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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Sevco now worth less than Wanyama!
HAil HAil
Just read this on RM:
“Green is the fall guy in all this but they probably knew they would have to blame him to make us believe in them.”
Hard to believe someone could be so deluded.
Meanwhile the fall guy trots around on his racehorse at his chateau in Normandy…
weeman67 @ 14.17 hrs.
“Where does Ticketus stand in all of this…..????”
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I asked the same question this morning. I just can’t believe companies with a track record such as theirs just walk away from their “invested” millions.
Always questions, never answers.
HH, always in Celtic.
my boss is peter principle
14:13 on 25 April, 2014
A little less than £3.5m but closer to zero. 120 days to find out there f***ed lol HH
Auldheid
I sense that your work recently on licensing, together with the SPFL moves at SFA board level, will ensure that there will be a new sensitivity around club licensing matters down Hampden way.
Wouldn’t be surprised if Sevco were required to lodge a bond in order to get a licence. The risk of defaulting on fixtures is writ large in the Sevco announcement today.
We’re skint.
We need to play to make money.
We need a licence to play.
We need money for a licence.
Repeat.
Sevco now worth less than Bangura
Alex Thomson’s blog on the Deadco report finishes with..
“Well you can’t criticise them for not facing up to the post-admin profligacy….”
Actually Alex, we can.
Their plan to fix the profligacy is not to live within their means and build confidence, but to get 30 million from somewhere to maintain the illusion that the business is robust.
It is bust NOT robust and they are pretending otherwise, but they need to be seen to have a plan and be the good guys. They need to placate the hordes who have been lied to and fleeced, but they cannot be really honest about the deception, because raising 30 million requires the same hordes to have confidence in the business.
The SMSM and sports media in particular are once again sucked into the charade of this business disguised as a club.
HH
dontbrattbakkinanger
14:30 on 25 April, 2014
Sevco now worth less than Bangura
__________________________________________________________________________
Touche´
HH
My late grand mother was always of the opinion that those who died of cancer went straight to heaven – they’d served their time such was their suffering. I hope she was right and I hope Sandy Jardine is at peace today.
Sevco are fooked – but we all knew that…
Great article, Paul 67.
You’ve summed it up, Hail Mary indeed.
paulsatim is neil lennon
14:13 on
25 April, 2014
Coinstar machines already being installed in ticket office
VG.:}}}
From Union Of Fannies:
https://pbs.twimg.com/media/Bl5Sk1sIEAAT-wz.jpg:large
Oasis 1/3 to headline Glastonbury…..
Just in from work to read today’s jollification somewhat dampened by a phone call from youngest daughter to say her debit and credit card had just been stolen, car broken into outside the flat (I know but you cannae tell them).
I knew I shouldn’t have bought a flat near the Hover Dome. The slippery bassa obviously hadn’t heard that they are not accepting cards down Ayebrokes way. Best thing is plod reckon that they can’t come round until tomorrow to investigate it and she’s not to disturb anything. In other words leave the car with a broken window. I think I’ll call her back and tell her to tell them that she heard the perpetrator singing TBOTB and I’m sure they’ll be round in a shot.
14:30
Bill McMurdo’s son tweets “Reviewing the review”
He’s a bit slow that boy.
Excerpts from London Stock Exchange websites for traders. Pretty neutral English site. Looks good for shorting to 19p minimum if you fancy a flutter. Do your own research.
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I don’t believe it is a takeover or that there is any intention to buy shares in the current club. I have long held the opinion (just an opinion) that this plan is the crash the whole thing against the rocks and then pick up the pieces.
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The board called King out and DK himself in on record as saying he’d only invest if no one else does.As yet he has not given any hint as to how much he can or will invest.If he’s serious why doesn’t he start of the account he says he’s opening for the fans cash by depositing X millions.
He also,as part of his stay out of jail deal in SA,agreed to repatriate all his overseas assets to SA.
There’s a limit to the amount you can take out of SA and it’s no where near the amount required.I think if millions of pounds of DKs money appeared at Ibrox then SARS would want to know where it came from.
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Even with something in the region of £40M being given to TRFCL,it cannot sustain itself and has run out of working capital within two years. Probably best to close it down,or sell it to the highest bidder.
