It wasn’t supposed to be this way. Craig Whyte would not have expected Champions League football when he worked on the deal to buy Rangers last spring, but, by his own admission, income from the Europa League group stage was in the budget.
Winning the league came as a surprise late in the process and may have fuelled some summer transfer bids but income was about to fall well below expectations. Ally McCoist won only one game in four cup competitions, against Arbroath, season ticket sales didn’t bounce and with no serious income streams open, Rangers were set for a seriously low income season.
In addition, the injury to Steven Naismith robbed Rangers of what I understand would have been a £5m sale in January.
People have tried to assert that Whyte’s plan for Rangers was to liquidate the company all along, this is clearly not the case. Rangers were moribund while the First Tier Tribunal (FTT) was yet to report but Whyte planned to run the company, without reverting to administration until and perhaps beyond then.
As well as having to deal with the income shocks resulting from multiple on-field failures, Rangers were hit with an expenditure shock. The FTT was delayed from November to January. If it had proceeded as planned in November it would have reported in January. The delay was crucial, Rangers were going to spend a lot more money before the verdict was announced.
If the verdict arrived as expected in January, and Rangers won, it was game on. They would have been in a position to borrow like any other club and could have raised fresh share capital. There would have been no administration. This was the preferred outcome, Whyte would have emerged with his reputation intact and with a valuable football franchise for the outlay of exactly £1.
If they lost, Whyte could have presented a fait-accompli to the world.
He could have explained to the Rangers support that the total tax liability was “likely to be around £75m” and that there was no point putting fresh investment into a black hole, which was inevitably going to lead to liquidation – all for misdemeanours that occurred before his time. The support would have been distressed at the death of their history, but, crucially, they would not have blamed Whyte, whose reputation would still be intact.
He would immediately have applied for the 10 day grace period to consider appointing an administrator and used that time to tell the SPL and SFA that he could re-emerge with Newco FC within days and allow the league programme to complete as normal. He had security over the stadium, would be in a position to re-employ the players and would be able to honour financial commitments to other clubs, while securing the television and sponsorship contracts.
Public sympathy would have been behind him, Sir David Murray would have carried the blame (perhaps correctly) and I believe only Celtic would have voted against him. Newco would have been back in the SPL and, if the Daily Record’s reporting of Whyte’s thoughts on penalties are anything to go by, he expected to be docked a comfortable 25 points.
HMRC forcing Rangers into administration this month created enormous problems. Administrators Duff and Phelps are now in control and opened the club’s finances up to scrutiny.
As soon as it became evident that he securitised season ticket money from future years, three days after buying the club, placing the money into his own bank account, not that of the football club, Craig Whyte’s methods were subject to derision and outright disgust from many angles, most importantly from the Rangers support.
As things stand, Whyte cannot slip away. He has to stand with Ticketus, who will hold a security on Ibrox through one of Whyte’s companies, and he stands to gain an enormous amount of money for a year’s hard work. Ticketus are also in for the long haul, they have coughed up over £20m and will need a sizeable commercial return.
Many observers have noted that this has not progressed as a normal administration. It’s not a normal administration. The secured creditors (Craig Whyte and Ticketus) need to sell a lot of tickets beyond administration, either as Rangers, if they are successful in the FTT, or as Newco, if they lose the FTT. Selling a lot of tickets is a really tough challenge right now and will be made considerably more difficult if there are swingeing cuts made to the club staff and infrastructure now. Their interests are considerably best served by keeping Rangers as buoyant as possible.
Even if they manage to feed enough cash to the administrators to keep Rangers playing football until the verdict is delivered, the opportunity to present the league with a fait-accompli has gone. Everyone expects Rangers to fold and will have been busy working on a contingency plan.
Any goodwill that Whyte hoped to harvest has also gone, he is seen as a pariah, without friends within the game, in the political world, the media or the Rangers support. When he looks to build a consensus, there will be no advocates for his position. Quite the opposite, people want rid of him.
