A statement to the stock market by Rangers International today confirmed that they are not a sustainable business, have no bank credit facilities and are unable to accept debit or credit cards for season ticket purchases.
These revelations contravene SFA licence requirements, which would need to be met if the club wanted to participate in Scottish football in season 2014-15. Before attaining a licence for the forthcoming season a club must demonstrate that is has the finance available to complete its commitments. Newco Rangers have confirmed they are currently unable to meet this requirement.
Perhaps anticipating their next move, the statement added, “Should the Club suffer a substantial decrease in season ticket income in the next two months, then it would be unable to trade in the short term without seeking additional external funding”. You suspect this two month timeframe will prove to be significant.
That supporters who chose to automatically renew their season tickets cannot do so is demeaning. The financial uncertainty behind a season ticket purchase is such that people have been asked to pay by cash, cheque or direct bank transfer. Utterly, utterly, demeaning.
I sincerely hope whoever is in charge of taking money from fans is in a position to pay them back in the event the club fails. With this weight of evidence, to bank and spend the money regardless would be despicable.
A few points to bear in mind:
No one is in control of this situation, it was not planned for and there is not a silver bullet to resolve things.
The shareholders and are not a homogenous unit, they have different priorities, aspirations and stress points.
These two things being the case, any amount of carnage can take place once the inevitable crash occurs.
The only plan I can think of goes along the lines of, “Hail Mary, full of grace……..”
Sandy Jardine
I know several CQN’ers were good friends with Sandy Jardine, each of whom assured me of the man’s good character. Sincere condolences extended to all his family and friends.
Signed copies of Yogi Bare – John Hughes autobiography, are available now:
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On a brighter note for Rangers fans, the club insist their target is to become champions of Scotland for the first time by 2017.
Someone at Sky is in BIG trouble
Sad news friends –
FC Barcelona @FCBarcelona 4m
The FC Barcelona is in immense mourning. Tito Vilanova has died at the age of 45. May he rest in peace
Bada bing
I appreciate your suspicion
But, even the most mild mannered CFC fan wouldn’t put up with that
Not to mention DU, Sheep etc who despise them as much as we do
Tito Villanova passed.
from the sky sports article posted by Can I Have Raspberry On That Champions League Ice Cream
“On a brighter note for Rangers fans, the club insist their target is to become champions of Scotland for the first time by 2017.”
the first time!!!!
Srs,
Ffs. Tragic.
Just yesterday someone posted he was ill again.
Liked this part on ssn them admitting if they!!!!!! managed to win it would be the first time.
On a brighter note for Rangers fans, the club insist their target is to become champions of Scotland for the first time by 2017.
RIP Tito Vilanova
Dreadful news re Vilanova …45 yrs old FFS
The Comfortable Collective 17:22 on 25 April, 2014
Aye. I read it.
Good to see some accuracy.
Can I Have Raspberry On That Champions League Ice Cream 17:21 on 25 April, 2014
As above…
MattE sorry never read back, but got to admit it bears the repeating.
HH
GMB- I have Paolo CD if you going to Farm
On a brighter note for Rangers fans, the club insist their target is to become champions of Scotland for the first time by 2017.
Sky
Jim White will be beelin.
Any points deducted will be from this year’s total.
If Aberdeen draw Sevco 3 in the cup will their sheep become objects of barter rather than affection?
HH jamesgang
@gazdufc
Rangers planning to be level with Celtic in 3 years!! Ludicrous. ..I mean what are the chances of Celtic getting relegated????
It’s another one of those,nothing will take the smile of my face sort of days!
RIP Tito Vilanova
Prayer for your soul and your poor family.
HH jamesgang
!!Bada Bing!! @ 17:32
Only if it affects their league position.
how much rent will they be forced to pay for the Asbestosdome! …mmmm qutie a bit I,d imagine oor heros like to live well…..follow follow the Whyte and Green
braw …..
Evening folks. Enjoying the blog today and posts re Sevco situation. On a different note, just started reading the Seville book. Captures the Celtic spirit and soul beautifully.
R.I.P. Tito Vilanova, far too young.
RIP Tito Vilanova….a great loss to the game,only
God knows what you could have achieved.
The Club’s merchant acquirer, which processes credit and debit card transactions, has advised that it would require extensive security, including a charge over Ibrox Stadium and an insurance policy at considerable cost to the Club, to protect itself against any potential liability arising from passing on monies from season ticket purchases ahead of next season’s matches.
roll up! roll up! we have a once in a lifetime offer pay cash for sb and we will/will not go bust? its in your hands, so what are you waiting for?
