After making inquiries into progress on Resolution 12 to the Celtic AGM of 2013 there is little doubt in my mind that the SFA made a serious error in the process of UEFA licensing.
Here are some facts:
- UEFA does not issue licences to clubs who have due tax bills outstanding,
- UEFA require the SFA to satisfy themselves of a club’s eligibility for a licence and that clubs have provided proof no overdue tax payable exists,
- UEFA also require a club to tell the SFA and UEFA if, after the issue of a licence there are material changes in their circumstances which would affect their eligibility – including the situation at #1 above,
- UEFA awarded Rangers a licence to play in European competition in March 2011,
- In May 2011 Rangers received a tax bill, which they did not contest or appeal or agree a payment plan. The bill (which remains unpaid) was overdue by 30 June 2011,
- UEFA received no notice of this,
- Rangers did not lose their licence and in fact competed in both the Champions’ League and The Europa League in that season.
None of these facts are disputed (as far as is known) by anyone connected to the saga. What is in doubt, because the SFA won’t answer the question, is whether they received a copy of the tax bill and the May letter that accompanied it from Rangers or not.
If they did send it to the SFA, Rangers could reasonably argue that they did their bit and the SFA fell down on the job by failing to notify UEFA of their new unfavourable tax status.
If Rangers did not send it, then they had broken not only UEFA FFP rules but more importantly the trust amongst SFA members that full disclosure is honestly made in a self-certification process. The SFA in not carrying out their monitoring responsibilities properly and using the powers UEFA FFP gave them also broke that trust.
In either case, there is a systematic failure by the SFA to administer the sport effectively; either through a failure of trust, a failure of administration – or both.
Even worse, in the four years that have elapsed since this incident, it seems that nothing has been done to put matters right. The SFA have been very active in refusing to answer questions on the matter, particularly this one;
“How will you prevent it happening again?”
Incredibly, up to now, no measures have been put in place to add rigour to the licensing process. Are they really saying that they think the process was carried out satisfactorily?
No they are saying nothing. Silence and denial, followed by silence and inaction.
So what is the point of this article? Let’s call out the elephant in the room right away – it is unequivocally not to have a go at Rangers. This is no longer really about Rangers at all, but about the SFA’s mal-governance of the game. Besides, clubs affected by this seeming failure on the part of the authorities (in that year Celtic, Dundee United and Hearts and Kilmarnock) are hardly likely to successfully sue a club now in liquidation (although small shareholders might take a different view with regard to the SFA’s conduct).
Nor am I seeking to find some retrospective punishment for the club (as far as I know sanctions are neither available retrospectively, nor useful in this case ) but to be aware that the question above urgently needs to be addressed if the status of football as a sport is to be maintained.
To the extent that this is about what has happened to Rangers, does anyone – no matter what club they owe their allegiance to – seriously consider that TRFC would NOT be in a better situation today had the SFA acted with propriety and applied their rules correctly in 2011/12?
With the kind of money on offer these days for entry into Europe, and the interdependent nature of the game, it seems fairly self-evident that trust is not enough to allow effective regulation, and that incompetent governance where money is the paramount consideration is unacceptable.
The SFA has long enjoyed a misconceived impression of its function as being that of a quasi-legal body, bestowing upon it a status of independence and aloofness from the partisan interest of the clubs. In the main, fans have largely bought into that myth. However the SFA is nothing of the kind.
It is in fact merely a cartel which is allowed to govern itself for its own benefit and is only accountable to the clubs that make up its membership, and not the fans. Check out the last sentences of almost any rule, where discretionary powers awarded to itself effectively render the rule worthless and unenforceable.
Literally, a nihilistic approach to governance
Maybe it is time the SFA scrapped the get out of jail discretionary clauses, and put some robust regulation in place to ensure the financial transparency of all clubs?
Even better, politicians are never slow to tell us of the importance of football to the social fabric of the country – in that case why not follow their own rhetoric, recognise that it cannot be allowed to self regulate in narrow self interest, and legislate to have football governed independently?
If I was a Rangers fan, I’d be thinking that the SFA’s failure to police the UEFA licencing issue helped accelerate the club’s demise – by making it easier to paper over the cracks.
If I was a Celtic, Hearts, Dundee United or Killie fan, well the consequences for them in terms of lost financial and competitive opportunities are fairly obvious.
Conclusion? The clubs can no longer be trusted to run the affairs of the industry themselves.
A new independent, accountable regulatory body (funded by the clubs) is the minimum we need to save the game in this country. It should comprise representatives of the clubs, the fans and other stakeholders – and it should have a holistic remit as its prime directive, whilst ensuring fair and equitable treatment of all clubs.
It can take decisions on the basis of what is good for the game without the baggage of self-interest, and without any west of Scotland institutionalised bias. Of course Scotland isn’t alone in this. Football is a powerful political force across the world, and as developments at FIFA over the past couple of years have demonstrated, it is institutionally corrupt. The clubs can no longer be allowed to run it as they see fit, and we need to begin a campaign which will ultimately convince the pay-at-the-gate fan of the truth of that.
The UEFA licensing issue is only a pebble in the sand of football incompetence and corruption, but it is a microcosm of what ails the game. The good of the sport, and not individual clubs, is paramount. The SFA cannot and will not deliver that.
The case for a new regulatory body is clear, and the status quo is not an option unless the death of the sport is deemed acceptable.
There is little doubt in my mind that unless regime change is effected, in a few decades there will be no regime .
Homunculus 5th October 2015 at 6:18 pm #
I don’t pay much attention to tax rates ,etc.,(no, I am not a fan of ….) but I thought VAT was levied @ 20 % – so the £240,000 becomes £192,000 , no ?
On the other topic, I think CFC should relocate to Dublin and TRFC to Belfast and the remaining 40 clubs into two leagues of 20,; 5up/down – 3 by right and 2 via playoffs. I’m sure the stadia space could be put to a different use – Charlie did suggest growing totties New varieties mibbes – the Paradise Pink or the Ibrox Supreme ?
Just had an amusing thought, re: the 2 clubs b*ggering off to England.
Let’s assume that all the major barriers to entry to the EPL/English leagues have been surmounted: an invitation is issued to both Celtic and TRFC.
