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:
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ernie lynch
09:37 on 29 April, 2014
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 is doing fine on his own, and doesent need any help from you, so stop being the playground that’s my pal your talking to bam pot, your not involved, now run along boy.
Summa of Sammi
they just mindlessly pished from the the top of the terracing while drinking their six packs while their weins stood in their pee at the bottom. But they were all lovees back then.
MWD says oh Aye
Moonbeams,
Are you preggers or simply getting nostalgic about the yellow pages? :)
Kitalba
They are making the point that if PL does nothing about it then he is to blame, read the post for gods sake.
Are you related to lord Nelson?
I see no ships kitalba.
tonydonnelly67
09:45 on 29 April, 2014
See there you go again, blaming Peter Lawwell for all the world’s ills.
In your eyes the man can do nothing right.
This is the voice of Captain Black relaying a message from the Mysterons to Tony…
“You know what you must do”
Good Puppet Jerking Music
Whoever has broken seats at CP, needs to pay for the damage, end of story.
They should be banned from CP.
HH
Geordie Munro
Pregnant. Me? Never thought about that. Need to get to Boots at lunch time.
MWD says YIP
GCT – I dont think we can lambast fellow celtic supporters from going to a game. I suspect the reason for this was not to recognise rangers. Going to a game doesnt imply recognition of rangers.
Is this what you mean?
I can’t imagine who else’s remit it would be but Peter Lawwell’s to respond to the vandalism.
Tell me if I’m wrong Tony. Apologies for mixing up my Puppet Jerking music, this was the one I was think about…
Good Puppet Jerking Music
MOONBEAMS
All these posts of yours recently that are food-related.
Fat-finger typing syndrome.
Any correlation?
Kitalba at home
http://youtu.be/faxw9TAHtNs
From the photos I’ve seen, looking like Lady Luck’s played a blinder for ole Eurochamps and his fellow piles sufferer Goldstar, what with them getting brand new seats for Saturday.
Kitalba stick to being an ejit, cause funny you don’t do to good,
BMCUWP
Think it is more to do with replacing the drivel and dross of the blog with happy thoughts.
I’m going to ban the Timternet!
MWD says AYE
Kit,
Was it not decided some time ago between the clubs that damage done by travelling fans would be paid for by their own club?
DESERTBHOY
My labour-saving advice is invaluable to them.
Actually,I dae whit I’m telt. Getting too auld tae argue,quicker and easier just to get on wi it.
.
For those Who think CQN is Full of Smart @rses..
2ysur2ysubIcur2ys4me
Summa
If Celtic want the Huns to pay for the damage, they better get in line behind the face painter.
Intimidation is it, scared to tell the truth, fear of what will happen.
In my experience, it is always preferable to knock that bully on his arse, because they are cowards through and through.
Do not take a step back when the truth is at stake, fight it head on.
I can only speak for myself, but it sickens me to see the PLC, tug the forelock, out of fear.
Tell the truth….Rangers are dead, sevco are a different team, anything else is just lies.
HH
Can’t imagine what it must feel like to go for a prostrate examination.
Although I imagine it must come close to the feeling I get when TD67 aged 2 and half years posts something.
MWD says I’m not saying NO I’m saying YES
Go on be a devil – cut your strings
So if you believe what the Daily Mails says, then any administration of The Rangers would be viewed as the second by the club and a 25 point penalty would be imposed. This is according to “SPFL sources”.
Their season ends immediately after their last game, not when the play offs finish, so any admin is therefore likely to be in the close season and any penalty imposed on next season’s league table.
Marrakesh Express
21:54 on 28 April, 2014
___________________
And, that is exactly why they will never be allowed to die
in this country, no matter what it says on a bit of paper!
Celtic fans who think that the huns have died – the jokes on
them. Sadly.
There aint no-one with the bottle / courage to put the stake
through their hearts. Sadly.
The Celtic support pay thier cash to folk who will still call them
Rangers and, that is pretty evident from all levels of the club. Sadly.
Switching-off now disgustedly – CSC
Geordie Munro:
I don’t categorically know mate, but I believe the team whose supporters cause the damage pays. Whether that holds true for cup competition I’m just not sure. I know Celtic had their ground closed for less.
But see that big blue stone out the back of your house, bet you can’t squeeze blood out of it.
Kev,
So are you saying celtic have the final say on whether rangers are a new club or not?
Peter….you can call them Rangers till the cows come home, but its not true.
Peter…RANGERS ARE DEAD…..are you getting it?
HH
I know Celtic had their ground closed for less and they were the away team.
I had the prostrate examination, and trust me it’s just like you moonbeams, a pain in the arse.
I read on Facebook that the sun had a picture of Celtic fans with flares from a totally different match on their youth match report. Is this true?
To ignore the wishes of your own supporters, while upholding a vile lie.
Not good enough by a long way…Tell the truth.
HH
Not just any old art – but Celtic art! http://theshamrockglasgow.wordpress.com/2014/04/28/art-of-the-celts-the-series/
Geordie Munro
10:08 on 29 April, 2014
‘Kev,
So are you saying celtic have the final say on whether rangers are a new club or not?’
###
It’s a legal matter, so the courts would have the final say.
Gordon_J backing Neil Lennon
The Sun and the truth in the same sentence?
Crazy stuff!
LB
Gordon,
They were posted on here a page or two ago.
Seemingly they were from a game v hamburg. Musta been the online sun only as the jambo at works printed edition didn’t have them.
Son to Father…
“Is it true what they say dad?”
Father to Son…
“What’s that son?”
Son to Father…
“That Celtic have no balls!”
Father to Son…
“Son Celtic have lots of balls. Every game you see them kicking around with plenty before kick-off”
Son to Father…
“Aye true da but do you think maybe they could try and kick a couple into the boardroom?”
Son to Father…
“And another thing dad, is a puppet without stings really just a muppet?”
You woulda thunk so Ernie eh?
MWD
For breakfast –
Low fat youghurt
Small portion of Granola
Chopped banana and strawberries.
Deeeeelishous!!