A Guest Blog for TSFM by beatipacificiscotia
As a child I read a poem by John Godfrey Saxe, “The Blind Men and the Elephant”, and stumbled upon it again recently. It is a simple tale of how six blind men encounter an Elephant and attempt to describe the animal:
It was six men of Indostan
To learning much inclined,
Who went to see the Elephant
(Though all of them were blind),
That each by observation
Might satisfy his mind.
The First approached the Elephant,
And happening to fall
Against his broad and sturdy side,
At once began to bawl:
“God bless me! but the Elephant
Is very like a WALL!”
You get the idea. The other blind men did little better. The second grabbed the tusk and thought the elephant like a spear. Others thought the elephant like a snake (the trunk), a tree (the leg), a fan (the ear), and finally a rope (the tail). What does this have to do with this blog? Let me explain.
There is a danger of all of us, whether consciously or unconsciously, making the same mistake as these blind gentleman. It is too easy to use the parts of the argument that fit our values and belief system, at the expense of the whole truth. The 13th century Jaina scholar, Mallisena, described a much earlier version of the same tale as a parable to argue that people deny various aspects of truth; deluded by the aspects they do understand, they deny the aspects they don’t understand. He said:
“Due to extreme delusion produced on account of a partial viewpoint, the immature deny one aspect and try to establish another. This is the maxim of the blind (men) and the elephant.”
I am incapable of putting it any better than that, though I would go further. I argue that people are deluded by the aspects that they choose to understand, and deny the aspects that they refuse to understand. Which leads me to my tale …..
I have recently read a news report about a decision taken by the Advertising Standards Authority on advertising activities of The Rangers Football Club Ltd and their claims to history and honours. It includes the following quote referring to advice from the SFA:
“We also consulted with the SFA, which confirmed that its definition of a football ‘club’ varied depending on context, and could sometimes refer to an entity separate from the club’s corporate owner.”
I was most unhappy to read this part of the statement. I am yet to see the definition or statement of when you could “sometimes refer to an entity separate from the club’s corporate owner”. This is a contradiction to the definition of a football club given by FIFA; a definition which is handed down to the Confederations, and from Confederations to Associations.
You may or may not be aware, the application of good governance in football is administered through club licensing. This annual process ensures that minimum standards are maintained, to promote growth and development, and ultimately protects all of football – every club, every player and staff member, the integrity of every competition, suppliers of goods and services, the reputation of sponsors, and most of all the fans. FIFA Club Licensing Regulations state that a license applicant must be a football club, defined as:
“Legal entity fully and solely responsible for the football team participating in national and international club competitions that applies for a licence.”
This is a clear and unambiguous definition, which is being ignored by the SFA. Why is this issue so important? Simply, a football club must be held responsible for its commercial activities. For example, an over-ambitious and over-spending Rangers changed the Scottish football landscape forever. Other clubs tried to compete in an unsustainable “Cold War”-like football arms race. I believe Scottish football was damaged. Many clubs have been taken to the brink of death. This could happen in any country, in any league, anywhere in the world. For that reason, a football club and its corporate body must be one and the same, living or dying, inseparably intertwined. The separation of club and company is a myth, a myth dangerous to good governance. Rangers (1872-2012) should be a cautionary tale told to every club owner.
There are many benefits to club licensing. These including minimum standards for stadia and infrastructure, youth development programs, and much more. I would heartily recommend that you read the FIFA document if you have the time. It gave birth to the word and spirit of Financial Fair Play. Look at some of the financial benefits detailed:
10.3 Benefits
Implementation of the financial criteria will help deliver both short and long-term improvements for clubs, the licensors and the football family in general. For the football family in general, the financial criteria should help to:
• safeguard the continuity and integrity of competitions;
• increase the transparency and credibility of clubs’ financial operations;
• improve confidence in the probity of the football industry;
• create a more attractive market for the game’s commercial partners and investors; and
• provide the basis for fair competition, because competition is not just about the teams on the pitch.
For the licensors, the financial criteria should help to:
• improve their understanding of the financial position and prospects of their member clubs;
• encourage clubs to settle liabilities to creditors on a timely basis;
• enhance transparency in the money flow of clubs;
• enhance their ability to be proactive in assisting clubs with financial issues; and
• provide a starting point for club benchmarking at a national level for those licensors and clubs who want to develop this aspect.
For the clubs, the financial criteria should help to:
• improve the standards and quality of financial management and planning activities;
• enable better management decision-making;
• enhance clubs’ financial and business credibility with stakeholders;
• improve financial stability; and
• enhance revenue-generating ability and cost management.
Important words, and I trust the value and opportunity these regulations offer are now clear. Note bullet points 3 and 4, and that our top league currently does not have a sponsor. The SFA must ensure the integrity of competitions, discourage financial recklessness, and protect football for everyone. This is only possible with a clear, unambiguous statement that confirms club / company are one and the same thing.
To suggest a football club can in some way survive liquidation is to undermine the definition of what is a football club, one of the cornerstones of FIFA Club Licensing Regulations. For the SFA to suggest a football club can in some way survive liquidation, or allow this belief to go unchallenged, is a shameful dereliction of duty. It puts all of football in danger. We cannot allow this. There is too much at stake.
The poem ends thus:
And so these men of Indostan
Disputed loud and long,
Each in his own opinion
Exceeding stiff and strong,
Though each was partly in the right,
And all were in the wrong!
The blind men were each partially right, though in their vanity / stubbornness / ignorance they failed to find the truth. There is a lesson for us all in this story. This may appear to be an attempt to renew the old club / new club debate. It is not. To see this as an opportunity to score points against Rangers fans is to completely miss the point – you have failed to find the truth.
This is global issue affecting one of the fundamentals of good governance. Good governance must be the beating heart of our game – ensuring good health and long life. I am looking at the here and now, and ahead into the future.
We must protect and promote ALL of the FIFA Club Licensing Regulations. To deny any part is to refuse to see the whole elephant, like the foolish blind men.
