30% interest! Nice one, Newco Rangers, you’ve got yourself a deal there. Suggestions that your business plan has been, and remains, unsustainable and extravagant are patently absurd when you can borrow at the kind of rates a Zimbabwean pimp would get at the height of the ZWD’s recent hyper-inflation episode, although it’s probably worth noting that Zimbabwean businesses are currently borrowing at slightly less than half of what Laxey are charging Newco, solvent ones, anyway.
An administration would be a severe embarrassment to the Newco, less than two years after its incorporation, but in many ways it would be a boon, allowing the club to offload all the high earners and establish a breakeven trading platform.
It is utterly incomprehensible why they have not called in the admins, which itself shines a light on management processes inside the club. No one seems to be asking, “What next?” Getting deeper into hock with a hedge fund is ruinous. Notions that if the loan is turned into shares would be a soft landing for the club are absurd. This is a hedge fund. A HEDGE FUND!! The more shares they have, the more exposure they have, the higher return they will demand.
Need some new players, tough, pay my money. Ticket sales down, that’s disappointing, cut back and pay my money. Got some maintenance work to do, I don’t care, pay my money then see what’s left.
Keep your eye on the sale and leaseback plan, although not until September. They should commission a brass statue of a Newco season ticket holder, touching his toes, with the motto ‘Brace yourself’ below.
The only question left is who will be the complicit front man for season ticket sales this year?
Most people are only beginning to realise the consequences of the events of 2012, or what it means to be a zombie club, walking around, not quite the same as before, with various groups randomly gorging on you. Nothing will ever be as it was. Ever. They should’ve listened, before high-fiving Sir David Murray, then Craig Whyte, then Charles Green. It’s not like we didn’t tell them.
If you’re in the football business, rule number 1 is: Pay your bills. Every other rule, value and aspiration cannot be met without this rule.
Many thanks to everyone who submitted questions for last week’s Celtic Forum. The minutes have been published, and are available here.
If you would like to read the new CQN Magazine, GO HERE to read properly, and for FREE, the graphic below is just a taster.
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Looks like The Hairy Cornflake hasn’t paid his annual ludge fees yet…
big nan-“product placement” of Collum by Dallas and his SFA Cowboys.I don’t know the profession of any other Grade 1 referees.
The Battered Bunnet
My only criteria was “knowing your stuff” and Bishop seemed to me to be first name on the UTT team sheet.
Big nan….
The myth that always makes me cringe,particularly when uttered by a Scottish politician,is that Scotland has the best education system in the world.Depends on your definition of education,I suppose.
murdochauldandhay & wee oscar- the case has went from 20 days,to 10 days to 1 day.Game over.
weefrathetim
Very best wishes to your wee maw
She sounds like a trooper
HH
lct
Caller on SSB last week called in to question Colums bias re Celtic. Keevins came in with Willie Colum is a R E teacher at a Roman Catholic school. Caller said so what? I am not questioning his religion Im on about his proven bias towards Celtic. Keevin must have realized his boob and started to attack the guy and got some backing from Delahunt and pulled the plug on the guy.
Oor Phil….
There was a time when I thought a Hedge Fund was something that posh people used to keep in jar in the kitchen to pay the gardener with.
Well, apparently I was wrong.
These Hedge Fund people are serious operators and they know all about numbers.
They don’t do emotional investments.
For them it is never personal it is always strictly business.
If they invest in a company it is because they see the possibility for making a profit.
Derek Johnstone on Radio Clyde some weeks ago stated that an investment was “a gift”.
It really isn’t big man.
The Easdale Family are providing £500,000 in liquidity, but it is Laxey Partners who providing the majority of this credit facility.
It is how the £1,000,000 from Laxey Partners is securitised that is the real story here.
For Laxey Partners have rather beautifully cordoned off the only two valuable assets owned by The Rangers Football Club (TRFC was formerly called Sevco Scotland Limited) not threatened by the contingent liability from Sevco 5088.
Edmiston House and the legendary Albion car park are now, in a way, separate from Ibrox and Murray Park.
The stadium that John Brown played for and the monument to Dick Advocaat’s powers of persuasion over Sir David Murray are, of course, subject of a Letter Before Claim by lawyers instructed by Sevco 5088.
£1.5 million is actually £1.35 million as there was an arrangement fee of £150,000.
