Comment on Whose assets are they anyway? by torrejohnbhoy(@johnbhoy1958).
Methilhill Stroller 12th November 2015 at 1:59 pm #Whose Assets are they anyway? It seems from the reports from JD and JJ that “Charles Green acquired the assets of Rangers for Sevco Scotland, which holds them to this day.” I am sure as DP said the squirrels, cats and pigeons are all having a fun day in court but does that go some way to explain why nobody can use the crumbledome as security????? It might be a very interesting afternoon!!! Looking forward to the summing up tonight or whenever his Lordship makes his call on this.
Going back a bit with this,and this has been discussed on here in the past.
Around the time of the name change from Sevco Scotland to TRFC,supposedly to register the business in Scotland,Green announced that this required the transfer of “certain” assets to TRFC.Note he didn’t say all assets.
Maybe nothing but is it possible that some assets,like Ibrox still reside with Sevco Scotland(John Browns rant)?.
I know records may differ but such is the stream of misinformation wrt this basketcase nothing would surprise me.It may also explain the reported £278k per month leaving TRFC.A hidden rental charge,perhaps?.
Whose assets are they anyway?
While we’re discussing Ashley.
RST Statement on Sports Direct Following 2015 Annual Report
Following the release of Rangers accounts for the year ended June 2015, we feel it is important to highlight the ongoing disgrace of the Sports Direct merchandising deal – facilitated through a clearly dysfunctional Rangers Retail joint venture.
As has become customary, there has been a degree of misinformation spread in the days following the release of the accounts. Those who seek to talk up this deal with inaccurate analysis are no friends of Rangers Football Club.
In the year ended 27th April 2015, Rangers fans spent £4.262m on merchandising. Rangers’ accounts for the year ended 30th June 2015 show only £301k profit attributable to the club. This means that for every £10 spent by fans, the club benefited by only 71p. If we were to use only the 7 month figures shown in the accounts then the club benefited by only 50p per £10 of revenue.
The figures flag up serious issues with the Sports Direct stranglehold over profit distribution from Rangers Retail. Sports Direct, having failed to pay out any significant amount in 2013 or 2014, decided to pay a dividend following the deal put in place by Derek Llambias and Barry Leach which saw the Sports Direct share of those dividends raised to 75%. This meant Rangers received only £300k when, if the dividend had been paid prior to that deal when funds were available, the club could have received £600k.
Whilst this would still have been a paltry amount, the timing of this deal and the subsequent dividend payment are highly questionable and in our view demonstrate more appalling business practice from Sports Direct. Any dividend payable to the club from merchandise profits is entirely at the discretion of Sports Direct. They have failed to pay out any significant dividend to Rangers since the inception of the deal.
The Sports Direct arrangement remains terrible for Rangers and fans should be aware that any official merchandise purchase, from any retail outlet, is simply strengthening the ability of Mike Ashley to hold our club to ransom.
We would urge fans not to buy any official merchandise until there is a comprehensive revision of the existing deal.
– See more at: http://www.therst.co.uk/news/rst-statement-on-sports-direct-following-2015-annual-report/#sthash.Apcpvipg.dpuf
Whose assets are they anyway?
Firstly,congratulations to the blog on it’s incorporation.
For future reference,just remember that a “Football Blog,once incorporated,is indistinguishable from its corporate entity!!!.
easyJambo 6th November 2015 at 10:13 am #Attachment 2015-11-03-Mike-Ashley-appointment.pdf
wottpi 6th November 2015 at 9:38 am # I note it is being reported that Big Mike has gone an appointed himself to the board of Rangers Retail Ltd Seconds out, Ding Ding!! ======================= AP01 attached
I wonder if Mr Ashley is positioning himself to take full control of RR.Relationships have obviously broken down and if I recall correctly,he can buy what he doesn’t own for 50% of last years profits.
May not be much more in it for him financially but it would fire a mighty warning shot against those standing in his way.
Whose assets are they anyway?
