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?
ernie says:
February 5, 2015 at 6:22 pm
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Up paying your fees I hope.
would the five loan players who must play every week. If the team wins do they get a win bonus like the permanent players would get. I don’t know the rules of the pay structure of loan players , is it just a basic pay because you are on loan or are you due a win bonus like the rest.
If both clubs agree to each pay half of the weekly wage but the player gets a win bonus on top who pay’s the win bonus? is it split and both clubs agree to pay the extra
Sorry, QPR: The FOUR Year Plan
If you haven’t seen it – you will love it – Ecclestone, Briatore, Warnock – two hours of football insanity and genius
https://www.youtube.com/watch?v=yzmeEipmHkM
@SSB
Gerry McCulloch host. So no bad. Outrage that EGM might be rejected the morra. ‘What can we do?’ asks a caller, ‘We can’t let the club die.’ 😯
@Phil
Just caught up with his 3 x epistles from today. Makes sense now that no players left if burning the loan asap is indeed the plan. Walter Smith must be luvin it, ‘Spend, spend, spend!’
Allyjambo says:
February 5, 2015 at 1:06 pm
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Great post AJ!
Never looked at from your side before and I believe (IMO) that is a failure from many Celtic and Rangers fans.
Danish Pastry says:
February 5, 2015 at 6:46 pm
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The ‘burning through the loan cash’ theory does fit the evidence I think.
However I have to stress it is just a theory of mine-nothing more than that.
A bit off topic but some might say OCDy (but not me!).
All this talk of loanees.
Surely the players are not loanees.
The receiving club is the loanee.
The lending club is the loaner.
The players are the loan.
PhilMacGiollaBhain says:
February 5, 2015 at 6:51 pm
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The ‘burning through the loan cash’ theory does fit the evidence I think.
However I have to stress it is just a theory of mine-nothing more than that.
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I think it’s come up on here a few times as well. I suppose it could be a potential double-edged sword: if not needed for the (no one expects the) Scottish Requisition, then it’ll put the SFA in a pickle with skint club about to be put out of business by Hampden action/inaction; and Regan lies awake at night worrying about social unrest! Jings.
@Kilgore
Pedant’s corner for me, I know:
PhilMacGiollaBhain says:
February 5, 2015 at 6:51 pm
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Danish Pastry says:
February 5, 2015 at 6:46 pm
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The ‘burning through the loan cash’ theory does fit the evidence I think.
However I have to stress it is just a theory of mine-nothing more than that.
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Give that the wages would ultimately have to be paid by Mash whether the players were at TRFC or NUFC, it is effectively a little bit of transfer pricing by Sports Direct Holdings.
Its the equivalent of Advancing TRFC cash so they can buy more shirts to fulfill his merchandising contracts.
Mash gets paid and TRFC owe him money.
Why does he need shares in them when they owe him their very continued existence to him at a whim?
Resin_lab_dog says:
February 5, 2015 at 7:16 pm
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Why does he need shares in them when they owe him their very continued existence to him at a whim?
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Quite.
Long time lurker from RTC days and with thanks to all the usual contributors for updating the news and giving incredible insight. Spent last 3 decades in Africa and agree with other posters around the world that apart from us Scots nobody else bothers with the OF and to be honest some of us prefer to see our own [diddy] teams. We should demand to know who the 50 odd countries are who were forced to suffer last weekends game; luckily in SARS land we only saw Sky highlights? As for the Geordie 5 yet to find someone who has heard of any of them. Everyone worrying about how they might improve a team in blue. They could destroy the dressing room and if it was realistically possible (is it?) could they not make them worse? Scottish Football has a strong Arbroath but at least we got a draw there last week.
PhilMacGiollaBhain says:
February 5, 2015 at 7:26 pm
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Resin_lab_dog says:
February 5, 2015 at 7:16 pm
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Why does he need shares in them when they owe him their very continued existence to him at a whim?
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Quite.
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Or to put it in simpler terms:
Q.What is it that Mash is actually giving to RIFC, that they desperately need?
A.Banking facilities which allow them to pay their bills when they fall due. The current board can argue that they are not trading insolvently because – with Llambias, they have the demonstrated good will of someone willing and able to meet cash bills as they fall due.
Q.What will RIFC suddenly lack if they remove Ashley’s nominee’s from the board?
A. See above. The situation is not dissimiar to that experienced by the earlier incarnation of Rangers when the banks started pulling on its overstretched credit lines.
