Here’s the question: Potential investors offer to underwrite £6.5m worth of shares, around 30% of the club’s equity, at circa 16p per share, and require 2 seats on the board, what do you do?
Money is welcome, but the existing shareholders may consider this particular offer poor value. The first £3m will go to repay Mike Ashley’s loan, acquired on easy terms and due payable in April, leaving you with a net inflow of £3.5m. But you’ve flogged 30% of the club to get it.
There’s also the small matter that a net improvement of £3.5m is not enough to save the farm, in fact, it will only keep the doors open for another five weeks. Five weeks, for 30% of the company. Is this in the best interests of the shareholders?
If you’re advocating the position of the fans, you’d take the money. You don’t care how much of the club is given away, or that you’re only kicking the ball down the street 5 weeks. In fact, you want ever-more of the club to be traded in this exchange, as you don’t trust the current controlling shareholders. The shareholders will see things differently.
Throughout this episode an arrogant attitude has existed towards those who put their hands in their pockets in 2012, or since, and funded Rangers International FC PLC. I’m not saying I’d be any different if it was my club, just observing that any attempt to present a solution to the club’s gargantuan problems without recognising – and suitably compensating – the controlling shareholders, will fail.
Ashley can allow his £3m loan to rollover in support of an alternative offer, perhaps from an anonymous offshore entity, respecting the value the shareholders paid when their club needed help most.
I know it’s counter-culture for these types, but why not just offer to buy-out the shareholders at a high-enough rate that they’ll accept? Like Fergus did back in ’94. None of these guys are there for the seat in the gazebo, it’s about cash – if you want the club, don’t try to shame them into handing it over, pay them!
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Robert88
Well he seems to do the job getting teams up, then lose job once up or get durranted -demoted:-).He is an honest grafter, teams in that british mould, I am sure he will get something tho blackpool may be beyond hope.:-)
Hope you had a good christmas
:-)
HH
If all the ebt recipients as good rangurz men pooled their loans and added it to the 3.5 million then that would keep the lights on
For 6 weeks.
big nan
If they are not current shareholders there is no way in to the equity until after the rights issue – of course they can either loan the money or give it away – no laughing at the back
“I was fortunate to play at Celtic Park in the same game as Lubo, but not fortunate with the way he played against us!”
Pavel Nedved (Juventus)
An Tearmann
I did indeed thank you.
He’s a very good manager, and motivator he irks a lot of people but he’s straight talking you know where you stand with him.
Once Pearson gets the boot, he could also go in there and get them going.
Off to the daughter’s for lunch and some more Christmas cheer
COYBIG
Get the feeling the Parks story was written and filed some time ago.
Plan Z CSC
An Tearmann
What gets to me about these clubs, is what were they expecting once promoted? a league push, europe, keeping themselves in the league is the most realistic case, but there are a lot of very good teams in and around them, with all due respect to palace, burnley and Leicester, they may as well enjoy the ride and not put extra pressure on themselves by setting what I think are unrealistic expectations and see what happens.
Yes teams do stay up and do exceptionally well, I even think those chairmen are surprised by it.
5 more weeks, from now?
That might be a fun weekend to be a Tim!
Ole Tom English will be taking notes from Paul’s article to try and dampen Dickie Wilson’s unbridled joy at the intervention from the real Bears …
laughalongashortbreadcsc
My friends in Celtic,
If I have learned one lesson from the circus at Greyskull (sorry st stivs ) it is that always expect the unexpected.
No amount of wishful thinking will bring this charade to a close. They may well go into administration or even “Rangers 3 ” but some entity will remain.
This is an embarrassment for the whole of Scottish football, my preference is to leave this cesspit and start afresh. I am aware of the difficulty of this, but surely our custodians must know that this is the only long term option. Many of us will never accept the return of any “Old Firm” and again in the long term we will be among the losers as our support fragments.
What if anything are our custodians doing and what is their strategy ?
I have long argued that we need to move leagues, but this in no way means that I do not believe there are good people supporting all teams.
There is good and bad in all, its just that we have run our course here and need to move on.
HH.
Robcfc11
Re your secret santa
Is that 25% of the wholeclub?
Lol
:-)
Merry christmas
——
Right to the match
Enjoy your day cqnrs
Wherever you are.
:-)
HH
Mighty TIM, now caught up, thoughts and prayers with your Father in Law – Dougie
Now for my penance, I have offered Doc a seat next to me, I will try to educate him Again on Football, so the following is available :-) ( can’t believe I will torture myself with Doc)
doc
11:37 on 27 December, 2014
A repeat from the last thread, a parent and child ticket going for today’s game, can meet at CQN Coarner.
doccqten@gmail.com
Free to a good home, first come.
Hutchybhoy if about I know you were looking yesterday
Oh, Doc, Sean called me, sorted :-)
Good Morning All ( again )
An interesting take on events coming from our Paul — and indeed from Richard Wilson who was presumably chosen as the media outlet by those who wanted the world to know that they were willing to “invest” in the Rangers.
However, for the avoidance of doubt, let me state the bleeding obvious to any potential, budding and died in the wool ( of any colour ) journos and others who want to cast their eye on the Rangers situation.
Many of those who we are told are “real Rangers men” are people who have built businesses up from nothing, have become very successful in their own right, in their own field, at their own trade and within their own businesses.
What these same people are not are hardened traders when it comes to the buying of a going concern — even one that is limping along towards death’s door.
