They own it.
—
It’s all at this link: https://twitter.com/STVGrant/status/559982825592881152
mcfc
I only said ‘suggest’ because Grant was already being taken to task on who ‘they’ might be, leaving wriggle room but he has since spelled it out.
neepheid says:
January 27, 2015 at 9:20 am
Spot on neepheid. It’s telling too that no-one actively involved in Scottish club football at club level feels the need to express a view. All I see is yesterday’s men talking about yesterday’s club.
Joe the bookie
I wrote to MoN pointing out title in 2003 was lost to a team playing Ronald De Boer paid by an illegal ebt.
But wire in a way.
Subject to due diligence by SD – sounds like maye aye maybe no on the second £5 million. I can imagine the conversation ‘ ok lads whit can you give us for security for this?’
So do I get this right
T’Rangers are seeking to strengthen their squad but got shot of their best young talent as soon as the transfer window opened.
Ashley has increased his access to shares in RRL and therefore if promotion is secured and when the ‘Back where we belong’ special editions strips come out he pockets more of the revenue and also takes the clubs share of any existing dividend to be issued shortly for helping get out of onerous contracts with unprofitable stores.
SD will control the second tranche of £5m as it can’t be drawn down without their due diligence. Therefore no frittering away on hover pitches and the likes.
Future shirt sponsorship is all for the benefit of RRL and while Ashley controls things he will make sure he has the 49% plus the 26% and the security of the trademarks etc.
I suppose the best T’Rangers fans can say is at least the man appears to have a long term plan for the club!
Esteban says:
January 27, 2015 at 9:39 am
================================================
thanks for clarifying – but still suspicious. If TRFC were able to say this so clearly, they could have saved themselves a lot of hassle until now with doubts over ownership. You can own something on the deeds but still be hocked up to the eyeballs – so may not be the whole story. Even if ownership is entirely unincumbered as above, there is still the contingent liability that disputes any claim of ownership. Seems that TRFC/RIFC are desparate to separate Ibrox from the Ashley £10mil loan – especially since their only real income now is from ticket sales which would be adversely affected by bad news on Ibrox.
First part of loan
Pay himself back and security over MP,Albion carpark, Edmonson house and another 26% of RR
Second part at later date Only after SD dose Due Diligence mmm very interesting
What happens if he doesn’t loan the second 5m?
Admin? And he gets everything bar the money pit Ibrox
And for how much!
5m loan minus 3m+interest (for talking sake) say 3.25-3.5m
So gets the lot for 1.5-1.75 great deal if u can get it
Wonga would be proud
As I read today’s announcement, the Ibrox Board have just handed Ashley their crown jewels (minus Ibrox) in a lovely plush lined box, for the grand sum of £2 million net, which should see them safely through until the end of February, although it might be tight. Desperate stuff indeed.
Two things stand out for me. Firstly, due diligence is required before the second tranche (£5m) is released. How long has Ashley had his men inside Ibrox? Llambias joined the Board on 3/11, so that’s about 12 weeks ago. There must be a very complex mess under that bonnet. Maybe I was a bit harsh regarding Wallace’s 120 day review. Clearly there are serious issues which genuinely worry the Ashley team.
Secondly, the RR dividend. As I read the announcement, the whole lot goes to Sports Direct. They will be entitled to 75% of it anyway, now they have increased their shareholding, and the balance reimburses SD for getting them out of some onerous leases.
And then there is, of course, the mandatory warchest reference. The company is grubbing along on a hand to mouth basis, and has been for at least a year, but of course when they have their fabled share issue, they will be strengthening the squad with the money. Aye, right. I used to watch Fantasy Island as well.
In summary, MA has run rings around Goldilocks and The Three Bears. Like Sarver, they served the board’s need to consider all alternatives before accepting the only show in town. But they did manage to save the major asset from being encumbered, which is a stunning achievement because it was never available for security because it is already encumbered – allegedly. How thick do they think the MSM and fans are?
neepheid says:
January 27, 2015 at 9:20 am
The trouble is that the mantra has been like this for so long people in the game and in the media have taken it as the norm and without question.
That is just disturbing as in a free society everything should be up for discussion and analysis.
While the legal wrangles regarding the EBT are still going on and there is not a direct comparison can you imagine sports like cycling and athletics where everyone is saying, ‘Oh yes we need the likes of Lance Armstrong and Ben Johnson back in the game’.
