I got it wrong on Malky MacKay. In August I wrote, “Malky’s unforgivable sin is not racism, homophobia or anti-Semitism, these matters are often overlooked as ‘banter’, after all. He’ll not get another job because he blew millions on players who were useless to Cardiff. That’s the only kind of offence football really tales notice of.”
Then up stepped Dave Whelan, a man who is widely respected in the sports retail and football, largely for not being Mike Ashley, but who has watched his club slip from the Premier League and now sit in a relegation spot in the Championship.
Football is harsh enough without clubs creating their own distractions. Wigan and Malky are unlikely to prosper.
So Craig Whyte faces up to four weeks in jail if/when he is arrested. You have to wonder what his police interviews will reveal. Craig doesn’t strike me as someone to take a fall for anyone.
Redundancies are sometimes necessary for a company losing money and without the resources to pay bills, but Newco Rangers cutting the payroll by 10, none of them from the well paid football department, is pointless tokenism. Savings made will keep the lights on for only a few days more, so why do it?
I have some sympathy for their new management. They need to make significant cuts into football costs, but those costs are contracted to the end of the season, or beyond, these cuts are perhaps a gesture towards what’s ahead.
Management have a problem, how do they meet commitments to creditors and protect shareholder value? No bank has ever extended credit to this club, and I suspect HMRC have them on a short leash. There will be some trade creditors, but they are likely to be of the face painter variety. By far the biggest creditor, and therefore most influential after an insolvency event, is Mike Ashley. He would be in a position to appoint an administrator, and to approve any settlement.
Dave King continues to play an important role, encouraging fans not to support or spend with the club. I fully endorse his views.
King still thinks he is playing poker but his hand has been called and we all know he’s all out of aces. His rantings are not part of a coherent plan. His calls could precipitate the end, but he has no way of transforming this into a new dawn.
Remember to keep an eye on the long-term fundamentals, you cannot operate a large football club with the size of Newco’s infrastructure without regular Champions League income. Nothing that has happened in the last three years has changed this.
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MWD is an exponent of the Maths pun.
He’s also a bit of a baker.
I hear he’s entered into a week long Pi baking competition.
He’ll be trying to bake 22/7
Nat Know
It’s the result of working in Factor Tree’s all my life.
MWD said AYE
I wish Malky all the best at Wigan. Good honest player in his day, suffered in the chaos of Cardiff. As I commented yesterday Dave Whelan is one of select few Chairman who seems to have an independant mind.
Went out with a Maths student… Very disappointed when she showed me her explicit function…..
If an organisation has an annual payroll cost of £24M, split evenly between upper rate and lower rate tax payers, every month it will owe HMRC something in the order of £1.1M in deductions and NIC for the previous month’s wages.
Additionally, VAT at 20% is charged and collected on every sales transaction.
Thus, such a company, even if ‘current’ with HMRC, has as a minimum one month’s liability to HMRC, which in the example would average out at around £1.5M.
It’s because the HMRC liability is so significant – exceeding a month’s net payroll – that companies are often tempted to allow themselves to go into arrears with HMRC in times of cash shortage.
It’s also a killer.
Phyllis..,
We just don’t know how much HMRC are into them for, it’s all well and good taking MA’s publicised loans but HMRC normally work on a year behind so if administration was required then we would see all the creditors line up with their unpaid invoices, all I’m saying is don’t trust the SMSM it’s only their published figures we are aware of.
Maths puns are the first sine of madness.
When the Jambo’s were in financial chaos Romanov paid his admin staff in Hearts club shop vouchers. People had to punt them on to fans to get the cash. I knew a few Jambo’s who took them off the staff’s hans to help them get money to feed their families. It was a disgrace. Not sure if Ashley has this sort of scheme in mind or if he has the power to do something like this.
LB
Livibhoy
Is that gen up?
The Battered Bunnet
Yep, paid his bank staff the same way.
Few punters in my work took vouchers from his bank staff.
LB
LiviBhoy
Let them eat Kappa?
Apologies in advance if this is obvious stuff to those of you who understand accounts. I’m just an engineer so the whole thing baffles me.
Anyway…I don’t understand the uncertainty over who actually owns Ibrox and Murray Park ( remember John Brown’s “Show us ra deeds” rant?). The condition in Brian Kennedy’s loan offer where they can’t offer security over Murray Park kind of highlights it.