Q. What can DK and the 3Bears do about this?
A. They have 4 options, ranging from the not so good to very bad:
1. Pay Mash Handsomely and publically, and send him away with his pockets jangling (unlikely)
2. Go away Quietly. (Clearly the smartest move for them : despite that, its not impossible)
3. Make TRFC utterly insolvent with no way back, by annoying Mash and generally stomping about as if they own the place and are beholding to no-one! (very very possible)
4. Cosy up to Mash and bring something to his party, before falling into line behind him. I think McMurdo has smelt this particular brand of Coffee.(This is their next smartest move. But I wouldn’t discount it!)
What’s everyone’s guess what will happen tomorrow? Mine’s is that there will be an early stock exchange announcement that no EGM request has been granted.
Just a guess of course.
upthehoops says: February 5, 2015 at 7:52 pm
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The Rangers Fans Board seems to think it’s a done deal.
EGM DATE: The RFB can officially announce, as informed tonight by Derek Llambias, that the EGM is to be held on the 6th of March 2015.
easyJambo says:
February 5, 2015 at 8:04 pm
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upthehoops says: February 5, 2015 at 7:52 pm
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The Rangers Fans Board seems to think it’s a done deal.
EGM DATE: The RFB can officially announce, as informed tonight by Derek Llambias, that the EGM is to be held on the 6th of March 2015.
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Oops.
If true it looks like Mash is maybe gonna pull the plug.
The player loan is just his way of sucking his cash back out of the corpse.
(its money he was gonna have to pay anyway remember!)
Spectacular own goal from the TRFC back 4 there!
There are two aspects of Kenny’s pronouncement today.
The first is for the five players themselves. If it is true that they have to play then they could essentially sit in the dressing room eating pies all week knowing they’re still going to play. It isn’t good for their edge to know that they are guaranteed a place in the team. It hardly drives up standards.
Secondly if you are one of the current squad, particularly the guys who are out of contract at the end of the season, and you know that out of the eleven starting places five are automatically taken then you are not going to be particularly inspired. If one of the ‘famous five’ plays in your position then you will be even less motivated.
I feel for the five. They will probably be the focus of the fans ire as they cannot get to Mike, and the board are also protected so they are the next best thing.
If it is true that ‘The Rangers’ are paying the full salary, and one of the guys is reported to be on £18k a week, then the black hole just got a little bit darker.
easyJambo says:
February 5, 2015 at 8:04 pm
The Rangers Fans Board seems to think it’s a done deal.
EGM DATE: The RFB can officially announce, as informed tonight by Derek Llambias, that the EGM is to be held on the 6th of March 2015.
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Shows you my guess was just that then, assuming their info is accurate.
If that’s the case then we’ll see what happens. Ashley has wiped the floor with them every time so far. I doubt he’ll be too chuffed at some of the stuff King was spouting to his flock yesterday either.
justshatered says:
February 5, 2015 at 8:23 pm
There are two aspects of Kenny’s pronouncement today.
….If it is true that ‘The Rangers’ are paying the full salary, and one of the guys is reported to be on £18k a week, then the black hole just got a little bit darker.
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Another interesting aspect….are Rangers paying the salaries of the two players who are currently injured and according to KM not expected to arrive for three or four weeks ❓
K. McD repeating, “I’m only doing as I’m told”, because he’s been advised that to do otherwise will cost him his job and his money?
Now he has to coach an already disillusioned squad (according to K. Miller) competing for 7 first team places now and 5 in , “3 or 4 weeks”, while the 5 loans shuffle round looking at their feet.
This is both ludicrous and brutal and raises a very obvious question about why Llambias and Easdale felt it necessary to give such an order in the first place if they have the confidence in the loans that they have brought to the club.
5 more loans,
They’re only 5 more loans…
What is Kenny McDowall thinking? I haven’t cringed so much since MoJo pulled on a blue jumper.
Seriously, if money is that important to him, such that he is willing to forgo serious quantities of self respect, then maybe I’ll send him a couple of quid to help see him on his way.
Kenny earns just shy of £5k a week – if media reports are to be trusted. (Can’t believe I just said that!). More money in a year than the average fan will earn in 10. Wolves are hardly congregating at his door.
stifflersmom says:
February 5, 2015 at 9:18 pm
What is Kenny McDowall thinking? I haven’t cringed so much since MoJo pulled on a blue jumper…
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And if we are cringing, what must the bears – and even the TRFC players be thinking ?
