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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NY tims
After watching El Classico at the weekend and seeing the fans enjoying the match in their shirt sleeves whilst basking in the 23© heat it actually makes Cetic Park’s recent attendances look more than reasonable considering the weather we have to endure whilst watching our team.
A Ceiler Gonof Rust
10:02 on 28 October, 2014
I suggest you find the information yourself then.
The vote was on 14 December 2011.
I have to say I’m surprised that you weren’t aware that it was only the SNP that voted for the legislation.
Morning all.
Yet another dark, dreich day.
I wonder if the arrest of the person who has alledgedly been leaking secret material from Ibrox might mean that the likes of the SFA’s connivance in helping the undead might finally see the light of day. Presumably, unless the case is held in camera, said material will have to aired at the trial. It is not a matter of national security. Maybe that is what those who now control the undead want, of course.
marspapa
Angiodema is no laughing matter mate. Have suffered from it for the last 13 years. It makes you look as if you’ve just gone 15 rounds with Muhammad Ali.
Someone spoke about players we could lose and its scary
Guidetti could bang load in and be offered 50/60k easily from english team since hes on a free.. Doubt we will offer more than 25k a week.
Deneymear also on loan .. City could decent to loan him elsewhere to play against better teams.. Spain etc
Brown and commons… Could very well be joe ledleys and sammi– we want you to stay but for 10/15k a week less.
Very much glass empty opinion obviously of the situation but its not overly unlikely the above will happen…
Craig gordon could even decide he wants another crack at the prem if he keeps up his excellant displays. He would walk back into that sunderland team at the minute.
Ernie, I preferred you when you could laugh at yourself:
http://www.celticquicknews.co.uk/?p=16042&cpage=25#comment-2307249
Your comments in the last few days have been pretty low even by your standards.
Ernie, thanks for your suggestion to me to search for your broken link. Here’s a link that will work to the list of 244 labor murderers I posted. Is your MP on the list. Makes you proud, doesn’t it Ernie. You must be beaming with it.
http://www.britisharmykillings.org.uk/page/126/MPs-who-voted-for-war-with-Iraq
TOSB
I googled that earlier. Jee-zoh,I feel for you guys.
Always thankful for my health,and the first to admit I’m a lucky guy,considering my lifestyle.
Just logged on and what do I see “Ernie Lynch” posting . Enough to make you want to log straight back out but of course the scroll by button is the answer .
quantum
10:28 on 28 October, 2014
Just logged on and what do I see “Ernie Lynch” posting . Enough to make you want to log straight back out but of course the scroll by button is the answer .
####
Scroll on by, but take the trouble to post that that’s what your doing.
Yeah, that makes sense.
proudbhoy
Guidetti wants to play. I can see him staying.
Brown and Commons could decide to sit on the bench at another club and earn a bit more but not much. Worth the risk?
I know a guy at work who knows a mate of Craig Gordon. He wants back in the Scotland team and his kids are settled at school. I do not see Craig Gordon going south again. He has no reason to. He has been down and made his cash.
VVD will go and Denayer may well stay another year. I doubt he will get in the City team yet.
We can remain positive or we can panic about players who are not going anywhere. If players go they are replaced. We have done it before and we will do it again. I see no reason to panic. Whether we like it or not it will be easier to attract players with Sevco in the league because players will want to play in that match and with Hearts or Hibs back up.
LB
Livibhoy – Scepovic looks a player!?
The raw characteristics you look for in a striker procured on the basis of playing the 1 man striker role in order for the cohesion and efficiency of attacks, irrespective of form in my opinion are;
Height – Yes.
Strength – No.
Good in the air – due to lack of strength – not very much.
Pace – No.
Work Rate – No – although this is something that can be developed, the lack of pace can hinder its effectiveness.
Agression – No.
Form is where Prowess and predatory instincts comes in. So far he hasnt shown a great deal although the role of confidence and happiness off the park can never be understated so we must always afford someone enough time to do this before judging.
Ronnie has said recently Scepovic needs to be put on a 6 month aggressive training and strengthening regime.
I dont think Ronnie knew an awful lot about him.
I think Guidetti was a Ronnie signing and Scepovic was plucked from the existing scouting database he was shown and told to pick players such as Tonev from.
Morning Timland from a warm hun free mountain valley.
