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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LiviBhoy,
Thanks for that, that’s a good shout.
jimtim
15:41 on
27 January, 2015
In excess of £1M loss per month currently. 14 players out of contract in the summer. A minimum of two seasons before CL money is received (if they got there at the first available opportunity).
Explain to me with reasonable figures (as I have done several times now to show how I think it’ll take £40M minimum to get to the CL) – how cheaply you think MA can get them to the CL.
In response to WC et al statement, I note that Sports Direct have laid down their own marker by taking out an add themselves, good luck to them :>)
https://twitter.com/barrymcgonigle/status/560099491005890560
Thanks to Barry McG on twitter.
Hx2
Auldheid Canamalar
If you’re around
CelticResearch @CelticResearch 2h
Both the SFA & SPL have proof in writing that RFC admitted liability for a DOS settlement of £2,827,801 on 21/3/2011. Licenece still given.
CR reckons he has documentary that they had/have it?
Worth a contact?
HH
To be,honest,am not too fussed…..but if somebody called u out you out you don’t know why…..;-))))?
H.H.
VHMAN @ 15.54
That’s got to be a photoshop job, surely.
FLOUNCE….TILL P67 EXPLAINS HIMSELF ;-)()()()()(
H.H.
weeminger
15:46 on 27 January, 2015
You win hands down ma friend with the figures . Imho this guy plays around with the sums quoted , amounts like that are loose change to him , but I appreciate he is one shrewd cookie . I cannot understand ( like many others on here ) his continually propping them up . It must be in his interests to have them a competing entity . But as I say ,it’s my gut feeling that he is more a threat to us , than he is to them .
TheLurkinTim – were you not the guy who pasted the big screed from RangersMedia earlier? The one with the F word in it?
Just caught up with the words of wisdom from the man who gave us John Barnes.
Dalglish said: “Rangers is an iconic name of Scottish football, as is Celtic. If people want to do that in an advert, you would need to ask them why.
“It’s like asking me why a psychopath does what he does. I don’t know. I wouldn’t have an answer for what they’ve done. It’s Rangers. If you are a Celtic fan, it’s still Rangers isn’t it?
Funny nobody in the media asking about EBTs or willing to actually discuss the content of the advert.Do people like Dalglish or O’Neill actually have a clue what this is all about.If they had any affinirty with the feelings of Celtic fans who feel cheated and angry about the corruption in Scottish football,they might have done some research and come to a different conclusion instead of being a mouthpiece for a biased media.
thelurkintim
15:54 on 27 January, 2015
To be,honest,am not too fussed…..but if somebody called u out you out you don’t know why…..;-))))?
H.H.
…………………..
Paul’s a busy bhoy, I’m pretty sure he’ll get back to you when he’s able.
Now if you’ve really flounced shouldn’t you be ……. Ahem lurking (smiley)
Hx2
Jimtim – Mike Ashley makes money, he doesn’t lose money. He is here for the big hoose. Thats the end game
As much as I enjoy a wee giggle at the continuing Sevco soap opera I really wish they would just give us a few days off. I’d love to visit CQN for a bit of a debate about…well… Celtic.
Like, for instance, is there any chance we’re actually going to strengthen the squad in this transfer window? Or are we going to play Inter with the same squad that has been so thoroughly pumped by European also-rans several times this season? Will we sign central defenders who will actually still be playing for us by the time the Champions League qualifiers come around?
I try to avoid the posts of the more blatantly paranoid anti-board posters on here but it’s looking pretty reasonable that our board are happily sitting behind the Sevco smokescreen right now. Probably betting on a healthy victory on Sunday to complete the distraction.
We were short-changed in the summer but this lack of progress looks willful to me. And I usually lean more towards the happy clapping than the mineshaft.
emeraldbee\o/ still proud to be an internet bampot
15:57 on 27 January, 2015
VHMAN @ 15.54
That’s got to be a photoshop job, surely..
…,..,,.,,,,,
Think so amigo but a good yin ✊
jimtim
15:59 on
27 January, 2015
What I will say, is that he’s acknowledged as being impossible to predict, so your fears may come to pass. However what we do know is that he seems to like making money.
I reckon £7-10M out/year for more or less 0 input wins hands down over any scenario based on investing in football success.
How much would Celtic sell Efe for?
Any shred of truth in £3m being rejected would Amaze me. I’d take £500k
Vmhan – YNWA Wee Oscar
16:06 on
27 January, 2015
What’s quite funny though us that Sports Direct Fitness have taken over the LA Fitness gym on Glasgow Road in Milngavie, so the team couch and players must drive past it all the time.
Er I know their football looks lazy but I meant team coach not team couch.
CultsBhoy
16:10 on
27 January, 2015
Only thing that makes sense is that the offer was £0 up front and £3M when he wins the CL or WC.
Burning bush
I agree even the most fervent ant Hun posters must be tiring of the nonstop misery that they are enduring…
As for our Board I’ll be astonished if we emerge stronger in Feb.
