Duff and Phelps will be in possession of final bids for the Rangers tomorrow and soon thereafter will formally select a preferred bidder. Liquidation, what you have known to be inevitable for many months, has now formally been acknowledged as a possibility by each bidder.
Duff and Phelps have enough cash to keep the club operating until the verdict of the big tax case, which is expected this month. If Rangers achieve a substantial victory from the First Tier Tribunal they have a fighting chance of survival. If they incur a substantial loss, The Rangers Football Club established in 1893 and incorporated as a limited company in 1899, will almost certainly cease to exist soon thereafter. All shareholders will lose their rights and notional value. Unsecured creditors will take an enormous bath and the secured creditor will acquire Ibrox and Murray Park.
Craig Whyte is, of course, secured creditor and majority shareholder in Rangers, so although some creditors and shareholders face wipe-out, he will emerge with the stadium, giving him an excellent opportunity to form a new football club.
He also has the burden of a liability to Ticketus, to whom he has underwritten payment for the tickets they purchased last year. So any new club to emerge from this debacle has to be designed by Whyte and Ticketus or acknowledge the rights of both. I am ignoring reports today that Whyte may hand over his shares in Rangers for nothing if it was in the best interests of the club.
With fresh investment capital likely to be at a premium, a deal which excludes ownership of the stadium is likely to generate most for the unsecured creditors. Whyte could retain ownership of the stadium and offer Newco a 99 year lease. This would enable him to receive a suitable return for his year’s work and ensure he has the ability to accommodate Ticketus. It would also allow Duff and Phelps to offer HMRC and other creditors the bulk of whatever cash is on offer from the organisation bidding to run Newco.
It will be interesting to see what the preferred bid looks like but leaving Ibrox with Whyte has an irresistible look to it.
Newco will play in blue jerseys but the differences between it and Rangers will soon become apparent. Income for years ahead will not enable them to employ footballers on the kind of money Rangers have employed for the last 20 years. Even if they are able to acquire Rangers player registrations those on premium money will have to be sold, generating an early cash bonus for the new entity.
If the Blue Knights gain control I expect a reasonably cash neutral forward plan but if an outside investor concludes a deal with Whyte and Ticketus, in particular one who advertise themselves as a joint venture between investment capitalists and a merchant bank, you can expect an onerous return on capital to be extracted from Newco in sunshine or in shadow.
There will be many shadows.
Arguments about which league Newco will play in and an appropriate penalty for any transfer of player registrations, how the SFA punish an insolvent Rangers for Lord Nimmo Smith’s findings, what they do if Duff and Phelps acknowledge void player registrations over many years, or what the SPL do about the same issue remain to be resolved.
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i you bhoys are right .i wont sell it now,it was because there were no concessions and with added cost on petroli thought adding a couple of pounds would be alright
geebee1978 on 3 April, 2012 at 17:02:
First and foremost they are very likely to be liquidated, end of history, that is the biggy in my opinion.
They will not have HMRC totally off their back, they will need to pay the Taxman a bond, probably about £5 million; this is because they have failed to pay their dues under oldco.
With what they will have to pay to Ticketus and possibly a rental fee for playing at ipox, they will be lucky to attract any quality high earners. How much did CW say it cost them currently to run the oldco, I think he said it was £3.5 million a month.
Additionally when they are liquidated they will have no European income for three years. On the present sponshorship, T.V. Deal, no European fooball and the oldco’s shady dealings there will be few quality players drawn to them.
They are finished, stand easy.
Keep the Faith!
Hail Hail!
geebee1978
The owners of a NewCo have to cut current costs by £10M a year just to break even, as Rangers is losing that much (without European income) as it stands, and NewCo will have no European income for at least three years.
It will very probably be the tenant in both Ibrox and Milngavie, with a rent in the order of £2-3M a year to pay to CW or whoever ends up with the properties. It will also have to sign several players, as in a liquidation most of the better ones will take the chance to get a nice signing-on fee elsewhere.
