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.
To read CQN Magazine go to the dedicated site the graphic below is just an overview.
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medtim on 3 April, 2012 at 18:18 said:
Let’s hope so….
So Rangers turned down a bid for Naismith in the region of £2 million,,,,aye right lol lol lol
hail hail
The propaganda that is being shoved down our throats on a daily basis,,,starting to make me feel sick!
Hail hail
PFayr on 3 April, 2012 at 18:15 said:
1.Somehow or other Ticketus will have the protection of Whyte’s floating charge.
2. If their contract is threatened they will litigate. Their counsel, Clancy, made that fairly clear. That litigation could take 12 -24 months to resolve.
This is all moving along nicely now
Sean Batty with the huns club tie on
Clyde is hilarious. Darly King talking about a “hybrid” solution. They liquidate the assets but not th club?
They are making it up as they are going along.
aulheid
is King a Prius ?
Now on Snyde they are saying that they doubt the possibility of a deal being struck with HMRC,,,,,shucks,,you dont say lol lol
Hail hail
This is all becoming priceless again! Snyde bams sound close to tears,and the £1 is dropping,big time,for the orcs. I think they’re about to turn within and rip each other apart,having almost exhausted all external avenues.
This is their nature… and it’s all down to themselves.
ernie
i agree
however their lawyers appear to have failed to recognise the difference between Scots and English law re the conferring of real rights in property
Grant Russell @STVGrant Reply Retweet Favorite · Open
Rangers have already been told they will not get a UEFA club licence by both the Scottish FA and UEFA http://bit.ly/HithwW
Retweeted by Vagelis Georgariou
Tweet tweet went the Birdie…
Surely it was in the best interests of creditors to get some cash for the diver rather than continuing to pay him while he isn’t fit?
Auldheid, if you’ve had a chance, what was your take on the statement Neil Doncaster made to Channel 4 News this afternoon?
BT = BADDAD
Auld Heid
what would the club be without any assets …what an eejit
CF
what did he say
i`m not sure about this guy
Auldheid,
Loving Clyde tonight. Darrell sounds like he finally knows the game is up.
Darryl King really does sound like he’s choking back tears! lol!
Mind the good old days of 3pm on a Saturday for fitba……………Oct 1 2005 at livvy was the last time we were afforded that luxury in the spl.
Reality.
http://sport.stv.tv/football/scottish-premier/rangers/302538-rangers-will-not-get-uefa-club-licence-insist-scottish-fa/
For an away game!
Celtic_First on 3 April, 2012 at 18:32 said:
Auldheid, if you’ve had a chance, what was your take on the statement Neil Doncaster made to Channel 4 News this afternoon?
What did he say in his statement???
Hail hail
“NO Huns in Europe! Oh there’ll be no huns in Europe…..”
*collective European sigh of relief*
Can they sell the dream as an “asset”?
Before last year or so Naebalance was yellow stained pants…maybe this was a purple patch in the flashing pan?
They should have taken the lolly.
Starting to sound like Dazzle.
It’s nice that they are thinking of our well-being. The trophy can’t be given to us at the Huns game because of the reduced number of Celtic fans. This is to accomodate the larger alocation to the away support.
I hear…..
The trophy presentation will happen on 13 May against Hearts. The Rangers game will have a fewer number of Celtic fans and the St Johnstone game is midweek, which causes travel problems for many fans.
No comment from Celtic until someone had Scott McDonald secured in a box.
ibleedgreenandwhite1 on 3 April, 2012 at 18:25
Step back,
It’s the same propaganda, that has gotten them into the mess that
causes them to spout more propaganda, it’s a vicious circle.
Clueless pundits, clowns, ex pro’s with no remote knowledge of financial accountancy let alone how to read a balance sheet.
They are pandering to ‘The Big House Must Stay Open Brigade’, and by doing so they complete the circle.
Paul67 on 3 April, 2012 at 18:40 said:
I hear…..
The trophy presentation will happen on 13 May against Hearts. The Rangers game will have a fewer number of Celtic fans and the St Johnstone game is midweek, which causes travel problems for many fans.
No comment from Celtic until someone had Scott McDonald secured in a box.
Boom boom,,,lol
Hial hail
So we could have a five week gap, – before we get the Trophy.
Another first for Celtic?
bournesouprecipe on 3 April, 2012 at 18:41 said:
ibleedgreenandwhite1 on 3 April, 2012 at 18:25
Step back,
It’s the same propaganda, that has gotten them into the mess that
causes them to spout more propaganda, it’s a vicious circle.
