I’ve been trying to think if there are circumstances where a company has appointed an administrator when they have been paying all debts when due. Newco Rangers are, to the best of our knowledge, paying creditors when due and have enough cash to continue to do so until the anticipated arrival of cash receipts from new season ticket sales. They are, therefore, also able to fulfil obligations to current season ticket holders to stage football games.
It may be advantageous to the club to call in the administrators, because we all know how this story ends, but before you ask an administrator to ‘do his thing’, you need to give him a job to do. Right now a Newco Rangers administrator would be able to pay all creditors when due – and would have money left over.
Under these circumstances, an admin would have difficulty breaking the contracts necessary to reduce costs for next season. Before a court would agree to appoint an administrator appropriate justification would need to be found, and I don’t see it, yet. There may be as-yet unpublicised justification, but I suspect it would require a thoroughly creative, creative accountant, to produce it.
Season ticket sales for next season imposes an obligation to stage games all the way through to May 2015. If the club have little or no chance of meeting obligations between now and then, the directors must recognise this fact when it formally becomes apparent, stop accepting season ticket money, and appoint an administrator to protect creditors’ interests, before they start to consume this cash to pay for day-to-day expenses.
This is the point administration would normally be considered.
There has also been a great deal of hot air about trading insolently and illegally. Companies are allowed to trade while insolvent if they have a reasonable belief that they will be able to generate enough cash to pay creditors when due. Right now, for Newco, this means they can continue to trade while season tickets are on sale. Doing so beyond the renewal deadline, even in the face of terrible sales, is legally justifiable.
The same goes for claims of foul play over Graham Wallace’ pronouncements in December that his club had enough money to get to the end of the season. It was simply wrong that Newco had enough money to get to the end of the season, but projections – any projections – are so caveat-dependent there is no way the police will do anything more than take a cursory look at the issue. Whoever reported Wallace either doesn’t know the mechanics of projections or is simply trying to pee in the Bovril. If you’re visiting Ibrox soon, avoid the Bovril.
Flying a kite, in the form of a proposed share issue in the autumn, will legally allow the directors to gobble up season ticket money between now and then. If/when investigated following an insolvency event, directors can point to the £22m share issue in 2012 as an example of what they planned to do once the season ticket cash was gone. In short, they can trade throughout the summer, until whatever money they bring in is spent, without fear of personal rebuke or liability.
I was reminded in an article in The Herald this morning of the critical move, made back in 2012, which brought the club to its knees today. “The Rangers Supporters Trust urges fans not to renew season tickets”.
This stance was adopted in an attempt to force Charles Green to sell out to the Blue Knights group. Green was forced to ditch his sustainable business plan, promise to spend big, reward his manager with a contract worth circa four times as much as the one on offer and slash season ticket prices. The original plan was to pay players no more than £50k p.a., retain the manager on £200k p.a. and ask fans to back the future by buying tickets at full price.
Notwithstanding the limitations of the manager, Newco should have reached the Premiership with money in the bank from the IPO, while the original investors in the club, including Green, could have taken the long view, and avoided the unseemly haste to get their cash out.
They would have been a significant force to be reckoned with, Celtic’s guaranteed ticket to the Champions League qualifiers would have been competed for, for at least a season. If you see Paul Murray, any other Blue Knights, or their performing puppets, thank them for all their work.
Big Picture: Find the lady
Keep an eye on the property assets. The Rangers FC Ltd’s major creditor is also their only shareholder, Rangers International PLC. After an insolvency event RIFC would be entitled to acquire property assets to compensate for their satisfied debt. Once this happens they can jettison TRFC Ltd to its fate. They can sit as landlords for as long as TRFC can pay rent, or use their assets for a mixture of landfill (Ibrox) and housing (Murray Park).
