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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tonydonnelly67
13:43 on 28 April, 2014
The purpose of my questions was to highlight the differences between your experiences in Canada as a legal immigrant from a first world country and those of the refugees living in Glasgow.
But you know that perfectly well, don’t you?
setting free the bears supports Res. 12 & Oscar Knox
13:36 on 28 April, 2014
‘Does no one remember a MON bench with two keepers listed?’
##
It seems not. Did this happen? Was it a friendly?
SFTB
Fairly sure the two keepers on the bench happened but can’t remember any details .
Frustratingly there was a time when I would know that sort of thing without checking
Embdae know who is going the grand opening of the new Celtic Walkway on Saturday? I’m sure it will need 24 hour security btw.
Livi Bhoy
Stoap writing common sense things
That’ll get ye naewhere on here
Tonight’s Glasgow Cup final in Paradise is now sold out. But @CelticTV will have live and exclusive coverage of the game. Kick-off 7pm.
@CFC
Ernie lynch
The purpose of your questions are your a mosey bassa, and how and why I went to Canada is none of your business, all I was stating is that’s what Canadians called emigrants from other countries, if you don’t believe me fine, but that’s as far as I go with you on the subject, others in here know why I went and what I did, but they went about it a wee bit more diplomatic than you, but that wouldent be hard, seeing as your pompous attitude has no boundaries.
Ernie,
You do know the song that is alleged to have been sung was meant to offend Rudi skachel and the hearts fans and not refugees??
Gettingaweebitofftrack csc
tonydonnelly67
I think the GB have made their point and there will be nothing further on it.
ernie lynch
I don’t think LG has to say anything at this moment. There is an ongoing enquiry at the minute. I can only go on the inromation I have been told from a guy who was in the pub. LG was over excited and maybe a bit bevvied. He was egged on to sing and sang about Hearts going bust. He didn’t start the Skacel song. He was jumping about with his mates and when the song did start up from the other side of the bar he sat down.
This is what I have been told. The Hibee in question is sick of the negative stories attached to Griffiths and the one sided stories against him.
Like I said previous IF he was singing do we sack him? Do we attempt to help him?
I think from Neil Lennon’s comments after the match yesterday Leigh Griffiths will still be a Celtic player at the start of next season and he will be helped to sort himself out.
We either move on and support the guy or we don’t. I prefer to support the guy for now and reserve judgement on his future conduct if and when anything arises again. I’m sure he is on his final warning LG knows now what is at stake and it’s up to him whether he throws away a great chance to become a top player at a top club.
LB
Bada
Special zombie proof CCTV paid for by Glasgow City Council.
What about the great brigade stealing the drum from the young ICT fan after the game…
From GB site
Witnessed the drum being took, was hilarious. Fair play the caley fan but, he chased the bhoys that took the drum for a good couple of minutes.
Livibhoy,
It’s not in some peoples nature to move on.
awe_naw_no_annoni_oan_anaw_noo
13:37 on 28 April, 2014
It was due for 4 days at the start of April, but was postponed to February 2015. It might come in sooner if a slot can be found. Such a slot will not be found. It doesn’t suit sevco for it to be found.
Glasgow Cup Final v Sevco at CP tonight is sold out.
Celtic park sold out for the Hunfest love-in. The Old Firm is alive and well. Enjoy the panto.
Former Rangers commercial director Imran Ahmad has been successful in obtaining documents from the club relating to his £500,000 legal case against them.
Mr Ahmad claims he is owed the amount as a contractually agreed bonus for negotiating a reported £10m deal with sportswear firm Puma and retailer Sports Direct.
He failed, however, to secure copies of the contracts with the two companies, with Rangers raising fears they could be leaked on the internet.
Ahmad’s contract with Rangers, which was terminated last year, stated he would receive 5% of revenue on any commercial deals he negotiated during his time at Ibrox.
At a court hearing on Tuesday, Mr Ahmad was given certain documents to try and form his case that he was contractually entitled to £500k bonus. However, he failed to secure the handing over of actual contracts negotiated, for now, as Rangers argued confidentially issues.
The case, which could be brought forward to November instead of a February 2015 hearing, will determine whether he was entitled to a bonus on deals he did not exclusively negotiate.
It will also determine whether a handwritten letter from former chief executive Charles Green, which stated he would receive £500,000 in bonuses, was legally binding.
Rangers’ counsel argue Mr Green did not have the express power to authorise such a payment.
At the Court of Session on Tuesday, Mr Ahmad’s counsel, Kenneth McBrearty QC, requested the transfer of a series of commercial documents from Rangers relating to the case.
Ahmad, who was not present, requested copies of the contracts entered into with Puma and Sports Direct to form his case that he was involved in the negotiations.
Rangers’ QC Alan Summers argued that those contracts contained commercially sensitive information and expressed concern that an “unnatural interest” in the club’s inner dealings could lead to the documents being leaked into the public domain.
“The pursuer was dismissed from his employment with the defenders because his employers allege that he put material that was confidential and damaging to his employers on to the web,” he said.
