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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magnificentseven supporting oscar all the way
22:23 on 28 April, 2014
night from me too, TD is a real Celtic man, he might spout some rubbish but he deserves a lot more respect than he is getting, open to all
…………….
I have offered to agree to disagree and shake on that as good Celtic bhoys.
But no reply.
BSR, I’m sure your sources are reliable, but I hope they are mistaken, I worry they are not.
I won’t be happy, and will make it known.
It will not stop me supporting my club though.
Could it be that the real reason the sevconians are not buying season tickets is because they don’t cost tuppencehappany next season, prices having risen, and they don’t fancy paying more to see their mob get pumped more often next year?
EC67
croppybhoy,
At the risk of getting confused again, it was Johnston that felt the Wrath of Cairney.
Pretty sure, maybe, I think, perhaps, that it was Fried Egg that received the Haymaker.
SJ, even though he wore the jersey, was not the type of player deserving of physical retribution.
I’m not sure,( really,ed) if it was the same game where Greig hammered John Clark.
I was in the Jungle and thus guy beside me said,”C ‘mon”, ” Where?” I replied.
“Own the pitch, it will only be a fiver!”
I reside this kind invitation.
Big Wavy
From earlier, I thought the comments of disdain for the medieval hordes’ bile songs was more a reflection of how, as Celtic fans, we have grown used to not having such crap sung around us.
The reaction from me was not so much offended as a combination of pity and bewilderment.
We have actually shown that we don’t need them emotionally, so …………………………… a bit like getting over any bad relationship.
You look back on it and wonder what you ever saw in it in the first place.
HH
Anyway off to bed.
Hail Hail
Gordon,
Thanks. I was hoping you were around.
All those 3-1s became a bit confusing.
As I said earlier, life then was all about putting them in their place.
There was a spell when we never lost a meaningful game to them, as in, never affected the tournament we were in.
CowieBhoy, include me in what???
Croppyboy
Davie Hay knuckled Wullie Johnston for making a fool of Cairney after his og.
Jinky ran riot in the mud for a great 3-1 victory.
Once again can I apologise to all CQNers for any undue dissension tonight.
LovernotafighterCSC ;>{}
josimar
Thank you for leaving a message for Tony.
HH
googybhoy ♥ we are all Neil Lennon
22:27 on
28 April, 2014
magnificentseven supporting oscar all the way
22:23 on 28 April, 2014
night from me too, TD is a real Celtic man, he might spout some rubbish but he deserves a lot more respect than he is getting, open to all
…………….
I have offered to agree to disagree and shake on that as good Celtic bhoys.
But no reply
if you have made that offer and been rebuked then I apologise, but much of what I see on here is TD getting it in the neck from a range of posters, or one of our own players being put in the noose for the SMSM to tighten
We are supposed to support the team and each other
goodnight and hail hail
Spellcheck played havoc with my post at 22.28. Honest.
RWE
Cheers for that fella. I guess when their dead offspring turn up I’d hope on our side it would be a mixture of patronising pity & indifference and that same look of ‘haven’t seen that in a while, hasn’t it got ugly’ that you painted..
Our indifference to them would be our greatest GIRUY….
Awe naw et al, when I learn to use this phone I will describe the full demented farago in unexpurgated dementia.
I miss a keyboard, but my young pal is 11 and we go to games together. Tonight he was scared and not from rival supporters. That is not acceptable, well not to me.
Hail hail
Estadio
thomthethim…
We certainly did have the upperhand in those days however we managed to lose the League Cup Final (0-1) to them a few months after that Glasgow Cup win.
ESTADIO
A warm welcome.
You had better get the Celtic TV technicians to move their microphones.
The only songs we heard were from the Undead.
Could that have been a deliberate ploy? Hmmm
Was Chick Young There? – ‘someone could get killed’
googybhoy ♥ we are all neil lennon
A true Celtic Bhoy response – nice :-)
And in Lennybhoys words
Keep the Faith
Magseven,
Well said .
Goodnight friends.
Off to bed, if I can remember where it is!
magnificent seven @22.23
“he might spout some rubbish, but he deserves a lot more respect”
EH?
So by your logic, if we spout rubbish we should garnish more respect???
A non sequitur of the finest order mon ami!!! Utter nonsense dear bhoy;- but – – – –
let’s not fall out about these things, please. We are all entitled to our opinions and it saddens me when TD spouts such piddle without the means to substantiate !
Peace , love and understanding.
Especially to googybhoy who did not deserve that attack!
HH
Estadio,
Master that phone and post more often. No excuses. Pretend you don’t need gkasses like me its easy ;-)
HH
My heartfelt thanks to those who are posting messages on Tony’s site.
weebobbycollins – thanks
Bryan – I laughed out loud at your comments. Thanks
gordon
22:37 on 28 April, 2014
thomthethim…
We certainly did have the upperhand in those days however we managed to lose the League Cup Final (0-1) to them a few months after that Glasgow Cup win.
*****
Ah, the ol’ exception that proves the rule! : > )
Def off this time,
Gordon
I think that loss in October 70 was our only one in a run of 11 or 12 games against them.
Awe naw
. Feck it I’m off home to use the Morse code machine.
Hail hail
Estadio
summa of sammi….
22:11 on 28 April, 2014
It would be offensive to many Celtic fans.
And surely that is the definition used in the infamous act?
Just as Boruc was charged with offensive behavior when he blessed himself.
Just as fans are arrested for singing BOTOB.
