Not for the first time around Ibrox, we’re deep into denial territory than an insolvency incident is imminent. A whole load of irrelevant questions have been answered; they will not go into administration on ‘Sash Wednesday’, nor will a board meeting be convened today, but the pertinent question, whether club consultant Philip Nash, and director Graham Wallace, have held pre-administration talks, remains curiously unaddressed.
My information is that administration is only one of a number of options under consideration.
They have alternatives. A sale and leaseback of the stadium and (still magnificently named) Murray Park could provide the club with enough money to see them through until season ticket renewal time next year, when they have a chance of being in the Premiership. If it was your objective to maintain shareholder value, this must surely be considered. Cast your mind over what we know about the bulk of the shareholders and there should be no doubt about their priorities. These are not shareholders who will accept cumulative losses or even a pound-in-pound-out model.
They could continue to secure assets against borrowing from hedge fund-shareholders at an interest rate of 30%. This is an attractive return for a hedge fund. If they secure the stadium in return for a future loan they will be in a position to earn attractive returns from whichever club plays there for many years to come.
If you are a fan, or indeed, a director of Oldco, who set on a path to liquidation, this reality will feel intolerable. Those responsible for strategy, oversight and governance at Oldco set the wheels in motion; Newco’s burden is a consequence of Oldco trying to put their rivals in their place, and allowing the wolves in.
Intolerable though the situation may be, I’m not sure what can be done about it. Using season ticket sales to threaten to subvert the value of investments made by hedge funds, and shareholders who have made it their absolute priority to remain anonymous, is incredibly risky. Incredibly. Risky.
Here’s the question, are those anonymous investors likely to submit to threats, or are they the kind of people who can afford to play hardball and would raze the stadium to the ground rather than be bullied?
My guess is we are talking about hardnosed, wealthy individuals, who will forever remain anonymous and who have never been bullied by minority shareholder action in their lives. It’s easy to whip football fans into a pitchfork-esque revolt, 10 years of CQN has provided regular evidence of this (mostly over comparatively trivial misinformation), but if this was my club, I’d be going off my head at the behaviour of just about everyone involved and I don’t think I’d be able to sleep at night.
‘Seville’, the book detailing the incredible stories you, the Celtic support, experienced and set down on record, is out this month. To order your copy click on the link below.
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One=out
Auldheid,
Guys like you I admire immensely. Last time I gush. Stop taking it personally. I know its cos you care.
HH
•-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-•
21:50 on 3 March, 2014
‘The latest report on the UTT is uphttp://www.tsfm.net/utt-thread/comment-page-1/#comment-13363
why aren’t the press there? Why aren’t they interested?’
####
The Scottish media don’t really have the resources to cover stuff like this, it’s too technical and too specialised. They’re just not up to the job.
Awe_Naw_No_Annoni_Oan_Anaw_Noo
23:53 on
3 March, 2014
Auldheid,
Sounds like a non bonus busting environment we are running.
Need I say more ?
I have told you before I never have doubted you. I am just far more cynical than you and have every right to be as far,as I can see it. I echo HTs comments above. I value proper governance in sport over making money. Our PLC dont. Ergo these failed to be established processes are too expensive and not considered important enough to pursue. The continued glib rebuttals to our concerns. All points in the same direction.
=========================
I do canalamar’s nut in with my patience mantra. It is the first requirement of love and for good reason, it removes time.
A few years back every penny went on the park, the Commercial guy could not get his office painted without PL approval. We can all see why, PL was the man responsible for getting a winning team on the park.
The biggest risk to that was the cheating mob from the soo side. Now they are gone and for the first time Celtic make money.
With a fair wind they will be coining it in and not all of it will be needed to qualify for the CL which will be even more rewarding.
That frees money to build capacity, improve the service to supporters but it takes time, hence patience. I put the Help Desk suggestion to the SLO and his first thought was “cost” but he knows how they work.
Now if he had the time to put a business case with cost and benefits he might even get it factored into next seasons budget.
So whilst you are right some of this internal business management stuff was needed there are signs it is emerging.
