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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710 Comments- Pages:
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bankie
Their heeds will be frazzled, what with dead clubs, court cases and riots.
Put them down would be the kindest thing to do :>)
tomthelennytim on 3 April, 2012 at 14:02 said:
Courtesy of slimshady on RTC.
“According to the records thi”s company was about to be struck off last year but it has since been acquired (don’t know when) by Capital Shopping Centres Group PLC which is a business of substance, owning Braehead, Lakeside and numerous other big shopping centres.”
======================================
Strangely enough one of the Blue Knights has links to this company, co-incidence or what?
tomthelennytim on 3 April, 2012 at 14:02
I think there’s some name confusion going on here.
The company getting the rights to Ibrokes and Duped Park is NOT the giant shopping centre mob. The beneficiary ia a company directed by MBBCW’s old man (Thomas Whyte), with that company having a very similar-sounding name to the company owning a string of flagship shopping centres.
FF
Bizarrely enough – an ML5 colleague mentioned Whyte’s father’s name a few week’s back – saying he had a part to play. I took it to be in regards to the ticketus thing. Curiouser and curiouser…
U
Hehehe – I can see how the MBB has been so successful. I would have probably named it Nettoh or something.
tigertim on 3 April, 2012 at 13:08 said:
I’ll add to what I said earlier by repeating thsi from rtc.
The line that the MSM perpetuate about an SPl parachute has still to be challenged. There is a debate here
http://kerrydalestreet.co.uk/topic/8658278/1/
that shows Doncaster’s attitude to questions and suggests he has briefed the MSM on the outcome that Donacaster wants. Remember his pay is dependent on a commercially succesful SPL. In short his motivations are suspect.
That is why the SFA must take charge and govern and by that I mean enforce their rules to ensure sporting integrity is not damaged/ destroyed.Platini has made it very clear how high UEFA value maintaining that integrity and they are watching this saga (as are Celtic) but must wait until the FTT passes judgement to see what the SFA then do.
On the post FTT decision front perceptions will change if HMRC win, Rangers dodge the tax owed through liquidation and Alex Thomson (or rtc) unveil just ho ebts were operated by Rangers, not to mention the possible improper player registration issue.
The case for justice will be so strong thereafter those who try and subvert it will recognise they are fighting a losing battle, but it has to wait on the FTT decision.
Infinite patience produces immediate results.
So Rangers FC are currently owned by Craig Whyte´s octogenarian father and Dave King’s septuagenarian mother. The ludge will love that one.
Hail Hail
Chris McLaughlin @BBCchrismclaug
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FavoritedFavorite · Close Open Details BBC understands Craig Whyte has agreed to transfer his shares to Blue Knights consortium. #Rangers
@RamanBhardwaj RFC administrators reveal Rangers have applied to the SFA for a UEFA club licence
Chris McLaughlin@BBCchrismclaug
BBC understands Craig Whyte has agreed to transfer his shares to Blue Knights consortium. #Rangers
9m Chris McLaughlin@BBCchrismclaug
#Rangers administrators say talks have taken place with #SPL #SFA and Uefa about consequencies of newco.
Chris McLaughlin@BBCchrismclaugReply
#Rangers administrators say 4 possibly 5 bids expected tomorrow. BBC understands Brian Kennedy one of the bidders.
Last night on Snyde a caller tried to explain to Flanders that if there was a TV contract stipulating 4 “Old Firm” games a season then it would be akin to Corporate control of the Scottish League. He stated that there was no other league in the world where this happens. Keevins dismissed him as a wacky timternet looney. His point was: if the SPHell do change the rules to automatically accommodate a Newco straight to the top table because of the Sky deal that is a case of undue influence. As others have said before: what would happen if Hun Newco were bottom of league next season- would the SPHell then refuse to relegate them because of the TV deal?
If any of these scenarios occurs then UEFA would have to intervene in the praetorian confederacy of the Scottish football authorities and their crooked and nefarious racket.
alex thomson @alextomo Responder Retwittear Favorito · Abrir
Craig Whyte tells me any notion he’s selling his shares to PM is ” absolute nonsense.”
!!Bada Bing!! on 3 April, 2012 at 13:50 said:
In an SPL2 scenarion the consequences for Newco will be no UEFA for at least 3 years and a lower divison start and carrying the stigma of only being possible because they dodged their taxes. Glasgow Dodgers rather than Glasgow Rangers.
Oldco will still face the consequences of their behaviour and removal of titles at least for 2003 and 2005 for using ebts to gain unfair advantage if not all for improper player registration as well as being know as the club that stole its way to fame will be their lot.
As I said above when the ful extent of their tax skulduggery becomes known, there will be no one defending them. The club that died from no shame.
alex thomson @alextomo
Craig Whyte tells me any notion he’s selling his shares to PM is ” absolute nonsense.”
Hmmm
Mort
If it’s true that the administrators have started talking to the SFA, SPL and UEFA about the consequences of a newco, it’s surely time for Celtic to issue a statement about the need to ensure the integrity of Scottish football.
So Alex Thomson is in contact with CW????? Did we know this?
79caps on 3 April, 2012 at 14:29
There is no need for Celtic to do anything yet. I prefer the word dignity though when Celtic do make their statement.
