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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thelurkintim
14:26 on 27 January, 2015
MickTT
14:12 on 27 January, 2015
thelurkintim
13:46 on 27 January, 2015
Anyone smart enuff going to the game on Sunday…be street smart…..if it comes to it …..give b4 given…..;-))
H.H.
₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩
Might be this one….? Give before given… violence?
Ayrshire is Green and White
really, just accept any violent action towards you…..it may come as a surprise that no amount of rational discussion to sum people will end up in violence…..get it in first…. ;-))
H.H.
Red Card me for defending the truth, I don’t care, well i do but…..
₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩₩
Ah hear ye brother….Been on the end of it, am no a fighter and would rather walk away…. HH
Ayrshire is Green and White
Paul67,
just so there’s no repeat – what exactly deserved the yellow card…..
H.H.
jamesgang
14:09 on
27 January, 2015
I’m not going over all the figures again but in summary:
1) MA wants big success and CL – costs a minimum of £40M unlikely to see profit for 9 -10 years.
2) MA puts next to nothing in takes £5M+ out every year, has made £45M+ after 9 – 10 years.
Which option would you take?
Oh and looms as though it’s been deleted, hopefully I’ve no grassed ye in for another yellow..!
HH
Looms…looks
HH
RogueLeader
14:30 on
27 January, 2015
There’s the squad too. Imagine how they’d react if all player sale income was to go straight to SD.
BURGHBHOY
You’re not kidding,mate. A coupla years back,I got a right good whip on the back of my napper for saying ‘Bloody hell!’ in front of her.
Still smarts now.
Panda Hands
12:55 on 27 January, 2015
“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.”
Your paragraph above reminded me of the scene from Goodfellas, quoted below (with a few modifications to get past the moderators)
“Now the guy’s got Paulie as a partner. Any problems, he goes to Paulie. Trouble with the bill? He can go to Paulie. Trouble with the cops, deliveries, Tommy, he can call Paulie. But now the guy’s gotta come up with Paulie’s money every week, no matter what. Business bad? F*** you, pay me.
Oh, you had a fire? F*** you, pay me.
Place got hit by lightning, huh? F*** you, pay me.”
badabingcsc
======================================
Excellent.
Let me alter appropriately for Zombie relevance and we can copy/paste this fine popuar culture paraphrase around…
“Now the guys got Mikie as a partner. Any problems, he goes to Mikie. Trouble with the bill? He can go to Mikie. Trouble with the cops, deliveries, Timmy, he can call Mikie. But now the guys gotta come up with Mikie’s money every week, no matter what.
Business bad? F*** you, pay me. Oh, you had a fire? F*** you, pay me. Place got hit by lightning, huh? F*** you, pay me.”
Think we might be getting a wee bit over hysterical about the police visit.I would think they have just asked not to be making any gestures,or over celebrating at the hun end,leaving the field,etc.Speaks volumes in my opinion about who the real psychos are.
Micktt,
thank you…..i trust u to watch my bak…..,-))
H.H.
And we are off…the 2nd half gets underway.
Well Archie…can sevco come back from that devastating 6 goal mauling in the first half.
Archie….Wooft….and Lee McMangle has bitten a dog that’s strayed on to the park…he has really lost the plot now….wooft he is in to the sevco dugout…but wait…McMangle retakes the field…wooft…but now he is wearing a sash on top of his sevco strip.
Surely…the ref will take action here Archie….but no…its just a warning….and two tickets for crufts.
Archie…..sevco stroking the ball around majestically….really playing wonderful football against this five man Celtic team…graceful, lovely football….wooft…its craig Gordon…..goal, a mazy run by the Celtic keeper….and its 7 nil to Celtic.
But wait…..the referee has abandoned the game…due to Celtic fans celebrating.
Well Archie…who would have believed it.
This is David Tanner for pie sports…and a wee reminder to Celtic fans…Feck youze ya fenian bassas…we ur ranjurrs.
HH
SANDMAN
If the place got hit by lightning-no problem.
It’s full of asbestos,so it wullnae burn anyway…
My son and I are spending the weekend in Motherwell with family and travelling to Hampden on a local Celtic supporters club bus.
Means we avoid match day journey from Edinburgh to Hampden on public transport.
Safety in numbers and less exposure to danger and so on.
Turkeybhoy
I believe both clubs were visited by Police Scotland.
LB
It was stated on the radio last night that the police had visited both clubs to remind them of their responsibilities with respect to crowd safety.
LiviBhoy – sources report the Ibrox squad were given the number of the Samaritans and a tub of vaseline each
Tom McLaughlin
You not joining an Edinburgh CSC?
LB
LiviBhoy
14:40 on
27 January, 2015
Turkeybhoy
I believe both clubs were visited by Police Scotland.
LB
=======
But for very different reasons;)
HH
BMCUW
If you used bad language in front of your lovely wee Mum, you deserved it bhoy!
Please tel her and your dad I was asking for them.
AND POLITELY!
It’s pretty sad to be honest. Players should be able to celebrate a goal in front of their own fans. If the players are not allowed to celebrate they would be as well putting a knife through the baw and locking the gates.
