The early years of a new business are risky. It doesn’t matter if you have the best product or service, or the potential to rule the world, it’s critically important you don’t run out of cash.
The Rangers Football Club ran at a cash deficit from their first month’s trading. Within six months of starting business they undertook an enormously successful share issue (going public as Rangers International PLC), raising in the region of £22m, but they continued to spend more than they earned. On Saturday, the BBC reported a club source confirmed they were 48 hours from running out of money.
For a moment, put aside who owns Rangers International (RIPLC), sits on its board, owns its retail rights or has security over its assets. In any normal run of business these things are important, but right now, for RIPLC, they are secondary. The most important issue in this company is paying its creditors.
They can either pay their bills, or they can’t. If they could pay their bills, they would have no problems with predator-shareholders and the company could accommodate the aspirations of all stakeholders – including fans.
If the company cannot pay its bills it will not meet the aspirations of any stakeholders. It will either go out of business, or it will attract an investor who is prepared to pay creditors, and in return extract assets or some other compensation.
The pain of Dave King and his legions of cohorts in ‘restoring Rangers’ and preventing Celtic from accumulating 10, 20 or 30-in-a-row is tangible, but there was no easy fix. Rangers International should have been urged by all of these voices to cut costs to match income, pay their bills and ensure that Newco, unlike the original Rangers FC, would never be out of pocket and vulnerable to the most aggressive carpetbagger.
Instead, all we heard about was the Restoration of Rangers, no matter the cost. Living as modest also-rans, paying their bills while hoping to win the odd cup and avoiding an absolute hammering at Celtic Park a couple of times a season, was simply unacceptable when pitted against the alternative – burning cash like there’s no tomorrow and hoping something miraculous would turn up. It was madness.
Mike Ashley has fed the junkie-club a couple of million, which might be enough to see it through Christmas but it’ll need another, larger, hit, before long. Attempts by King or any other wealthy fans to intimidate the Easdales, or Ashley, to capitulate, will fail, again.
The club does not have the money to pay its creditors until season ticket renewal money arrives, but it has more assets, specifically the stadium and Murray Park, which can be sold or secured. In return for this latest loan, Ashley got control of the boardroom. This will allow him and his allies to dictate the terms of the next funding arrangement.
Those wondering how he will increase his shareholding in Rangers International, in conflict with his ownership of Newcastle United, are missing the point. He doesn’t need to own Rangers International, all he needs to do is own the stadium – at an onerous rent, and own the merchandising and image rights.
Like Sir Davie Murray before him, he might even fancy owning the IT provision, travel, stadium advertising and catering (yes, I know that’s already gone) at Ibrox. Murray’s companies used to take close to £4m a year out of Rangers – and they thanked him for the honour.
Much of the above could be outsourced to Newcastle, where all ‘customer contact’ could be administered from. He could even subcontract the manager, coaches, scouts and the guys who puts the cones out from Newcastle. All of which would mean that in the event of a commercial trauma, he holds all the contracts necessary to start afresh.
Ashely doesn’t need to own another ounce of Rangers International, in fact, after he has secured the stadium etc. on a long and glorious lease, he will be pretty much finished with the hollowed-out runt of a club.
Similarly, those who suggest Ashley’s loan is a sign that he will not allow the club to fail are missing the point. If he owns or controls the stadium, IP, client databases, coaches or whatever else, he controls what happens AFTER a liquidation.
Right now Ashley, and his collaborators remaining on the board, have to pay those onerous contracts we heard so much about, while they own less than 50% of the shares. I doubt Ashley has paid onerous terms in his life. Liquidation would allow him and his pals to start afresh, stop paying the last bunch of spivs and keep the money for themselves.
In practically every literary portrayal of hubris, the protagonist has a moment of self-awareness. It as though literature doesn’t work, it’s not credible, without a fleeting moment of clarity. No one, it seems, carries the same stupid world view throughout a complete novel.
Literature has failed to prepare us for the most predicted self-harming on the planet.
Remember to order Caesar & The Assassin, signed by Billy McNeill and David Hay, more here. To confirm a note on Billy’s nickname. While it was acquired from Cesar Romero, Billy prefers “Caesar”, which was how the name was always spelled during his playing days.
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burghbhoy
21:10 on 27 October, 2014
So the Sevco are top story on Sky Sports news.
Totally hunbelievable .
Cannot understand why they merit such attention.
Ask Paul67, he writes enough about them (another header today on CQN), easier I suppose than putting our custodians under the microscope!
P.s not a dig at you burghbhoy just thought there was a bit of irony in what you said.
HailHail
Celtic Tom
I like a wee bit irony bud!!
HH
Irony
the minx is yer best bet..
