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It’s about cash, not a seat in the gazebo

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By on CQN BLOG & Comments

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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  4. BontyBhoy on

    and… I’m genuinely baffled that his turnover rate get’s so little attention. I think it says a lot about Scottish football that it is never mentioned. Ever.

     

    For every little moment of inspiration Larsson provided, it was his ball retention in difficult games I loved him for most. Win that throw-in and give us yardage and time to grab something from this team that costs 10 times what we cost…. that was a truly ‘best player’.

  5. up_over_goal on

    BontyBhoy

     

     

    Lubo at his best was miles ahead of Commons, so let’s get that out of the way.

     

     

    I was taking umbrage at your heady anticipation of Commons’ exit from the club. We used to be a team of ‘entertainers’. Soon we’ll be a team of Ronny’s robots.

     

     

    By ‘modern team’ you mean Ronny’s 4-2-3-1? Would love to see how Lubo attempting to ‘adjust’ himself to that. Commons carved open SPL defences because he had two players in front of him, as did Lubo.

     

     

    His turnover rate? Jeez. Take off your blinkers and see how often the much-feted Johansen loses possession.

  11. Dan on

    Off to paradise. Hope RD changes our formation so that we have a bit of shape in the team and organisation.

     

     

    HH Dan

  21. Like no other on

    Dena29 @22.18

     

    Your prediction was spot on. If Carlsberg made Saturdays……;)))))))

     

     

    Hail hail

     

    C’mon the Hoops!!!!!!

  25. the glorious balance sheet on

    It’s Christmas, I’m headed for Celtic Park to watch the celts, heading out on a post match swalldo afterwards and Sevco are being destroyed by hibs.

     

     

    Life is good.

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