And towards the end of the season, and maybe even the play-offs, who is going to display real leadership and be able to fire up the players to secure that promotion ?
Not McDowall…
Would McDowell not have been in breach of his Non Disclosure Agreement by revealing confidential back-room chit-chat? I can’t see Large Michael being too amused by this public display of indolence.
Napoleon got it right with his mantra, “Never interfere when your enemy is making a mistake”, Update is ” Sit quietly when your rival is self-destructing”.
KMcD can easily show where truth lies by having two of the fit NU trio on the bench, and one sitting in the stand.
There is some cheeriness down Ibrox way tonight, as one spectre recedes into the distance. The footballing legend that is Felix Magath is off to inflict his dubious talents on BVB
The Geordie 5 have at least been spared that
Edit
keith jackson @tedermeatballs 2m2 minutes ago
Been a while but there’s a 7am klaxon coming. And i suspect the RIFC board and nomad are about to stick it to Dave King.
KmcD has had more difficult questions thrown at him in the last few days and weeks than WS had in a lifetime.
Perhaps he is not in the right clubs.
The cowardly mice in the mom should give him a break. There are plenty other Sevco employees who could be pressed for some interesting details on the decline of this infamous club.
Oh how the MSM monkeys laughed and gave it tight to the Jambos when Vlad was picking the teams.
Early days but not holding my breath for similar coverage this time round.
If any organisation has been given a early release pre market of an AIM announcement then the company that did so is in regulatory trouble.
I believe.
We shall see.
scapaflow says:
February 5, 2015 at 10:53 pm
There is some cheeriness down Ibrox way tonight, as one spectre recedes into the distance. The footballing legend that is Felix Magath is off to inflict his dubious talents on BVB
——
Klopp is offski?! To be expected, I guess, but Felix doesn’t exactly seem like the kind of cat who fits in with the Dortmund ethos. Interesting times.
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keith jackson @tedermeatballs 2m2 minutes ago
Been a while but there’s a 7am klaxon coming. And i suspect the RIFC board and nomad are about to stick it to Dave King.
——
I have to say, this whole saga is up there with “Breaking Bad,” “The Sopranos,” or any of HBO’s DVD box sets (AKA “60-hour novels”) when it comes to sustained drama. Maybe a more apt comparison would be the Saturday-morning cliff-hanger serials that they used to show in cinemas back in the day. (Sadly I arrived too late to be part of said phenomenon.)
It’s just too good! Particularly when we get to watch the likes of @radarmeatballs having to “re-position” themselves every time the Grand Scriptwriter throw in some preposterous new twist. It’s just too bad that Mr. Ashley has left it too late for an Original Screenplay nomination at this year’s Golden Globes/Oscars! Perhaps he will ultimately be compensated with a knighthood for services to the entertainment industry–I hear there may be a slightly-used Sir-ship coming onto the market in the not-too-distant.
bad capt madman says:
February 5, 2015 at 10:29 am
Maybe MA is hoping that if he taunts them enough the SFA will act in some way giving him a reason to liquidate
,,,,,,,,,,,,,,,
Yep
That’s about where we are now
Ashley’s big weakness is not controlling a majority of the shareholders
Debt works fine as a control mechanism as long as the shareholder grouping are disunited
If King gains control at the EGM Ashley is out. His only option is to make it very expensive for King to continue the business as a going concern and force a liquidation event
Since liquidation is the end game anyway Ashley might as well pull the plug while he still holds the floating charge .This enables him to appoint a friendly Liquidator who would act on his behalf
Someone like Duff & Phelps who were involved in one of the recent SD insolvencies
So
Ashley may simply be looking now to muddy responsibility for an insolvency event that he has created by refusing offers of help from anybody and calling up his loans while he has control of the Board
The SFA have timed their dual control meeting with Ashley to take place after the EGM
Today’s fiasco over the 5 loan players may even have been deliberately timed to kick off some aggro with the SFA to get the fans on board for an SFA blame dispute if there is an objection by Raith Rovers following the SC match this weekend
ianagain says:
February 5, 2015 at 11:41 pm
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If any organisation has been given a early release pre market of an AIM announcement then the company that did so is in regulatory trouble.
I believe.
We shall see.
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So we have the RFB ‘officially announcing’ an EGM for Mar 7 ahead of an AIM announcement:
I call “squirrel” to wrongfoot the opposition.
