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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Croppy
The 69 final was a classic example. Big Stein knew that we were slight underdogs due to Jinky suspended and Yogi injured. He sent a team out to get in about the hun forwards. McNeill Craig and Brogan sorted out dangermen Johnston and Persson very early on with some nasty tackles. The game took care of itself after that.
Good film of it on youtube.
Catman
Does that bus still run?
We uses to call it the “papal chariot” because of it’s strict rules.
Again, I’m going back to when yer big bro was in charge…..great bunch of bhoys.
North Ayrshire no.1 Mondeo CSC.
The Singing Detective Demands The Resignation Of Campbell Ogilvie
22:17 on
28 April, 2014
I`m glad you took up the issue of “religious imperialism.”
I don`t have the historical knowledge of the era to do so.
“R.I.” Good phrase,though.Sums up what is happening in parts of Africa.
I get quite frustrated when on SSB (I know, I know) they give no consideration to people’s family situations when they talk up moves. And I don’t even have we’ins! It shows a complete lack of research and leads me to think there is an alternative motive to their ramblings…
Lenny’s wee boy Gallacher is settled at a school in Glasgow, so it would be a major wrench (I suspect) to up roots to the glorious EPL. Never mind if Mrs Lenny wants to go or not!
I’d love to see the Dark Prince, Chris Sutton, as a coach here to put the New Firm (lol) ‘in their place’ as he would say, as well as rallying our lads in the CL.
However, he has lived in Suffolk for many years now, has about 5 kids (from memory), horses, dogs, cats, budgies and the rest at his farm down there…
I quite agreed with wee Fergus chasing Luigi when he suggested commuting from Swindon (so the story goes – apologies if I’ve got that wrong), so the chances of CS moving up I would think will be 0.
Please, some sense!!
That said, I’m usually wrong!
Is it pertinent that nobody has asked the SFA to step in as well as the police and surely when the police are involved we should expect normal law abiding bodies to at least offer their support in order to reassure all football fans and not just prospective ST buyers for Sevcopaths. Or does being able to say they are the games final arbiters mean that they can dissolve themselves from everything ? Even their own licensing capabilities ?
HH
Catman & Pedro
Oh yes the nizzy boys a great Celtic family from Joansun PA5
Carrying on the tradition of Patrick Gallacher (sic) The First Celt to ever lift The Scottish Cup In 1892 I bet they celebrated in the Oul Mill Brae that nite too
his gr grandson still cutting about with big nizzy and the Spateston Bus
Nizzy will put us in touch
Great nite!!
HH
Magnificentseven @22 .46
I think it was Oscar Wilde who said something about defending the undefensible ( poetic license!) but come on, our friend TD spouts such unadulerated tosh, his attacks on fellow Bloggers, especially googybhoy tonight without the slightest ounce of proof – – – -?????
I’m just sad that a blog I have revered for 9 years has degenerated to personal attacks at the drop of a hat. I do not doubt TD fervour for all things Celtic, however, that does not give him carte blanch to attack the integrity of those who do not agree with him. ( calling fellow tims a liar, erroneously, is beneath contempt!)
Respect and love.
67H
Got an email from C TV. Ta and good night.
Gincher 67
Perhaps our correspondent Weefrathetim could offer up some space for Chris’s menagerie to help persuade him to return North. :) Weefra?
Pedro
Bus still going although I have not been on it for a few years. Take the car these days for a quicker getaway
Saltires pass on my best to young Nizzy from a St Anthony’s FP
PA9 CSC
Craigellachie10
23:07 on
28 April, 2014
Good call sir!
Can any teachers out there accommodate Chris’s 5 kids at their school and the extra tuition to convert from the English system to Scottish Highers! Grrrrrrr
He’s NO commuting Lenny, ok!!!!
My Dear Estadio….
Knowing You Are A Fan Of The Radio….
Have You Down-Loaded The “TuneIn” AP…
Apart From Thousands Of Worldwide Music Stations To Listen To…
Lots Of Talk Shows….
And Large Collections Of BBC Podcasts….
Such As Melvin Bragg’s “In Our Time”….
And Of Course,Local Radio Stations Such As BBC Scotland And Radio Clyde…
Which Is A God-Send For Expatriates…..
And A 24hr Radio Station That Plays Only Dylan
The APP Available For Blackberry Is Superior To That Available For Android Tablets…
Catman
Will do.
HH
Succession planning is the buzz phrase in my line of work , and should be for the plc board too. Lenny , for his own development will move on in the next couple of years I’d imagine. I’d say that makes this next appointment as his no2 vital.
It seemed clear Thompson and Mjallby were big characters and contributors , not sure what GArry Parkers role.
