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Takeover Panel, what’s at stake today

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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. VFR800 is now a Monster 821 on

    Lifted from Swallow Swallow:

     

     

    Reformation Bear

     

    Star Player

     

     

    Reformation Bear

     

    First Team

     

    2,867

     

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    Posted 2 hours ago · Report post

     

    I don’t know the details of what the 4 claimants settled for. There is a suggestion above that its £300k (presumably in total and not each). The 4 withdrew their claim which in all probability means they accepted an offer from the Club. They won’t presumably have just withdrawn for nothing. Which means the Club did not want the publicity of a ruling against them or the risk that the amount to be paid would be higher (maybe a lot higher) had the Tribunal run its full course. It als infers that the Club was not confident about winning its case and even if they were, they were not prepared to see it through.

     

     

    Disgraceful really that even at the end of the players contracts the Club could still not organise things or structure contracts so that there was no risk of an over-hanging claim being made against the Club. Just who is writing these employment contracts anyway – maybe the scrutiny should be falling on them.

     

     

    Pound to a lot of pennies, an awful lot of pennies the case brought by Warburton and the other 2 would be a damn sight more complicated and more contentious……and more expensive. Chances are it will go the same route….on a pathway to the courts then the Club loses its nerve – maybe because the case they convinced themselves was watertight turns out to be leaky to the point of risking judgement against them and they settle up out of court.

     

     

    King and his Board have now got an unenviable track record when it comes to dealing with employees and shareholders………Barton (contract terminated and compensation paid); the 4 Employment Tribunal claims (looks like a settlement out of court); Warburton +2 still in the pipeline; Ashley (a mess in handling the dispute with him); and now today King and his concert party snubbing a ruling by the Takeover Panel and refusing to offer to buy shares from shareholders. Their operations in these matters since taking control are hardly shining examples of a well led, well run Board or Company. Shareholders – including 1872 – should be asking more and harder questions of the Board who, imo, are by no means being properly held to account.

     

     

    I hear the sound of a penny dropping ……….

     

     

     

    KTF

  2. Bayern were so far ahead of Real in the first half, and now 1-1 and down to 10 men crazy

  3. Terrible defending Bayern but what shows is how ruthless Real have been to exploit the man advantage. Mistakes at this level are severely punished.

  4. My stream goes down and miss the goal shitey Virgin, better off watching the illegal streams

  5. Muller has been poor. Real full backs are the best on the planet, Marcelo and Carvahal are incredible.

  6. Keeping The Faith on

    St Johnstone H 6 May 1500

     

    Aberdeen 12 May 1945

     

    Partick 18 May 1945

     

    Hearts H 21 May 1230

  7. CORKCELT on 12TH APRIL 2017 9:40 PM

     

    One nil away defeat to Athletico is some result for Leicester.

     

     

    1-1 would have been better, lol, I did think that was the banana skin, ah well :))

  8. !!Bada Bing!! on

    Supposed fixtures after split , sure the roomers were wrong last year but here anyway.

     

     

    New

     

    Zombies away Sat 29/04 12 noon (confirmed)

     

    St J at home 06/05

     

    Sheep away Friday 12/05

     

    Partick away Thurs 18/05

     

    Hearts home Sun 21/05

  9. Jude

     

    La Lanterna.

     

    Bottom of Hope St across from Central Station.

     

    Hail Hail.

     

    Night all.

     

    Enjoy

  10. TONYDONNELLY67 on 12TH APRIL 2017 9:53 PM

     

    Firhill on a Thursday night? Ffs, where they dig that one out from, and why?

     

     

    ——

     

    Strange one, Leicester are playing Tottenham on the same night.

  11. Anyone know what happens now that it looks like there has been no share offer,

     

    do restrictions come into play immediately

  12. GlassTwoThirdsFull on

    Thought Ancelotti got it wrong after the sending off. Should have taken off Muller and played counter-attack with Robben and Ribbery as a front two.

  13. Inspired by TD67 all teams scoring g and the bayern penalty miss I put $5 on Real to win 2-1 at 18-1 at half time . Lost the Leicester bet but nice wee win all the same.

     

    Pint for TD67 if I ever catch you in the brazen head or maybe Vegas if your going

     

    HH