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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blantyretim is praying for the Knox family
09:59 on
28 October, 2014
Standard life also to axe 1000 jobs,800 of these jobs will be in Edinburgh.
————–
Your source BT???
https://storify.com/fitzpas/mccoist-backs
Hoopy do
link to daily mail via fbook..
ernie lynch
The Labour Party is a busted flush. No policies, no soul, no leadership. People like you have allowed the careerists to hijack the party from its TU/working class roots.
And you have the cheek to blame the SNP?
You are a bitter, sectarian w-*^”r, blaming everyone but yourselves. Keir Hardie must be spinning in his grave at the likes of you.
YOU have lost the trust of the working class and now you’ve thrown your lot in with big business. Hell mend you.
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 .
:::::::::::
I started to scroll by a couple of months ago.
From experience, I can assure you that your quality of life will improves almost from the outset.
There will be times when you will find yourself reading one of his comments inadvertently but your innate crap-detector will become more sensitive with each passing day.
Be strong, responding is futile.
Thankyou Leftclicktic……Tomorrow could be a difficult fixture Thistle have’nt been conceding too
many goals so I hope we play our strongest team possible and get the win.
blantyretim is praying for the Knox family
11:07 on
28 October, 2014
Hoopy do
link to daily mail via fbook..
—————–
i reckon it isnt an uptodate link
THE Charlie fellow and his 4 signings……the lads brains were always in his feet…..well apart from the arsenal days…..he has come out with some crap over the years trying to praise them……..next he will be saying the spittal crowd are deed….new team, new generation of fans.
Many on here vexed at the prospect of players going out the door in January/Summer transfer windows.
While not happy at the prospect of losing good players I remain sanguine as ultimately it will be their loss long term. No matter who comes and who goes I will remain a Celtic supporter. At this moment I would be more disappointed at losing Guidetti than Virgil. From (and during) the last transfer window Virgil has made no secret of the fact that he wants a move South (to the 2nd best league in the World,after the Scottish Championship). Just like Hooper, Wanyama and Wilson I would shed no tears if he DECIDES to go.
Much better men and players have graced our shirt. Guidetti appears to get us so hopefully he will decide to stay. I know it’s the times that we are in but I’m sick, sore and tired of being used as a “springboard” for the mercenary EPL.
Eurochamps67
stay at one of these
http://www.thearthouseglasgow.co.uk/
http://www.townhousecompany.com/blythswoodsquare/
https://www.malmaison.com/locations/glasgow/?gclid=Cj0KEQjw_byiBRCu9qm5lc28ufgBEiQAWq-ta5OfLTbJrZ8Osb33eVDlkdxqteskDSi8wP7bdPg4_vMaAvXU8P8HAQ
they will all offer parking next to the hotel at discounted rates.
don’t eat at abode
Our friends http://thehonours.co.uk/ will be at the Mal -worth remembering
ernie lynch
10:47 on
28 October, 2014
This is not an argumentative question. Do you think all the no votees were genuinely against it or was some whipping in place to ensure some political mileage?
Put it this way. Knowing it was guaranteed to get pushed through voting against was a win/win. If you agreed with it, it was going through anyway – if it proved unpopular/unworkable you have it documented that you opposed.
Very easy political points for the opposition parties.
It needs repealed.
Tosb 10:15
I start off looking like i’ve been in the ring with Ali , then the allergy kicks lol
Yes your correct in what you say , i got mine 22 years ago and the doc said not to worry it will dissapear as quickly and as mysterially as it arrived , needless to say , about 3/4 hundred eppipens and countless visits to hospital with my throat closing , i still have the bugger , the other parts of the body it reaches well , i could do without the pain but the swelling would come in handy lol ;)
anyhoo mate you’ll know as well as i do , dealing with it brings other problems , my wife and kids have had to endure some hurtfull looks and comments from adults and kids ,
apols for the long post :))
Iki and Quantum
Please add me to the list.
Livibhoy
I have questioned whether we have a policy now of NOT signing players from our rival.
We could cherry pick, but do not.
Why?
Is it so they are allowed to be all THEY can be?
marspapa and TOSB
Feel for you ghuys.
Wee prayer said for you both.
God bless.
BT,
Thanks for the info.
I was looking at Jury’s so have gone for that.
So you get up,look at CQN, someone mentions Van Morrison, half an hour later you’re a couple hundred sovs down.
Expensive this semi retirement lark.
EC67
Hoopy-do
seems like another false allegation via facebook.
Apologies to anyone likd myself taken in by this
I wish Hooper and Wanyama…………………….well actually I don’t wish them anything.
They are out of my life by their own choosing.
C’MON THE CELTS!!!!!!!!!!!!!!!!!!!!!!!!!
ger57
11:07 on 28 October, 2014
I’m not a member of the Labour Party and never have been. I’ve never had any illusions about them (unlike you, apparently).
But even at their worst they’re better than the Tories.
And nationalism is just a reactionary and divisive cul de sac.
Hoopy-do
I have contacted the fb source and advised them that info out of date re Standard Life..
