This morning’s stock market announcement that Rangers International received a £5m emergency loan from our pal Mike Ashley, with terms agreed (pending diligence) on a further £5m available if needed, will see the club through the next week.
£3m of that £5m will go straight back to Ashley, to repay the loans he issued the club last year, leaving £2m, which will cover this week’s wages, with little left over (last year’s average monthly expenses was £2.75m).
The club can sell players this week, but as that is unlikely to generate significant funds, it looks like additional funding will be needed before next month’s wages – and significantly – before the proposed EGM.
In return for what is little more than an additional three week’s money, Ashley gets a floating charge over ALL the club’s assets. Despite how many headlines portray this story, that includes Ibrox Stadium.
Issuing a floating charge over assets is a normal piece of business for a football club, but this is not a normal football club. Floating charges are usually issued to banks, not predatory retailers, and they are seldom issued when the club is weeks away from running out of money.
A fixed charge has been granted over Murray Park, Edmiston House, Albion Car Park and, crucially, the club’s trademarks. In the event of a default, all these assets become the property of Sports Direct.
For reasons which are hard to fathom, Ibrox became some totem not to be tampered with, allowing Ashley to grab hold of enormous assets with relatively little concern. Should they default, consider this:
You want to sell tickets with ‘your’ crest or badge, pay me. You want to sell programmes, own a web site, do a shirt deal with someone else in the future, display the crest on the stadium wall, pay me.
The fact that Ibrox is subject to a floating, not fixed, charge, means that in theory the board could grant someone else a fixed charge over that asset, if they act before the floating charge becomes actionable. However, with Ashley now able to load the board with another two appointments, that possibility is not credible. If you have the floating charge, and you have the board, you don’t need a fixed charge.
There are other kicks to the nether regions. The club has given Sports Direct another 26% of Rangers Retail, bringing their total holding to 76%, for the duration of the initial loan. This is not hugely significant, but it could be in lieu of fees and interest, which are not being charged.
More interestingly for a club completing short-term funding requirements, they have agreed to pass their shirt sponsorship proceeds to Rangers Retail from 2017, until all these borrowings are repaid. With all the other rights Ashley is likely to assume in the coming months, this seems unnecessary. He has the board, has inserted the conditions he wants in these loans and has the fixed and floating charges required to do pretty much anything. Apart from rubbing people’s faces in the faeces, this additional ‘benefit’ appears superfluous.
What’s the takeaway message in all of this?
Despite the press briefings which were slavishly reported as news earlier this month, Ashley is not about to roll over, no matter how ample his frame. He doesn’t care about anything you care about. He cannot be bribed, blackmailed or coerced. He will react badly to people trying to manipulate him. Very badly.
He has control of the boardroom and Rangers International will need him before he needs it, and before any EGM is held. This is his new baseline, the next round of ‘assistance’ will tighten his grip on the all-important income streams.
It’s an impossible situation for the fans. Learn to live with the guy you’ve failed to box into a corner, while he exacts compensation for the trouble he’s been put to, or continue to resent him.
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Lenny’s Bolton getting a bit of a spanking, 3-0 down @ half time away to Rotherham.
HH
Jings.
What’s happening the night Lenny? 3-0 down at ht.
Silver again :)
Had Sports Direct Ouutlet Store opened in Govan yet?
I canne post. I canne post. I canne post. I canne post. I canne post. I canne post. I canne post…………
Celts
Perhaps King Kenny just hasn’t educated himself in the dirty dealings of rangers and the Scottish football authorities. There are many Celtic supporters out there who don’t go online and still read the lies/ propoganda stuff coming from the media.
#King Kenny
Anyone hear if the sevco players received a similar visit from plod?
If memory serves me right this isn’t the first time the police have warned our players about their celebrations?
Collecting a take away pizza.
Guy at the till watching Milan v Lazio – Italian Cup .10 man Lazio 1 up at half time.
His words of wisdom – ” Inter are shit / Milan are shit .Great – eh ? “
More breaking news. Mike Ashley hopes to open Sports Direct biggest Megastore in U.K. in Edmiston Drive. All stock will be stored in a massive warehouse near Auchenhowie.
Chelsea v Liverpool good game 0-0
If you know anyone who can’t log on to CQN tonight here’s a text message from Paul which may help…
Y, I know!! 109.228.19.152 will get them on until their isp reconciles
winning captains
20:51 on 27 January, 2015
Already passed on a good link to cowiebhoy and fourgreenfields.
Keep the Faith!
Hail Hail!
RD interview
http://www.bbc.co.uk/sport/0/football/31004324#
HH
winning captains
20:51 on 27 January, 2015
They had problems but got on with link I sent them.
Keep the Faith!
Hail Hail!
lennybhoy
Cheers mate :-)))
RD interveiw
http://www.bbc.co.uk/sport/0/football/31004324
WWW
Was I just podium-ed there?:-)
Ronnie interview http://m.bbc.co.uk/sport/football/31004324
south of tunis
20:48 on 27 January, 2015
Collecting a take away pizza.
What I’d give for a proper pizza from southern Italy. Can still taste my first wood fired margherita in Taormina.
Canny get the real thing in Glesca.
Unless our readers know different?
Thanks for link bhoys
Lennybhoy
20:29 on 27 January, 2015
petec
DNS problems at Paul’s hosting company today mate. He reckons it’s not everyone that’s having problems.
Had texts from cowiebhoy and fourgreenfields earlier, they couldn’t and can’t still get on as far as I know.
Keep the Faith!
Hail Hail!
________________________________________
No problemo m8, just letting people know what finally worked for me, Firefox and IE. I was using browser history to access, once in it was ok.
And Thanks as well.
Can see a red card coming in chelski Liverpool match
lennybhoy
Great thanks!
fourgreenfields
20:56 on 27 January, 2015
No worries mate…:)
Keep the Faith!
Hail Hail!
Wc,
I was getting on but the pages weren’t filling properly. I also had two 404’s after posting.
Appears fine now though.
HH
SoT
Got a reply from Gdansk today. No Gdansk dealers have it in vinyl. CD version only. Advised to try Warsaw, or this UK store. http://www.winylow.com.
petec
21:00 on 27 January, 2015
Nothing will stop us, 10 years and counting…:)
Keep the Faith!
Hail Hail!
No log in issues here.
Cheers Paul67 for those special CQN clique login privileges :-)
HH
CRC
Kev Jungle agrees with me.
I may have to revise my opinion of Kenny Dalglish.
Great game at Stamford Bridge!!!
Jose doing his moaning greetin face act tonight
Celticrollercoaster supporting Shay,our bhoy wonder along the way
21:07 on
27 January, 2015
No log in issues here.
Cheers Paul67 for those special CQN clique login privileges :-)
HH
CRC
+++++++++++++++++++++++++++++++++++++++++
i can log in fine, thanks for having me in the clique
Sftb
Yeah well I still don’t agree with you!
Though I still admire your earlier efforts that old beltrami himself would have admired!
HH jamesgang
CRC
CelticCliqueNews
BT
Would love Mad Mario to bang wan in! :)
Chocolat .
Johnny Depp flirting with Juliette Binoche …
“I’ll come round some time and fix your squeaky door ”
Delivered in an Irish accent LOL
So, james gang, you think that winning captains IS a psychopath, then? :-)
tonev returns in development squad 0-0 draw with dundee
http://videocelts.com/2015/01/blogs/latest-news/tonev-makes-celtic-return?