As part of the ‘due diligence’ expected to be performed, do you think that the same TRFC ‘back of a fag packet’ self-certification, [a la VW], as currently used to satisfy the SFA’s annual, financial health check requirements, will also be accepted without question in England ?
Will TRFC in its current guise ever be able to produce a robust business plan proving its financial viability – and providing a sound guarantee that it can complete all of its forthcoming season’s fixtures without undue money worries ?
It’s all hypothetical anyway, but which ‘could’ be a tiny bit closer if/when the EPL bubble bursts…but TRFC will probably still be a financial basket case…and would have to thumb a lift down the road to the “Holy Grail” of the EPL, [DD last week].
Re Charles Green’s forthcoming attempt to win legal costs from Rangers. Is it permissible for a Judge to agree he is due the costs, but refuse to award them because to do so would put Rangers under?
Apologies for the paranoid sounding question but the past three years have taught me to rule nothing out.
No, because it is added at 20%. So the £200k plus 20% = £240k (£40k VAT). If the ex-VAT figure is £192k, then the Vat Inclusive figure is that PLUS 20%, so £230,400
General rule, One sixth of the total cost is VAT
As you say, rule nothing out, but then Charles might argue that forcing him to pay something he is contractually entitled to, could force HIM into bankruptcy. Where does the judge go then?
upthehoops 5th October 2015 at 8:45 pm
I don’t see how, if it’s a contractual obligation then it’s a contractual obligation.
I don’t think “sorry we can’t afford to pay that so we just won’t” is a valid legal argument.
I could be wrong though, the argument just seems flawed intuitively.
upthehoops 5th October 2015 at 8:45 pm #
scottc 5th October 2015 at 8:54 pm #
Homunculus 5th October 2015 at 9:11 pm #
_________
In the Imran Ahmad claim for his £500 000 bonus to be ring-fenced, Lord Armstrong had no great difficulty in accepting that there was no real possibility of insolvency!
And Imran, despite there being no disagreement that he was entitled to the ‘bonus’, had his request refused.
Lord Armstrong clearly took the view that the Court should be careful not to trigger off an insolvency, and that ( as I read it) the odd contractual debt here and there can be ignored for the sake of the bigger objective-remaining solvent. And if there were indeed no insolvency, then contracts would be capable of being honoured.
Homunculus 5th October 2015 at 9:11 pm #upthehoops 5th October 2015 at 8:45 pm
I don’t see how, if it’s a contractual obligation then it’s a contractual obligation.
I don’t think “sorry we can’t afford to pay that so we just won’t” is a valid legal argument.
I could be wrong though, the argument just seems flawed intuitively.
=================
Agreed- the court must decide on whether CG has a valid claim under the terms of his severance agreement. If the court rules in CG’s favour, then any problems getting the company to pay up would require separate action, probably a winding up order. Or Green could try to get a court to ring fence sufficient cash to meet his legal fees, just as Ahmad did regarding his claim. But these are effectively collection matters, which only arise if Green gets a court ruling that he has a valid claim.
By the way, do we already know the date of hearing of CG’s ‘legal fees’ entitlement claim?
I checked today’s updates on the Court of Session Rolls, but didn’t see it scheduled for this week. I would imagine that it would have to be quite soon if the guy needs to know before the 16th which is when ( I think, and please someone correct me if I’ve got it wrong!)) he appears ( with others) in Glasgow Sheriff court ( unless they sneakily use another venue) to be formally charged with whatever. And I would like to attend if I possibly can.
Frozen for 2013/14
http://www.dailyrecord.co.uk/sport/football/football-news/rangers-chief-executive-craig-mather-1889975
Increase for 2014/15
http://www.skysports.com/football/news/11788/9257467/scottish-football-rangers-have-announced-an-increase-in-season-ticket-prices
Increase for 2015/15
http://www.rangers.co.uk/tickets/season-tickets
Apologies from the large type – I was on my mobile at the time and had to enlarge the type to see it ……… It’s an age thing.
Oh Phil
who is going to be the writer handed the lifetime and for ever in history the most literary awarding book(s) in both fiction and fact at the same time,each of the series,prob 10 books by now,that will name and shame along with the fictional cretin’s involved in this incredible story,just think,if any of our journos had grown a set ,they and their families would live any where in the world with the ongoing sales of the books,they would need to involve a good fictional writer,say Stuart MacBride,and together would have readers crying out for the next book,fiction,fantasy or reality,it will all be out there one day,eh Phil.
it does not matter how this pans out,it will be how it will have got there that will never go away
can anyone tell me what an ostrich says when it brings it head out of the sand.
easyJambo 5th October 2015 at 10:52 pm
Thanks again, and I really was joking about the shouting thing.
It was a genuine request and I appreciate you taking the time to reply to it in the same spirit.
yourhavingalaugh 5th October 2015 at 11:20 pm #Oh Phil who is going to be the writer handed the lifetime and for ever in history the most literary awarding book(s) in both fiction and fact at the same time,each of the series,prob 10 books by now,that will name and shame along with the fictional cretin’s involved in this incredible story,just think,if any of our journos had grown a set ,they and their families would live any where in the world with the ongoing sales of the books,they would need to involve a good fictional writer,say Stuart MacBride,and together would have readers crying out for the next book,fiction,fantasy or reality,it will all be out there one day,eh Phil. it does not matter how this pans out,it will be how it will have got there that will never go away can anyone tell me what an ostrich says when it brings it head out of the sand.
———————————–
Don’t know about the book but does not one of the main players currently on bail own the film rights?.
So much easier, that as a Maths teacher, i was delighted when that nice Mr Osborne hiked VAT up to 20%.
Reverse percentages are a bugger, and the bane of classroom existence for the cloak and mortar board brigade. 🙂
Quiet, so I’ll fill a space.
There will never be a court verdict in Scotland that goes against “Rangers” interests as perceived by those who make these decisions.
That is not to say that the 2012 and 2011 sales were not fraudulent, although , in my opinion, CW has a defense for the 2011 one.
This is unraveling backwards and will finish up with the “Real Rangers” in the hands of RRM.
Other than on here, and similar sites, there is no opposition to this, and there is no influence to be brought to bear.
With respect, I think I am stating the obvious. Pardon me for my certainty – I am old(ish).
