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.
558 Comments- Pages:
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They are beyond screwed. I know anything can happen in a one-off match like Sunday but they are so far behind us domestically as to be almost insignificant.
Slapping them senseless will become the norm – the biggest threat to our league supremacy will be ourselves. I hope we don’t blow it.
FFin’ professoriate convenes symposium on Ashley’s motivation:
“He’s essentially got control of one of the biggest clubs in Europe for a song.”
——
“Why was Desmond’s friend Charlie McCreevy appointed on to the Sports Direct board in 2011? Mike Ashley usually carries out his business using a small circle of friends and associates. This appointment in my opinion sticks out like a sore thumb.
How did Mike Ashley get into the Gaelic Athletic Association merchandising operation which shuns ‘foreign’ (non Irish) involvement?
What relationship, if any, does Ashley have with Dermot Desmond given that he holidays in Barbados and has stayed in Desmond’s Sandy Lane Resort?”
——
“We weren’t destroyed before, so the papes have sent Mike Ashley to do it this time”
——
“I think he’s a closet jungle, hell bent on emasculating [Sevco].”
——
“Could it be the CEO of a club who on a flight down to London was overheard talking of his desire to keep [Sevco] in business but in permanent straitened circumstance so that the club could never threaten his club’s domination due to lack of money?”
——
“MA isnt a dafty and clearly he can see the money that can be made by ourselves in run in the correct mannor. Our massive worldwide fanbase is all £ signs in his eyes.”
——
” He sees £ signs when thinking about all of Rangers mechindice.”
——
“A simple calculation – this looks like 11.9 million for ticket sales alone per season. Clearly theres running cost but not a bad earner for MA. Thats not even including – Pie stall sales, car park on match day, sponsers and most significantly…. Merchindice sales!”
——
“I know where this fat [chap] lives, maybe time to pay him and his SD cronies a visit in the Derbyshire Peaks.”
So what we are saying is ……….Ashley is going to f*** rangers cos he doesn’t like blue knights three bears …..king and co ??…….
My gut feeling says I wish he was a million miles from the huns …………..as somebody already stated …..he doesn’t like to lose !!
The Battered Bunnet, ah! Well spotted. Well played, Mr Ashley. Cute.
Dharma Bam, aye. I’m now wondering if Ibrox has a thatched roof!
Greenwells Glory. I was just saying to my wife I could never visit any of these camps It would be far to traumatic. I have seen plenty of the horrors committed by the Germans on t.v. and sadly it continues to happen with Idi Amin, Paul Pot. Isis etc etc as burns said mans inhumanity to man. H.H.
Livibhoy
Cheers – enjoy your trip!
Aye it was the Uefa game I was at, flew out with Darrel and Ciaran for a few days and then back and straight to Ibrox for a 2-1 win :)
I recall a Basque restaurant near the top Las Ramblas that did a nice poached egg on toast for brekkie but that’s about it :)
Emerald bus is till crazy!
Does the Craig Whyte ‘Sevco 5088’ claim over Aybrokes mean anything in all of this?
Or is it another red herring?
And no this is not a BSR fishmarket alternative universe.
oneofthe70percent
13:06 on 27 January, 2015
We all know until very recently the fuzz did not employ catholics or even let their officers marry one,so telling a clubs players not to celebrate which has no basis in law should be looked at by the highest court in the land or europe,and people still want this awful litte province to gain independence ffs
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Sir Patrick was Scotland’s youngest chief constable when appointed to the top post at Strathclyde in 1977.
Roman Catholic……
Know a few retired who are also…good Tims. It’s like every workplace in Scotland everyone needs a TT…..
Ayrshire is Green and White
oneofthe70percent
13:06
You got any links to stories or article’s to back this up? Genuin question mate as I’m currently doing a bit of research into institutional sectarianism in Scotland, a mate of mine is writing a book on Scotland in the 19/20 century and intends to do a chapter of this if he can find enough evidence.
Hi guys any celtic news or talk on transfers?
Paul67
Chances are it will be continued resentment.
Resentment once defined as drinking poison and hoping the other person will die.
The loan will keep them going. Will it see them promoted or has that all gone on hold?
Honestly….what is the point of playing a mob….who get the polis to turn, to warn you about goal celebrations…
Total Farce.
What next…the polis be lifting us if we laugh.
Truly beyond a joke.
Of course…Big Peter will be happy
Feck yer old firm…..
The ignorance is staggering
HH
eddieinkirkmichael
13:19 on 27 January, 2015
oneofthe70percent
13:06
You got any links to stories or article’s to back this up? Genuin question mate as I’m currently doing a bit of research into institutional sectarianism in Scotland, a mate of mine is writing a book on Scotland in the 19/20 century and intends to do a chapter of this if he can find enough evidence.
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See my post…FACT.
HH
Eddieinkirkmichael
Tell him to check out Bigotry Football and Scotland for latest on the subject.