And we have KJ ‘hinting’ at – but not announcing – upcoming AIM ‘announcement’ that K&3B won’t like – presumably of takeover committee involvement because K & 3B are acting as a block, hostile takeover, controlling enough shares to force a buy out.
I know where I’d place my money for what tomorrow brings. I could be wrong, but am going with my original prediction. No EGM.
I could be wrong, but it walks like a duck and quacks…
Oh… and current share cap is about 50% higher than Sarver offered a month back. I think the board can therefore turn around and say that they were legitimately acting in the shareholders best interests by knocking him back.
Oh… and its getting more and more expensive for K & the 3B to fund the ‘buy out’ there shareholding compells them to if they are seen to be acting as a block.
Share suspension anyone?
…. but if the shares are suspended… How will K & 3B effect the rights issue they need to refinance the club?
ooh… its a poser!
(They could always use their own money of course, like Easedale and Ashley have!… stop sniggering at the back!)
Just watched the Kenny McDowell interview….wow!…if you think that was cringy…think on this…that could have been Durranty or Elbows up there providing answers…
http://sport.stv.tv/football/clubs/rangers/309203-rangers-boss-told-all-five-newcastle-players-must-start-every-game/
I actually feel sorry for the guy…I think if he had been asked did you shoot JFK…he would have replied…I just do what I am told
Roll on the 7am Klaxon….this farce has to end…
Scapaflow 10.53
Is this what Keith was referring to?
http://www.philmacgiollabhain.ie/rifc-nomad-asked-to-contact-take-over-panel-after-king-presser/
If so is it to have ammo to take to EGM or reason to cancel it?
The charge is that DK & 3 Bears are working in concert.
Goldilocks, Goldilocks, Goldilocks. Not relevant just a spontaneous reaction or a means of bringing back SDM.
Is this what KJ was referring to?
https://twitter.com/moo_ted/status/563428702487597056
I would have thought it was quite possible. On the other side of the coin though, with the training regime at Murray Park, NUFC might well have five overweight, unfit players returned to them at season end. I’ve already seen a report of one of the five being ‘surprised’ to see a TRFC player at training eating a bag of crisps. 🙂
The recent comment from Paul Murray about working with Celtic to repair Scottish Football is probably the biggest indication so far that the people who want to take control at Ibrox actually do see themselves as the saviours of the game here. They have no sense of reality. So self important are they that
A. They cannot see the game here is doing just fine without them and
B. Their past pedigree in fixing things football related in Scotland leaves a whole lot to be desired. Coupled with the fact they are not eligible to be near any boardroom due to earlier failures are they the kind of guys needed to repair anything anywhere near any business in Scotland.
Carfin
You forgot the third, that whilst the RRM control a large crowd and attending populace (still the most redeeming feature of the ordinary RFC supporter in all of this – crowds the rest of us can only dream of) they have been shown to be only marginally beneficial, if at all, to the other clubs. That perception of institutional benefactor is not the sole preserve of RFC of course! The key points being the two club model has been shown up on two fronts in addition to your points: that it is unquestionably institutionalised but no one is no longer sure why (we all scoff at the “costing Celtic £10m figure for instance) and secondly, the two club model and the crowds that go with it are, by definition, requiring the two clubs to be successful ergo the other 10, indeed 40 aren’t.
Do I Have this right? Dave King thinks he can outsmart Mike Ashley and oust his people from the Board. Mike Ashley will accept defeat and concede meekly. King expects Rangers fans will stump up 10-15 million when in the past they have only ever stumped up 1 million. By early March with Ally McCoist having pocketed another 62,500 and the 5 Magpies having pocketed easily 300,000 and the rest of the squad and management picking up inflated salaries ( second highest in Scotland) virtually all the 10 million loan will have been used. Will Dave King pay off the MA loan? What security would he have?
When has Mike Ashley ever been beaten?
Carfins Finest says:
February 6, 2015 at 5:28 am
The recent comment from Paul Murray about working with Celtic to repair Scottish Football is probably the biggest indication so far that the people who want to take control at Ibrox actually do see themselves as the saviours of the game here. They have no sense of reality.
