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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MickTT
BBC propaganda from Summer of 2012, when he quickly left, saying Charles Greens plans were unworkable.
whitecrook tim
18:59 on 3 March, 2014
good evening cqnJust in house listened to ssb in car,Alick from Airdrie,bitter bitter man,moaned about PL,then it was Leigh Griffiths late inclusion in the Scotland Squad,Then it was about David Moyes at Man Utd,and Celtic fans want them back,
———————————————–
Heard that too….
He was rambling on about PL saying about lack of competition in Scottish game, that he wants them back.
PL actually said the perceived lack of competition in the Scottish game..
Words eh, how ye can play with them
McCoist is a master at it.
HH
Not often the rangers standard is quoted, however ..incredible stuff below
_______________________________________________________
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.
I just caught the end part off a comment from one off the panel on Clyde , along the lines off…we offered rangers a loan but they wanted it that day.
Anyone else catch it ? Or was I hearing things!
Steinreigned
Hope when he comes they meet in the ole Louden to add credibility and dignity.
embramike supporting wee Oscar and Res 12
18:48 on 3 March, 2014
Sandman @ 18:41
FollowFollow just folded in upon itself, producing an anti-matter field that will expand to form a new black hole.
Explosion of quirks, spewons, bozos and morons picked up by bampot detectors!
======================
Lulz.
And in Switzerland they’ve just started building the Higs Mason Collider…
Notthebus,
Are you a mind reader? ;-)
You feel for them sometimes.
No?
Me neither.
From the McMurdo bigotfest.
“‘I will continue to follow, follow no matter what’
Once a bear always a bear. This will come to a head very soon and we will follow follow on. The real testing time for me came in the late 80′s when the men in power sold the Protestant jerseys. That was hard to take at the time.”
•-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-• 18:48 on 3 March, 2014
The Sevco Standard article, where Father Dougal Graham interviews some of his imaginary friends.
sipsini
Ha purely coincidence
Absolutely dynamite if true.
Chinese Proverb:
Dave King has the moral standing of a man who made his fortune in Apartheid South Africa.
sipsini
19:06 on 3 March, 2014I just caught the end part off a comment from one off the panel on Clyde , along the lines off…we offered rangers a loan but they wanted it that day.Anyone else catch it ? Or was I hearing things!
I heard it too mate
marspapa
19:01 on
3 March, 2014
Kinglubo
on that subject , i’m a bit dissapointed , Neil said if we won the league that year he would tell us …..still waitin
Giving NL benefit of the doubt he was probably muzzled by DD and PL. Neverthless he should not be making promises he cannot keep. However, if Keevins knows why has he not told us? for the simple reason that he is a tosser.
The sevco conundrum
The answer my friend is blowing in the wind ….. But wind and hot air are in abundance on edmiston drive
Sadly out of the cups
League being skooshed…unbeaten record gone
A danger the season could fizzle out
Then , the ole sevco give us all a laugh ..
If they survive …will they learn from it …will they F …..
Is the ECA not the mob that new team claimed supported their history transfer ?.
UFH no longer unseen. It is all over Europe. PL is currently directing events in Kiev. This new appointment is a smokescreen. I tell ya it is true. He wants to bring down the pesky GB.
Bada bing
they needed it to pay the wages
What about next month
Further to previous post.
It is inconceivable that Sir Walter does not know what was said.
adi_dasler
19:25 on 3 March, 2014
‘Is the ECA not the mob that new team claimed supported their history transfer ?.’
###
Yes.
Tbj,
Started back on the dayshift after four months of nightshift, I got the impression the huns weren’t glad to see me back.
Bhoys on here keep me well ahead of thems ;-))
Notthebus
Usual tosh from that mob the opening statement says it all ‘he was asked to approach him by a small group of shareholders’. Who some guys with 10 shares between them?
The bottom line here is that the vast majority of shares are held by no the board but a group of unknown/unnamed shareholders. The board is just fronting for them. That loan was approved by them and they are not really interested in what any small group of shareholders wants.
There was a business reason they approved that loan on those terms what that is remains unclear at this time.
Qunno
keevins is an erse , i think also Neil maybe thinking of the fans safety or overreaction causing more problems off field .
tbj
Thank you for your reply last night re Goa.
HH
Adi dasler
Now ole PL has infiltrated the ECA to put an end to this continuing history bollox
!!bada bing!!
Cheers mate, I couldn’t believe what I heard, was ready to throw my cans in the bin…then again:-)
Someone ‘Stevie’ ripping them a new one on panel of SSB?
Great 3 part question……
ernie lynch 19:26 on 3 March, 2014
adi_dasler 19:25 on 3 March, 2014
‘Is the ECA not the mob that new team claimed supported their history transfer ?.’
###
Yes.
———–
But it didn’t change a thing, as I patiently explained to a Zombie about six months ago.
Tony Donnelly,correct what a man he was indeed and you would be related to King Billy nice snap with him btw you cut a fair dash in your day
Quonno
mispelt yir name there sorry , seems am an erse tae lol :))
Ernie Lynch
Good that means we can correct that misconception :)
bobby murdoch’s curled-up winklepickers ………fc not plc
15:01 on 3 March, 2014
FOLLY FOLLY 1355
A rare laughoutloud moment!
Cap duly doffed,sir.
I learned early in life to accept people laughing at me , not with me ( clearly wasn’t going to happen , especially with brothers like that). Life is happier as a result
8-)
Bashi
My goodness, I love this Timternet thingy when on Hols
Hail Hail to the CQN Brigade :-)
From a contributor on the CQN Magazine Facebook page…
THE CROY CRUSADER
He hailed from Canada
With an ambitious plan
To save Glasgow Celtic
Mr Ferguson McCann
A club on the brink
And nearing the mire
In stepped Fergus
Modern day messiah
They laughed and they scoffed
At this odd looking chap
Determined little fellow
Who wore a cloth cap?
Could have shut us down
And started again
But his love for Celtic
Meant our history remained
He stumped up the cash
With a five year plan
An all seated stadium
With 60,000 fans
Had a mighty task
In his quest for power
Battled the authorities
Like a lion, he did devour
The legacy he left
Hard act to follow
A profitable club
No financial sorrow
20 years have passed
Now we gaze in awe
At this house of steel
He built for us all
That man they call the Bunnet
A legend of Celtic Park
This man made history
A fine Patriarch…
J.J. Whelan 1st March 2014
greendreamz
18:54 on
Totally agree mate, I was providing a link to a story a hun was refering to when arguing with a poster from here at work.
I should have added the caveat that it was bullsh#t
Ernst Stavro Blofeld of SPECTRE could only dream of the dizzy heights of power Lawwell is reaching…
Whatever happened to the investigation into the bonus payment that Longmuir received that his pal Ballantyne knew about and may have authorised?
Did I blink and miss the result or was there no case to answer as they say?
Tony Donnelly
at times in here its as if everyone is against you , i think you have more support than you might imagine , because you dont need defending you do a good job youself , if you were in beside big virgil we would break all sorts of records , toodles ;))