We have a club or company that is a financial basket case, that in the past (because we are told they are the same club) had an openly sectarian signing policy, that the authorities accused of behaviour that was second only to match fixing, fans who boycott other clubs at the drop of the hat, riots in Manchester and continual run-ins with Uefa and euro clubs, the list is endless.
Yet still the received wisdom form all the games ‘insiders’ is that we need all of this.
It is just sheer madness not to question whether or not the game in this country needs this one club or indeed any other club within its ranks.
Dalglish talks about psychopaths. I know where the folks who need a lie on the psychiatrist’s couch are and it is not on the terraces of most Scottish Football grounds – other than why are we fans so addicted that we keep putting up with this nonsense and drivel.
Ashley has effectively drip fed another £2M into the club leaving a balance of £5M outstanding.
In return he has taken:
* securities over all assets excluding Ibrox, but including all trademarks
* a further 26% of Rangers Retail
* Rangers share of Rangers Retail dividend to pay off SD lease contracts (were £422k at the last set of accounts)
* shirt sponsorship revenues from 2017/18 onwards (I think that had been suggested previously in a trade off about the £1 naming rights)
* the right of SD to nominate two directors (replaces the rights held by Mash under the old agreement)
I am struck by the “Due Diligence” statement re the second (drawdown facility) tranche of £5M. I don’t know if that is just buying time to see what the SFA do, or whether the EGM vote goes against him. If it is the latter, It could be preparation for a swift exit, forcing King to pony up the £5M immediately and to finance the shortfall until the end of the season, while attempting to undo the retail contracts.
The AIM notice also stated that the pre tax profit for Rangers Retail for the year to Apr 2014 was £1,172,893. The 2014 accounts for RR haven’t been published as yet. The corresponding figure for the year to Apr 2013 was £571,463 (£137,151 of that went in tax).
Taking a further 26% of RR may also mean that the those figures are no longer consolidated into the RIFC accounts as it will only be a minority interest. We should get interims out by the end of March.
“None of the security that is being given to SD covers Ibrox Stadium, which is specifically excluded and remains in the full ownership of the Club [defined in the statement as Rangers Football Club Limited], free from any security.”
Is it free from onerous contracts ?
Is it free off balance sheet arrangements ?
Is it free from contingent liabilities ?
“There is no specified repayment period for the first tranche [£5mil] of the Facility. ”
Is this a world record Wonga roll-over loan ?
No mention of need or lack of need for an EGM.
No mention of need or lack of need for an IPO.
No mention of need or lack of need for the SFA’s approval of increased influence.
Wonder if the SFA “undue influence” Hearing conference call thingy will be delayed?
I’d like to ask those that understand land prices, does the amount of money that MA has sunk in to TRFC represent good value for him? I mean, how much is Murray Park, The Car Park and Edminston House collectively worth? If TRFC cannot repay MA (and I fail to see how they can) then presumably the lot goes over to MA. How much is the land at the car park worth on the open market or how much can he expect to rent it out for on the 26 days or so per year that there is a home game. What about Edminston House? What value is there in that other than the land it stands on. Murray Park? How much can that land be worth if it is on a ‘greenfield’ site? Any suggestions? So if these secured assets were taken over by MA, would it constitute a good business deal?
Ashley Swoop (2)
The Rangers AIM Regulatory Notice states:
(a) Means that Ashley now controls 75% of the Rangers Retail Ltd (RRL) shareholding.
(b) RRL made a pre-tax profit of £1,172,893 in period to 27 April 2014.
(c) RRL has suddenly declared a total ‘Dividend’ of £1,610,000 which looks very healthy against the last declared pre-tax profit figure. The sting in the tail – or should that be tale – is that Rangers will have to use its share of the dividend to pay cancellation charges for the unprofitable Rangers’ stores that have been closed because they were loss-making.
I remember many posts at the time – including some of my own – which declared Green’s sop to the Bears with opening the Belfast and Glasgow Airport shops as financial madness. We know that Ashley agreed as he closed them.
What’s unclear is the % of the ‘Dividend’ paid to RRL. Is it the original 51% or is it the new 25%. Common sense would seem to suggest the former but I have learnt to take nothing at face value in the Ibrox saga especially when money is involved.
So Rangers technically ‘receive’ either approx £800k or £400k from RRL and pass it to Ashley to pay for lease cancellation debts. Seems Mike has learnt a thing or two in his time about buying or taking over businesses and how to deal with their debts. I can only assume that a clause existed when he took over the running of the shops that certain debts remained with their former operators.
