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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ernie lynch
Nationalism can be divisive and reactionary, but nations have the right to self determination.
I get from you that British and Irish nationalism is OK but Scottish is not. No matter, the referendum is over and the result was clear cut. You continue to spout venom at the SNP using the OB Act as your main target. I have not heard of one Scottish opposition MSP speak out against the Act, or its interpretation by Police Scotland, for over a year. Neither have I heard a SINGLE Scottish politician speak out against the bigotfests at Ipox “supporting” the armed forces. I am no fan of the SNP, but to target them alone as sectarian is incorrect. All Scottish parties are reluctant to tackle the issue of religious bigotry.
Thunder Road
It’s an interesting point. I agree that we do not want to weaken our league too much. Rangers had a policy in the 90’s of virtually buying up all their rivals best players (as long as they did not have Tim sounding names or Celtic daftness). This weakened the league but ultimately made their route to 9-in-a-row easier. Celtic really have the chance to make life very easy for themselves. I do not want to see us sign players however who will just sit in the stand or on our bench with no hope of playing just to stop them scoring or keeping goals out against us. I suspect the policy is that if they can;t go into our first team then we do not sign them. The more interesting point is that teams like Dundee United have been able through their excellent youth policy and development of players signed on the cheap to get big fees for their players down South. This has allowed United to be debt free. Now Dundee United are in a position to hold onto their players and get what they believe to be top value for them. It puts them in a strong position. Whether Celtic have allowed this to happen without taking advantage of being able to buy their players cheaper than foreign players is a matter of debate. Dundee United will be able to challenge Sevco for players and they certainly won;t be bullied into selling them players like they were in the past by the auld Rangers.
I do think that Celtic are missing out on some decent Scottish talent though. What I guess we are doing is gauging these young Scottish players at other clubs against our own when they face each other at the various youth levels and deciding they are no better than what we have.
If our youth players are in deed better than say Dundee United’s then our policy of blooding them in our team is wrong. Calum McGregor has shown what can happen when you play first team matches. I think we have to loan more of our youngsters out to other clubs who can give our young players first team football. I watched the Edinburgh derby on Sunday and thought McGeouch was one of the best players on the pitch in saying that I am not convinced the Bhoy will make it at Celtic long term.
I think Ronny will get his strategy right once he has time to get his feet under the desk and get his mindset into the job. He is going from a job probably similar to Raith Rovers in stature to a huge club with a very large pool of players and youth players and very high media demands. The team are now starting to look more resilient and we are getting results.
LB
philbhoy
11:29 on 28 October, 2014
I’m working from home today so expect more p*sh than I normally post.
—–
You talking quality, quantity or both???
Joking big fella! You know that I know you are a top Kwality CQN poster Bhoy!
;-)
In other news I’ve ‘scrolled the posts that needed scrolling, ignored others that needed losing’ this morning and saved myself some time and exasperation.
HH jamesgang
should have read marspapa, apologies rendered
The Labour Party are imploding so their activists are venting.
It is only a matter of time before their ultimate humiliation in May.
Jamesgang,
Wizatawee Dougie McLean moment there neebs??:)
THE EXILED TIM
11:58 on
28 October, 2014
As far as I’m aware all these parties paid the full launch price, so their holdings are worth less than 1/3 what they paid. Putting an extra £2M into the pot only makes that worse.
I don’t believe anybody is out there prepared to pay the £3.5-4M at current SP to buy up their controlling stake – and that’s without the additional £2M.
Especially since Ashley has just demonstrated that you can exert influence without having to.
Geordie
‘Twas indeed my Fhriend.
Braw song as the Braw Bhoy on here might say!
HH jamesgang
ger57
“All Scottish parties are reluctant to tackle the issue of religious bigotry.”
Exactly! Remember when there was sectarian employment issues in Scotland, and don’t forget the sectarian signing policy, flaunted and boasted about for years and years, who in any of the political parties raised their head above the parapet to condemn it, none, none whatsoever, and that’s when Labour in Scotland where King, but as you said they ALL share the shame of hiding behind votes.
