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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Cannot help the recurring thought that the timing of their drawn out demise is SuperNatural.
A most surreal Lent reaching it’s conclusion…
Jeg er Neil Lennon-Greeninbingley on 3 April, 2012 at 20:53 said:
I don’t believe that this is the case where a list is concerned.
TSOAL
You got something against Baldy Hairies?
Bourne
im in the hairy going baldy camp
TSOAL
Ha – Iniesta’s in the hairy going baldy camp nou, anaw nou.
When do tickets go on sale for gers game? I’ve got a season ticket including gers game but my son has an under 13 £50 ticket where you have to purchase ticket separately…..
Still can’t see the point of the assistants at the side of the goal ??
Easy money I suppose…..
new article posted.
Did anyone see the news item that said ice cream prices could rise by 10% due to the poor vanilla pods crop?
Luckily supplies are already in.
Bourne
Class
….PFayr on 3 April, 2012 at 19:22 said:
HT
possibly
however ..i think the trip back to hun infested Ayr could be problematic when i`m drunk and exhuberant :¬))
=============================
Only the Maket Inn in Ayr will be safe on Saturday after the game.
Preswick the best bet. Scruffy Duffy’s bar on the corner along the main road always got a decent atmosphere. Less vicious Huns around Prestwick, save for the trolls that gather in the Central bar around Rangers games, as it’s owned by Hugh Burns, former Hun full back.
The old Italian masters are resigned to their fate.
Hmmm wonder what we could offer ole Clarence moneywise to finish his career in the Hoops?! Whit an auld haun he would be to our young team.
And he could get his 4th CL winners medal with another club….lol
T4
Great ovation from the Nou Camp,for ex Real Madrid player Seedorf,what a footballer.
Iniesta will have aPuyol hairdo in two weeks
new articile im off
Ernie Lynch
the Lord Advocate is a member of the Scottish Cabinet. Frank Mulholland and Elish Angolini are both Catholics. Fact not spurious rubbish.
pauloantony on 3 April, 2012 at 20:41 said:
think that’s about right, but cfc will not be f*cked, the other clubs want a better share of t.v money, they don’t want to touch our gate money.
why? because hearts, aberdeen, dundee united, hibs would be worse off overall.
and i have to say i agree with a better, even share of t.v money, the reason our leagues is gash is because of to much greed and self interest and scarce resources being unevenly distributed.
all clubs should put 50% of european t.v. income into pot for distribution at the end of each season.
we should give back 50% of all income generated through tickets sold to away fans (all clubs that have gates in excess of 30,000)
we should all recognise that we need each other.
we should have a 14 team league
we should have relegation play-offs
we should have 1 european play-off.
we should relegate 2 automatically
we should move to summer football in a gradual shift over 2/3 years
we should give at least 200k per season to every 1st division team each year.
will it make a difference to our football? i think these plans would make a considerable difference to football in scotland.
initially celtic and possibly rangers would be the biggest losers, maybe to the tune of £1.5 million per year but as time went on and the league became more competitive and attractive to fans and t.v every team in the league would benefit
“hybrid liquidation..”..now your having a laugh ..its like saying your a little bit pregnant !!!!!
No eufa license for the ragers …tramps in Europe rejoice !!
hamiltontim.
Ahh.. The vivid colours of the Cuisenere rods,the intoxicating smell of plasticine.
Hymns,Black-Baby Cards,and that delicious Free Milk…
And the Globe was still reassuringly Pink…
( Mark Binnie did it ,Miss…!! )
Chewing gum injured for Barca
i will forever be a celtic fan and supporter, i will always follow my team, scottish football has been corrupt since day dot. no reason to walk away now, its just the case that we and the rest of the world will know the truth and no amount of denial will work.
Gerry @ 20:31,
Looks like the MSM got it right for once CLUB 9 didn’t do due dillegence, well certainly not in the detailed way that SDM would do.
Think they might have been duped!
Hail Hail
@celticrumours: Ain’t no party like a Club9 party – http://t.co/yA1YbSnB
Defo confused now.
One year later and still telling it like it isn’t
Craig Whyte will give considerably more cash to Ally McCoist for players than first pledged. Source close to the deal tells me.
@ ChrismclaughBBC 08/04/11