Forbes Magazine’s article on the demise of Rangers and prospects for its successor club are notable only as they do not emanate from the Celtic online community. Jon Pritchett, an advisor to one-time preferred bidder, Bill Miller, explains why he believes a commercial turnaround of “Rangers FC” isn’t feasible. This assessment was based on season ticket revenue for the new club being 20% less than what the old club earned last season, an ambition that is far from being achieved.
Forbes article brought protest from Sevconian chairman, Malcolm Murray, who retorted that all sorts of positive developments have happened to the project since Pritchett made his assessment in May, including “significant investment in the club from the individuals and organisations”, although he didn’t name investors or provide specific details.
There is something familiar about this process. Harbingers of doom are rubbished by a club who insist they are in perfect financial health.
Murray claims his club have sold 36,000 season tickets, the adult price of which is £268, inc vat, or a total of £8.04m ex vat. He also has money from Sports Division and consortium members, at least some of which will have gone towards paying Rangers administrators’ for the club’s assets, but he makes no secret of the fact that his new company needs to raise money through a share issue, which he hopes will “generate many millions in additional revenue”.
Bill Miller, like Blue Knight bidder Paul Murray, could not see how a Newco would be viable without access to European, never mind SPL, income. The most interesting aspect of the prospectus Newco hope to publish will be the cash shortfall, not only for this season, but for each of the three subsequent years they will be ineligible for European football.
The prospectus will also have to detail how this gap will be bridged, and will have to recognise the impact of potential financial and sporting penalties from the SPL Commission looking into improper registration of players at Rangers, whose SFA membership the new club acquired. These are the huge questions Newco has to address before it asks investors for cash, the stripping of titles is merely window dressing.
Malcolm Murray is correct, a lot of water has passed under the bridge in the five months since Jon Pritchett looked at the books, but a lot of that water is choppy.
The new issue of CQN Magazine is out today, 80 pages of fantastic Celtic content. Click here to read for free online, or strain your eyes squinting below.
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Morning CQNer’s
Just dropped in to say…..
May God’s Light Shine On
Wee Oscar Knox and his
Incredible Family
God Bless
Hail Hail
off oot
laters….
Who’d have thunk it?
‘Regional PR to the Company:
Media House
Ramsay Smith
+44 (0)141 220 6040’
http://www.investegate.co.uk/Article.aspx?id=201210110700094376O
Tooting
Would he be from an Italian principality? :-)
OG
I have the feeling of a flurry of activity as Whyte prepares to go to court so we have a frenzy going on in our faces when the real action is happening off to the side ….. thoughts?
Stevo
Reading Rangerstaxcase on Twitter, I thought The Rangers had adopted the Huddle or Poznan as Englishmen call it. It’s actually the “Pozni” that they’re using.
Remember that word, it’ll make things clearer, soon !!!
It is not looking good for Chico over on FF. As soon as they have been asked to part with £500, a mere weeks prior to Christmas, all of a sudden our blue sheep have found their sensible heads.
“f we´re debt free, the wagebill is down to 6M, can´t purchase players alongside having around 36,000 ST holders why do we need working capital ?”
“I think this is a bit premature.”
“I want to see a set of accounts(audited properly) before I invest.”
“Personally speaking, I think it is too soon. I don’t understand the rush for this to be done and I wish Charles would stop saying the debt free line – it wasn’t exactly achieved through great financial management”
“I´m a cynic and I may be wrong but getting it done and leaving the building before the first audited accounts are published is one possibility.”
“We need a lot more clarity or it won’t take off.”
” Green has played to the gallery in a big way in an effort to get the support onside with the share-issue in mind. (He´ll get a deal fee from said issue in 7 figures).
The share issue would be pay-back for consortium.”
Universal scepticism and negativity towards it.
This share issue will fail and then what…….
AWE NAW
Some questions ———
How much money did Minty give to Rangers ?
How much money did Rangers give to Minty ?.
How much money did the Rangers support give to Minty ?.
How much money did Minty receive from 2 Scottish Banks ?
How much money did 2 Scottish Banks receive from the UK taxpayer?
Did Minty have to tell lies to the SFA?
Is it true that Minty’s favorite Dickens novels are Little Dorrit and Martin Chuzzlewit ?.