Jamesgang,
It’s tap drawer so it is.
I think I’ll fire the auld FM cd on in the car at lunch now :)
SNAKE PLISSKEN
I sadly have to agree with you that The Labour Party in Scotland is a mess.
IMO,it began with the death of Donald Dewar. Henry McLeish was a divisive successor inasmuch as he faced opposition from within to his appointment.
Ultimately,he was a weak and poor leader,undone by political pigmies who eventually succeeded him.
The nail in the coffin was the ban on coffin nails in pubs,IMO. A lot of people switched their vote in protest after that. Labour have never recovered.
And with their current MSPs,it is hard to see a way back for them in Holyrood.
During those ten disastrous years,though,their Westminster vote has been largely solid.
I fear even that comfort blanket has gone now.
ger57
11:59 on 28 October, 2014
Married people have the right to get divorced.
They’re not obliged to though.
Ireland was an oppressed nation, Scotland isn’t. It’s a crucial difference.
(That was the point about my comment about Terence MacSwinney dying on hunger strike while Alex Salmond went on the 5:2 diet, that some of the hard of thinking were so anxious to find offensive).
I didn’t introduce the topic of the nats Offensive Behaviour legislation to this thread. It was already being discussed.
The nats don’t miss an opportunity to let us know how every ill that befalls us could have been avoided if only we’d voted yes.
It does them no harm to remind them exactly what they have done in the real world rather than what might have been in their delusional Brigadoon fantasy world.
weeminger
Makes sense.
Thanks
HH
bobby murdoch’s curled-up winklepickers
10:27 on 28 October, 2014
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.
………………………………
BMCUW
Sorry had to go out for a while after I posted. It is a very scary condition and can lead to the onset of Anhylactic Shock. The medics don’t know what causes it in my case as it doesn’t seem to be the result of an allergy. It happens when I’m run down and exhausted. Swollen head, hands, feet. Had a number of emergency visits to hospital but I’m still going strong otherwise.
ernie lynch
11:27 on
28 October, 2014
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.
And Democracy is the tyranny of the majority over the minority. No Labour, No Tory, No Lib Dem will offer independence as a solution, and that’s why I vote for the SNP and I always will. Until someone proposes something better.
Hail Hail.
Hail Hail.
Are the SFA going to allow MA to become de facto leader of rangers despite it being against the rules? Silly question.
BMCUW
If you’re referring to the ban on smoking in public places then you’ll be surprised to have me come back at you tight I pinky health grounds! So far so predictable!
But I’d also come back and say IMHO its impact on labour’s subsequent electoral misfortunes was negligible.
Happy to discuss over a pint indoors or over a fag (yours, not mine!), outdoors!
HH jamesgang
Livibhoy/Thunder Road
I’m also puzzled by this. Sometimes wonder if there is an unofficial agreement not to buy any as it would make the league even more uncompetitive. Be interesting to see if this changes when Sevco come up.
Not be surprised, even!
GlassTwoThirdsFull
I can only assume that our Youths are better than everyone elses. There can always be a player though who can be excellent at a first team level but not so good at youth level and excellent at youth level and struggle at first team level.
LB
Pinky???
Whit???
Purely!!!
Aff oot to get skinnier fingers!!!
laters Timdom
HH jamesgang
JAMESGANG
Not amongst my family and friends,it wasn’t.
It was even pointed out that since around 30% of adults smoked,a new party advocating a repeal of the ban could hold sway.
I know your reasons for support of the ban-obviously. But it alienated a lot of people at the time. And still does.
new article posted.
jamesgang
12:32 on
28 October, 2014
Pinky???
