Look the other way: fixed and floating charges


Yesterday Graham Wallace, Norman Crighton and Sandy Easdale offered to giving a legal undertaking be security would not be given over Ibrox and Murray Park in return for a loan.

Security over a property asset is only one way for lenders securing that asset, it is not the most popular, or even necessary, for the lender to control assets.  More commonly, a lender will require a floating charge over the assets of the company.

A floating charge ‘floats’ over all assets of a company until it is discharged by full payment, or it converts into a fixed charge over whatever assets the company has at that point in time.  This is usually due to a payment default, but can also be triggered by a weakening in one of the company’s trading indicators (say, poor season ticket sales).  A company can only issue one floating charge over all their assets at a time.

If you get a bank loan for a value which is significant to your size, you’re almost certain to sign over a floating charge over the assets of your company, no matter how good a trading record you have.  This is true for Celtic and Manchester United, and would absolutely be true for Newco Rangers.  Stakeholders at Celtic and Manchester United would not bat an eye at this, as there is zero chance of them defaulting.

It would simply not be possible for Newco to secure a significant amount of conventional borrowing without granting a floating charge.

With the floating charge in place, no other creditor can step forward and make a claim on the assets until the secured creditor is satisfied.  In many circumstances, lenders will prefer a fixed charge, as it prevents the borrower from selling key assets before an insolvency event.  With a floating charge, Newco could still sell Ibrox under the nose of the lender and fans alike.

In the event of an insolvency event, the floating charge becomes a fixed charge over whatever assets the sheriff officers can find.  In terms of Newco Rangers this would mean the stadium, training ground, the bike, loving cup, a hundred weight of marble, balls and stripes.  Ebay would be interesting when that lot was uploaded.

Perhaps this is why Celtic have hidden Lennoxtown up a country lane.  “No training ground here, mister, it’s just a field.  I wouldn’t take that car across those potholes.”  Peter’s not daft, you know.

For Newco, giving a legal obligation that the company will not provide a fixed charge over property assets is, quite literally, not worth the paper it is written on, without also committing not to provide a floating charge over all the company’s assets.  It would be “We promise not to give security over only some of our assets, if we give security, it’ll be for everything”.

Legally prohibiting your company from providing a lender with a floating charge also prohibits you from accessing conventional lending.  It would be ludicrous, and could only be considered if the alternative would bring the wolf to the door immediately, in other words, it might bring in season ticket money, but it would ensure an almighty crash as soon as the ticket money is consumed.

For well over a decade the various episodes at Ibrox have been an exercise in making people look the other way while dirty deeds are done. Still, the world’s Gullible Champions show no sign of figuring out what’s going on.  After season ticket money is banked, keep your eye on the floating charge.

The fate of whatever football team plays at Ibrox was set in a firm direction when Rangers incurred unsustainable debts.  As a consequence of this, their majority owner sold his shares to a liquidation expert.  The train was in motion long before May 2011.

Instead of asking Rangers International for a meaningless commitment, an acknowledgement of the situation should be made.  Reality is:

Key assets cannot legally be put beyond the reach of creditors.

The directors must legally look after the interests of shareholders – or be liable for their losses.

The club has a massive trading deficit to fill next year, the year after, and probably in many subsequent years.  Estimates of this being between £30m and £50m only acknowledge the next few years deficit.

There are no good choices now, only less bad ones.  It would cut ‘Rangers’ fans to the core to become tenants paying a high rent for the use of Ibrox, but flogging this asset might secure them enough cash to reach top flight football – and there is nothing whatsoever fans can do to blackmail the club into retaining this asset.

Whether they consider Newco to be the same club or not, future ‘Rangers’ branded teams will be nothing like those of the past.  There is a possibility they will have a team to support, but it will not be a Champions League team, and Ibrox might not even be the best place for it, a St Mirren Park-type venue, packed out every week, would at least allow them to pay their bills.

The Sevilla keeper moved.  Three referees watching.  Three referees!  Two on the line, whose only job was to check if he moved!  Last night I considered corruption was at play but there is another possibility.  Calling out the keeper was a huge moment for the assistants, each of whom may have preferred one of the other two referees make the call.  It would have been a huge call for the main referee, too, but he could have deferred to his assistants, who were in prime position.

Without clear responsibility, all three were frozen in silence.

Tommy Gemmell is on CQN tomorrow from 13:00 – 16:00.  Tune in and have a ‘chat’.  You can order his autobiography, All the Best, due out next week, from the link below.

Select Maiing Destination

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  1. blantyretim is praying for the Knox family on

    Get well soon Dannybhoy…



    charliebhoy out of bed, maybe back to work tomorrow, can’t lie down to a bad back.

  2. Richie #TeamOscarForever on




    It seems that drug production is from both ends of the spectrum: Back alleys or multi-billion pound facilities. That probably goes for “illegal” narcotics tae!