From The National:
Martin Hannan: Benefits of breaking tax rules can be seen in Rangers trophy room November 5th, 2015 – 12:33 am Martin Hannan CONSPIRACY theorists fixated on Rangers FC, a body of people of which there is no shortage, will no doubt point out that the result of the “Big Tax Case” just happened to be released on the morning Her Majesty’s Revenue and Customs were going to be savaged by MPs over their failure to chase up tax avoiders.
The parliamentary kicking duly occurred, but in a clear damage limitation exercise, the BBC and others were pointed in the direction of Ibrox where HMRC were able to say with justification that they had chased down a very serious case of tax avoidance.
A piece of PR manipulation, certainly, but anyone who thinks that Rangers’ high profile was the sole reason why HMRC went after them just doesn’t understand the Revenue’s motivation – money.
Employee benefit trusts, as any Private Eye reader could tell you, have been in HMRC’s gunsights for many years, as they have always thought them a tax dodge, a way for employers to give extra tax-free bonuses to their favoured staff – the clue is in the name, after all.
The principal reason HMRC appealed again after losing twice in the courts was the eye-watering sums involved – Rangers’ estimated
£75 million debt to HMRC, including interests and penalties, is the tip of a £1.3 billion iceberg, the sum which HMRC has already recovered from 1500 users of EBTs.
Had HMRC lost, tax lawyers everywhere would have sued for the return of their clients’ money. HMRC had to be seen to be fighting for every penny, and the highest court in Scotland has backed them.
So what next for Rangers? More pertinently, perhaps, what next for the many people who received money through EBTs while in the employ of Rangers? Oldco Rangers are in liquidation, owing many millions to creditors. As the employer it had a duty to collect and pay income tax on the sums paid to employees.
Yet is it not the case that Rangers’ EBTs were paid as loans, not salary, and therefore the liquidators now have a duty to call in those loans? A lot of former players and staff will be worrying about that point this morning – HMRC will do anything to get their money.
As for the current Rangers FC – the £7.5m annual loss announced yesterday is not an insurmountable problem as long as they win the Championship this year, something chairman Dave King has said is “non negotiable”.
He and his fellow directors will stump up the £2.5m needed to keep the club afloat until the end of the season, though they may have to shell out a lot more than that for Premiership-class players next season – the acid test of King’s reign.
The fly in the ointment for Rangers is Mike Ashley who is determined to humiliate and beat down the chairman. Now the Sports Direct tycoon, according to one source, would “happily see him in jail”.
A hearing on December 9 will see Ashley’s lawyers tell the High Court in London that King breached a court-backed order that gagged the Rangers board from discussing the club’s business with Sports Direct.
While it is unlikely King will be jailed, Ashley will have his day in court and make his point, and will still have a stranglehold on Rangers’ income from their branded sportswear.
More damaging to Rangers as a football club, as opposed to oldco, newco or whoever owns it, are Lord Drummond Young’s words in the Court of Session judgment: “So far as the footballers are concerned, at least, it seems to us that if bonuses had not been paid they might well have taken their services elsewhere.”
That sentence is absolutely devastating to the reputation of Rangers, at least in the decade that saw them win four titles and reach the Uefa Cup final under Alex McLeish and Walter Smith in his second spell as manager.
What the judge is effectively saying is that Rangers partly bought the services of those players using a scheme that broke tax rules.
Without them, it is possible and maybe even probable, that they would not have won the SPL title in any of the four seasons that Rangers won it between 2001-02 and 2009-10, covering the years in which the EBTs operated.
That is what will concern most football fans today – that learned judges have pointed up the fact that Rangers benefited from breaking the rules. It is surely a short step from there to an accusation of cheating.
THAT Debate, and the Beauty of Hindsight
easyJamboMay 3, 2017 at 10:11
torrejohnbhoy(@johnbhoy1958) May 3, 2017 at 10:00 Good morning all. not been as active on the site lately as I would like.Grandparent duties seem to be more time consuming than I thought . Trying to keep up to date though. Thought it may be of interest to some that it appears someone has successfully petitioned the court to have MIH(IL) re-instated at Companies House,9 months after being put into liquidation. ============================== I have an hour or two off grandparenting duties just now before a nursery pickup, so I’m catching up too.