I can just imagine if the now gone club were still in pole position and Celtic announced a new £100k Help Desk the welcome that would get.
There are sometimes reasons why things are as they are which is why reason is a prerequisite of correcting damaging narratives.
Awe_Naw_No_Annoni_Oan_Anaw_Noo
00:03 on
4 March, 2014
One=out
Auldheid,
Guys like you I admire immensely. Last time I gush. Stop taking it personally. I know its cos you care.
======================
I don’t.
It might be you I’m addressing but the world could be reading the reply to the issue you raise.
And I like yer brother :)
Hamiltontim is praying for Oscar
23:38 on
3 March, 2014
Auldheid/macjay
I’m pro Celtic and that’s why recently I’ve been critical of some of the things being done in the name of our club.
I’m not doing it out of spite, fun, malice or self interest, I just happen to believe that Celtic is more than a balance sheet.
_______________________________________________________
Mate.
All our hearts are in the right place.
I happen to believe that applies to the Board too.
Others don`t.
Ask the hun.No balance sheet,no Club.
Auldheid
Hail Hail
Macjay
At no point did I say that a good balance sheet wasn’t important.
I just said that I think Celtic should be MORE than merely that.
Anyways, night all. God Bless.
Hamiltontim is praying for Oscar
I’m not sure if I can make the Open Meeting tomorrow night but keep an eye open for a guy with glasses and a padded grey sheen jacket with a hood and green jumper.
We can have a blether about it.
Weefra….you sure stay up late to be a fermer…are you one of them toonies who has ventured into the countryside…….many coos and sheep do you have
Talking of the media, I had assumed that it was because the Elm Tree Guesthouse investigation ( which features a number of members of the Monday Club and other prominent Tories) was reaching a conclusion that the Daily Mail’s was running articles on Hewit, Harman, Dromey and the NCCL.
It seems the prompt might have been something rather more recent
http://www.theguardian.com/uk-news/2014/mar/03/special-advisor-pm-arrested
HamiltonTim
Ye ur Wrang,pal..
when ye say…”Celtic,ur More than a Balance Sheet”
Ah HIv News fur ye
Celtic, wid be NO MORE.. if The Bunnet… hid Failed tae Balance…. that Sheet…way back when.
Of Course, Celtic, canny Ignore… The Balance Sheet..
The Balance sheet n Celtic ur… fur Ever… Doomed tae be Intertwined.
It’s whit ye Call…
FUNDAMENTAL..
It’s Awe aboot..
“The Money ,Honey..”
n..
Don’t You Evah.. Evah.. Evah..
Furgeet It!
Afore , ye get tae the Fun Part…
Ye must Mak certain that Ye hiv the Lolly tae Pey the Piper.
Kojo
Still,Laughin’
Therefore, since brevity is the soul of wit,
And tediousness the limbs and outward flourishes,
I will be brief.
~William Shakespeare, Hamlet
Anyone got any expertise in safety licences for sporting arenas?
Today I got a reply from GCC on safety certificates for Ibrokes Stadia. Basically while they supplied info relating to ongoing concerns with the structure of the roof, they advised that they were content with the measures being taken by TRIFC to addess these issues.
They refused to give specific correspondense relating to this issue and gave a pro forma reply that has been used previously when addressing a response from someone requesting similar info on Celtic Park. Here’s a link to that response-
https://www.whatdotheyknow.com/request/safety_cert_celtic_park?unfold=1
They did however mention that they had recieved comunication from Sevco on the roof issue at a recent game and a follow up letter stating the issue was now sorted. Now what they appear to be saying here is that it is up to the club to bring any issues to the council’s attention. There does not appear to be a mechanism for the council to actually check that what a club says is actually true. Here’s what they say in part of their response to my request-
On 13 January 2014, in accordance with agreed reporting procedures, the Safety Advisory Team were advised by the safety officer at Ibrox Stadium that at 2.42pm on Saturday 11 January 2014 a piece of roof cladding on the Broomland Stand had become partially detached. The Safety Officer advised that necessary steps were taken by the club and Police Scotland to ensure spectator safety and allow the match scheduled for 3pm that day to go ahead. The Safety Officer further advised that a detailed survey had been commissioned for Tuesday 14 January 2014 to determine as far as possible the cause of the damage, the extent of the area affected and the work required to make the area safe prior to the next match at the stadium scheduled for 25 January 2014.