Clueless pundits, clowns, ex pro’s with no remote knowledge of financial accountancy let alone how to read a balance sheet.
They are pandering to ‘The Big House Must Stay Open Brigade’, and by doing so they complete the circle.
I find it astonishing that they are able to keep a straight face when we all know they are lying through there teeth!!
Hail hail
Without even listening to the details this St Mirren bloke Ken is lying through his teeth.
The Latest from Phil Mac,, lol
http://www.philmacgiollabhain.ie/the-man-from-auntie/#more-2380
Hail hail
i wish this guy all the best but i have yet to impressed by him
Neil Doncaster talkin to C4…
http://www.youtube.com/watch?v=_IXVO_bt_8s
i had email correspondence from his colleague, Iain Blair, and he seemed sensible, tho i have not met him and indeed dunno what he does or how well he does it
Dawell is a broken pygmy the night.
Funny how the pundits are telling us how poor refs are after a decision against Rankers and a decision in our favour…couldnae make it up.
Will they still want the big house to stay open when the landlord is the bogeyman? All roads lead to ruin.
I’m really delighted to be paying a licence fee for the new ‘Ragers’ media…is that irony?
What an embarrassing organisation.
Sir Paul
When Ah see awe the Jockeying,by various Syndicates, that is being faithfully REPORTED.. tae get in oan the Action.. tae Buy intae a Flopping.. ENTERPRISE… such as is, the G.A. .
Ah am Astounded.
And Ah think tae Masel..
Hmmmmmmmmmm????
Ah hiv bin an active Investor. fur Donkeys..in Various and Disparate Enterprises.. and Ah kin Honestly say..
Ah never, ever.. Pit Ma Precious Money intae any INVESTMENT. whitsovevah..
Unless. there wiz the STRONG PROBABILITIY.. (N.B… NO .. POSSIBILITY) of, At least.. even , should… the Crick ..or.. the Hens Stoapped Laying..
Of Getting at Least.. A R.O.I.. at the end of the day.
Frankly, Ah never hiv Hoid such a Bunch of Baloney, Being
Reported in the Newsies, concerning the Great Ibrox Chinese Boax.. Mystery.
Ah felt at the Time ,when. Whytie, foist Came oan the Scene..that his showing an interest ,in the Financial Mess ,which Zsa Zsa , had Left behind… that..
Whyite,wiz eethur a Fool or a Mug..
Ah couldnae Mak up Ma Mind .. Which!
Let me say this.
There is Nae Money tae Be Made in Investing in a Fitba’ Club..
PERIOD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Howeveah..
There is Money tae Be LOAST.. if wan is .. Callow enuff . tae Imagine, that there is!!!!
Oor Guid Freen…Desmond ,knows this.. very well..
His Investment in Celtic.. Despite. Claims by his Detractors tae the Contrary..
Has Made a SENTIMENTAL Investment,in a Club which he Supports…
Sure.. If.. Celtic Left the S.P.L. Hell. then. Desmond would indeed.. Probably.. get.. at least a R.O.I.. oota his sentimental gesture..
But, Desmond ,is Hard Heided enuff..and.. Mair IMPORTANTLY.. is mair than CAPABLE,enuff… tae Afford tae Take
tak his Financial Lumps, should that very nebulous Possibilty, of Celtic, being Allowed tae Leave the S.P.L. becoming a Reality.
Na.Pal..
Ah jist canny understaun whit is going oan..
Whit a Fuss aboot.. well.. Nothin’!
Heck.. right noo. that is Plenty of ither Places..where Wan kin
Invest.. and Lose wan’s Financial Back-Side..
Withoot..
Battling wi’ Four or Five Ithers ,in order tae hiv the Privilege of throwing wan’s Money doon the Ibrox Toilet!!
So whit is The Big Attraction,in Throwing Yer Money.. doon the
Ibrox Toilet?
Ah jist Don’t get it!!
Kojo
Still Laughin’
and
Gotta Go..
Seeya, Latah.
just listened to last night’s SSB – the one with Terry and Rieperman
it sounded like Gerry McCulloch with shug and jduffy have fully agreed that yes its a done deal – rfc are straight in to the SPL next season, no questions asked, and lets move on
as if what the cheats have done doesnt matter cos they are the people and we dont care what you say, or even if you exist !
will CFC fans call it a day if rfc get straight back in ?