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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jocky bhoy 13:42
Surely Rangers need to pull the plug before it gets to the stage that points are deducted from next season’s Championship – they’ll have a tough enough time with some decent teams down there, even without the austerity measures they have to implement at some point.
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From a footballing point of view, yes. But do the spivs really care if it takes them an extra year to get to the premiership? As long as they are getting rent money it won’t make a big difference to them.
Kris Commons – well done on your POTY.
Mind, there’s a few POTY mouths on here recently…
‘GG
Thank you for your support.
We never walked alone.
Wallace resigned yet?
Watched the second video of LG as the song starts you can just see LG being pulled down to sit down by a switched on friend to his right.
How many others in the pub are being investigated…. total stitch up and good on Celtic sticking by him until the full facts come out.
I recall NL allegedly being ivetigated re aking remarks after a r”$#^rs game deemed racist. I got it from a very good spurce that you could make out what NL said, I looked at it along with a mate who is of the dark side, couldn’t make out a word.
He was getting done with it, guaranteed I was told, still waiting.
It’s a worry what goes on in respect of the anti Celtic propaganda that some on here get involved in and believe, continually.
Ayrshire is Green and White
Still smiling at this from yesterday
Good to see ICT keep their sense of humour:))
Official ICTFC@ICTFC · 7h
GUESS WHO SCORED?! Not us. 5-0 Celtic
———
Official ICTFC@ICTFC · 7h
6-0 Celtic. Next goal’s the winner?
Having read the to and fro of the banner debate ……… I remain of the opinion that Griffiths needs punishment for any proven misdeeds and an emphatic warning about future conduct and its consequences. Simples.
Self importance is not an attractive feature neither in individuals nor brigades.
I’ve heard all the arguments about LG and the song singing, is calling someone a refugee even a insult or racist ? If someone called me it I would think twice about it, I just don’t get what all the fuss is about. Has anybody asked rudi what his thoughts are on the matter ?
I would love to hear more arguement and debate about the merrits of Peanut Butter.
MWD says YES
And if you liek you could discuss the merits too.
See these flungers
MWD says YES YES
GlassTwoThirdsFull
14:58 on
28 April, 2014
jocky bhoy 13:42
Surely Rangers need to pull the plug before it gets to the stage that points are deducted from next season’s Championship – they’ll have a tough enough time with some decent teams down there, even without the austerity measures they have to implement at some point.
————————————————————————————-
From a footballing point of view, yes. But do the spivs really care if it takes them an extra year to get to the premiership? As long as they are getting rent money it won’t make a big difference to them.
——————————————————————————-
Yep tend to agree with this comment.
If it came to getting an extra pound out of Sevco by delaying the admin by a day and thus taking the points hit next season rathet than this season they would do so. I think as, Paul article alludes to, they dont think they can survive long enough to make the premiership so its all about maximising their profit in the next few months .
I also posted yesterday that I though RIFL would transfer Ibrox and Murray Park from Rangers football in payment of the debt. Once that happens it’s really is all over!
Hun skelper,
I’d be surprised is Rudi is as offended as some on here.
micktt
15:06 on 28 April, 2014
ABSOLUTELY…….!!!!!!!!
Anybody fancy Spaghetti pie
This was the pennies are tight day meal in my mums when we were kids.
One shortcrust pastry, basted with egg and baked for a few mins.
Pour in tuin of Heinz Spaghetti.
Grate with Orange Chedder Chase.
Place in oven until ready.
I still love it.
MWD says YES
Cheese. Ibones Arrrrghyhhhhgbhghghgahgg
MWD says yes
geordie munro
15:16 on 28 April, 2014
The offended bus is full, standing room only HH
fourgreenfields
The pleasure was all mine. I love meeting there on matchday and will be there again this saturday. :-)))
Weefra HH supporting and praying for Wee Oscar.
Moonbeams,
Lol.
You are offishally aff yer heed.
Geordie
better than the LG debate and moaning about the debat because I’m bored with it. :-)
MWD still says yes.
hun skelper
15:10 on 28 April, 2014
‘I’ve heard all the arguments about LG and the song singing, is calling someone a refugee even a insult or racist ? ‘
###
Well you’ve heard the arguments, but you may not have understood them, or you may have understood them and decided for your own reasons to reject them and pretend not to have understood them. I don’t know.
I do know this though.
No racist would find the song offensive or find it it any way objectionable. They would wonder what all the fuss was about.
Moonbeams,
Infinitely more enjoyable neebs.
MWD- a longtime lurker on here wants to know if Gregg’s do such a delightful sounding dish?
He finds himself in a ‘pennies are tight’ bit of a bind.
Wonder how max clifford will manipulate his own conviction in the media?
HH
ernie lynch
15:21 on 28 April, 2014
What’s racist about it then ? Maybe I don’t understand it, any help would be greatly received.
“No racist would find the song offensive or find it it any way objectionable. ”
Does not compute.
Dontbrattbakkinanger
14:36 on 28 April, 2014
Twa keepers on the bench?
Nay, but here’s twa onions in the bag
I think I would have called them two keepers mmmm
Mwd
Grate with orange Chevy chase!!!!
That would be more interesting :-)
IF YOU KNOW THE HISTORY
100 YR AGO TOMORROW A FIFE MAN PLAYING FOR RAITH ROVERS SCORED AGAINST A CELTIC TEAM & A FELLOW FIFER FROM THE SAME SMALL VILLAGE.
3 YEARS LATER BOTH WERE SLAIN IN WW1!
http://www.thecelticwiki.com/page/1914-04-29%3A+Celtic+2-1+Raith+Rovers%2C+League+Division+1
hun skelper
15:24 on 28 April, 2014
The implicit assumption of the song is that being a refugee means you are inferior.
A bit like being a Taigh.
Or a nigger.
Would any of you who see no issue with what Griffiths sung sing the same thing to a refugee?
Can anyone tell me much it is to get in to 17s game the night or do u need a ticket
Moonbeams WD. Rooting for Wee Oscar. Voting ‘YES’ on the 18th of September. Kano’s yer man.
15:17 on 28 April, 2014
The orange cheddar might just help sell it to those impecunious chaps over in Govan.
michaelj @ 15:29
Perhaps you can exchange your soul at the gate.
MWD @ 3.17
Call me a Weedgie but that actually sounds amazing!
HH jamesgang
ernie lynch
15:28 on 28 April, 2014
That’s your assumption of the song.
hun skelper
15:30 on 28 April, 2014
So, eh, if that assumption is wrong, what would be the reason for singing the song?
Morrisey,
Would I call a refugee an effing Rudi scacel?
Probably not.
Michaelj:
30 pieces of silver payable at the turnstiles.