Founder Investors still needed at Sevco


Anyone consuming media coverage would think that the on-going investigation into the registration of Rangers (since renamed RFC 2012) players over the last decade or so was the most pressing matter within The Rangers (until recently, Sevco).  I really don’t think so, although it is a useful rallying flag.  The EBT issue is not short of drama but there are more immediate concerns.

More importantly, I hear The Rangers are still trying to raise the initial £10m Founding Investors capital.  The Sevco Investor Presentation offered these Founding Investors two shares for each one purchased, “effectively doubling their contributions” ahead of a stock-market floatation later this year.  My understanding is they hope to raise £20m at that floatation, without the two-for-one share incentive, in order to see them through several years in the Scottish Football League and at least four years without European income.

If/when this matter materialises, remember, in 1994 Fergus looked you in the eye and allowed you to buy into Celtic at exactly the same rate he and the other early investors did.  This model worked, anyone hoping to emulate Fergus’ success would do well to offer fans the same terms.

The size of the total capital requirement may be as much of a disincentive to early investors as the terms currently on offer.  If you put significant sums in now and the floatation fails to deliver enough cash to allow the company to continue trading, your investment is at risk.  I hope Laurel and Hardy at Hampden haven’t deleted their Armageddon slides.

Even selling 40,000 adult season tickets for Ibrox at £268 each would bring in only £9m (ex-vat), so there is a good chance this company will burn cash reserves for some time, assuming they pay taxes, of course, which was apparently optional for some in the recent past.

Target closing date for Foundation Investors was 6 July with Q3 / Q4 slot for floatation on the AIM market, so we should be seeing a prospectus sometime soon if plans are back on track.  If Charles Green pulls this off he deserves some sort of Businessman of the Year award.

Anyone who thinks the drama is over still hasn’t realised the enormity of the situation.

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  1. KevJungle – Murdo..10 men Championees..1979



    13:49 on 7 September, 2012



    We can’t deal with everything quickly, discreetly, have faith young man.

  2. weeshauns freekick that decked b bag barry


    13:19 on


    7 September, 2012



    What if “they” were allowed to go to the wall in order to help create the flag-loving militia that they would kind of really need once we gained independance in order to still influence and keep us all divided?





    This a very well thought out theory.



    Add to the fact that football is “the new religion” (as far as zealotry ‘fanatasism’ is concerned anyway) and the already deeply established ‘divide’ between Celtic and the team formerly known as Rangers and it is fairly easy to see how it could be manipulated by the masonic global elite.

  3. weeshauns freekick that decked b bag barry on



    13:43 on


    7 September, 2012


    WEE SHAUN…. 1319



    While I strive to be original in my musings,I think VOGUEPUNTER’s reply the other day to an equally ridiculous post of yours is more than adequate.




    Thanks uncle bob, sorry just thinking out loud. Glad you felt the need to fulfil your gatekeeper role. Thing is genius I spoke about things that haven’t happened yet, so either you are psychic or have an over inflated sense of importance concerning your intellectual prowess. Why not let time show mw to be wrong instead of nurturing that god complex o sage one.

  4. KevJungle – Murdo..10 men Championees..1979



    13:49 on 7 September, 2012






    13:42 on 7 September, 2012




    I don’t think it matters who the coaches are or, what skills the players possess when the grooming process is over.


    The bottom line is….as soon as a player pulls on the green & white hoops, then they are fair game. Always has been and, always will be the way of it in this country. imo


    Surely the assaults carried out against James Forrest – this season alone, are all the evidence needed. imo


    Hail Hail





    So you don’t think having a better first touch and the pass and move philosophy won’t lead to fewer cases of getting caught “on the ball”.



    The more you run with the ball, the greater the chance of being nailed.



    Lumping the ball up the park is bread and butter to a big clumsy centre half, giving him the opportunity of” ball and man”.



    I’m afraid your point is not relevant in improving the skill levels of our players.

  5. KevJungle – Murdo..10 men Championees..1979


    12:47 on


    7 September, 2012


    Paul 67



    What do you think would happen from a – civil disorder perspective if – the bulldozers moved into ibrokes ?




    Who cares. Let the army keep order. This is not about us and them. it’s about unpaid bills which needs to be addressed. I just paid the many thousands on stamp duty and was told by soliciitor to be careful what we said the value of white goods ets was as HMRC was clamping down on this as tax avoidance. (3% on a couple of grand!)


    The country incl. this blog and the media needs to retain some semblance of perspectice on what this is about – A huge sum of money owed to HMRC and others for which assets exist to pay the debt …… if they and others paid the burden on you would be less! In that regard ref yesterday – Murray Park is very relevant!

  6. voguepunter


    14:02 on


    7 September, 2012





    I’m pretty sure you’re close to a wall,why not strike up a conversation.