That is an odd one re MIH. There is no indication on the document of who has requested that the company be reactivated, or why. Perhaps it’s been in Bill Miller’s incubator for the last few months, and is ready to emerge as a healthy new company having been cleansed of its tarnished past, not to mention £700m of debt.
Sorry for taking a while to get back,EJ.If I’ve mastered this link pasting thing you may find some more info here:
THAT Debate, and the Beauty of Hindsight
Good morning all.
not been as active on the site lately as I would like.Grandparent duties seem to be more time consuming than I thought.
Trying to keep up to date though.
Thought it may be of interest to some that it appears someone has successfully petitioned the court to have MIH(IL) re-instated at Companies House,9 months after being put into liquidation.
Small Price to Pay?
SmugasFebruary 7, 2017 at 16:35 Rate This
Cant do linkey things but BBC reporting BDO are going after D&P.
Here you go:
The liquidators of Rangers Football Club plc have launched a multi-million pound legal action against the company’s former administrators.
The claim has been lodged by BDO against Paul Clark and David Whitehouse of accountancy firm Duff & Phelps at Edinburgh’s Court of Session.
BDO are seeking up to £28.9m following Clark and Whitehouse’s handling of the administration process.
Rangers entered administration in February 2012.
Four months later, the company’s business and assets were sold to a consortium led by Charles Green for £5.5m.
BDO were then appointed as liquidators, and have since conducted a review of the events leading up to administration through to the sale of the assets.
‘No other option’In November 2014, BDO agreed a settlement for £24m in a claim against Collyer Bristow, the legal firm that acted for Craig Whyte in his purchase of Rangers Football Club plc from Sir David Murray in May 2011.
Those funds were added to the creditors’ pot, as will any monies raised from the legal action against Clark and Whitehouse.
In a statement, BDO said: “The joint liquidators, following extensive deliberations with their professional advisors and the liquidation committee, have taken the decision to issue a claim against the former Rangers’ administrators Paul Clark and David Whitehouse, of Duff & Phelps.
“During the course of the liquidation, questions have arisen regarding the strategy previously adopted by the former administrators, which have not, to date, been adequately answered.
“In seeking clarity, the joint liquidators have been left with no other option but to pursue the matter via the Scottish Court. The joint liquidators look forward to the resolution of this matter.”
Criminal charges against Clark and Whitehouse relating to their involvement with Rangers Football Club plc were dropped in June 2016.
Duff & Phelps have been approached for comment.
Peace – Not War
It seems this mornings RIFC AGM can be summed up as follows:
1. It’s Ashleys Fault.
3.We’ll need to borrow more for the forseeable future.
No word on Res 11 with result of the vote to be announced next week.I’d have thought by now the RIFC board would have an idea of how things stand.They did say that the Ashley/Easdale alliance would not be supporting the resolution.Same old stuff about “getting back where we belong”,challenging CFC & competing in Europe.No one explained how admitting that borrowing will need to continue for seasons to come sits with UEFA & their FFP regulations.I’m sure the SFA are on this as we speak.
No real sign of drum beating,though.FWIW.the directors looked broken when boarding the bus when leaving the Armadillo.They couldn’t look anyone in the eye.No statements,smiles etc.Mark Warburton even had a “minder” when being interviewed.
Normally,reading between the lines I’d have said they’ve lost Res 11 but with most things RIFC/TRFC,you just don’t know.
Peace – Not War
Interesting wee twitter debate earlier wrt a hypothetical insolvency event at TRFC and what the penalty would be.
If a new club,then 15 points but if the same club then 25.
The problem for the SFA(maybe why Regan’s a target) is that if they don’t administer a 25 point penalty then how do they explain 15 without admitting TRFC are new,something they have refused to do for over 4 years.If they did go for 25,they would then face the wrath of the TRFC fans who believe that,although they’re the same club,it should be 15 points because the club wasn’t liquidated last time,just the company!
Their refusal to apply the rules last time and then be a willing accomplice in a plot to lie to every football fan in Scotland has left them between a rock & a hard place.There’s no way out.