I know Rangers’ accounts haven’t been published yet but surely last year’s would have listed Ibrox and Murray Park as assets if they were owned by RIFC/TRFC/Sevco. If they didn’t own the assets how could the audited accounts list them? And if they weren’t listed as assets why weren’t the MSM and “internet bampots” alike all over it?
Again if these are stupid questions please accept the apology of a befuddled old engineer.
Off oot for a free lunch .
Binomial CSC -way down south .
Italiabhoy
Agreed re MacLeod. Surprised he didn’t get on for the last 20 seconds so he could get billed as a Scotland international.
There is another scenario where security would be hard to achieve.
If another party already has security over the asset and would count as 1st ranked in any additional security arrangement making it ‘unattractive’. Ownership not required.
HH
Just read the interview in the mail with lenny..good read..
oldtim
a swally in the valley is a no for me tomorrow.
Better idea than those maths jokes..
i can’t take anything away from them…
BT
more like you have nothing to ADD :-)
MWD said AYE
BURNING BUSH…..hasnt CW still got a court case going with thems,meaning they cant offer MURRAY PARK as security incase CW.wins the case….i think….
burning_bush-good points mate,a lot of facts conveniently forgotten,surprised our intrepid Laptop Loyal weren’t all over it………….:0
Glass2/3s @1431
I think you’ve got to ask why he wasn’t used on Tuesday?
I don’t buy into this whole big mcleod capping scandal.
HH.
Burning Bush
The major controversy is the legitimacy of the sale of the assets from D&P to Sevco Scotland, which, it is claimed, breached the ‘irrevocable’ undertaking given by D&P to sell them to the unrelated entity Sevco 5088.
RIFC has been served with notice of intent to take court action on the matter by Worthington Group, who claim to have title and standing.
Hence, since the ownership of the assets – which includes the RFC intellectual properties btw – is disputed, any security over them is unreliable.
The car park and Edmiston House were bought by Sevco Scotland from Murray Group subsequently, and they are not encumbered in this way. Accordingly, RIFC are able to offer, and have provided, these assets as security for loans.
Kennedy is, IMO, being rather cute in drawing attention to these facts without stating them explicitly.
It is inevitable that, whether Worthington’s legal action is formally commenced, the Liquidators of RFC plc will be examining the legality of the sale by D&P.
What happens thereafter is anyone’s guess, but it is imperative for all parties – Shareholders, Liquidators, SFA etc – that legal clarity is obtained, and I expect this will be sought in due course.
In the meantime, no creditor can have confidence that any security over these assets is valid, and hence, no security over them can be offered.
Similarly, with the RFC intellectual properties, which were sold under the same disputed transaction, no one can have any confidence that the current team playing at the stadium has the legal right to call itself ‘Rangers’.
It’s all so very messy…
The rags were telling us last week MacLeod ‘could have chosen to play for England,ahead of Scotland….’
#fleckindinho
Which, btw, may cast a different light on PL’s comments last year about Rory Bremner pretending to be Tony Blair.
Sevco and Newcastle have previous when it comes to dodgy transfers………..could it happen again, to keep the lights on, or will MA act on the feedback from his ‘moles’ to close the place and start again? With today’s metal prices, the gates will be worth something melted down!
Bada,
Mcleod could very well be the next John fleck :)
John Fleck is available again for football after his stint at ESA piloting Philae onto P67.
P67 and his family were quite surprised to find a space lander in the back garden last week, pushed hard up against the garage wall.
The Battered Bunnet
15:07 on 20 November, 2014
John Fleck is available again for football after his stint at ESA piloting Philae onto P67.
P67 and his family were quite surprised to find a space lander in the back garden last week, pushed hard up against the garage wall.
——————————————————————–
Hope he was wearing suitable non-offensive attire!
TTB 14.49
As I look over a swelling Med sea I’m reminded that if ever I found myself in a boat negotiating a rising sea I would want your steady hand on the tiller.
I might even put up with that mynha bird.
Oh aye. The Civil Guardia power boat has just powered out of marina heading for somewhere uncivil. Not a hun free mountain for sure.
Steady on old boy!
John Fleck, the wonderkid, the new Messi, Scotland’s great hope. Where is he now?
Extensive research (well soccerbase,com) has uncovered a John Fleck playing in the third tier of English football with Coventry City This Fleck has made a total of 19 appearances this season scoring 0 goals. Last season he managed 49 appearances scoring the grand total of 1 goal.
