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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Soal
After watching guy Martin : speed last night … I think he must be welsh too as he had problems with leaks too
HT
did I detect a wee bit of “iron”y there :-)
On a serious note, are there multiple collection points on Saturday?
And is there a linky thing to tell us do’s an don’ts regarding stuff to bring.
PC67
HT
Real strange hoose the night
Whife, dug and me
Nae Ghirls :-)
Hail Hail
Oh meant to say
How much is minx wanting for the iron :-)
Need to do my own now
Hail Hail
Sipsini
You’ll get me lynched……..
Different Pedro ffs :-)
Just thinking if we had all the CQNS in a bar at one time
It would make Boardwalk Empire look like Loose Women
But what a laugh it would be
Brnobhoy
Right,
Having been oot at the Simba doo last night I am away to the pub for the Monday night chat.
Happy Birthday to the Minx and happy Ironing.
I once bought my wife a drum and a banjo for her Christmas………
This might explain why we now live in separate houses and why I am away to the pub on a Monday night.
I have the drum and the banjo somewhere right enough……….
That lead article is missing SFA….
Minxy
I just wondered if it was a replacement iron after the original was thrown out the windae after HT lost at 5s last week. :-)
HH
CRC
Pedro67
Here ye go mate.
@TheCelticTrust: Please support the Foodbank collection on Saturday, here’s a list of the most wanted items and the drop off points http://t.co/e2XHzsHkiq
Dallas-these thugs need to be dealt with in a ‘professional’ manner, we are too slow and weak with their type.I would play Arthur Shelby fae Peaky Blinders to sort them out ….;)
Hamiltontim
22:17 on 27 October, 2014
I am sure he has.
Nicely put my friend
HH
CRC
Cowiebhoy thanks for asking mate, unfortunately he goes to trial on 28th November.
HH
KTF
UTLR
HT
Cheers.
cowiebhoy,
We moan when they’re doing our heads in but miss them when they’re away :(( HH
CRC – If it meant he would actually pick up an iron I would be delighted if he lost every week!
Cowiebhoy – Wish Laura all the very best from all of us.
Pedro67 – I hope you haven’t just spoiled HT’s Christmas pressie for me :-)
MT,
That is bang out of order.
I hope it will all be put to rest then, feel for you and your family. HH
minx1888 praying to Wee Oscar
Use the iron on HT wrinkles
XX
celticrollercoaster supporting shay,our bhoy wonder along the way
22:26 on 27 October, 2014
Minxy
I just wondered if it was a replacement iron after the original was thrown out the windae after HT lost at 5s last week. :-)
HH
CRC
——-
HT doesn’t lose at 5s.
He just sometimes comes a close 2nd to you!!
Grrrrr!CSC
HH jamesgang
SOAL
Pot…..iron…..black.
Jamesgang
The teams for this week have just been sent out. Let me just say, I’m quietly confident I won’t be throwing any irons come Thursday :-)
Hamiltontim
22:41 on 27 October, 2014
Oh, that’s a confident shout.
Good luck but I hope your team loses by 2 again :-)
HH
CRC
Mighty Tim
bloody disgrace…
keep the faith mate..
New p1ss take of polis on BBC Scotland
Had mrs jamesgang thinking it was a documentary till they had a deid old wifie apparently sitting in a chair!!!!
Is this real? Says she…..!!!!
HH jamesgang
Embdy else gettin board wi all this iron talk…..time we folded it eh ?
HT,
Jeeso, the bullets are fair flying your way tonight:)
HT
Thought you and boaby might like this……….lll
@Cheeky_Celt88: Haha as if !! http://t.co/FAKbdIR2tM
Weefra HH praying to Wee Oscar.
sipsini
22:46 on 27 October, 2014
Aye, but they’re nice and soft bullets for a change :-)
HH
CRC
Soal
HT is so smooth he looks as though he’s been ironed already.
See him on telly versus Dingwall United? 6 million pixels on my telly and not a wrinkle in sight!!!
HH jamesgang
jamesgang
Minx and HT last night
http://www.imdb.com/media/rm3230518272/tt0083866?ref_=ttmi_mi_all_sf_1
Sipsini
At least tonight it’s good natured :-)
Nerf gun bullets!!!’
My kind of CQN warfare!!!
Anyway he’s the dude who minx adores so the Bhoy’s a made Mhan!
HH jamesgang
Nice we single up on QPR. Easy money in my view. Unlike all the uneasy money normally. Good weekend though on the betting for a change
Need to think how I re-invest for tomorrow
HH
CRC
Soal
http://www.instyle.com/instyle/mobile/package/general/photos/1,,20255275_20460936_20903794,00.html
HH jamesgang
minx1888
Happy birthday! You still look as young as the lass in the old banner protest.
Here’s a wee tip for HT on how to make use of the ‘iron’ if hungry:
http://youtu.be/dYi4CDe8gHo
:-)
WeeFra
Timing my friend, I’d just seen that on Twitter :-)
SOAL
I’m off in a huff….to ride my bike to the moon.
HT
Nae comment mucker
LOVE
Jamesgang
Nerf gun, my boy is a hit man with them
I have bought about 200 bullets in the last year
I have none left, but me 2 dogs look a wee bit bigger!!!
Brnobhoy
jamesgang – you almost redeemed yourself with that comment…. almost but not quite!!
SOAL and WeeFra :-)
MightyTim – gutted for your bhoy. Please God justice will prevail. Tell him we are thinking of him.