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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An Tearmann
16:37 on
27 October, 2014
wonder who that is?
========
BY ROBERT McAULAY
Published: 43 minutes ago
A MAN faces a charge of extortion after police began probing the release of Rangers secrets on the internet.
The 45-year-old male also faces allegations involving breaches of the Computer Misuse Act and the Communications Act.
======
What age is Steve the IT guy?
Man City loan watch: John Guidetti hints at permanent Celtic move
27 October 2014 08:30 AM Samuel Luckhurst
City youngster hit his fifth goal in five against Kilmarnock at the weekend
Guidetti was on target for Celtic again at the weekend
John Guidetti made it five goals in five games for Celtic and hinted he could make his move north of the border permanent.
City’s on-loan Swede opened the scoring in the Bhoys’ 2-0 win over Kilmarnock to take Celtic up to fourth in the Scottish Premiership table.
Guidetti described Celtic Park as “the best place in the world” and admitted it was a “massive honour” to play for the club.
“It makes me so happy,” Guidetti said. “It’s a beautiful place to be.
“All the people treat you so good. We have taco evenings.
—–
So there you have it folks.
Recruitment policy no longer depends on money ball. So passé.
It now pioneers the Uncle Ben’s taco kit washed down by a single bottle of Corona with one slice of lemon and 11 straws.
A big like a hootenanny really.
HH jamesgang
I know why Ashley has bought them
Big-Cup Winners
Is it so he can use the slogan, “Sports clubs! Two furra powund! Two furra Powund!”?
big-cup-winners
17:05 on 27 October, 2014
I know why Ashley has bought them
And?
The ole ‘Tic discuss tactics over tacos
Bobby Murdoch 15 13……………he definitely was airborne when headed that ball into the net, good goal.
Charles Patterson used the L word on Sevco sports news
New script , new era perhaps ?
Ronny’s speech impediment has been confusing the players during prematch discussions apparently
Good news that Guidetti is settling in and feels at home. Don’t really see why Man City would want him back with the competition they have up front already. Hopefully PL already agreed the transfer fee at the time of the loan.
Similar story for Denayer. Can’t see any way he would be pushing for a place in the Man City defense. Fully expect him to be at Celtic next season on a loan extension or a permanent deal.
The l word?
Llambiasted?
mncelt- no fee required can get JG on a pre contract in January.HH
Dave King is not 47 years old
Charles Greene is not 47 years old
Craig Whyte is not 47 years old
David Murray is not 47 years old
Jack Irvine is not 47 years old
Jim Traynor is not 47 years old
David Murray is not 47 years old
Ally McCoist is not 47 years old
John Brown is not 47 years old
Richard Gough is not 47 years old
Ian Durrant is 47 for 2 more days-
just saying :-)
Damn- it’s a 45 year old man- back to the drawing board
Who was born in 1968/69?
I watched Guidetti wind up the Killie CH from the kick off on Sunday, he was in his face, pulling at his shirt and generally niggling the guy right up until he was sent off. Professionalism at its most effective.
In lieu of the criticisms, and at times personal insults, our inexperienced manager has had to suffer of late, I have noted a certain trait in him.
I believe he is simply “a winner”, everyone knows one, that special person who has the inner fortitude, combined with a focussed mind that will eventually ensure success. In addition, IMHO, he has that undefinable trait about him called “luck”, or a “touch of the wee folk” that my Cavan granny used to talk about.
In footballing terms however, he is a greenhorn, a rookie and wet behind the ears. In the cerebrally celebrated Nordic lands he was given six years to achieve his ambitions, by chipping away at his small underdog club using his own methods, until against the odds they won the league.
Will we afford him the same consideration in our more instant gratification based mindset? All great works of footballing success take time, just ask any outstanding manager throughout the decades.
I’m in to allow him the room to make mistakes and learn his trade until that luck starts rubbing off in measurable success. In Ronny I trust.
Note the accusation in the article was extortion but not charged with extortion, how does that work ?
Does Ronny know about the Tacos nights out? Outrageous.The old salsa picante and ice cold cerveza mix is a deadly combo.
Sgls@15.37
The Huns are already revolting
OldiebutagoodieCSC
Bartin Main?
SCOTTISH FOOTBALL
Easdale hails Rangers’ Ashley deal…..
braw ……the unseenfenianhandcsc…….hail hail
as long as fattymacmoistbides……hail hail
Guidetti – two fittit, guid in the air an’ never shirks a taco…….
…….perfect playa.
Just had a wee vision of john guidetti in that advert for tacos … Playing the part of that Mexican badass dude .
Maybe bursting into a wee Swedish rap and growling at VVD beatboxing
Guidetti is in his last year of his contract at City, and will be a Bosman (less training compo) come June, available on pre-contract terms to all comers in January.
