So you buy a business and then find that the entire structure and assets of company are subject to a police investigation, where it is alleged that the assets were criminal acquired. That’s a serious problem, but one which will take several years to manifest. Let’s call that Problem A.
Problem B is that you have also established that the business needs to raise cash. This is an acute problem which will manifest in a matter of months.
What’s the prognosis?
It could be 2018 before a verdict on Problem A, the criminal trial, is reached. If it’s not guilty, there are no consequences. If it’s guilty, the rightful owners of the criminally acquired assets can apply to the court to recover them. This doesn’t mean they will apply, but if they do, it’s highly likely that the court will make the award in favour of the rightful owners.
For our example, the rightful owners are creditors of a failed business, represented by a liquidator. It’s the liquidators job to get as much money for the creditors as possible, and in this instance, HMRC is the creditor with overwhelming influence.
There’s an added complexity. Although none of your directors are contaminated by the criminal investigation, there’s a concern that some of the accused are beneficiaries of shares in the company, or commercial contracts which the company has entered into. In short, the accused have left the stage, but they could still have a considerable financial interest in the success of the business, which may steel the resolve of the most influential creditor, HMRC. HMRC know such tactics well and would be reluctant to allow a convicted criminal to profit from their enterprises.
As far as Problem A is concerned, you have to allow the law to take its course and hope for a not guilty verdict. Should a guilty verdict transpire, you then have to hope to cut a deal with the liquidator (representing HMRC et al) to allow you to continue to retain title to the assets.
If the creditor was malleable, willing to come and go with you, this would be possible. Especially as the liquidator may have the opportunity of pursuing the professional indemnity (PI) insurance of some of the accused, who provided professional services relating to the transaction. Grab the PI money for the creditors and allow you, your shareholders, and the beneficiaries of your commercial contracts, to continue to benefit from ownership of the assets.
A great deal of uncertainty surrounds this, however. You would make it your business to get as close as possible to the liquidator. Make sure there’s no limit to the hospitality on offer, but ultimately, HMRC will decide how matters proceed. It may even be the case that PI money is pursued, and the assets are recovered and put on the market. There will, after all, be an eye-watering level of professional fees to cover.
Problem B is, as I said, more acute. Raising money for a business which is losing money and burning cash is difficult enough, but if there is a possibility the business has been built upon criminally acquired assets, the challenge is herculean.
The criminal trial may not conclude until 2018 (or later), and it could take a couple of years thereafter for the liquidator to petition the court for the assets and then dispose of them. In short, the assets could come back onto the market around 2020.
Problem B is for you to fund a trading deficit until 2018, then hibernate for a couple of years, and bid enough to buy the assets at auction in 2020.
In the short term all you can do is try to convince as many people as possible to become co-investors. Or put the money in yourself, of course (sorry, I know how you feel about that prospect). Then you could shower the liquidator with the kind of corporate hospitality illustrated in The Wolf of Wall St, and hope you’ve got enough credit with them to have them batting for you at the creditors’ meeting.
The prognosis? It’s not the fact that you are possibly trading with criminally acquired assets, or that your entire enterprise could be shut down with the drop of a sheriff’s gavel, that would worry me. There’s nothing you can do about that, so ignore it. The big worry is how raise the £25m to keep the lights on until you discover if you’re business’s founding fathers acted within the law.
Good luck with that.
This is an absolute minefield. No one is in control. Three years ago I suggested the best thing to do was to start from scratch at another location, this is the only way to proceed with certainty.
Share premises in Paisley, or Cowdenbeath or wherever will take you. Hope that you can carry some brand affinity (although clearly you’ll not be able to use any disputed IP, including brand names). Appoint reputable people to your board and get back to doing what you really want to do.
Behold to no one contaminated by the decades of misrule. Cut loose those who hold the onerous contracts. Allow the assets to come back onto the market in due course, knowing that by then you have all the customer goodwill you need to ensure there is no point in anyone bidding against you at auction.
The future will be nothing like the past, but at least you’ll have a future.
Celtic are the first UK club to react to the refugee crisis
“This is absolutely the right thing for us to do. Our club was formed by immigrants, many of whom had escaped the devastation of the great famine.” Tony Hamilton, Celtic FC Foundation CEO.
