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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From the BBC report:
“Though season ticket renewals are crucial to Rangers’ financial position, the facility for fans to pay for them with credit or debit cards has been removed…One caveat to the new payment arrangement will be that customers’ money will not be protected in the event of the business going bust. ”
That’s OK though, because the CLUB would still exist, wouldn’t it?
Mwwwaaahahahahahahah oh my aching sides
My take on the share issue.
There are about 65M shares out there at about 25p each so valuing RIFC about £16.2M.
If another 43M shares are released the original shareolders valuation will be diluted down to about 15p per share.
So to provide them with any sort of incentive to buy the new shares would have to be offered at something around 10p thus raising only £4.3M.
Can any of the Finance bhoys verify this?
Thanks Uncle Jobo
See, you’re not just a pretty weather observing face!
Feel like the dumbo I used to be in higher physics!!!
HH jamesgang
Kitalba advice heeded and thank you again sir.
The carcass is still in good enough shape for one last mauling if you are deluded.
Blind loyalty is a good earner for the spivs.
@BBCKheredine 5m
Neil Lennon also says the target in Rangers business review to win the Prem’ship by 2017 is “ambitious”
See where lack of humility gets you? Lack of self reflection? Long may Celtic have a healthy band of Malcontents, mineshafters and nay sayers to keep our feet on the ground.
By the way – i am a happy clapper…. But we need the Celtic spirit of dissent and suspicion of power that is part of our psyche. The bosses dont alwayd know best. I think Celtic people get that. Thank Ghod.
Granny Macs Bhoy
13:21 on
25 April, 2014
“The board considers that the perfect opportunity to rebuild Rangers immediately post administration in a progressive, stable manner with a solid financial base has been completely missed,”
How can you rebuild something that was liquidated? Or did that not happen in some peepuls world?
HH GMB
___
Maybe he’s talking about the administration which is coming, rather than an adminstration event that happened to a clumpany which is still to my understanding still going through the process of liquidation.
Anyone on Hun Media to have a laugh ,check out the “THANK YOU CELTIC”post.Never have I read anything as vile.Do they actually have mods on that abomination of a site.
Too bad to even print anything from it.Still,it helps to make me hate them even more.
Which is a good thing.
IGC
Send it me
Acc no 18881967
Sort code 19 16 67
Aff oot. Meetings! Blah. Enjoy. KTF. Always!
HH jamesgang
Morrisey – by ‘ambitious’ i assume he meant ‘feckin hilarious’
As it stands, due to a resolution at the last AGM, RIFC cannot issue new shares to non-shareholders, only to current holders.
I’ve seen it written on the lse.co.uk messageboard that the resulting dilution would require that shares are offered at roughly 10p each in order for the institutions maintain the percentage they held – if all shares are taken up. Raising roughly £4M.
If they sell all the STs (not happening btw), and somehow slash costs massively. I think that might scrape them through to October-ish.
Speaking of slashing costs. As it stands even if every body had worked for free since they were launched they’d still have made a loss.
Blindlemonchitlin @ 13:25
Their grandchildren will be Celtic supporters.
“if u dont renew they will cover the loss by selling penny shares to each other.”
Oh, my aching sides…
PennyArcade CSC
Phil should start firing questions at Regan and Co, re the huns licence and possibly trading while insolvent
Correct me someone, but in the light of Fran Zandana’s demise, was it not revealed their players salaries are increased as they go up the divisions;- so last years 7 million could be nearer 10 million next season??? They seemed to miss that in the review, or was it in the very small print?
‘History repeats itself, first as tragedy, second as farce.’
Karl Marx
-Groucho’s smarter, funnier brother
Right put on you extreme deluded thinking cap and see if you can see any light at the end of the tunnel for the zombies,
I’ve even tried factoring SFA skullduggery , intervention by “brothers” but nuuuuuuup nothing zilch nada the spivs have got their big sharp teeth embedded right into the marrow and aint letting go.
But i’m willing and open to listen to any plan that even the most deluded can come up with.
that does not begin with the words Hail Mary :))))))))))))))
!!bada bing!!
13:35 on 25 April, 2014
Exactly!
I think the time for everyone to show their shit hands is fast approaching.
Those Sevco turkeys are talking about an apocalypse? – Well, more like apocalopolis seeing they are turkeys after all
Quick commentary between bites of a sandwich. Far too many conflicting analogies. But there you are.
Ole David Murray was always pretty clever when it came to getting dumbasses to put cash into Rangers. From ENIC to King, NTL and JJB, and counting new equity issued to externals (but excluding MIH and debt) he pulled in something of the order of £100M in his time.
Problem though was that when it came to getting the support to buy in, he failed time and again.
In 2000 they went in for £3M, and in 2004, when matters were precipitous, they managed £750K between them. Rangers supporters were never too keen to pay for their own dreams to be fulfilled when there was always some other mug willing to pay for them.