Resin_lab_dog says:
February 1, 2014 at 6:43 pm
++++++++++++++++++++++++++++++++
Respect for confronting unacceptable behaviour.
Castofthousands at 10.09pm:
Picking up on an earlier architectural theme ( a lighthearted distraction). There is an excellent facade outside Govan Shipyard incorporating an entrance flanked by full size sandstone sculptures of shipyard artisans. It would be nice to think that such memorabilia could be retained for posterity but I suspect difficult decisions would have to be made if ever such sites were to be redeveloped.
____________________
That’s the entrance to the Fairfield Shipyard Offices, now happily saved by a £6million refurbishment led by Govan Workspace and about to be leased as office space.
http://www.fairfieldgovan.co.uk/
ecobhoy says:
February 2, 2014 at 11:16 pm
‘….. and a lot of stewards, in my general experience, tend towards being chocolate fireguards with an amazing ability to always be looking the other way when trouble is brewing.’
—————–
That is very true.
I have occasionally wondered what exactly were the changes in society which allowed the police to change their former view that huge crowds of excitable football supporters required numbers of constables ( sometimes with squadrons of cavalry ), to be present WITHIN football grounds at many matches.
Did the sociologists persuade them that all-seater stadia would turn thugs into gentlefolk?
I certainly don’t blame any of the sometimes very un-martial looking stewards for staying clear of any trouble.
I do think the Minister for Justice and the Chief Constable should maybe re-visit the whole question of how big crowds in all-seater stadia should be policed.
And I would suggest-more visibly!
So we have the tribute act on its knees and only one newspaper willing to put their head above the parapet and run with a story which has been bubbling under for a couple of weeks. IA is to have his day in court as has the bold Mr Whyte. The AIM are now to investigate goings on which would seem a tad late as the main protagonists have left the building with their share of the loot. I would suggest from what has been discovered, that the main body who are hoping it all fades away quietly, are the blazers in the SFA. They have been complicit in this farce from day one
Re the claims and counter-claims of Rangers surviving until the end of February 2014 , seems to me there are two pertinent facts.
1. No-one other than the team of Accountants know the true financial picture
2. The timing of such demises are rarely predicted , although it is clear someone is blabbing after the liqueurs.
I think the Rangers fans can look forward to a doubling of season ticket books , and another share scheme ….
Still, the Rangers organisation may be truely dysfunctional and they are indeed closer to running out of cash than they are letting on.
Who knows , 50 / 50 in my book.
EKBhoy says:
February 3, 2014 at 5:47 am
Re the claims and counter-claims of Rangers surviving until the end of February 2014 , seems to me there are two pertinent facts.
1. No-one other than the team of Accountants know the true financial picture
====================================
Forgive my paranoia, but if the financial picture is really bad, then I believe the SFA & SPFL will already be fully aware.
john clarke says:
February 3, 2014 at 12:20 am
I do think the Minister for Justice and the Chief Constable should maybe re-visit the whole question of how big crowds in all-seater stadia should be policed.
And I would suggest-more visibly!
==========================================
The weekend’s events have led me to wonder yet again what the role of the police is and when the O.B act is applied. The Police statement of ‘no complaint has been made’ – they arrest people at games for singing certain songs when no complaint has been made. Does that mean throwing missiles at games is permissible providing no-one complains? Likewise a vigorous pursuit took place to find the seat wreckers at Fir Park. If there is no similar pursuit from the weekend then the Police have some explaining to do.
Nuclear Sheep says:
February 2, 2014 at 11:33 pm
As a follower of Aberdeen, and occasional supporter, I may have made the effort to travel the 291 miles to Ibrox, should that be the chosen venue. Unfortunately, after nearly 28 years, of fabricated football, the thought of entering the ‘Big Hoose’ makes me feel physically sick.
The choice of venue for the final should also consider the necessity of electricity.
……………………………………………………….
It has been rumoured that because of the run down state of Ibrox if it is the chosen venue the SFA and owners of the stadium are hoping the Aberdeen and ICT fans cause tens of thousnads of pounds worth of improvements 😀
Quarter Season Tickets Rangers FC – Official Site 09:50
http://www.newsnow.co.uk/h/Sport/Football/Scottish+League+One/Rangers
Now that sounds pretty desperate to get cash in asap – surely with the quality of football on show they’ll be queuing to the edge of G51 to pay at the gate to see the glorious promotion run-in.
But at the same time, it is reassuring that Admin is out of the question – because you wouldn’t be selling tickets to the end of the season if you expected to go bust long before then – Feb seems to be a popular opinion at the moment.
Now that the semi-finals are out of the way (and congratulations to all 4 teams for giving us one helluva cup weekend) I am going to ask the question – why is it that there is no “footballing” penalty in the cup competitions for clubs that are still undergoing insolvency processes?
I have previously suggested that the reason for a points penalty in the leagues is not a punishment just for going bust but rather because going bust is seen (a bit simplistically) as having been likely to give an advantage on the pitch (having players you can’t afford).
I also suggested that if you undergo an insolvency event, you should not be eligible for promotion that season. Seems to me that if there is a perceived advantage on the pitch during league games then that advantage will also be available during cup games.
I can accept that this season Hearts are playing with a squad that is down to the (relatively) bare bones as a consequence of the ongoing administration and that that has adversely affected their chances in cup games – but the same is true in the league and they have a 15 point penalty to contend with in the league – they do not have such a handicap in the cup.
Maybe the answer is that it is just too difficult to penalise in cup competitions – perhaps the only sanction is not to let them compete at all – but that would be a further loss of income for a company that is already distressed.
Anyway – delighted for Aberdeen and ICT and gutted for St Johnstone and (despite what I say above) especially gutted for Hearts in the way that they lost. I hope the final is every bit as good as the one last year. 😛
m.c.f.c. says:
February 3, 2014 at 10:10 am
___________
From the sales blurb:
“Valid from Rangers v Stenhousemuir on Saturday 22 February quarter season tickets are the best way to make sure you don’t miss any of the action from now until the end of the season.”