BP above is right; self interest through cash determines the view of the clubs that make up the SFA and SPFL. CFC, my team, are the most complicit. We, through our representative on the footballing board could have, behind the scenes, brought influence to bear in 2012 and since. There was a long discussion on RTC and since, about whether or not CFC’s silence was through fear of SMSM/ “public” reaction or ulterior motive – I think that is now answered. We didn’t oppose the survival myth and now PL talks about £10 million losses. We are promoting the OF brand and as someone above said the others are 2nd class citizens. That’s the way it is: that is the way it has been, I think, since SDM went belly up. That is PL’s job – to maximise income, however he thinks it can best be done. I disagree with him on the current strategy, but I’m not CEO.
Why does KJ get airtime? Why does Sportsound always produce a panel to perpetuate the survival myth or whatever the party line is? Because that’s what the Establishment want.
Why are you surprised?
I must admit I’m a bit surprised that JC did not expect this. Nothing has changed apart from CFC now being in the tent.
While I’m at it, CG could have called his new company Govan Globetrotters and played them in strips covered entirely by enormous stars. The fact that they played football from a stadium bought in a fire sale from a different football company would have made no difference – the idea of allocating them the honours of Rangers would never have occurred to anyone, so why is this myth stiill being promoted, why, and by whom?
Look forward to seeing you all in Perth.
Big Pink 6th October 2015 at 12:03 am #
JJ obviously dogged the same kind of school I did !
John Clark 5th October 2015 at 10.41pm
The Preliminary Hearing for the Sevco Seven will not be at the Sheriff Court.
It’s a bit more serious than that.
It’s at Glasgow High Court.
Hint for SMSM – it’s in the Saltmarket, just over the river from the Sheriff Court, big building, faces Glasgow Green…
John Clark 5th October 2015 at 10.41pm
The Preliminary Hearing for the Sevco Seven will not be at the Sheriff Court.
It’s a bit more serious than that.
It’s at Glasgow High Court.
Hint for SMSM – it’s in the Saltmarket, just over the river from the Sheriff Court, big building, faces Glasgow Green…
Don’t know what happened there.
Cue:
“We heard you the first time.”
torrejohnbhoy(@johnbhoy1958) 5th October 2015 at 11:56 pm #
‘…Don’t know about the book but does not one of the main players currently on bail own the film rights?.’
_________
Aye, but what’s to stop anyone writing a Da- Vinci-code-type screenplay about a fictitious football authority using its black arts to subvert a sport enjoyed by decent, honest ,Paw Broon-like family men in post-industrial Scotland, by resurrecting a dead sports club, killed by its greedy, cheating owner ?
It would be a brilliant screenplay, capturing every nuance of the greed and deception and hubris of a megalomaniac football club owner, and every little subtlety of the relationships that that owner had with the football authorities, the world of big business and Banking, the world of really basement-level sports journalism , the world of political nasties, and the very special world of those in the BBC ( Scotland province).
That would be a really great film. Anybody out there to run with my( copyright!!) idea?
We could have fun trying to decide on casting. Brian Fox as a megalomaniac? Superb actor.
As President of the sporting authority?
As a glib and …..?
What fun, on a quiet night!
LUGOSI 6th October 2015 at 12:26 am #
‘..The Preliminary Hearing for the Sevco Seven will not be at the Sheriff Court.It’s a bit more serious than that.It’s at Glasgow High Court…’
________
Thank you, Lugosi ( Bela, by any chance?).
From other sources I had gathered that the Crown Office was being somewhat coy about where and when these guys might appear and about where the actual, subsequent full trial might be heard.
So, the High Court it is, in ‘the dear green place’ that is my native city, and across from where I played some of my football in the 1950s ( and 1970s!)
That it should come to this!
Lugosi, so good you told us twice?
Scottish Football needs a strong Arbroath.
On the subject of film rights, whilst Craigyboy claimed these, without something being written down, I’m pretty sure there is nothing to claim apart from his side of the story.
For JC: I started writing something a few weeks ago, though it’s a slow process. It has, unexpectedly, become a tale told almost entirely in dialogue (though nowhere near complete) and, of course, consisting entirely of fictional characters. It begins at a meeting with a senior banker where a knight of the realm is told his business is in trouble …
History and timing has a habit of repeating itself in Football ( Germany at Penalties being an obvious example). The timings of previous events at Rangers are instructional.
Football is a cyclical business, money comes in at roughly the same time each year, whilst expenditure is more or less a constant. Unless a bank provides a credit line via an overdraft facilty or term loans, then the Directors have to cover cash flow shortfalls. Celtic are believed to be the only club in Scotland with bank facilities, and these are substantial at £21 million and more than adequate in smoothing out cash usage during the season. Celtic generally have surplus cash at year end reporting and a facility , if required, for those months when expenditure exceeds income.
Turnbull Hutton in his excellent interview for this website explained precisely how it works for everyone else. Whether you are Raith Rovers or Hibs or Rangers you are likely to need an injection of loans from Directors during the season. These are usually repaid from future cash receipts or are in some cases written off by the lender, such as has happened at Aberdeen.
It’s an interesting side note that when Stewart Milne & Aberdeen Asset bit the bullet to the tune of several £Million at Aberdeen, it received significantly less coverage than the so far undelivered , and subsequently backtracked promises , by King of warchests of £30 Million. Note that Richard Gough, whilst promoting King’s crazy Escrow the season ticket scheme, also said King had £30 million to invest.
A Scottish football club requiring loans from Directors is therefore hardly front page news. At least it shouldn’t be as long as the Directors have the wherewithal and the commitment to provide such loans , and the club has the ability to repay these loans or at the very least a facility to convert them to equity.
This is why there is much speculation about Rangers ( although not in the broadcast or MSM) . The Rangers fans , or at least a healthy majority of them, have bought in hook , line and sinker to Kingco’s ability and committment to continue to provide loans. The unknown , even for them , is how much is required and when and how do you provide them in such a way that the loan is either repayable in cash or in equity that is liquid and has value.
The rest of Scottish football are considerably more sceptical, given the nature of King , the lack of wealth of Paul Murray & Gilligan , and whether the 3 bears are prepared to risk further £millions, given they are already exposed for £3 million with no asset cover.
