Trending
Celtic News Now
Celtic Quick News on News Now
Celtic Quick News
You are at:»»Admin only one option being considered

Admin only one option being considered

701
By on CQN BLOG & Comments

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.


Please select delivery option




Click Here for Comments >
Share.

About Author

701 Comments
  1. Pages:
  3. 1
  4. ...
  5. 12
  6. 13
  7. 14
  8. 15
  9. 16
  10. 17
  11. 18
  12. 19

  3. Folly Folly on

    bournesouprecipe @ 09:35

     

     

    Thon’s a cracker.

     

     

    Got any more like that … ?

     

     

    FF

  8. Tourtenay on

    Gold Coast Tom.

     

    My wife has been encouraging me to have a read of Ms Tartt novels, I have just finished Steinbeck’s Grapes of Wrath.

     

    What’s your view on John Updike?

     

     

    HH

  9. JohnnyClash on

    BSR

     

     

    Ah, the ole Queen’s highway before Glasgow City Council’s dodgy land deals with Opus Dei, the Co-op Bank and wee Fergus.

  10. Tallybhoy on

    King ‘summoned’ to Snake Mountain.

     

     

    It’s usually ambassadors who are summoned by the Foreign Minister in order to receive a ‘dressing down’, not a ‘glib and shameless liar’ by a bunch of spivs.

     

     

    HH!!

  12. jimtim on

    Oldtim.

     

     

    Just caught your post to me regards cqten tickets . Your arrangements for collection are fine by me , we will be up early so as not to keep you waiting . I only got a bit concerned as I read I think it was winning captains , who said if anyone didn’t,t receive there tickets to get in touch . As I said fair looking forward to it . See you then old friend .

  13. kitalba on

    KevJungle:

     

     

    That post in isolation doesn’t mean much to me, it was part of my post that preceded it and the one that followed it too, I just broke of from a French lesson and read Fergus McCann’s interview and I just thought you’re missing the meaning of Celtic here mate, you’re missing the poverty aspect that has never left us and you’re forgetting what gives our club its pristine purity… your missing the poor and the family.

     

     

    And then I just did what I often wish I didn’t, I just went off on one and clicked the keyboard without thinking. But I will tell you this KevJungle, never in my life have I felt so distant from Celtic. Never came close to feeling what I feel now, almost to the point where I question why I even bother bothering to click the keyboard anymore.

     

     

    But I wanted to square things with GCT, so some good came from me taking a break from my French lesson.

  15. Gold Coast Tom on

    Tourtenay –

     

     

    The Grapes of Wrath is a marvellous book. One of the most moving and uplifting endings I have ever read. Steinbeck was a masterful writer. HAve read quite a few of his works.

     

     

    I haven’t read much Updike.

     

     

    The Coup and The Witches of Eastwick is about it.

  19. Dontbrattbakkinanger on

    ‘Drenchliting.’

     

     

    -now available on 7″ coloured vinyl, for Leo Sayer completists.

  21. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS .........FC not PLC on

    TONY DONNELLY

     

     

    King Allister,the sevco dream team. Magic…

  22. The Battered Bunnet on

    Lots about Fergus: He did this; he built that; he achieved the next.

     

     

    I think rather, just as Jimmy Rabbitte did with The Commitments, his singular achievement was…

     

     

    …he raised our expectations. Lifted our horizons.

     

     

    F#@$edIfIKnowTerryCSC

  24. 67Heaven ... I am Neil Lennon, supporting WEE OSCAR..!!.. Ibrox belongs to the creditors on

    kitalba

     

     

    09:55 on 4 March, 2014

     

     

    You are obviously a true Celt…..Hail Hail……it never leaves us…and you will never walk alone KTF!!………..(Just be wary of the wolf in sheep’s clothing, whom I wish was always away oot…)

  25. leftclicktic We are all Neil Lennon on

    Just catching up

     

     

    Auldheid

     

    You are a credit to yourself ,this blog and the celtic family.

     

     

    Kitalba & GCT

     

    Made my morning :))

     

     

    Till later all

  27. kitalba on

    67Heaven:

     

     

    I would not worry too much about KevJungle, he’s not going to bite you, but I think you’re wrong, I think it does leave you… in as much as you just can’t go on justifying your love and commitment to an entity that has replaced, and bears very little resemblance to the God’s creation that as a child enhanced you. Not in a pretence at the expense of your blood dependants.

