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
- ...
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- »
Reading the blog this morning has been quite sad.
A crowd of thugs caused damage to our stadium last night at a match which our club was hosting on behalf of the Glasgow FA. The MSM are falling over themselves to paint an “Old Firm” scenario. The Sun has used a picture from a game played 3 years ago to incriminate Celtic fans in last night’s trouble. And Peter Lawell is getting it tight for not having a statement out there already. C’mon bhoys, get real.
The club will be reimbursed for the damage either by the Glasgow FA or Thems.
Celtic will issue a statement in due course about the vandalism. I wasn’t there but it seems that some Celtic “fans” indulged in some bad behaviour too and the club will want to check up on this before issuing any statement.
If it was up to me, I would ban the Sun and the DR from Celtic Park and tell the world that we will not tolerate any more biased reporting of events concerning our team or fans. But let’s collate the facts first and then act decisively.
HH
tonydonnelly67 10:12 on 29 April, 2014
“I had the prostrate examination, and trust me it’s just like you moonbeams, a pain in the arse.”
on the plus side, they found your brain cells.
Raspberry,
Do they help when doing Brazilians? :)
Just had a wee look back at thems records for 2013/14 elbows has scored 7 penalty’s would have been 8 but black scored the other one when el was doing his coaching badges, they also had 5 players sent off against them, and never had a game that opponents didn’t have at least one yellow card, most games had at least three, so anybody who thinks mibbery doesn’t make much difference is dreaming.
I honestly believe if VVD hadn’t been sent off against aberdeen we would have gone through this seasons league undefeated and hope that we show this against them this week barring more mibbery
Interesting that Neil Lennon was over in Berlin last night.
I wonder who he was watching?
I think if we are honest big Fraser will go this summer if the right bid comes in. The big fella has given us great service and never gave us a problem. he will be a huge gap to fill. Not sure that Zaluska will be the new number 1. Maybe Lenny was scouting a keeper. I have had a look on the net and can;t find any notable players in either squad. Anyone know a bit more about German fitba than me?
LB
Tgm,
Probably not wasting your time on the blog.
Your postings give others an insight into your thoughts.
What I’m saying is if ye really want a pay rise at work do you go bitching to the janny or do you go have a word with the boss?
geordie munro
11:03 on 29 April, 2014
Raspberry,
Do they help when doing Brazilians? :)
As long as the jungle isn’t too deep
Nice and quiet on here today……!!
Geordie Munro
Geordie, im not asking for the world…I want PL to tell the truth about the sevco myth, without fear.
I also want to see the Celtic board defend Celtic fans, from the lies of the Scottish Media.
Is that too much to ask?
HH
Is that what that was? Damn I’ve been swated. Ouuccchhh!
MWD must be more observant. Says YES still though.
LiviBhoy – God bless wee Oscar
11:06 on
29 April, 2014
Interesting that Neil Lennon was over in Berlin last night.
I wonder who he was watching?
I think if we are honest big Fraser will go this summer if the right bid comes in. The big fella has given us great service and never gave us a problem. he will be a huge gap to fill. Not sure that Zaluska will be the new number 1. Maybe Lenny was scouting a keeper. I have had a look on the net and can;t find any notable players in either squad. Anyone know a bit more about German fitba than me?
LB
Ruben Jenssen …. maybe
or Alexander Ring
Guys – it’s a beautiful day out there and we’re all Tims. Get some Simon and Garfunkel on your iPod and go out for a walk. You will feel better.
:-)
Feelin’GroovyCSC
Now when I go to the beauty therapist I insist on a ‘Gazebo’ .
It’s basically the same as a Brazilian, but usin’ the ole disposable razors, followed by a liberal dousin’ with the ole Blue Stratos.
Beauty is pain.
EuroChamps67 heads in early to find out if his seat got damaged
Natknow- I see Mr and Mrs P. Simon got lifted for an ole domestic.
LiviBhoy – 11:06
Interesting that Neil Lennon was over in Berlin last night.
I wonder who he was watching?
__________
Eric Burdon & The Animals were playing live in Berlin!