They missed out this bit 🙄
“Because, if you don’t ante up, there won’t be any action from now until…”
Campbellsmoney says:
February 3, 2014 at 10:17 am
Anyway – delighted for Aberdeen and ICT and gutted for St Johnstone and (despite what I say above) especially gutted for Hearts in the way that they lost. I hope the final is every bit as good as the one last year.
——
A greatly entertaining weekend of semis – unfortunate for St J that they caught an Aberdeen team on a mission, and a bit bewildering why Hearts continued with a back-four against nine men.
Now, when’s the draw for the Final? I hope we manage to avoid the Old Firm.
OT slightly, but showing the bias of papers in other countries
Mundo Deportivo (Barcelona based) are saying there is a case for Ronaldo getting a 14 match ban for assault after last night’s sending off.
The wise money (Black’s) is on the red getting rescinded.
Angus1983 says:
February 3, 2014 at 10:41 am
Old Firm? That’s so 2012!!
The demise of Rangers has been great for the League Cup; for the third year in a row we’ll have a different winner that doesn’t come from Glasgow and it’s refreshing for the game.
Looking forward to this season’s final, just a pity that Caley will be missing some of their key players due to those ridiculous red cards yesterday.
Strange happenings at Footballtaxzones yesterday with a Blog up announcing: ‘There is no Blast Zone on Westhorn Land’
Just as quickly it was removed which didn’t surprise me in view of the gibberish it contained – I can only imagine the PR Controller blew a fuse 😳 However – Google Cache really is a wonderful tool
The disappearing blog had little logic and was choc-full or errors of fact and extremely faulty reasoning. And all this from the guy lauded by the Bears as their No 1 ‘Dodgy-deal Land Expert’. My first instinct was to ignore it but having slept on it I think it really does deserves to be put on the Public Record as a fine example of the dark places an obsession can take you to.
As usual the writer is falsely arguing that corruption existed at the heart of the Westthorn land sale involving Glasgow Council and Celtic. He argues the reduced price explained by extensive abnormal ground conditions is a fraud because the Westthorn ground is stable.
To this end he has become fixated on proving the site isn’t contaminated which he believes would prove his corruption allegation against Ridd Squerr. However let’s destabilise the latest mix of fantasy and an obsessive agenda to damage Celtic.
The Bear Land ‘Expert’ has finally caught-up with my first Westthorn post by stating an 1882 map shows two ‘reservoir ponds’ on the site. Some ‘pond’ as each held 4 million gallons of water. He adds: ‘Westhorn only includes where the reservoir was and that would be stable land. Oh does water contaminate the land?.’
Actually water is a major major factor in creating some abnormal ground conditions and can be a significant danger to stability where there are old mine workings – I thought land ‘experts’ might have known that.
The reservoir problem, previously detailed by me, is the possibility they were in-filled with rubbish in the 1930s. Whatever ‘fill’ was used could create a ‘made-up land’ issue and site test bores reveal evidence of that. There was also a vast array of underground pipework (some 42 inch in diameter) connected to the reservoirs – which supplied East End industrial premises with water – fed from the Westthorn Clyde pumping station.
The major ground stability problem at Westthorn are the four deep coal mine shafts and the existance of abandoned and largely uncharted underground workings which were intensively worked from approximately 1750 to 1850 according to my research. This inconvenient fact is ignored by the Blue Camp because it blows their case out of the water.
Another major difficulty with Westthorn is the Blast Zone on the site’s eastern side adjacent to 19 buildings holding 400,000 casks of maturing spirits. Health & Safety Executive Regulations prohibit/control residential house building in Blast Zones and this has effectively halved the available housing land and destroyed the fraud calculations of the Bear Land ‘Experts’.
But perhaps the craziest claim in yesterday’s disappeared Footbaltaxhavens blog is wrt the Blast Zone which the Bear Land ‘Expert’ claims is centred on the land to the west of Westthorn where the Commonwealth Games Village has been built and which was shown as a brickwork in his old map – perhaps it’s time he got an up-to-date one showing the whisky and spirit storage on the opposite side of the site.
The removed post states: Only a Reservoir on Westhorn Land and points out Mauldslie Brickworks beside the newly-built athletes village is to the west of Westhorn with the old Belvidere Hospital site – now in-between the two. He mystifyingly adds:
What can I say – this guy is obviously having problems and I would suggest he lies down in a darkened room for a few days – appropriately sedated – and doesn’t touch a computer until he is able to recognise the danger in an obsession if it has gripped you to the extent that you lose touch with reality and can no longer differentiate between fact, fiction and lies.
NB: Mauldslie Brickworks was certainly closed by 1933 when Riverside Secondary was built on the cleared site. The school was subsequently demolished because it suffered subsidence from old mine workings which the whole area – including Westthorn – is honeycombed with.
Why in 2014 the brickworks could pose a Blast Zone danger remains a total mystery to me but possibly because that theory apparently only resides in the head of Bear Land ‘Expert’ No 1. Goodness only knows what the European Commission makes of it all 😆
From a statement issued by BDO today:
“The administrator of UBIG has confirmed they will transfer for an undisclosed sum their 78.97% shareholding in Heart of Midlothian FC to BIDCO to enable the CVA to conclude.
This means that transfer of the club to BIDCO can now go ahead with a timescale of eight to ten weeks for completion of the sale and purchase agreement subject to the deal being ratified through the Lithuanian courts and/or creditors.
Since the CVA was agreed on the 29th November BDO LLP has been liaising extensively with the Lithuanian administrators and these negotiations have now reached a successful conclusion.
Bryan Jackson, joint administrator of Hearts and a business restructuring partner with BDO, explained:
“This is welcome news for the club as it means that the transfer of ownership can go ahead. While there remain some technical issues to resolve the process is now gaining some momentum.” ”
Kind of makes up for yesterday’s disappointment, and then some.
Obviously there’s still a long way to go, and no guarantees, but undoubted progress. The next two months are going to be very long for us Hearts supporters, but gradually we are getting more cause for optimism.
