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

323

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!

Sale on at CQNBookstore now!

Click Here for Comments >
Share.

About Author

323 Comments

  1. Should be goals a plenty for the Bhoys with that line up!

     

     

    That newly promoted team that are Hibs are playing, where do they sit in the standings?

     

     

    Sevco, the gift that keeps on giving HaHaHaHaHaHa

     

     

    HH

     

    gsu

  2. Pleased for Stubbsy. Good lad whose late goal in a 1 all draw with them in 1997 was instrumental in stopping 10 in a row.

  3. Dubaibhoy-Ur they still deid? on

    Champagne a flowing, Johnny Cash playing in the background – beware neighbours this could become Karaoke Saturday…

  4. Think the Lizard Squad have struck again… followfollow.com this time… can’t seem to get on the forums!?

  5. Tricoloured Ribbon on

    gordybhoy,

     

    Too busy lapping up that hammering for Sevco.

     

    Aye, I’m fine mate.

     

    Season’s greetings to ye.

  6. Jamesie hasn’t been really effective recently, there are plenty waiting for a first team start or to be on the bench – which is great to see.

     

    Good to see Ronnie going with an attack minded line-up.

     

    Hopefully we’ll find our shooting boots today after a few games of wastefulness in front of goal.

  7. CELTIC (4-2-3-1) Gordon; Matthews, Ambrose, van Dijk, Izaguirre; Brown, Bitton; Griffiths, Johansen, Stokes; Guidetti.

     

    Subs: Zaluska, Scepovic, Commons, O’Connell, McGregor, Henderson, Tierney.

     

     

    Ho ho ho

  8. Ciarans dad 2

     

    Tell big Joe I was asking for him. Met him watching a match in Jack DempseysNew York. Gave me a Houston Bobby Lennox t shirt. Saw 2 matches there with him 2005. I was on honeymoon and surprisingly enough still with her.lol

     

    Hh

  9. Neil canamalar Lennon hunskelper extrordinaire on

    The board should dip into their own pockets and do something to save the season ha ha ha

  10. Kenny McDowell looks a broken man already hahaha

     

    That’s what happens when you employ a youth team coach as a 1st team manager hehe