I predict Kris Commons signing and a win over Hunco will do our Board.
It’s all about news management and PL bonus…
Meanwhile Celtic attendances slip closer to that of Aberdeen.
Cultsbhoy
I like Efe but he ain’t a £3mill player, he wouldn’t be in my first 11 but handy for a replacement in midfield or in defence, I just don’t believe the £3mill figure.
Hx2
weeminger
16:11 on 27 January, 2015
Er I know their football looks lazy but I meant team coach not team couch.
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Team couch? Mr. McCoist handed his notice in weeks ago. Do keep up! ;-))))
PHILBHOY 1443
Will do,bud. My Mum was impressed with you and your family-but then,she judges me by my Kilwinning mates,haha!
Pass on my hugs and kisses to C and O,and have one yerself.
Saw a wee snide remark about ’empty spaces’ at Celtic Park attributed to one of the most successful managers in Scottish Football history, one Alex Mcleish.
Got me thinking back to the highlights of the English cup at the weekend and me noticing the crowds (or lack thereof) in some of the games.
A quick check (did you notice that lurking stenographers) revealed the following:
highest attendance at the weekend was at Man City with under 45,000, closely followed by Liverpool at under 44,000 and Chelski a wee bit further back at 41,000. Now these are among the VERY TOP teams in THE WORLD (or so we are told!!)
Then there was a midlands derby at Birmingham (Big Feck, take a gander) with 28,000, Preston made it into double figures with just over the 10,000 and a former EPL champion team, namely Blackburn played in front of an amazing 5,900 supporters.
Wow, overwhelming stuff from the best football teams in the whole world, no?
Get stuffed Alex – what crowds are YOU playing in front of just now?
Hi Paul67,
Another great article on Ashley’s m.o.
If this was a chess game the King would have already toppled.
Glad they seem to be taking it to End Game. Always worth watching a Grandmaster eliminate opposition piece by piece.
BTW – Something you didn’t mention was RRL paying a £1.6m dividend.
That means Ashley’s new 26pc will return > £400k straight in the back pocket – nice.
BBTW – If Mr Doncaster is so certain The current Rangers are a continuation, could he please explain under what ruling the Club was demoted from his SPL to the bottom tier of of the SFL. That is some draconian punishment, so I’m sure the basis of such a ruling will be watertight and the head of the SPFL can give us chapter and verse on the ruling.
Hail! Hail!
weeminger
16:11 on 27 January, 2015
Er I know their football looks lazy but I meant team coach not team couch.
………..
:>)
Is the Conference call not today?
Any word on the whitewash yet?
“As for our Board I’ll be astonished if we emerge stronger in Feb.
I predict Kris Commons signing and a win over Hunco will do our Board.”
Cultsbhoy,
And by this reckoning we won’t be any weaker either.
Also I’m willing to bet there’s a majority on here who will be doing somersaults should those two things happen.
danso_1888
15:09 on 27 January, 2015
psychopaths, winning captain and co according to that celtic great dalglish one player I very much regret who played for us.
=====================================
Too far danso too far…
Don’t know if you ever saw KD play for us. A fantastic player and hunskelper.
He now makes me shudder but King Kenny never having played for us makes me shudder more.
As a player a complete Celtic legend.
HH
Can anyone offer any pointers? Today when I tried to access CQN from my pc using chrome I end up being directed to a domain purchasing website. Any ideas how to fix this? It’s doing my nut.
On a slightly brighter note CTV’s oversea’s subscriptions are higher than they have ever been since santana sport kicked it all off in 2004.
Although i’ve found it impossible to get figures on the ov/sea’s subscriptions (and i’ve tried many times)
Bournesouprecipe
I’m stamping my feet in frustration…
Just being pedantic but…
both clubs were not visited by the police.
Celtic were paid a visit.
Police still trying to determine whom they should visit to speak to players of Rangers company.
MWD said AYE
Couldn’t resist it and had a quick check (it’s dead easy, stenographers!!) and Big Feck’s team played at home last time and won 2 – 0 agin Mouscron-Péruwelz in front of ……………………….. wait for it …………………………………………………………
16,000 fans.
Well done Big Feck – was the place jumping?
Hugh Bonkle fae Dallas
16:24 on 27 January, 2015
Can anyone offer any pointers? Today when I tried to access CQN from my pc using chrome I end up being directed to a domain purchasing website. Any ideas how to fix this? It’s doing my nut.
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Which DNS service are you set up for?
The ole Sevco betting scandal seems to have slipped away quietly. Funny that.
Natknow.
DNS service? Wouldn’t have a clue.
Hugh Bonkle fae Dallas
16:32 on 27 January, 2015
Natknow.
DNS service? Wouldn’t have a clue.
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Could try this mate :
http://www.howtogeek.com/197804/how-to-clear-the-google-chrome-dns-cache-on-windows/