Were Ticketus conned ?.
Is the Octopus a Ponzi ?
Following share issue Sevco announce club mascot Broxi Bear to be replaced by new “Ponzi Bear”.
Is it wrong to hope the Sevco huns win the Scottish cup?
Just to kill off the ‘we are the same club’ lie once and for all.
Ernie – Yip, that’s wrong.
Another quote from FF in a ‘voice of reason’ shocker.
Today, 09:18
Charlie Chan
On The Bench
Join Date: 03-09-2011
Posts: 453
Re: Stock Market Announcement
Quote:
Originally Posted by berkshiretrueblue
The working capital comment is a tad worrying. We really shouldn’t need this while we are in divisions 2 and 3. Surely the revenue generated from ticket sales and sponsorship should suffice to cover overheads.We really need to see a set of accounts and a full prospectus with a clear and concise business plan for the future of the club both on and off the park.
I think this is the central issue. There is an assumption on here, which is entirely unwarranted so far as I can see, that because most of the higher earning players have been moved on, and because ST ticket sales held up in terms of numbers then the finances must be sound and the business operating sustainably.
I don’t know the fine detail of it, because there is nothing in the public domain. But everyone else looking at it – Miller, Kennedy, the Blue Knights et al – was very clear that it would be loss making until the club was back in Europe. The ST prices were reduced to keep numbers up, and the ST income alone is not nearly enough to meet the running costs. There are certain fixed costs which can’t be trimmed – the rates bill, for example, must be substantial, as must the EL and PL insurance cost and the utilities. The policing cost will still be significant. No non-playing staff have been made redundant and so all of that cost from the old business is still there. There are a number of high earners still on the books – McCulloch, Alexander, Wallace, plus the management team. Then there are the one-off costs such as clearing the football debt etc.
On the revenue side, what is coming in exactly, other than the ST money and the pay at the gate stuff? Not much in TV money. Therefore not much in advertising. Merchandise is in a period of transition. Sponsorship?
All of this looks to me like a loss is on the cards and they are trying to raise capital now to meet it. Second half of the season is when it will bite, which I suspect explains the rush to raise the money now.
is a company actually permitted to float like this without ever having published accounts?
Seems logical that there would be rules around this preventing the public from shisters and conmen …. and such like
Let’s look at the some factors which may affect this share issue.
Difficult economic times.
Christmas just around the corner.
Green’s motives…to walk away with some cash perhaps?
Doubts as to what the money will be used for.
Poor response to the previous share issue.
Poor team performance.
Signing restriction.
It doesn’t look too positive does it?
From DEADclub media I can hear just the odd penny starting to drop :)))
what’s the split between investment and shareholder return, I’d hate to put in money just for guys to be taking a cut it’s a bit early for that imo…
Jimmy Saville ?
I remember my old man boycotting a cycling club’s Dinner Dance in consequence of Jimmy Saville being in attendance .
The year was 1971 .
His reasons ?.——
I paraphrase ——
Pervert / gangster / Freemason .
I see John Hartson is quoted in the press today on the Wales v Scotland game. He reckons that playing away from Hampden will take the pressure off Scotland and they will be favourites – so he has put the pressure back on.
Not daft is big bad John.
So it takes the Sevco fans until October to start questioning where the money is coming from to fund the rest of the season.
Being that stupid must be genetic.
If/when it all goes up in the air again for a team in blue on the South side of Glasgow (not the same club), they cannot say they weren’t warned and not just by us Internet Bampots but by their own folk AND outsiders.
As usual they just don’t want to listen.
Could it be Administration by Boxing Day? Or even Guy Fawkes night?
Big Swee-Cabo Roig,Murcia about 40 mins from Alicante is a good spot for golf.About 8 courses within 20 minutes drive.
stevo, 09:35
I hope some things firm up so we can get stories out of them but there is lot swirling round. It certainly looks like we will be in for a busy few months.
The prince of Monaco is said to be on stand-by
thanks OG. Sure looks like it.
Cant help but think they are panicing a bit and feel up against things timewise with various ‘cases’ being kicked off and concluded, along with (I suspect) running out of working cash fairly quickly.