LB
from STV twitterers
Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
RFC administrators reveal Rangers have applied to the SFA for a UEFA club licence
Grant Russell @STVGrant Reply Retweet Favorite · Open
Highly unlikely they’ll get one by all accounts, but Rangers have applied for a UEFA club licence for 2012/13
Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
Administrators also reveal they have spoken to SFA, SPL and UEFA re consequences of a newco
Raman Bhardwaj @STVRaman Reply Retweet Favorite · Open
It’s understood the administrators at RFC rejected a bid from West Brom for Steven Naismith last week.
^^^^ Clearly the dodgiest admins ever if that’s true
Andy Coyle @STV_Andy Reply Retweet Favorite · Open
Wouldn’t imagine Rangers’ UEFA licence application would succeed but it’s highly unlikely, in my opinion.
79caps – it is a too soon for Celtic to enter the fray but I suspect the day is drawing close.
alex thomson @alextomo
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FavoritedFavorite · Close Open Details Craig Whyte tells me any notion he’s selling his shares to PM is ” absolute nonsense.”
alex thomson @alextomo
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FavoritedFavorite · Close Open Details Says he’s not for walking away and wants to see CVA to exit administration
Sounds like things are heating up.
do the administrators have any business asking questions about a Newco ? My initial thoughts are it’s nothing to do with them ?
To summarise – I haven’t got a clue what is going on.
The FTT is on schedule and will be announced shortly before the 20th April. So the creditors will get the full picture which seems fair enough.
If UEFA back a parachuted Newco into the SPL I fully expect Dermot Desmond to keep the courts so busy for so long that Scotland will not have a European or international presence for over a decade.
If that was not to happen then I would need to move over.
WWF not for me.
Hail Hail
Bhoys WTF is going on! Applications for UEFA licence, Craigy, allegedly, handing over his shares !!! Confused
RogueLeader on 3 April, 2012 at 14:19 said:
@RamanBhardwaj RFC administrators reveal Rangers have applied to the SFA for a UEFA club licence
——————————-
They should be told to apply for a club licence first!
I think UEFA will tell them they have unpaid tax at 31 March which is why they are in administration so pay it and UEFA could not countenance an application until the FTT decides on ebts.
No way would UEFA take the risk of allowing a club with no audited accounts and in danger of liquidation being allowed into UEFA competitions.
I think it is maybe something the administrators had to do in order to satisfy enquiries from possible buyers.
“Accountability” has to be the watchword.
They can apply for a license. Doesn’t mean they will get one. Or even be around to use it …
oglach on 3 April, 2012 at 14:35 said:
transferring shares, selling shares, not selling shares
three stories from journos working for BBC, STV and Channel 4 in the last 20 minutes
you takes your pick
BBC’s Chris McLaughlin is the new succulent lamber in chief. The amount of piffle the man comes away with is staggering.
Although in these days of dire fiscal penury at the bigotdome it more flank muttoner than succulent lamber.
rangerstaxcase says:
03/04/2012 at 2:35 pm
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I just spoke with Alex Thomson. He spoke to Whyte less than an hour ago. Thomson believes the “Whyte giving away his shares” story to be rubbish.
Auldheid
But an application for one pending will suffice a prospective buyer
is the SFA being complicit in this not illegal ?
Hail HAil
Duff & Phelps, administrators of Rangers Football Club, issued the following statement today.
Paul Clark, Joint Administrator, said: “As administrators we are obliged, as part of our statutory duties, to put forward our initial report and statement of proposals to creditors by April 5. The report will be uploaded to the Rangers Football Club website from that date.
All creditors will have the opportunity to vote on the proposals. In essence, the proposals consist of a set of legal and technical resolutions which relate to routine housekeeping matters, for which the Joint
Administrators are required to seek creditors’ approval. The proposals if approved, will allow the Joint Administrators to continue the administration process until an appropriate exit from administration can be found.
Advertisements will be placed in relevant newspapers tomorrow, giving notice of a meeting of creditors. This will not be a physical meeting of creditors. The meeting is to be held solely by correspondence in accordance with Rule 2.28 of the Insolvency (Scotland) Rules 1986. Voting forms and statutory notices along with the Joint Administrators’ statutory proposals will be available from 5 April 2012 from the website.
Votes by correspondence must be submitted by 12pm on April 20 and the process is part of standard administration procedure. For clarification this is not a creditors’ meeting at which a Company Voluntary Arrangement will be proposed, nor will any other form of exit from administration be determined at this juncture. Such matters will be formally considered once the sale process has reached a conclusion.”
AWE NAW
Struggling to catch up,a lot of financials that needed looking at-MG01,etc-but I think yer outed!
And congrats BTW,superb stuff.
I prefer tweets like this one;
alex thomson @alextomo
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FavoritedFavorite · Close Open Details CW reiterated his point that he is due £30 million and wants his £30 million
We are all aware that Media House are doing work for the administrators aren’t we?
Looks like Chris McLaughlin has just had his ‘Chick Young’ moment
Was Pawel Brozek bought by us to ensure that Cousin would happen and to embarrass the SFA eventually ?
Hail HAil
If as I saw on here there is a meeting between all the creditors on 20th of April do you think it would be possible to put forward Declan to chair it, would drag on for years but would be funny. SKY could broadcast it on pay per view.