Will any of them be getting an early morning chap? I doubt it.
Consistency.
Catman
If it’s the bhoy I’m thinking of, he is off course a corseford bhoy like me and your good self, about 3 years younger than me ( mini catmans age )……..if it isnae him, then he didnae ;-)
2010….would be my guess.
the unthank road
22:39 on
28 April, 2014
magnificent seven @22.23
“he might spout some rubbish, but he deserves a lot more respect”
EH?
So by your logic, if we spout rubbish we should garnish more respect???
that is not my point and you know it
catman
22:14 on 28 April, 2014
saltires en sevilla
21:47 on 28 April, 2014
Where in Johnstone is Aiden from? Does hid dad drink in the town?
———–
pedro sussed it :-)
Spateston csc
Gordon and TTT
We really had guys in the team back then who knew how to handle teams!
If they wanted to play football -then we would play but if they wanted to kick us -then we were equally capable of finishing anything they started!
To me that is something we currently lack IMHO
Big Victor was the real deal but the current crop are not – that’s why we are losing cup ties as we can be too easily put off our game in a one off situation!
HH
The vultures begin to circle to pick over the carcase ( again) perhaps instead of investing hard earned cash into the outfit they enlist their friends in the long arm of the law to do the dirty deed for them. –
Dave King wants police probe extended to Rangers board
By Richard Wilson
BBC Scotland
Dave King believes Police Scotland’s enquiries into comments made by Rangers chief executive Graham Wallace should extend to the rest of the board.
Officers are investigating a complaint that Wallace made misleading statements about finances at December’s AGM.
King expects the rest of the board to be included in the probe.
He believes Wallace spoke with their consent and that they did not challenge his assertion that there were sufficient funds in place.
The former Ibrox director was also starkly critical of Wallace’s business review.
The results were published last Friday, 127 days after Wallace announced the review at the AGM. At the same meeting, he insisted there was enough cash in the bank to run the club until May. Yet in February, a £1.5m loan was sought from two shareholders to meet running costs.
A supporters group, the Union of Fans, has called for Wallace to be suspended after a shareholder complained to police that he felt the remarks constituted a breach of the Companies Act.
Rangers maintain that the complaint has “no grounds”. King, though, is adamant that Wallace and his fellow directors were aware that there was a cash shortfall.
“
The CEO is now subject to a criminal complaint, but I believe his comments were made with the full knowledge of the board
”
Dave King
“It is seriously wrong for this board to state in the review that at the time of the AGM the board, and the CEO in particular, believed that there was sufficient cash to last until the end of the current season,” said King.
“It is beyond doubt that the CEO and other board members [were] aware last December that there was insufficient cash. The CEO is now subject to a criminal complaint, but I believe that his comments were made with the full knowledge of the board.
“Certainly no one came out to contradict him. We should therefore expect any criminal investigation to extend to other board members. It is telling that Charles Green had to step down when under internal investigation and yet the CEO continues with his duties.
“If cash was wasted as a result of mismanagement – presumably Charles Green etc – then what steps are being taken to hold management accountable for this?”
The review stated that 43,400,000 unissued shares could be sold on a pre-emptive basis – to current shareholders – to raise funds if there is a shortfall in season ticket sales, and that a future share issue to raise equity for investment will be proposed to shareholders in “autumn 2014”.
King wants to invest in the club, in return for control over how the money is spent.
“This flimsy review is completely superficial and could have been put together in a day by a relatively junior employee,” the South African-based businessman added.
“It falls well short of the strategic business review that we were promised. There is nothing to read between the lines, no sign of a coherent plan to save this club, and more importantly no hope for the supporters or shareholders.
Rangers chief executive Graham Wallace is the subject of a complaint to police
“I would reject it if one of my CEOs presented such a summary review to me. In truth, it is this board’s stubborn refusal to secure fresh equity that is the cause of the present fragile state of the club’s finances.
“The board clearly hoped to muddle along by using the season ticket advances from fans. This review should reinforce to fans that this board cannot serve as an appropriate custodian for their season ticket money.
“Fans could once again lose their season ticket advances if given to the club at this time. It is unconscionable that this board has done nothing to bolster the finances since the last AGM.”
Wallace’s review also blamed the potential withholding of season ticket renewal money – the UoF are setting up a fund as an alternative for fans to pay in to – for the decision of FirstData to seek security in return for processing credit card payments. This was declined by the board, and fans now cannot pay for season tickets using credit or debit cards.
However, it has since emerged that the finance company raised their concerns one month before the trust fund idea was raised.
“It is interesting that the credit card companies agree with me that the season tickets should not be released to the club,” King said.
“However, it is genuinely shocking that this board has, for several months, withheld the knowledge that fans would not have access to credit card facilities when renewing season ticket purchases.”
Rangers declined to comment.
Lenny is in Berlin tonight , he came over on the easyjet flight from Glasgow today on his own.
The only person who should be offended by GSTQ is Charlie big lugs.
Are we really now offended by that?
Saltires
Are u in Johnstone also?
I probably know u.
I used to go on the spateston, many moons ago, M.G. was the guy that ran it back then…wee Davie ( 2010 ) says that he still sees him, would tell you to congratulate nizzy from me, but you don’t know who I am :-)
HH PC67
was that John( I’ve broke a leg wife who’s ) Greig
you where discussing
hail hail
Saltires and Pedro
Good to hear of a local boy doin well for the young boys
Johnstone No1 CSC
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