Going now aint right but MIGHT get the working money issue off the table for a while and IF successful creates a greater social pressure on some ‘cases’
It’s hail Mary! If theese IF’s and MIGHT’s dont work out for them, it could be all over again in a matter of weeks
Mark Hateley says Ponzi Bear is like a new signing
HH
And another thing….Sevco fans have only just had to dig deep for their season ticket money and now they have to find another £500? Hmmm
The timing of this share issue seems all wrong so they must really be in dire need of dosh just to keep paying the bills.
I have no problems with Jimmy Saville O.B.E. Being accused of child abuse.
I find it outrageous that it is being done after the man has died.
This is wrong on so many levels.
The man obviously can no longer defend himself .
Then we have accusations that other’s knew about his alleged abuse,and turned a blind eye.
References to other Radio DJ’s ,and naming them ( even as a joke) isn’t right.
Mud sticks.
It is exactly what The Hun has done to one of our dearly departed legends.
Please think again before making unsubstantiated comments.
A67
Chasbhoy
That post on FF is far too well-argued and reasoned to come from anyone other than a timposter:)
Remember when you were wee n yer dad took that tone with you to give you confidence for something,putting his arm round you and saying into your ear,laughing,convincing you straight away?-
“It doesnt matter if they dont take to the share issue son,they think that the club is separate from the company and they never die!”
Wee Oscar and the Knox family.
There are few who will fully know what you are enduring.
My thoughts are with you.
A67
Ian Brady was a fanatical hun.
Doesn’t mean that all huns are child abusing child killers though,does it?
Just how much damage would announcements from HMRC and the EBT investigation do to the Sevco share issue?
Timing could be everything.
A67
Yeh that post from FF must have come from a timposter… If not then no way does he actually go to the games.
He makes a valid point; money required urgently to get sevco through the second half of the season.
‘Playing at the 51,000 seater Ibrox stadium, which is Scotland’s only UEFA elite club stadium,’
LOL!!!!!
This will be the stadium that only the rust is holding together and constantly needs last minute repairs to host games.
Stupid zombies…
Big Swee 7.17
I have been going golfing to Majorca for years before we tried Turkey (Belek) two years ago. We tend to go around April. Let me tell you there is no comparison! If you want a lot of night life with expensive drink and crap hotels then Spain is the place to go. If you want five star hotels, with fantastic food and drink all inclusive then you will not beat Turkey. Suggest you give Golf Kings a call in Glasgow and they will keep you right. HH
fassreifen
09:44 on
11 October, 2012
Following share issue Sevco announce club mascot Broxi Bear to be replaced by new “Ponzi Bear”.
————————————————–
Now that’s funny I nearly dropped my bacon butty….!!!!
And if you don’t mind will forward it to one or two bitter sevconians.. And count the days till they understand it and come back with some half hearted drivel in response
Headtheball
CG has been quite consistent from early on that they would announce the share issue in October.
A67
Who’d be a NOMAD for the newHuns?
HOW DO WE CHOOSE OUR ADVISERS AND WHAT ARE THEIR DIFFERENT ROLES?
If careful consideration of all the pros and cons shows that a listing on AIM will benefit the company, next, the company will need to think about the following issues:
Appointment of advisers
Identifying and appointing the Nomad will co-ordinate the company’s entry to the market. In addition to a Nomad, a broker will be needed, which may or may not be the same firm as the Nomad. Further advisers needed for the flotation include lawyers (one firm to advise the company and its existing shareholders and another firm to advise the Nomad) and reporting accountants. The company will also need to appoint public/investor relations advisers.
Choosing good quality corporate advisers is one of the first and most important things that you must do in preparation for a flotation – and is also one of the most difficult.
During the flotation process, you will inevitably rely heavily on your advisers for guidance as to what is happening at each stage.
1) The Nomad
The role of the Nomad is essential to the listing of a company on AIM. The company must appoint a Nomad (an organisation approved by the London Stock Exchange) to guide it through the AIM application procedure and to act as Nomad at all times to advise it on the AIM Rules on a continuing basis after flotation. If an AIM company ceases to have a Nomad for any reason, the London Stock Exchange will suspend trading in the company’s shares.
