There are two questions to look out for when The Rangers provide information on their public offering share issue:
Are the public being offered shares at the same price as investors who sign up prior to the public offering?
In 1994 Fergus McCann offered you shares in Celtic at exactly the same price he paid, giving fans the same value as the consortium which acquired the club from the old board. Will Charles Green do the same? A £20m offering will dwarf the existing share pool but, if the new shares are worth a lot less, the existing shareholders will be able to retain control and the majority of benefits.
How will the prospectus explain to investors the potential consequences of the SPL Commission, and any future investigation if the First Tier Tribunal report, due this month, finds that Rangers did not pay their social taxes as Fifa regulations require?
The SPL Commission into the improper registration of players at Rangers, whose SFA membership the new company acquired, will, if Rangers are found guilty, impose sporting and financial penalties on the successor club which is benefiting from its membership.
If guilty, this will involve the return of prize money for each of the 12 years which are under scrutiny. The league awards prize money to each member club from TV income with the top two clubs earning a significant slice. This alone could consume the majority of funds from the share issue.
Sporting penalties would also be a consequence of a guilty verdict. There is no reference point in world football for issues on this scale, so speculation on what the penalties would be can only be regarded as such, but, if The Rangers eventually win promotion to the SPL, they are likely to face points deductions for multiple years, making it difficult to gain access to lucrative Champions League revenue streams.
The latter question will considerably influence when the new company can hope to break even and allow an informed estimate to be placed on the scale of working capital requirement.
Former directors of Rangers, including Sir David Murray, remain confident HMRC will not succeed at the First Tier Tribunal, but the possibility remains that the verdict will go against the soon-to-be-liquidated club, leading to a fresh wave of football penalties.
The Rangers should now issue potential investors with enough information to decide if this week’s Forbes Magazine article questioning the club’s feasibility is accurate. It should be quite a read.
Although the Sevco consortium promised a share issue since before they bought the assets of Rangers today’s announcement has the appearance of something carried out in haste. The domain name for investors to register interest (www.rangersshareoffer.com) was only registered yesterday and there is no web site yet. Visitors are presented with an alert from their browser informing them that the web site they are visiting has a problem with its security certificate.
Why the hurry?
[calameo code=000390171a36dad35d58c lang=en page=4 hidelinks=1 width=100% height=500]
867 Comments- Pages:
- «
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- ...
- 23
- »
lennon n mc….mjallby
13:16 on
11 October, 2012
estoril
Charlie is claiming to be the club with 140 years of history,its not hard to work out why the tax case would impact upon his tenure,would it?
——
Is the Tax case not against the company? The old company is dead Sevco are the new company?
I’d like to see the various sponsors of drug cheats sue them for obtaining money by deception.
If having to pay back all that money was a real likelihood, it would be the strongest deterrent to cheating.
One of the interesting things about the current focus on doping in cycling is waiting until someone starts blabbing about the interesting Venn diagram that could be drawn showing the ” Doctors ” proven to be involved in cycling doping who also had a paid gig with big European football clubs.
estoril
Company? Is there a company that runs Celtic?
robert tressel.i thought you were kiddin about aw they burds but if you got a money tree in your garden nae wonder they are fighting over you.ps any chance of a wee cutting.
Probably worth posting in full.
From the Financial Times.
Ship of Theseus seeks flotation
Bryce Elder | Oct 11 11:00
Those who argue for a further relaxation of the LSE’s listing rules may want to note the following announcement:
Rangers, the Scottish football club, today announces its intention to seek Admission to the AIM market of the London Stock Exchange.
Rangers intends to raise up to £20 million through an institutional investor placing and limited public offering. The funds raised will be used for strengthening the player squad, improving and developing the Club’s properties and facilities, as well as providing additional working capital. It is anticipated that Admission will become effective before the end of the year.
For those with only a passing interest in football’s backwaters, here’s a summary. The Rangers Football Club PLC awaits liquidation having failed to pay a tax bill just shy of £95m. Its assets were bought by an investment consortium fronted by Charles Green, who moved them to a holding company formed for the purpose in May 2012. He paid £5.5m.
Now, five months later, Mr Green’s consortium is seeking to raise up to £20m for an unspecified stake of these assets. Taking as an imperfect benchmark the £33.4m market cap of Glasgow neighbours Celtic, that target would suggest floating about 50-60 per cent of the equity. (Such a valuation would certainly line up with some tinfoil-hatted reports that Mr Green’s investor cabal had taken 22.69m shares and planned to issue the same again at the IPO).
So what has changed since May for £5.5m of assets to become a business worth circa £33m? There is a little more certainty now about Rangers’ competitive position (third in Scottish football’s fourth-tier league) and a little more clarity on the obstacles faced (which include but are not limited to a judicial inquiry, a player transfer ban and a criminal investigation into its previous owner).
Also worth noting, from an investor perspective, is the fact that Rangers Football Club Ltd has no corporate history whatsoever. The club may have been founded in 1872 but the company it has hermit-crabbed into has only existed since May and has never published a single page of accounts.
