SPL chief executive, Neil Doncaster, appeared on BBC Radio Scotland this evening strongly pitching the appropriateness of a Newco to be voted into the SPL. He gave a couple of examples to back up his position and used gaps in his interviewer’s understanding to paint a strong picture.
While he accepted that a Newco had never assumed a position in an elevated league in Scotland he gave two examples of it happening in England and even went as far as suggesting that “going down the Newco route” was the normal way to exit administration now.
There is a crucial difference between the examples Doncaster gave and all other examples, including Rangers – over 75% of creditors agreed to a Creditors Voluntary Arrangement.
A note of explanation first:
Football clubs are free to change their corporate structure by application to their association. This has been done my most clubs over the years, in particular in the 19th century when they went from being private clubs to incorporated limited companies. There was another wave when the PLCs arrived. Celtic went through this process in 1897 when it became a limited company and again in 1994 when it became a PLC (Celtic PLC remains the same legal entity they became in 1897 with the same company number).
This facility to change your corporate structure has never been a charter to ditch your debts. Financially distressed football clubs in England often change corporate structure when subject to a takeover. The new boss comes in with the company he used to fund his takeover (like Craig Whyte’s Wavetower) then applies to the FA to associate the club with his new company. If over 75% of creditors support a CVA, this is in order and is always granted. The old company is then usually wound up.
Back to Neil Doncaster. He gave two examples: Crystal Palace and Plymouth Argyle.
Creditors of Crystal Palace agreed a CVA proposed by CPFC 2010 in June 2010. Following this, CPFC 2010 took ownership of the club and successfully applied to assume its league share.
Mr Doncaster may have been concentrating on matters elsewhere on 6 May last year when Plymouth Argyle’s creditors agreed to a CVA. The same day Craig Whyte completed his takeover of Rangers. Following this creditors agreement, the club was bought by the Akkeron Group.
Precedent in Scotland and in England is clear: if you get the agreement of your creditors (by a CVA, for example), the football authorities have no issues. If you don’t get agreement with your creditors, you’re finished.
Before I get asked the Leeds United question one more time…. 75.2% of Leeds United’s shareholders agreed to a CVA but on the 28th and final day creditors were allowed to act, HMRC objected. The Football League used emergency provisions to authorise Leeds share transfer as the CVA had sufficient support. HMRC dropped their appeal soon thereafter.
There is little we can do about controlling the debate on radio. Neil Doncaster has pinned his colours to the mast and tonight agreed to be interviewed by a journo who is also financially heavily conflicted towards supporting a Rangers-Newco in the SPL.
Doncaster also appears to have sprung the same misinformation on the organiser of the SPL Survey, who the SPL chief was very dismissive off tonight, implying the organiser accepted his view after he explained “the facts”.
This is the bottom line for you and for Doncaster. Crystal Palace, Plymouth Argyle and Leeds United all convinced over 75% of creditors to support a CVA.
Here is a list of the teams in Scotland and England (in modern times) who failed to agree a CVA:
Chester City
Farsley Celtic
Rushden and Diamonds
Airdrieonians
Gretna
All of them dissolved. None emerged as a Newco retaining their league status (although Airdrieonians fans bought and moved Clydebank FC).
This man – Doncaster – has no right to present you or SPL clubs with a selected version of English clubs history which plays fast and loose with the most important fact of all – did 75% of creditors agree to a CVA?
Precedents are clear and 100% consistent. Get 75% of creditors on side or start supporting another football team.
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Paul 67
I caught the tail end of the Doncaster interview with Traynor attempting to get him to give Dignity a free pass into the SPL. The interview was a piece of crap
journalism, haranguing the interviewee. Doncaster adopted a set of selected ‘facts’ which allowed him to complete the interview and not be subject to police protection. Nothing has changed , all Doncaster has done is pass the parcel and focused on a tight scope, avoiding awkward subjects like liquidation, and football licenses.
At least Neil D can have a hot chocolate before bed and not worry about his own personal safety ….. parcel now with D £ D!
JEMcG
Let’s hope. I can’t remember exactly where it came up but someone said he could deal with crooks and he could deal with fools but on no account could he work with crooked fools.I imagine it was because they would get him the jail too.
rounding up thier first team
Richie, thank you but listening to me is not enough, the deck is stacked, we need 11 other SPL chairmen to listen to the same facts – and demand the SPL chief exec resigns for misleading people on such an important subject.
Celtic_First, I reckon this line of argument was lapped up at today’s meeting. Alas, most of the media are equally keen to hear it.
We stand alone.
James Edward McGrory, I hear you.
Northbhoy, cheers. We need to tell the world, get the word out.
Let the facts be known.