The recent history of emergency loans at RIFC gives a good indication of when and where funding is likley to be required moving forward. The last reported emergency loan was on 22nd May 2015. This was reported to be from Dave King and reported to be for £1.5 million.This was in the last financial year and before season books for 2015-16 had been sold.
There was an announcement , via an STV interview on May 21 2015 , that the 3 bears had also provided a further loan of £1.5 million at this time
Two months previously on March 23rd the 3 Bears provided £1.5 Million , as reported in The Herald.
The business therefore required a total of £4.5 million in the last 3 months of the financial year. It is presumed none of these loans has been repaid. However that was far from the only funding required in financial year ending 30th June 2015 ( no accounts sighted yet )
On the 27th January 2015 Sports Direct provided a £5 million loan . £3 million of which was to be used to settle the £3 million loan of 27th October 2014 from MASH Holdings. This was reported by an RNS to the Stock Market. Since King got thrown off and out of AIM, and subsequently has failed , despite his promises, to find another exchange, RIFC provide next to no detail and are now not bound by the deadlines to produce information insisted on by the LSE.
That’s very convenient if you want to manage bad news. You can pay Level 5 to keep on pushing out puff pieces, which are jumped on gleefully by the unenquiring minds at The Herald & Evening Times. These in turn are swallowed in whole by most of a fanbase desperate for any kind of good news. In the meantime , no solid data , no financial plan and no accounts are provided for the shareholders, including the 10,000 members of Rangers First and the RST .
Thanks to a leadership who only rock the boat against Johnny Foreigner ( or anyone who doesn’t promise a blazer or a seat in the Directors Box ) no awkward questions are asked. However all that does is keep potential dissenters for reaching for their pitchforks. Reality at the business end cannot be managed by such a sham.
In summary the business needed £3 million at the end of October 2014, a further £2 million in January 2015 , a further £1.5 million in March 2015 and a final £3 million in May 2015. These amounts ( £9.5 million) are still outstanding as best as is known.
There may have been an improvement in revenues this financial year, but in terms of last years cash flow shortfall it won’t be close to being enough. The season book sales are close to 10,000 below the target set by King . Match day attendances have been excellent, but that’s highly unlikely to be sustained through a Scottish winter. The business will need substantial loans over the remainder of this financial year, and remember last year’s cash inflow included circa £800,000 from the current management team for Lewis McLeod. Selling Tavernier or Waghorn would indicate Kingco don’t have the resource they claim , and that would be a risk too far for them.
So who lends the money.
Presumably Sports Direct are not an option to cover any of the shortfall this year, and as none of the usual suspects like Kennedy & McCall have publicly offered to provide loans, it would appear that the only options are King , Letham, Taylor and Park.
Do they have the resources and are they prepared to take what is a substantial risk ? I wouldn’t criticise anyone for having doubts. I seriously doubt any of these 4 are what would be described as Ultra High Net Worth individuals, but maybe they are .
Even so , financially it’s a huge risk to put any more money into this. There is uncertainty on so many fronts, that investment / loan red flags are jumping out all over the place. Criticism of course can be fairly aimed at King . He came to a position of control by underming the financial position of the previous board , and by making multiple promises of £10’s of millions of investment. He has no moral escape hatch. Anyone who makes such promises to a club he professes to love has no excuse , no matter what turns up subsequently.
All of this is before we factor in the potentially devastating effect of Greens legal fees and the court cases involving most of the key figures involved in founding RIFC. I have never had to instruct a legal team to defend criminal charges, so can’t comment on the speculation on what the cost may be. What i do have experience of is paying legal fees for high end legal advice during mergers and acquisitions .
Whilst these fees vary hugely depending on the value of the deal, a fee of £300,000 for 4 months work isn’t uncommon. That rarely includes a QC fee, as in M & A they are usually only consulted on contentious and disputed points . In a criminal case they are significantly more involved on a continuous basis.
I also have no idea of how long any case may run . Counsel has already stated it’s a hugely complex case, but cases sometimes fold early with an admission of guilt or when the prosecution are told they have no case that is convincing. So it’s a total unknown . It’s yet another potential contingent liability on the business of unquantifiable cost.
You see the dilemma for those being asked to invest or provide loans.
Q. How much are we forecast to lose this year ?
A. We can’t say, it depends on too many uncertainties.
Q. Are these uncertainties quantifiable ?
A. We could take a guess at some, but it depends on the outcome of events over which we have no control .
Q. So for arguments sake would £5 million be enough to see us through to the season end ?
A . It might be , but we can’t guarantee we won’t need more.
Q. Can you offer any security for a loan ?
A. No , nothing at all.
Q. Assuming £5 million is enough, and the club is promoted, is it possible to provide a squad of competitive quality to Celtic for 2016-17 whilst breaking even.
A . Unlikely , especially as some of the events over which we have no control may still not be resolved.
Q. So you are likely to need further substantial loans in 2016-17.
A. Yes in all probabilty
Q. Will you be able to offer security at that time.
A. Unlikely
There are many more questions likely to be asked by potential lenders / investors, but the answers are not going to give any comfort. The reality is that anyone lending is potentially donating, as there is no clear path to repayment. Given the circumstances , and the lack of current up to date audited financials with the current going concern warning removed, the investment or loan is off the charts in terms of risk.
Anyone on either side of the phony PR war is guessing at outcomes . The paid for Kingco spinners don’t know and are briefing furiously that it will all work out, and the doomsayers don’t know, because the truth is with so many uncertainties , nobody knows. Which for a business in dire need of funds is the second worst position to be in. The worst is needing an amount of cash that is known but is unable to be raised. There is of course the possibility that even the minimum needed and known about , is not readily available. However King has personally assured us the business is fully funded, so i’m sure that’s not the case . Might carry a bit more weight though if someone not prone to telling so many lies came out and said it.
Over to you Mr Robertson.
LUGOSI 6th October 2015 at 12:26 am #
==========================
I am sure there will be far more than the media awaiting at the High Court. A mob with pitchforks and flaming torches outside a court all helps to ensure justice prevails of course.
Perhaps the pitchforks and flaming torches should have been used to prevent Whyte then Green swaggering up Edminston Drive instead of a hero’s welcome.