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Shorting rangers shares today would be the way to go I think.
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If Rangers is “on life support” but they won’t seek loans secured against particular assets, one has to ask why. I suspect it is because they don’t believe themselves that they own these assets. This would also make the initial purchase price of GBP 5.5m look much more plausible. Unfortunately it would also make the current share price look about three times higher than it should be.
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definitely a short….. the need for a new share issue to be announced
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RE – Contingent Liability (Craig Whyte)
The ownership documents of the stadium are on the internet and land registry if you look for them. They state TRFCL own the stadium.
The accounts do not state anything of the kind. They value the assets as part of TRFCL and RIFC as the parent company.
They also state Mr Whyte wrote a letter to them, which they have not taken into account, as they are not lawyers (I’m paraphrasing).
It’s there in official public record if you look for it. The point is whether the transfer of assets is legal.
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This company is technically and practically insolvent by the sounds of it and yet they are still trying to hobble from payment to payment and accelerating the use of funds that relate to next year’s income.
I have struggled to work out the logic in what King is trying to do – at first he seemed to be using the security idea as a carrot for the fans ie by doing this the club will not be able to finance these key assets (“where are the deeds” kind of mentality). Now it has evolved into this is to protect shareholders from losing money. Ultimately both are pie in the sky as the security will not happen and King knows this. I guess by doing this he is building sizeable support and collecting some funds into one place. I have wandered if King’s aim here is to have a funded corporate vehicle that will facilitate a takeover of some description (with further funds from King) once an insolvency event is triggered.
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I believe he will attempt to buy the stadium and arrange transfer of the Auchenhowie lease from TRFCL in liquidation. These were the only assets that Sevco Scotland were interested in. King will follow the Green model with an offer to buy Ibrox at a fire sale price of £1-2.5M using other people’s money. Since the institutional investors won’t touch this financial basket case,the season ticket money in the trust could be used to finance this acquisition, assuming everyone agrees.
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Well, if the club folds during the season, ticket holders who bought their tickets with credit cards could go to the card issuer for a refund. Clearly the credit card companies think this is a likely scenario and that’s why they will only offer services if the company underwrites their guarantees. It is very serious indeed that a company of RFC’s status is being blanked by credit card companies.
I’m also puzzled by who the company thinks might want to buy shares in any future issue.
This looks catastrophic.
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I think the devil may be in the detail – it refers to extensive security, including standard security over the stadium. I would suggest that the Stadium is not enough which makes sense as it isn’t worth much in the absence of a football team. I’m interpreting this as saying that Rangers are not in a position to offer sufficient security to meet these requirements.
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The club needs serious investment now.
Amazed at the share price – I’d divide by 10.
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As anticipated, new low today…not much left to support the share price in my opinion.
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11.54% wiped of share price. Value of RIFC drops from just over £17M to just over £15M.
As I said, i dont see much now to support this price
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-13.46%…where will it bottom ? 10-12p for me. My opinion, the assets are not worth much more than they paid for them when the rangers football club ltd was liquidated.
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The thing about investing is to know when to cut your losses. It has to be an unemotional attachment. The professional investors will do what’s best for themselves.
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From a business perspective this has got to be one of the poorest investment opportunities currently trading on AIM (AND THAT’S SAYING SOMETHING).
Aim is currently flooded with undervalued junior miners and oilers of which some are being priced under their cash value without even taking any of their assets or future growth potential into account, as such there is absolutely no case to be presented for purchasing shares here, even at this lowly level.
The report paints a very dark picture and as has already been mentioned, they expect to be back at the top of the table within a couple of years but have provided no case to back this up, in fact quite the opposite !!
All we really know is that at least 2 new highly paid posts are to be created but no detail of how costs are going to be cut, it really is a very strange and indeed contradictory report which I’m sure most will see as complete and utter pie in the sky.
Good luck anyone who fancies a “dead cat bounce” but I think you’ll need it.
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Looks like the target price for this share is 14.3p. With only minimal shares being traded not sure how the market makers it will get there though.
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I’m done with this stock now. Good luck to all the investors the new club and the old fans.
Bye
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!!bada bing!!