Proceeds from Sunday’s Jock Stein 30th Anniversary game will go to alleviating suffering of the refugees. The club will appoint a charity with expertise to ensure the assistance is productive.
I know we go on about the Foundation a lot, but it’s the most important part of our club, today and every day. Never let this change.
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FYI
It now seems incongruous to imagine the Republican Shane swanning around in a Union Jack suit but in wearing the uniform of the oppressor he was simultaneously shaming their flag.
Love
Gordon64
Too far buddy. Rioja is never to blame. It’s perfect. Gee me some. I’m almost tee total nowadays. :)
MWD said AYE
TGCW ill give Shane the benefit of the doubt and put it down to ironic nonsense. Shane is a legendary singer poet and drinker. HH
IPADDYMCOURT
I see you made the original post I attributed to Quonno which he agreed with on Res12..
How about a stir fry for you? Sweet and sour words with rice?
Seriously guys you have no idea what’s happening.
I understand it’s frustrating but if the evidence of the last couple of days is anything to go by the flat earthers as in their world view of Celtic is going to require a walk around the block as opposed to a walk across it.
This isn’t about people. It’s a given people make mistakes. They do that by thinking what they do is right, only for reality to say “Oh no it isn’t. ” In that sense Life is a bit of a panto.
It’s about systems and processes and policies that reflect people’s thinking.
If the thinking is right then so are the results produced by the process and policies. Same if thinking is wrong.
The thing about our thinking is that not only do we have the capacity to right think on one issue, we can wrong think on another.
The problem is when we polarise the thinking so that a wrong think means it’s all wrong think or vice versa.
The reality is we have a tremendous capacity for both, but that makes life complicated so we head for one zone or the other and, in the search for simplicity and avoidance of considered informed thought, we label one zone.
Happy clapper Zone the other
Mineshaft Zone.
It’s not like that folks. REALLY!
Not sure if folk know but Shane is in hospital just now after fracturing his pelvis during an ambitious dance move!!!
Moonbeams you are an absolute gent big mhan. HH
Some decent comments tonight, but as usual the board lackeys weigh in with personal attacks at the ones who dare to question the suits.
Gordon64
You said earlier that there were no fascists within the Celtic support, I disagree 100% mi amigo, there are a few posting on here on a daily basis, their posts give them away.
If the truth be know, it’s really not surprising when the suits they are so much head over heels in love with act like they are fascists themselfs.
They only want your money, they care not for the support, they work for the PLC first and foremost, the football team is an after thought, and for anyone to deny that is in serious need of medication.
HH
PS
First drop of rain tonight since April, magic so it is, saved me watering the garden tonight, aff oot to stand in the rain and get wet.
GORDON64
Agree.Remember it was the punk scene and they were very anti establishment even though they would display the rag.
Neganon
Trust me I’d rather not be in a position where I feel the need to get to get involved.
I do think you should.
HAMILTONTIM on 5TH SEPTEMBER 2015 10:24 PM
Bourne
A wonderful gesture but it’s the Foundation who are making it not the club.
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CELTIC FC Foundation today announced that its share of the proceeds from this weekend’s duo of Jock Stein 30th Anniversary events will be devoted to assisting those people affected by the current refugee crisis.
The horrific and heartbreaking scenes which are being shared globally have shown the true extent of this humanitarian crisis, and it is only right that we support those who are in such desperate need in any way we can, particularly given our CLUB`S own beginnings.
Celtic FC Foundation will be partnering with an international aid agency in order that funds raised can be used in the most relevant, efficient and targeted manner.
Celtic Chief Executive Peter Lawwell said: “Having seen the effects of this humanitarian crisis unfold in recent days, we felt as a CLUB we should help in any way we can.
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TET I stand by original post. There are absolutely no fascists anywhere near CP. If there were I wouldn’t be there. HH
Cut and paste:
Q: What is Celtic FC Foundation?
A: Celtic FC Foundation upholds and promotes the charitable principles and heritage of Celtic Football Club. In doing so, Celtic FC Foundation delivers change and purpose to the Celtic Family and beyond. The social principles, key priorities, aims and objectives of Celtic Charity Fund (established in 1995) and the Celtic Foundation (established in 2006) were so clearly aligned, it was agreed that the natural progression was for both units to become a new, stronger Scottish Charity with a wider role and greater reach. This new entity, Celtic FC Foundation is a registered charity in Scotland (number SC024648) with its registered office at Celtic Park, Glasgow, G40 3RE.