BarcabhoyBarcabhoy 6th October 2015 at 6:31 am #
—————————————————————————
Barcabhoy – excellent summary, and you’re right when you say matchday attendances are excellent generally.
It’s just that when it’s half empty like a game I seen recently that those blue seats look embarassingly faded. Maybe it’s just my telly, but they seriously look past the sell by date.
Maybe auld Big ‘ands can make a comeback and promise orange seats? I miss CG!
Although CG’s legal fees may be considerable, RIFC/TRFC’s most pressing and biggest contingent liability (by far) could present itself should he be found guilty of offences that occurred whilst acting as an officer of either company.
So that the company’s interests are protected, one may think that RIFC/TRFC should be channeling all available resources into Mr Green’s defence. They appear unwilling to do so.
We should perhaps refrain from exploring too deeply the apparent reluctance to ‘invest’ in their own interests.
What we can say is that sourcing external financial investment must be ‘problematical’ when such a devastating contingency is (seemingly) being ignored.
rougvielovesthejungle 5th October 2015 at 6:59 pm
So tonight Radio Scotland is once again trying to emulate Fox News in terms of being ‘fair and balanced’!We have Kenny McIntyre presenting with a panel of the embarrassingly neutral Graham Spiers, Keith Jackson and Chick Young.Jaysus wept, they should have just invited Richard Wilson along to make it a full house.Our national broadcaster is a permanent embarrassment and quite often a disgrace!
——–
Haha, a great discussion of the meanings and definitions of ‘huge’, ‘rampant’, ‘steady’, and ‘vast’ as they could be used to describe the progress of the national team. Funny stuff. Graham Spiers lived right up to Lewis Macleod’s impersonation of him, extraneous sounds and all 🙂
Really good read from Barca (I followed your twitter link to here). I’m wondering who does the TSFM twitter? More than 3,000 followers, that’s quite a reach. Barca’s tweet with link to the post maybe deserves a retweet?
Barcabhoy
Excellent analysis and after reading it I came to same conclusion that stopped me updating a business case spreadsheet I had constructed and used over 18 months.
That predicted TRFC going into the red consistently but somehow something turned up out of the blue to keep them going.
As an honest business man if you put in £1,000,000 you would expect at least that amount back. You would have worked hard for that money and so valued it and want a return.
Now a dishonest business man (or crook) who had the same money from sources less reputable that he could not spend because of the source, might be happy to “loan” that £1m and only get back £100,000 that could be spent.
I speculate of course but given the role cash plays in football from match day attendances, filtering in money from less than reputable sources should not be that difficult for an organisation ran by a criminal.
Am I the only one who missed the front page of the Daily Record raging about Mr King’s cash for prison swap? I mean, looking at the paper today, surely they must have had a similar splash for Mr King? Or are they just outraged at the low level of quantum this morning?
Another question for Barcas list:
Q. What will you do when loan needs repaid?.
A. We’ll call it “Holistic” and vote not to repay it.
Seems a surefire winning plan to me.The shareholders of this business seem to agree that not repaying loans is acceptable business practice.Who in their right mind would lend a significant amount to this entity?.
There has been some suggestion that the Sit on the Fence blog has some rational thinking TRFC fans but I note that the above, in response to a Celtic fan “in peace”, has not been challenged along with an outright attack on PMGB. They still don’t get it do they?
SoF’s figures as has been pointed out are to be taken only slightly more seriously than a DCK pledge and his motives seem to be more anti DCK than pro Govan football club(s). It would take some convincing for me to accept they could work with SFM.
There has been some excellent analysis of Ibroxian finances recently, especially with Barca’s post earlier today.
For all the forecasts of when the Govan outfit will run out of cash (which they more than likely will before seasons end), it should be remembered that the original Three Bears loan of March 23rd is due as repayable after the 31st December 2015.
The RIFC site only has the latest Regulatory announcement regarding JP Jenkins and their facility to trade RIFC shares. The official rangers site no longer has the club statement since they have introduced a new website that is ‘responsive and fit for a club that is building towards the future….’ (wee Stevie in IT has been very busy lately). However, a Google cache returns the following result:
Whilst this does not specify a repayment date, the Regulatory Notification dated 23rd March reads:
So I am assuming that the £1.5m is repayable after that date and therefore needs to be found.
my sources tell me…. the great lex maclean has texted down that…..
rfcnil whomissedthepen should be updated to…
trfcnil tavernier must have been injured at the free kick and thats the first one waghorn has missed…..
as campbell the actress said to stewart the bishop no one will notice if we give them falkirk, raith rovers and hibs at home in the first set of fixtures…….
Aww bless. JohnJames obviously monitors SFM and has tweeted me to say he cleaned up the PMGB insults as soon as he was aware. It looks like he’s done a far from comprehensive job.
He also asked me to challenge his figures on his blog. I don’t need to SoF because EasyJambo and others have already done a stirling job of that on here including the basic slip up on VAT (no laughing about Govan clubs and VAT please).
He’s also not removed or challenged comments from an Allan Parker who despite claiming PMGB and others are obsessed with the Govan clubs is the source of my previous quote and is going on about the Celtic subsidiary Celtic FC Ltd and is making accusations along the lines of “Big Jock knew”. I’ve made my mind up on the callibre of posters attracted and permitted to participate on his blog I’ll leave others to make their own minds up.
I see that TRFCG (Richard Spurway) has resubmitted an Annual Return (AR01) to Companies House showing Law Financial as the sole shareholder. There is nothing surprising in that, but page 11 of the document has me intrigued.
Is someone spinning a yarn?
EJ, to be fair it is a good old yarn!
Tykebhoy, he might not just read here. There are allegations (stated as fact, of course) on the Bear’s Den that JJ is our very own Barcabhoy, though I think he has already hinted that’s not the case in a recent post above.
EasyJambo
The errant page appear to have been printed of between 22 and 30th August
http://www.repeatcrafterme.com/2015/08/crochet-christmas-tree-pixel-square.html#comment-11328
@Nawlite I think the Bears Den are clutching at straws. It helps them bury their heads in the sand and ignore it if it can be attributed to a “Timmy Rangers Hater”. While JJ’s figures are slightly off the mark, the bottom line is still they are running out of money fast, as Barca and Easy have more accurately pointed out on here.
