The Bank, financial doping and moral hazard

955

Dundee United chairman Stephen Thompson’s comments to yesterdays’ Herald are worthy of attention.  During the summer, when United received a £1m bid from Rangers for David Goodwillie and Blackburn Rovers were hovering, Bank of Scotland, took an active part in the deliberations.  Thompson told the Herald, “The bank wanted me to take £1.2m for him, but I said no to that. I had to stand up against the bank.”

Thompson more than doubled the money on offer for Goodwillie, allowing him to shave over £2m off their bank debt, but this exchange took place only a few months after the same bank told former Rangers chairman, Alastair Johnston, to accept the bid for the club from Motherwell born thousandaire Craig Whyte or the bank would demand same-day repayment of Rangers borrowings.

Bank of Scotland, part of Lloyds Banking Group (LBG), are significantly exposed to Scottish football and required a taxpayer bail-out two years ago, so although their interference in the running of clubs could seem overbearing, we shouldn’t be surprised at it.  It’s business, and if you are employed at LBG with a responsibility to your taxpayer-shareholder, it’s necessary business.

Fortunately, Celtic are free from such interference, as are Rangers, thanks to their aforementioned benefactor, but if a liquidation event at a large club threatened income streams to the league I would be amazed if the Bank didn’t use the ‘Vote Newo FC  into the SPL or repay your borrowings immediately’ line.

Stephen Thompson, who sits on the SPL board, might not have a choice on whether or not to vote a Newco FC into the SPL ahead of 30 Scottish Football League clubs, but he and his fellow board members will be able to set the tariff on any exceptional league entry to what would become a financially privileged football franchise.

12 seasons of cumulative benefit from financial mis-dealings should result in 12 seasons of penury at whatever points rate the league calculate benefit was accrued.  For one scenario I have in mind, around 15 points per season sounds fair, with an expunging from the records of any trophies ‘won’ by Financial Doping.

This is measured, deliverable, is in the power of the SPL board to impose, and sets a minimum moral hazard to inhibit future mis-deeds.

You can order a hard copy of CQN Magazine, issue 5, with credit/debit card or Paypal and buy direct from the UK for only £3.50 + £1.50 postage and packing.  Shipping costs £2 to ROI, £3 to Europe and £4 to elsewhere.  Click on the link below to order.

Click here to view the new issue of CQN Magazine online for free. You can support the online edition by making a discretionary donation here.

[calameo code=000390171224afb293e4a lang=en page=50 hidelinks=1 width=100% height=500]
Click Here for Comments >
Share.

About Author

955 Comments
  1. Pages:
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. ...
  10. 26

  1. dirtymac – For money surely?

     

     

    Or handsome podium winners. (thumbsup)

     

     

    The Spirit of Arthur Lee – I can’t hear that song now without thinking of Bill Shatner’s definitive version. (thumbsup)

  2. Paul

     

     

    I was taken by your suggestion that you ‘would be amazed if the Bank didn’t use the ‘Vote Newo FC into the SPL or repay your borrowings immediately’ line.’

     

     

    You may be proved right, but would the bank be prepared to face the political fall-out from such a move, all for the sake of a relatively paltry sum for a bank of its size?

     

     

    Or are you inferring something else … ?

     

     

    FF

  3. If Newco becomes reality then there is absolutely no doubt whatsoever that they will be given access back into the SPL, and with minimal punishment.

     

    I would accept 15 points per season for 12 seasons and removal of all titles won in period of financial doping, but there’s not a hope in hell of that happening.

     

    25 points for one season max., 10 points if they can spin it as being positive for the game.

  4. Ten Men Won The League on

    This from KDS yesterday. Made me laugh

     

     

    Apologies if posted earlier

     

     

    ergusdaddy Yesterday, 8:44 PM Post #122

     

     

    Dignity (F.C)

     

     

    There’s a man you’ll meet

     

    On a Govan Street

     

    He’s a shyster and a conman

     

    Has been 20 years

     

     

    And he takes no bills off nobody

     

    His morals in the gutter

     

    He’ll buy your company

     

    And then pull down the shutters

     

     

    He’ll pre-pack your club in a body bag

     

    The children call him Googly

     

    He never lets on

     

    But then again why should he?

     

    He won’t tell you the secret

     

    Of the black hole in his kitty

     

    He’s waiting for a tax bomb

     

    Then he’ll shut down Dignity

     

     

    And all along the west coast

     

    In villages and towns

     

    They think he’s the Whyte knight

     

    But they’re effing clowns

     

    They don’t ask about his billions

     

    I say, he’s got no money

     

    It ain’t gonna be pretty

     

    The end of Dignity

     

     

    And we’re telling this story

     

    And it isn’t a dream

     

    It’s not in the papers

     

    Just here and RTC

     

    And I think of them gone

     

    And all that that means

     

    There’s no place in the future

     

    For Dignity

     

     

    And all along the west coast

     

    In villages and towns

     

    They will all be raging

     

    The place will get burnt down

     

    They’ll ask “how could this happen?”