All that means the playing squad will look more like (say) Hearts than Celtic. Which then raises the question as to how many supporters will turn up to matches, buy merchandise etc for a team that may struggle to impose itself on the rest of the SPL, never mind threaten to win the league. Maybe in the first season, but after that?
NewCo might with extremely good management and a fair bit of luck navigate these difficulties and emerge in good shape several years down the line; rather like Celtic under Fergus. The odds are stacked against it though.
Feeling any better yet?
ernie lynch on 3 April, 2012 at 17:08 said:
Ernie calm down matey.
Let’s see what happens first.
Celtic_First
Sorry for slow response.
My comment about not holding your breath re.mr Doncaster is born of my inbuilt distrust of just about anything uttered by the supposed “gaurdians” of our game.
I believe there are grounds for such distrust and the notion they are “swinging the lead” with their various investigations in the hope that rangers go into liquidation and give them grounds to abandon their investigations.
One case in point would be the sectarian singing reported on 18th February and confirmed by the SPL as being under investigation.
Surely such an investigation would be fairly straightforward in content and required timescale.However,here we are,some 45 days later and as yet no sign of an outcome.
Hence my mistrust.
Agree with you that Mr Doncaster did say a number of interesting things.
In this instance,I sincerely hope you are right and I am wrong.
medtim
Personally I think we have more than a few hun-like fans amongst the Celtic support. Many jumped onto the rocky boat when Saint Martin arrived. He steadied the ship and they stayed. Some might say like an infestation. Thats for others to say. I’m much too diplomatic. When the Ginger Mourinho left they aborted ship. Now they return with Lenny stearing as a good Captain. Mayhe its the price of success?
Maybe its just modern post Thatcherite Britain?
Timbhoy2
fair enough on the petrol I guess. I apologise, seems reasonable.
NeilR and Lennybhoy…..
Feeling much better now lhads….thanks ;)
Timbhoy2
No its not allright !
TnT
I agree, never thought of petrol.
Even a wittled down Hun Machine with a few cogs taken out, smaller wheels, diminishing sprockets, will give us a very decent and hard game. But the law of probabilities would suggest us coming out on top most of the time. A future Hun machine will have greater difficulty sustaining consistency against the diddy teams when their quality is compromised. That I think will be our biiggest advantage, and when our superioty will come to the fore.
TET
Yep, I jumped down the guys throat too quickly. Never thought it through.
What happened to the Louden?
TnT
I still disagree, the ticket cost £26 and should be sold for £26 ….
Timbhoy2
Yea petrol is extortonate
my apologies !
can i buy your ticket
The ticket cost 26 quid, but if there were expenses incurred to get the ticket, seems only fair. Tight, probably, but fair enough. Asking for 28 seems ok, however, if the couple of pounds, was really asking for double, then thats very much hun like.
BT
a couple of pounds to cover his expenses seems ok to me, but we can agree to disagree!
Here’s something that WILL give you reason to have a go:-). I won’t be unhappy if we win it at Celtic Park so I can get there for the next home game.
(strap on tin hat firmly tightened as I type)
uly
The Louden Makeover
* being repainted at present *
not many of us live close to Celtic park so incur costs getting to and from the park for tickets…
Severe oubreak of Declan appearing now…….
Outbreak ffs,lol
Lennybhoy, a couple of things:
A NewCo under probably won’t have to put up security if it’s under new and (relatively) reputable ownership. HMRC require this of companies that are assessed as high-risk for tax payments. If the new owners capitalise the business adequately – working capital is another thing they’ll have to finance up front – and don’t have a track record of dodging their tax bills, HMRC would have no particular reason to require a security – though it’s easy to see that they might take a rather harder line in this particular case.
TicketUs has a claim only against Rangers, not the owners of a NewCo; that was made clear in Lord Hodge’s recent judgement. They may have some security over Liberty (if not, they are idiots), but even if so, they can only recoup funds post-liquidation from the rental stream of Ibrox and the training ground, or by selling one or both properties. So if NewCo ends up as the tenant of these properties, it won’t also owe money to TicketUs.