On 20 January 2014 the Safety Officer at Ibrox Stadium wrote again to the Safety Advisory Team advising that the partially detached roof cladding at Broomloan Stand had been repaired and the stadium was safe for use. The Safety Team were also advised that the roofing contractor had inspected other parts of the roof and whilst minor repairs were observed they were not considered urgent and that in no way did they affect the structure or compromise the safety of individuals attending the stadium. –
I asked for specific information on a variety of issue that they haven’t addressed in their response and from what I can gather in their communication there are areas of sports licencing that would appear to be more about passing the buck than actually making sure a stadia is fit for purpose.
Given the tragic history of this stadia and the conclusions of Sherrif I Smith is self certification appropriate?
I intend to follow up on this request and have 40 days to do so. Any advice greatly appreciated.
One Day.. many Years Ago… In a Las Vegas Casino..( It Wiz the Imperial Palace.)
Ah met a gaggle of Celtic Supporters..
Ah knew they wur Glesca Keelies… by the Breadth o’ thur Scots Accents, n Ah knew they wur Celtic Supporters by the
Celtic Tops that mair than A Few wur sportin’,but the clincher, of course, wiz
they Mostly ended thur Sentences.. with the woid…”But”.
Fur everybuddy knows that Glesca Papes.. Awe end thur Sentences wi THAT woid!
Ah immediately, Decided tae Button Hole a Couple.
n .. Ah lucked oot.. fur Ah found Two who wur wearin’ Jaickets…wi’… Button Holes!
it hid bin Many Years Since Ah hid saw the Celtic Fitba’ Team..n Ah wiz tickled tae death at the Opportunity they Presented… tae get some Celtic News.
How long wiz it since Ah hid watched the Bhoys,in the Flesh?
Gosh.. It wiz Over.. well.. Tae pit it.. wan way… it wiz a Loata Hauf Time Pies Ago.
Tae Be … Continued..
Kojo
Still Laughin
Gotta Leave Steve…
Seeya.
Celtic: McCann reignites debate over England move
Published: 04 March 2014
Fergus McCann: Celtic must move south. Picture: TSPL
TWENTY years to the day after he dragged Celtic back from the brink of financial disaster, Fergus McCann believes it is now “impossible” for the club to deliver value for money to their supporters within Scottish football.
When the Scots-Canadian businessman overthrew the dynastic regime to take control at Celtic Park on 4 March, 1994, he ruthlessly and successfully set about fulfilling commercial potential which had been wastefully untapped for so long.
Two decades on, Celtic are currently the undisputed superpower of a very different domestic environment, with only the unguaranteed riches of Champions League participation able to sustain their monetary size and status.
As he reflected on the 20th anniversary of his seismic intervention at the club, McCann was typically forthright in his assessment of what the future holds for Celtic. He believes the long-running debate over relocation to English football needs to be re-ignited if the Scottish champions are to enjoy further growth in the years ahead.
“The English Premier League now dwarfs Scottish football financially and makes Celtic’s progress a daunting challenge,” said McCann. “Nowadays, supporters want the best, and that is impossible in Scotland generally with too many small clubs. This is obvious. It is a real achievement for Celtic to play in the Champions League group stage. In the last two years, they represented the smallest country. I would like to see the EPL expand and include Celtic. I think it could and should happen. It would triple the size of the club in financial terms, overnight.”
Since McCann sold up at Celtic in 1999, his prudent and hard-nosed approach to running the club has been maintained under current major shareholder Dermot Desmond and chief executive Peter Lawwell.
“Everybody wants to win all the time but not everybody can,” said McCann. “Football clubs should be ambitious but have to manage risk. Many have not done this well. And there is great temptation to do expensive, short-term deals. I worry about the effect of current owners who ‘do not care what it costs’, such as at Chelsea and Manchester City, on the overall game.”