Whit???
exactly what I was thinking when I was reading and trying to think what it could be
Purely never crossed my mind
when your purchasing your thin fingers can you get me thin waist I’ll square you up at the cqn corner Saturday :-)))))))
HH
ernie, When Hamilton Tim posted re it being anniversary of Terence McSwiney’s death after a 74 day hunger strike, your response was “That’s nothing” and went on with an infantile “joke” about Salmond. That is bloody offensive to me, no matter what way you dress it up. There was a time when I rated you as a poster and liked some of your stuff. You are now misusing this Blog to incessantly push your narrow agenda, The trivialisation of McSwiney’s hunger strike & death was the last straw for me. It pains me that you are probably a Celtic Supporter, I would normally do anything I could to help a fellow Supporter but in your case I wouldn’t piss on you, if you were on fire.
Livibhoy
Just a thought, these teams with the mostly home grown boys just don’t seem to cut it when it comes to advancing in Europe at the play offs level, i do get your point, it has no backing when you look at the stats? IMO
livibhoy
10:33 on 28 October, 2014
—
Your thinking what you would do mate.. Not what the average footballer would do.
Guidetti seems like he is enjoying himself but still dont know if thats enough for him to turn down a double the money offer elsewhere.
Brown and commons looking for one last contract… We may push out for brown but i suspect commons is looking at a poor offer .. Partly due to the lawell stragety and also i think ronnie would prefer the wages spent on someone else… Really not sure if kris fits into his plans.
Marspapa
I used to get worried that it would scare my family, particularly my young grandson but they are fantastic. The first time he saw me with it, he was taken aback but came up to me to kiss it better. I used to stay off school when it occurred incase I frightened the weans.
Anyway, apart from that, I’m in rude health:-))
Hail! Hail!
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
There are differences this time.
Their heartlands voted YES. They and their unionist partners cannot combine votes in May, they are all out for themselves.
It is conceivable that Labour could be wiped out of Dundee and that they could lose seats in the central belt to the SNP or any other YES alliance candidates.
The only way we will now get change in Scotland is by destroying Labour because there is no Scottish labour, we know what we all suspected if we had our eyes open that they are a rank and file branch office taking orders on things like the Bedroom tax.
The sad thing is as a young man I wanted to vote Labour before I had the chance to vote.
Since John Smith died I simply could not.
If they think they had trouble before, they ain’t seen nothing yet.
2015 and 2016 will be the final humiliation on the road to independence.
This year we lost a battle.
We can and will win this war and we all know the Tory/UKIP alliance will be one more step on that journey.
Miliband is finished if he was ever started.
Imagine Alex Salmond takes 20 SNP MPs to Westminster.
It’s all up for grabs as far as I can see.
Questions that every Rangers fan is asking
http://www.eveningtimes.co.uk/rangers/questions-that-every-rangers-fan-is-asking-186252n.25714526
WHAT HAS HAPPENED AND WHAT HAPPENS NOW?
Chris Jack
Chris Jack
Group Sports Writer
Tuesday 28/10/2014
Mike Ashley will hand-pick two new board members at Rangers
” Mike Ashley has effectively seized control of Rangers for just £2million after agreeing a loan with the club hierarchy.
Having got his wish and seen Graham Wallace and Philip Nash off the premises, he will now hand-pick two new board members to sit alongside chairman David Somers, Norman Crighton and James Easdale.
Derek Llambias, one of Ashley’s most trusted lieutenants, is set to become the new chief executive and will assume day-to-day control of the Light Blues.
His first task will be to address a costbase that is too high in the face of reduced revenue streams but he will also have to find a way of appeasing a sceptical and angry support.
HOW WILL THE FANS REACT TO THIS NEWS?
Hope has quickly turned to despair for many Rangers supporters as they have seen Ashley make his move and quickly become the main powerbroker at Ibrox.
While some will welcome a man of Ashley’s considerable wealth with open arms, the majority are wary of a businessman who, they reckon, is only in Glasgow to protect his commercial interests and make money.
The Sons of Struth will protest ahead of the game with St Johnstone tonight and it will be interesting to see if crowds continue to fall at Ibrox in the coming weeks and months.
