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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Livibhoy
As someone has already posted far TOO much sense for this blog go find another one lol. Incidentally great post.IMVHO.
Real puzzler.Are the deid teams supporters going to be accompanied to the toilets tonight (hopefully Polis will be in Uniform rather than wrecking them out of Uniform).
OR
Are we going to close the toilets as has happened to our away support on numerous occasions.
In the event of the toilets being wrecked who is going to pay for the damage given that they do not have two brass farthings to rub together? Will those “sponsoring” the Final make good the damage? Serious question.
I Celtic and rangers are alive and kicking ,look how we have bus from one of the biggest shareholders at ibrox Parks of Hamilton. why dont we have our own bus.
charliemac
16:18 on 28 April, 2014
‘There’s a group, no association of Celtic Football Club, who bombed, maimed, shot, punished and beat hundreds of people – a lot of them innocent people’
###
The British Army?
starry plough
16:17 on
28 April, 2014
leftclicktic We are all Neil Lennon
Why should Celtic make a statement on the status of a club in liquidation??
Integrity perhaps.
Hope the stadium is repaired before Saturday
RWE
Just visited yer bhoys site and seen where the “Dont shrink” blog name came from,
left a comment but pass on my best wishes to a fine Bhoy.
Tom mollach 12.56 27th
Hi Tom.good points.so many investigations going on into there behaviour on so many levels(mostly in courts) good luck with the f.o.i.request
It would be interesting if there was a similar timeline of SFA investigations?
Maybe they were tired and burnt oot by then :-)))
Soz cant c&p on phone
HH
An-t
starry plough
16:17 on 28 April, 2014
‘Why should Celtic make a statement on the status of a club in liquidation??
Is there a business reason,’
####
The statement wouldn’t be about the club in liquidation.
It would be about the club purporting to be the club in liquidation.
Is there a business reason?
Well I think it’s self evident that there is a business reason for sevco to claim to be the most successful club in Scotland.
If they aren’t then we are.
So logic suggests that if they perceive an advantage in claiming the accolade there must be some benefit to us in claiming the accolade.
The other reason is to do with sporting integrity, honesty, unimportant stuff like that.
Hamiltontim is praying for Oscar
16:21 on
28 April, 2014
Charliemac
The GB have always said they only speak for themselves (as Celtic supporters) and no one else
Have you had a wee look on their website,..just give it a wee look
One wonders how much longer it will take SFA to utter the words ‘Bringing the game into disrepute’.
On second thoughts, they themselves already have.
RWE- you may be familar with this research
As far as I know the Italian findings have not been confirmed elsewhere.
Your son’s courage does great credit to him, and his family.
Ernie Lynch@16.25
Fair play to ye
my boss is peter principle
What will it show in relation to my point?
Not sure ICT will have many fans at Paradise when they visit again.
http://caleythistleonline.com/topic/28368-parkhead-yesterday/
They are complaining about the GB ruining their atmosphere. Ridiculous!
LB
RWE
Inspiring stuff.
ernie lynch
‘There’s a group, no association of Celtic Football Club, who bombed, maimed, shot, punished and beat hundreds of people – a lot of them innocent people’
###
The British Army?
======================
I must admit I haven’t heard those songs of praise for the British Army
To condone murder and be appalled at someone singing a song requires a major irony transplant
Ernie Lynch
Playing catch up here.
Stop taking advantage Ernie. You’re engaged in a battle of wits against an unarmed man.
hamiltontim is praying for oscar
16:21 on 28 April, 2014
Charliemac
The GB have always said they only speak for themselves (as Celtic supporters) and no one else.
**********
HT. I think it’s fair to say I’m pretty middle of the road in terms if CQN spectrum of opinion. Skelves in my posterior and all that……
…… But I think the GB give off a strong impression of being rather more than mere individual supporters representing their individual/collective (difficult to explain that concept) views. In fact they wouldn’t really be an effective brigade/ultras if that’s all they sought to represent and achieve.
Whether their message was right or wrong in terms of content, context and timing in another separate matter.
Returns to his seat on the fence.
PS now away to meeting then kids’ training so 100% aff oot! Neither flouncing nor hiding!
HH jamesgang
charliemac
16:39 on 28 April, 2014
‘To condone murder and be appalled at someone singing a song requires a major irony transplant’
###
No, what it requires is a degree of intelligence, knowledge, understanding and judgement that would be unknown to you.
Not commenting on the context it was used but that is superb and has been logged for later use off line :)))
“You’re engaged in a battle of wits against an unarmed man”.
TheOriginalSadiesBhoy
No battle of wits
I’ve seen the typical battle of wits that Ernie indulges in – wouldn’t go there
The man that will continue to defend any cause no matter how reprehensible
It’s a sure sign of genius to go for the idiot insult at the first attempt
RWE
Love. Respect. YNWA.
HH jamesgang
RWE
Just visited the site to donate.
Your bhoy is a special bhoy, and you will be rightly proud of him.
It was inspired reading.
All the best to Tony and all your fantastic fund raising activities.
HH
charliemac
16:47 on 28 April, 2014
Are you aware of a song called God Save Ireland?
Do you know what it’s about?
Would you condemn those who might sing it at Celtic Park?
I am an Irish Citizen
You’ll never walk way alone
Yesterdays highlights
http://www.bbc.co.uk/sport/0/football/27092928
charlie mac
My comment was not aimed at you. Ernie eas engaged in an immigrant/ refugee debate earlier. it was to that I was referring. No offence intended to you.
Bsr,
I had a wee silly chuckle at the entertainment type which heads the list :)
TheOriginalSadiesBhoy
Apology accepted
What date is the Greenock shindig ?