I know the subject’s been deemed to have run its course here, but perusal of comments from people who were at Saturday’s game may be of interest – given the nonsense spouted by Mr Young and his MSM chums which is precisely the sort of thing we’re supposed to be debunking …
http://boards.footymad.net/forum.php?tno=4&fid=27&sty=2&act=1&mid=2111588986
£85 for a quarter season ticket.
6 home games left and the team miles out in front.I don’t think there’ll be a great take up of this offer.
If admin comes and they’re deducted 25 points however,that’s a different ball game.
Tic 6709 on February 2, 2014 at 10:58 pm
Is it not common practice to address dilapidations issues before any lease is drawn up, the solicitor for the tenant is duty bound to stop you buying a pig in a poke, unless you want/have to.
No doubt that’s a situation the spivs may also be looking to exploit. More fees for factored maintenance or passing the repairs to the tenant, who is desperate to keep their big Hoose and will sign up to anything resembling a victory.
Did the bear survey uncover any leprechaun’s haunting the place 😀 .
54 psychic predictions to 0 maintenance budget. Copyright acknowledged.
Some Hard Details
Phil’s latest blog contains some very specific and serious assertions – which on past form I assume are well sourced – otherwise he’d be blowing many months of hard won credibility.
If they are anywhere near true, then The Rangers are in deep, deep, trouble TODAY.
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/
Calling all sugar daddies, Calling all sugar daddies.
Calling all Rangers Men, Calling all Rangers Men.
@ torrejohnbhoy
In the extremely unlikely event they sell the equivalent of 10,000 adult quarter season tickets, that will net them £850,000. Now if we ignore the VAT element (I know, they wouldn’t) that’ll possibly cover one month’s shortfall, then no more gate income! On the other hand, in the much more likely event that they sell 1,000 such tickets, they will net £85,000; possibly enough to cover what the club is due to Messrs Wallace and Nash, just before they leave a sinking ship…perhaps.
jimlarkin says:
February 3, 2014 at 12:11 pm
OK, Caley Thistle then. Happy now?
Phil just answered that one. Oh dear, how sad….
Young Bill has been posting this on twitter,surely if this is a fake Celtic must take action
http://t.co/4rwpkdVAo3
Allyjambo says:
February 3, 2014 at 12:00 pm
While there remain some technical issues to resolve the process is now gaining some momentum.”
Kind of makes up for yesterday’s disappointment, and then some.
Obviously there’s still a long way to go, and no guarantees, but undoubted progress. The next two months are going to be very long for us Hearts supporters, but gradually we are getting more cause for optimism.
____________________________________________________________________________________
That’s good news Ally.
Just read PMGB’s latest blog. Even if it’s more than a tad pessimistic, I doubt this quarter season ticket sale will provide the workforce with their redundancy money, let alone secure their future. These people and their families are going to be hurt by more than the loss of their football club. Not nice. There are a lot of guilty, rich, men out there.
Carntyne says:
February 3, 2014 at 12:33 pm
Thanks mate 🙂
Phil’s latest blog raises some very worring questions:
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/#more-4356
If a company cannot afford to pay a bill when it falls, such as a statutory redundancy payment – would that suggest that the entity is insolvent?
While Phil’s story is one point of view – surely this is more than enough for the SFA to ask questions of the club in terms of its ability to meet their obligations. That and the reported stock market investigation [The Sun on Sunday].
One would also expect the club to release a statement on both of these stories i.e. the reported investigation by the AIM and Phil’s reports that the cash available to the club is likely to be exhausted, with little or no propspect of an immediate cash injection.
Long Time Lurker says:
February 3, 2014 at 12:45 pm
Phil’s latest blog raises some very worrying questions:
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/#more-4356
__________________________________________________________
Phil’s questions don’t worry me at all… 😀
If Phils sources are solid it does look very bad. Very bad on a number of levels for a number of people in a number of organisations.
Where are the SFA in this? To loose one club is unfortunate. To loose two looks like carelessness.
chancer67 says:
February 3, 2014 at 12:30 pm
0 0 Rate This
Young Bill has been posting this on twitter,surely if this is a fake Celtic must take action
——————————–
whoops then….however, other than breaching usage/confidentiality rules…..what is funny, if you scroll down to about page 10, you can see that the Celtic PLC’s value is just slightly more than the negative Celtic FC ltd’s position
And as the PLC exist to run the entire club, then the net result is that Celtic are not in a negative situation at all.
given that we can TRUST our board not to be fleecing the club before disappearing over the horizon with their pockets bulging
Carntyne says:
February 3, 2014 at 12:52 pm
Fair point – my only worry is that the price of sports socks and jelly and ice cream are going through the roof 😆
I suspect we don’t have much longer to find out. Will it be happy valentines day? Again?
20. Angus1983 says:
February 3, 2014 at 12:01 pm
======================
I’m afraid the comments in that (no matter how much we might agree with their opinion of Chick Young) seem to be a bit of deflection. Whether or not there was exaggeration by the media or ignoring of other incidents, it is still no excuse for the idiotic behaviour of (probably a small number of) fans.
The only defence I can see is that since coins were being thrown, the perpetrators couldn’t have been true Aberdonians. 🙄
The good ship Sevco it would seem is heading for the iceberg. Quite apart from all the financial difficulties, other issues are piling up. The Stadium which even the most gullible bear will tell you is in a state of disrepair. On that point alone the SFA should be asking questions. Following the unreported evacuation of a Section of the ground a few weeks ago and the ignorance of the Governing body as to Health and Safety aspects, serious questions require answers.
Was the position of Facilities Manager ever filled? Who in the omnishambles pecking order is actually accountable for Safety issues? Is the Stadium fit for purpose ? Should the cup Semi-finals be moved elsewhere?
More importantly on the cash flow problems, is a blind eye being turned to the bleeding obvious point that bills are Not being paid. ?
Is it Deja Vous………. all over again?
Graham Wallace has found a source of finance to keep Sevco going.
He’s going sit in front of the Aberdeen fans at Celtic Park next week.
Karl Marx Predicted Downfall – No Seriously !!!