The on-going police enquiry and his interesting relationships with the Insolvency Service and HMRC will only cloud matters further. For all the bluster on these subjects, no one has been able to explain to me any illegal activities, in fact, most of the illegal activity he has been accused of are either perfectly legal or simply did not take place as described, but there is enough potential in this mix for many years of civil legal challenge, if not more serious issues.
Whyte and Ticketus now have decisions to make on how much extra skin to invest. Ticketus are in the game for a lot of money already and will be keen to protect their cash. It remains to be seen how much cash Whyte has in the client account at Collyer Bristow, but it’s clear that between them, Ticketus and Whyte were prepared to guarantee the administrators full wages and costs for the club for February.
The fact that the tap has been turned on 100% for the last two weeks suggests they have enough cash to run at a lower percentage for a while yet. Duff and Phelps will know how much money is available and will have an expected date for the verdict. It would be enormously bad judgement if they exhausted cash reserves before the verdict arrived.
As long as Ticketus investors hold their nerve, and the police don’t spike the process, Rangers will survive until the verdict. If they lose the verdict, and all expectations are that they will, what are we looking at?
As I said above, Whyte’s chance of presenting a fait-accompli has gone. He would need to go for a prepack liquidation but there are likely to be legal challenges to him making off with the assets of Rangers. At best, this would delay him for anything between weeks and years. Any police involvement would make matters even more difficult. If a negative verdict is delivered anytime soon, Rangers will cease.
Even if this happens, Whyte will still owe Ticketus a lot of money and will try to phoenix as a Newco. He will have the stadium and will be in pole position to apply for membership to the SPL or Scottish Football League.
A route back into the SPL in these circumstances would be difficult to achieve. The SPL board have the authority to accept a club into the league but I hear it is likely that, due to the importance of the matter, they would refer the decision to a vote of the entire league. Back in October I thought the fait-accompli was certain to be voted into the SPL, now I can’t see a Newco being voted in.
You would expect an application into the Scottish Football League to be accepted but there may be a rival bid. The ‘Blue Knights’ bid would not include Ibrox but have a number of options. They could ask to rent Hampden or Firhill, or could adopt a struggling lower league club, like Clyde. These notions are likely to be progressed but establishing a new club, without players or a stadium, would be an enormous challenge.
All of this would play out against a great deal of uncertainty. Whyte’s ability to sell tickets to Rangers fans must be in doubt. If a rival club wanted back into Ibrox in the future they would need to give the ultimate floating charge holder – Ticketus – the same kind of return Whyte has committed to. There is also the possibility of a lot more to come out about the old regime at Rangers, some of whom are behind the Blue Knights bid.
Even if someone gets a phoenix off the ground at Ibrox, keeping it alive will be difficult. The cost of running football games there every second week is considerable. Doing so, while repaying Ticketus, and competing against lower league (or SPL) opposition, will cut any football budget to levels not known in 30 years.
For now, everyone connected with Rangers needs to make confident noises but even if they die, their ghost is already in enormous peril.
945 Comments- Pages:
- «
- 1
- ...
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- ...
- 25
- »
up_over_goal, thank you, all corrected.
RanchoFranco, glad you see it that way.
MWD, actually, I laid all the facts out last night and pulled the article together after a review.
TheCelticOne, indeed.
Back to Basics, thank you.
mearns 2 milton, still on the same timeframe but they could come in any day.
GerryBhoy, cheers.
Finnharp-30, thanks.
Houl yer wheest, many thanks.
jimtim, aye.
Agent Craig, hmmmm. Maybe not.
Richie, cheers.
Billy Bhoy, thanks.
whitecrook tim, thanks. Will look out for her this evening.
Lennybhoy, aye, v interesting times.
Celtic Mac, send him to Wembley.
And here is one from back in the day when Airdrie went under:
‘Airdrie’s problems worsened when it was revealed that Rangers had arrested the club’s share of the gate receipts for Sunday’s Scottish Cup tie at Dundee United.
