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
- ...
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- »
Vmhan
Some concerning , but nonetheless predictable pictures there
Any chance of them being publicised ….or do CFC only do that to our own fans
From @celticservant
Cancel your column about both sides being as bad as each other @LeckieBill – Yir employer’s been done like a kipper. http://t.co/TzgKebii6K
From jgall1976
@celticservant pathetic levels of churning out p*** that isn’t researched or verified yet again. How to be a Sun journalist – read twitter
Johnny the Tim
You may have to wait a few hours but you’ll get it, go in early, have a walk about the city, go back when they tell you, no problems.
The story below is the first I’ve seen anywhere with some whispers from the SPFL Board that now includes PL as a member, I understand. Apologies , if its been mentioned already.
I call it insidious.
Telegraph
By Ewing Grahame11:30PM BST 28 Apr 2014
Rangers will begin the 2014-15 season in the Championship with a 25-point deduction if the season-ticket boycott by supporters is successful and the club is consequently plunged into administration at any time following Saturday’s game against Dunfermline at East End Park.
The Scottish Professional Football League board’s view is that the club’s season officially ends immediately after their final league fixture and not, as has been speculated, once the play-offs have been concluded on May 25.
Rangers’ auditors, Deloitte, confirmed in March that season-ticket revenue is vital to the club’s future as a going concern.
Former director Dave King and Richard Gough, captain of the team who won nine successive championships, have urged supporters to starve the current board of cash by not renewing season tickets, suggesting that they pay that money into a trust operated by them, from whence it will be released on a game-to-game basis.
Graham Wallace, the Ibrox chief executive, revealed last week that season books must be paid for in cash because FirstData, the payment processing company, will not accept credit card payments.
Due to their long-standing fiscal problems, Rangers do not have a credit facility with a bank, and last week director Sandy Easdale claimed that the League One champions could not survive a second administration.
They are 39 points clear of second-placed Dunfermline and would still be promoted even if plunged into administration before the weekend. However, if they suffer another insolvency event after the weekend then that would seriously hamper hopes of winning promotion next season. The 120-day review released by Wallace last week stated that it is essential the club return to the top tier at the first attempt.
“To all intents and purposes, once a club has completed its fixtures, then their season has ended,” said a senior Hampden source.
New rules state that clubs sliding into administration trigger an automatic 15-point penalty, rising to 25 points if it happens again within five years.
The SPFL has also confirmed that it would consider a repeat of the administration (and subsequent liquidation) which befell Craig Whyte’s Rangers as a second offence.
However, the Scottish Football Association will issue a licence to Rangers for next season in spite of the continuing uncertainty surrounding the financially challenged club. “The licence will be granted because Rangers have no bank debt,” a spokesman said. “We are unable to withhold that licence on the basis of what might happen to individual members.”
King last night issued a statement attacking the board for not having a plan to raise capital, and suggesting that the police investigation into alleged lies told by Wallace to shareholders at the annual general meeting could be spread to include his fellow directors who, King believes, would also have been aware that the club did not possess sufficient funds to see out the current campaign.
He also reiterated the call to withhold season-ticket money. “The board continues the blame game and takes no responsibility for the current debacle,” he said. “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. The board has admitted that Rangers is not presently a ‘going concern’ and yet offers no plan on how this will be dealt with in the short term. 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.”
Hearts, meanwhile, have until the eve of their opening Championship game on Aug 9 to exit administration and avoid starting a second successive season with a 15-point penalty. “They can still be in administration for their opening League Cup and Ramsdens Cup ties but, as long as they complete their CVA [company voluntary arrangement] before their first league game, they will escape that punishment,” the SPFL source said.
From @celticservant
Deary me. Sun newspaper hooked by bam up on here last night. Celtic flare picture from Hamburg game! @CelticFCSLO http://t.co/Y3hK7E16PN
Jonny the Tim,
Contact them as soon as possible.
Don’t want to scare you but same thing happened to my wife recently and we couldn’t book a trip away as she was told that a lost passport scenario involves an interview etc to get a replacement – all of which has to be booked in advance.
From Goggles12
that Green Brigade picture posted tonight was taken in Hamburg just so you know.
http://t.co/BrX4womnwa
I was going to say why was it so dark in those pictures from last night, whe the game was played in day light?
So will STV run with the smashed seats headline for the next fortnight, as they did Motherwell?
PL must get the pictures out there, at least to absolve his own fans. The DR has already gave it ol ‘one as bad as the other treatment’.
There cannot be one rule for Celtic fans and another for them.
Expose them Mr Lawwell.
Boom! Let’s drag Peter Lawwell into it why not, yawwwwwnnnnnnnnnn.
Peter like my self will be more worried about who he sends the bill to, and two, will it be paid?
Neganon – are you expecting club employees to compose a response from their beds?
Peters options on who he sends the bill to.
RFC
RIFC
The Rangers
Sevco scotland 5088
Sevco 5088
Margaret’s
Blue pitch holdings
Charles Green
Ticketus
Craig Whyte
Mr Wallace
Mr Easdale ( the one with wig who done time in the gated community)
So as you can see Peter has a busy day ahead of him.