When the hell are we going to have the annual poppy debate? Nearly November ridiculous!
Good seeing Johansen rattle that wee rat Hamill a couple of times on Sunday, he/ we need a wee bit more of that sometimes. Lasley next please.
Ah well daughter no.2 now on her way to visit the Aus Bhoys and Ghirls :-)
BRTH, they were all at SIMBA night last night
Hail Hail
Cowiebhoy I hope all goes well for your ghirl in the land down under.
HH
KTF
UTLR
BMCUW – Looking forward to seeing you…. without the iron!!!
All very witty today bhoys with my pressie! I showed my son the comments earlier safe to say he now thinks he did the right thing!…… Worst part his he got his girlfirends Mother to wrap it for me!!!! Och well at least she knows what to expect in the future!
I won’t mention the other comments further to HT’s post last night.. you lot have said plenty :-) And he promises me the Iron was nothing to do with him!
brogan rogan trevino and hogan supports oscar knox, mackenzie furniss and anyone else who fights neuroblastoma
21:32 on 27 October, 2014
Not possible! In the poetic words of Dylan Thomas:
What will happen to Karagandy?
I will buy their historee,
And pass it on to Arthurlie.
BT,
You might regret that post next time you meet the minx, heard she’s decended from the irish woman from ” the dead rabbits ” in the Gangs of New York.
cowiebhoy
Good luck to your ghirl. Hope you had a brilliant holiday. See you Saturday, same,place, same time. :-))))
Weefra HH praying to Wee Oscar.
Minx
XX :-)
Weefra HH praying to Wee Oscar.
Weefra
Naw it means that we have chalked up more wins against deid clubs or almost deid clubs than any other football team in History.
On another note I note that some punter appears to have been charged with “Extortion”.
Now that is an interesting one.
I suspect that whatever this involves is far different to what many will initially think.
Cowiebhoy
Some very very good looking people at the Simba bash last night ….. and then there was me of course!
brth
The mind boggles with that one. You going on Saturday? If so see ya at the CQN corner if poss. :-)
Weefra HH praying to Wee Oscar.
brth
Could it have anything to do with that film starring Linda Blair, The Extortionist.? :-)
Weefra HH praying to Wee Oscar.
BRT & H
I just tried to research what was interesting or different with regard to the term “extortion” in Scots Law.
I came up with this response, where wheel clamping had been the original query. Not sure if I am any wiser.
“Here’s an excerpt from Sir Gerald Gordon’s “bible” on the Criminal Law in Scotland (3rd Ed. Vol II pp 250-251):
“When can money be lawfully demanded under threat? Lord Thomson indicated in Silverstein (v HMA 1949 JC 160) that to demand money under threat was criminal unless the threat used was regarded as legitimate. This is to some extent circular- threats are criminal unless they are legitimate- but it serves to emphasise that the use of threats to obtain money is generally criminal, and will be so regarded unless it can be shown that in the particular case it was legitimate. Some Scots judges have gone further than this and suggested that any threat by A that unless B pays him money he will act to B’s detriment constitutes the crime of extortion [three cases are referenced here] This, however, goes too far, and it is neccessary to consider in what circumsctnes money can be legitimately demanded under threat. Generally speaking, one may say that if either the threat or demand is in itself illegitimate, there will extortion [emphasis added]; if both are legitimate in themselves the use of the threat to enforce the demand may not be criminal, provided that the threat and the demand are linked in a way recognised by law as appropriate….it is not extortion to threaten to sue for a due debt if it is not paid.
…
Legal Process. Legal Process is a recognised form of pressure, but there are circumstances in which a threat by A to sue B may amount to extortion. It is suggested that it is extortion for A to threaten to sue B for a non-existent debt unless B pays £x, whether or not A is entitled to £x from B [emphasis added]. A threat of legal process is legitimate only where the threatened action is directly related to a legitimate demand.”
It appears that it is also important to establish that the Banks knew that their demands were extortionate.
In view of the fact that English registered Banking institutions are making demands for money against persons domiciled in Scotland, and Scottish registered Institutions are making threat from Scotland against individual in all parts of the UK, in respect of unlawful (or illegitimate) charges, I would argue that these action falls within the definition of the crime of extortion in Scotland, provided by Sir Gerald Gordon and are prosecutable as criminal acts under the Common Law.
All we need to do now is find a willing complainer and persuade the Lord Advocate in Scotland that the Banks are committing extortion, and that it is in the public interesticon to prosecute them.”
MT
Hope all went well for Sean today, sure it will have
Weefra, Saturday 2.30 gathering, what’s not to like :-)
Hail Hail
AVQN will be in meltdown tonight. Villa are gash! Cleverley isn’t so clever either. A very average player.
cowiebhoy
:-)))
Weefra HH praying to Wee Oscar.
sftb
Ffs sorry I mentioned it. Hahahahaha.