Ibrox chairman David Murray applied for an interdict, on behalf of his company Carnegie, for a debt of around £30,000 owed by Airdrie.
Mr Murray said: “I feel very sorry for Airdrie and their supporters but we’re running a business. We have given them repeated warnings and felt they were playing on our good nature.” ‘
I think the term is…necks like a jockey’s Bo****ks
Staple diet of residents from The Big House, the Big House Burger (served 24/7):
http://i40.tinypic.com/29egm5f.png
Paul67
Another superb piece of work from you Sir! Heading off tomorrow on a Caribbean Cruise with the good lady alongside Martybhoy59 and his better half. Hopefully we will be very close to the title by the time we get back. Hail Hail
Pablo
MALARKEY AND ANYBODY ELSE WHO WANTS TO MESS WI KOJO LEARN WAN THING IN LIFE.NEVA NEVA MESS WI A BHOY WHO KIN TALK THE GLESGA HARDMAN PARLE ,
FUR THE BETT’N IS HE KIN BACK UP THE TALK WI ACTIONS.
N’ ANOTHER THING ,HOW MANY O YEES.HUV GOT A DUG THAT CAN WRITE POETRY ,PREDICT CORRECT SCORES AT THE FITBA,A GUY WHO HAS BEEN OOT TAE DINNER WI ZZA ZZA GABOR ,N’ HER SISTER TAE.WHITS MAIR KOJO IS AN INDIAN NAME FUR MONDAY.OK SO NOO YEES AW KNOW.he also writes scripts fur films in HOLLYWOOD don’t ye know.loater n loater see yees later.
rebelbhoy72 on 1 March, 2012 at 17:42 said:
And here is one from back in the day when Airdrie went under:
With that in mind ,why would the Airdrie chairmen be shouting for ragers newco to be given a free ticket back into the spl …………..in second thoughts ,no need to answer .
What chance have we got
hail hail
If I was a Dunfermline player, firstly I would not be happy with the yorkson statement expressing sympathy for the hun , i think he should be concentrating on his own team not getting fully paid as a result of rangers recklessness
The pars players must be thinking that a few weeks ago they were trying to sign a guy and pay him 30k a month(the self same guy said that he could earn twice as much down south but goes home with nobody interested in him)
the amount of people over the last few weeks that are falling over themselves to get air time to sympathize with the hun is staggering
Kojo
Keep telling it straight dude. Your posts are always worth reading and are a credit to the blog.
It would be shame if you let the jealous groupies, who continuously harrass you in a group bullying style, chase you away from the site.
Keep rocking ojoK
maks sense to me
laughin’ still
What I’m finding a bit concerning is that the bad news is being postponed till the end of the week.
So, Friday they report the bed news.
The hoard go out get drunk and angry
Drunk and angry hoard look for victims
Ah I see, the powers that be are hoping for carnage, same old same old eh.
Raymac
Then.. Woiking oan the crazy Notion, that It also Includes Yersel… regarding, that Advice… whit ye ur Telling EveryBuddy else tae dae, regarding Kojo’s posted opiniion… in yer last posting..
Let me say that Ah greet that News With. Relief and Joy.
Because.
Ah wullnae read any Mair Disapproving Remarks frum yer guid sel.. regarding any opinion which Ah hiv Newly Opined oan this
Sacred Blog.
Thanks A Heap,pal..
Ye are a Gentleman and A Scholar.
jist Missed by a Midge’s…
Pal.. Ye hiv goat the true Picture, whit is Really Goin oan..here
aroon this Particular Campfire.
Glad that Ye are Brave enuff .. or.. some may say. Foolish.. But, Ah hasten tae say.. No Me!.. Enuff..
Tae Actually, Gie Kojo .. a Nod.. o’ Encouragement!
Thanks A Loat,pal..
You are Definitely,noo.. Included..
