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.
Thanks to everyone who has bought a hard copy of issue 7. Order your copy for delivery by clicking on the link below for news and views from Celtic supporters.
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What is an MG01?
PLease explain for us who don’t know.
joe filips hairbob why would they be buynig the huns if they werent interested in football. there is no way they would get mixed into somewhere instituional like the rangers if they werent football men. they are very probably rangers men. thats what my buddy says and thats why we need to be worried. he was bang on about white by the way
snake its a motor chief
BT
What a clown i am I’ve just realised the season will be over when i get home :-)
To hell with Chinese proverbs.
Who needs them when we have Declan?
MWD
Sorry, my mistake, I meant saturday, The Tap & Barrel will be packed to the rafters, so looking forward to it.
bountyboy u are gentlemen sir
.
BlantyreTim..
Re; Back..Get yourself into Hydrotherapy..Its the Only thing that Will Help You and NOT Have Side Affects..11yrs of Morphine Trust me I Ken..Ken..
001Bhoy
Paul et al.
My apologies if this question has been answered already but I’ve barely been on the blog for the best part of three weeks bar a day last week :-(
Would it be wrong of me to assume that the SFA adjourning the hearing into rfc(IA) til made to late April is linked to the potential release of the findings from the FTT prior to the now adjourned hearing?
My biggest concern in all of this has not actually been the financial mess itself but rather how all of it is handled by those supposedly in charge of the game in Scotland. Maybe it’s my paranoia that feeds the concerns I have over the willingness of the authorities to apply the laws as they ought to be applied. Maybe it’s my naiivity. Or maybe it stems from my long held wish for us never to have to play them again.
I love my Football Club but dear God I have nothing but contempt for Scottish Football.
god bless her majesty
mwd do you know what the Chinese for hun is?
Well it is… 魂.
Kind of cute isn’t it.
Auldheid – I suggested before on here that a new SPL1/SPL2 structure would be offered as the compromise for all parties concerned, whether we the Hoops fans like it or not.
14 or 16 team leagues with regional leagues below that and play-offs.
Newco get immediate entry into SPL2 and promoted to the top flight within a year.
Nothing less will be acceptable to the gang of 10 or Sky.
IMHO, we’ll have to swallow it!
TTTT
Auld Neil Lennon heid on 3 April, 2012 at 12:39 said:
SPL2 more likely to be in place for 13/14 season, 2 leagues of 14. If they are liquidated they will spend year 1 in division 3, year 2 in SPL2 then back with the big boys in year 3.
This is providing they are not voted directly into the SPL next season which is the most likely scenario given the noises from elsewhere. Given who sit on the SPL Board I would guess they would win a vote 4-2 with only Eric Riley and possibly Stephen Thompson voting against them.
s, revenue & customs
I seen your previous post 31003
Dont do it again !
‘s underpants.
Paul67 – It seems clear to me that there has been a deliberate campaign in the Scottish media to vilify Craig Whyte in an attempt to bully him into, ahem, walking away.
I am shocked that anybody of a Rangers persuasion could be so undignified as to seek to undermine a man’s lawful property rights.
Hold fast, Craig. (thumbsup)
BT
It’s all those years carrying Oldtim67 what’s done it :-)))
ernie @ 12.06 (previous article)
I wasn`t aware of that.
JJ
I love you declan. There–I’ve said it. Yon tosser James Joyce is pure ragin’, so he is. he’d never get near your poofr–pross–profundly–what you do chief. I, am, like, totally in awe.
Declan continued.I Hit the return key by accident what I was saying was that Craig Whyte says he will not sell to Paul Murray and his consortium now this may be challenged so another expensive court case in the offering which is just what they .dont need.On top of. that Paul Murray has been deemed by the football authorities as a not fit and proper person to run a football club.So any Rangers fan who thinks his club will be back on there feet sooner rather than later is deluded.H.H.
Declan….
Can i book you for a party?
Do you do after dinner speaking?
Are you kenny clark?
Serge on 3 April, 2012 at 12:37 said:
Failte for me.
Timabhouy on 3 April, 2012 at 12:46 said:
……………………..sorry………..
Deccy, you’re some man for one man.
Serge on 3 April, 2012 at 12:29:
I do…have a set of Hoops and the green and grey away top with Lennybhoy and 18.
Keep the Faith!
Hail Hail!
Declan – everybody thought white was a billionaire business mongol
I’m going to buy your book when it comes out on Kindle. (thumbsup)
Ernie – I take it you can substantiate your response to JJ ?
TTTT
NewCo’s line-up for their first visit to CP next season:
Neil Alexander
Lee Wallace
Kirk Broadfoot
Ross Perry
Steven Whittaker
Sone Aluko
Lee McCulloch
Rhys McCabe
Kyle Lafferty
Steven Naismith
David Healy
Subs:
Scott Gallacher
Chris Hegarty
Andrew Mitchell
Jamie Ness
Lewis McLeod
Kane Hemmings
Andrew Little
Rogueleader; check your twitter link….
MG01 link here (from easyjambo on RTC) – someone on here can probably explain the implications of this better than I understand, but is it not a ‘get-out’ to allow Whytes Rangers “group” company to transfer all assets to Liberty Capital at any point (in case of something like, oh, I dunno, liquidation?)
http://www.scribd.com/doc/87794805/RFC-Group-MG01s-21-03-12
anyone?
31003
Apology accepted !
but dont do it again
as people might
think you are a hun.
Mic1888
Will catch up for a few pints next season mate, I’m normally in there after the games, McChuills before KO
HT
he is a lightweight after all.. o))
Declan, I used to have an MGB Roadster. I swopped a Pentax camera for it. My teeth got knocked in by an ex girlfriends father, but I was driving a Ford Capri at the time. Not strictly at the time when my teeth got knocked in, it happened in a house. It was many many years later I got the MGB. In between the Capri and the MGB I had an Escort and a Datsun Cherry van, but not at the same time. That would be daft cos you can`t be in 2 places at the same time so whats the use of 2 motors? Although now I do have 2 motors, but one of them is a van. amazingly co-incidental. I use this for work. I use the car when i`m not working, unless i`m in the pub. They don`t have enough room at my local for cars. I hope this clears up any confusion, and your mate is right, though I think he may be a hun. I know you`re not, cos you have told us just how loyal a tim you are.
SoS
physio Thursday..
BigChipsUK – Mine’s a double on 3 April, 2012 at 12:51 said:
There’s no way they’ll hold on to Aluko, Whittaker, Naismith or Wallace.
I see I’ve stumbled into declan quick news,I’ll go n look for the Celtic one.
raymac do you no me bud. james joyce from howgate avenue was in the year above me. he was a wee blouse. we used to wallop skwash balls at him till he greeted. he used to go up the road covered in purpel brooses like somebody had been throwing plums at him. we once skanted him and threw him into the staff room he didnt come back to school for a week after that so he probably still is raging at me. tell him big dec and beano said hello and ask him if he still has that mole on his backside. haha