Vote registered for this special oasis of information & insight… Surely the most enjoyable & best run site in Scottish football.
I can only say a big ‘thank you’ to the host of knowledgeable & disciplined contibutors who keep us so well informed & entertained.
Tykebhoy, I know, I know. It’s a coping mechanism.
john james @sitonfence 12m12 minutes ago
https://johnjamessite.wordpress.com/2015/10/06/the-sevco-shuffle/ …
The Sevco Shuffle and how a 5088 document at Companies House led to Green’s resignation within 7 days.
torrejohnbhoy(@johnbhoy1958) 6th October 2015 at 2:35 pm # john james @sitonfence 12m12 minutes agohttps://johnjamessite.wordpress.com/2015/10/06/the-sevco-shuffle/ … The Sevco Shuffle and how a 5088 document at Companies House led to Green’s resignation within 7 days.
—————————————
JJ is sailing a bit close to the wind re contempt of court with his opinions on what went on with the two Sevcos.
Barcabhoy 6th October 2015 at 6:31 am #
should drop their collective ‘3 monkeys’ routine if they want to have any version at all of their team to support.
…
However King has personally assured us the business is fully funded, so i’m sure that’s not the case …
===============
So, in summary, would it be correct for Bampots to infer from your post that TRFC – in its current form – is b*ggered…absolutely ?!
Mibbees the bears and SMSM
…mibbees they have run out of time already…?
http://rangers.co.uk/news/headlines/directors-attend-rst-agm/?
If they are intent on claiming to be Rangers (didn’t Rangers go bust)
they all want to win their 55th ‘title’
did ‘they’ not win titles in 2012, 2013 and 2014 ???
I see that TRFC have updated their website, including updating some out of date share information and their advisers. The RIFC site has yet to be updated.
There is still a mistake on one of the pages as George Letham is listed twice among the major shareholders. I think the second one should be Rangers First.
http://rangers.co.uk/investor-centre/
Shareholder No of Ordinary Shares held % of issued share capitalNew Oasis Asset Limited 11,869,505 14.57%George Alexander Taylor 7,575,000 9.30%Mash Holdings Limited 7,265,000 8.92%Alexander Easdale 5,256,110 6.45%Douglas Park 5,000,000 6.14%River and Mercantile Asset Management LLP 4,704,827 5.77%George Letham 3,299,515 4.05%George Letham 2,865,487 3.52%
The club has also added a link to their statement about BPH, Margarita, Putney and Norne Anstalt having their voting rights withdrawn
EJ
The JJ page has been pulled. Someone shared your view.
torrejohnbhoy(@johnbhoy1958) 6th October 2015 at 2:35 pm #
————————————————————————————–
It’s been pulled. I suppose it’s too cheeky to ask for a PM of the highlights, tjb?
Here’s an interesting stat on his material, though: “Since inception on 19 September there have been 95,000 views from 34,500 visitors”
Does that mean 34,500 different users visited, on average, once a week? Not sure how to extrapolate these kind of numbers. Seems kind of high.
StevieBC 6th October 2015 at 3:57 pm #
——————
RIFC and TRFC are at the mercy of shareholders appetite to take on huge risk. The business clearly is unable to trade it’s way out of a loss making position in the short to medium term.
If loans are not provided by shareholders then we move to exactly the situation Whyte faced. The risk though has increased for those contemplating providing these loans. If we take those who have provided loans at face value, then the plan was to provide loans, convert them to Equity and raise furher working capital via a listing .
Therefore , it was accepted the business would not have the ability to repay loans and they had to be converted to Equity. Given the uncertainty over whether Green’s legal fee’s have to be met and unknown total cost, potential lenders don’t know how much may be required. In essence any money provided now may be nowhere near enough to keep the business running if Green’s fees have to be met and are substantial.
Then you have the upcoming trials which may result in a issues over the IPO and the assets which underpin the balance sheet. In other words accepting Equity in RIFC in return for loans may turn out to be akin to investing in a Madoff Ponzi scheme. That’s the dilemma for potential lenders. The business can’t afford to repay you and the Equity could turn out to be utterly worthless.
The uncertainty of outcome over the trials and Green’s fees make the loans off the charts risky. Doesn’t matter if you control the board, you don’t control the outcome of the trials and the Green fee issue. The risk has increased substantially since lenders provided money previously in March and May. Despite the pathetic efforts of paid liars to attack the messenger, being unable to dispute the issues, Rangers fan investors need to understand this risk. The only comment coming from their board is being provided by a man who doesn’t hesitate to lie and as a Judge said, and i paraphrase. “nothing he says should be accepted without documentary proof”
IF you want to be taken seriously as a business don’t put up a criminal liar to pitch your case.
‘The Sevco Shuffle’ still there is you just go to the main page (or that works for me!!)
https://johnjamessite.wordpress.com/
Auldheid 6th October 2015 at 4:43 pm #
TallBoy Poppy 6th October 2015 at 4:45 pm #
https://johnjamessite.wordpress.com/2015/10/06/the-sevco-shuffle/
Try this, the previous link was faulty.
wottpi 6th October 2015 at 4:52 pm #
Just saw your post. Snap
Thanks, guys.
So, what happened to the stake in 5088 held by Korissa Capital Inc, Willow Int. & Liberty Capital Markets Ltd, as per their annual return filed in November that year?
From here- https://www.scotcourts.gov.uk/current-business/court-rolls/court-roll?id=031deca6-8980-69d2-b500-ff0000d74aa7
Glasgow HC Case Session Date Proceedings Case Reference PF Reference Court NameHMA v Sheik AHMAD 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v Paul CLARK 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v Charles GREEN 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v David GRIER 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v Thomas MCPHEE 16-OCT-15 Criminal Preliminary Hearing SCS/2015-118374 HM15007644 Glasgow HCHMA v David WHITEHOUSE 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v Craig WHYTE 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HCHMA v Gary WITHEY 16-OCT-15 Criminal Preliminary Hearing SCS/2015-116564 CO14000356 Glasgow HC
I don’t recognise the name “Thomas McPhee” in connection with this saga. Can anyone help, or is his unconnected case just accidentally mixed in with the rest?
Just a thought fuelled by paranoia.
Is is possible that John James is going to be airing opinions that are deliberately prejudicial to legal proceedings?