Liam G might have been tweeting hints last night as mini GMB went on all night about him hinting at them reforming. Now I cannae get her back to her studying!,,
HH GMB
Huns are dying again.. Shock horror
Going by auldheids post yday another household of the celtic family will not be at parkhead next season.
To me thats bigger news.
Away to bed.
We shall overcome ✊
lse.co.uk comment:
‘The New club old club debate will never change, but think back, when Rangers (Now dead) went into Liquidation, it was all over the press and widely accepted by everyone that Rangers (the business and club) was terminally ill and dying. It was Charles Green who first perpetuated the myth that it was the same club, why? Because he knew that many of the old Rangers fans would not support Sevco if they said otherwise, this would have been bad for him as he wanted (and got, and spent) their money. Like Whyte before him, come in say the right things, the fans will (in the most part) lap it up, say yes sir no sir three bags full sir and he can do what he likes. I think the New club old club debate is absolutely linked to the success of Sevco as a business. As an Aberdeen fan with probably the highest debt in Scottish football of a club not in administration, I know that if Aberdeen were ever liquidated and a new club started, they would be a brand new club. I would support the new club and remember the old club. But I would know that they are not the same.
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New method of payment at Ibrox
http://twitter.com/EdKane1070/status/459672728535306240/photo/1
HH
My wee neighbour is a ST holder at Mordor. Used to be your typical blustering one of the peepul but over the years I’ve made it my duty to educate him at every opportunity on the reality of Sevco and the fantasy perpetuated by the MSM and he is now a more balanced human being.
Recently the penny has finally dropped and it’s like somebody let the air out of him. Wee soul.
Bumped into him at lunchtime and he looked awful. “What’s up?” I innocently enquired. He then launched into a tirade against the spivs, conmen etc at Sevco finishing up with the classic and long hoped for ” We’re f****d. It’s over”
So, ONE of them has finally got it.
I didn’t know whether to burst out laughing or give him a a wee hug.
Agent Green. Educating zombos since 2012.
Leftclicktic:
This is an extract from A Terrible Revenge, do you want this one? Also I noticed I have an electronic copy of After the Reich, I’ll send that too if you want it. Do you know anybody who has my e-mail address?
——————————————————————————————————–
In January 1945 the situation in the eastern provinces of the Reich grew more desperate by the hour, and soon the land routes to the West were cut off.
Hundreds of thousands therefore attempted to trek to the Baltic Sea with hopes of evacuation over sea. The long trek to the coast was marked by bitter cold, and yet the refugees had wished for even lower temperatures; for although the ice over the Konigsberg Bay (HafI) was thick, it was not always strong enough to support their heavily laden wagons. Approximately 24 km of ice had to be crossed in order to reach the port of Pill au on the Nehrung land strip on the other shore of the bay. Sometimes this stretch could be negotiated in six to eight hours, sometimes it took days. Exhaustion and freezing temperatures claimed many victims.
What made the scene all the more ghastly were the Soviet planes executing low-level assaults, mercilessly mowing down refugees with machine guns or bombing the ice to crack and weaken it, causing many wagons to sink in the waters of the Haff. The refugee trek was an unimaginable struggle against desperation.
It has been estimated that half a million refugees travelled over the frozen Haff in order to reach Pillau or other harbours on the Nehrung strip. Getting to the Nehrung peninsula did not mean safety, however, for air attacks continued to take more and more lives. Of course there were military targets in Pillau, as in any harbor. On the other hand, a military justification cannot be made for keeping such a harbor under constant fire, when it was no secret that tens of thousands of civilians waited there for evacuation.
Admiral Konrad Engelhardt had been entrusted with the rescue operations.
On the order of Fleet Admiral Karl Donin, he placed every available ship in
the eastern Baltic at the disposal of the evacuation effort. A total of 790 vessels
took part in the enormous venture, including naval and merchant ships as well
as smaller private craft. Often convoys of as many as 12 ships would depart at
one time. This Baltic Operation eclipsed in size and difficulty the otherwise
memorable British naval evacuation at Dunkirk in May 1940.28
It proved to be a relatively secure method for getting many refugees to the
West. However, the few catastrophes at sea were so sensational that an impression has emerged that the sea evacuation was as ghastly as the treks.