Can anyone answer a question I have re the hun ?
Ashley has just given them a 2 mill loan, he owns 9% of the shares, yet he now apparently runs the club.
What has happened to Blue Pitch, Margarita Holdings and the Easdales who have over 25% of the shares and the other institutional investors ?
Sumthin just no adding up here !!!
HH
Anyone like football ?
Thiose job losses, surely not in North Britain.
Eyes Wide Open
I would say our new striker is not yet up to speed and is still scoring goals. The mark of a decent player in my opinion. My initial opinion of him was that he was not much better than Griffith’s but I may have been wrong there. He looks a penalty box striker. Griffith’s is a player like Stokes who likes to come from deep but who can also score goals. Griffith’s is more profilic than Stokes in my opinion but Ronny doesn;t seem to fancy him so I have written him off and expect him to go on loan in January probably to Hibernian.
Scepovic like Pukki before him needs to play regulalry before we can make any judgement on him. He has started the last two games and scored 2 goals. I hope both Stefan and Guidetti start again tomorrow and I reckon both will be amongst the goals again. Like I say he looks a player. Let’s see how he gets on going forward.
Helluva lot of negative vibes about this morning.
LB
Morning
Tis a horrible day the day….
Supposed to be heading to the big smoke today for a few beers, will it be drier in the pubs up there…
That OB Act I think it’s here to stay, an absolute cluster of legislation, it can only be tested by being played in court, unfortunately at the expense of some on here.
I’ve told before I got lifted at greyskull for no reason 1987, then arrests were in the high tens, it has changed since, but it now seems a much more direct public policy. SNP orientated? I think it was pushed more from law enforcers than politicians, a hurried piece of legislation to counteract the “Shame game” of which we played no part.
It would be interesting to view figures over the past three years for football related incidents, from both Police Scotland and British Transport Police after all it is all about figures…
Right a better get up
Ayrshire is Green and White
Saint Stivs
10:37 on 28 October, 2014
Thiose job losses, surely not in North Britain.
###
Wouldn’t have happened if people had voted yes, would it?
EWO
Neymar and Messi [ no the height mind you ] fit the desrciption you have just given about Scepovic.
HH
THE EXILED TIM
He keeps the lights on and gets most of the retail money from the shops.
others get the rest of the carcass ticket sales access to “Laundrette”(allegedly) catering, car park money, tv money.
not bad for all involved and enough for an earner for all IMHO of course
micktt
still pouring down in g72 I’m afraid…enjoy your day in g1…
Don’t know Ernue but if it had I know you would be on blaming the vote for it, hypocrite.
I’m scrolling by your desperation too.
MickTT
10:42 on 28 October, 2014
‘SNP orientated? I think it was pushed more from law enforcers than politicians’
###
No.
It was pushed by the SNP.
They were absolutely determined to get the Act passed.
That’s why every single SNP MSP voted for the legislation.
No one else voted for it. Not Labour, not the Tories, not the Lib Dems, not the Green, not the Independents. Only the SNP.
Hoop Doggydog
Celts triumph over resilient Hearts. (PC)
http://www.celticfc.net/news/6961
Till later all
Looking for advice.
Central Glasgow hotel with parking hopefully.
Any recommendations?
Ta
EC67
AnniversarynightoutCSC
Ernie
does the shambles playing out currently not show exactly why Scottish Labour has lost thousands of its traditional voters? (Msp happy to take a wage but not put their head above the parapet.)
What is the answer or the thoughts of the executive within the party.
oh for a decent labour leader in Scotland. 8((
Lefty
I understand that, what I don’t is how he now controls the club, why are the others not ?
HH
leftclicktic
10:45 on 28 October, 2014
That’s rubbish.
He’s going to bankroll them to European glory.
It will be the war chest to end all war chests.
How he’ll do that while holding 9% of the shares in a plc is still to be worked out, but that’s not the point.
He’ll find some way of pouring money in, don’t you worry. Maybe he’ll buy the naming rights for a hundred million or something.
ERNIE LYNCH
Let it go,mate. Regardless of who pushed the agenda,there seems little appetite in Holyrood to repeal it.
That pisses me off more than those who voted for it.
LiviBhoy
10:41 on 28 October, 2014
My concern having seen Scepovic, is he has been scouted from the same failed database that has shown in the recent past it can pick players of all positions bar striker, having recently produced Miku, Lassad, Fridjonsson, Bangura, Balde and Pukki.