McCann, of course, was infamously jeered by a section of the Celtic support, when unfurling the 1998 championship flag, for his perceived parsimony in the transfer market. “Frankly I think this was over publicised,” he added. “It was disappointing, but did not bother me greatly. People pay their money and have the right to applaud or boo as they wish. Every supporter has an opinion – which makes the whole game what it is. The facts were that we had reclaimed the league title, we had completed the best possible stadium, we had 53,000 season-ticket holders and made a record profit.”
Before launching his takeover bid, McCann had seen the Celtic board reject a £6 million offer from him to build two new stands at Celtic Park. But he was gratified by the chain of events it set off, taking Bank of Scotland to within a few hours of forcing the club into receivership before McCann stepped in.
“Looking back, I am glad they did not agree (to my offer for the stands),” he said. “Being an investor with no shares or authority, given what I was to learn about the mentality of that board, would have made for an unworkable relationship. And the task was soon shown to be a lot greater than just a construction and marketing job. It had become clear to the bank that they had no chance of being paid by Celtic unless the club obtained new capital. With the co-operation of (then Celtic vice-chairman) David Smith, they had pressured the board by demanding personal guarantees.
“Smith, friendly with the bank, and wanting to get “cash for the families” (which I would not promise) tried to set up a deal that would have them accept an offer from Gerald Weisfeld (a large customer of the bank) that would do this and take the bank off the hook, but provide no new investment in Celtic. This backfired when a majority of the board dismissed the company officers and rejected the deal.”
Another defining aspect of McCann’s tenure at Celtic was his battles with the SFA which saw the dismissal of Jim Farry as chief executive in the dispute over the delayed registration of Portuguese striker Jorge Cadete. He was also an arch-critic of the redevelopment of Hampden as Scotland’s National Stadium, a position he still forcibly maintains. “I am not aware of how the SFA operates currently – it has been a long time,” said McCann. “I would hope that the culture has changed from what I experienced. Namely, acting in ways that would weaken the Old Firm on the mistaken belief that their smaller member clubs would benefit. Such as the waste in funding Hampden Park, Glasgow’s unnecessary ‘No 3 Stadium’, while blocking Football Trust funding for Celtic Park, or £300,000 in fines and costs on Celtic for engaging a manager (Tommy Burns) who had made clear his wish to apply and had been making only £40,000 per year in the last year of his contract.”
Asked if there was anything he would do differently at Celtic if he had his time again, McCann is typically unwilling to indulge in such thoughts. “It’s always easy to be clever with hindsight,” he replied. “I made mistakes for sure, some of them people mistakes. But there’s no point in dwelling on them now. Aside from getting all the essential new capital in place, the best thing overall was getting the best people. I mean the quality and value of the board I had – and the club now has, the executive management and operating people.
“Of course, getting the best players we could afford was critical and that has been maintained, but the club also has 500 dedicated employees as well. Last but not least, raising an army of 50,000-plus season ticket holders, and now having 28,000 shareholders, these are the key people that make Celtic what it is.”
Auldheid:
Do you honestly believe that ‘official’ Celtic have never lied to the Support, either a downright lie, lies of omission, and/or agenda driven lies of distortion or obfuscation?
Do you believe the Celtic Support in general are educated and lawful enough to handle the truth? Any truth?
Auldheid:
Do you think it is right that a select few, who may or may not have been raised with Celtic in their marrow, should dictate bleaching policies to a support without consultation and transparency?
Knowledge, may, or may not, contribute in a Supporter’s decision to sacrifice to purchase a season book. Do you believe it is right for information to be with-held from a committed supporter who struggles like hell to raise the funds to purchase a season book only to discover that his heart and soul have been deceived and his roots dissolved by people who may or may not have been brought up making a fraction of the sacrifices in time, and money, and emotion, and relationships, that the common working class Celtic Supporter has to endure, sometimes in tears too.
Do you think the board at present, to a man, have found occasion to shed tears over the club; from a result perhaps, or maybe from a futility without voice that is heard, as experienced by lifelong Supporter whose tears spring from a foreboding fountain fed from a real, or perceived, systematic disenfranchisement.
