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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Kitalba
Always remember you’re unique, just like everyone else.
Alex Ring! That’s enough to keep tam Cowan I’m after diner Masonic nights forever.
Steinreignedsupreme
You must delighted that TD67 has confirmed that your brains do not reside up your sphincter like his.
Doh! If only he was trying to be funny that’d been a quacker.
MWD says YES
I’m assuming there is a point to this?
tonydonnelly67 12:22 on 29 April, 2014
There was a radicle part of the crowd there on Sunday with a PC banner, are they the GB.
———–
“A man must be a Celt on and off the field otherwise he is of no value to the club.”
Is it not a quote from Willie Maley?
I wish they’d bring back the days were old folk would stand outside the Post Office front door all morning waiting on whatever.
MWD says YES
STEINREIGNEDSUPREME
It is indeed,mate.
They missed a trick on the ole Thunderbirds.
Instead of callin’ the wee specky clever clogs Brains they could have called him Sphincters.
DBBIA/ LadyPenelopeCSC
More apt Paul Simon lyrics:-
“I’ve built walls,
A fortress deep and mighty,
That none may penetrate.
I have no need of friendship; friendship causes pain.
It’s laughter and it’s loving I disdain.”
Followed by:-
“We are rangers, Super Rangers
No one likes us
We don’t care”
DBBIA
on your ladies. No pics today?
MWD says uh huh
Moonbeams
My friend, remember that without stupidity there wouldn’t be intelligence, and without ugliness there wouldn’t be beauty, so the world needs you after all.
Donny Toadily you need to give it a break
SFTB
or
“I am Tony, tony Donnelly
No one likes me (well excfept for macjay01)
I don’t care (It’s my opinion)”
♫ Wake up little stushie wake up ♫ .
CLINK\o/
Especially since he must have difficulty breathing due to his sternum injury.
Nae offence,Tony. I hope yer ready to get out and about,fit as a fiddle,shortly.
I might disagree with yer opinions much of the time-might,wrong word- but I’d like to see you fit and well again.
TD67
That hurt! :(
MWD is need of a hug now. Anyone? Pleaaasssseeee. Yeahhhh
tonydonnelly67 12:30 on 29 April, 2014
The point is, it is a quote from the great grandfather of ‘political correctness’ Willie Maley.
Wean in Khathmandu,..
” That just has too be the Daftest, Pointlessest question Everest “.
BMCW
I’m getting there, goin out this afternoon actually , takin my auld maw ti the Vicky for her new hearing aids, should be fun, I’ve never tried or seen any one pushing a wheel chair with one arm,should be a laugh if not anything else.
TD67
tonydonnelly67
12:00 on 29 April, 2014
awe_naw_no_annoni_oan_anaw_noo
11:56 on 29 April, 2014
Samstag, 26.04.2014 – 11:42 Uhr
Trainer Uwe Neuhaus muss Union Berlin nach sieben Jahren zum Saisonende verlassen. Der Club gab nach den enttäuschenden vergangenen Monaten die Trennung von seinem Rekordtrainer bekannt. Gemeinsam mit Sven Köhler vom Halleschen FC ist Neuhaus dienstältester Trainer im deutschen Profifußball.
“Nach gründlicher Analyse der sportlichen Situation sind wir zu der Überzeugung gekommen, dass für eine erfolgreiche Arbeit in der kommenden Saison ein mentaler und emotionaler Neustart im sportlichen Bereich notwendig ist”, sagte Union-Präsident Dirk Zingler: “Ein personeller Wechsel auf der Cheftrainerposition bietet die Chance für einen solchen Neustart.”
Der 54-jährige Neuhaus hatte seinen Vertrag erst im November vorzeitig um zwei Jahre bis zum 30. Juni 2016 verlängert. “Die nach dem hervorragenden Start in die Saison, aber einer auch für mich enttäuschenden Rückrunde getroffene Entscheidung des Vereins bedauere, aber respektiere ich”, sagte Neuhaus: “Zusammen mit der Mannschaft werde ich alles daran setzen, die Saison so erfolgreich wie möglich zu Ende zu bringen.”
Neuhaus hatte am 1. Juli 2007 seine Arbeit in Berlin aufgenommen und war seit Januar 2014 der am längsten amtierende Trainer seit der Clubgründung im Januar 1966. In der Saison 2007/2008 hatte Neuhaus das Team zunächst in die neu geschaffene 3. Liga geführt, ein Jahr später gelang Union als erstem Drittliga-Meister der Aufstieg in die 2. Bundesliga.
Nach stetiger Weiterentwicklung in den Folgejahren galt das Team in der laufenden Saison als Aufstiegsanwärter, konnte aufgrund einer schwachen Rückrunde jedoch nicht mehr in den Kampf um die ersten drei Plätze eingreifen. Zuletzt stürzte Union ins Mittelfeld der Tabelle
Great post totally agree,more positive ness like this is needed.
You obviously missed the third paragraph where they blame Peter Lawell for everything…
new article posted.
Q – Is oor DECLAN back with a new pseudonym
A miss Declan
Paddy T
steinreignedsupreme
12:36 on 29 April, 2014
tonydonnelly67 12:30 on 29 April, 2014
The point is, it is a quote from the great grandfather of ‘political correctness’ Willie Maley.
___________________________________________
And?
Too be or not TOO be, that is the question.
New Sevco season ticket renewal advert:
http://www.youtube.com/watch?v=zrD9SP3n33E
WARNING: Do not play in work or in front of the wife and kids
“You are not special. You are not a beautiful or unique snowflake. You’re the same decaying organic matter as everything else.”
http://www.youtube.com/watch?v=4X2AvfSTi6Q
googybhoy ♥ we are all neil lennon
20:20 on 28 April, 2014
stairheedrammy
20:09 on 28 April, 2014
I know I know. I should ignore him
And usually do but I had to respond when one of his fawning acolytes stepped in.
Will go back to ignoring him. It is not my way to argue by insults and no factual basis for my opinions,
my boss is peter principle
20:21 on 28 April, 2014
googybhoy ♥ we are all neil lennon
20:20 on 28 April, 2014
stairheedrammy
20:09 on 28 April, 2014
I know I know. I should ignore him
And usually do but I had to respond when one of his fawning acolytes stepped in.
Are you talking about me?
googybhoy ♥ we are all neil lennon
20:41 on 28 April, 2014
my boss is peter principle
20:35 on 28 April, 2014
I think you know that as you involved yourself in a discussion between myself and TD67.
googybhoy ♥ we are all neil lennon
22:09 on 29 April, 2014
paul67
Well said.
googybhoy ♥ we are all neil lennon
22:12 on 29 April, 2014
paul67
Well said. There are many posters that have walked away rather than listen to insult as as a basis of argument.
Googybhoy, you are a brown nosing wee f@nny.