Rangers in administration (Non WHU)

[SammyLeeWasOffside]

Ah the Ridsdale gambit.

So the plan was, with no money to spend, to get into the CL proper every year until the ticket/pies/etc money started to come in again and hope no one noticed what he had done? Can't fault it for ambition.

[Matt of iron]

Ah the Ridsdale gambit.

So the plan was, with no money to spend, to get into the CL proper every year until the ticket/pies/etc money started to come in again and hope no one noticed what he had done? Can't fault it for ambition.

Maybe Sanity.

[Cuenca 'ammer]

Pinky

You understand all this stuff far better than me (and a few others no doubt).

Exactly how did this lad propose to run the club if all of the season tickets had gone ? On match day revenue i.e. pies and beer ? because their telly rights don't amount to much at all.

I am guessing that the Euro Chumps money he hoped to get wouldn't be paid ahead of time only after say each completed round or even games. What was he going to pay the players with ?

[Happyhammer52]

Bit harsh to go around calling Celik rubbish - the lad only played 3 games since joining Rangers and wasn't even fully match fit as the Swedish season ended in November !!!

The boy is mince, even if he isn't match fit he should be able to play at a decent standard in a dross league such as The SPL. Lack of pace being a main issue. Another Le TGV I think.

[the pink palermo]

Exactly how did this lad propose to run the club if all of the season tickets had gone ? On match day revenue i.e. pies and beer ? because their telly rights don't amount to much at all.

I am guessing that the Euro Chumps money he hoped to get wouldn't be paid ahead of time only after say each completed round or even games. What was he going to pay the players with ?

He was clearly going to rob peter to pay paul , try and sell players this summer .......extend lines of credit wherever he could , gradually running down the players contracts and reducing the wage bill .

A 5 minute review of their last published accounts should have given him enough clues that he would have to pump in serious cash .For example, even in the CL season of 2009/10 , where they turned the previous years loss of around £17m to a profit of £5m , the Finance Director drew specific attention in his comments to most of the cash from it being spent on previous transfer committments and paying debt interest .

The terms of the takeover were very specific in requiring him to pump in a transfer kitty of £5m a season for 5 seasons , plus provide an additional £5m in working capital , plus a further £1.7m for capex items on the stadium .He was also required, in the event of winning the £49m tax case not to class that as a debt from the club to him .In other words the sellers were trying to ensure he couldn't burden the club with a lucky win against the revenue . As a minimum though by 2016 Whyte was obliged to inject £31.7m , plus pay off the banks - roughly another £25m or so, and then the small matter of the £49m .That's in addition to funding any operating losses .

It was never , ever, likely to happen , and a large part of what happens at Rangers now will hinge on the terms of the takeover being breached : who legally owns Rangers ? MIH are unlikely to be too bothered as they received £1 for their shares .The minority shareholders - who waived their right to an equal consideration ( in effect about 30 pence in total ) , subject to the specific conditions being met , may have a case for a legal challange .

I would question why anyone would agree to such generous terms to pay for Rangers ( up to £105m worst case scenario) , unless they never really had any intention of adhereing to them .

It may just be possible that his fall back plan was to stick it into administration to force an accelerated reduction in players contracts via redundancy .

My theory is this - and it's complicated .

Whyte establishes a holding Co above rangers ........he then securitises the rangers ST sales with Ticketus - who give the cash to his new company,he then pays off the banks ( who don't care where the money has come from) , and from his holding company , issues a loan note to Rangers fc -( the business in administration), for a corresponding amount .

So, now , His holding Company are owed £20m odd by Rangers fc ( which he owns) , and it , the holding Co ( which he also owns) owe Ticketus £24m .

Whyte can then outvote HMRC on a CVA ( you need 75% of the creditors to agree), bring a streamlined business out of administration , settling the debt at a fraction in the £ , say 40pence .
Whyte can then use his share of the CVA to give money to his holding company , and offer Ticketus the same ratio in the £ as he got .

