Gratuitous Alienation rears its head again

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I see Charles Green dismissed out of hand the suggestion that his new company’s property assets were worth in the region of £8.5m, as suggested in a recent blog [he may be referring to Celtic Quick News, but we made no comment on what the assets were actually worth], although he refrained from disputing heads of terms exist for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park.

Green told Talk Sport, “The blog I’ve seen said that we’re going to enter into a sale and leaseback for £8.5m, you can shove the offer where the sun don’t shine. We’ve got a valuation in the share prospectus in excess of £80m.”

Mr Green is clearly an experienced negotiator.

I am grateful to Paul McConville, who yesterday employed our favourite legal term, Gratuitous Alienation.  It was June this year when Celtic Quick News suggested “Gratuitous Alienation [will]enter the lexicon soon.  Gratuitous Alienation is the Scots legal term describing when property (or cash) is transferred to another party without any, or adequate, consideration.”

Paul reminds us that “Mr Green bought all the assets, including the right to over £3 million in cash due to the former Rangers, at a cost of £5.5 million. Now he says that the fixed assets are worth in excess of £80 million, and that a sale and leaseback at a price of £8.5 million is nonsense.

“If BDO [liquidator of the club formerly known as Rangers]challenges the transaction as a gratuitous alienation, then it is for the purchaser to establish that “adequate consideration” was paid for the assets. That is NOT the same as saying it was the best offer anyone made.

“If BDO do raise a court action, I struggle to see how Mr Green can state that he has paid “adequate consideration” for the assets. Maybe someone could ask him”.

I am absolutely sure Mr Green will be able to demonstrate that he paid adequate consideration for the assets.  He is a resourceful and experienced businessman.  If anyone is going to find newly established oil under the Ibrox pitch, he will.

I am also sure that BDO are far too busy to worry about such questions and that the interests of creditors are best served by forgetting about this whole business.  Haven’t these poor creditors been through enough?

Mr Green also told Talk Sport “The club has got cash, and it’s still got no debts.”  This claim was modified slightly by a statement on rangers.co.uk, “The Rangers Football Club Ltd is a company free of external debt”, perhaps suggesting the company is in debt to people or organisations involved in its operation.

It would be interesting to learn what internal debt The Rangers Football Club Ltd has, what terms exist on the debt and whether money raised in the forthcoming IPO will be used to repay debt.  If only Mr Green ever spoke to someone in the media, exposing himself to such questions.

Busy day, more later, hopefully.  We’ll get onto the John McGlynn plan tomorrow.

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  1. Speaking of aliens, how do you know that E.T. is a hun?

     

     

    Because he looks like one. (thumbsup)

  2. Neil Lennon ‏@OfficialNeil

     

    Big thanks to the Green Brigade whose support and singing was fantastic last night

     

    Expand Reply Retweet Favorite

  3. show us the money charlie

     

     

    BDO use FACT as proof …..unlike the msm who use fiction

     

     

    the show is just about to start again

     

     

    great article paul67

     

     

    still think a lot more is happening behind closed doors away from the light

     

     

    jam67

  4. Last post from previous blog:

     

     

    jimmybhoycampbell

     

     

    I’ve just tuned and can advise you have mail.

     

     

    Jayzus, what does KevJungle eat?

     

     

    sannahbhoy, I think that’s a good idea about having a drop box and wonder if it could be developed. So too is the system Oldco operated about reusing season ticket seats, which somebody posted about recently.

  5. This is where it gets real. The Court of Session isn’t as susceptible as our beloved media to PR and spin. Proper questions will be asked and answers will be meticulously analysed.

     

    Wouldn’t it be nice to see Lord Hodge advising a few of the parties to bring their toothbrushes along when he’s concluding?

  6. itsabouttim – Jayzus, what does KevJungle eat?

     

     

    Whatever particulate his tongue alights on during his regular window bathing activities? (thumbsup)

  7. kitalba

     

    same for you I responded to your post on previous thread and dont know how to do repost thing

     

     

    see how much time between this and same post to sannabhoy , you dont appreciate just how slow you are on these things until u see the time between posts

  8. I hope things are made a bit clearer for the MSM to understand today.

     

     

    However, I imagine the tack is to declare the new club as the old rangers (only debt free), so lets forget the past and get on with things.

  9. itsabouttim

     

    see my reply to sannabhoy at end of previous thread

     

    some clubs in Ireland have tried to reuse SB for childrensome logisical problems but it is possible with a large pool of SB’s where people are prepared to move to accomadate seating adults and kids together

     

    HH

  10. Twitter updates from the CoS are coming from @mdkster, @carasulieman and @huddleboard, to name but a few.

     

     

    It’s like watching a match on Ceefax . . !

  11. itsabouttim

     

    12:37 on

     

    31 October, 2012

     

     

    sannahbhoy, I think that’s a good idea about having a drop box and wonder if it could be developed. So too is the system Oldco operated about reusing season ticket seats, which somebody posted about recently.

     

     

    ===

     

     

    agreed . one of their few initiatives we could look to copy ?!

