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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27 October 2014 Last updated at 18:19
Man reported over Rangers ‘leaks’
A man has been reported to prosecutors over claims that secret Rangers documents were leaked online.
The 45-year-old man is facing an allegation of extortion, as well as breaches of the Communications Act and Computer Misuse Act.
It is understood the allegations relate to private information concerning the football club that were posted on social media last year.
Police Scotland confirmed the man would be reported to the procurator fiscal.
Griffiths replaced with a bit of furniture
Patrick27
Many happy returns. Have a good yin. :-)
Weefra HH praying to Wee Oscar.
tsoal
Would that be Peter Couch?
Weefra HH praying to Wee Oscar.
bournesouprecipe
20:25 on 27 October, 2014
………………………….
Apologies to any Celtic supporting Roma people looking in. No stereotyping intended.
http://www.bbc.co.uk/sport/0/football/29793747
Wee Stevie from IT has just leaked the discussion.
SFA: Michael said he wouldn’t have more than 10% of the shares in sevco.
Michael: I won’t, and don’t call us sevco.
SFA: OK sorry. You also said you wouldn’t have influence at boardroom level.
Michael: I won’t have.
SFA: What about the 2 directors you will appoint?
Michael: What about them?
SFA: Oh! Nothing. Thanks for your time Michael. Good luck.
“The SFA can confirm that following a comprehensive investigation they are convinced that the undertaking agreed by Michael Ashley has not been breached and look forward to working with Michael in the future”.
Weefra,
Nice one mate, I was disappointed last season that the board weren’t more helpful with the collection.
Myself and my daughter walked right round cp before we met the GB Bhoys collecting at the Lisbon lions end.
Outside the stadium grounds I may add.
Ach well, here’s hoping they do as well as the last time, every little helps these families…a sad testament in this day and age.HH
Cue flounce by Francesco Totti
They don’t like it up ’em!
2-1 the hoops
sipsini
The mrs and myself hate the thought of anyone needing a meal. A shocking testament to the times we live in. We don’t have that much, but are happy to share what we do have. :-)) Thanks for your comment.
Weefra HH praying to Wee Oscar.
WEEFRA and HAMILTONTIM..
Top class ghuys, you really are!!… Yea, here we are 2014, and giving out emergency food parcels to Families with Children, People on their own and what many don’t realise, working people who have found it impossible to pay everything on a low or minimum wage.
Yes Weefra.. Toiletries, personal item and sweets, (many ,many many are kids, and deserve a wee treat) are all required.
So God bless you ghuys… WE are Celtic!! From Malawi to the Calton… WE are Celtic.. see you Saturday.
Hail Hail.
WeeFra
Not surprised by your generosity and kindness in the slightest wee man.
sipsini
By “needing a meal”, should read, not being able to afford a meal.
Weefra HH praying to Wee Oscar.
Just wakened and read Paul’s header.
” Hollowed out runt of a club”
Now thats nasty, but i like it.
H.H Mick
andy53
I’ll make sure mini bt is fully stocked for the weekend….
A wee postscript to the Foodbank thread above.. last years Collection amounted to 5.5 tons of food parcels.. FIVE AND A HALF TONS !!!
The Foodbank Depot in the Calton Church was filled top to bottom!! The Full time Organiser was in tears.. and the guys who did all the donkey work.. was the ghuys in the GB. That’ll do for me !!!!!
HT
It’s the least we can do. Hopefully things will take a turn for the better and some of our poorer citizens can start making a life for themselves. Maybe our wee donations will help them towards that. We live in hope rather than expectation. “D” and I will always answer the call while we can afford to. :-)) I hope Minx had a cracking day yesterday, and our mate from Swindon had better keep out of her ironing aim when she next meets him. Hahahaha.
Weefra HH praying to Wee Oscar.
Oldtim if you are on – hope you are going on Saturdays – remember the foodbank donation – I’ll meet you at costco!!! :) #bulkbuycsc
WeefratheTim
On the Minx iron thingy my late wife once bought me a gas barbecue as a Christmas present……..which I had to assemble! I’ll say no more on presents:o)
Watching killer whales on sky, these guys have got more brains than the huns!
andyr53
Cheers for that. Nothing top class about me, I’m just a retired working class old fekkir who is lucky enough to be reasonably comfortable though due to careful pension planning. There’s nae pockets in a shroud, so wtf give it to the needy. Any time kiddo.
Weefra HH praying to Wee Oscar.
Living_in_the_Love_of_the_Commons_People @ 17:55…
Re Bucharest – Giurgiu is 40 miles south of Bucharest therefore travelling by metro is not possible.
I believe some fans have arranged coaches for the trip – our group hiring a car.
Kick off at 8:05 local time.
What kick off time are we subjected to this weekend?
Edb
3pm Saturday, honest guv…
eldiegobhoy
Hahaha, nuff said right enough. How are you this weather, I seem to be on less and less these days. Hope all is well.
Weefra HH praying to Wee Oscar.
Weefrathetim , hope you ans the Mrs are doing well
Not been around for a while, how are the birds doing?
Anyway hope you are all doing well and I will need to
Pop by soon with the wee ones and see you soon
Take care
Brnobhoy
WeeFra
The poor soul was stuck in a car for hours with me as we made our way north from Worcester.
What better present could she have :-)
EDB
I actually said in jest before H opened the parcel that it would be either a mini Hoover or an iron!!!
Gordon
Enjoy your trip. At least at £7 a ticket you’ll have a few extra pennies for beer!
BT
I take it the club have abandoned the crazy 1300 KO times. Absolute bonkers IMHO. Hope yer well on the recovery path young yin? :-))
Weefra HH praying to Wee Oscar.
Bt
If you’ve said it then I know it’s gen up! Have had a few chuckles with your old man recently. A person in the company asked him why he was wearing James Forrest’s warm and comfy jacket. You’ll understand and your dad took it in good part.
Weefra
I’m a bit up and down these days but daughters keeping a close eye on me!
Hamiltontim
Watch out those presents. I guess Minx ironed telephone. Stubborn lady on the other end keeps telling me – “welcome to the answer ….”
Zbyszek
How are you my friend? Any good news you can tell?
EDB
I’m sure it rendered him speechless. 8))
blantyretim
Not exactly:o)
Zbyszek
Ha sorry Minx is on the phone to her mum just now but will be finished in about 5 minutes.
So the Sevco are top story on Sky Sports news.
Totally hunbelievable .
Cannot understand why they merit such attention.
Hopefully some good news, we’re apparently in talks with Guidetti about signing a deal.
Really hope we can work something out cause that ghuy really has got something about him
HH
brnobhoy
HOW YE DOIN’. Been ages since we’ve spoke never mind you being over at the ole ferm. We are both very well, the birds are also well though most are moulting and off the lay. Give it a month or so and they should all be back to their best. That’s the problem with real free range hens, the weather affects them, not like free range kept in a large barns. How is wee “C” enjoying school, bet he’s now dead grown up. Really looking forward to seeing you both again. :-))))
Weefra HH praying to Wee Oscar.