    I hope that you’re not suggesting that BMCUW is a brick!!??

  7. 67Heaven … I am Neil Lennon..!!.. Ibrox belongs to the creditors


    13:47 on


    7 September, 2012





    Thomas has every right to be upset! He is a VERY good defender for his 22 years of age! I just can’t believe they offered him a new deal at cut wages! INCREDIBLE!



    The only thing I can think of is that Celtic are more interested in him leaving at the end of the season and want the tarining compensation money they could be due from his next club since he would still be under 23 when his contract runs out.



    I have supported every move made by Celtic this season but this is a DISGRACE!

  8. Celtic_Cross


    You playing Dundonald on Sunday? Played it on wednesday, for third time this year, a superb piece of Scottish turf, tho’ not as good as Turnberry Ailsa. Enjoy

  9. In simple terms what has changed at Ibrox since Valentines Day 2012



    The stadium itself costs exactly the same to run as previously.



    The back office operation will still be running at the same overhead cost , with any changes not being material. There were no redundancies, except Templar Smith and the commercial guy, and there are new people in place



    The training ground remains and the overhead that goes with it is unchanged



    The football management team are there, and as they TUPE’d over, at the same rate of pay as previously



    The only significant change to the cost base, is in the football team wages.



    Greens teaser document suggested £11 million was the budget . Let’s assume this includes McCoist and Co



    Where does this leave them



    The 2011 accounts showed net operating expenses of £47.5 million . This was before interest charges and player depreciation.



    These last 2 items may not be relevant to the current position. For arguments sake we will assume they are not.


    We also know that it takes £57 million in turnover to break even at £47.5 million in overhead.



    Let’s assume that Green has managed to reduce the wage cost by £10 million a year.



    This would take the net expenses down to £37.5 million.



    That’s a staggering amount to run a business in the bottom tier of Scottish Football.



    What are they likely to generate in revenue terms, bearing in mind it will likely take circa £45 million revenue to generate enough gross profit to cover the £37.5 million overhead



    Well assuming they get 45,000 per game at an annual cost per spectator of £285 (and that’s being generous) that’s £12.825 million (incl vat ) I am assuming the VAT rate is 20% which reduces that down to a net £10 million



    Even before we go any further and consider what revenue may be generated from merchandising, catering and sponsorship, the shortfall of potentially £35 million seems unlikely to be filled.



    We know from an understanding of our own clubs accounts that it’s necessary for regular European income and significant player sales over a 5 year cycle to break even. Celtic have a significantly better merchandising , sponsorship and catering revenue than Rangers had, even as the Oldco



    Even if we assume a share of gate receipts for 10 cup ties, and even if most of them are played at Ibrox before 45,000 all paying £15 , then at best Rangers share will be £3 million.



    That still leaves £32 million to be found. There may be savings to be made in the travel budget, there may be better deals in merchandising and catering than under Murray . However none of this comes remotely close to filling the shortfall.



    My guess is that Rangers will need a share issue which covers cash flow shortfalls of £30 million over the next 3 seasons . That is before they spend any money whatsoever on building a team which could qualify for Europe, because their current squad is wafer thin on numbers and miles away in quality



    And then there’s Ticketus !!

  10. joe millers shorts on

    I’m trying to buy CL tickets online for me and my family, but I am utterly baffled by the “Networks” stuff….grrrrrrrrrr

  11. googybhoy ♥ celtic



    12:39 on


    7 September, 2012





    11:42 on


    7 September, 2012





    Cheers for the empathy Bhoy



    Sorry I haven’t replied earlier as I think I broke the blog after my last post then I had the happy event of getting my pass certificate got the taxi!! Phew


    Anyway it’s good in a sort of way to know I am not alone in this type of cooncil shenanigans I’m already paranoid enough according to the wife

  12. petec



    Maybe I got that wrong.



    I think canamalar was at the game, so he should be able to answer you.

  13. weeshauns freekick that decked b bag barry on




    Thanks mate appreciate someone willing to consider things instead of just childishly pontificating from a dungpile of sheer ignorance, as I said before you can’t teach those who know everything ANYTHING, you can try but it is usually only you who gets frustrated.



    Won’t stop me trying though.




  14. HT



    Do not be trying to put the mix in between me and my good friend,


    otherwise I will inform the committee .


    WEE SHAUN 1400



    Firstly,I don’t need to be a genius to punctuate properly,though it may take one to teach you.



    Secondly,most of your drivel wasn’t actually a hypothesis but a juvenile attack on colonialism.



    I’m not arguing the rights and wrongs of that,just pointing out that you really do talk some pash,right enough.



    When someone like myself suggests that you take your Dave Spart views elsewhere-preferably a library to do a tad research-you know you have a problem.