I wish I had worded that last sentence differently! ( the first 2 words anyhow)
Just got an e-mail about Ki and his availability to play in the CL competition, due to him playing in the Olympics.
Obviously down to any pressure the club put on the players, but the mail suggested there was a conflict between the associations rules and there eligibility to play in both , can anyone enlighten ?
TnT
you will be too busy with the new member of the family to get time off for attending paradise….
THE EXILED TIM
I think its just for the qualifiers as Olympic comp will end in early August. FIFA had previously said they won’t force any teams to make players available for Olympics as technically not a FIFA (or other football org) run competition but have now relented and said they will make clubs release any U23 players selected for their national side’s Olympic team.
Mort
twists n turns on 3 April, 2012 at 17:21
and
THE EXILED TIM on 3 April, 2012 at 17:26:
Sorry Bhoys cannot agree, if you buy a ticket for a game, you weigh up the cost of getting there before hand. Alternatively you seek out a Supporters Bus to travel, or as some have done who live further away than Livingston and travel to CP regularly, post here and ask if a Bus or individual traveller is passing near where you live.
Not having a pop at you Bhoys but to charge a Celtic Supporter more than face value, even to cover in part or full your costs is totally unacceptable.
Keep the Faith!
Hail Hail!
You can buy a Damien Hirst deck chair for a few grand at his latest art auction. Well worth the money. My personal favourite is the broken brick; Hirst says of the brick: “It represents the irrevocable dualism of the human condition.” Genius.
Love the Beeb SP(hel)L page.
Two headlines on the huns.
One says that Murray has negotiated away £17 million of their debt (‘just like that’ – Cooper style). The other says there’s a ‘race’ to buy them.
So no crisis there then.
sigh…
BT
Getting close…they say any day now. However, I have told them it will be the 14th. Grand National day. (Chris was born on Derby day). It’s written in the stars.
at least mini was 6th April,
bet Papillon next day in the National.o))
Lennybhoy
I regularly purchase tickets that have to be posted over here and there are always additional costs incurred.
More often that not if I can’t make it for whatever reason, the ticket is passed on free or no more than face value.
Mort
I think we may have underestimated our opponents’ resourcefulness.
Word reaches me that a fund raising event in Lourenzos bar in Dunfermline on Sunday night raised huge sums of money for the Rangers’ Fighting Fund.
The Sash Bash featured music by the Young Cowdenbeath Defenders Flute Band –Pure Blood and Thunder from Fife; and admission was £5 at the door so a very considerable sum of money was raised.
I don’t have confirmation as to whether or not John Yorkson was there but it looks as if the gloves are off and the fight to save Rangers has taken on a new intensity. A Pars/Huns axis looks to be taking shape.
We should be worried.
flipping heck.. she was the 7th…
nurse need more solpadol…
They were formed in the 1930s to stop Scotland being over-run by Irish Catholics and keep Scotland a protestant version of the Irish Republic they have not changed much.
a href=’http://www.telegraph.co.uk/news/politics/9181739/Alex-Salmond-under-pressure-to-sack-Lyall-Duff-over-Catholic-midwife-attack.html’ target=’_blank’ >SNP Agenda with Catholics
Salmond has still never since he came to power had a Catholic in his Cabinet as a Cabinet Secretary reminds me of the RFC excuse we haven’t found any catholic good enough
twists-there would be a few twists and turns wi that :}
Lennybhoy
I hear you and know you are not having a go Bud. I fully respect your view. I would never do it myself (sold Seville ticket at face value having been offered an awful lot of dough for it) but I don’t know the financial circumstances of the seller and don’t feel £2 is excessive. We can move on.
Interesting.
an anagram of ‘TimBhoy Profits’ is “Birth of I’m to spy”
He is a hun, sent from FF.
TrueStoryCSC