Fans have already made their feelings clear against the board and many could vote with their feet once again to keep up the pressure.
WHAT DOES THE SHORT-TERM FUTURE HOLD?
Ashley is a man who says little in public and surrounds himself with close allies.
Sandy Easdale was doing his best to sell the prospect of the billionaire’s arrival yesterday but that won’t wash with fans, who will want to hear from the man himself but are unlikely to see his blueprint for the future any time soon.
Ashley, like he did to make his swoop for power at Ibrox, will have a plan in place.
With control over the board and Rangers’ commercial deals tied up and well in his favour, he already holds all the cards at the club.
The extraordinary deal he struck with Charles Green that allows him to rename Ibrox for just £1 could be put into action sooner rather than later.
Ashley’s arrival seemingly ends the notion of major regime change for the forseeable future, with the Londoner set to get his feet well under the Light Blues’ desks.
WILL MANAGER ALLY McCOIST BE SACKED?
The Gers boss insisted he had the backing of Somers and Easdale yesterday but his position can hardly be considered as secure just now.
Ashley has gone through his fair share of football staff at Newcastle and could look to have his own man in the dugout for the long term.
It would be a surprise if McCoist became the highest profile casualty of the Ashley era this early on but nothing is predictable at Rangers.
The 50-year-old has shown loyalty to current Toon boss Alan Pardew in the face of fan unrest but it is doubtful whether McCoist will be afforded the same courtesy.
WILL ASHLEY INVEST IN THE TEAM?
Ashley will speculate to accumulate in business but that is not his way when it comes to football.
Incomings at Newcastle have been off-set by high profile departures, such as Andy Carroll and Yohan Cabaye, to ensure the books balance.
The fear for Rangers supporters is that Ashley will keep the purse strings characteristically tight.
WHERE DO THE SFA STAND IN THIS MATTER?
The SFA have written to Ashley for clarification on his Gers deal and intentions but they are damned if they do and damned if they don’t.
Any move to block his involvement would be met by fury from some while others will hit out if they are seen to be welcoming him to Glasgow.
The SFA’s rules are there in black and white but open to interpretation and the Hampden beaks are unlikely to gear up for a fight.
WHERE DOES THIS LEAVE DAVE KING AND THE OTHER POTENTIAL INVESTORS?
On the outside looking in once again at Ibrox.
Fans were left frustrated as their moves for control fell just short and while they will retain the backing of supporters for another go, it is unlikely to materialise just now. With Ashley and his men calling the shots in the boardroom and the Easdale bloc of shareholders backing them, there is no doubt where the power lies. Ashley’s cash is a short-term fix and Rangers will need more investment early next year. Fans will hope that opens the door for another move by King and Co.
IS THIS DEAL GOOD OR BAD FOR RANGERS?
Only time will tell. At the moment, it looks a far better deal for Ashley than it does the club and supporters are right to be wary of what the future will hold at Ibrox.
This is a business deal for Ashley, not an emotional investment like it would have been for the likes of King.
The bottom line matters most to Ashley, but Rangers can’t settle for second best. ”
I have highlighted the problemabove
THE EXILED TIM
11:37 on 28 October, 2014
Apologies for the late response buddy, server went down in work.
I kind of agree with you and I kind of dont.
It could possibly be a case of ‘be careful what you wish for’
I agree with the sentiment of what you are saying, however I couldnt sit down and watch a 90 minute game of football from Spain, Italy or Portugal.
I find theatrics, diving and simulation all abhorrent to the extent it puts me off soccer entirely.
In reality I dont think you can have it one way without the other.
Scouting for reality instead of an aspiration is the more logical choice, Scepovic could prove me wrong, I’d love him to, from what I can see, his personal and physical characteristics is likely to hinder him which will affect his capability of producing consistently good form.
Twentys
thanks for your kind words
apologising to me for spelling …haha
Bmcuwp will huv spilt hof eez pint wae that wan lol ;)