(d) Nice to note that from the 2017/18 season, for the duration of the loan agreement, Rangers has agreed that RRL will benefit from any any future shirt sponsorship proceeds. Will that benefit Rangers? Well, the SportsDirect shareholding in RRL is currently 49% but will increase to 75% for the duration of the loan which by my reckoning means Rangers could end-up with only 25% of future shirt sponsorship.
And the decision to release any money from RRL to Rangers by way of Dividend or Profit will lie firmly in the gift of Uncle Mike and I’m sure he will release or hold the money to suit his best interests in a business sense because he didn’t get to be a multi-billionaire by being careless with money.
It’s a funny old world when you dream your life away waiting for the arrival of a billionaire cargo cult and when one crash-lands on your stadium the reality doesn’t quite match the dream. That’s life they say
Are the RRM beginning to understand what unfair competition feels like – not by means of financial doping – but by means of intelligence.
How thick do they think the MSM and fans are?
Well, with some justification, they seem to believe that their target groups in both audiences, are as thick as pig shit in the neck of the bottle, evidence for which we see and read in the press and on social media every single day
Robbyp says:
January 27, 2015 at 10:28 am
SD no longer has security over Edmiston House or the car park. The £3m loan that was secured against those assets will be repaid from the new £5m loan. It’s all very confusing.
Robbyp says:
January 27, 2015 at 10:28 am
1 0 Rate This
I’d like to ask those that understand land prices, does the amount of money that MA has sunk in to TRFC represent good value for him? I mean, how much is Murray Park, The Car Park and Edminston House collectively worth?
//////////////
It’s a great deal
They can’t open the club deck without the carpark so not just parking fees rent as well so they can sell season tickets in 1 of the more expensive parts of the stadium
MP built for 14m could sell for 4/5m without blinking
Edmonson house falling apart yes but what brewery wouldn’t want a pub directly outside a 50k seater stadia?
Well worth 1.5-1.75m
An absolute steal
Jungle Jim says: January 27, 2015 at 10:41 am
Robbyp says:
January 27, 2015 at 10:28 am
SD no longer has security over Edmiston House or the car park. The £3m loan that was secured against those assets will be repaid from the new £5m loan. It’s all very confusing.
===============================
Those securities remain.
“The Facility is to be secured by (1) a floating charge over the Club’s assets and (2) fixed charges over Murray Park, Edmiston House, Albion Car Park, and the Club’s registered trademarks.”
The Offshore Game @theoffshoregame · 8m8 minutes ago
Process of external actors monetising FC assets & fans’ future spending becomes ever more extreme. The Rangers case will be in textbooks.
Fans can often be out manouvered by spivs – football authorities have key role in ensuring minimal levels of transparency & accountability
When dust settles, suspect Rangers &other fans will seek answers from @ScottishFA as to how this was allowed. SFA will be in textbook too.
Robbyp says:
January 27, 2015 at 10:28 am
SD no longer has security over Edmiston House or the car park. The £3m loan that was secured against those assets will be repaid from the new £5m loan. It’s all very confusing.
===============================================================
The devil is always in the details. MASH Holding will no longer have security over Edmiston House or the car park because they will be repaid their £3mil from the first tranche of £5mil. But the first £5mil traanche from “SportsDirect.com Retail Limited and associated companies (‘SD’)” is secured: “The Facility is to be secured by (1) a floating charge over the Club’s assets and (2) fixed charges over Murray Park, Edmiston House, Albion Car Park, and the Club’s registered trademarks.”
So the first £5mil tranche is in fact just £2mil net. Enough to pay the bills this month but not next month – so the board will need to subject themselve to “due diligence” before receiving the second £5mil tranche at Mike’s discretion. No undue influence there then.
Will “due diligence” include telling G & 3B to GTF with their EGM and IPO?
Plenty of room for inexact reporting there – eh MSM.
Yes Mike “Anaconda” Ashley knows how to squeeze the breath out of his victim, slowly, so they don’t struggle too much until it is too late.
Please forgive me, I should stick to lurking in the background.
So Ashley originally loaned them £3m against Edmiston House and the car park. Now for an additional £2m he retains those securities and adds Murray Park as well. Jesus he’s good.
Someone has got his fingers in his ears shouting
. . . “I don’t want to listen to you…na na, na na, na”
http://www.ibroxnoise.co.uk/2015/01/its-old-firm-whether-you-like-it-or-not.html?
So, KD, NL, WS, et al can think what they want
But Celtic fans and other Club’s Fans and Donald Findlay CAN’T ?
