Takeover Panel, what’s at stake today


When the Takeover Appeal Board gave Dave King 30 days to make an offer to buy Newco Rangers shares at 20p per share, I didn’t think too much of it. That was 30 days ago. So either King enjoys running things close, or he does not plan to comply with the Appeal Board. The latter would be curious, to say the least.

Making an offer to buy shares and actually buying them are two different things. If all relevant shareholders decided to sell to King, he would have to pay around £11m, but this is fanciful. It’s likely that very few would chose to sell, King is being asked to go through a paper exercise.

So why has this paper exercise it not happened? As I said, it may be that he’s about to rush through a last minute offer, but if he doesn’t, the proof of funds question jumps to mind. King would be obliged to show proof of funds to before any share offer could take place. If he cannot pull together proof of funds, you get an insight into why so many are keeping an eye on finances at Newco.

Then there is the ‘so what?’ question. If King fails to comply with the Appeal Panel he would be Cold Shouldered. This term refers to the prohibition on financial firms working in related fields with anyone who does not comply with their verdict. It is an incredibly rare punishment, which has been handed out less than a handful of times.

In this scenario, King would either have to resign from Newco, blaming everyone else, in his usual manner, and sell his shares. The latter is likely to be a painful exercise. Or, if he didn’t sell up, Newco would be unable to issue shares.

The club would therefore be unable to convert current directors’ loans into shares, leaving it in a position where it is unable to comply with Uefa Financial Fair Play rules. Before you get too excited about this matter, a breach of FFP rules would not inhibit Newco’s ability to enter European football for the first time this summer.

The process would see Uefa impose conditions that, if it complied, would see the club reduce its debt. It is only if Newco failed to adhere to these conditions that their licence to play European football would be withheld.

Failure to make a share offer, or for King to sell up and leave the stage, puts Newco in a horrible situation. It either jeopardises European football, or would lead to drastic cuts in budget – which would have the same effect on European ambitions.

I know many are exasperated at how King has been lauded without any appropriate scrutiny, never mind the microscopic type Celtic executives have had to face, but he and his acolytes are doing a wonderful job. One that no one outside of the Newco family could dream of inflicting on an opponent.

Since the hour King and his concert party of Bears failed to acquire Rangers assets in liquidation, they conspired to grab control of Newco, inflicting incalculable damage along the way. It has been the stupidest undertaking in sport.

There are a few potential scenarios covered above, but you and I know exactly how this will unfold.  You don’t need to be called Sherlock to figure this lot out.  Dave, you’re an inspiration, I hope you hang around forever.  Or at least until the inevitable….

We have two tickets to raffle for the Scottish Cup semi-final on Sunday 23 April at Hampden, courtesy of our good friends and club sponsor, Intelligent Car Leasing. Funds from the raffle go straight to our Mary’s Meals school kitchen appeal.

To enter, make a minimum donation of £5 at MyDonate here then email me to confirm your entry with the words “Scottish Cup” in the subject line. Your money will go instantly to Mary’s Meals.  Competition finishes at 12:00 on Good Friday, 14 April, so you only have TWO DAYS to enter!!!  Put your contact details on the email, just in case.

Two tickets, the Celtic end, fill your boots……… and thank you!

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  1. Tonydonnelly67



    There was a great comment on the Johnjamessite about that STV article you posted on Sevco’s Euro License.









    ” Just read STV’s piece entitled “Explained: Will Rangers need UEFA approval to play in Europe?”.



    Every part of it confirms that the current Rangers are indeed a new club.



    The last section of the article is copied below:



    ‘Aren’t Rangers banned from playing in Europe anyway?



    When Rangers went into liquidation in 2012, their assets and memberships to play football were transferred to a new company.



    This automatically triggered a three-year period where the Rangers newco could not participate in European competition. This applied to the 2012/13, 2013/14 and 2014/15 seasons.



    There is no barrier to Rangers applying for a UEFA Club Licence under article 12, which states any membership with a national association must have lasted “for at least three consecutive years”.’



    The key word is ‘transferred’. The definition of transferred is ‘to convey or remove from one place, person, etc., to another’.



    Is a player ever transferred to the same club? Of course not! That notion is preposterous. Why then, would SFA membership be ‘transferred’ to the same club?



    This eleven letter word by itself blows the whole continuation myth output of the water.”





    I’m with you on this one. Leave King where he is,leave his deluded followers to follow follow blindly wherever he goes.



    He’s a bull in a china shop,canny do enough damage quickly enough for me.




  3. Someone, can’t remember who it was said yesterday, “I don’t think the cold shoulder will bother King one little bit” and I agreed with him, and I still think the same, a liar he is, but daft he isn’t .




    Metro bank who they use will probably withdraw their services. This would mean there could not be any pay up offers for season tickets and other banking related affairs would be curbed, so I believe, but I’m sure more financially aware folk on here will put me right :) por cierto.





    If no access to banking facilities,Rangers would need to have season tickets processed manually,in cash,at the ticket office.



    No credit cards or debit cards acceptable,obviously.



    That mountain of cash would have to go somewhere,wouldn’t it?