  29. leftclicktic We are all Neil Lennon on

    Nash officially appointed Secretary but still no accounts! Get the feeling those accounts aren’t going to be needed? pic.twitter.com/jgI3sEIRM0

  32. John O'Neil on

    Ernie Lynch 12.20

     

     

    Strange point from you Ernie. Smacks of paranoia. The Mail depises David Cameron and friends. Did you not know that? They went for Dromey and other Labour figures because it is a significant story and also because they hate Labour. Quite simple. The story about the far Left’s historic desire to help perverts has not gone away. We will discover more.

  33. antipodean red on

    leftclick

     

     

    Kitalba & GCT

     

    Made my morning :))

     

     

    Absolutely mate, best news of the day……..couple of wallapers!

     

     

    Magic Bhoys

     

     

    AR

  34. voguepunter on

    LiviBhoy – God bless wee Oscar

     

     

    Wear something warm,the guy with hi-vis and ‘stairs this way ‘ sign,standing between us.

     

    Hail hail.

  35. Jungle Jim on

    Kit

     

    Remember, it is Celtic who have changed, not you.

     

    For me, Celtic is the “heart of a heartless society” and even though they may not be , I am OK with allowing them to be the manifestation of my security blanket.

     

     

     

    JJ

  37. Árd Macha on

    Paul,

     

     

    How would a sale and leasback work in layman’s terms. What are the implications for Sevco with this option in the short, medium and long term

     

     

    Thanks

     

     

    Árd Macha

  40. Auldheid on

    Ryecatcher

     

     

    I saw earlier you mentioning Peter Lawwell joining the European Clubs Association and asking about the merits of said institution.

     

     

    Now whilst they are not the authority governing the game they are in fact the biggest lobby who influence the governors i.e. UEFA.

     

     

    I think it no coincidence that in his interview on Saturday about McCann’s legacy PL mentioned the need to restore competition to our game.

     

     

    Some folk thought that a reference to bringing back The Rangers (without hearing or reading what was said) but he was talking about the adverse effect that income distribution (mainly TV) was having on smaller countries like Scotland, living cheek by jowel with neighbours with a much larger market.

     

     

    Thus his appointment to a position to influence debate in the ECA is significant in strategical terms. There are no guarantees but Scotland are not alone in being disadvantaged by the current distribution model, created by UEFA under pressure of the “big” clubs , so PL is not alone either.

     

     

    This is where Celtic’s future will be decided and this is where Celtic need to have a strong voice. It is a very welcome development.

  41. Turkeybhoy on

    BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS ………FC not PLC

     

    09:42 on

     

    4 March, 2014

     

    BOURNESOUPRECIPE

     

     

    I get nostalgic sometimes for the old stadium,especially the floodlights. When I was a kid,the sight of them filled me with awe.

     

     

    http://www.thecelticwiki.com/m/page/Celtic+Park+-+The+Floodlights

     

     

    Yep.Do you remember they used to have the lights on at about half power,then just before KO would turn them up full?.Got the same roar as the end of the Huddle does now.

     

    When you were a kid,it WAS magical.

  42. weeminger on

    Árd Macha

     

    11:03 on

     

    4 March, 2014

     

     

    I know you asked Paul but since nobody seems to be responding (and sorry if I get overly basic here).

     

     

    So first up they might arrange the sale and leaseback let’s say for 10 years in the initial contract so the buyer buys for £15M and leases back for £2M/season – £20M so a tasty £5M profit . Usually there will be some kind of buy back clause as well, such that the owner still get’s their profit.

     

     

    Short term – gets them out of a big hole and probably provides the excess cash they need to get to the SPL, assuming costs are cut.

     

     

    Medium term – immediately removes a large chunk of their income, especially if Murray Park and Albion also end up going the same way. I’d say they could be looking at as much as 20% (more?) of ST income being accounted for straight off the bat if all properties end up being leased back.

     

     

    Long term – you’re stuck tied into potentially more and more onerous contracts unless you can eventually buy the assets back. If there’s a boom in land prices they’re goosed.

     

     

    Armageddon – the owner decides they want to sell the property,

  1. Pages:
  3. 1
  4. ...
  5. 12
  6. 13
  7. 14
  8. 15
  9. 16
  10. 17
  11. 18
  12. 19