Big Picture: Fundamentals
While considering all these fast-moving events, don’t lose sight of the overarching fundamentals. It costs circa £17m to operate Ibrox and Murray Park as football venues, before you employ a footballer or coach. No one has suggested how any club in Scotland, with this level of infrastructure to support, is viable without regular Champions League income.
There is a working assumption in some places that a Rangers brand can phoenix indefinitely. This is clearly not the case, a newco takes tens of millions of pounds and tens of thousands of people. One of which will almost certainly not be available next time around, the other of which is in some doubt. My money is on Sandy Easdale’s hunch, that this toxic bird will rise from the ashes only once.
Congratulations to Kris Commons on his enormously deserved Player of the Year award. He and the magnificent Lisa Hague are a credit to the club, and to the values demonstrate so often. As a player, Kris has been peerless; so valuable, so in tune with his surroundings, he could have been born wearing green and white hoops.
We have a few tickets available for the Supporters’ Association 70th Anniversary Dinner Dance this Friday at Celtic Park. It’s always a great event, let me know if you would like to be there, celticquicknews@gmail.com
Signed copies of Yogo Bare available below:
1,099 Comments- Pages:
- «
- 1
- ...
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- ...
- 29
- »
Ouch just saw STFB’s answer so he wins.
SFTB thanks and see my answer above.
Reading were in the old 2nd division at that time.
My elder son was an apprentice at Reading under Mark McGhee. A new member of the grounds staff at the time, as he had just been told his football career was over due to injury, was an 18 year old ex Reading apprentice called Brendan Rodgers.
Wonder what ever happened to that lad :o)
HH
‘A man must be a Celt on and off the field, otherwise he is of no value to this club’. Willie Maley
I recognise that this statement was made with the best of intentions. But honestly, why would a player need to be ‘a Celt’ off the field? And what does that really mean?
Nevertheless, in the modern age and in the current political climate that statement can be interpreted very differently. I posed the question on here before the game, is this intended to “have a go” at Leigh Griffiths, the Celtic Board or the Scottish Police / lawmakers?
The first interpretation that it is aimed at Leigh Griffiths is any easy conclusion to reach.
The second is that the GB were backing Leigh Griffiths by saying that unless you are a model citizen off the park then the club does not value your services and you will be booted out.
The third is that the GB were making a point that Celtic players who step out of line off the park are, like the GB themselves, likely to be subjected to unwarranted scrutiny, arrest, charge (or not) and therefore of no value to the club (banned, moved on)
On the two subjects of shrinking crowds and the Celtic plc making a truthfull statement about the status of The Rangers, it seems plain to me that when our take-up of season books plummets, as it surely will, Peter will be relieved that he has made no disparaging remarks about our friends across the city because he will be citing their absence as the reason for low sales.
He will not use up his alibi for failure.
I have been reading the complaints from the ICT fans on there treatment at Saturdays game if they suffered violence I strongly hope the culprit or culprits are caught and charged.On there complaint about being drowned out by the GB singing that is complete nonsense if they brought a decent amount of fans to Parkhead they might be heard the GB make a noise in support of Celtic and long may it continue.H.H.
Wow – Chick finally gets something right – “it’s not the Rangers Football Club I used to know”.
What a 54itty away support
A Chelsea fan ?! Spat on the Hillsboro memorial yesterday.
That tells everything about that club and their support
mighty tim supporting wee Oscar
17:56 on
28 April, 2014
Thunder Road my son has had this operation done twice. He needed 2 ligaments fixed results of injuries in his chosen sport. First time in 2009 and was done in Bradford through the English institute of sport. Unfortunately this came undone due to the way it was fixed and again his sport. 2nd time done in Ross hall through Scottish institute of sport. This was early 2011 and he has had no trouble since. The surgeon was Mr Kumar who is recognised as the best in this field. Long time rehab helps also.
Hooe this helps..
————————————-
Thanks mighty tim.
Can i ask what sort of age group he is?
I am 47 now and maybe if he is quite a bit younger(very good chance!)i imagine there will be a better healing process going on in a younger body than mine.