Reading McCann’s statement above, is it only Shareholders and season-ticket holders and the affluent and the famous who are now allowed to be accepted as bona-fide Celtic Supporters.
Walk a mile in a poor and humble Celtic Supporter’s shoes Mr Board members. Live for just one day what they sacrifice to keep you your status. And then tell them they are not worthy of the truth.
Woolworths, Australia, halving the price of Tuna and reducing the price of salmon and advertising it as “Especially for Lent”.
oops!
I have known many Celtic Supporters, most likely everybody has, who have been faced with the choice of a season ticket or a family holiday. Others have been faced with the decision of Christmas presents of substance for the kids or their continued support of Celtic. I have, on more than one occasion watched lifelong Celtic Supporters agonise and cry into their beer over new trainers for the kids or tickets for CL matches.
I have known Celtic Supporters to hawk their valuables just so they can afford to watch the Celtic. I have seen bitter family feuds over how the funds were spent to enrich the club and its employees at the expense of modest needs of the family. I have seen Celtic Supporters in despair, not at their perceived poverty, but at their impotence to further enrich the club, ultimately to their misery and that of their families.
I have also seen, and still do, often on here too, Celtic Supporters of comfortable income mock Celtic Supporters of modest means ability to support in person. And further, endure their heart-embarrassed explanations being subject to disdain and accusations of lie.
Where is that written into our charter or ethos? When did we start to become this materialistic monster? Where is it written that all those who have suffered and endured to better our club should be denied acceptance and confidence just because they don’t match up to somebody, who may, or may not, have Celtic in their marrow, and their snobbish benchmark on some putrid social scale?
And those snobbish twat, who may, or may not, have Celtic in their marrow, is lauded whilst our own poor are ignored at best and milked to despair at worst?
Some Celtic! Without the poor Celtic Supporter you don’t have a club worthy of the name. The poor supporters should get every credence grabbed with big hands by the affluent; or does money buy you privilege in the Celtic Culture today too.
kojo –
What kind of word is ‘woid’ but?
Or has ‘more’ money become the accepted and condoned motivation to sanitise the Celtic Culture.
kitalba @ 1:57
Ok . . . takes a deep breath . . . . . . . . . .
A fantastic post, it has to be said.
Gold Coast Tom:
It is time for us to put our nonsense behind us. When I get the time I’ll send you an e-mail via our host. In the interim, let’s just call it a draw.
Kitalba……
Better stop dreaming of the quiet life –
Cos it’s the one we’ll never know
And quit running for that runaway bus –
Cos those rosey days are few
And – stop apologising for the things you’ve never done,
Cos time is short and life is cruel –
But it’s up to us to change
This town called malice.
Rows and rows of disused milk floats
Stand dying in the dairy yard
And a hundred lonely housewives clutch empty milk
Bottles to their hearts
Hanging out their old love letters on the line to dry
It’s enough to make you stop believing when tears come
Fast and furious
In a town called malice.
Struggle after struggle – year after year
The atmosphere’s a fine blend of ice –
I’m almost stone cold dead
In a town called malice.
A whole street’s belief in Sunday’s roast beef
Gets dashed against the Co-op
To either cut down on beer or the kids new gear
It’s a big decision in a town called malice.
The ghost of a steam train – echoes down my track
It’s at the moment bound for nowhere –
Just going round and round
Playground kids and creaking swings –
Lost laughter in the breeze
I could go on for hours and I probably will –
But I’d sooner put some joy back
In this town called malice.
kitalba –
Sounds fair enough to me.
Hail Hail.
Woohoo
The war is over The Rebels have……drawn :-)
HH
lymmbhoy
02:43 on
4 March, 2014
Woohoo
The war is over The Rebels have……drawn :-)
HH
___________________________________________________________________
Ca` canny,pal.
Many a slip………………
Nevertheless,
with those two in a truce,I have a nasty feeling they`ll be stickin` it to someone else.
:-(
I hope it`s you.
macjay –
It’s you ya bam.
:-)
♪ ♫ “We said we’d walk together, come what may ☼ ☂ “♪ ♫
A wee song for those who have been very fortunate in life… If I Should Fall Behind
Gold Coast Tom
03:39 on
4 March, 2014
macjay –
It’s you ya bam.