You know Leigh Griffiths has scored 7 goals and provided 9 assists in his first 12 games for Celtic (stats taken from Transfermarkt).
At that rate he would end up with 21 goals and 27 assists over a 36 game season!!!
Looking forward to seeing if he can maintain this form next season!!
Jonny
Unfortunately my experience was more like Alasdairs than tonys.
Good luck.
Weeminger
Lol.
Johnny
I was told that from a friend that’s what he done, and had no problems, so I was just being positive for you, hope you have the same luck he had, I’m sure you will.
tonydonnelly67
07:49 on
29 April, 2014
Boom! Let’s drag Peter Lawwell into it why not, yawwwwwnnnnnnnnnn.
—————————————————————————————————————————
You`re right,mate.
Boring and predictable.
Huns break seats.PL called to account
Tims break seats.P.L. called to account.
Why don`t they just cut to the chase and call him Peter Liewell?
As the huns do.
They are obviously on the same page.
Hail Hail,my fellow Tim.
niallo83
You would expect him to improve on those stats as he becomes more settled .
Macjay 1
You know what your not far away there, there are Celtic supporters in here who hate PL more than the Huns do and do the the devils work for thems, I’ll never understand it, and the majority of them are pro Celtic trust, now there’s an oxymoron TRUST, aye right hail hail PL AND THE CFC BOARD lurking Huns GIRUY s
jonny the tim-think you have to make an appointment mate,good luck.
How to deal with flares at the football.
http://www.dailymail.co.uk/sport/football/article-2615403/VIDEO-Football-fan-Poland-set-fire-sprayed-police.html
Bamboo,
Who knows.
I looked last night and Hooper scored 10 goals in his first 11 games for Celtic (only 1 assist). He didn’t quite maintain that strike rate!!
If LG could maintain or improve on his start he would be a massive asset!!!
Needs to be able to score in Europe though (I think he will). For all his talent and strike rate in SPFL Stokes can’t quite cut it at Champions League level. Hopefully Leigh can!!
If a guy from Scunthorpe can score goals in Europe , then I don’t see LG having a problem doing it either, who in my opinion is a better player than Hooper.
BMCW
Well that’s what happens when you take these things to football matches, hope the guys ok, but when you play with fire……………
Johnny the Tim –
You need to report your lost passport to the police and get a report no.
Take that along with your flight tickets and all the normal identity documents to the passport office and you will definitely get a new passport today.
Enjoy your holiday.
niallo83
08:14 on 29 April, 2014
Can’t wait, the bhoys different class and stokes is better now he has a strike partner again. HH
TONYDONNELLY
Agreed,mate. Hell mend the choob.
Took in the game last night with my pal. We have both been watching Celtic for more than 40 years and we both agreed that it was one of our worst experiences watching our team. A brilliant performance from the young Bhoys was totally overshadowed by the neds from both sides who were allowed to take over the stand and behave abominably. The bile and vitriol,smoke bombs and intimidating of decent supporters was disgraceful and the inadequate stewarding/policing did nothing to prevent it. Forced by a smoke bomb to try and move to a safer area like others , I witnessed many parents having to leave with young children clearly distressed and upset by what was going on around them. What Celtic were thinking of by hosting this game in this way is clearly beyond me.
Also if anybody still thinks we want or need games against this mob,they need their head examined. Rant over, great display of football by our young team against a team “parking the bus” well done lads !!!!
I reckon JONNYTHETIM would probably get a replacement passport quicker from the local consulate had he lost the original on holiday than he will from the Passport Office.
Bestaluck wi it,mate.
BMCUW… you no got a job to go to??
Telbhoy67
The game was a neutral venue. Celtic had to host whether they were in the final or not.
I have no idea why Celtic didn’t give the Sevco fans the away corner for everyone’s safety.
The police probably cost more last night for any league game we have had this season.
Who pays for it?
LB
Peter Lawwell being blamed for huns breaking seats at Parkhead is outrageous. I had a wee look back to see which poster in particular it was who blamed Peter Lawwell for the huns going on the rampage. Unfortunately I couldn’t find a single poster blaming Peter Lawwell for the huns breaking seats, now if that is true do we have Tims amongst us making DRAMA out of NOTHING and being DIVISIVE?
And using Peter Lawwell’s name to justify their dying swan drama too? Tell me it is not so.
LiviBhoy:
Celtic would normally pay for it if it was a home game, unless the sponsors pay for it or Glasgow Football Association out of the cup coffers.
Celtic cannot refuse entry to the stadium to the police and at home games Celtic are up for the costs of policing the stadium and the stadium footprint. How big that is I’m not sure, I’ve never come across a delineating definition.
Jonny the tim
The same happened to me last year and I got a passport the same day at a premium cost of £130 or thereabouts.
Good luck
kitalba
Seems like a lifetime ago that PL was described as the Sharp Suited Man while he was signing big name flops that everyone got excited about when they arrived.
LB
Celtic would normally pay for it if it was a home game, unless the sponsors pay for it or Glasgow Football Association out of the cup coffers. – since it was a final and not a home game, per-se, for Celtic.