Someone mentioned Billy Mckinlay who would be ideal. Ideally a John Collins or Malky McKay however it would likely be to big a hit to their pride to become a no2, even tho they would be a shoe in when Lenny does move on.
Will be an ex-Leicester player or one of the Class of 2003 lol
No Excuses
23:12 on
28 April, 2014
Agreed. Succession is the way forward. Who’s Lenny meeting in Berlin? Is there a game on?
Catman
PA9 eh? Interesting…
Still to firm it up, but maybe meeting BMCUWP on Thursday night for a beer or 2 if u fancy it, might even suggest the aforementioned “ole mill brae”
Great chattin ….St Anthony’s FP
HH & good night.
Resident wins case on flag policing
I would love to see a similar case taken against Police Scotland for the kettling of young Celtic supporters
Tsd
I am lost for the ability to respond to your questions. Tomorrow I may be sober.:) bit only maybe
Jail kail
Esyadio
Saltires…..
Above message to Catman for u too, but if we meander in to that establishment, we’ll probably see u anyway ;-)
Union Berlin v Kaiserslautern
Mr Justice Treacy says PSNI breached the human rights of a …
Judge hits out at police for ‘wrongly facilitating’ loyalist flag protests
http://www.mirror.co.uk › News › UK News › Northern Ireland
Joanstun is it.
John mcginn was telling today of smashing his coupon in as a ten year old on an iced up concrete path sledge run at a proddy school in corsebar.
Had to have his NHS glasses removed from his face, nice story.
Then we had a good old laugh about the used to be guns and the new zombies.
joanstun, its like the port without a view.
TsD,
Evening. That app is indeed wonderful. I suspect you listen to Mark Levin. Correct? Despite finding him annoying, I listen from time to time. It helps to understand a certain mindset of Americanism.
Croppybhoy
I seem to remember the Craig-Johnston spat was at Ibrox. The 3-1 cup tie was at CP. Stein put Hay at inside-left to confront Greig full on – and bhoy did he confront him. Yogi dealt with Johnston summarily, referee Callaghan didn’t see it and the SFA banned him at Rangers’ behest.
Pedro
Look forward to seeing you
HH
Let me guess about 300 damaged seats and no arrests…..
Saint stivs
I was going to ma cot there, but u just mentioned another bhoy I know ( very well ).
That hill at the school was like Lillehammer in the winter, tell John when u see him next….PD was askin for him, his mum and mine were very close friends, he should know who I am.
HH
St Stivs
Behave …:-)
HH
the unthank road said:
So by your logic, if we spout rubbish we should garnish more respect???
Sorry mate but that was a genuine laugh-out-loud moment for me, in the middle of my office too.
As malapropisms go, that is an absolute cracker.
:-)
John o’neil….
Guilty As Charged….
I Occasionally Listen To Some Of His Radio Shows..
But More Usually Read His Contributions To Blogs…
Such As The National Review Online….
He Is A VERY Bright Chap…
I Leave The Alex Jones Podcasts…..
To The ‘Screaming Petecs’ Of This World…
Up The Hoops !
—-
BTW…
Confused By Your Post Last Night….
Nobody Suggested You Were A ‘Racist'[Copyright Lev Bronstein]….
Rwe
Tried to leave your Bhoy a message but fear I failed cos of my technical limitations!!’
God bless him and all of your family.
HH jamesgang
How many of you just Googled malapropism ?
From rm …..TICK TOCK
“Haven’t posted for some time but got an email overnight from an employee at Rangers.
The redundancies are starting and short service employees are being let go first with their jobs being transferred to long term employees, which is fair enough. I have been told that the place is a shambles and is actually worse now than it has ever been, it is openly spoke about within the employees group that some are talking to the press and spilling everything they know and hear.
It’s well known that moral drops when jobs are under threat but it seems we can’t even get this correct with Chinese whispers rife about who is going. For those of us who work in corporate land redundancies and sackings should be short and sharp followed by a debriefing to those left to allay any further worries.
The fact we can’t even do this right is shocking, at least allow those who are being made redundant go with dignity. “
Willem 2 bumming up the BBC. Well I never.
Celtic football companion
Sat 16th Sept 1972
Scottish first division
at Hampden Park
Celtic……………………3-1 Rangers
Dalglish…….02min………Greig…..90min
Johnstone…17min
Macari………49min
———
bottom of match report
the last minute when a fine run and pass by Smith
enabled Greig to score Rangers goal
and earn him a cheer from the Celtic support
hail hail
67heaven
Moral dropping at the bigotdome – should we blame the schools?
Judge hits out at police for ‘wrongly facilitating’ loyalist flag …
http://www.nationalheadlines.co.uk/judge-hits-out-at-police-for…/295761/
I hope this link works.
I would love to see a similar case taken against Police Sccotland for their unlawful kettling of underage Celtic supporters who broke no law.