:-)
______________________________________________
You sound just like my wife.
Except she says it in Spanish.
North Korea in the dark.
macjay –
What’s Spanish for bam?
Lawwell joins club elite group
CELTIC chief executive Peter Lawwell has been elected to serve on the executive board of the European Club Association.
By: Paul AndersonPublished: Tue, March 4, 2014
0Comments
Lawwell is now on the board of the European Club Association [ROSS TURPIE]
Lawwell will join existing board members including chairman Karl-Heinz Rummenigge of Bayern Munich, AC Milan’s Umberto Gandini, Edwin van der Sar of Ajax and Arsenal’s Ivan Gazidis.
The ECA represents clubs at European level.
Lawwell said: “This is a tremendous honour and a role which I very much look forward to undertaking. European football is an ever-changing landscape and from the perspective of Celtic, it is vital we ensure we are at the heart of the action and at the centre of discussions regarding the development of the game.
“As we look to the future, I look forward to representing Celtic, Scottish clubs and the other clubs in Europe to ensure that the voice of these clubs and their supporters is heard.”
Fergus McCann breaks vow of silence as he insists Celtic could triple their worth by joining English football
Mar 04, 2014 03:00 By Hugh Keevins 4 Comments
Shares
THE man who saved Celtic said he can see fresh challenges for the Parkhead club if they stay trapped in Scotland on low revenue from domestic competition.
SNSIt’s twenty years since Fergus McCann set Celtic on their way to where they are today
FERGUS McCann has broken his vow of silence to say he supports Celtic joining English football.
And he reckons the move would make the Hoops three times bigger than they are at present.
Today marks 20 years since McCann, left, assumed control of the Parkhead side after saving them from closing down with just eight minutes to spare.
However, he can see fresh challenges ahead for Celts while they are trapped in Scotland on low revenue from domestic competition.
And that grates with McCann when he knows a move to England would instantly boost Celtic’s bank balance.
He said: “The Premier League in England now dwarfs Scottish football financially and makes Celtic’s progress a daunting challenge.
“I’d like to see the EPL expand to include Celtic. It could, and should, happen.
“That would triple the size of the club in financial terms overnight.
“Fans want the best and that’s impossible in Scotland because there are too many small clubs.”
McCann is due to unfurl the league flag Celtic will earn when they become champions for a third season in a row.
He’ll return to Scotland in August but wishes Celts well in their Champions League qualifiers before then.
He said: “It’s a real achievement to play in the group stages. In the last two years they’ve represented Scotland as the smallest country in the competition.”
Part 2 of the Jock Brown interview.
http://celticunderground.net/the-celtic-underground-podcast-no-210b-jock-brown-general-manager-part-2/?
Alert! Deadco article. Scroll by if not interested.
Businessmen, fund managers and investment professionals have come together to criticise the recent loan taken by the Rangers board from Laxey, and to reveal that they approached the NOMAD, Daniel Stewart, in an attempt to provide alternatives which were never progressed.
John McClure, the head of Unicorn Asset Management, a well-respected small cap manager in the City of London, and a lifelong Rangers fan with 4 season tickets, has detailed how he approached Daniel Stewart on Thursday 20th February on behalf of a group of shareholders, before the loan was signed off by the Rangers board.
“We approached the NOMAD, Daniel Stewart on 20th February to discuss reports that a loan was being considered. At the time we didn’t know the exact terms but we wanted to make it clear that there were alternatives. The next thing we knew, the loan had been announced.”
“We were never given the opportunity to offer formal terms because we didn’t hear anything back. Daniel Stewart asked if we could provide the money that day but obviously that wasn’t possible. We told them we would need a few days, which is perfectly reasonable in a transaction of that size, but they seem to have pressed ahead regardless.”
“We’d be concerned if the money was needed so urgently by the board that they could not at least have discussed it properly with us. It certainly wouldn’t suggest it was part of the plan, as they are indicating. Surely they could have waited a few days? We could have provided immediate proof of funds with a view to agreeing terms.”