Weefra HH praying to Wee Oscar.
Any word from Celtic Park on the Living Wage????
Dexter
This is the latest
http://www.youtube.com/watch?v=rNVcSIZyBuE
Apparently Pedro’s living wage is great…….
Celtic
TheTerminatorOfDeidClubsCSC
The world’s a better place for all of us without either of them.
Goats the world over also breathe a collective sigh of relief.
HH jamesgang
brogan rogan trevino and hogan supports oscar knox, mackenzie furniss and anyone else who fights neuroblastoma
21:52 on 27 October, 2014
‘On another note I note that some punter appears to have been charged with “Extortion”.’
And also “…offences under the Computer Misuse Act and the Communications Act”.
That will be interesting. I guess for that to stick the ” five way agreement” will be one of many key artifacts. There is a good chance this would be dropped before going to court.
Minx
Just watched yer man in that detective thingy wi the vicar…..
Is there no end to his talents?
Also just bought a range for the new Hoose…… Mrs PC67 disnae know yet that’s her Christmas ( oh and her 50th )…..canny wait for her to start playin wi it :-)
KnowhowtaetreataladyCSC
dexter
If you read the final paragraph in the AGM notes, item 12, you will get the boards view
Investors in People, don’t you know
Hail Hail
BBC report that police Scotland are investigating leaks at ibrox
That will teach them for employing plumbers who ain’t in the lodge … Can’t hold their water
Bada bing, with you on Stefan having a few digs at that git, Hammill.
Hammill had a praise the lord moment when Stefan was booked by jumping to his feet when the card was produced as Lasley did when Stokesy was red carded last season for him giving Lasley a well deserved clattering.
‘Good honest pros’ (puke) like Lasley, Frazer Wright, Richie Foran & Jamie Hamill are one of the reasons Scottish football is a mess.
Pedro67
You should be on the stage.
There’s one leaving in an hour :-)
CowboyJokeCSC
Cowiebhoy
22:10 on
27 October, 2014
dexter
If you read the final paragraph in the AGM notes, item 12, you will get the boards view
Investors in People, don’t you know
Hail Hail
___________
“Investors in People”- the irony, oh the irony….
prestonpans bhoys
22:09 on 27 October, 2014
Apparently Pedro’s living wage is great…….
_______
Seems like it, he’s just bought a new house and a range for his missus.
TBJ says Wee Oscar Knox is in heaven with the angels
22:13 on
27 October, 2014
BBC report that police Scotland are investigating leaks at ibrox
I blame Max Boyce
Cowiebhoy
I know it’ll be a worry seeing one of your children departing these shores, however, I’ve no doubt you’ll have given Laura the gifts and strength to cope.
Right off to bed, on a virtual course this week from Germany and need to get my single brain cell into gear for 8 2morra morning :(
sipsini
Very quick J!! :-)
Weefra
I have a charity committee meeting at 1pm at the park on Saturday — you know where you threaten people with the zip wire trip from the roof of Celtic Park to the opposite corner?
I did suggest that we should have a mass shaving of heads but many told me to get stuffed — particularly the women.
But i might make the corner depending on how we do for time.
There are a couple of special guests coming for half time on Saturday and hopefully I can say more about that tomorrow or whenever pravda approve.
SFTB
A the diminutive Sheriff Gordon – he is still alive and well. I saw him having lunch in town not so long ago.
He once gave a direction to a Jury after I had just finished addressing them. “…….. now can I advise you to ignore just about 90% of what Mr McGinley had to say in his speech as most of it was wholly irrelevant…….”
Took them 8 minutes to acquit my client though!
Anyway, extortion…….
The key here is the demanding of money or money’s worth accompanied by an appropriate threat of either violence or some other harmful event.
I was asked earlier on by someone if I thought this was something to do with RTC or Charlotte Fakes.
In my opinion it has to do with neither as to my knowledge neither of those parties acted for personal gain nor demanded any type of money or financial enhancement.
Further, they did not threaten to publish unless this that and the next happened….. they just published.
So, I don’t think it has to do with them and if I was guessing I would think this was all to do with someone far closer to the Rangers camp than not.
Also, I would not be surprised if these so called charges stopped at the Fiscal’s office. It is one thing for the Police to report an alleged crime to the PF’s office and another for the fiscal to determine that there is enough to proceed with court proceedings.
With this type of crime it is not unusual for the Police to think that they have sufficient evidence of a crime, but for the Fiscal’s office to disagree entirely.
However, I know no details obviously but it is an interesting one to watch.