Why entrust Rangers to people who don’t share our values or dreams? GersNet 12:28
http://www.newsnow.co.uk/h/Sport/Football/Scottish+League+One/Rangers
Matteo @ 12.27
Yes, thanks.
There’s nothing wrong with using the club’s correct title or shortened name
(caley-thistle, ICT or even inverness at a push, L.o.L)
A bit like calling Sevco / The Rangers – Rangers*
Commonwealth Games rescheduling
If/when TRFC/RIFC implode – what does that mean for the Commonwealth Games. Not an entirely academic question because I have tickets for Hampden events and don’t want to get bumped because Ibrox is padlocked and things are rescheduled.
Wonder if the organizing committee (Glasgow 2014 Ltd) are on top of this?
Interesting weekend in Scottish football.
Firstly, we see two Northern teams make it into the league cup final, once again ridiculing the armageddon claims levied recently.
Secondly, the SMSM again make a fool of themselves by jumping all over a story with erroneous claims of sectarian induced violent behaviour which were refuted by the victim in what is IMHO a very well worded and delivered statement. Having been in NL’s company a number of times and seen him about the West End with his family, I have always found him to be quite reserved socially, a good family man and one of the more pleasant managers I have had the opportunity to interact with.
Thirdly, Doncaster apologies to NL, however, makes no apology to the Aberdeen staff member who was actually hit by the coin!
Finally the Sun article (with strong back up from two of Phil’s pieces – I won’t mention his Millwallesque moment). They may sensationalise and are often spare with veracity but rarely do they run a story like this without at least one more to back it up.
If they make it to season end, they will just have bought some time but with no real chance of going much further without a dramatic restructuring of the entire operation.
m.c.f.c. says:
February 3, 2014 at 1:32 pm
0 0 Rate This
Karl Marx Predicted Downfall – No Seriously !!!
Why entrust Rangers to people who don’t share our values or dreams? GersNet 12:28
http://www.newsnow.co.uk/h/Sport/Football/Scottish+League+One/Rangers
Thanks for the link, mcfc.
I’m posting the text, just because it’s such a refreshing change from the usual rubbish on the Sevco forums. Is there a tiny glimmer of light flickering in Govan? This guy actually seems to get it.
Written by amms
Rolling Stone magazine has an article this week entitled “Marx Was Right: Five Surprising Ways Karl Marx Predicted 2014”. Being an American magazine Rolling Stone is taking a risk with this because for many in America being labeled a Marxist is career suicide, the phrase is so loaded as to be used purely as an insult now.
Yet the article points out that for many people capitalism doesn’t work very well and one of the ‘people’ it doesn’t work for is us, the Rangers support.
The opposition to ‘fan ownership’ puzzles me. I suppose for those under 30 brought up on a diet of Sir David’s largesse, of the rise of the mega-clubs like Man Utd, Barca, Real Madrid and now Chelsea, Man city and PSG and the creation of the G14 organisation then money is everything, only those with the deepest pockets can succeed. That’s how football works, isn’t it?
But I’m 43, I watched clubs like Nottingham Forest, Malmo, Red Star Belgrade and Brugge contest the European Cup Final, I know that football isn’t all about money and the club with the most money doesn’t have to always win.
Football has changed though, and today the club with the most money usually does win, in every league we’re now seeing that. TV rights, sponsorship, endorsements and countless other ‘income streams’ help fuel this. Add in megalomaniacs from Russia or Malaysia or much nearer to home and the clubs run with some sort of fiscal responsibility are left behind, derided even.
But here’s the thing, it’s unsustainable, Marx predicted this and he was right. All of these business bubbles burst eventually and this one will too. They are “chaotic by nature” and one which is as unrestricted as football currently is will crash and burn eventually, nothing is surer.
Have a look at some of the ticket prices being charged in the EPL this season. Have a look at the debt being carried by football clubs all around Europe. Tell me that’s sustainable, tell me that someone bigger will come along and pick up the cheque. Yeah right, go read an economics book or two. We’re the guys who’ll be picking up the ‘cheque’.
I’m not a Marxist. Professionally, when I’m not wasting my time on football forums I help grow those capitalist bubbles and i’ve seen a few of them get too big and go pop now. Too many of us judge ‘success’ on how much profit a company makes, not on how good its product or services are, how well it treats its employees and customers and how well it’s prepared for the future. Time and again we fall for this, short term gain over long term stability seems to be what we desire.
So look at football clubs. History tells us they can disappear, no matter how unlikely that might seem, they can and do. It happens when people no longer care about them, so it is in the interests of all football clubs to ensure people keep caring. The best way to ensure that is to involve people in them. If football supporters become nothing more than ‘customers’ then eventually we’ll start to behave like customers. As anathema as this might sound it is starting to happen now. Already English sides (and they and the already bankrupt Spanish sides are the driving force behind this) are seeing more and more of their tickets being sold to ‘football tourists’ rather than supporters. London clubs in particular are seeing this phenomenon but it is also happening in Manchester too. That’s helping to drive the price of tickets up and force ‘supporters’ out.
That the concept of fan involvement seems alien to us is puzzling to me. But then how many of us are actually involved in anything outside of our work or family these days? How many of us are on the PTA of their children’s school, how many of us are involved in youth organisations on a voluntary basis, how many of are in trade unions or are members of political parties or help out at the local bowling club? Tell you what I bet it’s a hell of a lot fewer than did in the 70s and 80s.
The whole concept of taking responsibility for our community assets has been diluted now. My father was born in an Ayrshire mining village which consisted of three rows of houses, it was tiny. Yet it had a Junior football team an amateur football team, three Friendly Societies, a quoiting club, an ambulance corps, a juvenile football club, a brass band, a dramatic society, and a phonetics class.
Today, in the Glasgow area I live in my daughter’s Brownie group can’t find enough volunteers to staff their troop. Don’t get me wrong there’s no shortage of parents who want their daughters to join, just a shortage of parents who are willing to give up any of their time to help out.