In the Wull~
Kojo
yer pal..who thinks ye ur jist Peachy Keen.
the diversity of the blog is something that should be cherished, its a given that everyone has the right to make their point without fear or contradiction of being pilloried, however in my opinion when those views cross the border into sectarianism then that right becomes null and void,
now reading back some will disagree and thats fair enough, my arms are long enough to box, but think long and hard about the stance we as individuals, we as a Club, we as a blog have taken as regards the sectarian bile that emanates from ibrox,
you still feel its okay to post sectarian messages?
if so then what makes you any better than those in the copland rd stand?
‘…..if they die, their ghost is already in enormous peril.’
Can we put Ghostbusters on retainer just in case?
Even if the players take a 75%cut in wages till the end of the season ,what difference will this make.The title will be ours and how many of their players will be hanging about when the window opens .
If the avoid going bust ,they will have to play the boys and pay their dues ,the hordes don’t do 2nd very well so you will be lucky to get a game of golf next year without being forced to play through plenty of bitter bad golfers with more cans in their bags than clubs .
It looks like death by a thousand cuts ……ice cream anyone
hail hail
Gotta Fly.. noo.. Ma tea is Gettin’ Cauld.
Kojo
Mair and Mair
I know that the meeja lurk.
When you have a moment consider the meaning of integrity and look in the mirror.
Integrity comes from the Greek words ‘integritas’ and ‘integra’ meaning whole. It enters into every aspect of one’s life. It is a belief system without faltering, no matter how dangerous it is or how unpopular it is with others. It includes: sincerity, keeping one’s word and agreements, honesty, truthfulness, ethics, fairness and justice. A quote regarding integrity is ‘It is better to have an enemy who keeps his word, than a friend who does not.’
Wee bug eyes on STV news.H.H.
Both our hero & Vanessa appeal on STV
If dobs wagebill is 3mill a month does that not mean that the administrator has spent 1. 4 mill of creditors money since they arrived!!!
Surely if you were Dundee utd Dunfermlne etc you would be getting your lawyers onto this
What about the men who play for the jerseys? Will they have to wear extra small?
Paul 67
I’m quite pleased with myself. This was all getting so complcated I feared I was losing my grip on what it all means. So after posting this on rtc
” I cannot see Ticketus wanting to come up with the dosh to keep Rangers alive and competitive enough to attract the size of crowd that will maintain ticket sales at high enough level for them to get a return on the investment.
Good money after bad.
I can see them being keener to bankroll Newco at a lower investment working back up from Div3, although they would prefer an integrity busting parachute into the SPL.
Loyal Rangers supporters will surely back Newco to an extent that will justify Ticketus putting up more dosh for a share in a newRangers future?”
I was pleased to see I was on the right track afte reading your post.
There is another factor that would suggest a Newco playing at Hampden in Div 3 is a likely outcome and that is: attached as Rangers supporters are to Ibrox, the idea of CW taking even more money out of the Rangers supports pockets (and I think they have had their back pockets picked and the money used to fuel an addiction that they will be happy to pay for up front – and that is a crime) and paying it to CW, will anger them to the point of not wanting to use Ibrox as long as he is the landlord.
Finally, Rangers survival from 2007 onwards always depended on UEFA money, it is why they indulged in unsustainable debt after EBTs were recognised as dodgy. It is what made winning the titles essential, it is what in my opinion caused the season of honest mistakes and all that has come from that since. It is what turned the Celtic support against each other (the BIGGEST crime in my book) and it perhaps karma* that this season they were denied UEFA money when they should never had a licence to play.
I remember watching Celtic play Sion in an EK pub whilst on the other side Rangers were playing Maribor. When Maribor scored and Rangers went out I was like a cat in Wisemans creamery. I knew it spelled BIG trouble.
(*it is maybe karma that Celtic got in by the back door)
Scottish football cannot stand the stresses that the distribution of UEFA money causes and sooner or later this has to be recognised by UEFA and all the SPL clubs.