Celtic need to deal with the player, not Man City.
Denayer is a different matter, being under contract until June 2016.
Ole Tic legend Mo the bounce’s second touch was usually a taco.
Guidetti seems to want to stay
Denayer on the other hand hasn’t said anything about hanging around after the summer although someone will correct me if I’m wrong
Imagine someone on here correcting someone if they made an error
What are the chances of that happenin
Shame about Paolo Nutini canceling his show.
I went to see him a few years ago at the Hard Rock Cafe in San Diego, resplendent in my Hoops thinking, at least I could bring a bit of home to him on my travels.
Turns out there was a dozen Tims of a similar mindset and we ended up forming a wee green and white island in front of stage, with him engaging us all through his performance. Right after the encore, he came back out, thanked us and signed our jerseys. What a magic night.
Tactics, tackles and tacos…it’s the way forward.
houl yer wheest
16:29 on 27 October, 2014
Today in 1980, seven IRA prisoners begin a hunger strike in the H-Blocks. They are joined by three comrades in Armagh Women’s Jail.
Thanks for that a chara
You also reminded that it is my nephew’s ( ,who was named after me) birthday today
He celebrated his first that day and my sister cancelled his party as everyone were too emotional
setting free the bears for res. 12 & oscar knox
17:18 on 27 October, 2014
Damn- it’s a 45 year old man- back to the drawing board
Who was born in 1968/69?
–//
That’ll be me but it wisnae me.
Honest guv!
Aff oot. To a concert. Not paolo. Respiratory patients.
HH jamesgang
Paul67 et al
Latest from Ayebroke.
“After due diligence the Board has agreed it is their best interests to borrow two mill aff Mick”
Denayer looks too short to be a CB in EPL, holding MF possibly.We might get another year loan.
Another snippet from Caesar & The Assassin for you to enjoy.
I always liked Tom McAdam…
Billy McNeill had to set out his team for the final Old Firm confrontation of the campaign without injured forwards Charlie Nicholas, Frank McGarvey and George McCluskey, the strike trio with sixty-eight goals among them. McNeill found himself with a gun largely firing blanks. For days, he pondered his final line-up. ‘If you lose one player from a part of your team, that’s bad enough. Losing three prolific goalscorers all at one time is unheard of. You can’t help wondering if fates are turning against you in such circumstances.’
McNeill’s solution to his lack of firepower was quite drastic – Tom McAdam was asked to lead the line for the first time since April 1979. Three years beforehand, McNeill had converted him into a more than reliable centre-half. Now he was asking him to go out and score goals against Rangers. Celtic were the walking wounded that day as Danny McGrain, Davie Provan and Tommy Burns were carrying injuries as they stepped onto a fiery pitch that was bare in places; evidence of a savage winter.
It was a day for the brave. Danny Crainie was making his Old Firm debut and, after only ninety seconds, he was dancing with delight in front of 49,144 fans, one half of the ground singing, the other half silent. Tommy Burns started the move with a delightful pass inside left- back Ally Dawson for Dom Sullivan, who was racing clear. He zipped one into the crowded penalty box, keeper Jim Stewart didn’t collect properly and Crainie was in like a flash as the ball squirmed from his grasp.
It got better for Celtic five minutes after the interval and the goal was a scriptwriter’s dream. Tom McAdam, the striker-cum-defender-cum- striker, got what proved to be the winner with a header at the back post. Rangers’ rugged Northern Ireland international defender John McClelland went in ‘like a can-can dancer’, according to one newspaper report, as he needlessly fouled Crainie. Burns picked out McAdam with a cunning free-kick and Stewart was helpless.
There was a rally from Rangers and Derek Johnstone scored with a fierce volley fifteen minutes from the end, but there was no way back for the Ibrox club. How they must have hated the sight of Tom McAdam. The versatile performer only scored four goals all season – and three of them were against Rangers.
Guidetti.
For what its worth-
Italian media spent this summer linking him with Roma, Fiorentina, Lazio, Palermo and Napoli.I remember an interview from a couple of years ago which featured him expressing a desire to play for Inter.
TBB – If Man City wanted him back, they would be in pole position for his signature ? Not sure why they would loan him to us if they had no intention of keeping him on? Why not sell for a few quid rather than let him walk out the door for free. I thought I heard RD say that he had approached Man City about a possible permanent transfer, so who knows what is going on behind the scenes. If Man City have no interest, then you are right – he can negotiate his own deal with us in Jan.
I do hope we get him permanently though. Really like his attitude, and he has tons of potential
“Mike Ashley’s ‘investment’ in Sevco is good news”
Super Sallary
Tacos ? Tacos ? We dont need no steenken taacos !!!
macanbheatha
Maith thú