Amazon had it.
So the polis visit Celtic about goal celebrations, I guess they didn’t bother going to Ibrox since there’s no chance of them scoring :-)
Ah know….just tie the Celtic players hands and legs together before the game starts.
They might win then.
Truly saddened….that the polis would actually tell Celtic not to celebrate goals….and its accepted.
Farce of a league….corrupt to the core
HH
oneofthe70percent
13:06 on
27 January, 2015
We all know until very recently the fuzz did not employ catholics or even let their officers marry one,so telling a clubs players not to celebrate which has no basis in law
==================================================
is this a wind up?
Don’t sing songs, or tell the truth….and don’t you dare laugh….the huns might no like it eh.
Sad state of affairs indeed.
Celtic fans being censored.
Disgrace.
HH
And please Celtic – whatever you do – should the result in the Glasgow Derby not go to the liking of Scotland’s newest senior club, and their players adopt thuggish tactics and their supporters resort to type and riot, please, if our club are faultless, please don’t legitimise cultural corruption by attending any leveraged political summit post the game.
https://www.youtube.com/watch?v=8EE4alauiS4
micktt
13:05 on 27 January, 2015
Could MA plough millions into Sevco and make them a force to be reckoned with, could that be his plan….?
Just saying….
Ayrshire is Green and White
——–
T’is my Covent Mhate.
HH jamesgang
Concern even!!!’
jamesgang
13:32 on 27 January, 2015
micktt
13:05 on 27 January, 2015
Could MA plough millions into Sevco and make them a force to be reckoned with, could that be his plan….?
Just saying….
Ayrshire is Green and White
——–
T’is my Covent Mhate.
HH jamesgang
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You had me there Covent…Right an thick will I pretend I know what he means..
Thankfully clarified, although still thick..!
I actually only see it going that way, I can’t see any other outcome…or reasoning for his actions.
HH
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.
P67….do u know who has the deeds…..we demand to know…..;-)))
H.H.
‘Merchindice!?’
Ffs Sammy stoap it, ma sides are achin’!
HH!!
No transfer news then?
Will this be the GMS window?
Hope not.
Many people on here have expressed concern re violence related to the upcoming semi-final. Mainly, that concern has been to do with the response of the Hun support to a defeat. The police obviously have similar concerns so visit Celtic and suggest any potential goal celebrations should not be over the top.
Sad that such a thing is necessary in our society but are the police really to be blamed for taking this action? If , of course, the poster is correct. Any verification?
JJ
Tallybhoy
13:40 on 27 January, 2015
‘Merchindice!?’
Ffs Sammy stoap it, ma sides are achin’!
HH!!
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Twice! (or should that be “twise”?)
Sevco….hand in hand wi the polis eh
What a surprise…not.
These zombies….are a disgrace to humanity, never mind football.
They are pathetic in the extreme.
Who wants to watch live cheating…and honest mistakes galore….not me.
And believe me….those who support this sevco lie by attending the game…..wont be congratulated by the scum.
But carry on.
In fact…why don’t we just put out 5 players….sevco can win then.
Support cheating if you like….it will only come back to haunt you.
Sad.
HH
Thawt it was Ticketus…..;-))
H.H.
Philbhoy
Doubt we will do anything until Sunday is out the way.
Scottishleaf
That bus will always be bonkers.
LB
105 tickets still remaining for the Inter Milan game. There were just under 100 last night so must have installed a handful more seats ;-)
Can anyone explain this : “Despite how many headlines portray this story, that includes Ibrox Stadium.” Paul 67
JJ
Mick TT
I’m with you.
Why go to the trouble of getting control of a burnt out chassis and doing nothing with it when you can get your minions to through some new components onto it and you have an X Plate vehicle ready with a great chance in a 2 car race.
If you win it you get CL millions directly and via Sports Direct merchandising.
Sounds like a simple plan to me.
And before folk point me to phil Mac’s post about Newcastle managers being expected NOT to qualify for CL…… seen it. Not necessarily 100% relevant to this context though.
Comes back to the ease of winning a 2 car race rather than the Grand Prix that is EPL.
And what does MA like?
Money. And winning.
HH jamesgang
HH jamesgang
stpatricksbhoy,
Not sure where you might see the game in Hobart at 0030 on a Monday morning, there is a Hobart Celts Gaelic Football Club and they have a Facebook page, that might be your best chance to find someone who might be watching.
Hope you get lucky.
AR
Jungle Jim Hot Smoked
13:42 on
27 January, 2015
Can anyone explain this : “Despite how many headlines portray this story, that includes Ibrox Stadium.” Paul 67
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jj
it just means mr Ashley has them with the wee curly bits..
curly
no offence!
Jobo
58 last night and 105 today. Strange. Maybe SoT has influenced 47 Inter fans not to travel.
JJ