This is the same. Too many of us want someone else to run Rangers. Too many of us want someone else to carry that burden, hopefully someone very rich too. We can blame factionalism in our support, unhappiness with how the RST has been run, personalities involved in various groups or find reasons to explain how fan ownership can’t work. But then we can’t complain when things go to hell. Can we really complain about the people running our club if we aren’t willing to do it ourselves?
How do we judge success? What do we want from Rangers? Do we care what the share price is?
The football bubble will burst, nothing is surer, economics tell us this if we care to look. When it does there will be casualties, the clubs who are stable both fiscally and politically will be the most likely to survive that. So I’d argue it is in our best long term interests to own our club, to have a say in how it is run, to be keeping a watchful eye on things. Remember, no one else cares, nobody else gives a damn about our club, only us. Why entrust it to people who don’t share our values or dreams?
SPFL licensing/membership thingymajig
I thought there was an annual review/application for the SPFL license to be renewed. Clubs had to apply by the 30th March (premiership) or 30th april (lower leagues) to participate in the following years league competition
Does anyone know what this actually involves? Will TRFC Ltd have to provide details on bank balance, projected income, projected outgoings – i guess it will HAVE to include the audited year end accounts and the unaudited interim statement. But how grounded in reality does this need to be? Can they just get the fag packet out?
Does it address ground safety issues – is safety cert renewed annually?
I haven’t seen anything to address the £14.5M annual losses and the IPO cash is now gone.
is it plausible that they will be refused a license for next season (assuming they survive that long)
Campbellsmoney says: February 3, 2014 at 10:17 am
Now that the semi-finals are out of the way (and congratulations to all 4 teams for giving us one helluva cup weekend) I am going to ask the question – why is it that there is no “footballing” penalty in the cup competitions for clubs that are still undergoing insolvency processes?
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The “footballing penalty” of a registration embargo did impact on Hearts in cup and league. The SPFL embargo remains in place while the SFA embargo expired on Saturday.
I’m pleased to see that you are questioning the sanctions against insolvent clubs though. Having seen how it has affected Hearts I don’t feel that the existing sanctions give a consistent affect. i.e. the length of an administration process determines the duration of the sanction. A quick clean administration process would see you out within 3 months, while the latest indications are that Hearts’ may last 10 months.
It might be better to specify such an embargo as being of one or two windows duration rather an an indeterminate duration. Alternatively just put in a “relegation” instead of the combined 15 points plus registration embargo.
I would have been content had Hearts had been relegated during the last close season. That way the administrators would have been free to rebuild the club in the “Championship”, based on current income, from last August, rather than being forced wait until next August for the new owners to start the process. Ultimately, that is not in the interests of the creditors.
neepheid says:
February 3, 2014 at 1:44 pm
m.c.f.c. says:
February 3, 2014 at 1:32 pm
Karl Marx Predicted Downfall – No Seriously !!!
Why entrust Rangers to people who don’t share our values or dreams? GersNet 12:28
http://www.newsnow.co.uk/h/Sport/Football/Scottish+League+One/Rangers
Thanks for the link, mcfc.
I’m posting the text, just because it’s such a refreshing change from the usual rubbish on the Sevco forums. Is there a tiny glimmer of light flickering in Govan? This guy actually seems to get it.
=======================================
I hope so. But the pessimist in me makes me wonder if it’s a Timposter 😕
readcelt says:
February 3, 2014 at 12:59 pm
If Phils sources are solid it does look very bad. Very bad on a number of levels for a number of people in a number of organisations.
Where are the SFA in this? To loose one club is unfortunate. To loose two looks like carelessness.
……………………………………………………………
The only thing I would add at this point…the last time we saw a similar scenario developing…when Phil had it on good authority was under CW’s watch when he stated….and he was eventually proven correct…that in October 2011 I think it was…the liquidated club only had £200k left in the bank….what he didn’t know at the time…CW was using VAT money to continue trading….and therefore his claims became questionable as they continued to trade through November…December and January…
So I would say that on the face of it…Phil appears to have solid confirmation of what he is stating….however as will always be the case…ordinary people think along ordinary lines…spivs on the other hand…
I still have a gut feeling about this…that Phil has been given just enough honest information to allow him to make the claims he does…however we need to think like a spiv to consider what if anything else might factor into play this time round?
neepheid says:
February 3, 2014 at 1:44 pm
10 0 Rate This
m.c.f.c. says:
February 3, 2014 at 1:32 pm
0 0 Rate This
Karl Marx Predicted Downfall – No Seriously !!!
Why entrust Rangers to people who don’t share our values or dreams? GersNet 12:28
http://www.newsnow.co.uk/h/Sport/Football/Scottish+League+One/Rangers
Thanks for the link, mcfc.
=============================
What date was this written?
Is this poor guy writing about Sevco or the previous tenants of ibroke-s ?
He should be given credit though, for “seeing the wood”.
Phil Mac website is down at the moment (funny enough)
Have not read his blog has anyone got a copy that they could post up please
Carntyne says:
February 3, 2014 at 12:52 pm
29 0 Rate This
Long Time Lurker says:
February 3, 2014 at 12:45 pm
Phil’s latest blog raises some very worrying questions:
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/#more-4356
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Phil’s questions don’t worry me at all…
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Why are the peepil who run the AIM – not issuing a statement ?
PaulMac2
“I still have a gut feeling about this…that Phil has been given just enough honest information to allow him to make the claims he does…however we need to think like a spiv to consider what if anything else might factor into play this time round?”
————————-
Without going all Ipcris File I would also recommend looking at the situation from the perspective of someone in the background who wanted TRFC debt free and, at worst, in the 1st div. Wonder if the chapter marked assets in the original agreement needs a bit of editing though?
Phils site experiencing some issues just now, here is the text, but please try the link 1st
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/
Sevco on borrowed time
Sevco need money.
The only question this week on Planet Fitba is this: who will lend money to the Ibrox outfit?
Recently, the Rangers International Football Club CEO and his colleagues were in City of London asking some serious guys for serious cash to keep their loss making subsidiary HMS Sevco afloat.
I have in my possession the names of the five companies that they approached last month in the City of London.
However, Graham Wallace and Philip Nash left the Square Mile empty handed.