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The 55% to Rangers, 45% to Celtic comment from King the other day was breathtaking not only its arrogance, but also in its lack of media comment. Big clubs will always win more in any country but there is certainly no entitlement to win anything. Looking back to the 70’s and 80’s we see a Rangers, living within its means, not winning the league for several seasons. Between season 1978-79 and 1985-86, Celtic won 4 titles, Aberdeen won 3, and Dundee Utd won 1. King is old enough to know about that, and should also be sensible enough to know history did not start when the Bank of Scotland inexplicably chose to finance Rangers way beyond their means. The 55%-45% comment suggests King sees a natural order that must be restored by false means.
For this observer I’ve enjoyed life with no Rangers in the top league. Easy for me to say because my team has won it every season but I see much to like around me. Highlights have to be the resurgence of Aberdeen and Dundee Utd. 40K Aberdeen fans at the league cup final and over 50K fans at an excellent Scottish cup final between Dundee Utd and St Johnstone. Crowds for both clubs are up and Hearts are also thriving under proper stewardship. Several clubs have got their financial houses in order, many by sensible investment from wealthy fans for the very right reasons, not just to push the clubs to an unsustainable position at some point down the line.
What’s not to like?
The KMcD interview – he comes across to me as an honest man in an untenable position. Most managers seem to be able to bluff, misdirect and change the subject and revert to clichés to close down awkward questions – and as we know, the Scottish press as a rule aid this by avoiding posing any difficult or insightful queries. But even they couldn’t miss such an open goal. Whatever salary KMcD is on, I wouldn’t swap places with him.
Smugas says:
February 6, 2015 at 6:19 am
upthehoops says:
February 6, 2015 at 6:58 am
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There is a breath of freshness around in Scottish football just now. Silverware being shared around more, teams making headway financially and on the field of play. A sense of fair play and the upsurge of good talented Scottish youngsters is not just an accident. If only the Governing bodies would allow themselves to see the green shoots of a better game then we could market our product to a wider audience. We are in a far better place now than we were 3 short years ago. How much better can it get? Anybody’s guess but the change has taken place in spite of and not because of the suits. Too many people looking backwards instead of forwards.
Fisiani says:
February 6, 2015 at 6:57 am
When has Mike Ashley ever been beaten?
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Just a few weeks ago the hacks lined up to smugly tell us that the SFA better not take Ashley on as he doesn’t ever lose. Of course, at that time they foolishly believed he was going to bankroll a shot at the Champions League to promote a brand which would not be allowed under CL advertising rules anyway!
Now the same people are telling us Dave King will simply pick him off! It’s already about 4-0 to Ashley with King yet to register a shot on target. What odds on 5-0 by close of play today? I await with interest.
From Gerry McCulloch @gerrymcculloch1 on twitter. Exact date of EGM:
ASA about to confirm the advert by Celtic supporters is factually correct?
http://www.celticquicknews.co.uk/?p=16800&cpage=25#comment-2474361
Quite an outbreak of humour today among some journos. This statement o’clock thing is gettng a few up bright and early. This breakfast club idea is a great send up. You can make your own menu suggestions. I posted a few but forgot that a safe bet was, of course, ‘Ian Black Pudding’ 🙂
TSFM says:
February 6, 2015 at 10:00 am
Don’t demean I completely agree with, but let’s not lose our sense of humour entirely either. God knows it can be depressing enough talking about the SFA without adding a bit of fun. We are football fans after all, not choir boys and girls.
The gentle ribbing that we get here (mostly) really does not register when compared to that sent out live on the national broadcaster most weekends without any condemnation from the authorities.
Lets not get sucked into the mock outrage that is slowly destroying our society – maybe its just me, I mean I have to admit that as a kid I could recognise almost all brands of beer… it’s had such a terrible effect on the rest of my life….
Hmmmmm . . . . .
http://www.bbc.co.uk/news/business-31147276
Carfin,
Let’s not ride the wave too high either though. Crowds of (plucking from air) 2000 at (randomly picked) killie vs st j tells us it’s not quite right, not when set against Barry thingymibob selling 11,000 seats for a sport they can’t actually see. Now Regan and Doncaster’s view is perfectly clear. Get back to the old order. A/ that was/is physically impossible and practically impossible per the fans vote of 2012and
B/ it doesn’t fec&£;g work anyway.
Now the solution is a degree of redistribution literally of bums on seats and the money will thus follow. I’ve said before and stand by it. That is the Armageddon that Regan was referring to. Fans moving away from the old order as it gets shown up palpably not to work. The residual then gets caught in the drain sucking vortex. Armageddon was nothing to do with 42 clubs. You can argue whether it was to do with one or two (I’m not going to) it was simply referring to protection of the old order model that they so so favoured just to garner the favour of the Paul Murray’s and Dave kings of this world.