Q: What is the priority of Celtic FC Foundation?
A: Our priority is to provide assistance to those who face daily challenges within our key priority areas; Health, Equality, Learning and Poverty (HELP). In addition we offer support in the form of delivery and/or partnership to external charities and other organisations who offer value in the community and whose principles fit within these key priority areas.
We aim to:
1. Improve Health
2. Promote Equality
3. Encourage Learning
4. Tackle Poverty
Celtic FC Foundation Trustees
There are currently five members on our Board of Trustees. The Trustees are responsible for ensuring the charitable traditions and values of the Celtic FC Foundation are maintained, while managing, agreeing and actioning the distribution of funds.
Chairman – Chris Traynor, CEO of BE Capital Group
Peter Lawwell, CEO Celtic Football Club
Gavin Kelly, CEO Kinmont Advisory Group
Eric Riley, Finance Director Celtic Football Club
Adrian Filby, Commercial Director Celtic Football Club
Macjay
I’m not sure of your point though I do think you’re trying to be obtuse.
I don’t know if you’re aware but the Foundation is not Celtic.
Interesting debate.
Would never disagree with anyone who thinks boycotting is the right way to go but I’m with Hamilton Tim on this.
Talking to those who wrong you makes them feel a lot more uncomfortable that absence. Healthy dialogue is needed and a working relationship one were honesty is respected and a given.
Trying to get the club to listen to the thousands of different voices all offering different opinions is another problem.
Most Celtic fans know Lawwell has taken care of No 1. He now has a vice like grip on all aspects of the club, Manager selection, player in outs, approach to fans, media, Academy.
Nothing happens at Celtic without his approval. So how is he doing
Delivering Cash and EBIT targets – achieved objectives. Bonus secured.
Deliver CL football – Failed
Develop Football Management Team. Mowbray failure. Lenny success but forced out. Ronny wip.
Develop first Team. Failed. Downsizing continues unabated.
Academy to develop talent. Grossly underachieving. New management to run or close Lennoxtown/ St NInians set up.
Take Celtic to the next level with regular CL football. Failed in last 2 seasons against Maribor and Malmo by weakening the Team. Loss of revenue £50M and team not developed for next CL qualifiers.
In summary Celtic should be strategically investing to ensure CL football by selective buys in advance of key play off games. Celtic should be head and shoulders above all domestic challengers. Celtics turnover should be circa £80M plus every season with the enhanced CL pot. We should be the UK entry point for ambitious players who want to end up in the EPL.
Overall we are far below where we should be. Celtic is seriously under achieving on the Budget it has across the entire spectre of its football operations, never mind losing out on £50M in 12 months in CL qualification failure.
There is one man and one man alone responsible for these failures ; The CEO, DOF Mr Lawwell.
Celtic can never prosper when it is controlled by one man who is a tactical, cost cutting ( apart from selective bonuses ) beancounter. One man who is answerable to an absentee landlord who treats Celtic as dinner conversation with great and good of the fair city.
Lawwell care not a jot about the fans. His active collaboration against young Celtic fans which ended up in dawn raids and criminal records is well known. It took the fans to force the club to stop Lawwell banning supporters after Fri Park game. Lawwell was shamed into supporting the fans who were attacked in Amsterdam…too little too late.
Will we see a repeat in the Dam. Will Celtic speak out in advance to let the Dutch police know we will proactively monitor the treatment of supporters. Lawwell will do zilch as it does not impact his Cash and EBIT Targets.
As CEO / DOF of Celtic there are many pieces in the jigsaw— however focus on the one that really matters and deliver it every year without fail. The other pieces can be moved around, turned over, discarded, replaced. The financial compensation for achieving the main objective will more than compensate for all the noise.
Just hang in for another 8 months and Sevco will be at the top table. Even CL failure next season would be accepted ( bringing the loss of revenue to £80M ) as the fans unite against Sevco and the old tit for tat model is restored.
Celtic should be light years ahead of Sevco…..that opportunity has been absolutely wasted. Lawwell should have been sacked 12 months ago. It’s almost too late now.
Auldheid on 5th September 2015 10:37 pm
Agreed, life is not black or white. If only it was that simple.