  3. and more from the official site.


    Seems like the good die young


    I can’t believe its six years. Seems like yesterday






    By: Joe Sullivan on 15 May, 2014 06:55



    SIX years ago today, on May 15, 2008, Tommy Burns passed away. He was just 51-years-old. The loss was one felt by the whole Celtic family though, of course, the greatest loss belonged to his wife, Rosemary and his four children, Emma, Jenna, Michael and Jonathan. And on this anniversary, as always, our thoughts and prayers remain with them.


    Tommy Burns was a public figure, known and loved by Celtic supporters young and old, but he was a husband and father, and also a grandfather, and his family miss him in ways that we can’t begin to imagine or understand.


    In his all-too-short life, Tommy did extraordinary things for our football club. He spent 14 years as a player, making his debut against Dundee in April 1975 and bowing out in a friendly match at Celtic Park against Ajax in December 1989.


    The Celtic View interviewed him on many occasions over the years, and at one point he was asked what his greatest achievement had been as a player.


    As far as he was concerned, it was staying at the club for such a long time “because bad players don’t play for Celtic for 14 years.”


    That has always been the same at the club and it is testament to his ability that Tommy did manage to last so long.


    During that time he won six league championships, five Scottish Cups and one League Cup medal. It was an impressive tally for a player who made 503 appearances for his beloved green and white Hoops.


    Tommy Burns seemed fated to play for Celtic. The boy from the Calton, born almost in the shadow of Celtic Park, grew up following the club and progressed on to the hallowed turf.


    As he always said, he considered himself to be no more than a supporter who got lucky. It was always a way of reminding people, and perhaps himself, that he was one of them, and it offers a perfect illustration of his humility.


    Having left the club, he returned in 1994 as manager, and was instrumental in restoring our pride on the pitch. His team always tried to play football ‘the Celtic way’, and everyone who watched the Hoops at that time still speak with great affection and enthusiasm about what they saw.


    While he did win the Scottish Cup in 1995 – Celtic’s first trophy in six years – a league title eluded him. It would have been a fitting reward for Tommy and his team but sadly it was not to be and he left in 1997.


    Thankfully, however, it wasn’t for long and when he returned, it was like he had come home.


    Our Youth Academy, which has produced a whole host of first-team players in recent seasons, is testament to his hard work in setting it up, while the Lennoxtown Training Centre is a great legacy.


    And Tommy’s contribution to the club’s success under Gordon Strachan cannot be underestimated. The league triumph at Tannadice in 2008, which made it three-in-a-row, was dedicated to Tommy by a group of players still mourning the loss of an influential figure within their ranks.


    Throughout the battle he fought with skin cancer, Tommy showed great courage and fortitude, while taking great solace from the Catholic faith which had been a central tenet of his life.


    Supporters always loved Tommy Burns because he was one of us – a Celtic fan who was lucky enough to live the dream that we’ve all harboured at one time in our lives.


    And the sea of tributes which were laid outside the front of Celtic Park after Tommy’s passing, was the most visible sign of the unique place he held in the hearts of the entire Celtic family.


    So today, May 15, is a sad time for everyone. It’s still hard to believe that Tommy’s no longer with us, and every memory will be tinged with sadness.


    But we should also remember the great things he did for our club, the goals he scored, the trophies he lifted, the players he brought to the club and the example he set of what it means to be a good Celtic man.


    We believe that Celtic is more than a football club – our roots, our character and our ethos set us apart, and Tommy Burns embodied everything that is good about Celtic.


    He was one of the greats who passed through Parkhead’s gates and he will never be forgotten.


    Hail, Hail, Tommy Burns.

  4. Richie #TeamOscarForever on

    I’ll always remember WGS’s face sitting in the front of the coach as they left CP on the day of Tommy’s funeral. The sense of his loss was very evident as he stared ahead.

  5. Get well soon, Danny. Those of us who are old enough to have been privileged to see you play know what you came through in terms of a very serious injury and your heath. You beat the odds before with courage and great spirit and you will do it again. HH.

  6. Anyone have the video of sammi holding wee jay and being interviewed at the weekend ?



    Saw clips of lenny handing medal over an sammi bringing him on pitch.. Absolute heart warming stuff and its things like that which still seperate us from other clubs.



    Samaras without doubt is a fine human being.. Wish he was banging in the goals to make us keep him. Sadly he isnt.



    Hope he has a great world cup

  7. I think this was originally used to explain cricket





    I was watching the Phillies play the other night and remembered this old verse:



    Baseball Explained to a Foreigner



    You have two sides, one out in the field and one in.



    Each man that’s on the side that’s in goes out and when he’s out he comes in and the next man goes in until he’s out.



    When three men are out the side that’s out comes in and the side that’s been in goes out and tries to get those coming in, out.