THE EXILED TIM
10:44 on 28 October, 2014
You are comparing chalk with cheese, quite literally not just the brand of football his team plays but the environment they are playing in.
Juninho wasnt a bad player when he signed
ernie lynch
10:47 on 28 October, 2014
MickTT
10:42 on 28 October, 2014
‘SNP orientated? I think it was pushed more from law enforcers than politicians’
###
No.
It was pushed by the SNP.
They were absolutely determined to get the Act passed.
That’s why every single SNP MSP voted for the legislation.
No one else voted for it. Not Labour, not the Tories, not the Lib Dems, not the Green, not the Independents. Only the SNP.
##############################
Smash the Green Brigade….!
Ayrshire is Green and White
Eyes Wide Open
You can look at any club and they will sign bad players. The transfer system will not always be a success. It is less notable at bigger clubs. Look at the players signed at some of the EPL sides. They waste millions year on year.
The only argument that can be levelled at our club is that we have an alergy to signing Scottish players from other Scottish clubs and some of those boys can hold their own in the EPL so why can;t they do a job for us?
LB
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
10:53 on 28 October, 2014
The nats have a majority at Holyrood.
The Act will remain in place for as long as that is the case.
Eurochamps
marriott at Anderson and hilton just off m8 have parking facilites .vmhan has stayed in jurys in and parked across in secure parking ..
On this one, Ernie’s spot on.
Jack McConnell’s time as First Minister saw a number of initiatives aimed at addressed the legacy sectarianism in Scotland, including the S74 of the 2003 CJ(S) Act which introduced religious aggravations for offences, a summit of main interest groups, and a football partnership with the SFA.
During Alex Salmond’s first terms, excluding S74, these measures were dropped, and funding for ‘anti-sectarian’ projects was reduced to peppercorn.
Nothing was seen or heard on the topic until March 2011, following the so-called shame game, when the First Minister overnight became publically vexed on the matter, and all manner of stuff was put in train.
This included the “Joint Action Group” involving Police, politicos and ‘the Old Firm’, and the first draft of the widely disdained Offensive Behaviour at Football Act.
Despite clear advice from the Scottish Government’s own Human Rights Commission, and near universal opposition from a wide spectrum of Scottish opinion, the Act was passed in the Parliament.
Every SNP MSP voted in favour, MSPs from every other party voted against.
In parallel, funding for ground level anti-sectarianism projects was increased to respectable levels.
To date, it remains unknown what Salmond wanted to achieve, or what he gained from pushing the Act through.
We will have to wait a while before the researchers at Stirling Uni publish their report on the impact of the act, but some glaring legal contradictions have been thrown up in the meantime.
For example, convictions have been obtained under the act for singing the song “Roll of Honour” at a match. The act provides that such behaviour is an offence at a match, or while travelling to or from it. Simultaneously, the song was released as a single and was a ‘chart hit’, being played on Radio 1 amongst other stations.
For a time it was possible that one could be arrested on the way to or returning from a football match for having the car radio on while this song was being played.
Such an example is by no means isolated. The general consensus amongst legal professionals is that the act is unlawful in large part, and bone headed in conception and execution.
The curious thing is that the government which passed the act was the first in the UK to introduce wider ranging protections for minority groups, notably The Offences (Aggravation by Prejudice) (Scotland) Act 2010.
Set in light of the incidence of wider hate crime, ‘sectarianism’ is a small element of the mix.
Racially aggravated offences in Scotland run at such a rate that some 20% of black or minority ethnic persons have been victim of such a crime in the past 10 years.
Offences aggravated by Presumed sexuality outnumber religious aggravations by 50%.
We don’t talk about this though. It’s uncomfortable for our self image.
We have a problem in Scotland, and the sooner we wake up to it the better.
But Ernie’s right in the first instance.
Gotta fly…a rushed post I’m afraid.
ernie lynch
10:52 on 28 October, 2014
… He’s going to bankroll them to European glory.
…. He’ll find some way of pouring money in
—————————————————–
I doubt it. He can that with Newcastle but chooses not. He sees a chance to screw the new Rangers and will probably be gone before the end of next season.
ERNIE LYNCH
That may well be the case,but the silence from opposition benches is shameful.