     

    We’ll say, “give Liz her money!”

     

    And isn’t it funny

     

    The end of Dignity

     

     

    Wind them up, wind them up, wind them up,

     

    wind them up, wind them up, wind them up!

     

    Don’t come back again, don’t come back again,

     

    don’t come back again, don’t come back again!

     

     

    And I’m thinking about pub

     

    And I’m thinking about beer

     

    I’m not thinking about work!

     

    And I’m thinking, how good it will be

     

    To be here some day

     

    Without a team called Dignity

     

    A team called Dignity

     

    That team.

  5. Paul67 – 12 seasons of cumulative benefit from financial mis-dealings should result in 12 seasons of penury at whatever points rate the league calculate benefit was accrued. For one scenario I have in mind, around 15 points per season sounds fair, with an expunging from the records of any trophies ‘won’ by Financial Doping.

     

     

    What if castle-owning billionaire Ibrox supremo Craig Whyte rejects that penalty? (thumbsup)

  6. LiviBhoy

     

     

    I hope your right! Although as much as i want him we never seem to get things done quickly & i reckon he will end up at an EPL Club. HH

  7. pedrocaravanachio67 on

    Joe Filippis Haircut

     

     

    I havent looked at the stats but seem to remember hearing prior to Christmas that he was out of favour and on the bench quite a bit. We could take him on loan till the end of the season with an option to buy. This would be a win/win for Celtic, as it would give us a quality striker and more time to scout somebody else for long term purposes.

     

     

    My prefered choice would be Rhodes, but the fact that there were 8 EPL clubs watching him bang in 5 last week, tells me we wont be able to compete with transfer fee and wages.

     

     

    PC67

  8. Just got the CQN magazine through the letter box.

     

     

    Quality Paul67

     

     

    Keeping the faith

     

     

    Mtt

  9. Folly Folly – would the bank be prepared to face the political fall-out from such a move

     

     

    Yes, I believe they would.

     

     

    Most of Scotland wouldn’t be too upset to see Huns Reunited ushered into the SPL anyway. (thumbsup)

  10. The Bhoy from the Village on

    Paul67 I understand where your coming form on this issue, your hypothesis is a pragmatic approach. For myself emotion takes preferance for pragmatism, if Rangers Newco enter immediately into the SPL, then I would want Celtic to resign immediately and make application to any other league in Europe who would take us even if it means starting at the bottom of the pyramid

     

     

    If the SPL has a finacial collapse due to no Rangers the effect of no Celtic would be equally devastating. The option of not admitting Rangers Newco maintains the sporting integrity. If the other teams elect to vote for Newco they should be aware of the intent for Celtic to walk away

     

     

    In the unthinkable scenario that Celtic vote for Newco, then sadly I will walk away

  11. The Honest Mistake loves being first on

    Paul67,

     

    It sounds like a stitch up.

     

    What if the banks demand that a three season (or even a one season) penalty is enough? What do we do then?

     

    Its dawning on me that the only way is out. Who will take us?

  12. Paul67 – Only in Scotland would there be a debate regarding whether cheats should prosper or not.

  13. brimmer 'kano 1000' on

    Blatant re-post but it is funny..

     

     

    Dring Dring: “Bonjour ..Sochaux’s General Manager speaking…

     

    ‘ow may I help you”….

     

    Glasgow Voice: ” Aye hello…dae ye speak English an’ at “?

     

    G.M. : “Mais ouis..and better than you I am thinking”…

     

    GV: “Great…listen ah’m fae Glasgow Rainjurs an’ ah wonder if ye could do us a favour”…

     

    G.M.: ” What are you after please “?

     

    G.V.: ” Could yous kid on that ye want to sign Maurice Edu” ?

     

    G.M.: ” Maurice …who”??

     

    G.V: “E…D…U…”

     

    G.M.: “Never heard of him..but go on please”..

     

    G.V.: ” It’s like this..we’ve nae dosh and nae prospects either…but tae keep the Bears happy we’re trying tae put oan a face that says we can refuse offers fur oor players”.

     

    G.M.: ” Zeez Bears you are keeping ‘appy…will they believe this”?

     

    G.V.: ” Listen..efter the pish we’ve fed them …they’ll believe anything…honestly”…

     

    G.M.:” Purely in the interests of Scottish/ French relations I will agree to this madness..So we will offer..say.. £2 million to begin with…

     

    G.V.: ” TWO MILLION…??…Naw fur feck’s sake naebody will believe that. Start oaf at £500, 000…we’ll knock that back..