    Sometimes you get men still in and not out.



    When both sides have been in and out nine times including the not outs



    That’s the end of the game.

  8. jude2005 is Neil Lennon \o/




    14:25 on 15 May, 2014




    Could sumdae explain baseball to me??



    Rounders for big boys

  9. Richie #TeamOscarForever on

    From the sallowed pages of FF; he makes a great point at the end, but if he goes for option 3, his blog name is a tad tainted:




    We are the loyal, the Gartcosh loyal Join Date: 01-02-2008


    Posts: 726



    King has to make a new statement






    I have been a supporter of king all along, however the lack of information and time this has been dragging on is leaving me with huge decisions to make.


    Do I re new my ticket


    Do I trust Dave king


    Do I give up after years of turmoil and spend more time with my family



    This is gone on long enough. We as a support have not and never will be united and this is our biggest weakness. No leadership from the top no trust, no transparency, no willingness to invest, no vision, no tactics, no enjoyment.



    Time to deliver mr king or I’m out

  10. Paul67



    What is all this stuff about Ticketus on twitter? How are they involved again?

  11. Dontbrattbakkinanger on

    Billy ‘Moneyball’ Beane has moved from baseball to MLS [San Jose Earthquakes].



    I expect he won’t be stealin’ many ideas from the Encyclopedia Sevconica.

  12. pintaguinness on

    There’s a story about Bobby Murdoch from his Boro days. As we all know Bobby was a fantastic passer of the ball.



    In a training match Bobby had the ball and the left winger was screeming down the touchline, pointing in front of himself shouting “Put it there Bobby, put it there!”



    To which Bobby replied



    “Valve side up?”

  13. Sorry to hear the news about Danny coming from the club, but relieved that the attack is being described as minor.



    Get well soon.

  14. !!Bada Bing!! on

    Embdae switched line rental/broadband fae Sky to BT ?If so,any difference? Ta

  15. 12 caps!!



    A joke!



    Jock Stein, Helenio Herrera and Bobby Charlton obviously didny know anything about football.

  16. minx1888 praying to Wee Oscar on

    BadaBing – not been on much since Saturday, haven’t forgotten our conversation. Thank you! You know we will be in touch :-)

  17. Cricket is 3.33333333 times the game that baseball is, although in baseball there are 9 innings, generally in test cricket there are 2 innings. In Cricket you run from base to base, in baseball you run from base to base to base to base. In cricket even the dew is a major influence on the outcome.



    I like cricket, for me, baseball is rounders on commercial steroids.

  18. !!Bada Bing!! on

    minx1888- no bother,Chris has my email, hope we can do something that might help.HH

  19. sannabhoy and 2000 kids say hail hail to pablo’s family



    14:43 on 15 May, 2014





    Cheers mate, saw that one.



    Someone on here said theres a video with sammi holding jay and doing an interview at same time. Saying jay was his friend and an inspiration.



    Jay loves the big man.. Cant blame him. Fair play to sammi and lenny.

  20. The Battered Bunnet on




    BT owns the exchange, while everyone else ‘unbundles’ from it. BT upgrade their exchanges periodically, while the resellers (like Sky) don’t tend to bother.



    BT therefore is always best for copper.



    Check virgin though for fibre, which is an excellent option, getting superfast in some areas. All depends on whether they’ve put the cable down your street. If they have, you’re in.



    Ask BT to confirm when you’ll have a ‘fibre to the box’ option, they call it Infinity. That’ll give you 20-60mbs, which is so fast, you get the racing results before the first horse is past the post.

  21. ‘gg/ Jude 2005



    Here’s a great place for a ‘beer break’.



    There’s a bar at the end of the display with 7or 8 of the best on draught.



    I think I’m going to have to head out for a couple after seeing this!




  22. While he did win the Scottish Cup in 1995 – Celtic’s first trophy in six years – a league title eluded him.



    * I get really upset when I read this, that and a dieing Eddie Thomson being denied a cup final win against that durty shower of cheatin bassas.

  23. GG



    at 14.32



    Did Ye Know this?



    “Take Me out to the Ball Game”..



    The Song…which is Known as the Baseball Anthem.. n Traditionally Played During the “Seventh Inning Stretch”.. at Baseball Games…



    Wiz written by a Man.. Jack Norworth.



    Who Had NEVER watched a BaseBall Game ..IN HIS LIFE!






    In the Song.. The Words are Being Sung by



    A WUMMAN!… tae her Boyfriend.



    An Irish Lass… By the Name o’



    KATIE CASEY!( Great Name.. Huh?)



    Noo ye Know.






  24. philbhoy



    14:45 on 15 May, 2014


    Jackie Charlton!



    I shouldn’t post when I’m spitting feathers!!!!!





    Should’ve plucked the chicken b4 putting it in the freezer.

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