It can’t be the same player surely???
The Battered Bunnet
14:49 on 20 November, 2014
Burning Bush
The major controversy is the legitimacy of the sale of the assets from D&P to Sevco Scotland, which, it is claimed, breached the ‘irrevocable’ undertaking given by D&P to sell them to the unrelated entity Sevco 5088.
RIFC has been served with notice of intent to take court action on the matter by Worthington Group, who claim to have title and standing.
Hence, since the ownership of the assets – which includes the RFC intellectual properties btw – is disputed, any security over them is unreliable.
The car park and Edmiston House were bought by Sevco Scotland from Murray Group subsequently, and they are not encumbered in this way. Accordingly, RIFC are able to offer, and have provided, these assets as security for loans.
Kennedy is, IMO, being rather cute in drawing attention to these facts without stating them explicitly.
It is inevitable that, whether Worthington’s legal action is formally commenced, the Liquidators of RFC plc will be examining the legality of the sale by D&P.
What happens thereafter is anyone’s guess, but it is imperative for all parties – Shareholders, Liquidators, SFA etc – that legal clarity is obtained, and I expect this will be sought in due course.
In the meantime, no creditor can have confidence that any security over these assets is valid, and hence, no security over them can be offered.
Similarly, with the RFC intellectual properties, which were sold under the same disputed transaction, no one can have any confidence that the current team playing at the stadium has the legal right to call itself ‘Rangers’.
It’s all so very messy…
————————————————————-
Indeed it is messy – and all you’ve said will surely happen in time. But I believe Burning Bush’s original comment raises a point that is more pressing – if there is uncertainy over the ownership of assets like the stadium, how can the accounts account for them on the balance sheet? Do the accountants or auditors not require ownership of those assets to be demonstrated in some material way?
Gordon_J
To add to your extensive John Fleck research, from wikipedia:
On 2 August 2009 it was revealed that Fleck had been dropped from the Rangers first-team after a training ground bust-up involving a bucket of chicken, with the then assistant manager Ally McCoist.
The Battered Bunnet
Thanks, my head hurts a wee bit, but thanks.
I had forgotten about Worthington joining in the circus. I did understand the sale from D&P to Sevco was disputed and that’s why they can’t use Ibrox and Murray Park as security for loans.
But, and I’m sorry to harp on about this one point, did RIFC or TRFC or some other clumpany entity ever claim to actually own Ibrox and Murray Park in a set of audited accounts? The reason this is bugging me is that surely the accountants would need to see proof of ownership in order to list them as assets. In my ignorance of such matters I can only think of deeds as being sufficient proof of ownership.
It would be hilarious if it turned out this incarnation doesn’t actually own Ibrox etc and they don’t have the rights to call themselves Rangers. Kind of skelps the arse of the “same club” myth doesn’t it?
CQN Book Club
Starting reading Andre Agassi’s book last night. Got about 4 chapters in before I realised it was after midnight.
A fascinating read. The punishment he put his body through would put footballers to shame. In his final US Open he had to sleep on the floor such was the pain he was in with his back. It took him a while to actually function each day. He played Baghaditis in what he thought would be his final match as he didn;t think his body could take anymore. He went two sets up and ended up playing a 5 setter. Both players were dead on their feet and Aggasi managed to find the strength to win the match. Both players collapsed in the locker room and were carried onto beds next to each other. Their respective teams worked on them and made them confortable and switched the TV onto the highlights and the players held out a hand and held each other in a sort of embrace across the beds as they watched their titanic battle again on TV. An incredible gripping read. Aggassi then takes the story back to his childhood where his Iranian father would make him hit at least 2,500 balls a day from the age of 9 from a ball dispensing machine he built himself. That is almost 1 million balls a year. His father thought that any kid hitting that many balls from a machine at 9 would be invincible. Agassi hated tennis always has done. He was drove on though not to lose. Won;t give too much more away but would thoroughly reccomend it. A fascinating story of one of the all time tennis greats.
Final analysis to come once I have finished it.
LB
Natknow – precisely my point and the source of my confusion.
Nobody messes with allys bargain bucket!!!
nothing without fans,
What happened? Did young Fleck have the cheek to ask for a piece from Super Sally’s mid morning family bucket snack?