I also need to go work on the magazine or James Forrest will turn the tanks on me.
Later.
is it possible to “borrow” say, £150M one day so it becomes a debt of x percentage of total debts, vote on a CVA, then repay it the following day.
i get that it would be repayed at pennies in the pound if it was “only” borrowed, but if a preferred creditor status could be bestowed on it, like a floating charge on the broxi bear outfit, surely it would be repayed in full first.
just curious.
it’s hypothetical anyway. they couldn’t raise half a million to be preferred bidders, far less preferred creditors.
Great article Paul.
The propaganda campaign to save the hun continues.
The lack of respect for integrity in Scottish football is continues to annoy me. Its simple. They cheated in their sport and they cheated the taxpayer out of millions of pounds. If rangers had even one ounce of integrity they would find a way to pay their debts and accept their punishment for cheating. All they are capable of is blaming everyone else for this mess and threatening everyone who does not agree with them. Not one hint of contrition.
They are not too big to go bust. Well done for highlighting these innacuracies Paul. Keep on em!
Lubo.
Paul – I hear what you are saying… the risk is that all the normal rules could somehow be ignored by the establishment. Lets hope that doesn’t happen…
OG
“He knows what information is out there – but he has to have it to do something with it”… and there’s the rub, and why I suspect he won’t be able to go much further.
I sincerely hope I’m wrong, but the people who hold such information have an interest in withholding it from others. Shredit Ltd aren’t owed money for nothing.
There have been some interesting leaks, and that does raise interesting questions as to who is leaking and why, but we all strongly suspect there is far more to this – to put it mildly.
Good stuff Paul keep them coming.
Árd Macha
Great article Paul.
Of course, even those clubs who did get a CVA will have paid pence in the pound on their debts. No rule-based punishment perhaps but they are morally condemned, though I’m sure such issues won’t even register with the huns and their apologists…
What would happen if…..
Miller was given written guarantees, bought Rangers (or set up newco) then those guarantees were challenged in court?
Could that happen? What would be the likely outcome?
Get your official liquidation card…free download, but a wee donation to many of the charitable requests appreciated.
Liquidation card HERE
Paul67
Thanks for shedding light on the dark ones
Paul 67
Airdrie fans buying Clydebank ?
Mmmmmm
Regarding Doncaster and the nonsense he spouted earlier, surely if they try to parachute a Newco into the SPL then UEFA will get involved as this breaks their rules, and the principles of financial fair play.
Paul67
Up untill I read Paul Mac’s blog today I was confident there was no way out for them, after reading it my mindset has changed somewhat.
The whole system is geared to help them, the media are in overdrive, the powers that be are in overdrive.
The club, and I accept they will oppose them, where will they be if the vote goes against, will their spin be we did all we could, we couldn’t do any more.
You have said from day one it will be a dirty fight, well mi amigo, how dirty does it have to get ?
They will move heaven and earth to help them, are the club up to the fight ?
I suppose I and others are looking for reasurance, after the highs of yesterday, they sure can bring us back down quick enough.
And while I am at it, where are the sfa with their rules when sally and jardine can say what they want, and Lenny is pulled up for breathing, they are scotlands shame right enough.
THE EXILED TIM,
His blog, as in all blogs, are moderated by people who aren’t totally versed in every detail of the topic concerned and so they are always conscious of protecting themselves legally (broadcasters are in a very different place from papers, even online). If in doubt, it’s pulled.
The difference between saying could and would in one line means the rest of the post goes as they can’t edit a post.
AT can’t provide scoop headlines with access to real information – If he can’t back something up it doesn’t go. There is information out there – why it is being held back I don’t know.
Right help me out here, watching Scotland tonight and Doncaster says we’ve out it back for a week to get clarity coming out of ibrox.
That part right there, we will get clarity from ibrox, hmmmm whats happening in the next few days surely he knows what’s happening.
blantyretim on 30 April, 2012 at 22:17 said:
********************************************************
Ha I was thinking that last week about all the different internet bampot forums and Celtic groups coming along today.
But the Thai Tims can sooth the most savage of beasts, that and the hangovers from the celebration from the day before
the sfa an the spl want the gravy train to roll on and roll on.
and no matter what they say or do its all out of their hands imho
its in the fine detail…….
and that is hmrc want paid along with craig whyte
so unless some one gets the cash to pay them all off they are fecked
so many people are getting all worked up
unless i have got it all wrong and someone has this master plan on how they
do not pay anyone ?
jam67
O.G.Rafferty on 30 April, 2012 at 22:41 said:
There is information out there – why it is being held back I don’t know.
Aw I know you can’t tell us, but is this still to do with the meeting last week? Re licences?