Jungle
Not an additional 2m
He’s lending them 5m they are paying back his original loan 3m + interest off the 5m
So getting it all for
Less than 2m total
It seems to me that King and the 3 Bears have just spent a load of money to achieve precisely nothing. Whereas Ashley is getting the lot for peanuts. I still think Ashley will cut a deal to get rid of the football business (in a totally skeletal form) to the RRM. If Ibrox is really sewn up with some unbreakable option to buy in the event of various contingencies, he might even be happy to let them keep that as well.
However everything else is Ashley’s, and will be staying that way, unless someone is prepared to buy him out for really big money. The cost to the RRM of salvaging their beloved “Rangers” intact is getting out of their reach. They will just have to settle for what they can afford, but it’s going to be slim pickings by the time Ashley has filled his boots.
“interest free tranches”
Anyone know whether a Company has to pay tax on interest-free loans?
Ashley Swoop (3)
The Rangers AIM Regulatory Notice states:
As Llambias and Leach are now executive directors then they retain their seats on th Board.
And SD can nominate another 2 Directors which to the jaundiced amongst the Bear Support will inevitably identify as a 4 strong pro-Ashley bloc.
Somers I reckon will be tossed overboard at some stage but we have yet to discern whether Uncle Mike remains wedded to the Easdale proxies or not.
I would expect some roaring from the Old King of the Serengeti but will it actually mean anything other than provide a faint echo of what he used to be in his prime when his sharp teeth and claws made him the Numero Uno predator.
Biting tanks tend to leave even Lion Kings gumsy and declawed and only fit for fighting with the vultures over the remains of the kill made by a hunter with the necessary firepower to rule the killing ground.
So we are left with the 3B. Will they now accept what seems the inevitable and agree to work with Ashley and be rewarded with 2 seats on the Board which will allow the SFA to fudge as usual.
If it goes down that road they or someone else would need to buy-out King’s shares to keep some kind of check on the Easdedale proxies. And so the circus will rollon for a few years.
Expenditure will be cut drastically. Murray Park will be sold. I doubt if anyone in the Blue Room will be looking too deeply at onerous contracts or the issues surrounding Ibrox ownership.
The next move IMO is down to the 3B – they simply don’t have the cash to confront Ashley and I think they have enough business nouse to understand the futility of winning an egm that will then collapse the house of cards.
I cannot see how Ashley cal lose this other than by the fans increasing their boycott of all things Ibrox and SportsDirect.
I have no idea whether that can or will happen. But if it does it might be the only way of forming a new club which necessarily means a new beginning. I simply don’t know if the will is there for that.
I keep thinking back to the ‘permanent capital’ phrase and perhaps that could be achieved by fans continually buying shares through rights issues in the belief they can gain control of their club.
It will never happen of course but dreams can be powerful motivators and the one thing about fans buying shares is that they seldom sell them so it is as near to ‘permanent capital’ to be found down Ibrox Way I reckon.
The Rangers Board linking the creation of ‘permanent capital’ to improving the first team playing squad is a direct tug at the heart-strings of the support as the means of continuing the march to their ‘Rightful Place’.
Jungle Jim says:
January 27, 2015 at 11:09 am
2 0 Rate This
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Don’t be too hard on yourself. I think it was deliberately spun to confuse particularly so as to hide the truth from the bears that are seeing this as good news.
As a couple of asides. Firstly its been alluded to already but I suspect the due diligence for the 2nd £5m has very little to do with current circumstances its just a get out for Mike to say naw if something happens he doesn’t like (EGM votes off Leach and Lllambias, SFA grow a pair and act on dual ownership because Mike via SD and L&L is definitely controlling RIFC and therefore TRFC through his <10% shareholding and "soft loans")
Secondly I don't venture on to bears message boards other than the one attached to the LSE (the chat site as opposed to the offical site) page for RIFC http://www.lse.co.uk/SharePrice.asp?shareprice=RFC&share=rangers_int. There are 3 separate factions all tearing each other to shreds. With this show of "Unity" :irony: they have no hope.
Someone has got his fingers in his ears shouting
. . . “I don’t want to listen to you…na na, na na, na”
http://www.ibroxnoise.co.uk/2015/01/its-old-firm-whether-you-like-it-or-not.html?
So, KD, NL, WS, et al can think what they want
But Celtic fans and other Club’s Fans and Donald Findlay CAN’T ?
******************************
Oh , dear.
So much time spent ranting and so little time spent actual debating/arguing /rebutting the facts of the matter.
