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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Jonny the tim
Ps
That was at passport office in Glasgow
kitalba
As far as I am aware it was a neutral venue. I may be totally wrong but that is what was described the last few weeks by Celtic.
Celtic should though have advised whoever was organising that the fans should not be in the same stand.
LB
DESERTBHOY
Ssssshhhhhhhhh…..
My Mum has got designs on my time while I’m home for a few weeks.
I’ve got the good trainers on and she’ll never catch me!
Jonny the tim
Not wishing to disagree with GCT but the police thing wasn’t necessary
LiviBhoy:
I’ve got a lot of time for Peter Lawwell as a man and as a Celtic Supporter, I don’t think his suits are as sharp as some make out though and he should maybe get his wife to cut off the strings that appear to rise from his epaulettes; you know – like in Stingray or Captain Black and the Mysterons, as he boots the bejewels out off Captain Scarlett.
ps
I never knew Captain Black was born in Manchester.
BMCUW…. spongin’ aff yer mammy’s wi-fi an’ no willin’ to gie her a haun’.
…despicable!!
No one said PL was getting the blame of it ya drama queen, read the posts properly and stop making things up.
LiviBhoy:
If it is a neutral venue, which I too think it was, I believe the cost of policing is met by the organisers and therefore the sponsors and from any pots of monies the competition might have taken in.
Jonny the Tim
06:51 on 29 April, 2014
There’s a guy on Celtic Minded works there (or was/did, I no longer post there).
You could try on there.
Awe the old ” I’ve got a lot of time for PL” chestnut , and what follows is the same old NL CHESTNUT,he brigs it on himself, geez peace.
The Celtic Board will be delighted about last night. Confirmation that they are on the right track with regards Old Firm revival. Game was well attended last night and international news coverage without mentioning the football. This has been a successful recipie for over 100 years. As the annals of history will show one is as bad as the other.
Mummy WWF devotees and Daddy WWF devotees make Baby WWF devotees.
HH
kitalba
09:18 on
29 April, 2014
LiviBhoy:
If it is a neutral venue, which I too think it was, I believe the cost of policing is met by the organisers and therefore the sponsors and from any pots of monies the competition might have taken in.
……………………………………………………….
I think the costs would far outweigh any revenue.
DESERTBHOY
Wrong on all counts,bud.
This time,haha!
Got mobile internet,much faster than the wifi in the house,and always available to help as I point out that such-and-such isnae really needing done.
It’s expert advice like that she needs more often….
Telbhoy67
08:59 on 29 April, 2014
‘What Celtic were thinking of by hosting this game in this way is clearly beyond me.’
####
Here’s a clue.
£££££££££££££££££££££££££££££££££££
I wonder what Ronnie Hawthorne’s take is, on his ex-colleague’s pathetic attempts to police a small number of people within an enclosed space last night?
It won’t be long before the Sevco Board bring up the Lying King’s recent past.
The takings and the costs are irelevant. Last night was a wee reminder to English armchair fans that the Old Firm will be back on your screens soon. I bet DR sales increased sharply today.
HH
Weefra.
Read yer post earlier aboot one o yer lambs being stillborn, Dinnae ken how ye dae it yer a braver man than me.
Had tae have ma big greyhound put tae sleep oan friday, had him 10 years since he was 2, got him fae the retired trust after he broke his hind hock racing big sprinter he wiz, he won 13 oot o 28 open races in ireland, jet black and a big handsome bugger tae boot!?
Gonnae mourn fir a bit then get another.
Braw pets.
Big sean
Oh I get it Peter, its only celtic fans you want to ban for breaking seats.
That’s right Peter, do their job for them, well done for sticking to the big lie.
Hh
Who was playing last night?
MWD says YES
MWD
The weans
HH
Neil at the Union Berlin game last nigh.
He will be in Dublin tonight, analysing the Bayern match on TV3.
Awe Naw
Did they win?
MWD Yeah
the green man
09:31 on 29 April, 2014
Oh I get it Peter, its only celtic fans you want to ban for breaking seats.
That’s right Peter, do their job for them, well done for sticking to the big lie.
Hh
______________________________________
There’s another one not blaming PL.lol
Had another wee look back and still can’t find a single poster blaming Peter Lawwell for anything but there are two posters blaming Celtic Supporters for blaming Peter Lawwell.
The plot thickens, or at least the drama queen does.
THE GREEN MAN
Celtic take responsibility for our fans in these circumstances. Other club’s fans have nothing to do with us.
While I canny see any action being taken by Rangers for last night,that’s their lookout. Not ours,not PL’s.
Even though he does run Scottish football,you know!
Good morning to all from a sunny Manchester.
What are today’s debates?
Ah the old Bored Debate.
Taxi sir certainly.
Ping off to work. ;>{}
If anybody is complicit in lies and deceit, then they are responsible….
Tell the truth, its much easier, and you will get more respect.
Hh
tonydonnelly67
09:34 on 29 April, 2014
I don’t know why you insist on repeatedly blaming Peter Lawwell for breaking the seats.
Please desist.
Kitalba just for you.
the green man
09:31 on 29 April, 2014
Oh I get it Peter, its only celtic fans you want to ban for breaking seats.
That’s right Peter, do their job for them, well done for sticking to the big lie.
Hh
Fear, and the inability to stand up for yourself, always results in a beating.
They will do this, they will do that….pathetic.
Stand up now, and tell the truth without fear.
HH
Anybody tried Tuna and Banana pizza. Stuff of the Gods.
Yummy
MWD says YES
Kitalba another one just for you
marrakesh express
07:46 on 29 April, 2014
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.
And then there was banana pakora. Who decided to shut Murphy’s pakora bar? Idiot I tells yee.
MWD says Oh Aye.
TD67
So some people are unhappy with big peter, big deal….get over it.
HH
BMCUW… nae wonder she only let’s you back a couple of times a year.
tonydonnelly67:
Have you lost the plot or whit (to borrow a word) Where does that poster blame Peter Lawwell for the huns breaking the seats?
But let me thank you for taking your time for finding a post that you thought fitted your agenda.
.
Can someone Explain to the Auld folk Who say they have been watching Celtic FC for 40-50 Years and the Mindless breaking of seats Never happened in their Day..
That was because it was Terracing then..lol
Summa of StandingUpCSC