Is Doncaster stalling because he wants them to believe he was on their side and it was the nasty taxman wot did it?
Or is the game really up in terms of justice and fair-play?
Sorry boys stupid iPhone put it back
Paul Goood article as ever.
Crystal Palace is an interesting case. The original Crystal Palace were formed in 1861 and went bust in the later part of the 19th Century, to be reformed in 1905. The Crystal Palace of today is the direct line from the the 1905 club. CPFC recognise that and it is clear in the history books, so they make no claim to being one of the first clubs to be formed in England or to have participated in the first FA cup etc.
The difference being the first CPFC were liquidated the second CPFC have survived (a couple) administration by agreeing a deal with their creditors. Doncaster was trying to claim there is virtually no difference between exiting administration through a CVA and liquidation. So wrong on so many counts.
HH
Cheers Paul,
For clearing some of this stuff up,listened to part of the interview on the way to work.
Thought Traynor was going to wet his pants,I thought this can’t be right.
Total stitch up,anything but truth.
Think Doncaster just relegated himself back to cricket or whatever sport or business he cam from.
Faux Pas? Or something like that..
Surely after listening to him then they will be parachuted back in, no contingency plan in place for the biggest scandal in Scottish Football, total joke.
I will predict the Huns will be liquidated b4 the investigation in to 2 contracts.
JimmyQuinnsBits, 22:37
Only some of the people who have the information have an interest in withholding it. There are others who are keeping it – those who want to see the same result as us – and probably until it’s too late, for various reasons known to themselves
Sir Paul..
Great Insightful .. Insighfulness!
Fur in yer Insightfulness,ye managed tae Reveal tae the General Public.. the answer tae the Age Old Question..
of..
“When is a Given Example…. NO . really a Cogent Example . of the Subject Matter,which is Under discussion?”
The Answer, tae this question has proved tae be mair.. difficult tae find.. than the whereabouts o’ Sir Percy Blakeney..or.. his modern counterpart..Whytey… That Devil May Care.. Will o’ the Wisp.
Howevahhhhh.. You, Kiddo. ye hiv jist Penned the Answer..
Which is…
When the Example,as it supposedly relates tae the Subject at hand… is given By a Member of the Scottish S.P.L.or S.F.A.
Kojo
Still, Laughin’
jebus – it’s like tinker tailor soldier spy on here – exciting though
jackie mac on 30 April, 2012 at 22:50 said:
Aye watch out for the double agents!!
Paul, when I had a chat with Alex T at the game yesterday he alluded to the fact that he was `not finished’ with them. He actually called me back to say this. (He was getting earache from a Winston-type character at this point :-))
How much wider an audience do we need than this? He was happy to get away for a war crime trial that is the subject of worldwide scrutiny to attend the game. What more can we do? I know the answer – I don’t like it – but IF it comes to pass that their re-emergence into an SPL of whatever shape or size comes about then we bhoycott the life out of those chairmen who allow this to happen.
We stand alone but united we have to stand!
HH
Hypothetical scenario
Cowdenbeath promoted to div 1(as has happened), they are struggling financially, huns buy them ( as Airdrie/Clydebank), they spend 1 year in div 1, if they win league, get promoted to SPL & hey presto.
Heard above today, as a rumour of course.
Another rumour here O.G lol.
@GerryBraiden: Fellow hack telling me story to break later which will leave many peddling indignation & outrage re y’days OF game feeling a tad foolish.
Doncaster is feverishly buying time ….. He must know about the CVA scenario …….. I think someone has tipped him the nod that it will all be over in afew days…..neither of the bids are anywhere near being acceptable, and the administrators will have to announce this shortly….end of
@suttonnick: Tuesday’s Scotsman back page – “Miller may yet win day with ‘newco’ Rangers bid” #tomorrowspaperstoday http://t.co/flGHhg6c
ET,
He is a quality journo. As OG points out, he’s not here to defend Celtic.
I think my point – and I’m making a fist of it – is that his objective, obviously, is the story. The story does not include a dissection of Celtic and Rangers and any difference in ethos between the clubs. To get the story he needs to open all channels, hence the overtures to Rangers supporters, and the “two-sides of the same coin” picture. He needs to do this so that he maximises his chances of gaining trust, and getting information. He needs evidence, corroboration, documentation, in order to print. I’d like to see him getting it, but I don’t see it happening.
T4,
me.. a cynic? ;))) Seriously, I’m not by nature, although the post probably came across like that.
hen1rik, 22:53
Too many rumours, too little fact…
Whats the chances of rankers getting skelped by mighty Doncaster.
Pretty slim.
You made a fool of yourself Mr Doncaster.
Bye Bye, and take your team with you……………