As for his point that that there is global interest or that it ranks just behind classico/Auld Enemy games : no offence to posters on here but that is why us who have no interest in the Old Firm/New Firm games (yes, we do exist) are so sorely pi&&ed off with Scottish football.
The sadly predictable response from most “critics” seems to be to simply dismiss the CQN ad as a misguided , stupid prank. I don’t recall anyone seriously attempting to debunk the facts of the matter – but then you can’t , can you ?
Well done to the guys who funded and did all the hard work – it may not be perfect but it’s worth saying and it’s “out there” now.
An evil, wicked thought went through my head just now.
What would happen if every Celtic fan going to the semi popped into sports direct and bought a pair of socks. Picture the scene, a sea of SD carrier bags at Hampden 🙂
Good Afternoon
3 Bears and King stuffed deal tighter than two coats of paint.
This is what happens when sentiment overcomes sound business judgement.
Wonder when the Orange strip will come out?
Somebody has a watertight deal over Ibrox and that is why security is not available.
In my opinion Administration will happen sooner rather than later and SD will mop up.
A long way to go.
Tincks says:
January 27, 2015 at 11:35 am
Think of the carbon footprint.
Jungle Jim says:
January 27, 2015 at 11:09 am
Please forgive me, I should stick to lurking in the background.
So Ashley originally loaned them £3m against Edmiston House and the car park. Now for an additional £2m he retains those securities and adds Murray Park as well. Jesus he’s good.
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Even better than good! For his £2 million extra he also gets a floating charge over all Rangers assets excluding the stadium.
Gets an increase in the Rangers Retail Ltd shareholding from 49% to 75% and new shirt sponsorship money.
Gets to nominate another 2 directors.
Gets a dividend from RRL to pay the lease cancellation charges for the unprofitable Rangers retail stores that SportsDirect took on the running of. Could amount to up to £400k or £800k.
Gets fixed charge over the club’s registered trademarks.
neepheid says:
January 27, 2015 at 11:15 am
I think that is a fair assessment. You can be sure that by the time the RRM get themselves sorted Ashley will have arranged a range of long term water tight contracts to his benefit.
While Ashley may have a pop at challenging the SFA the latest move puts everything in the hands of SD as opposed to MASH thus separating his activities from that of his shareholding within RIFC.
This way it is strictly business.
Thinking about it even if the club gets fined should the postponed issue ever get restarted they pay it using Mike’s loan money and he gets it back at some point in the future to pay anything he is fined personally.
As Ecobhoy said the Bears should have really put a proviso on what type of Billionaire they were wishing for.
At least RIFC had one option – Mike’s new onerous contract.
As far as I can see the SFA have no option that will allow them to look other than used and abused by the spivs.
Surely it’s time for mass resignations from the useless ranks of the SFA – or maybe they could negotiate terms with Mike – that usually works out well – for Mike.
Tincks says:
January 27, 2015 at 11:35 am
An evil, wicked thought went through my head just now.
What would happen if every Celtic fan going to the semi popped into sports direct and bought a pair of socks. Picture the scene, a sea of SD carrier bags at Hampden 🙂
——————————————————
Why buy a pair of sox – just buy a bag for 5p. We pay all our taxes including landfill 😆
For at least 2 years, there has been calls to clarify ownership of Ibrox, the stadium.
Some very vocal chants of “show us the deeds” by some important (even if not too influential) people representing the fan base and smaller shareholders.
Now for any sports (or even business) journalist worth his salt, I would have thought this was a story to run with, why not just request a copy of said deeds and any contract that is associated to or impacted by any changes?
Now we are to believe that this has just been handed over now without any ulterior motive?
Sorry, not buying it! (If you pardon the pun…)
redetin says:
January 27, 2015 at 11:17 am
3 0 Rate This
“interest free tranches”
Anyone know whether a Company has to pay tax on interest-free loans?
……………………
Maybe the Loan is interest free,
but is there an “arrangement fee” ?
ecobhoy says:
January 27, 2015 at 11:41 am
Indeed, poor wee goldilocks, and her bears, have discovered that the Big Bad Wolf, with those awfie sharp teeth, has invaded their wee fairy tale,scoffed all the porridge, and, is preparing to have them all shipped off to the workhouse.
“Are the workhouses empty, are the treadmills silent?”, as Mr Scrouge would put it
Tincks says:
January 27, 2015 at 11:35 am
Do you even have to buy anything of any worth?
Can you not just ask the folk behind the till for a bag and hand over your 5p?