Imran Ahmed is already claiming that his absence from Scotland results from a lack of faith in the authorities here.
The larger the audience that JJ can deliver, the greater the possible impact on proceedings.
If that were the agenda, who would benefit?
Could be this guy, Neepheid
Hamilton Murder
neepheid 6th October 2015 at 6:03 pm #
——————————
McPhee’s case reference is different from the rest
Neepheid
It looks like there are different reference numbers. The names are listed alphabetically, not by case I think.
With regards John James latest blog, do you think he realises that contempt of Court is a rather serious offence and that it can be punished by a term of imprisonment.
If you are reading this can I point you to the COPFS release
http://www.copfs.gov.uk/media-site/media-releases/1140-indictments-served-in-rangers-case
In particular
“We would urge everyone who plans on publishing information on this case, including journalists and social media users, to bear in mind that the case remains live for the purposes of Contempt of Court and nothing should be published that might prejudice the case.”
If nothing else you really need to reconsider things like the last paragraph.
scottc 6th October 2015 at 6:24 pm #neepheid 6th October 2015 at 6:03 pm # I don’t recognise the name “Thomas McPhee” in connection with this saga. Can anyone help, or is his unconnected case just accidentally mixed in with the rest?Could be this guy, Neepheid Hamilton Murder
============
Thanks for that, it kind of puts financial shenanigans into perspective.
For me the last JJ paragraph confirms when is what he says he is not any kind of “timposter” hater for he believes that he is protected under the RRM clause of the Scotch Constitution.
It was here, that I first became fully aware of the enormity of this story and just how awful the media in our part of the world was.
rangerstaxcase
Not Long To Go
24/03/2012 2,177 Comments
On Tuesday this coming week, this blog will celebrate its first birthday. Thanks to the assistance of so many informed and intelligent posters, this blog has played an outsized role in awakening a sleeping public to the crisis that would soon envelope Rangers Football Club. The arrival of the cavalry in the form of BBC Scotland and, latterly- the English media, means that this blog has achieved its central goal.
It was with particular satisfaction that I read the thoughts of Alex Thomson of Channel 4 on the Scottish media. In many ways, the actual implosion of Rangers has become a sideshow in this story. The enemy here is not Rangers FC or its fans, but the corruption of our national media. A free press is essential for the healthy functioning of any society and, to paint with a broad brush, Scotland does not have a healthy, functioning free press that can be trusted to challenge vested interests or investigate corruption.
Not all are tainted by this embarrassment. Mark Daly and BBC Scotland should be singled out for praise. While so many others copied & pasted our work on this blog (with only the editorial tone being changed), the BBC Scotland team conducted a real investigation of their own. I would like to think that the work done on this blog helped convince them that this story was worth some time, but they picked up where we left off and got to the bottom of issues where we amateurs only found strong suspicion. (Graham Spiers’ refreshingly honest admissions to Alex Thomson are also worthy of note, but he has not been as willing to discuss this subject as openly with his colleagues on Radio Clyde).
What is really startling is how few others did any work. The Daily Record is still being fed through the umbilical chord by former Rangers directors in the form of The Blue Knights consortium. They are bound to be a font of truth. Even now, the Daily “off-the-radar wealth, billionaire” Record acts as an agent for those wishing to blame Craig Whyte for all of Rangers’ troubles. These are the same people who presided over a decade plus of maladministration. The Scottish editions of The Sun and The Daily Mail have produced some good stories, but have failed to follow them up or shown much interest getting to the heart of it all.
It struck me as surreal that last Monday afternoon alone I spent more time talking with various English journalists than I have with all Scottish media outlets combined in the last year. Without the story of the corruption of the Scottish media, this would have been a parochial sports story of no more interest in London or Manchester than today’s Kilmarnock vs. Motherwell game.
The year long history of this blog should tell any objective reader that we have information on this story and know how to interpret it. Yet only one Scottish journalist has contacted me to discuss this case. Over a dozen journalists from outside Scotland were able to get in touch. That tells its own tale. The Scottish media- tabloid and broadsheet & sport and business- do not want to cover the biggest story in the history of Scottish football or the biggest Scottish business story since the Darien Disaster.
The recent attention garnered by Rangers’ long-predicted descent into crisis presents this blog with an existential crisis. When no one would publish the story, blogs were the best way to get the story out. As our first birthday beckons, there remains just two tasks before we wrap up this project:
– Stitch the whole story together in the form of a book – Create a lasting online memorial to the failure of the Scottish sports media
The die is cast in the rest of this story. The First Tier Tribunal outcome will determine the size of Rangers’ debt to HMRC. HMRC will decide whether a pennies on the pound is better than nothing or whether they see dangers in Rangers being seen to have “gotten away with it”. The people who will decide these matters will know the facts and will likely have already decided how they will proceed. We have little to do here.
With contempt for the Scottish media beginning to spread far and wide, our work is nearly done.
Barcabhoy 6th October 2015 at 6:31 am #
In summary the business needed £3 million at the end of October 2014, a further £2 million in January 2015 , a further £1.5 million in March 2015 and a final £3 million in May 2015.
======================================================================
IIRC this period also saw a cash injection of £1.3m connected with Ibrox use as a venue during the commonwealth games.
Not sure if any substantial costs associated with this, but if not then the gap in their finances is even worse.
bfbpuzzled 6th October 2015 at 7:53 pm
“Scotch Constitution” … stop it right now, it’s not big and it’s not clever.
The whole thing re whether Rangers supporters should want Green et al prosecuted / convicted is actually quite interesting. On the face of it they may see it as a form of revenge (albeit the majority of the support seemed to back the last two de facto owners).
However if they are convicted that would surely have at least two serious consequences.
1, It may make any cash raising exercise even more difficult than it already is. Who would want to put money into such a business.
2, It may cause even more doubt with regards who actually owns assets and cause years of court cases to sort that particular situation out.
The whole farrago could become even more complicated. In fact Mr Green’s middle name may be appropriate with regards how this particular gordion knot will have to be unraveled.
parttimearab 6th October 2015
As discussed yesterday, we can argue the toss about how many millions it is but the fact remains that it will be millions that are required to keep the lights on this season and the likelihood is that, without a combination of austerity and major funding, it will be millions that are required year on year.
