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It’s about cash, not a seat in the gazebo

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By on CQN BLOG & Comments

Here’s the question: Potential investors offer to underwrite £6.5m worth of shares, around 30% of the club’s equity, at circa 16p per share, and require 2 seats on the board, what do you do?

Money is welcome, but the existing shareholders may consider this particular offer poor value.  The first £3m will go to repay Mike Ashley’s loan, acquired on easy terms and due payable in April, leaving you with a net inflow of £3.5m.  But you’ve flogged 30% of the club to get it.

There’s also the small matter that a net improvement of £3.5m is not enough to save the farm, in fact, it will only keep the doors open for another five weeks.  Five weeks, for 30% of the company.  Is this in the best interests of the shareholders?

If you’re advocating the position of the fans, you’d take the money.  You don’t care how much of the club is given away, or that you’re only kicking the ball down the street 5 weeks.  In fact, you want ever-more of the club to be traded in this exchange, as you don’t trust the current controlling shareholders.  The shareholders will see things differently.

Throughout this episode an arrogant attitude has existed towards those who put their hands in their pockets in 2012, or since, and funded Rangers International FC PLC.  I’m not saying I’d be any different if it was my club, just observing that any attempt to present a solution to the club’s gargantuan problems without recognising – and suitably compensating – the controlling shareholders, will fail.

Ashley can allow his £3m loan to rollover in support of an alternative offer, perhaps from an anonymous offshore entity, respecting the value the shareholders paid when their club needed help most.

I know it’s counter-culture for these types, but why not just offer to buy-out the shareholders at a high-enough rate that they’ll accept?   Like Fergus did back in ’94.  None of these guys are there for the seat in the gazebo, it’s about cash – if you want the club, don’t try to shame them into handing it over, pay them!

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  4. Gene on

    From last thread

     

    an tearmann

     

    think he was asked recently if he had bought or rented a local property – he said he had rented and added “on a short lease”

  7. The Battered Bunnet on

    Paul

     

     

    You ought to know: The gazebo is strictly standing room only. And not particularly safe standing at that once BSR has served himself the wine…

  11. An Tearmann on

    Bsr/TBB

     

     

    Is there any updates/refurbishment re the tented cqn gazebo area?

     

    My concern arises by what was termed a ‘spivouac’ on tsfm.Is this competition for said cqnGazebo?

     

    :-)

     

    HH

  14. Cowiebhoy on

    Paddybhoy1888

     

    Brilliant to see you back on, hope you and family had a great Christmas

     

    How was the wee hotel break ?

     

     

    Hail Hail Bhud

  15. Friesdorfer on

    An Tearmann

     

    Haha, they just don’t get it, do they. Hopefully will continue on the same track, to our delight. Trust you had a good Christmas also.

     

    HH

  16. roy croppie on

    I think the Sevco costs need to be revised, word is the pie and pastry outlay has taken a dramatic downturn this past fortnight saving the new club thousands…

     

     

    dryyoureyeslawnrangerCSC

  18. Gene on

    Paul67 -spot on with your analysis –

     

     

    As the current shareholders voted not to let their shareholding be diluted by an open offer it will be interesting how they will take up their entitlement. After that we will see what’s left.

  21. Macew on

    Morning all,

     

    16 roads thanks for posting that video of Lubo, a real footballing genius with venom in both feet, an absolute pleasure to watch. Can’t help but wonder what R D would have made of him!

     

    H H

  22. An Tearmann on

    Gene

     

     

    I think warnock always sees the bullet coming.it appears his niche is getting teams up from championship then falling on his sword.He will be back with another challenger soon

     

    Hope you and yours had a good christmas

     

    HH

  24. Hamiltontim on

    16 Roads

     

     

    I’d agree with you, Lubo is the most naturally gifted footballer that I’ve seen in the Hoops in my opinion.

  27. leftclicktic on

    IMHO

     

    Parks & co offer is another play by desperate huns who are powerless over spivs devouring the “big hoooooooose” and this is another despertate attempt to seperate the zombies from sevco emotionally

     

    AKA PR p***.

     

     

    3rd Rankers Tick Tock

     

     

    Let the people sing

     

    https://www.youtube.com/watch?gl=GB&feature=related&v=zhkdy0AOpaM

     

    CMon the HOOOOOOOOOOOOOOOOOOPS VVD 11/2 to score anytime in 90mins today

     

    MERRY MATCHDAYcsc

  29. North Cyprus (formerly Baku) Bhoy on

    Season’s Greetings to all – any chance that someone could re-post the link to the Lubo video?

     

     

    Thanks in advance.

  32. Robcfc11 on

    We had a secret Santa gift giving event thingy at our house at Christmas… max spend was £20… I got 25% of Ra gers as my gift… must have been from my 3 year old daughter as she doesn’t understand anything of the value of money.. As I don’t want them I sold them and got a few cigars with the profit…. they’ll last longer.

  33. ItaliaBhoy on

    You are correct Paul.

     

     

    The arrogance comes from those “Rain-jurzz” men who looked the other way when the club was being run into the ground by Murray and Whyte (who can forget Sir Walter’s offer, 24 hours after the bidding had closed?).

     

     

    They seem to expect grubby outsiders like Green and Ashley to just move out of the way when the Brogues turn up at the door.

     

     

    Not once has any of these men actually made a full and fair offer for the shares. Instead, they make derisory offers, then rely on media stooges to exert pressure on the owners (see Matthew Lindsay’s shameful tweet about storming the boardroom this morning).

     

     

    This is what they call “dignity”?

     

     

    Pantomime more like.

  34. leftclicktic on

    Gene

     

    11:28 on

     

    27 December, 2014

     

    Paul67 -spot on with your analysis –

     

     

    As the current shareholders voted not to let their shareholding be diluted by an open offer it will be interesting how they will take up their entitlement. After that we will see what’s left.

     

    NAIL HEAD

     

    The faceless ones were not prepared to share thwe pie wae Ashley and they still have all that the powerless Zombies want

     

    :))))))))

     

    right see yous at the game :))

  35. Robert88 on

    leftclicktic

     

     

    Ashley couldn’t care less who Rangers were or are, I wouldn’t doubt that there is already another Sevco lined up to make the switch over, companies can be created in an instant. the 30% of shares is also not an issue, he could simply just put it in Llambias’ name and do it that way or anybodies name. He controls Sevco and will do as he see’s fit, Dave king and all these other numpties won’t get look in and have never had the cash to do so.

     

     

    He’ll make his money back and that it, good on him, he has no loyalties to these people what so ever.

  36. bournesouprecipe on

    “I don’t know what I find more laughable; the fact that Celtic cannot find £500,000 from their biscuit tin to sign a proven talent like John Spencer, or the fact that they then spent £300,000 on one of Dr. Jo’s old pals, the unknown Lubomir Moravcik!”

     

     

    Hugh Keevins , Sunday Mail; Nov 1998

  40. roy croppie on

    My maw’s wee dug is called Lubo, that’s all you need to know about how good he was. She doesn’t use the names of Celtic greats lightly.

     

     

    reverentialCSC

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