25k at 5p is £1250. Could be the best advertising deal yet for Ashley and even cheaper than the Herald advert.
EDIT sorry eco you got there before me.
ecobhoy says:
January 27, 2015 at 9:31 am
12
0
Rate This
Ashley Swoop (1)
The Rangers AIM Regulatory Notice states:
I assume that ‘working capital’ is different from ‘permanent capital’ and therefore can’t be used to strengthen the playing squad
__________________________________________________
Weeell… yes and no.
It could ease the process of paying off some of the overpaid duds, and let soem kids come through.
That COULD be argued to strengthen the playing squad.
See … it could be argued that having McCoist tending his marrows during the transfer window (as opposed to eyeing up transfer bargains) would also have strengthened the playing squad, based on previous evidence.
Tincks, I can think of no good reason for any football supporter to ever hand over money to Sports Direct. I’m sure Celtic fans will be creative on the day, no cash to the money monster though, please.
Madbhoy24941 says:
January 27, 2015 at 11:45 am
For at least 2 years, there has been calls to clarify ownership of Ibrox, the stadium.
Some very vocal chants of “show us the deeds” by some important (even if not too influential) people representing the fan base and smaller shareholders.
Now for any sports (or even business) journalist worth his salt, I would have thought this was a story to run with, why not just request a copy of said deeds and any contract that is associated to or impacted by any changes?
Now we are to believe that this has just been handed over now without any ulterior motive?
Sorry, not buying it! (If you pardon the pun…)
———————————————————–
It will be the copy of the deeds registered at the Land Registry – that’s been about for over 2 years now. I think any journo worth his salt might well ask why the Auditors don’t take the deeds at face value.
And why have they mentioned a non-existant ‘problem’ in notes to the accounts?
It seems to me that King and the 3 Bears have just spent a load of money to achieve precisely nothing. Whereas Ashley is getting the lot for peanuts. I still think Ashley will cut a deal to get rid of the football business (in a totally skeletal form) to the RRM. If Ibrox is really sewn up with some unbreakable option to buy in the event of various contingencies, he might even be happy to let them keep that as well.
However everything else is Ashley’s, and will be staying that way, unless someone is prepared to buy him out for genuine big money. The cost to the RRM of salvaging their beloved “Rangers” intact is rapidly getting out of their reach. They will just have to settle for what they can afford, but it’s going to be slim pickings by the time Ashley has filled his boots.
ecobhoy says:
January 27, 2015 at 11:51 am
—
Precisely.
Barcabhoy says:
January 27, 2015 at 12:29 am
Totally agree with what you say, but wouldn’t a free and open debate about OC/NC bring the misdeeds of Murray and pals out into the open? There was a point when everyone agreed, the day the CVA was refused, that RFC had died. If everyone had continued to accept that, then the debate would have, almost automatically, started about how it came to pass. Instead, attention was turned to the OC/NC debate, a giant squirrel if you like. To get to the point where the real culprits are investigated requires everyone to feel a loss, and then feel the need to ask why that was allowed to happen.
Put another way, the only way the Rangers ‘family’ (the supporters, MSM, SFA etc) are going to investigate the Murray years seriously is if the OC/NC debate raged to the conclusion that the club did, in fact, die. Until then, the Murray years were the best the club has ever known, and no one from that ‘family’ is going to open that can of worms unless the true cost is recognised.
There must be lots of succulent lamb to be had
http://metro.co.uk/2015/01/27/celtic-and-rangers-loony-fringe-are-an-embarrassment-to-all-real-football-fans-5037091/?
Rob Devine in the Metro, obviously can’t be a journalist either but likes to call himself a journalist
Apologies if anyone else has posted on this.
I’m sitting thinking that absolutely every asset of Rangers is now tied-up and secured with the exception of the stadium.
Therefore if any creditor – like HMRC – makes a move all that is left is Ibrox.
I don’t think I have ever seen a clearer sign that Rangers don’t own Ibrox outright. They have nothing else left of any value for any trade creditor to seize.
It all just seems total madness. It means that anyone claiming cash out of Mike’s millions need to be paid or they will attempt to seize Ibrox.
This means Mike’s money will soon be spent and all that’s left is Ibrox so the whole ‘secret’ of the ownership is exposed in court.
Is this part of the Ashley Plan? He seems to have set-up his stall well to survive liquidation with little or no financial damage.