Paul 67 ……..you’ve got it awe wrong…..
Peter 1872 ( with almost 5000 posts) from Honeybears Den @ Honeymhedia, tells it as it is………..
Shirley a Timposter………..
I think there are a few ways of looking at this extract from the review and yours might be different from mine?
Some could say it’s a realist view where others could say we have lowered our expectations by accepting the second prize of the premiership prior to a ball being kicked.
I know a lot of us aren’t happy with the football we are watching and firmly blame the manager but I don’t think the review and comments from GW is indicating we are in for a change of manager anytime soon.
My interpretation of the league targets is that GW believes Ally can get us out the championship with a few players added and a few let go.
GW is also clear that he is not to confident if Ally and whatever team we have will win the premiership the first time of asking.
Now this vision of second place actually fits in with Ally being replaced with a proper marquee manager which should match the expectations of our great club should Ally fail.
I believe we need a Graeme Souness type manager, someone whose name will shock and instantly prompt discussions from everyone involved in football.
Now this type of manager isn’t going to touch us at the moment and if he would the clubs current financial situation wouldn’t allow it. This will only happen back in the premiership and having a shot at Europe.
Going off track slightly there is also the argument that the lower leagues are dragging our premiership players down to that level and if that is a true then the footballing under Ally should improve next season.
Most don’t want to give Ally that chance and would rather have him replaced by the likes of ex players such as DM, TB, SM, BD etc.
These are ok choices but to me not one of them constitutes a marquee manager and personally it doesn’t really demonstrate a very high expectation on what type of success that we want.
Don’t get me wrong I wouldn’t be against any of the four replacing Ally at the end of the season but I just don’t think they are experienced enough.
I also don’t think they could get us into the last 16 or a Europa Cup final and think they would also get replace after failing to win the premiership the first time of asking.
If we stick with Ally I believe there is more of a chance of getting an experience and successful manager further down the road. A manager who will win the premiership the first time of asking.
If we go for one of the four I think we will give them more time than we should which again will be detrimental to our overall ambitions.
Now the season is nearly finished and I’m over the rage of the cup defeats, my angers towards Ally in his current position is fading. Maybe it’s the sadness in his face in the photo with Sandy, I don’t know.
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tonydonnelly67
09:00 on 28 April, 2014
So the dullards who call them selfs the GB have now taken to slagging a Celtic player who on the day is playing for the club? Laying on goals and scoring, LG has not even been charged or heard yet, (a thing that these dullards go on about when talking about them selfs) there is a Video of guys singing in a bar and he is in the bar ( videos and getting there pictures taken are another thing these dullards complain about,and so they should) but tell me this are they complaining about the videos and pictures taken yesterday with the banner? No, why? Well because as I’ve been telling you for ages, it suits there agenda, it gives them publicity, who ever runs them, they don’t go public on that by the way who runs them? They are our blue pitch holdings and Margareta holding, who want to remain anonymous I’m sure you can all work out there reasons as in not the least bit worried about Celtic just using you kids to suit there ultra actions and thinking, when a player runs out on the park wearing the hoops he is my player he is playing for me and my club. What ever comes of the investigation I trust Celtic to deal with it in the proper manner, as for this bunch of rag tags who do not and never will speak for me the club should do what they have done find them guilty without a hearing and eject them from every game, the club need to take action here before the supporters of Celtic do and that could get nasty, and that is what they want not what we want,
A CELTIC SUPPORTER SHOULD SUPPORT THE TEAM ON AND OFF THE PARK OTHERWISE STAY AWAY FROM HERE WITH YOUR POLITICS . AND SUPPORT THE CLUB NOT YOUR AGENDA.
HAIL HAIL
~~~~~~
Well Said,My Good Man….!
POST-OF-DAY….!
The Drinks Are On Me….
Next Time Ah Pop Intae The Brazen…
These Pimply Youths Doin’ Their PhDs In Jeremy Kyle Studies….
At The BreezeBlock Polytechnic Of G1…..
Oan The TAXPAYERS’ DIME !
Oan The BACKS Of THE HONEST WORKING MAN..!
Afore They Go Oan The Bru’ For Life….
An’ Pester Ye Tae Buy ‘The Big Issue’
When Ye’re Dyin’ For A P**…..
Need Tae Get Their Ers*s In Gear…..
An’ Smairten Up Their Ideas…
Or Thirty Years Doon The Line…
They’ll Be Baldy Ole Men…
Hauntin’ Roon-A-Boots At Night…..
Offerin’ SKWER-R-R Goes Tae All Comers…
Right….?
Darned Right..!
‘Buckets and spades will be at the ready on our man-made beach which will be formed from two-tonnes of sand’
– Punch and Judy provided by Uncle Eurochamps and the Flying Gazebo Brothers.
ICT fans have every right to complain about GB positioning ……after all they had travelled a fair bit to glasgow to watch football not to listen songs being belted out and banging drums…..bad move celtic…..just as well it isn’t ross county fans who are irate, otherwise their next visit would be on a tandem.
Just back from a smashing trip around the Ring of Kerry. Stopped in small village and spotted a lovely wee Church. Thought of CQN and dropped in and said a prayer for the lot of ye (heathens & all) but in particular for derbyshire bhoy and jamesgang’s wee Mam. If either of ye bhoys are lurking hope things are going a wee better for ye.
Looking for a bit of advice.
Has anyone had a ligament removed from their ankle and if you have, are you glad you did or wish you hadn’t?
RWE – had a wee look and will come back to it later. Laughed out loud at his fall – I hope that was the desired reaction.
Great stuff – pass on my best wishes.