The best-documented uagedy is the sinking of the Wilhelm Gustloff on
January 30, 1945. She was sunk by Soviet submarine S-13 under the command
of Captain A. I. Marinesko. The Gustloffsailed from Pillau along the Pomeranian
coast for Mecklenburg, carrying more than 6,000 refugees. Several hours at
sea, she was shaken by three successive explosions and began at once to list to
port. The Baltic seas were rough, the decks covered with ice, the lifeboats frozen fast and the water temperature was 2 degrees Centigrade (35.5 degrees Fahrenheit).
Despite the fact that other ships were in the vicinity and that the Gustloff
took 90 minutes to sink, barely 1,100 persons were saved.
when they go into Administration in a few days ….will the powers at be ask for a debenture up front to ensure they can fulfill their fixtures ? Livingstone FC were told they would have to a few years ago….
whatever happens it will be braw ….
Coolmore Mafia
Some great stuff in that post…
For those of us who are slow on the finance side of things this was one that caught my eye.
“Well, if the club folds during the season, ticket holders who bought their tickets with credit cards could go to the card issuer for a refund. Clearly the credit card companies think this is a likely scenario and that’s why they will only offer services if the company underwrites their guarantees. It is very serious indeed that a company of RFC’s status is being blanked by credit card companies.
I’m also puzzled by who the company thinks might want to buy shares in any future issue.
This looks catastrophic.”
First the banks refused to do business with them due to a lack of confidence. Now the credit card companies do the same because they have no confidence that they wouldn’t have to refund the season ticket money when the business goes into administration.
Death by a thousand cuts CSC
Coolmore Mafia
14:37 on
25 April, 2014
Just a wee note, as I don’t want people giving that site more respect than it deserves but lse.co.uk isn’t the official LSE website. It’s London South East, and while it’s primarily used by people with an interest in shares, anybody can and does register and use the site.
New low on rfc shares, 22.5p down 13.5% for day.
Mind lse is not official site, it stands for london south east, not stock exchange. Just saying.
Traditionalist88
Yet it was the same Charles Green who was going around in 2012 ,telling anyone who would listen, that, if the CVA wasn’t successful, Rangers’ 140 year history would go,along with the club.
Strangely, not many in the SMSM ever reminded him of this when he suddenly changed the message.
If Graham Wallace had published the now legnedary,120 day review within the 120 days, would the mugs have still been able to pay with their cards? If so, is this incompetence on behalf of the board?
Does Mr.Wallace have an ulterior motive for making things more difficult for the mugs to “invest”?
Hmmm!
HH
Neustadt-Braw
Livingston FC
LB
The best thing about the next jelly & ice cream fest? The MSM,try as they might, will have no angle to peddle the Armageddon line.
HH
Greenpinata
Nobody here has ever answered the Ticketus question, AFAIK.
it beggars belief that a company specialising in football, lent that sum to whatever hun tribute band it was.
beatbhoy
Spot on. Some in the MSM were afraid for there personal safety and others had different motives, of course.
HH
Leftclicktic:
The naff formatting of that last post was because I copied from a pdf to here, somewhere the formatting got screwed up.
The pdf’s are the book though.
*their
coolmore mafia
14:37 on 25 April, 2014
Excerpts from London Stock Exchange websites for traders. Pretty neutral English site. Looks good for shorting to 19p minimum if you fancy a flutter. Do your own research.
NEUTRAL!!!!!!!
This is worse than what is being written on here….oh if someone could post that on FF….
Best thing about dealing in cash is that it is less accountable and comes out fantastically clean in the wash, but where are the bears going to keep this ST cash? Under Broxi’s bed?
I can’t see a reputable bank, ok I know, accepting large amounts of soiled readies from anybody. Aye, in a word they are Rogered.
From the review…
“The Chief Football Operations Officer will also have the remit to develop the Club’s player asset strategy which will build a long term structure and plan to deliver playing talent for the Club and maximize value from player trading”
will Sleekit be reporting to this guy I wonder….in which case it’ll be a demotion….walking away could be a distinct possibility..
The fact they used the Dec 2013 figures as their financial position is telling – the 3.5M is long gone and they will be well into the 1.5M emergency money.
they should have submitted accounts as of 31march to the sfa – i am sure regan and ogilvie are on to this