With all due respect to Douglas Park and so on, they have created fantastic businesses by building up their brand, acquiring sites and rights and franchises, expanding upon them and being competitive in the market place.
That is a different thing to gazing upon an already trading business which is ailing but has the potential for growth, but which is burdened with horrific overheads, honerous contracts and various other difficult issues when it comes to trading successfully and at a profit.
In valuing such a business, you have to look at what you can reasonably make from any such company, what it’s reasonable potential for growth is, what it actually costs to run, what the reasonable expectations might be ( and then downgrade them by 10-15% just to be safe ) — and then, and only then, figure out just what value you would place on such a business at the current time and decide whether you want to pay that sum or not.
However………
There is another factor or two to consider.
Whatever figure you arrive at by following the above formula, you also have to ask whether or not the current owners will consider it worthwhile accepting your offer at that price?
How do they value the business and what is it worth to them?
That is a wholly different exercise to the one that has just been described above because they may well have ways of making a profit from the same business which are just not open to you.
Not only that, what is this business worth to other potentially interested parties? They might just be prepared to pay more than you for reasons which are unique to them.
There is a very strong school of thought abroad that Mr Ashleigh couldn’t give a kipper’s Dick whether Rangers International makes money or not, as long as he has secured various contractual rights which provide sports direct with a healthy return.
Of course, If the Rangers International situation got so bad that big Mike might lose his guaranteed £4-6 Million a year from the Gers, then he may well be tempted to throw in some cash for even more rights or money making opportunities such as advertising revenue and the likes.
But he doesn’t need to spend mega big money to achieve that.
No, all he need do is throw in such cash, gain a degree of influence which allows him to dictate future spending, cut the costs, steady the ship, trade reasonably in cash terms, and then safely walk his cash into the bank — year after year no matter what.
Douglas Park & Crew are offering a sum of money and in return want a degree of influence that would diminish big Mike’s ability to steer the cash bus when and where he wants it to go.
I suspect that for the kind of money they are offering, Big Mike will allow them to sponsor the hubcaps — but they don’t get to drive the bus, own the bus, play with the satnav or even sit at the back of the bus and shout some instructions to the driver in front.
And that is because no one has bothered to do the calculations as to what the current situation is worth to the guys who already hold the power.
One major flaw with the thinking of the Sevco 3, if what you say is accurate, MA knows he has Sevco by the short and curlies right now. Why should he accept simple reimbursement of his loan to walk away?
If I were MA I would call the dynamic threesome and simply laugh my head off.
6.5 million is utterly useless. He knows that he can pretty much name his price and it will be at least 10 times the value he has invested.
Is there anyone out there, with a brain in their head, who didn’t foresee some sort of white knight story coming out of the MSM to offer hope to the hopeless Sevconian faithful?
DK is a washout. They couldn’t keep a lid on his woes any more.
Someone else had to be found and hey presto, up pops the 3 wise men.
Sorry guys, that one has already been done.
Just how gullible are the huns? Time and time again they have been fed false hope after false hope. Gullible to the bitter end…..
Nearly time to head to today’s game…
Catching the preamble to the Hibs game…Neil McCann’s comments indicate how unhappy he is with the caretaker….and not a ball kicked yet!
Keep watching as the honest mistakes start racking up again….
Dear media trolls mind there is no old firm….
Enjoy the game everyone heading to it…
HH
Macew,
Perhaps I read too much into your post, but I hope you aren’t comparing Lubo and Kris Commons… please tell me it hasn’t come to that.
RD would have adored Lubo because he was a very good player, and in addition to presenting a threat to opposition goalkeepers, he could pass the ball and control a ball. Most impressive of all his passing was to his own team mates.
We’re about to lose Commons and a lot of Celtic fans will get on Ronny and Peters case about it, but, I’m actually looking forward to it. There are a lot of frustrating players in our team, but most are young enough to fix their faults, with Commons you see a 30 year old who isn’t fast enough but still hasn’t worked out how to slow his game down.
Lubo, by start contrast, got better as his game slowed. The real gems often do, once the temptation to dribble every time is removed their game intelligence and vision become their key skills and they are even more dangerous.
Where were the “ranjurs men” when sir minty was selling all for a pound ?
Well done paddybhoy1888 on yer top 10 ! Hope all the family had a good Christmas hh
Big John and Stan on Football Focus on BBC1 on in a mo
BRTH
Back on form, for someone supposedly no well :-)
Hail Hail
Cowiebhoy
It is amazing what you can do from the comfort of your bed!
Best of luck sitting with Doc this afternoon.
Start with the basics by pointing out there are two teams, two sets of goalposts, one ball and a strange creature in black in the middle whose role has never been fully determined ……….. in Scotland at least!
Tim alone will tell,
Thanks for the advice earlier.
What a goal for Hibs!
Peach of a strike ;-)
Hibees one up lol
Nice :-) response
Get in there Hibbees
David Gray
BabylonCsc
CowieBhoy, good stuff, see you in half an hour.
Ha ha ha ha ha
Was The Billy Boys tuped over?
BannedSongs CSC
2-0 Hibs
2-0 Hibs
Hahahahahaha
2-0
David Gray takes time out from composing his latest adult orientated radio friendly hit album to smack a belter into the net against the plucky new corners……and as I type it’s 2!!!!!!!!
The commentator on the Huns game..
‘Sevco haven’t lost on there last 13 visits to Easter road ‘
Needs to get his facts updated
Sevco 0
Raith rovers 1
Easter road
Great start for the ex Celtic youth team coach hahaha
Next up Kenny McTrowell.