One ‘boutique firm’ connected to the prestigious Munich Reinsurance Company agreed to the meeting only out of courtesy to Wallace because of his time at Manchester City.
These chaps asked Graham Wallace a straight question about the ownership of the assets and he couldn’t give them a straight answer to their satisfaction.
Although finance is global most of the companies they visited in the Square Mile are conduits for cash from the Eurozone.
This added the problem of the exchange rate to deal which, I am reliably informed, puts the final price of any deal up by about five per cent.
In all of the meetings they found that RIFC was off the ATR scale.
That is ‘Attitude To Risk’, which means the higher the risk the higher the points above base rate.
Sometimes for a bad risk these boys will go up to 25 points above Euribor.
It is essentially corporate Wonga.
However, RIFC couldn’t even get that!
When you go to these guys your business is already in trouble.
Moreover they need to know the bottom of your barrel, how big the hole is to the last penny.
You also have to show them that you have a clear plan of action to get yourself out of the financial mess you’re clearly in.
This is high risk borrowing for people in a real fix.
The people who are lending are pricing it at that level of risk.
Quite simply it is last port of call stuff.
Yet even these guys won’t touch them.
It would appear that Ibrox is now a toxic brand in the wider business world.
We know that no one will lend to them.
They can’t open a current account and get standard banking facilities.
This is a company with no credit line from a bank.
The more I learn about his guy Wallace, the more I feel for him.
The job was sold to him as a stepping stone to bigger and better things in England.
I understand that he took the gig on the understanding that a sale and leaseback deal on the fixed assets of Sevco was a given.
Sadly, the stadium and the training ground needed a clean bill of health.
Thankfully Albion Car Park is in tip top shape.
However, the stadium that John Brown played for has seen better days and I understand that the repair list is a nightmare.
Murray Park also has a few issues, but Ibrox is a no-go area.
When Donald Muir took over at Rangers in 2009 the maintenance regime was cut to the marrow.
So far the only battle that Graham Wallace has won inside Stalag Sevco has been to get Brian Stockbridge out of the door.
The clever folk at Laxleys believed that voting the hapless Financial Director off the board at the AGM would create more problems.
So they thought it better to vote him back on and then show him the door afterwards.
When he was on gardening leave his desk yielded up an entire treasure trove of bad news and they found bills that had been unopened, bills that had not been logged.
Overnight the bad news got worse and the debt hole got bigger.
Stockbridge was then asked to accompany Graham Wallace and Philip Nash to London on the pretext of meeting with potential lenders.
This, I was told, allowed the CEO and his highly paid associates, along with people from the Laxleys
“To sweat Stockbridge for what he knew”.
Philip Nash is now effectively acting as chief financial officer (CFO) and doing the job that Stockbridge was meant to do.
With each passing day, Nash is turning more and more stuff up.
Graham Wallace does have a plan to turn this omnishambles around, but that requires cash in the short term.
Only last week the planned redundancies of staff at Ibrox and Murray Park were called off because the new entity didn’t have the cash to pay them statutory redundancy pay.
The workers were asked to sign a confidentiality agreement before the meeting started.
Then they were told that they could go now and they would get paid what was due them in terms of severance pay when the company had it.
It is unclear if there is enough money in the clumpany’s bank account to pay ALL of the wages this month.
One well-placed insider told me that even if the first team squad are paid what they are due in February, it is not certain that there will there be enough money to pay all of the other staff.
Let’s be clear on this, dear reader: Stalag Sevco can only escape an insolvency event if someone, anyone, will lend them money.
Their monthly cash burn is not £1m per month; that is rather wide of the mark.
It is only £714,000 per month,
Then there are those pesky bills.
There is more, much more to come on that one dear reader.
Developing story…
Not The Huddle Malcontent says:
February 3, 2014 at 2:00 pm
is it plausible that they will be refused a license for next season ?
————————————————————————-
Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha…. Stop it NTHM, my sides are sore!
Allegations Confirmed by RIFC ?
I’ve never had a problem accessing Phil’s site before.
Could it be that RIFC have confirmed his assertions by sending round the lawyers.
Or maybe the bears have woken up and are all seeking enlightenment simultaneously..
Or is Phil suffering a random denial of service attack.
ecobhoy says:
February 3, 2014 at 11:54 am
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Hi mate I’m amazed by you’re detective work on the land deals the “bear land expert” has defo met a superior opponent.
What I do encourage is a full blown investigation so we can cross it off the list and leave the bears fumbling in the dark looking for some other way to get they’re revenge.
Meanwhile down at sevco things are heating up and the majority are more like ostriches than fierce fighting bears.
Jelly and ice cream on my next asda delivery.
Bomber Brown to leave Dundee, the Evening Telegraph understands.
Been trying to get into Phil’s site for 2 hours, until it occurred to me that some cleverclogs on TSFM would have have that eventuality covered. By God, if what is posted is true (and Phil’s sources have been on the mark so far) then Valentine’s Day may mean a whole new love-letter for TRFC.
IIRC it was not so long ago Phil Mac’s view was that while there were choppy waters ahead given the lack of credit facilities the good ship Sevco could steer through them with the guidance of a competnent CEO such as Gordon Wallace.
To alter his position to the extent of predicting near curtains sooner than later he must be very sure and confident of the info provided. Certainly giving enough details in the blog to suggest the info is sound.
Phil doesn’t strike me a man who is likely to be ‘duped’ when it comes to matters Sevco.
There is little to prevent RIFC implementing a sale and leaseback arrangement without resort to invoking administration.
The only value to RIFC in forcing an insolvency event is the opportunity it gives to shed the contracts of the higher earners (or at least those with a low asset value). A major drawback from that is that the SFA/SPFL will enforce a “football creditors” condition on any prospective purchaser, thus reducing the amount that RIFC might be able to raise from some “real Rangers peepil”. The amount owed to any players affected in this way, either through unpaid wages, bonuses or other benefits would be key to the amount that could be raised by a sale of TRFC as part of a CVA.
Phil’s back on.
Wottpi – that’s more than 40 years ago!