Mike Ashley negotiates RIFC/TRFC’s next loan:
https://www.youtube.com/watch?v=f7pMYHn-1yA
to make matters worse for Golidilocks and her three bears –
The little piggies on the Hampden Board
Heard the Ashley Roar
And, promptly lost their balls
I seem to be channelling Jim Leishman today
The Rangers nil? Who missed the penalty? says:
January 27, 2015 at 12:09 pm
😆 😆 😆 😆 😆 😆 😆 😆
ecobhoy says:
January 27, 2015 at 11:26 am
I keep thinking back to the ‘permanent capital’ phrase and perhaps that could be achieved by fans continually buying shares through rights issues in the belief they can gain control of their club.
====================
Permanent Capital just means shares as opposed to loans. It is permanent in the sense that the investor can’t get repayment from the company. If the investor wants out, he has to find a buyer for his shares. So it doesn’t really matter who buys the shares, once the company gets the money, it doesn’t have to repay it.
These fan schemes for buying shares in the open market are pretty futile, in my opinion. I think they have just over 1%, and none of the money they have spent has gone into the company, apart from any rights they exercised back in September.
This is precisely the kind of payday loan which the Government wants to stamp out. In fact it is worse than that as the securities are increasing in extent as time goes on. I guess it will suit the ash meister for the boycott to continue until he has everything under control after that sale and leaseback of the assets where the sale money goes to repay the loans. This means that The RRM will have a company which needs to rent the club before paying for the running costs and war chests. It is better for Mr Ashley than a franchise model as the club he rents has a ready supply of life long patrons. Definitely a textbook case study Enron without the criminality- the man is top class in pauchling spivvery
Think ally needs to return. After all his gardening, must be expert in hydrangeas problems.
ecobhoy says:
January 27, 2015 at 9:31 am
The RNS also states:
The second tranche of GBP5 million, which repayable 5 years after drawdown, will be used, if required, for working capital purposes and is subject to due diligence by SD prior to drawn down.
_______________________________________-
Am I correct in reading this as saying the second tranche isn’t available unless SD are happy, at the time it’s needed, to allow them the facility?
If so, that’s some gun to have at the head of the RRMs, and the SFA for that matter.
The Rangers nil? Who missed the penalty? says:
January 27, 2015 at 12:09 pm
😆 Absolutely bloody hilarious and so apposite!!!!!
@allyjambo that’s definitley my take on it. EGM votes Ashley’s men out or SFA grow a pair and Ashley’s due diligence says naw. I’m also taking it as its up to £5m that he can drip feed it while he’s happy and turn off the tap if ever he isn’t.
Allyjambo says:
January 27, 2015 at 12:42 pm
ecobhoy says:
January 27, 2015 at 9:31 am
The RNS also states:
The second tranche of GBP5 million, which repayable 5 years after drawdown, will be used, if required, for working capital purposes and is subject to due diligence by SD prior to drawn down.
_______________________________________-
Am I correct in reading this as saying the second tranche isn’t available unless SD are happy, at the time it’s needed, to allow them the facility?
If so, that’s some gun to have at the head of the RRMs, and the SFA for that matter.
————————————————–
That’s my reading as well. There’s also the issue of ‘Duration of the Facility’. If the 2nd tranche isn’t drawn-down does that leave the ‘Facility’ and the rights under it in place in perpetuity or until the £5 million for the first tranche is repaid?
blu says:
January 27, 2015 at 11:50 am
2 1 Rate This
Tincks says:
January 27, 2015 at 11:35 am What would happen if every Celtic fan going to the semi popped into sports direct and bought a pair of socks. Picture the scene, a sea of SD carrier bags at Hampden
Tincks, I can think of no good reason for any football supporter to ever hand over money to Sports Direct. I’m sure Celtic fans will be creative on the day, no cash to the money monster though, please.
====
Does not the bag tax go to charity?
Jungle Jim says:
January 27, 2015 at 11:09 am
Please forgive me, I should stick to lurking in the background.
=============================================================
I hope my comment didn’t deter you from posting more – if it did I apologize – your comment was perfectly reasonable. I have experience of reading and writing commercial contracts over a few years and you develop an instinct for what is normal and what seems a bit odd and needs to be treated as potentially dangerous – especially with companies that are much bigger than yours. Needless to say, if I was presented with Mike’s terms to sign, I’d vacate the building and call the bomb squad.