Folks, can we leave out the name calling please? I can’t believe the amount of stuff I’ve had to clear out tonight.
Please refer to individuals by their name and not by epithets designed to demean them.
This is not a place to come and make fun of ANY club. We are all fans of one club or another, and deserve some respect and a spirit of welcome.
People may have a dislike for individuals, organisations, or behaviour, but if the only way we can make a point is by playing the man, we have already lost the argument – and any credibility our own views may have.
ernie says:
February 5, 2015 at 6:22 pm
68 1 Rate This
London, Thailand, Korea? Pffft. I was in Inverurie on Sunday, the Hopeville Club to be exact. On my way out I popped my head into the bar about 30mins into the Sunday SF to check the score as one does. There was about 5 or 6 guys there, to be honest they looked a bit sad; sevco fans possibly or maybe just Sunday bored. In any event, anyone who has experienced small town Scotland can tell you, this is a vast difference from a few years ago when the place would have been teeming with glory hunters giving it laldy. This is why I believe there is light at the end of the tunnel, or hope in the Hopeville. Certainly up here in the diddy NE I think the game’s up as far the two club model goes.
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Agreed, Ernie.
I watched the first half in O’Neil’s on Back Wynd in Aberdeen. There were a couple of muted cheers when the goals went in but more people were concentrating on Sunday lunch than on the fitba.
I watched the second half in the Globe. Again, it was nowhere near full and the atmosphere was very subdued.
The only guy who was really into it was my mate who’d backed Celtic at -2.
Regardless of what happens down Edmiston Drive in the coming years the ba’s burst as far as the two club model goes.
As a Dons fan I’m obviously biased but I expect an even bigger title challenge to come from Pittodrie next season.
Just watched the Kenny McDowell video. Totally disgusted with the way the media treated him. A temporary manager,put in an invidious position by his bosses,is attacked like a wounded animal by jackals sensing the kill.Compare this to their treatment of the previous incumbent McCoist and their failure to take him on with his ‘lists of footballers who bet on games,’his dog whistling demands for tribunal members names etc.They are cowards and have no shame.They are a disgrace to their profession.
jimlarkin says:
February 6, 2015 at 9:32 am
Yes, this is going to get interesting. A recently promoted Scottish Labour MP, who has a predilection for Scotland tops, is funded by, yes, you guessed it, PWC. Embarrassing.
Edit
Should have added, MPs of any party, shouldn’t be taking money or anything else from interests groups. Am a reluctant convert to state funding.
I wonder if DK or T3B will be asking AIM to investigate the alleged leaking of commercially sensitive information from the Board of RIFC Plc to the offically recognised and elected Rangers Fan Board last night?
According to the Rangers Fan Board:
The RFB also stated yesterday:
I’m struggling to work-out what could be the difference between what was actually said and what was the spirit of what might have been said.
Either: ‘If fit the 5 players will be picked to play in every game’ or: ‘The 5 players will be picked to play in every game if fit.’
I suppose KMcD just simply misunderstood his instructions. More importantly who actually picked the 5 players. KMcD makes it clear it wasn’t him.
So who was it? That might answer a lot of questions and I fully expect our battle-fever SMSM to seek immediate answers. They might also ponder why at a critical time in the season for Rangers they take two injured players with one expected to be unfit for 3-4 weeks and one for 5 weeks.
Looks as though NUFC might be running a bit low on loan players to replace all the out-of-contract Rangers players at the end of the season. I wonder how much they will cost to replace?
Just an idea.
Could Ashley be hedging his bets by loaning TRFC these 5 players?.
If,sometime in the near future he puts the club into administration,then as the administrators will almost certainly get rid of most,if not all of the higher earners,then there will already be 5 replacements in situ.
I suppose this only works if NUFC agree to pay their wages,though.
torrejohnbhoy(@johnbhoy1958) says:
February 6, 2015 at 10:47 am
Surely an administrator would take the easy path of getting rid of all loan players first? They don’t belong to the club so spending money on them would be idiotic (haha) as there could be no return on that money. Minimal effort:gain
Smugas says:
February 6, 2015 at 9:36 am
______________________________________________
The Armageddon prediction was always nonsense, a pathetic sound bite. There was a belief the game had to have the ‘Old Firm’ in place at the top and everyone else would benefit from the scraps. Unfortunately many clubs went along with that too. In fact it was sucking the life and enthusiasm out of everyone else, but those running things just couldn’t see it that way.