     

    then you can come back again wi’ an increased offer..which we wull knock back again…and ra Bears will be chuffed tae feck”

     

    G.M. : “Oh very well…but I have to say …if zis is how you conduct your business ..I can’t see you being in business much longer..Au Revoir..”

     

     

    brimmer

  14. greenjedi says:

     

    12 January, 2012 at 12:34

     

     

    ‘My Fiancees cousin is a Farmer and I know how hard a Farmers life is. They still make a comfortable living, but have to try and come up with different income streams and work long hours in the dark and cold weather.’

     

     

     

    Ask your fiancee’s cousin how much he is paid under the SFPS.

     

     

    The information used to be available on line but the farming lobby put a stop to that.

  15. No. I don’t agree with you Paul.

     

     

    Re-application to the lowest tier, with ‘fit for purpose’ people at the helm of any newco is required.

     

     

    Automatic entry should not be a foregone conclusion either. Many HONEST clubs seek entry and should not be gazumped.

     

     

    As Huns newco visits every ground in Scotland twice on the climb back to the summit they will be giving some payback to ALL who were denied by their lack of integrity.

     

     

    Titles won whilst financial doping should be expunged and the record books anotated as to why.

  16. The Battered Bunnet on

    Paul,

     

     

    I’m not sure that the bank would react in that manner, although perhaps one might asks them. My instinct is that any market which provides advantages to a player for failing corporate governance requirements would be dead in the water commercially. LBG might very well adopt the line you suggest, but commerce more widely is more likely to react in the opposite way. Providing an alternative to LBG might the ticket.

     

     

    On the Newco penalties, I strongly disagree with you (and RTC who shares this view).

     

     

    Football, as with all sport, is competitive at heart. It is the very essence of sport. The reason we are drawn to it and the reason it captivates us.

     

     

    When competition is removed you have nothing more compelling than a pre-season friendly or Auld Firm type spectacle. The very worst thing the crisis torn SPL can do is to remove competition from their league at the same time as removing corporate oversight and accountability.

     

     

    (Just considering that last sentence is quite unsettling.)

     

     

    If some Newco Rangers are to prosper in a future top league in Scotland, the right to compete, and the means to compete, must be earned.

  17. GourockEmerald on the last thread.

     

     

    That’s sad news about your sister, and a long way for you to travel for such a sad occasion. May God rest her soul. May the road rise to meet her.

  18. bournesouprecipe – In order for me to win this podium thing it’s seems I need to be taller, darker and handsomer.

     

     

    Also you need skills… like nunchuku skills, bow hunting skills, computer hacking skills… Girls only want boyfriends who have great skills. (thumbsup)

  19. Philvis, of course I may be wrong, but I don’t agree with you.

     

     

    A few short years ago, when the MSM called the shots through being the only serious source of news and views, then yes.

     

     

    But today? When we (the general public) are far better informed and able to shape the debate … Not so sure.

     

     

    FF

  20. Bhoys.

     

    Have any of you been a corporate guest at Ibrox on derby day. Been offered a ticket. Not sure what to do. Will be with blue noses.

  21. Folly Folly – There wasn’t much outrage from supporters of other clubs when the huns and their media and SFA partners were lobbying for a second extension to the 2008 season. (thumbsup)

  22. For me too many of the strikers we are linked ith are “same as” we have. What we need is an alternative. Tall, physical,decent technique,can hold ball up – a la Chris Sutton

  23. Paul67

     

     

    Ye ye and thrice ye to that …

     

     

    ongoing points penalty and expunge the records

     

     

    tho’ there remains the not insignificant issue of hooky euro entry -I expect some individuals to go after thems and sfa for ‘lost’ income due to champions league dosh

     

     

    HH

     

     

    M

  24. The Bhoy from the Village says:

     

    12 January, 2012 at 12:44

     

    Paul67 I understand where your coming form on this issue, your hypothesis is a pragmatic approach. For myself emotion takes preferance for pragmatism, if Rangers Newco enter immediately into the SPL, then I would want Celtic to resign immediately and make application to any other league in Europe who would take us even if it means starting at the bottom of the pyramid

     

     

    If the SPL has a finacial collapse due to no Rangers the effect of no Celtic would be equally devastating. The option of not admitting Rangers Newco maintains the sporting integrity. If the other teams elect to vote for Newco they should be aware of the intent for Celtic to walk away

     

     

    ———————————————————————————————————————————————————————————

     

    I agree TBFTV.

     

     

    Paul knows one of my wishes is never to have to play them again, whatever guise they appear in.

     

     

    If newpoundland fc is allowed straight in, there is no competition. It would make the injustice and unfairness on the field over the last 124 years seem a mere irritation.

     

     

    To paraphrase Paul himself – and one of his finest lines – Any part of my Club that needs newpoundland is a part of my Club I’d be happy to lose.

     

     

    KiberaCelticCSC

  1. Pages:
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. ...
  10. 26