The action in this still story is in how the Laxey Partners have gone about their business.
15% for six months (30 % APR) is, I am told, a very good rate for the lender.
In comparison Celtic would be borrowing at a rate of 1.55% from the co-operative bank.
The market tells us about perceived risk and the higher the cost of the lending the higher the belief by the lender that the borrower will default.
For Laxey Partners today really is win win.
As the company/club website stated:
“The premium on the Laxey Facility is payable in cash or, at Laxey Partners’ discretion, in ordinary shares of 1p each, at any point between the date of the facility agreement and the first anniversary of the date of the facility agreement.”
That is a telling phrase in the episode of the Sevco saga:
“…at Laxey Partners’ discretion…”
Moreover, I do not believe that £1.5 million is enough working capital to see the operation over the Season Ticket line in May.
For the avoidance of doubt Laxey Partners are the big winners in this today because their loan is securitised against valuable fixed assets and it is down to them how they get paid back.
Anyone who wants to buy into RIFC and secure control of TRFC will have to deal with them and pay them top dollar.
Laxey Partners are now in pole position to be the secured creditors in any future controlled insolvency.
Administration is still the only play that makes any sense in all of this.
Of course this new money from this credit line could be drawn down to pay the February wage bill due this week.
However, it isn’t clear what happens next month when the same sum has to be found all over again.
If this £1.5 million loan was all part of the Grand Plan then I am puzzled as to why it was not factored into the year-end accounts signed off on by Deloittes last December.
It is at times like this I wish I had a tortoise called Alan…
weet weet
Thank you, and you better believe exactly what you posted. Must say, she is a sorry wee soul now, but we still love her to bits and then some. :-))
Weefra HH supporting Wee Oscar.
O.G.Rafferty
22:14 on
24 February, 2014
Auldheid, 21:24
A subtle but important distinction.
It’s done, gone.
Which makes what started today all the more important – otherwise it is just moaning in Celtic cyberspace
===================
It was done but was hidden.
If it becomes public knowledge that vital info was not supplied and that failure influenced the ToRs of the Commission, then the question has to be how would the ToRs have changed had the concealment (for whatever reason) not occurred and would that have changed the findings.
Now there might be no rush to answer the question but that does not mean it should not be asked, particularly as the act of asking but getting no response discredits LNS and the SPFL totally, meaning the game is truly a bogey.
Then there is Res 12…..
Doherty is a Celtic shareholder and season ticket holder.
Go figure.
Games still in play Bada might not be over just yet
Auldheid 22:34
You are entirely right and it is not just us two that think that
Makes you wonder why sally keeps telling orcs, EVERY DAY, that mr wallace insists there will be now admin 2……..
“METHINKS THOU DOEST PROTEST TOO MUCH, MR WALLACE”
…and sally isn’t doing too well on, or off, the park …. :)
murdochauldandhay- i have no faith in any legal process involving that club.I believe it is well founded mate.HH
£50million pounds worth of no sporting advantage!
CynicalduetoexperienceCSC
am i the only scottish celtic supporter on here please lets show our allegience fed up with all the jock bashing when scotland play ireland scotland 7 ireland 1 go figure if you want to be irish fair enough be irish but dont bully us minority scots from supporting our team surely there is room for both traditions god bless and hail hail.
o.g.rafferty
22:39 on 24 February, 2014
Let’s be very clear here….AULDHEID is ALWAYS right……hahahahahahahahaha
There have been many strange developments in this saga…but, as I said earlier, once it moves out of Scotland, TRUTH AND JUSTICE WILL PREVAIL …. and, remember, HMRC have too much to lose to allow wee Scottish bigots to decide who pays, and who doesn’t pay taxes…..it’s within the realm of the big boys now….!!!!….’the end is nigh’, then we can all go back to enjoying watching our sport…..
Annabel Goldie on Newsnight Scotland going for the ole Mod look. Quadrophenia rather An Comunn Gaidhealach, I should make clear.
She looks like Paul Weller’s maw…
big packy
22:46 on 24 February, 2014
Of course there is, and always has been …….you shout your heid aff for Scotland and, if your sitting next to me, you’ll hear me shootin ma heid aff for Ireland, and we’ll both be the best of pals…..
