The Bank, financial doping and moral hazard

955

Dundee United chairman Stephen Thompson’s comments to yesterdays’ Herald are worthy of attention.  During the summer, when United received a £1m bid from Rangers for David Goodwillie and Blackburn Rovers were hovering, Bank of Scotland, took an active part in the deliberations.  Thompson told the Herald, “The bank wanted me to take £1.2m for him, but I said no to that. I had to stand up against the bank.”

Thompson more than doubled the money on offer for Goodwillie, allowing him to shave over £2m off their bank debt, but this exchange took place only a few months after the same bank told former Rangers chairman, Alastair Johnston, to accept the bid for the club from Motherwell born thousandaire Craig Whyte or the bank would demand same-day repayment of Rangers borrowings.

Bank of Scotland, part of Lloyds Banking Group (LBG), are significantly exposed to Scottish football and required a taxpayer bail-out two years ago, so although their interference in the running of clubs could seem overbearing, we shouldn’t be surprised at it.  It’s business, and if you are employed at LBG with a responsibility to your taxpayer-shareholder, it’s necessary business.

Fortunately, Celtic are free from such interference, as are Rangers, thanks to their aforementioned benefactor, but if a liquidation event at a large club threatened income streams to the league I would be amazed if the Bank didn’t use the ‘Vote Newo FC  into the SPL or repay your borrowings immediately’ line.

Stephen Thompson, who sits on the SPL board, might not have a choice on whether or not to vote a Newco FC into the SPL ahead of 30 Scottish Football League clubs, but he and his fellow board members will be able to set the tariff on any exceptional league entry to what would become a financially privileged football franchise.

12 seasons of cumulative benefit from financial mis-dealings should result in 12 seasons of penury at whatever points rate the league calculate benefit was accrued.  For one scenario I have in mind, around 15 points per season sounds fair, with an expunging from the records of any trophies ‘won’ by Financial Doping.

This is measured, deliverable, is in the power of the SPL board to impose, and sets a minimum moral hazard to inhibit future mis-deeds.

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955 Comments

  1. merseycelt loves Neil Lennon and the Green Brigade but despises the anti irish/catholic bigotry inherent within the organisations who constitute the scottish establishment on

    Drambowiecelt

     

     

    Thought they went further than that but they are more than capable of speaking for themselves!

     

     

    with respect to you and yours!

  2. Thank goodness it’s Friday…..

     

     

    Dancin’ pumps and drinkin’ breeks at the ready…………..

  3. @mersey

     

    good man had the pleasure of the company

     

    of frankie “wheres the burds” at home game

     

    great night and gerry was a gentleman after

     

    the game.

     

     

     

     

    H.H

  4. merseycelt loves Neil Lennon and the Green Brigade but despises the anti irish/catholic bigotry inherent within the organisations who constitute the scottish establishment says:

     

    13 January, 2012 at 07:02

     

    drambowiecelt

     

     

    Essentially, ernie and stfb, are stating that, unless Celtic FC actively oppose the possible re-entry of huns newco to the SPL, they will cease to support Celtic.

     

    ********************************

     

    With respect, you’re mince is another mans word of honour. I haven’t read ernie’s or SFTB’s post but I can imagine as I posted similar sentiments last night around 9pm ish.

     

     

    If the newco are instated over and above other Scottish football teams then the game in Scotland is a sham, I won’t go to another football match in Scotland.

     

    My preference is to move out of Scotland and has been for a number of years.

     

     

    Vinny

  5. Vmhan Supporting Lenny! says:

     

    12 January, 2012 at 21:19

     

     

     

    re the newco being ……. erm……. selected for membership of the SPL, its a wee bit like an employee candidate being “selected” over other more fitting candidates, that doesn’t happen in Scotland I mean in this day and age.

     

     

    Anyway I’m a dyed in the wool, Celtic through and through type of person and have been my whole life, like a lot on here I’ll be buried with a Celtic flag wrapped around me, but I will not suffer a newco going straight into the SPL, if this happens I will never again watch a football game live in Scotland, I will only watch Celtic when they play outside Scotland.

     

     

    I was wondering are there many who think like me or will the majority still stick with it, I have no axe to grind either way as it will be a personal decision for me and other Celts, a heartbreaker but we’ve been cheated and the inclusion of the newco will be a continuation of that, not for me.

     

     

    I’ll catch any reply’s later.

     

     

    Vinny

     

    ********************

     

    Hamiltontim/ Voguepunter/Twist n Turns thanks for the comments last night, I feel that not punishing the hun for 10/11 years of cheating tax payers, the tax man and the other football clubs in order to gain more success, would be the end of competitive football in Scotland.

     

     

    Its not a competition I’d want our club to be a part of.

     

     

    Vinny

  6. Marrakesh Express on

    Another day another striker linked with the huns. We’ve always known its all about selling papers but you’d think that they’d take into account their perilous financial position. But absolutely nothing gets in the way of the RFC propoganda machine. I swear, they could have just lost the tax case and the LL will still spin it to suit them!

     

    The ‘Ally ready to swoop’ headline is not only an insult to our intelligence, its leading the hun believers into Neverland. The gutter press of this country have reached the sewers.

     

     

    HH

  7. Drambowiecelt says:

     

    13 January, 2012 at 07:31

     

    @vmhan

     

    your preference is to move out of scotland?

     

    where do you live?

     

    ****************

     

    I’ll direct you to my earlier weather report post (which seems to upset you) at 6:30hrs.

  8. Some say that he once dropped Lafferty to the ground just by using his mind and that when dobermans see him coming they cross the road.