     

     

    dena29

     

    12:44 on

     

    31 October, 2012

     

    itsabouttim

     

    see my reply to sannabhoy at end of previous thread

     

    some clubs in Ireland have tried to reuse SB for childrensome logisical problems but it is possible with a large pool of SB’s where people are prepared to move to accomadate seating adults and kids together

     

    HH

     

    =========

     

    So you do know how to copy ? Liar , Liar , so ye are !

     

     

    It would have to fairly informal and be up to individuals to fir themselves in. Maybe something worth exploring again . I’ll text you with an idea .

     

     

    Sanna

     

    so you

  12. Long Time Lurker says:

     

    Wednesday, October 31, 2012 at 11:41

     

    3 1 Rate This

     

    https://twitter.com/huddleboard

     

     

    Don’t know how they are doing it – Tweets on proceedings, appears to be the most up to date.

     

    ———–

     

     

    Latest Huddleboard tweets have vanished??

     

     

    —————————————————–

     

     

    court probably onto it, and insisted.

  13. From Garngad to Croy I am Neil Lennon. on

    Paul67

     

     

    I don’t have high hopes of BDO doing much.

     

    There seems to be a high powered conspiracy involved in all of this , the plan of which was to leave a debt free football club based at Ibrox playing in the SPL(1/2).

  14. dena29

     

     

    I definitely think it’s a good idea and to my mind, everyone’s a winner. I’m sure there could be some logistical problems but heavens, if THEY can organise it…

  15. doug.k ‏@douglas_kane

     

    @ClydeScoreboard Greene has given away 11,000 free tickets for tonights game ..sweep sweep sweep

     

     

    Interesting. 11,000 free tickets?

     

     

    That’s desperate if true.

  16. Im not sure about this “gratuitous alienation”

     

    In the case of thems, Id much prefer gratuitous annihilation

     

     

    Just a thought.

     

    Back to work.

  17. This is off topic so apologies. I keep hearing – from John McGlynn and people all over Scottish football that the SPL would be a more competitive league if only Celtic weren’t in it. This is nonsense.

     

     

    Years ago I went to a STUC-sponsored conference on the future of football and they had football economics experts there from Birkbeck College in London – apparently those guys are amongst the best on the subject. In their talk they said that it was a nonsense to suggest that Celtic or Rangers (RIP) leaving would make the SPL more competitive. In their eyes football as it is currently set up has a tendency to monopoly (or duopoly). Every league in Europe is the same. Only one team can win the league, everyone else is a loser. The Champions League distorts that through giving the majority of the cash to one or two clubs at the top, thus widening the gap still further.

     

     

    They reckoned that if the Old Firm (as was) left Scottish football there would be a temporary increase in competitiveness but that the gap would quickly be filled by Hearts or someone like that and the old cycle would begin again, only with a different team being accused of stifling competition.

     

     

    This isn’t unique to Scotland – it happens all across Europe. They reckoned that the main ways to increase competitiveness would be revenue sharing, limiting squad sizes, a draft system etc – but most of these measures would fall foul of EU competition laws. So what has been done in America to make their league more competitive couldn’t be copied here. It’s worth taking a closer look at this subject because it’s not as simple as it seems.

  18. Lubo's Magic Boots on

    I learned about amortisation on CQN

     

    I learned about Cognitive Dissonance on CQN

     

    I learned about Gratuitous Alienation on CQN

     

     

    Wonder what the sevcovians learn about on their blogs?

  19. Good afternoon Paul et al from a grey and miserable looking Tyneside.

     

     

    I had the pleasure of exchanging a couple of emails with bjmac earlier and it struck me how blessed we are and much we have to remember, look forward to and be proud of.

     

     

    We have our 125th Anniversary and a very special event to mark it where it all began.

     

    We have the best football team of my lifetime coming to Paradise with the best player of my lifetime in their midst. They’ll arrive in Glasgow to face Our Celtic – the Greatest Club in the World.

     

    We have a gallant band cycling from Ballymote to Paradise to honour Walfrid and his legacy.

     

    We have Wee Oscar’s race night and the example that he and his family are setting for us and that all involved in the fundraising have so wonderfully taken to their hearts. Inspirational, truly inspirational.

     

    We have the Celtic Charity Fund, an arm of our Club that is a constant reminder of our past, our present and our way in the future.

     

    We have a support that is the envy of every other Club that knows what supporting a football team is all about.

     

    We have a young, intelligent, deep-thinking, brave and driven Manager who is aiming to build a team in that image.

     

    We have a team who will of course falter on occasions but who show a desire and belief in their Manager and his staff.

     

    We have Celtic and everything that it stands for. We are Blessed.

  20. philvisreturns on

    jude2005 is Neil Lennon \o/ – E. T’s lawyer will be in touch.: o)

     

     

    E.T. is an illegal immigrant who got a child drunk. (thumbsup)

  21. ArranmoreBhoyLXV11 on

    HH

     

     

    5 alive last night .. Great performance ..

     

     

    Karma has a sense of humour as we know. Admin on valentines day, now lets have some Halloween fun..

  22. BT: Glad to hear JC is well. Haven’t seen him this season yet so need to catch up for a beer at some point.

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