I’m working from home today so expect more p*sh than I normally post.
THE EXILED TIM
I dont think he does have complete control ,they have someone each on board to keep an eye on one another, but IMHO it is a beneficial to all agreement they have(for now).
The Battered Bunnet
11:03 on
28 October, 2014
Salmond’s a populist and a Scotland defender. In the first instance he tries to make sectarianism appear less of a problem than it might really be. Following the ‘shame game’ he’s seen to very quickly do something about it. Remember that majority in Scotland are not active football fans and many perceive the game (in Glasgow esp) to be centered around hatred and bigotry. Which we know it isn’t.
It was a populist move and was probably more than welcomed by a majority across Scotland.
It’s ridiculous though and needs removed from law.
BT
Skies clearing in ML5 ,they will be with you in Blant iiiiir shortly:)))
Cheers leftie
still grey over here, not that I’m going anywhere…8))
EWO
With respect, it’s you who is comparing chalk and cheese.
The boy has come from a set up that plays the same style of footy that Neymar and Messi do.
I have said on here many many times that they along with Xavi and Innesta would struggle in scotland due to the style of football.
This is where the club along with all the others are not doing anything for the good of the game, they are allowing the referees to dictate how the game is played, it should be the other way about.
Our striker jumps with their CB, foul for them, their CB jumps with our striker, foul for them.
HH
Lefty
Sumtin is just not adding up here.
paul along with others have said tat the faceless ones behind the Inst investors are in control, yet 2 mill and 9% buys you control, and more importantly, control if he dicides to pull the plug.
As I said, it’s not adding up.
HH
philbhoy
cheers mate
a wee quickie ….in malta about 98 in a restuarant after the starter my lips and left side of my face balloned up in the space of a fee minutes , the waiter asked if i could face the wall or leave without paying as other diners were being put off !! we left me in tears .
on a site i wss working on in 2000 i wad asked to leave no-one would sit near me incase they caught it . Me i’m lucky , my affliction is’nt permanent .
its the brave people with permanent disfigurements who are subjected to the tants and
disbaraging looks from the fkn arseholes every day ,
btw
hope this does’nt come across as condescending .
Philbhoy@11.25
No pish in that post.
HH
Dearie me, and I can’t blame predictive text.
HH
THE EXILED TIM
11:39 on
28 October, 2014
The faceless one’s aren’t prepared to lose any more money on a failing business. Ashley keeps them afloat until the AGM when they might get another share issue agreed. He was the only realistic option.
I reckon he’s taken a bit of a punt on a share issue not working leaving them in the position of having to swap cash for assets and then he can sit back in control of all the asset streams without actually having to own or control the club.
As you say it almost doesn’t add up that he can wield such power for so little financial input. It highlights how desperate things are.
If (as the Dave King figures suggest) they needed £16M to get to the end of the season. It would suggest they’re back up to costing c£2M/month more than they earn.
All of you, stop arguing about the Offensive Behaviour Act…
Such distractions are ruining the run up to Poppymass for everyone!
(just kidding, I know it is a very relevant topic today in light of MT’s boy’s situation. All the best to the guy!)
weeminger
So, do you reckon that the faceless ones are willing to lose their investment, cos in reality that’s what you are saying ?
HH
its all about opinions, but in terms of Scepovic i think the guys will go no to be a decent signing.
I may be wrong.
I think he has reasonable movement, gets himself in to good positions to score…. and i’ve said before, but whether its the Spl or La Liga Div.2… the guy scored 24 goals last season, which demonstrates if nothing else, he knows where the back of the net is.
It’s ironic that people comment that he isn’t quick and isn’t overly strong…. because you know what…. if he was quick and strong then Celtic would of had to of added a 1 digit in front of the 2.3 digits they paid for him…. i.e 12.3 million, and not the 2 we paid.
Plain and simple
THE EXILED TIM
11:48 on
28 October, 2014
Possibly. I suspect they know they’ll never get their full investment back. The word duped has been widely used in this saga.
However the share price should rise at some point based on being back in the SPL and possibly in Europe at some point. So they might just sit back and let whoever is prepared to put money in do so, and see where it gets them.
That said anybody wishing to fully take over would probably need to pay close to the initial SP. That’s why nobody will.
ruggygman
I agree with that.
I really want him to succeed as surely all the uber fans who ran out and got his name on the back of the shirt deserve to be able to wear their £50 purchase! I’ve seen guys who have splashed out on shirts with Henri Camara on the back in the past – they’ve never been the same since…
weeminger
I get that, but, why would they relinquish control of what happens to ibrox and murray park ?
These people are not in the biz of throwing money away, are they.
Why not just invest the extra 2 mill and sell the lot, that would make them a profit I reckon.
HH
marsapa
Nothing at all condescending in your last post, its something youve experienced and you obviously sympathise with others in the same situation. Unfortunately some people are just so ignorant its beyond belief. I like to think that these morons are in the minority but then again Id like to think I could come on here without an Ernie instigated political argument. What do I know ? All the best mate
HH