Hi Tom(English)
To update you a poll that was taken by the Bampots it unfortunately has came out that you are not looked on as a journalist but a sports reporter, polls in case you are not aware can be re-run at later times with different outcomes as we live in a democratic society and opinions change ,mainly to the pollsters becoming aware of facts that where previously unclear, miss presented or not presented at all,now if you recognise any of these as tools that are in your tool box we recommend you clear said tool box of these and replenish with ones similar to the bampots use,we can then re-run the poll are you up for it.
Tincks says:
January 27, 2015 at 11:35 am
An evil, wicked thought went through my head just now.
What would happen if every Celtic fan going to the semi popped into sports direct and bought a pair of socks. Picture the scene, a sea of SD carrier bags at Hampden 🙂
=================================================================
If Mike’s men read this – pretty sure they do – there might be a few mystery boxes dropped off at the Barras very early Saturday morning by an unmarked white van – stranger things have happened.
So, have I got this right?
Ashley has given over three loans, two of which were used to repay what he already loaned them.
Hence his total net contribution is the two million that is being spent on Thursday.
For this, they now owe him 5 million, that they can’t pay back and when they default he has ownership of all concrete assets of the club except Ibrox, and no-one seems to have a clue who owns Ibrox in any case. He also has control of all retail sales and the future shirt sponsor money.
Is that the situation?
PMSL here.
And the SFA and SPFL facilitated entire rule book changes to let this happen for the greater good of the game.
You could not make this up.
not so much Talking Baws
. . . but Talking P#sh
Also denying it is the 1st ever game between Celtic and the New Club
http://www.talkingbaws.com/2015/01/27/police-visit-celtics-training-ground-and-tell-players-to-tone-down-any-celebrations-against-rangers/?
Useful Info
mcfc says:
January 27, 2015 at 12:50 pm
////////////////////////////////
Not at all, no apologies necessary. This forum is the only place I can come for what I consider to be proper analysis and reporting of what’s going on. The reaction to my post demonstrates to me that the regulars on here are patient and understanding towards those of us with less knowledge and business acumen. It would be easy for this place to become something of a clique, but it clearly isn’t. More power to your elbow as my old dad would say.
iceman63 says:
January 27, 2015 at 12:57 pm
We didn’t have to make it up theses anchors already did that:
Neil Doncaster (CEO), Ralph Topping (Chairman), Eric Riley (Celtic), Stephen Thompson (Dundee United), Duncan Fraser (Aberdeen), Eric Drysdale (Raith Rovers), Mike Mulraney (Alloa Athletic) and Ken Ferguson (Brechin City). wity the help of Regan and Ogilvie.
Giving them a float test, in the Greenock Hole, with a cable of anchor chain, would be a good start 😈
Now that big mike has effectively marched into hampden, told Regan + co. to bend over and booted them in to touch . . does SFA now stand for Sore F. . A. . . (eh please fill in the blanks yourself or I’ll.be moderated . . again ) 😆
jimlarkin says:
January 27, 2015 at 12:57 pm
Also denying it is the 1st ever game between Celtic and the New Club
================================
English Comprehension Test:
He says; “I’m going out with her, have been for ages, she can’t get enough of me, can’t keep her hands off me, defo an item – hands off she’s mine”
She says; “in your dreams loser, as if, stalkin’s a crime you know perv, touch me and my brothers will feck you up big time”
Describe the probably relationship between the two characters and elaborate on their probable character traits.
neepheid says:
January 27, 2015 at 12:17 pm
3 0 Rate This
…These fan schemes for buying shares in the open market are pretty futile, in my opinion. I think they have just over 1%, and none of the money they have spent has gone into the company, apart from any rights they exercised back in September.
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Worse than that in fact because there is no guarantee that the shares they have bought on the open market since the September rights issue would change the ultimate voting %’s anyway. To do that they would need to somehow buy shares from someone who would have voted in support of the current board at the EGM. Not possible really. At best all they can do is stop them getting into the hands of others. Pretty much the same logic that drove Easdale to increase his recent holding. It’s all just shuffling deckchairs …not something the RST have chosen to point out in their current campaign to encourage Bears to buy shares.
Head Hunter says:
January 27, 2015 at 1:12 pm
3 0 Rate This
neepheid says:
January 27, 2015 at 12:17 pm
3 0 Rate This
…These fan schemes for buying shares in the open market are pretty futile, in my opinion.
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It’s all just shuffling deckchairs ………
================================================
On the deck of the Titanic
ecobhoy says:
January 27, 2015 at 12:58 pm
Useful Info
Fixed and floating charges
======================================================================
If that doesn’t give the bears nightmares then they need someone to explain it to them.