HH
It gets better all the time, shortbread trying not to laugh at champions by 2017 quote was hilarious.
BubblesinfridgeCSC
Android Ed sent up north by Eyebrows.’ No’ voters squirm. Other voters yawn.
Looking forward to glib shameless liars response, one thousand season tickets sold.
PF
They say they have £3 million left. That should see them through to June/July. I think I’m right saying it was 14 th February , valentines day, when the last club went bust. Can we hope for 12 th July this time around? I do hope so, I’m not very good at remembering feast days, but I think I’ll remember that one without any problems:-)
Mind you, every day has a kinda Christmas Day feel to it at the moment.
Why would you pay cash for your season ticket to a club that has “mismanaged £70m in cash receipts in two years”?
Can see money laundering of the highest order.
A message from my Daughter:
Massive thanks to CQNers for donating to my Live Below the Line fundraising campaign! Every donation goes towards helping end extreme poverty.
I know you guys dig deep throughout the year for various good causes. I have reached my donation target so I have increased it a little hoping someone out there can chip in a few more £££s.
On Monday I will be living on just £1 per day for 5 days in a bid to make ending extreme poverty a reality. Eek a visit to Aldi and Soup making lessons … Good God!
Please following and read my link for further details on Team McConnell International Foundation: https://www.livebelowtheline.com/me/janicet67
Thank you for all the support so far! Jx
shares down 19.15% to new low 21.02 another new low
….PFayr supports WeeOscar
16:44 on 25 April, 2014
‘Jimmy Bell- end on £100k per year ..whit fur ??!’
#####
If a shyster takes over a football club he has no connection with and wants to know exactly what’s going on in the dressing room,and what players, coaching staff etc are saying about him, how would he go about doing it?
If Dave King wants to buy out the current sevco owners then he will need to pony up more cash than they have already invested; not the current share price.
Why would hedge funds sell for less than the assets are worth? Why sell at the current share price when it is a drop in the ocean to them?
Of course mr king says he wont put a penny into the current shareholders pockets (and we know he doesn’t tell lies). He wants to invest his money in the club and ensure it stays in the club.
So let me see. How can that happen? Well, a share issue is the obvious route for king to invest without buying the current shares, but how can king’s aims be satisfied without the current owners stake being diluted? This appears impossible.
The answer is simple. Issue new shares to the value of the current shareholders equity (assets minus liabilities), with King underwriting the lot and an agreement having been reached with the current shareholders that they will forego their pre-emption rights (which of course has a value to the current shareholders who will expect to receive that value in readies) .
In effect the cash input will double the value (shareholders equity) of the club. The current owners will then have a 50% stake in a club worth twice as much, so no dilution of value. King will have pumped in cash and it will be in the club.
There will of course be costs involved in doing this and King will need to pick up the tab for that.
The sevco annual report said they had assets of £81.5m (most of it in asbestos) and liabilities of £24.4m. So shareholder equity was £57.1m.
That’s all King needs to put in. A mere £57.1m (plus costs, plus pre-emption rights – lets round up to £70m) and he will have a 50% stake in a club immediately worth £114m. What’s not to like?
We as Celts better start quaking.
One thing , of many , that both amuses and irritates me about Sevco is that they grandstand everything.
EVERYTHING has to be about major “look at us” announcements , reports investigations , yada , yada , yada.
Please just get on with what you should be doing , ie quietly , competently rebuilding an extremely damaged brand which can , if managed properly, survive if not , perhaps , thrive.
The failure to accept that they are not , in reality, anything like what they thought they were ( and even that was never as much as they deluded themselves it was) is actually their single biggest failing.
Until that changes they are forever in the quicksand.
SRS
Think you might be onto something
They are also trying to play the loyalty card ……
Get ST cash in …then advise the foolish ones that, to avoid an insolvency event and the deduction of 25 points , the funding for the squad will have to be slashed
Keep wondering if any of their number actually believe that they will be challenging fur the league in two season …surely not
Btw …I’m sure we aspire to win the CL every year ….we don’t base our economic predictions on it tho
Trying to look at this from Their perspective. I know
Would I pay cash to a Celtic Board for the season that have allowed my club to get in this state or would I just pay per match????
The logistics of this alone are incredible. Will they go back to cash at the turnstile?
Will they have to queue at the ticket office before the game?
All online business collapsing?
PF ayr/ Ernie Lynch
Jimmy Bell on a 100k a year?
Seriously – is that established or just rumoured?
If true ,there you have them in all their vainglorious nonsense.
Oh my aching sides…
Embdy that listens to Schadenfreunde Score Board tonights a hun ;-)