In essence , Whyte will have screwed HMRC and Ticketus , and picked up Rangers for a song .

All he needs do then is fund a much lower cost based Rangers going forward .And he can sell ST's next season to fans -they get around £25m in ticket sales each season , so if the players wage bill has been cut by £1m a month , that would be enough to run the club at breakeven as a minimum , even without CL football .

The grey area of course is would he via his holding Co, be allowed to sell the ST rights - owned by Rangers FC , and would Ticketus be stupid enough to go along with it .

He got his own administrators in , they will know more than we all do , and Whyte whilst shameless , is not stupid . I smell a rat in the whole affair......there's a nasty suprise going to come out of this .

[Cuenca 'ammer]

Sounds complex mate, like most things like this. Not even explained very well on the Rangers site (or I haven't found it).

He was going to trouser the season ticket money again then, after borrowing it once to pay off the banks, gip Ticketus and then resell seats he "effectively" didn't even own.

IF someone buys them they won't have this choice and will still be short the Ticketus money though shirley ? Unless they end up getting shafted for that and the new owners get the money.

Hinging on HMRC not sticking them with the unpaid bill though.

That's a lot of money for HMRC to give up chasing though isn't it ? Or will they have to give up knowing there is naff all in the till.

Effectively writing it all off and making the club debt free. OR could they place a lien on all future earnings until they get at least a big slice back. Still not making the 'Gers a lucrative buy.

[the pink palermo]

Cuenca

As far as I can see , so far , Whyte has spent a whole £1 on Rangers .He's used Ticketus cash to create a debt by Rangers FC to another Company of his ( if my theory is correct) , to secure the voting rights in any CVA .

Some of the money he committed to inject as part of the original deal may be available , and could be offered in whole or part to the administrator to secure his retained ownership : remember , he appointed them, he will have the inside track .

'Cept he will be buying a business with a much lower cost base, essentially giving him a better starting position .

I assume the debt on the big tax case would sit with the original Rangers .......not the new one .

I'm betting a year from now Whyte will be the owner , he will install a dummy chairman, and in a few years time, when all the fuss has died down, he will sell out at a bumper profit .

[Cuenca 'ammer]

Muddy Waters indeed Pinky.

Supporters have threatened to kill him if he ever shows up anywhere in the world.

[Denbighammer]

Supporters have threatened to kill him if he ever shows up anywhere in the world.

All he has to do is go somewhere really hot - the gingers can't get him there!

[Johnny Byrne's Boots]

Pinky wrote:-

I assume the debt on the big tax case would sit with the original Rangers .......not the new one

Wouldn't membership of the SFA also reside with the old Rangers? How would a brand new club start in the Premier League?

[the pink palermo]

Wouldn't membership of the SFA also reside with the old Rangers? How would a brand new club start in the Premier League?

Fair point JBB

Yes, it would need approval I would think , but ask yourself how many of the SPL's clubs could afford not to have Rangers fans at their grounds twice a year ?

SSN reporting they may reach agreement on wage cuts in the morning , which begs the question , where will the money come from to fund the club once they revert to full pay ? Or are the wage cuts permanent ?

There's something really dodgy about this now . Whyte is either extremely clever but dodgy , or completely stupid but honest .

The conditions attached to his aquisition suggest the outgoing Board at Rangers had doubts .....

[Jarvo]

Celik anyone ???

http://www.bbc.co.uk/sport/0/football/17221172" onclick="window.open(this.href);return false;

Was thinking the same...were we actually in talks with him before?

Bet he's glad he went to Rangers

[scottish iron]

While the financial implications for Rangers are vast and complicated , another skeleton has came rattling out of the closet and might just possibly open the biggest can of worms EVER seen in British or even world football ............