I have had bother for years because of impact injuries at the footy and had to stop even just getting a game of 5’s because of the bother i was having.
I have put having the operation off for a few reasons because there were too many commitments.
The way is clearer now and i could probably rest it properly afterwards.
My concern is that once it is removed, i will have other problems because it is not there cushioning the joint….if that makes sense?
I would love to get out and kick a ball again.
Not getting any younger……and i miss it so much.
Plus, I could also REALLY do with the excercise!
Oh dear! I see on Twitter that Phil is hinting that Hector is back on his horse and heading down Ibrox way.
Apologies if already posted – :))
http://www.theguardian.com/football/blog/2014/apr/28/irish-league-champions-cliftonville-gay-rights
Missed the Liverpool – Chelsea game yesterday as I was in Croke Park basking in the sunshine but from what I heard from Brendan Rodgers it was act two of the match in Madrid last week. Chelsea’s defending in Madrid was flawless, it was unbelieveable that a team could totally shut out the opposition. Terrible to watch especially for a team who have spent hundreds of millions on players. Let’s hope any of the other sides, Munich, Real Madrid or Athletico win this Champions Lge.
Cetlic versus Sevco Yoofs.. Charity Cup Final.. starting..
KIds tae Watch.. oan.. Celtic T.V.
Hill… Thompson…n… Nesbitt.
Kojo
Still ,Laughin’
Under 17s game about to start on Celtic Tv and the visitors disgrace themselves already.
They are outsinging us and are in full flow
Hello
Boys Club
Derrys Walls
With no response from the Celtic support.
Wait til the new club come back.
Their absence has made their hatred condensed, fermented and all the more putrid.
How do we retaliate, with the corporate playlist guff.
We allow them to come to our house and act like this.
Celtic as a club has to tell them how it is or they are selling us short.
C’mon the young hoops
I heard Brendan Rodgers interview about Chelseas “back 10” when I returned from the game yesterday, and found myself saying “you should have done the same” a draw suited Liverpool better than them and “Death of football(Mourinho) would have cracked 1st instead Brendan played into his hands.
Scramble in Celtic box cleared.
Corner to Celtic bhoys
Second corner goes for GK
Derry’s balls being well guarded. It is a CUP game after all
Mon Celtic
Long possession from. Celtic. Good passing. Cross cleared.
Good confident spell from the youngsters
Corner to the visitors
Well defended
Just to inject some political comment
I guess those singing Rule Britannia will be voting NO?
dancingbhoy
“They are outsinging us and are in full flow”
The same thing happens when a wee diddy team get on the big stage. It happened at the Morton and Arbroath games remember ?
Celtic hit post. Great shot from outside box hit inside of post and rebounded clear
Till later all
My last post about them seems to have disappeared into the ether, probably just as well .
Thunder road my son was 24 last time he had it done and an international athlete for Scotland and GB. So he was extremely fit. Mr Kumar did say that had Sean been a football player or rugby player then his career would be finished. This was due to the running and turning involved. This helped him carry on in his sport.
He has now retired from competing last year but still coaches adults also coaches MMA classes and goes into schools to teach kids his sport and the benefits of staying involved in sport and not running the streets.
I have just spoken with him and he said if you can live without playing football you should get it done.
Hope this helps but glad to help in anyway we can including rehab.
Celtic header goes wide after a scramble in box
Disgraceful?
Ach.. that’ll dae~ Keepin’ the Party Clean… Refereein’ Decisions…
Surprised?
Surprised if thur wurnae!
Kojo
Nesbitt looks a good prospect
Aye there have been a couple of dubious decisions in their favour
Good move and shot touched away by GK
30 mins gone 0-0
Celtic dominating forcing visitors to resort to long ball
Sound familiar?
Paul67 et al
Who we playing?
Some hassle in the crowd
cheers gg – you on celtic tv ?
The The Third Rangers
.