     

     

    All we know is he’s Victor Wanyama

  9. Drambowiecelt says:

     

     

    Good morning sir, just read back before I head off to work and you have made me smile this morning thank you.

     

    From a wet Morayshire…

     

     

    PB

  10. Message to CelticQuickNews readers:

     

     

    Its been brought to my attention that there’s a band from Port Glasgow/ Greenock area (The Soviets) who have brought out a record, where all of the profits from the sale of the single is going to the Tommy Burns’s foundation for research into skin cancer.

     

     

    My friend and CQN’er, John Johnston (412K26) sadly recently lost his wife Mia to the same type of cancer and is sponsoring the proceeds of the hardcopy sale of 1000 of these records, in the name of Mia and the Tommy Burns foundation.

     

     

    John asks that, if you can, then please get the band on your Facebook (google them, the soviets band Port Glasgow), listen to their single and get it downloaded, please also tell everyone in your address book to do the same.

     

     

     

    Below is an extract from the Huddleboard with further information re the record.

     

     

     

    The soviets are a band who are releasing a charity single via Celtic with all proceds going to the tommy burns charity foundation, you may have heard their song “good times” played at half time vs hearts a few weeks back. Anyway a source at Celtic forwarded the song to Mani of The Stone Roses and asked his opinion. This is his LEGENDARY response

     

     

     

    Mani of the stone roses

     

     

    “Dear Jim

     

    They’re very Mancunian yer boys The Soviets, in looks and sound !!!. Yet another link between the two greatest cities on gods earth !!!. I wish them every success, the same as Neil Lennon. The man deserves it after having to endure the shennanigans he has had. More power to him. He, like the great Tommy Burns, continues a lineage of great Celtic managers from Jock Stein through Martin O’Neil, Tommy Burns and beyond. Part of the fabric of this great club !!!. They should stick a statue up to him at Parkhead. Hope these quotes will do for you, love to all concerned, x Mani”

     

     

    Please communicate this via you’re friends, family and the Celtic community, you’re time and effort in reading this and forwarding on is greatly appreciated.

     

     

    Yours in Celtic and on behalf of those who are sadly missed.

     

     

    Vinny

     

    Hail Hail

  11. Marrakesh Express on

    Vmhan, I’m with you on this and going by the hundreds pf posts I’ve read the last few weeks, many more feel the same. PL and DD will surely have the club’s response laid out already. They simply cannot afford to make the wrong move as it will kick of major problems within our support. And to think it all started with SDM cheating?

  12. Drambowiecelt says:

     

    13 January, 2012 at 07:50

     

     

    Not at all, enjoy your day, im off to work.

     

     

    PB

  13. Dram

     

     

    don’t ya sleep fella?

     

     

    Mind you, you may or may not be aware that many world greats didn’t need more than a few hurs sleep a day, but got by on short naps. Masybe yer destined to be a great? Maybe you already are?

     

     

    Bonaparte, Micaelangelo, Churchill, Madonna…….are you gonna be on this list??

     

     

    Anyway, good morning CQN

  14. merseycelt loves Neil Lennon and the Green Brigade but despises the anti irish/catholic bigotry inherent within the organisations who constitute the scottish establishment on

    vmhan

     

     

    I did call them respected posters but your observations about my use of the word mince is correct. Apologies if anyone was offended.

     

     

    I just cant understand how the actions of those who represent the club (I dont remember voting for DD) can change your feelings towards the club.

     

     

    I agree that we should exit sphell and have argued this for long. We need somewhere to go tho’ unless we think we should disband becuase the huns are cheats.

     

     

    Family calls, as ever!

     

     

    HH

  15. Drambowiecelt says:

     

     

    13 January, 2012 at 07:39

     

     

    ffs look oot the windae

     

     

     

    share

     

     

     

    I did.

     

     

    That’s where I got my material!

  16. GoooooooooooooooooooooooooooooooooooooooooooooooooD

     

     

    Morning………………………………CQN

     

     

    Overcast in mainland Spain………………………………..

     

     

    Have the huns gone BUST yet.

     

     

    BigJoeindaaaaaaaaaaaaaaaaBLOG

  17. Drambowiecelt says:

     

    13 January, 2012 at 07:53

     

    @vmhan07.49

     

    they are pish

     

     

    Drambowiecelt says:

     

    13 January, 2012 at 07:58

     

    @vinnie

     

    if you want to join the world in all its glory

     

    yer post was 6.32

     

    about the same time yer missus said yess

     

    remember?

     

    love dram

     

    ***********

     

    Re you’re post at 07:53, this is a charity CD and is connected to Tommy Burns and a CQN’er who lost his wife to this cancer, the band have gave theyre time and effort free of charge to this cause…… you’re comment is indicative of you’re nature, are you unwell?

     

     

    Re you’re post at 07:58, would you care to elaborate?

     

     

    V

  18. SSN…………………………… saying Gary Hooper, being linked with Southampton.

     

     

     

    With 6 million being mentioned……………………………………….

     

     

    BigJoeNOTbelevingANYofIT

  19. .

     

     

     

    Ulan Bator, Mongol Peoples Republic 9 Day Weather Forecast

     

    Weather Forecast Issued: 07 am Fri 13 Jan local time

     

     

    Ulan Bator 1 – 3 Day Weather Forecast Summary: Mostly dry, Temperatures will be well below freezing (max -10°C on Sun afternoon, min -14°C on Fri morning), Wind will be generally light

     

     

    Up the Peoples Republic..

     

     

    Oooh Ahhh up the Peops..

     

     

    Summa