A couple of years ago, when Charlie Green offered his new Sevco flavoured shares in an attempt to put a tribute act on the stage, the fans ponied up £5M between them. That’s as good as it has ever been.
The RIFC board has today laid out the broad strokes of a plan to refinance their failed production. They’re looking for £30M to deliver the plan, presumably from assorted Dragons, Bears and other financial wildlife. It’s like a cross between The Producers and Fantasia.
What’s the likelihood? Ignore the distress flare that was sent out today. What’s the likelihood that investment fund managers will pump tens of millions of pounds into an act whose sole talent is burning investors cash?
What’s the likelihood of the support buying this latest dream and weighing in big time, when bigger, better dreams were passed up?
It’s nonsense. It’s pie in the sky. It’s the old snake oil in a new bottle.
Today’s ‘report’ simply sets the stage for the inevitable denoument. They need a Deus ex Machina, or its curtains. King becomes god or it’s all over.
Over to King. I see shares trading at 21p today. If the hedge funds want out, King can have the whole set, or as much as he needs, for less than £10M.
From the brilliant Cartuja
https://twitter.com/cartujakds/status/459666711973617665/photo/1
I have just done a quiz in the Guardian about Britpop. Astonishingly, I got 16 out of a possible 30. I just wish my guessing powers were that good when doing the Lottery. No doubt DBBIA will excel with a score of 29 at the very least
And now for our younger readers
http://www.theguardian.com/music/musicblog/quiz/2014/apr/25/quiz-how-much-you-know-about-britpop
Blindlemonchitlin @ 13:25
I think it’s a metaphor for fat, bald orangemen getting slapped silly.
Wee minger – from the start the stadium was always the biggest millstone. When they reformed as a new club and did not announce the mothballing of Ibrox, a ground share with Queens Park or Airdrie, and a total cull of top earners including coachong staff it was clear they were done for.
My fear was they would do the right thing, be humble, build the new brand and then in 3 years from ground zero on returning to the top league announce a share issue. They would then have had a shout at building a decent SPL side.
That they chose not to indicayed that the new club was no mpre than a get rich quick scheme for the spivs and their buddies. They have all walked away significantly richer.
The only hope for Brand Rangers football supporters now is to completely cut the ties with the owners of Ibrox, start an FC Rangers of Glasgow type club, apply to the Juniors and start again.
Ibrox was and is now the killer of any hope they have. what a painful predicament for a follower of the Rangers Brand
The one question no-one in the MSM is asking is ‘can they survive a second liquidation?’
“McT*t’s budget will not be affected ”
Aye, cos he doesn’t have one.
Scullybhoy
Let’s just hope it’s Ceerio, end of, eh?
Can anyone give any odds on what the chances are of the hunbigots actually going totally out of existence, and I mean good by forever. PLEASE!
Or will they come back time and again as Sevco 4 ,5 and six like the Rocky films.
I really would like to see the back of that lot once and for all, what chance I wonder now?
KINGLuBO
morrissey- we should not get involved with the huns problems at any Press Conference IMO, after all our club up till now has bought into the big lie nonsense,and hidden behind the likes of Turnbull Hutton and Stephen Thompson. A bit late to start throwing stones now.
Sprinkling glitter on a turd
“The new Board was ratified 4 months ago”
Yes but when were you all appointed, responsible and being paid…..
greenmaestro
Maybe he’s talking about the administration which is coming, rather than an adminstration event that happened to a clumpany which is still to my understanding still going through the process of liquidation.
————————————————————————
Thanks GM I think I get it now, they just keep making up new clumpanies until they get it right. Pity all those other stupid clubs that hit the skids didn’t think of that! They have some very clever people over there :-D
The Battered Bunnet
If you were an investor there is more to be made in redeveloping in any shape or for the big hooose.
Sprinkling glitter on a turd
“perfect opportunity to rebuild RIFC immediately post administration…”
RIFC was never in administration and had only just been “built” though!
The Club acquired a number of players in Summer 2013 that, based on financial forecasts, it should have known that it could not afford.
CHEATS
Sprinkling glitter on a turd
“plan to re-build and re-establish RIFC…”
But RIFC was only established a couple of years ago!
A lot of my Celtic supporting friends and family have doubted my assertion that I wont see a succesful Rangers brand football club again in my lifetime (i am 41 yr old).
I have never been more sure of anything other than, ironically, death and taxes….
Sprinkling glitter on a turd
“Board BELIEVES that one if the major factors influencing the merchant acquirer to change its terms…”
Do the Board didn’t ask the merchant acquirer why and get an answer, such as, you are by your own admission not a sustainable business!
Did Kubler-Ross ever indicate how long it takes for grieving peoplr to get past the DENIAL stage?
Sprinkling glitter on a turd
Rangers retail holding things up, but you told us RIFC own a controlling stake? Mike Ashley to blame it seems.