NatKnow – Supporting Wee Oscar
22:49 on 24 February, 2014
Annabel Goldie on Newsnight Scotland going for the ole Mod look. Quadrophenia rather An Comunn Gaidhealach, I should make clear.
She looks like Paul Weller’s maw
__________
Your mistaken more like Paul Weller’s Da
Anybody else think that maybe PL got the lords changed .
( just thought i would throw that wee one in the mix to keep the lurking huns awake tonight ). :-)
Tonyg-VG
67Heaven … I am Neil Lennon, supporting WEE OSCAR..!!.. Ibrox belongs to the creditors
and, remember, HMRC have too much to lose to allow wee Scottish bigots to decide who pays
—
Absolutely
Paying tax makes the fabric of a nation
HH
Auldheid………..
Then there is Res 12…..
Have you an update for this?
Regards
O.G.Rafferty
22:39 on
24 February, 2014
Auldheid 22:34
You are entirely right and it is not just us two that think that
===================
It is incredible the steps that have been taken to hide the truth. In any other country but Scotland and in any other industry but football this would have been handled honestly.
The duplicity at play is incredible, but even more so the disingenuousness (as in its not revealing all that is known to fully and so honestly answer a question meaning ).
One way or another that lack of honesty will come out.
67heaven … i am neil lennon, supporting wee oscar..!!.. ibrox belongs to the creditors
22:49 on 24 February, 2014
“once it moves out of Scotland, TRUTH AND JUSTICE WILL PREVAIL”
I wonder what happens with independence.
You can imagine the negotiation.
“You take it”.
“No you take it”.
“No, I insist. You take the case”.
We’ll pay you to take it”.
67 heaven allright pal dont want to get into a fight with you if you want to shout for ireland fair enough but when leigh griffiths bursts the irish net please try to be kind.
TONYG
22:53 on
24 February, 2014
NatKnow – Supporting Wee Oscar
22:49 on 24 February, 2014
Annabel Goldie on Newsnight Scotland going for the ole Mod look. Quadrophenia rather An Comunn Gaidhealach, I should make clear.
She looks like Paul Weller’s maw
__________
Your mistaken more like Paul Weller’s Da
——————————————————
:-) If ma aunty had baws…
From the late Paul McConville’s site:
RE: TIMESCALE
Whilst the FTT case took many days, the appeal is likely only to take TWO or THREE days – the facts are not in dispute (or more properly open to challenge) – rather it is the interpretation of the facts and the application of the law which is at issue. That therefore takes a lot less time than hearing all of the evidence.
We are looking therefore at refreshing our memories about EBTs around the summer of next year, maybe during the European Championships.
Of course, once the hearing happens, the Tribunal will still have to consider its verdict, which will undoubtedly take some weeks, or probably months, before the result is announced.
And then we have the prospects of FURTHER APPEALS to the Inner House of the Court of Session and finally (subject of course to any changes which occur as a result of the independence referendum) to the UK Supreme Court.
A long way to run methinks (hopes)!
Who will be paying for the defence case at today’s tax case? In other words who stands to lose if HMRC win?
I think big Annabel could show a good night in the best possible way of course!!
Uncle Tom Lawell and Absent Irish Landlord Desmond will be proud of season ticket holder Lord Doherty………….When………
he finds the Orcs not guilty and we can all go back to being the Old Firm.
KERCHING
Bawsman
22:58 on
24 February, 2014
There is a meeting on Friday after which, having set out the options, the requistioners can do no more.
Watched a re-run of the Hearts v Celtic game and it confirmed my earlier thoughts on the match that Mathews was left isolated a few times in the first half. Second half far better going forward when he was supported on the inside.V.Strong midfield needed on Tuesday will be interesting to see NL tactics if he loads up midfield
Nat know …
If Annabel had baws……
50 Shades of Green – ha, ha. Was waiting on someone to join the dots. Opus Dei outthinks The Ludge and it’s Check Ma(son)te :)
I’ll be stunned if Mr Doherty doesn’t find himself subject to character assasination in the next 10 days across the rag tops.On the flipside, perhaps like Collum, Mr Dohery will try too hard to prove his impartiality.
estorilbhoy
A certain knight of the realm has best part of £6M riding on it personally, while a partly state-owned bank is exposed to a bigger chunk via its debt-equity position in one of the participants.