    Like a bank-but they have no facilities.




  6. VFR800 is now a Monster 821 on

    TD67, Por Cierto



    Could Shouldering: The effect of a cold-shoulder order is that no entity or professional adviser regulated by the Financial Conduct Authority may act for the individuals concerned on any transactions that are governed by the Code.



    Metro bank is governed by the FCA (https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfnC7AAJ) so if the Take Over Panel issues a statement Cold Shouldering King (an by implication The Rangers) then this is the FCA Statement which indicates the way FCA compliant organisations must act: https://www.fca.org.uk/publication/corporate/statement-on-takeover-panel-cold-shouldering.pdf



    Basically, Metro Bank cannot offer banking services to The Rangers holding company while King is Chairman. By association, the football club will also be affected.



    In nutshell: nae banking facilities! Immediately!



    King will have to resign or be pushed; what this will also mean for his Concert Party (https://www.youtube.com/watch?v=10dmK7O-KSY) is the next big question.



    Having said that, I may be wrong and the share offer may be on it’s way – https://www.youtube.com/watch?v=KGSPUOaHYn4





  7. Paul67



    If you are using the explanation given by STV who probably got it from the SFA as to why failure to break even does not prevent a licence being granted then it raises questions as to the usefullness of FFP to clubs not prepared or able to use mounting debt to get access to money that then allows them to reduce that debt.



    If that is tolerated then it flies in the face of the purpose of FFP which is to encourage clubs to adopt a sustainable business model.



    Using STV’s interpretation the SFA are abrogating their responsibility to use their powers under national club licencing to bring errant clubs under control and take responsibility for the process before they grant a licence.



    I don’t accept the STV interpretation because I suspect it came from Regan, the same guy who stated publicly yet erroneously that after 31st March it’s no longer the SFA’s responsibility to monitor events thereafter.



    This was not the case otherwise,if Phil is correct, the SFA would not be currently asking TRFC questions about their licence application which as it stands fails to meet the requirements in Art 48 and Annex 7 regarding the accounts submitted.



    The break even interpretation is a squirrel imo injected into public consciousness to produce exactly what it has, a notion that a licence will be granted under the rules.



    There should be no problem with doing that as long as we know what rules are being observed and who and how the policing of the application is being done.



    It really should not matter to Celtic as at the end of the day pursuing the same business model that killed them will have the same result, but this is simply not the way to run Scottish football.



    The real danger of the spend to accumulate approach has been writ large over the last 15 years and it is an act of folly to let it continue for even one more year.



    Far better FFP principles apply from the national level up to UEFA as opposed as UEFA being used as an excuse to avoid the brake on spending that aligns it to income EXCLUSIVE of any forecast income as a result of being given a place in UEFA competition that another club operating sustainably should get.

  8. SEE if Banks cant touch Sevco as being suggested



    Does that mean we can expect a LArge Wells Fargo stagecoach arriving


    anytime soon and dumping



    Pedros Warchest outside the front door

  9. !!Bada Bing!! on

    But Regan said they would be keeping a closer eye on Clubs financials………..another conman

  10. VFR800



    Does cold shouldering apply to auditors who have to comply with criteria in FFP or national club licensing standards?



    If their “interim accounts” not audited by now that could cause problems.



    On a more general note what we are witnessing is the rubber of reality hitting the King Road and although the longer he stays the better for Celtic he will have to go.

  11. VFR800 is now a Monster 821 on

    JC2 on 12TH APRIL 2017 2:45 PM


    SEE if Banks cant touch Sevco as being suggested



    Does that mean we can expect a LArge Wells Fargo stagecoach arriving anytime soon and dumping Pedros Warchest outside the front door





    We would have a ridiculous situation whereby wages would have to be paid cash; all bills would need to be paid cash (if they still pay them) and any transfer deals would be cash up front!



    Imagine that on Deadline Day; The Rangers need to send an armoured car to Edinburgh to pay for Jason Cummings! 😂😂😂😂





  12. !!Bada Bing!! on

    Open training session with BR and the Bhoys at CP this Friday at 10.30am, see website for details guys.

  13. It seems inequitable that the cold shouldering will only apply to the company and one member of the concert party.



    It would be a much more effective sanction if all members were equally affected.

  14. VFR800 is now a Monster 821 on

    AULDHEID on 12TH APRIL 2017 2:51 PM





    Does cold shouldering apply to auditors who have to comply with criteria in FFP or national club licensing standards?






    Campbell Dallas LLP are registered with the FCA, so yes, they would have to withdraw services to The Rangers.





  15. VFR800 is now a Monster 821 on

    ERNIE LYNCH on 12TH APRIL 2017 3:00 PM



    Who’s to say it won’t be extended? (With a wee nod to Wee Bobby Collins!)





  16. Whitedoghunch.


    If you are lurking.


    I was at La Lanterna for lunch today.


    Once again, it was superb. I don’t go that often, maybe 3/4 times a year, I always slightly fret that it won’t be as good as the last time, thankfully I had nothing to fret about, if you would be kind enough to pass the feedback on to your friend.


    Thank you.

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