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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Geordie Munro,
Thanks for the clarification. Not like them to distort a story …
TD67
Come on Tony, you know fine well what I’m getting at.
Our fans are castigated for the Motherwell seats carry on, and the msm milked it rotten, Clyde, the DR, Sun, SKY, you name it, they all stuck the boot into the GB and our support in general. We just rolled over and took a doing, and it went on for weeks (btw the LG story is outdoing even that one)
Now that mob have done the same at our place and surprise surprise, the early reports from Clyde, DR and Sun claim it was an ‘Old Firm night of trouble’.
John Reid said we will never accept being treated as second class citizens. By not responding to these msm reports we most certainly are taking our seats at the back of the bus.
It doesnt have to be Peter Lawwell taking them on. You really have to separate the various points people are making with regard to troubling issues, away from what you see as an excuse to attack the CEO.
A lot of valid concerns are raised on this blog and they are issues which might only be addressed by PL, so he is in the firing line I suppose. Thats what he’s well paid for anyway.
Anyway, is the ol sternum still keeping you off it?
hh
As I said this morning it was only a matter of time before PL & THE BOARD got the blame for last night, so predictable, and the same old suspects, the blog will be mob handed with the, Uni. Mob. Young socialists, Celtic trust junkies, and drunk school teachers ( I say that because in my experience 90% of them where when I went to school) in here today.
Honestly, Its doing my head in, that our board cannot open their mouths, unless its to tell us all, how good they all are, and what great businessmen they are etc.
Why wont they defend Celtic, it is extraordinary, that supporters have to try and prompt them to speak out.
Why don’t they say anything about the standard of journalism, the constant attacks by the hun media.
Wtf is going on.
Peter Lawell,Open your mouth and defend your own fans immediately.
HH
Philbhoy
i hope that is deep fired. :)
MWD says – you guessed it – YES
The green Man
Fingers crossed that Pl reads cqn eh?
TD67
I’m sure that is just what I said to you. Did realise you were a Parrot as well as a …
MWD says – go on have a guess?
“Take every chance you get to repel those who would undermine what Celtic has achieved – you will find that they don’t like it up them – so to speak.
However I’d advise not getting involved in feeding raucous hunned-up bhlog spoilers with sleekit intent…..”
Willy Maley.
Marakesh
John Reid isn’t there any more, and yes he did say that, but alas John Reid was another man the Trust and her who shouldn’t be talked about in here didn’t want, so he said all the right things and got stuck right into thems at every opportunity and wasent liked, PL is in a no win situation here with these clowns he knows it, I know it, and so do they, I have no trouble with PL none at all, and the hatered for him in here makes me even more strong in my support for him.
It is all so predictable, Celtic trust needs publicity, go for Lawwell , fact.
TD67
Tony, cant you accept that some supporters are not happy with PL
Why do you always have to disparage anyone, who happens to have a different view.
Who made you boss?
If you cant accept that people have their own opinions, you are on the wrong site.
HH
They’re not quite the masons but before a board meeting our board go through the same ritual every gathering…
Peter Where’s ma Ball
Geordie Munro
At least im not keeping quiet about the big lie….like PL
HH
.
Right Smart @rses Who De-Coded My Code-Word..Conundrum..Anagram Wordy Thingy..?
2ysur2ysubIcur2ys4me
Summa
the green man,
Save your breath ,the only time the board will be heard is when the STS sales fall down to the 20,000 mark.The way things are going Sevco will have more STS than us next season.Appeasement by this board will cost us dearly.
Marakesh
Yes still a wee bit sore but getting there, another two weeks I should be ok, good or bad I’m going to the last game, I hope
Decides 3 blade razors are too expensive
Switches back to old fashioned razor
Cuts face in 37 places
Switches back to expensive razor
TD67 , has everything stayed the same since you went to school, or just teachers ? and for someone who bangs on about PL & Board Haters you don’t half bang on about students. Did some young student p*ss in your beer or sh*g you’re wummin ? Did you hate Canadian students too ?
Did RFC ever pay us the money they owed us before they went bust? If not add it to the broken seats invoice if it’s the same club…#scotlandsShameMKII
Oh! now it’s she who shouldn’t be named… there’s a movie about that…
Mysterious Ticking Noise
bournesouprecipe
I use the Gillette throw away razors. Cheap and cheerful and probably the best razors I have ever used. Never cut myself. I have a baby face though and only shave once a week!
LB
The green man
Have your opinion by all means but don’t expect me to accept it as awe aye ok your right,
I have my opinion you don’t like it tough, you have your opinion tough i don’t like it, it’s my choice if I don’t accept it and yours too, what part of that makes me wrong for posting in here, is it a prerequisite that you have to agree with everyone, Ffs, maybe I should just call up SSB eh?
tonydonnelly67
10:31 on 29 April, 2014
‘and drunk school teachers ( I say that because in my experience 90% of them where when I went to school)’
####
I doubt any of us are surprised that your teachers sought solace in the bottle. It can’t have been easy for them.
The green Man
You are certainly not quiet about it.
But ranting on here might make you feel better but it’s gonna change zilch.
fanadpatriot
Im not wasting my breath at all bud….Im telling it like it is
The PLC are lying, because its well known that…Rangers are no more, liquidated.
But you are right in the respect, that people wont buy in to lies.
HH
Rod Petrie steps down as Hibs CEO.
LB
Ernie @ 1047
Aye no bad for you :)
It’s not SSB you need to call up TD67!
MWD says Aye
Geordie Munro
I don’t believe that Geordie….The truth will out in the end.
And its the people(board members), who have peddled the sevco myth, that will pay.
Never tell lies to your own supporters, who basically pay your wages, because in the end, you will be sacked…..simples
HH
TD67 , has everything stayed the same since you went to school, or just teachers ? and for someone who bangs on about PL & Board Haters you don’t half bang on about students. Did some young student p*ss in your beer or sh*g you’re wummin ? Did you hate Canadian students too ?
_____________________________-
NO, NO,AND NO.
moonbeams wd. rooting for wee oscar. voting ‘yes’ on the 18th of september. kano’s yer man.
10:50 on 29 April, 2014
It’s not SSB you need to call up TD67!
MWD says Aye
_________________________________
Ahhhhhhhh, my stalker, you just love my posts don’t you?
Bournesouprecipe regrets the cost of a cheap razor
Tgm
Stick it all down in a letter or email and send it to CP.
It wouldn’t take you long and one letter sent would carry more credence than 100 posts on here.
You’ll feel better to I’ll bet;)
Archie Knox insists Ally McCoist and his staff are doing a ‘phenomenal’ job at Rangers despite the clubs off field problems
God bless these supporters of “Ally”.”A phenomenal job”no less.Won two part time leagues with a budget that has bankrupted his club.Knocked out of 2 Scottish cups
2 League cups
2 Ramsdens cups,
I am sure that we will all agree with this “Baw faced”hun,that Ally has surpassed even the term “Phenomenal”in our eyes.Long may he reign.
Summa,
Too wise you are,……etc.
(Too)
Tbb very good :)
Hey,Tony.
Respect.
You just keep swatting them away.
bournesouprecipe
10:42 on 29 April, 2014
Decides 3 blade razors are too expensive
Switches back to old fashioned razor
Cuts face in 37 places
Switches back to expensive razor
BSR I get mine from amazon, lots cheaper and safer.
Geordie Munro
You know what, I think you are right….Im wasting my time on this blog…whats the point.
If people are quite happy to accept lies from their own board…fair enough.
HH