“There is an unnatural fascination with all things Rangers and there is a market for information that relates to it and its internal workings.”
In response, Mr McBrearty said: “The concern of the defenders relating to the release of these documents is that the pursuer will then put them into the public domain. That is a suspicion and a suspicion only.”
Lord Woolman agreed to hold over a ruling on whether Mr Ahmad could have access to said documents until a hearing on May 13.
Ahmad also called for financial statements relating to the deal. He requested both financial projections and up-to-date statements on turnover and profit from the retail business.
He also requested contracts and leases regarding the purchase of the Albion Car Park, which he claims to have been involved in. Lord Woolman granted access. Rangers’ counsel stated it would take three weeks for all details to be provided.
Ahmad was also successful in having Rangers hand over emails from his club account which relate to the deal.
An agreement was reached whereby a court-appointed commissioner will be given the data to extract relevant information. The main part of Mr Ahmad’s case, which was due to be held in February 2015, could now be held in November this year. A decision will be reached on that matter at the next court date.
The availability of star witness Mr Green will also play a part in determining whether the case will be heard in November. It was stated that the former chief executive had been contacted to state whether he would be available but had not yet replied.
bournesouprecipe
13:53 on 28 April, 2014
Tonight’s Glasgow Cup final in Paradise is now sold out. But @CelticTV will have live and exclusive coverage of the game. Kick-off 7pm.
@CFC
—————————-
I was told on Sunday at the game that the horrible lot have sold 1,800 tickets and are encouraging as many supporters as possible to meet in town prior to the match with the intention of processing along the Gallowgate to the game.
I really hope it’s not true.
dotted again by BSR……
Paul,
Interesting article , as always I think it includes some deliberate mischief , however, of the many loose ends in this incredibly entertaining saga is the question of ownership of the property assets , I have difficulty believing White was “Duped” by Green , he seems more of a Duper than Dupee . Bammer Brown may yet have had something .
Your summary seems to be they are too big to fail but too stupid to survive ?
Geordie Munro
13:54 on 28 April, 2014
Jesus wept.
HT-I posted last week we should have reneged on playing this game at CP,and moved it to Lennoxtown or behind closed doors.We are on a hiding to nothing here,SMSM with made up stories at the ready.
‘A man must be a Celt on and off the field. Otherwise he is of no value to this club.’
‘Refugees welcome, created by immigrants’
I reckon LG has just been caught up in a bevvy induced sing song at his local which Im sure many in here have too (including myself)
I hope this episode makes LG a bit wiser because he will continue to be targetted by the hun media while hes playing for us.
What I will say that on the field signs are very positive for LG, he has helped Anthony Stoked raise his game several notches plus hit the ground running himself.
Hail Hail
Livibhoy great post at 13.34 regarding LG.
Livibhoy
great post mate and sums up what most of us feel: He’s erred, perhaps even thinks that way and will be given the chance of enlightenment.
Good afternoon all
Livibhoy
As someone posted earlier, please stop posting sense, that’s not what this blog is about. :-))
Weefra HH supporting and praying for Wee Oscar.
And even further off track
Re tonight’s game. Are the new seats and toilet fittings already on order?
HT/Bada
Expect criticism from some, for the hosting and billing of the game.
Smarmbucket Max Clifford found guilty of 8 indecent assaults
sixtaeseven
Made me laugh……….obviously Sixtaeseven you can’t tell your hunch from your hump…….suppose the same applies to Sandy Easdale…..He’s not sure if he is a director of RIFC or TRFC, now is that not supposed to be not allowed under companies law !
HH
!!bada bing!!
I raised that exact point when I met John Paul Taylor last week at Celtic Park . His take on it was that it was Celtic’s turn to host the game and if we refused to host it then we would look as if we had the problem .
Disagreed with his take on it and told him that no matter what happened before , during or after the game then Celtic or Celtic supporters would get the blame .
HT, ernie and borgo
Thanks for the input. My son is adamant that it happened but he is not providing details as he likes to see the old man struggling to recall.
I wonder if it was a friendly match and whether MON was portrayed, on here, as trying to make a point to the Board by doing so.
weefrathetim
Good to meet you yesterday before the game at CQN corner :-)
FourGreenFields-Thanks for reply,i agree,i think we are on a hiding to nothing over a minor fixture.HH
I find it sad that the GB stole a drum from travelling ICT fans. If this is true it doesn;t sit well with the banner they displayed at the game yesterday.
I love what the GB bring to the game but I can’t stand stealing in any form.
Very disappointed if this is true.
LB
LiviBhoy – God bless wee Oscar @13:34
Thank the Big Mhan Upstairs for someone taking a step back and offering some balanced insights!
The poster last night who said you’d never see Iniesta or KoK risking breaking a leg by dancing on a pub table also made a good point.
And Margaret McG – your doom-laden warnings about the bitterness of their imminent/potential death (Sevco….not Iniesta, Henrik or Livibhoy!!!) may well be wise I fear. Zombies don’t go quietly or peacefully.
HH jamesgang
LB- Agree,as i posted earlier,i won’t be taking any lessons from the GB.