A full Ibrox and the manner in which Murray Park is run is as much a millstone around the clubs neck as it is a benefit.
The more folk that come through the door, the more the fans will want (or should that be demand) success. The more they want success the more they have to pay for players, the more they pay for players the more those players will expect top class training facilities. The more they pay for players and training facilities the more debt they will get into.
As opposed to immediately chasing Celtic as is the want of DCK, a far more measured approach is required. This was mentioned fleetingly by mini Murray and more so by Douglas Park but the Level 5 puff pieces and talk of magic hats appear to be the flavour of the month.
Unless they manage to get a large cash cushion from somewhere and that is managed and maintained in a sensible manner, history is just going to repeat itself.
Woodstein,
That article by RTC captures the essence of what it’s been about for the last decade.
Those who who have commented at length and over time , in my experience were mostly brought to comment by the same reason
They knew MIH was a house of cards and David Murray a braggard .They knew the hover pitches and casinos were fantasy , as they knew Murray’s claims of soon to be running a £1 Billion empire was utter nonsense. They also knew the SFA would do nothing . They and the SPL were firmly in Murray’s pocket . All fully on board with the spin and totally unconcerned with the horrendous financial results . They never even attempted to control referees in the Mowbray season , when Rangers ,desperate for CL group money, were being given ludicrous changing decisions almost every week
Articles were written by fan communities and bloggers which proved MIH was going to go bust , years before it did .
The media , almost to a man , ignored it or scoffed at it. This was a media who’s readership was multiple times larger than it is now. Technology was always going to reduce sales , but the proven failure of the media to get key stories correct and a cowardly refusal to criticise Murray ,honourable exception of Tom English , left them with a readership which can only attract a limited range of advertisers .
History repeated itself with Whyte and Green and is doing so again with King. There is a point blank refusal by Editors to investigate properly.
Worth asking the question to the bears though, is it worth it just for one last leg up to the top division. If history is going to eventually repeat anyway is it easier to try to address it from the top looking down, or, as you say, tighten the belt and see what happens. I suspect the majority answer will still be in the former. It is after all, only money, and somebody else’s at that.
Barcabhoy 6th October 2015 at 10:02 pm
I can actually remember when I first realised that the Murray Empire, as we were led to believe it was, was actually a load of bunkum.
At that time MIH were something like £750,000,000 in debt to HBOS. Yes that’s three quarters of a billion pounds.
At the same time we were told that one of the subsidiaries, Rangers (the one now being liquidated) was seeing it’s assets raising in value in the accounts, Ibrox stadium had a particularly meteoric rise. At that time I was naive enough to think that the value of a property was what someone thought it could be sold for (as opposed to what they thought it might cost to rebuild it). Mad I know, but those were simpler times. I didn’t realise what charlatans valuers really were.
Client – How much is this worth?
Valuer – How much do you want it to be worth?
It turned out that in 2003 the “value” of the stadium had gone up from £85,000,000 to £120,000,000 in the accounts. I couldn’t help but think, why on Earth has Ibrox stadium risen in value from £85m to £120m, and increase of £35m or 41%. How does that work, what sort of valuation madness is this.
My only layman’s conclusion was that David Murray must need it to be valued at that amount so that the assets and liabilities of MIH were not so far apart as to demonstrate that his “empire” was in fact trading whilst insolvent, that his liabilities were higher than his assets.
It was only later that I discovered people seemed not to worry about balance sheet insolvency. It was only when a business was “cash flow insolvent” that anyone really cared. When they couldn’t pay their bills as they fell due.
Cash flow is apparently King. Particularly with no line of credit.
We live and learn.
this mcglennan character at the sfa appears to have charged houston with inferring that the officials at ibrox were bias AND incompetant at ayebrokes on saturday…… I played sport for over 50 years and encountered officials who were biased and those who were incompetant BUT never did i meet one who was both….
fyi mcglennan to be bias you have to know what your doing and to be incompetant you have to not know what your doing….. that loony vincent was horrific as your predecessor but …….
Homunculus
I remember tracking the Murray empire and noticed the debt increase when it hit just over 200m,at the same time he had started to sell off his prized assets,Murray Metals etc ,in fact there was only two big sellers MM for approx 120m and another in the following years accounts for circa 90m,in between he bought out small steel companies for pocket money ,but ,who supplied the money to buy these small companies out,a certain bank,no doubt,now due to forth coming court cases I can only speculate who cut their teeth on a asset stripping ,and who the merlin teacher was,but this was Tommy Cooper magic,not real magic,and now ,well,it’s more not now you see it ,now you don’t ,but you should have seen it ,more fool you.
I notice another puff piece in today’s Herald from Chris Jack. If the time ever comes when the media want to tell the truth about Rangers (don’t laugh), I hope the likes of Jack have got something else to fall back on.
I guess I’ve just wasted time typing those three lines. Off to work now, have a great day everyone.
http://www.thescottishsun.co.uk/scotsol/homepage/news/6678620/Bluedunnit.html?CMP=spklr-_-Editorial-_-TWITTER-_-ScottishSun-_-20151007-_-SunScotNews-_-250685079-_-Imageandlink
SFA chief exec Stewart Regan and SPFL counterpart Neil Doncaster have been contacted too.
Looks like the trial of the century!
neepheid 7th October 2015 at 10:05 am #
Edit.
SFA chief exec Stewart Regan and SPFL counterpart Neil Doncaster have been contacted too.
Looks like the trial of the century!
*****
Perhaps the scale of this case is the reason why clubs and the responsible wings of the media have backed off from exposing wrongdoings.
The story was too big to be ignored by non conflicted elements of the media.
I imagine football insiders realised from an early stage that there was a strong possibility of legal proceedings.
Too many stakeholders lost out of money and football honours, to let it lie.
That, at least, is my fervent hope.
First of all I notice the use of the word potential, as in, here’s a list of all the names we could think of…
Secondly, does Ogilvie not even merit a mention?
Thirdly, Greig? Not sure what part of the fraud he would have been witness to? Other than a fairly predictable “I could tell they were wrong ‘uns from the start.”
and fourthly..will that be Smith fresh from the Green Hearing, and his statement entitled, why I signed off his Liability Insurance!