With Rangers out of the top division and the doom merchants predicted financial meltdown without them. Other clubs in the SPL couldn’t survive and administration was inevitable at a number of clubs. Only Hearts went into administration and that was nothing to do with Rangers demise and everything to do with a terrible owner. A bit like Rangers, I suppose, but that’s where any comparisons stop. More clubs have gone into administration with the ‘Old firm’ in the SPL than without it. Including one half of the ‘Old Firm!’
I would welcome a Rangers in the SPL. A properly run, financially responsible version would be an asset. I would not welcome a return to the status quo. Maybe I’m naive but I don’t think that could happen. The other clubs have realised it doesn’t need to be that way. Its all good.
It’s Friday, so on a lighter note this Celtic signing passed me by. Saw this and it made me chuckle, especially the bit about signing with ‘the Celtics’. I’m going to find it very hard not to call them that from now on.
http://www.bbc.co.uk/news/uk-northern-ireland-31160187
Have just watched the Kenny McDowall interview, and have to admit, despite occasionally looking like the proverbial ‘rabbit in the headlights’ I thought he handled a very difficult situation very well. McCoist would have been threatening these newly brave reporters and looking even more useless if he’d had to field the same questions.
McDowall didn’t come across as the right man for the job, but he handled himself with dignity, more than any Rangers or TRFC manager before him, and much, much more than any of the men further up the greasy pole!
ecobhoy says:
February 6, 2015 at 10:36 am
According to the Rangers Fan Board:
Rangers Fans Board
Yesterday at 10:25
·
EGM DATE: The RFB can officially announce, as informed tonight by Derek Llambias, that the EGM is to be held on the 6th of March 2015.
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Eco – the RFB have publicly declared no confidence in the board, so why would Llammbias confide anything in them, except to mis-direct the MSM bloodhounds – especially since such an obvious leak could get him in hot water with AIM. I smell manipulation of reliably self-important, loud mouths. If the EGM announcemnet is so non-controversial – why has it not been made already? Are they waiting for the Takeover Panel to do the EGM cancelling for them, or are they waiting for the last minute so King’s lawyers cannot act until Monday?
Think I’ll change my moniker to Niccolo – Niccolo Machiavelli 🙂
Almost lunchtime and nothing on AIM.
KMcD should walk and claim constructive dismissal in my opinion.
No man deserves to be humiliated like that.
From the Daily Record
…were accused last night of riding roughshod over corporate governance again – by announcing the date of their extraordinary general meeting to their official fan board.
Chief executive Derek Llambias confirmed the date, March 6, in an email to supporters, astonishing even the fan representatives, who reckon the Stock Exchange should have been told first.
A fan board statement said: “The RFB can officially announce, as informed tonight by Derek Llambias, that the egm is to be held on March 6 2015.”
The announcement was expected to be made official this morning – but has yet to materialise.
The latest gaffe comes hours after the board were forced to take down a statement from the official website on the directorship status of Llambias.
Rangers claimed Llambias was not Mike Ashley’s nominee on the board.
However, that directly contradicted an official announcement made to the Stock Exchange on November 3 which read: “Llambias was nominated as a director of its choice by MASH Holdings Limited.”
The statement first published on Wednesday had disappeared yesterday and Union of Fans spokesman Chris Graham reckons it’s another illustration of the chaos at boardroom level.
He said: “If they had a nomad in there who was doing their job properly these directors would have been hauled over the coals so many times.
“It seems no one at Rangers has any interest in enforcing corporate governance.
“The date of the general meeting has clearly been announced ahead of time, when it should have gone to the Stock Exchange first.
“It comes just hours after the board hauled a statement down from their official website they realised shouldn’t have been there.”
Rangers nomad Paul Shackleton was unavailable for comment last night.