“We also made it clear to Daniel Stewart that we believe a new share issue is urgently required and a much better option than taking short term finance at outrageous rates.”
“We just want the fans to know that there were alternatives out there that we feel were never explored properly. In our opinion the board and the NOMAD did not open this up to other shareholders as they should have. Our motivation was and is to help the club so we could have provided any required funds at much more favourable terms than those they accepted.”
George Letham, a lifelong Rangers fan and wealthy businessman, backed up McClure’s version of events and revealed he would even have been prepared to offer the full amount of the Laxey loan.
“When the loan was first mooted, I was approached by a fellow fan asking if I was prepared to contribute a substantial slice of an interest free, secured loan along with a few other fans. I agreed that they could approach the NOMAD on this basis.”
“When the terms of the Laxey loan were announced I was horrified.”
“If I had been offered even half of Laxey’s interest rate with the security being given, I would have provided the whole loan myself in a heartbeat. I communicated this to a couple of the fans reps who had recently met with Graham Wallace in the hope they could convey this but they were unable to speak to him.”
The Rangers Standard has also spoken to the MD of a multi-national investment bank who did not wish to be named due to what he called “the tactics employed by various parties linked to the board”.
“I was astounded at the terms that Laxey managed to achieve on this loan, especially as a related party with a representative on the Rangers board in the form of Mr Crichton. In such circumstances, you would expect terms to be at least comparable with prevailing market rates, and more likely on better terms, given the prospect of a conflict of interest. They certainly do not appear to represent value for the club, or its shareholders.”
“Firstly, the loan is secured against property, although there is nothing untoward about this on the face of it, you would expect a secured loan to reduce the borrower’s costs. However, to achieve 30% pa, on a secured loan, is to the best of my knowledge unprecedented.”
“Having negotiated such attractive interest rates on their loan, Laxey also have an option, to convert their premium into shares, at either the lower of 26.5p or the prevailing price of any future share issue price, at Laxey’s discretion. Effectively they have the option to buy shares, and potentially strengthen their position as Rangers largest shareholder. If the share price rises, they can redeem the option at a potential profit. If the share price remains below 26.5p, and in the absence of a further share issue below the 26.5p level, they may take the cash and have their 15% return in 6 months. As a gauge, with the share price, currently hovering around the 30p mark, their potential return over 6 months has already risen significantly to around 17%. Any further rise in the share price only serves to further enhance the potential return Laxey can achieve. The convertible element of the loan, benefits only Laxey, to the potential detriment of all other shareholders, who could see their shareholdings diluted, as more shares are potentially created.”
“On seeing the terms of the Laxey loan, I took it upon myself to test the market, to establish the type of cost and terms that a corporate could achieve for a similar secured loan. I should stress that I am not privy to the specifics of the security and value of Edmiston House and the Albion, so there is a modest amount of guesswork involved. However, I was generally quoted, dependant on loan to value, a range of between 3 and 5% pa. There was also the provision of a front end fee of c1% to 1.5%. I was also quoted a flat 8.5%, with no redemption clauses, or fees. This was the most expensive quote I received, and none of the quotes had the clause of a discretionary share conversion, which you would expect to potentially curtail interest costs further. When I showed the Laxey terms to a well-connected property finance broker, he was astounded at the favourable rates and equity conversion achieved, even more so when I relayed that the terms were achieved by a related party.”
It is clear that the board, and the NOMAD, Daniel Stewart, have some uncomfortable questions to answer on why they took this loan from Laxey on such onerous terms, did not progress the other options available and have made claims that the loans were commercially acceptable despite clear evidence to the contrary. Perhaps instead of bland statements asking fans to be patient, they can address the very real concerns raised by Dave King, the Union of Fans and the highly experienced and credible businessmen who were willing and able to provide the club with much more favourable terms on any required finance.
Gold Coast Tom
04:00 on
4 March, 2014
macjay –
What’s Spanish for bam?
_________________________________________
No exact translation,either in English or Spanish.
Estupido(a) perhaps
Hijo de p—….son of a lady dog
Hijo de la ching—………………………………….All 3 very rude.
Cabro-