RisingSunCSC :-)
steinreignedsupreme
11:03 on 29 April, 2014
tonydonnelly67 10:12 on 29 April, 2014
“I had the prostrate examination, and trust me it’s just like you moonbeams, a pain in the arse.”
on the plus side, they found your brain cells.
_______________________________
Or as in you’re case they would find feck all.
praecepta
Well spotted. Must have been that then.
LB
EuroChamps67 heads in early to find out if his seat got damaged
Dontbrattbakkinanger
11:25 on 29 April, 2014
Natknow- I see Mr and Mrs P. Simon got lifted for an ole domestic.
—————————————————————–
Yeah – I didn’t realise Eddie Brickell was his missus! Bohemian indeed!
Gonzo interviews the board
D’oh!
moonbeams wd. rooting for wee oscar. voting ‘yes’ on the 18th of september. kano’s yer man.
09:56 on 29 April, 2014
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
~~~~~~~~~~++~~~~~~~~~~~
Aye. I know,mate.
Yer efforts are greatly appreciated.
Note-this post has been checked for any existence of sarcastic undertones,overtones and implications of any sort and has been cleared.
Dundee United could poach highly-rated Celtic youngster Denny Johnstone.
The 19-year-old, out of contract in the summer, has been offered a new deal by the Hoops but is believed to be keen to switch to Tannadice, having seen the success of the likes of Ryan Gauld, John Souttar and Andrew Robertson.
The Hoops are likely to want more than £100,000 for their asset, while United are miles from that valuation. That could see the first transfer tribunal involving two top flight clubs for 15 years.
NFL was either hunting bargains in Mauer Park or Union Berlin?
tonydonnelly67 11:29 on 29 April, 2014
“Or as in you’re case they would find feck all.”
Good one.
Kayal,
Or it could be the start of a nice wee swap deal.
Tic bin Berliner
Neil Lennon has begun his search for fresh blood to add to his Celtic squad. Lennon flew to Germany to watch Kaiserslautern’s Finnish midfielder Alexander Ring. Celtic are also interested in Ring’s team-mates Simon Zoller and Ruben Yttergard.
If he is looking for a midfielder then save on the air tickets and drive up to Dundee. Sign Stuart Armstrong.
DBBIA
If he checks his back catalogue, I’m sure he’ll find at least 1 way to leave her :-)
Td67
So are you saying we have to let the bullies win?
Brattbakk
I’m a Hai Karate man myself.
The sharp broad pin stripe suited man fell asleep smoking an e-lite, and when he wakened up his entire house was on the internet.
Morning Folks,
Nice and Sunny outside — Reminds me of Seville — though not just as hot.
Remember that you can order your copy of Seville — The Celtic Movement through CQN or get it in all the Celtic shops or through all good bookshops.
I got a message on twitter from a fan the other day who went to Seville -=- and never came back. He is still there.
Trying to track down his story!
Pedro,
Vg:)
Marrakesh,
Ceder wood
pedrocaravanachio67
11:39 on 29 April, 2014
DBBIA
If he checks his back catalogue, I’m sure he’ll find at least 1 way to leave her :-)
——————————————-
If they’re looking for advice they could always ask the ole CQN Moonhowlers – tomorrow morning, around 3am…
Marakesh
I don’t think it’s a case of let the bullies win, I think as I have always with the sheet this mob are getting away with, give them enough rope, and in there case there is no need to get involved, as in there road to success will always be under construction.
Who would have thought that financial fair play was a way for uefa and their cronies to get their hands on more cash?
That doesn’t seem very fair.
Terry Wogan: helping to celebrate the visit of Ireland’s president Michael D Higgins at Windsor Castle:
“It was a pleasure to meet the Princess Royal and the Duchess of Cornwall again, two ladies who bring a sparkle to any company, but the inimitable Duke of Edinburgh had a word for me on the receiving line:
“Ah! A refugee! Welcome!”
Yes, the spirit of reconciliation was all around.”
Auld Phil the Greek at it again. Just as well the SMSM weren’t there!!!