If we indulge in some Game Theory……..
We know newco plan to borrow an additional £5m from Mike Ashley before the proposed 4 March EGM.
We know that nomad, WH Ireland, will resign “with immediate effect” if Dave King is voted onto the PLC board.
We know that “In the event that the NOMAD resigns, the Company’s shares will be suspended from trading immediately”.
That being the case, you can bet a covenant of Mike Ashley’s loans is that shares in the company are not suspended. In the event such a covenant is broken, Ashley would collect all the properties he has security on, which by then may well include Ibrox. With immediate effect.
Game Theory predicts that King will withdraw the resolution to appoint himself to the board. It also predicts that Ashley must cover his position in this eventuality, with additional covenants which protect his position.
Game Theory assumes the actors are rational, it makes no allowances for actors who are burdened by an ego the size of South Africa.
King’s belief, expressed in his unfortunate press conference this week, is that Ashley is a man he can do business with. My belief is that Ashley does business with supplicants, not dictatorial types. “It’s not personal, Sonny. It’s strictly business”.
Either way, I had a word with Game Theory, he says they’re screwed.