    But,hey-it’s your problem.



    Don’t make it ours.

  16. I think that Rogne’s gripe is that he has not been offered similar terms as Vic, Kayal ,etc.



    He made the point that when he was “healthy”, he played.



    This suggests that his new terms had a “health” clause in it, i.e., weighted in appearance money as against basic salary.



    Perhaps the boy has ongoing fitness problems. He certainly has the talent.

  17. I would think that the best course of action would be for Celtic to offer Rogne a new, improved contract but specify that it will only be presented for signing at the end of the season and is dependant on the number of games that he has played.

  18. petec,



    Celtic Football Club ‏@celticfc




    #Celtic: Fasan; Fisher, Fraser, Findlay, Chalmers; Irvine, Kidd, McGregor; P. Twardzik, Johnstone, Herron (LB)

















    What chance do kids have nowadays,being taught by a dyslc,dizle,disl eejit that canny read?

  20. The Rangers Football Club Limited confirmed today the appointment of Cenkos Securities to assist with plans to raise additional capital for the Club.



    Chief Executive Charles Green said: “From the day the consortium I led became owners of Rangers we have repeatedly stated our intention to raise additional capital for the Club and would explore all avenues, which may or may not include a stock market listing.



    “We are pleased to announce that we have now appointed Cenkos Securities to assist with our plans. We are still in the preliminary stages of this process and will make further announcements once the Club has been able to consider its plans in further detail.”

  21. ASonOfDan



    Yes I aware of the fact that Rogne seems ‘injury prone’.



    However that problem seems to be affecting much of the team as we know…



    Neil Lennon has admitted they suspect something is wrong with the training regime or facilities at Celtic. Just this week blaming the training surface at Lennoxtown for this.



    How do we know Rogne is not just a victim of this?



    Should he have to suffer if something is systematically wrong with the training regime or facilities at Celtic?

  22. I thought Green promised the loonies in the supporters trust just last week they would give the fans the opportunity to purchase shares and take over ownership?



    ‘which may or may not include a stock market listing’.


    Blows that promise out the water…

  23. BMCUW



    You still here, I thought you’d be away splashing on the Brut for your date with VP!! :-)

  24. Bhoys help needed!



    A few weeks back some of you on the blog had a discussion about a company who were sending out parking charges , my misses has just had a notice in saying she overstayed her welcome in a car park underneath an Asda , they are now demanding £60 but if we pay in 14 days it will be £40 . I cant remember who had the discussion but can anyone remember the outcome?




  25. AikiBhoy



    How do we know he is not just injury prone?



    I trust Celtic offered him a contract that reflected his worth to the first team.

  26. macjay1 for Neil Lennon on

    Thomas Rogne.


    You`re a cracker,son.


    Don`t negotiate in public.


    Get different advisers/agents.


    Celtic are bigger than them all.

  27. macjay1 for Neil Lennon



    14:25 on 7 September, 2012



    Thomas Rogne.


    You`re a cracker,son.


    Don`t negotiate in public.


    Get different advisers/agents.


    Celtic are bigger than them all.








    Wise Words

  28. Barcabhoy



    Your figures would stand up to any reasonable scrutiny.



    Let me put it the way I see it. Green commits. SPL/SFA tell them SPL is probability, SFL1 is worse case.



    Turns out it’s not, it’s SFL3 and none of the financial plan works for a club that size. Every other interested party, including Paul Murray, know it full well. Green’s backers want his head on a plate. The escape chute cord is well and truly pulled. Start the season, get ra peepil to buy into this as ‘Rangers’, sell them a pup as soon as possible.



    All he needs to get back is £5 to £10m to save face, break even or make a wee profit for investors. Season tickets have provided the cashflow working capital until the share sale.



    That’s it – there is no plan beyond that. Any failure will either be blamed at the fans for not supporting the share sale or not turning up in the numbers they are supposed to and selling out Ibrox. The cash will fund enough months to see Green exit before it bursts. Beyond the 6 month plan someone somewhere is telling them they will be catapulted up at least 2 divisions next year. If it’s the same people that hatched the SFL1 plan they are heading for the liquidiser again.



    To survive more than a year they need to get to every cup final, maintain publicity, full houses and get a leg up 2 divisions next summer. Odds? Pretty long I’d say.

  29. Thomas Rogne has missed Celtic’s last 3 games through injury. His last game was Helsingborg away. He found himself fit enough to play for Norway’s U-21 side last night. Norway play England away on Monday. If Thomas plays in that game he will struggle to play at St Johnstone on the Saturday



    Such is the state of his fitness, it is impossible for him to play Sat, Wed, Sat



    In those circumstances, Celtic are quite right in their contract offer

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