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:
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Tiny Tim
Hiya,pal..
Young Comrie..
Ah hiv received excellent Reports oan the Lad.
He is on the BENCH for tonight.
Also ,oan the Bench..
Twe Yoofs whom Ah figure wull be Stars in the Future.
Miller n Caird..
They may get a game oan the Second Half.
Kojo
Comrie is on the bench
my boss is peter principle
12:00 on 28 April, 2014
googybhoy ♥ we are all neil lennon
So you were making things up about what Tony D said and he puts you in your place and then you come back and rephrase it . What about an apology?
TonyD67 initial spouting about the GB included the unemployed. This was many months ago.
I do not have the quotes and to be honest cannot be bothered searching back.
That is not the point.
He uses sweeping generalisations to describe people or groups and if he has some factual analysis of this then I will hold my hands up.
Doubt that will ever need to be done.
Sorry to the rest of the CQN for indulging this debate. I felt I had to put my view over clearly.
My point is made and I will not indulge these clowns again.
ScrollpasttheclownsCSC
Bakubhoy 19.58
Do you still live in East Wemyss ?
TT
GG
naw, i’m just watching you type!
Hmm coming off a school bus at 8PM. must be detention.
It’s in the genes, eh?
The young zombies’ll be in that dressing room gorgin’ on the slaughtered sheep Karagandy left.
JohnnyO
Hiya,pal..
Na.. Ah thought that Ah wanted the Sevco Back..
But.. Ah hid furgoat how Vile they Wur..
Noo..
Ah know Bettah..
Kojo
GG / KOJO
Thanks for the info on young Aaron.
He has been staying at Lennoxtown for about 2/3 years now.
A real commitment for someone so young.
Then again I would have donated my gonads for such an opportunity at his age.(:-)
TT
Hello again TT,
I used to play football with Davie Comrie – could that be his Dad?
HH
GG
Was up at Lennoxtown
Lennoxtown a few weeks back when our U14s played them. A lot of them present not just parents, no bigoted chants but Ott fervour for boys footie. Real malevolent undercurrent. and one 40 something zombie even had a scarf.
Visitors almost through looking offside but we cope
Wild shot from visitor
A couple of attacks from the undead
Bakubhoy
That’s his Dad.
What are your initials?
TT
School bus time folks
Back in 10
Interesting where this might go – if anywhere!
Press Association confirming @TelegraphSport exclusive that both #mcfc and #psg have breached Uefa FFP rules. Let the fun begin.
TT, sorry I missed your post. No, I left Wemyss many years ago, although I did come back to Fife, to live and work after my student days, firstly in Denbeath, then Kennoway, followed by Windygates; I finally sold up last summer.
My parents moved to Buckhaven, after they retired, but they have both passed on. My sister and I have taken on their house, in Carlyle Crescent, but I now live in North Cyprus.
I usually scroll past TD’s posts and this morning got a reminder why- he called Celtic fans “dullards” for in his view criticising someone connected with Celtic. He couldnt quite work out that he was the one doing that very thing and hadnt actually been able enough to comprehend what the GB had done. Its no use debating with him, his mind is made up and he sees only what he wants to see.
embramike supporting wee Oscar and Res 12
Interesting where this might go – if anywhere!
Press Association confirming @TelegraphSport exclusive that both #mcfc and #psg have breached Uefa FFP rules. Let the fun begin.
———-
Platini has already said that there won’t be any bans handed out, no way he’d do anything to PSG.
Marspapa.. grand idea mate.. yes voters in the dark blue of Scotland and no voters in theuk olympic kit with their union jack badge proudly over their scottish hearts….
Bakubhoy
Do we know each other?
I’m 50.
TT
Hello TT,
Then I know both his Dad and Grandad – they’ll remember me from the Wellesley Inn pub and team. Ask them if they remember Fast Eddie from the pub pool team. I won quite a few bets off them on OF games!!!!!
SFTBSR.12& OSCAR KNOX
12.51
maybe your son got mixed up with
Jon Paul McGovern…Outfield player
&Michael McGovern…Goalkeeper
both were on the subs bench during MoN’s time
but not at same time
MoN did use 3 goalkeepers in his last game as celtic boss
Sun 29th May 2005
Jackie McNamara’s Testimonial
Rab Douglas
sub David Marshall……33min
sub Magnus Hedman…60min
result
Celtic 0-1 Republic of Ireland
…………….Robbie Keane 89min
hail hail
Robcfc11
Sounds about right lol :))
Back
Any change in score?
Good save by their GK from a few yards
Is Hector looking into matters fiscal down Ibrox way again?
#OhDear
From Phil
Ball from left wing was met in 6 yard box but GK did well to push away.
Bakubhoy
I don’t know how I don’t know you.
I played a bit of pool in my time.
Davie Comrie was a very good pool player also.
TT
Hello TT – I’m 56. We would have missed each other at school – I was at BHS.
You may know a few of my ex in-laws (Kennoway Murphys), if you were at St. Andrews, where my daughter eventually went – she is now living in East Wemyss!!!!!
Visitors sub one of their booked players.
Ma Man of the Match?
Mark Hill..
Whita a Kid..
Ah jist Luv him..
Kojo
TT, aye both he and his Dad!!
FK visitors wide left
Headed over
Visitors GK punches cross away
the_huddle
That being the case what is the point of FFP rules, as fines are of no use – they’ve got plenty money thus the infringement of the rules.
Suspension from European competition is their only real sanction – or they could let the SFA handle it !
TT – I was the only Celtic-supporting regular in the Wellesley Inn. They’ll remember me.
stairheedrammy
20:09 on 28 April, 2014
I know I know. I should ignore him
And usually do but I had to respond when one of his fawning acolytes stepped in.
Will go back to ignoring him. It is not my way to argue by insults and no factual basis for my opinions,
Visitor defender being subbed. Pulled hammy? Who cares?