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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Paolo’s show tomorrow is also cancelled
Guidetti is the kind of target man striker we have been chasing since Gary Hooper departed. We must get this lad signed.
Amidst any laughter, there’s always sadness to consider.
‘Mick the tic’ is not one of us any longer.
What did we do wrong?
Voguepunter/EDB
You two a couple? :-)
EDB Re Minx’s kissing ability/technique I concur!!! Hope you were spoilt rotten and good wishes to HT’s mum. Ht may have news tomorrow re Aberdeen.will keep you posted. Hail Hail Hebcelt
Hebcelt
johann murdoch was trying to get a hold of you this morning. I gave him your email address
hankray,
With you on that, I posted before he has a swagger that is lacking from a lot of our players, his confidence can rub off on these players.
The big plus though, is he scores goals and helps make them, yep, get him tied up Celtic.
HT,
Miaooooow ;))
BT ok will look back,thanks Hail Hail Hebcelt
hebcelt
not online, he sent me a text this morning.
Quiet on here, is there a phone in on?
Hebcelt
Thank you my friend. Sort yourself first as I have 3 for Pittodrie but know others who need them.
hamiltontim
19:22 on 27 October, 2014Voguepunter/EDB
A very unusual double act….2 straight men……:)))
sipsini
No – old fashion radio comedy. Bit like the days of: Round the Horn!
Having read on here and other places, James Forrest, Phil Mc and others that Mike Ashley would resort to cost cutting measures, an austerity period is coming etc, etc.
Well he has made a wonderful start to his hun tenure, keeping the fat slug as manager, fecked it up on his first day, hopefully many more to follow, follow.
HH
I find Gary Neville’s analysis of the week end’s EPL to be very informative. It’s a pity the Scottish game is not analysed with the same detail.
setting free the bears for Res. 12 & Oscar Knox
14:46 on
27 October, 2014
Take a bow sir, chapeau!!
HH
Villa to win against QPR with both teams to score 5/1. Worth a quid.
St Johnstone to win tomorrow night 3/1. Hmmmmmm
!!bada bing!!
Voguepunter’s straight????? :-)
Evening all
Just back from Spain, scorching.
Wit the feck happened here
It’s pitch black,pashin doon,the clocks went back annaw
Glesga’s green n wet
HH
praecepta,
HaHa, must admit I’m listening to it, reckon all the married ones on here are watching corrie, I know VP & BT will be :)
Sipsini
ncis actually. 8-)
Does Michael (as he shall now be known) Ashley have “undue boardroom influence” over 2 clubs or 2 company’s?
No trying to start a poppy debate.
But, why do the English news readers / TV presenters etc,
have a red poppy with a green leaf thingy and, the SMSM
have a red poppy’s with ‘no’ green leaf?
Say no to poppy’s – CSC
King Kojo – Yer flag still fly’s high and proud on the ole Jungle roof.
Hugh Keevins, if te read this – please stop bigging-up Fergus McCann
He was a wee tyrant who correctly booed by the majority inside the stadium
which the fans built – not him ok.
Hail Hail – Off oot – bye.
BT, I had to google that, thought your spelling had went ape :)
Is it any good, looking for a good programme to watch.
Have you been watching Peaky Blinders?
Ghuys, Just a reminder…
Foodbank collection before the game v Inverness, Saturday 1st Nov..
Collection points throughout the Bus parks and in front of the stadium.
Hail Hail.
Sipsini
it’s ok, not started on peaky blinders yet..
Good evening all.
andyr53
Mrs weefra did a “foodbank” shop today. Spent more on that than our own needs. We included soap and toothpaste in the shop. Hope that’s ok. The soap is well insulated so it doesn’t taint the food. :-) will deliver on Saturday at CP.
Weefra HH praying to Wee Oscar.
macjay1 for neil lennon
18:27 on 27 October, 2014
bournesouprecipe
18:00 on
27 October, 2014
Living_in_the Love
Excellent – ( sounds grim though )
Romanies in the gloamin with St Patricks Fenian Bands.
==================================================================
And when the music stops?
Pray tell.
…………………………………………
And when the music stops
Where’s yer wallet and yer watch …….
andyr53
I don’t know you Andy but I can only praise you for your continued efforts to highlight this over the last few weeks.
Take a bow sir.
Great strike there by Charlie Austin. 1-0 to the oldest Rangers I know.
BMCUW,
if you are about,just seen your e mail from earlier,
cheers mate
Was on the ole official site there and it looks to me as if there might be less than 10,000 going to Wednesday’s quarter final. Just need to sing 3 times as loud as normal I suppose.
What could Ashley want from them, what could the Geordies get that Charlie bought ? Nah, couldn’t be, how funny would that be ?
theoriginalsadiesbhoy,
Oh it’s good to be a ………
Anyone know if the tickets for Wednesday can be printed at home ?
TheOriginalSadiesBhoy
20:14 on
27 October, 2014
macjay1 for neil lennon
18:27 on 27 October, 2014
bournesouprecipe
18:00 on
27 October, 2014
Living_in_the Love
Excellent – ( sounds grim though )
Romanies in the gloamin with St Patricks Fenian Bands.
==================================================================
And when the music stops?
Pray tell.
…………………………………………
And when the music stops
Where’s yer wallet and yer watch …….
Excellent CSC
Happy Birthday to CQN youngster Patrick27
Hope it is a good one in Auld Reekie?
HH
CRC