A Nomad is responsible for ensuring and confirming to the London Stock Exchange that an applicant to the market meets the requirements set out in the AIM Rules. The Nomad will usually be responsible for maintaining the admission document (or prospectus) and will arrange for the scheduling of the date of admission of the company to the market. Nomads must comply with a specific set of rules published by the London Stock Exchange.
2) The Broker
An AIM quoted company must also retain a broker at all times. The broker acts as the company’s main interface with the market and potential investors. This may be the same firm as the Nomad and must be a member of the London Stock Exchange.
As well as advising on market conditions and the likely level of demand from investors for the company’s shares, the broker also actively markets the shares to potential investors and can advise on the best method of flotation, size of offer, timing and price. It will continue to work with the company after flotation to look to maintain liquidity and profile in the after-market.
3) The Company’s lawyers
The responsibilities of the company’s lawyers include conducting the legal due diligence process (fact gathering on the company to identify any legal issues which may need to be addressed before the flotation), advising on the legal aspects of the issue and producing the key legal documents. The company’s lawyers assist the directors in the verification exercise, which is vital to confirm the accuracy of the statements made in the admission document and to ensure that the document is not misleading to investors. The company’s lawyers also provide guidance for the directors as to the nature of their responsibilities and obligations as directors of AIM quoted companies.
4) The Nomad’s lawyers
The Nomad’s lawyers’ primary role is to advise the Nomad/broker on the admission process and any placing and to produce the placing agreement.
5) The Reporting accountant
The role of the reporting accountant in a flotation is separate from that of the company’s existing auditors but can be (and often is) fulfilled by a separate team in the same firm. The Nomad may prefer to appoint a different firm to ensure the highest possible level of detachment and independence in this key role. Essentially, the reporting accountant is responsible for reviewing the business, the company’s financial records and internal systems and will comment on the company’s working capital statements.
The reporting accountant prepares two separate reports. First, a detailed report on the financial and management history of the business, which although not published, provides the management and the Nomad with the information needed to draft the admission document. It also serves as the basis for the reporting accountants’ second and shorter report, which is published as part of the admission document itself. The reporting accountants will also prepare a report for the Nomad on the company’s projected working capital position following admission (normally for the 12 to 18 month period following flotation). They may also advise on the tax implications of the issue.
6) Other advisers
Depending on the method of flotation and the specific circumstances, a company might also decide to use a number of other advisers in particular areas. The most likely is a firm of financial PR consultants, to maximise awareness of the company and its products or services amongst the general public and the professional investment community in the run up to the flotation. Companies coming to market often underestimate the importance of public profile and press contacts. The financial PR consultants should also help ensure that any public statements and press releases are permissible under the relevant disclosure regulations. A company will also find that by helping to generate press interest and publicity, the financial PR consultants can play a key role in sustaining awareness and liquidity after the flotation. An applicant company may consider media training for those key directors who will be under the spotlight.
A natural resources company will generally require a competent persons’ report to be included in the admission document. The AIM Rules contain specific requirements in this regard.
Other advisers you may need include: registrars to manage the company’s share register; printers for accurate and speedy production of documentation; chartered surveyors/valuers to assess property values; actuaries to assess the position of company pension schemes; receiving bankers to handle share applications (only in a public offer); trademark or patent agents where a report on intellectual property is regarded as important and insurance brokers to check that all risks are adequately covered.
Beginning the valuation process
The market value of the company is clearly central to the flotation. If funds are to be raised, it will affect the proportion of the company’s capital which needs to be sold or issued. Also, the value of the business might be affected by any corporate restructuring and board appointments made in the run up to the float. The final valuation achieved on flotation will depend on market conditions at the time.
ASonOfDan – Hampden is an Elite Club Stadium so there we go immediately with Green “flowering” up a prospectus. I mean it will likely be an oversight, it is not like he has done that before when floating a football club…..
Does anyone else think that the amount being raised is very similar to the amount Ticketus is owed..?..I wonder if they are related?
Will the huns acknowledge that their first love died,history gone and they’ve been supporting Sevco to spite everybody thats been rippin’ the yella stuff,by taking up the share issue?
See this Ponzi scheme chat, is this related to the oldco or is this how the newco got up & running??