Not The Huddle Malcontent says:
February 3, 2014 at 2:30 pm
6 0 Rate This
Phils site experiencing some issues just now, here is the text, but please try the link 1st
http://www.philmacgiollabhain.ie/sevco-on-borrowed-time/
——————————————————–
NTHM and all other wise posters on here , a serious question . Who would lend them money ? Wouldn’t any loan from anywhere just become a donation under the current business model ? It may get them to the milk,and honey of the season ticket cash but paying what they owe , isn’t their forté , I’m led to believe 😉
Allyjambo,easyjambo (and otherjambos)
Good news on Hearts today. Dealing with an insolvency event relating to your team is hard enough – dealing with 3 (two of which are in Lithuania and are being handled by separate insolvency firms) would be like herding slippery cats in a barrel of oil in the dark wearing a blindfold with both hands tied behind your back. Let’s keep fingers crossed (although that wouldn’t help either).
Lithuanian court approvals still required 😯
On the 25 point penalty for a “second” administration – that is not going to happen to the Ibrox team. The relevant rule states that a 25 point penalty will only be imposed if there has been a prior instance of a points penalty “under these Rules”. “These Rules” are “the SPFL Rules” – not “the SPFL Rules (or any previous rules of the SFL or SPL)” – which is what anyone who wanted to do it properly would have drafted.
Its a stupid thing to have drafted. I can only surmise that it has been done deliberately.
If the purpose of a higher penalty second time around is to discourage profligacy twice – what difference does it make that there has been a supervening reorganisation of the league structure?
Not The Huddle Malcontent says:
February 3, 2014 at 2:30 pm
—
Thanks for posting that, NTHM. Seems to me that Phil’s site is still inaccessible.
Odd that RIFC have had to go to the City’s last chance saloon lenders in their failed attempt to raise funds.
It rather begs the question why their own shareholders have not come up with the cash as £3m or so would see them through to season book renewals time.
Perhaps this is the last piece in the sale & leaseback of the assets jigsaw after P19 of the Record.
So GW says “Sorry bears, cant cut costs quick enough, no outside investment, shareholders agree to invest only on sale/leaseback terms”
Bye Bye Ibrox, Edmiston House, car park and Murray Park. Hello Rangers Property Co. TRFC here is your rental invoice. Terms 30 days.
Sweet.
pepperami says:
February 3, 2014 at 2:44 pm
ecobhoy says:
February 3, 2014 at 11:54 am
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Hi mate I’m amazed by you’re detective work on the land deals the “bear land expert” has defo met a superior opponent.
What I do encourage is a full blown investigation so we can cross it off the list and leave the bears fumbling in the dark looking for some other way to get they’re revenge.
====================================================
I am all for a full-blown investigation when there is a case to answer but the Bear ‘experts’ IMO are driven by hatred with the sole aim of hurting Celtic. As usual they ain’t interested in the facts or the truth.
If I can demolish their arguments with little effort and they are incapable of defending their position then they don’t have enough to merit an investigation.
The bit that brings a smile to my face is the EC State Aid complaint – now the EC Commissioner for Competition is fully aware of what bampots they are dealing with and next time – when they might even have a semi-legitimate complaint – their emails will be politely ignored in a way that only a Eurocrat can 😆
I think you may be wrong Campbellsmoney – this is from Iain Blair at SPFL on this subject:
Meanwhile at the AIM today:
Rangers International:
160,000 shares sold
2,000 shares purchased
Many smaller punters looking to get out.
Not many looking to get in, even at the cut rate price of 25p.
Sugar Daddy says:
February 3, 2014 at 3:55 pm
Bye Bye Ibrox, Edmiston House, car park and Murray Park. Hello Rangers Property Co. TRFC here is your rental invoice. Terms 30 days.
=====================================
Terms: Payment in advance ❗
I’m afraid you’ll never make a Spiv – you’re condemned to being a Sugar Daddy 😆
Ownership of the Rangers Assets
The bit I find fascinating about Phil’s piece isn’t so much SS Dignity on the rocks but the problem he reports that Wallace allegedly couldn’t give the required assurances about the ownership of Rangers assets.
Maybe that’s why he needed 120 days to investigate as it does take some time for a slow boat from China to reach the Clyde especially when loaded with junk bonds 😎
ecobhoy says:
February 3, 2014 at 4:04 pm
Terms: Payment in advance
===================================
Eco, you are a harsh man, even TRFC are entitled to a honeymoon period. 😀
Phil is tweeting this:
“Phil MacGiollaBhain @Pmacgiollabhain 7m
28 million RIFC shares traded today with a delayed publication request.
I’m sure the intrepid lads of the SMSM will be onto this one.#Tip”
Any thoughts?
And now this:
“Phil MacGiollaBhain @Pmacgiollabhain 2m
LSE confirming to me that “large numbers of RIFC shares traded today”.
Previous tweet info provided by chap in the City.
Developing…”
Bangordub says:
February 3, 2014 at 4:26 pm
Phil is tweeting this:
“Phil MacGiollaBhain @Pmacgiollabhain 7m
28 million RIFC shares traded today with a delayed publication request.
I’m sure the intrepid lads of the SMSM will be onto this one.#Tip”
Any thoughts?
==============
EDIT: 28K per Phil / insignificant
Then the M became a K
its only 28,000
Good Afternoon.
If Sevco canot pay redundancy then it fall to the taxpayer to make the minimum redundancy payment if the employer cannot. Perhaps one of our bead counters could confirm.
If shares dumped someone could be running for cover.
Just imagine, as I have always maintained, that CW does in fact have a real claim to the assets. It means not only are the share absolutely worhtless but the IPO funds were raised on the basis of a fraud and someone may end up doing some serious jailtime.
Meanwhile in the land of Sevconia no worries, the tooth fairy might come to rescue them
Yes, correction now out!
“Phil MacGiollaBhain @Pmacgiollabhain 10m
A red faced chap in the City just emailed me:
“Sorry Phil trades were for 18750 and 9937″.
That is, of course, 28,687 not 28 million…”