LB
weeminger
Turkeybhoy
Or option 3???
Gets control of Deidco for little more than he’s already thrown into the pot.
Gets a half decent manager.
Throws £20m at some decent bosmans.
Sits back and waits for above and honest mistakes to percolate.
Qualifies for CL with increased revenues for participatiom about to come on stream.
Enjoys attendant benefits across other sales.
Gets use of hampden
Investment recouped in 2-3 years with fatter orange goose laying bigger eggs.
Hope I’m wrong. Every site needs some worriers. Watched too many zombie filums I’ll admit!
HH jamesgang
Tom,
Safety is in numbers…..don’t forget those numbers if needs be…..am not advocating violence…..but sometimes it’s needed…….;-))
H.H.
TLWIO
I agree that the wording of the statement is intended to lend the impression that the floating charge does not cover the stadium.
It may well be true that the stadium is specifically excluded, and it covers only other assets, debtors and what not. Equally, the floater isn’t attached to any specific asset either.
The statement also says that they’re going to be investing in the first team squad, and that the business is in a perilous condition because the fans aren’t buying tickets.
How much of the statement provides statutory information, and how much is PR and spin?
I think, as Rogue suggested, that both interpretations of the Floater can be valid, albeit only one can be correct.
TBB
Twelve held over Dundee United-Aberdeen game ‘disorder’Twelve people have been arrested in Aberdeen and Dundee in connection with football-related violence.
Police mounted an operation in response to incidents in Dundee on 13 December, when Aberdeen beat Dundee United 2-0 at Tannadice in a SPFL Premiership clash.
Police Scotland said 50 officers were involved in the early-morning raids in the two cities.
Ch Insp Murray Main said the campaign against anti-social behaviour would continue over the coming weeks.
Eight people were detained in Aberdeen, and four in Dundee.
LB
Paul Brennan,
be a man, tell me why I’ve been yellow carded…..what the fuk post hav you deleted?
H.H.
RL
Fair point – probably only minor stuff – cars , moveables , player registrations maybe?
As someone else pointed out the real value is in Murray Park , which even the biggest Bears would probably see as expendable now.
The FC needs to be registered at Companies House within 21 days of its creation so it becomes public record and anyone can obtain a copy.
Paul Brennan,
be a man, tell me why I’ve been yellow carded…..what the fuk post hav you deleted?
H.H.
Aye the Iborcs visit was to attend a social function, the Celtic was just business.
Seriously though if “one is as bad as the other”, as the SMSM like to spout, then they had to visit both clubs, nothing in it.
Hx2
Great article Paul.
I would have to disagree with your comments below, however:
“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.”
The purpose of owning 75% or more of Rangers Retail Ltd could prove very interesting.
That is the level at which the minority shareholders (namely Rangers International) cannot stop the issuing more shares! I would suggest that the deal to return the shares when the loan is repaid would relate to the number of shares and not the percentage of shares. If MASH decides to issue a significant amount of additional shares through a rights issue then it is likely that the minority shareholders would not have the funds to buy into it (given that MASH had to continually loan monies to meet day to day running costs). The result would be that MASH would likely own in excess of 90% of the company even with the return of the shares when the loan is eventually repaid.
HH
TBB
Tbh In many respects I really don’t care.
I’m actually more concerned that P67’s leader, specifically stating that Ibrox is included in the FC , is accurate , for CQN’s sake and it’s reputation for being factually correct when other will just regurgitate the spin.
What a delightful irony that the Big Hoose staying open, is actually what will eventually close them down.
To be be fair to other posters…..TheLurkinTim
14:57 on 27 January, 2015
Paul Brennan,
be a man, tell me why I’ve been yellow carded…..what the fuk post hav you deleted?
H.H.
jamesgang
14:44 on
27 January, 2015
Do you think the squad as it is would present a serious challenge? This is a squad the might just about make break even if they can fill Ibrox.
Remember it’s a squad that has 14 players going out of contract this summer. Can they all be replaced by Bosmans at the same cost as the current squad?
Even if they got promoted this year and won the league. They have to qualify for the CL and they don’t get the majority of the monies until the end of the season. Do you believe a squad of similar quality to the current one would be able to qualify for the CL?
Improving the squad will put it back into a monthly loss making situation.
Even if your scenario panned out, it would take him 5 years minimum to fully recoup his investment, probably 6 with minimal squad turnover and he’d get a few million – I’ll say £10M out of generosity – in profit.
Or £30M and more following the minimal investment route.
If he was remotely interested in profit via successful football, he’d be making sure they got promoted this season by adding to the squad right now.
Celtic have rejected a £3m offer for defender Efe Ambrose from Greek club Olympiakos. (Daily Mail, print edition)
eh?
Surely no!
Angry
14:59 on 27 January, 2015
To be be fair to other posters…..TheLurkinTim
14:57 on 27 January, 2015
Paul Brennan
be a man, tell me why I’ve been yellow carded…..what the fuk post hav you deleted?
H.H.
————————-
answer?? Getting fucked off
grrrrrrrtCSC
TheLurkinTim
Gie it a rest ya rocket if you don’t know now ye’ll never know..
Cultsbhoy