The allegation made by one of their former directors that umpteen players were improperly registered from the mid 90's through to the present day , as Rangers used a system whereby players had 2 contracts !! One contract was the one shown to the authorities but certain players had contracts to allow them to paid by this EBT's , which is what the main jist of HMRC case against them is .

The implications of this are far reaching and earth shatteringly bad for Rangers and the whole infrastructure of Scottish football .

If the players were improperly registered , as seems the case , then all trophies won using ineligible players are null and void , with a clamour already started in the media about stripping Rangers of the league titles won since 1998-99 season .

Then you get into the teams that Rangers played in Europe during this time , with the resultant differential in prize money for ECL fixtures . All the clubs that lost or drew with Rangers during this time could , I assume , approach UEFA/FIFA and demand the money they were basically cheated out of . I'm not sure what the prize money per point is in the CL but over the years I'm sure it would add up to a substantial amount .

Then you have the teams relegated from the SPL during this time . Can they claim they were unfairly relegated if Rangers played ineligible players against them during that season ? . What about teams beaten by Rangers in domestic cup competitions ?

As I said earlier , a can of worms on an epic scale .

And to top it all off , the suspicion that senior members of the ruling Scottish football bodies , SFA and SPL had knowledge of the chicanery going on at Ibrox , over many years , and chose to ignore it . Campbell Ogilvie was Rangers secretary for 27 yrs until he left in 2002 , he ended up on the Board of the SFA , so no conflict of interest there then !!!!

Gordon Smith ( ex Rangers & Brighton HA striker ) was another one who wore two hats , going from a position at the SFA to Rangers , then '' resigning '' a few wks ago as the whole financial tsunami became public knowledge .

Depending on how tenacious the Scottish media pursue these allegations , and remember , Rangers are the establishment club by a country mile , with the power and contacts reaching right to the very very top of the establishment , the revelations still to come out of Ibrox could make astonishing reading .

[the pink palermo]

Gordon Smith

Must score !

[QuintonNimoy]

He got his own administrators in...

I didn't realise this. This game....

If Ticketus end up being shafted in this way if I were them I'd probably be paying to have bits of Whyte turn up around Glasgow. There'd be no shortage of takers for the job.

[the pink palermo]

if I were them I'd probably be paying to have bits of Whyte turn up around Glasgow. There'd be no shortage of takers for the job.

Funnily enough when I lived in Glasgow I got interviewed ( under caution) by the police investigating the murder of a local gangster .Had a rock solid alibi luckily .
One of the more surreal experiences of my life .

[kielhammer]

Funnily enough when I lived in Glasgow I got interviewed ( under caution) by the police investigating the murder of a local gangster .Had a rock solid alibi luckily .
One of the more surreal experiences of my life .[/quote]

I certainly hope so,because if that was one of the more average experiences of your life,i would be slightly worried

[scottish iron]

Latest news reported is Dave King , the 2nd largest shareholder and the only remaining director from the Sir David Murray era has stated that liquidation is '' inevitable '''.

So that's a showstopper !!!! .

God knows what happens next . I would presume a ' newco ' Rangers would need to re-apply to the SFA to register and start off afresh in the 3rd Division . Because there's no way on Earth that the fans of every other club in Scotland will allow a new club , whoever they may be , to parachute straight into the Premier League .

If that SHOULD happen , it's truly goodnight for Scottish football because the fans will be shown irrefuteable evidence that the rules are being broken for one team . And why would they hand over their hard earned dosh to watch a product that has given up all pretence of being a sporting concern first and foremost .

And turned into a whore for a Sky TV deal ...............

[Wembley1966]

From the BBC Rangers live update feed:

15:28 BBC Scotland's Jonathan Sutherland: "On my way to relieve @BBCchrismclaug at Murray Park."

Should make for good viewing!

[the pink palermo]

Administrators have announced they are accelerating the sale process, informing the media they may be unable to fulfill their fixtures this season , and that the club is in a perilous state .

Running out of cash quite quickly .