Our hero has just danced a little sidestep.
http://youtu.be/rCDoBvG1HoI
Have the Administrators of rANGERs FC actually payed any ceditors yet?
I thought that was one of their primary roles…
I would much prefer if Hector’s men where in instead of TGEF’s stoogies.
Just watched the Craig Whyte interview on the TV.
Says ,he trying his best to save the gers.
Do you know what? I still believe him.
Yours dobbishly A T Hickhun.
shimmies33 on 1 March, 2012 at 18:02 said:
Yup. But all the more reason to suspect liquidisation.
liquidisation? Must need a drink :)
I see clyde have turned off their internet feed again
I lost my job before Christmas and nobody was crying on the radio for me or the thousands of jobs that have been lost since. Sorry for the staff at Iborcs and for the young players but as for the number (top 11) which I have heard mentioned several times today they will walk into another job with big big wages so I say to them…….
Happy Axeday!!
Deeeyelll ‘players so commited they’d be happy to play for nothing’
WHAAAAAAAT THEEEEEEEEEEE F##################K
He’s been buzzin glue, there is now nothing, I mean nothing that can make any of our jaws drop ever again. This guys comment won’t be beat.
Someone tell me I heard wrong.
brimmer
Auld Neil Lennon heid on 1 March, 2012 at 18:11 said:
liquidisation? Must need a drink :)
====================================================
Aye the cry was pass the blender ,the blender as they die
hail hail
Paul67
FACTS. That’ll never catch on. Brilliant piece. Bunnet doffed.
Malarkey. That particular (what’s its name) and all is AKA’s are not worth waiting your life experience on. Scroll on by the bigot and racist.
MWD
My dear,dear Kojo…..Oor Maist Intrepid Alpha Dug Wi’ The Beanie Hat Worn Jauntily….
Lang may yer tail wag defiantly…..
Wi’ yer Gallant Band o’ Huskies haulin’ The Great Guilded Sledge of CQN onwards,relentlessly,through the Arctic Night…
Tae get Us tae…well,wherever it is we’re goin’….
And if some Weasel-moothed Jakies should happen to fa’ aff the Sled sometime in the Wee Sma’ Hours..?
Well let it be poifectly clear tae them…
“Sure As Coos Love Thae Cabbages”,
There wullnae be any Search Parties gaun back in the Morn tae look fur the boadies….
Right?
Yer Doggone Right,said Hoss tae Little Joe….
And Virginia …??
She laughed and giggled till her heid blew clean aff her shoulders….
Yer Pal,who thinks yer Swell…..
If they have a £5.5m shortfall until the end of the season that means they have £4.5m at their disposal.
If that’s the case then:-
1) why is this not being used to pay creditors?
and
2) where is/did this £4.5m come/coming from?
googybhoy ♥ Celtic and Integrity on 1 March, 2012 at 18:00 said:
Absolutely. http://celticunderground.net/index.php?option=com_content&view=article&id=856:in-whom-do-we-trust&catid=47:season-2011-2012&Itemid=83
Neil canamalar Lennon hunskelper extrordinaire on 1 March, 2012 at 18:12 said:
I see clyde have turned off their internet feed again
=============================
I now use http://www.radiofeeds.co.uk/query.asp?feedme=clyde
scroll down and pick one. I have my feed openinfg with I Tunes.
Wee Vanessa and her dad both interviewed on tv. A brilliant story
Awe_Naw
I too in recumbrance the headlined words of P67 have been somewhat smug in comforted ease the late call tweet of timdom in assassin waited bulletin.
Them Administration twins are the playing oot a pre-arranged high value reward for the battle zone status of Custar proportioned phony death throes.
The Hun nation in bloodthirst needs always a filter to dilute the fatty residue to chewy down to the ranks of next day reported spew unto the pond life readership a reckless and idiot guide to life beyond the ‘Big Hoose’.
Let them Die
HH