On Aim, that’s fine. There’s no requirement for companies to demonstrate a trading record, with the burden falling on the Nomad to weed out all potential cash transfers from the gullible to the cynical. As LSE’s briefing document puts it:
[A] Nomad would expect that a strong AIM candidate (other than a pre-revenue business or perhaps a natural resources business) has the following characteristics:
* a record of sustained growth over at least three years
* forecasts that show sales continuing to grow
* a record that compares favourably with its peer group.
It looks tricky to class Rangers Football Club Ltd as a “pre revenue business.” Nor can it be easily classed as showing growth over recent years, given it either did not exist or was put into liquidation. Mr Green’s stated justification for the float — “strengthening the player squad, improving and developing the Club’s properties and facilities, as well as providing additional working capital” — is also open to question: Rangers cannot sign a player until January 2014 and its 51,000-seater stadium looks adequate in a league where the average attendance last year was 475.
Some suspicious types may assume that the £5.5m Mr Green’s consortium paid to buy Rangers was actually a loan that the cash call will help pay down. But, with Mr Green today referring to the company as “debt-free,” such suspicions are surely misplaced.
Over to you, official Nomad Cenkos Securities. We await the IPO prospectus with interest.
http://ftalphaville.ft.com/2012/10/11/1204671/ship-of-theseus-seeks-flotation/
Urlcy, sorry to hear about your mate, condolences.
Paul67:
“Why the hurry”?
It is only 10 weeks 5 days to Christmas…all I want is another administration party, two in a year…nirvana.
Keep the Faith!
Hail Hail!
http://whois.domaintools.com/rangersshareoffer.com
^^ all info available to the public
I wonder how long it takes Media House to bring the FT into line :oD))))
!!Bada Bing!!
12:41 on
11 October, 2012
Excellent.
Swiss
curly
Condolonces on the sad passing of your friend Stevie.
HH!!
The sevco share offer is bemusing at best
They are seeking money for.. player purchases……they are in the midst of a transfer embargo
working capital….they cannae buy players surely their expenditure must be fairly constant ..they havent commenced trading knowingly at a loss ..have they
also …upgrade of properties ..what if BDO seek to strike at the transfer of the properties ..as not for value
you`d have to be a mug to invest …it`ll be interesting to see how many mugs there are
in a league where the average attendance last year was 475 :oD)))))
500m apparently :)
lennon n mc….mjallby
13:24 on
11 October, 2012
estoril
Company? Is there a company that runs Celtic?
—-
Website quotes celticfc.co.uk/ also Celtic football club limited.
If the Zombies need working capital then that means they cant have any right now. So what is the club running on? Are the bills being paid? Are the taxes being paid?
I guess we will find out when the first set of accounts comes out … whenever that might be.
Why the hurry Mr Murray
Just show your stup[id stupid fans your accounts THEY WILL UNDERSTAND.
curly 12:53:
Sorry to hear of Stevie’s passing.
May God Bless Stevie Keith’s Soul…
Keep the Faith!
Hail Hail!
Curly,
Sorry to hear about your loss – RIP Stevie.
estorilbhoy
13:36 on
11 October, 2012
lennon n mc….mjallby
13:24 on
11 October, 2012
estoril
Company? Is there a company that runs Celtic?
—-
Website quotes celticfc.co.uk/ also Celtic football club limited.
—-
Not looking for a lengthy discussion on this just for clarification on impact on Sevco tax case will/ could have given that I understood tax case was against the liquidated company.
Ghuys , looking for some advice . taking up a short assignment in Coventry (!) so looking for , in order
1. A good Celtic pub
2. accomodation advice
3. suggestions as to what to do when ‘sent to coventry’
Thanks
Sanna
Condolences on the loss of your friend
RIP Stevie
Curly
Thoughts & Prayers with you and stevies family. YNWA
HAIL HAIL
estoril
But you being a good Tim will know that that is the same thing,wont you?
Iain Gibson @GeeOvanni1888
Lance Armstrong is only the second biggest cheat on 2 wheels after David Murray
Curly
So sorry to hear that. RIP. My thoughts are with you and the rest of Stevie’s friends and family.
lennon n mc….mjallby
13:41 on
11 October, 2012
estoril
But you being a good Tim will know that that is the same thing,wont you?
—-
Giving up mate, your not worth the hassle. Thanks for your input.
sannabhoy
you should have been sent there years ago :¬)))
So, no Armagedden then?
SPL has coped with loss of Rangers, says Neil Doncaster
estoril
In a normal carry on you would presume sevco have no liability but Green and the footballing authorities have tried their hardest to perpetuate the myth that its still the same football club so why shouldnt the tax case still impact upon them?
Estoril…..,
From what I gathered, Celtic FC Ltd is the club, one of the companies who own shares in Celtic FC Ltd is Celtic FC Plc
Curly
Sorry for your loss – RIP Stevie
estoril
My other post was regarding Celtic,theres no separate company running the club,I suggested you should know that already without looking on the website for a separate company name.
Peace.
HH
Lennon n…..,
I suggest you look again
Gordon J
a remarkable statement from the man forecasting finacial meltdown a matter of weeks ago
this guy makes it up as he goes along
Gordon_J backing Neil Lennon
£200,000 Final Demand Electricity Bill sitting on Green’s doormat for starters.