HH Dan
MacJay am not that well read but you seem to have a gripe with Celltic, if I were you and obviously am not if Celtic makes you unhappy chuck them, after all it’s only a game of football
Hamilton Tim
Who pays the wages of the Foundation that make the gesture?
It’s not the club. It’s US.
We pay for everything so it makes no sense to make a distinction.
There is not a separate pot of money that Celtic got from elsewhere. It may have come thru gate money or shirt sales or Sky subs but it’s ALL coming from US.
There may be an argument we should pay less to players and more to charities but the mechanism to make a decision like that doesn’t exist.
Check the Malmo arrangement that suggests where we should be heading when DD shuffles off his mortal coil.
That legacy issue is one that should be put to Celtic by the CST imo just in case the sharks that ate RFC are looking for another meal.
They will find us a lot lot tougher to fool of course but let’s start thinking about the way forward from the past in case we founder in it.
An Italian fitba journalist has claimed that Mario Balotelli’s loan contract at AC Milan includes a ” no extravagant hairstyles ” stipulation .He then added that Silvio Berlusconi obviously has no problem accommodating double standards..
Sweltering at midnight – way down south.
Just posting in,from south of Alicanti,it seems that Gums Mulgrew is telling us all that the Scottish players have realised their weaknesses and will now beat all in front off them,What a p—k..Celtic get rid of this imposter.
On the fifth day of September .
The Celtic Foundation is a truly wonderful group but it’s a registered charity separate from Celtic Plc.
Those of you claiming that it’s run by the club can you provide me with some figures.
How much has been raised and distributed by supporters and how much by the club?
On how many occasions have members of the board participated in Foundation events.
Trust me, I’d love to see some of them doing a zip slide :-)
Good evening, friends.
Latchford
Blah, blah, blah…… We are top of the league going for FIVE in @ row and the Huns died in June 2012 pour yourself a wee diet Pepsi and enjoy life, Paul67 thank goodness the Internet wasn’t about in the 80s, by the way I had some breat day & noghts in them said 80s faithful through and through n all that !
Gerryfaethebrig,
Remember to put your Celtic pyjamas on when you go to be tonight and a wee prayer for St Peter wouldn’t go amiss either.
if you cant wait till 10 .30 tomorrow night bbc 4 … van the man up on cyprus avenue is on iplayer now..
he even cracks a funny…. :-))
G64
Fascist-Tory, one and the same
HH
Does the Football Club make money out of Celtic FC Foundation events or projects?
A: Absolutely not. We are a registered charity in our own right (SC024648) and the proceeds of all monies raised and awarded support our charitable activities.
Celtic Football Club generously support the efforts of Celtic FC Foundation financially and in kind.
Jobo
How was the run the day good time or bad time ?
Latchford
I am a self confessed happy clapper, I love Celtic unconditionally, I would prefer th to be better much like I would prefer to win the lottery, Veltic means more to me than any Canadiam Teachers Pension fund
I wish you week fellow Celtic fan
Latchford
100% correct? Lawwell is a leach. He is sucking the blood out of our club.
To everyone who would like to see Peter Lawell removed , who would you have replace him and why ?
BCW
That’s not what I asked.
Latchford
My missus and I were the ones who organised the Amsterdam collection. I agree with some of your points but I’d be interested to know the part you played.
Incidentally some of that money is still paying the legal costs of those arrested under the OBaF Act.
PW Eton RIfles. The story of the unemployed marching to London for jobs. CameroN said it was one of his favourite songs. That shows the level of his awareness. Our pm is an utter eejit.
Hamiltontim
Wasn’t responding to you……..
Latchford
I will be praying to St Jude
Might I enquire why pyjamas you might be wearing Rangers 2012 or Sevco 2012 ????????
All the very best fellow Celtic fan 5@row and it could be more
The Foundation are made-up of Tony Hamilton and a committee. I’m sure Celtic have donated but all the work and ideas are from mainly volunteers, Paul being one of them.
Bcw
No but you were responding to posts about the Foundation mate.
TET I agree with sentiment but nope it ain’t the same. HH
HAMILTONTIM on 5TH SEPTEMBER 2015 10:50 PM
Macjay
I’m not sure of your point though I do think you’re trying to be obtuse.
I don’t know if you’re aware but the Foundation is not Celtic.
================================================================
More acute than obtuse.
Who decides to donate?
Who writes the cheque?