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Picked this up on another site, so not certain it has appeared in the DR, but…
It tends to suggest those running RIFC/TRFC are, at the very least, incompetent. Common sense says this is not so as Llambias and Leach have both been involved with highly successful companies, and Mike Ashley is definitely very competent. Why would such experienced men continue to make these gaffes at Ibrox? Wouldn’t be a part of the overall plan, would it?
incredibleadamspark says:
February 6, 2015 at 11:01 am
8 2 Rate This
It’s Friday, so on a lighter note this Celtic signing passed me by. Saw this and it made me chuckle, especially the bit about signing with ‘the Celtics’. I’m going to find it very hard not to call them that from now on.
http://www.bbc.co.uk/news/uk-northern-ireland-31160187
******
This is a microcosm of what some have pointed out regarding the MSM nonsense about the global “OF” (sic) brand. A Catholic priest with an Irish name in New York who’s never heard of Celtic? I would wager that 20-30 years ago that would have been unheard of, but now that the EPL juggernaut is the only show in town? With each passing year, the diaspora becomes ever further away.
mcfc says:
February 6, 2015 at 11:29 am
Think I’ll change my moniker to Niccolo – Niccolo Machiavelli 🙂
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Try Machiavelli City FC – no need to change your monicker then 😉
Allyjambo says:
February 6, 2015 at 11:46 am
Try Machiavelli City FC – no need to change your monicker then 😉
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I like that – consider it done 🙂
Lunch will be al fresco panini with a nice Chianti and the sun on my back.
Whatever happened to KJ`s Klaxon call at 7am ?
Seems it wasn’t just the fans who were misinformed.
Can’t find that story in th DR though.
oddjob says:
February 6, 2015 at 12:07 pm
“keith jackson
@tedermeatballs
@TheGers24 apologies to all. But in my defence it is THIS board we’re dealing with. Incompetence makes them unpredictable.”
Scapaflow @ 12.11 pm
Thanks Scapa,
I didn’t see that.
However, it seems he was in receipt of some information, from someone, somewhere…………I feel a song coming on!!
scapaflow
Unlike certain SMSM ‘journalists’ whose incompetence makes them tiresomely predictable.
The Kilmarnock Standard has a piece this week on businesses owned by MA. His USC company was put into receivership & as part of this closed a local depot with staff allegedly not receiving their due payments. Zero hours contracts will not have helped. Another of MAs companies (Republic) bought the assets of USC.
A local-ish MP is attempting some investigation, incidentally who IIRC happens to be the same one who tried to get MA to answer to parliament about his TRFC / RIFC dealings.
TRFC fans & the SFA should again have pause to consider MAs business practices and his strategies to maximise profit / minimise losses.
Meanwhile, corporate governance of all kinds has been reported missing in UK PLC. Anyone seeing it should probably consider it dangerous and probably leave well alone.
“We’re all doomed, I tell ye, Doomed!”
Mugged Off
Do you think Llambias’ and Ashley’s obvious comtempt for the MSM lamb-hounds could extend to enjoyment at playing them for mugs?
That way if they ever do stumble onto a good story, it will be discounted as their usual mince by anyone with a brain?
mcfc says:
February 6, 2015 at 12:40 pm
Cock up is more likely
A Friday thought….
Everyone is getting worked up about the prospect of the Magpie Five impacting positively on TRFC’s propects of promotion. But what if…?
What if this is MA taking the p*ss and these are just :
– high wage earning peripheral players
– due to be punted by NUFC at the end of the season
– have really bad attitudes
– have turned out to be complete dumplings (even worse than some existing TRFC players)
– a bunch of crocks (two are crocked now!)
– a way of subsidising NUFC by a diddy club
Whether or not the above is even remotely true what happens when some of them start making honest mistakes – missing sitters, own goals, getting sent off etc.
Nobody else seemed remotely interested in taking them on loan. It was all very last minute.
What then happens when TRFC start falling down the league – far enough down to be threatened with relegation (for the first time!) if a points deduction is made for an insolvency event?
Oh my!
Scottish Football needs a strong Arbroath.
–
mcfc says:
February 5, 2015 at 6:15 pm
Shame no-one asked if Ashley was behind this – I’m sure Kenny would have spilled the beans.
_______________________________________________
Someone did ask him, think it was Raman.
He answered “You’d need to ask Mr Easdale and Lambias that, I just do what they tell me”
Since Ashley is an outsider and not a RRM I guess the Scottish hacks have no problem asking something which might make him look bad.
redlichtie says:
February 6, 2015 at 1:06 pm
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So, which five are going to have to adjust to which five?
Will the lump it and hopers switch to tiki taka or will the tiki takas switch to lump it and hope ?
Some inspirational, motivational coaching needed there then – what can possibly go wrong?