Murray Park

Murray Park was a powerful symbol of where David Murray wanted to take Rangers.

Construction work was stopped on hotel at Ibrox so that the allotted cash could go on the training complex that manager Dick Advocaat demanded.

For the Dutchman this was a line in the sand.

If he did not get a world class training facility then he was walking.

Murray blinked and Rangers got a training complex instead of a hotel.

The latter would have brought in revenue; the former drained away cash from day one.

People who are close to the numbers tell me that Murray Park is a huge drain on resources for the Ibrox outfit.

This was true of Rangers and it remains the case at Sevco.

Regular readers here will know, of course, that the current football operation at Ibrox is unsustainable.

A large part of that is Murray Park.

The monument to Dick Advocaat’s influence over David Murray is now on the radar of various factions within Rangers International Football Club (RIFC).

These chaps have, in the last few months, found little to agree on.

However they all see that if the running costs of Murray Park could vanish from the balance sheet then huge progress could be made towards reaching the Break Even Point.

The success of the Season Ticket strike has prevented any attempt by the chaps at RIFC from going to the City to raise further revues through a share issue.

Now Murray Park, despite the Contingent Liability from Sevco 5088, is now seen as an asset to raise finance on.

I understand that Green and White Star is the vehicle which Laxey Partners intend to use for the disposal of Murray Park.

Seeking a buyer for the training ground would be difficult given the Contingent Liability.

It would be very much a case of caveat emptor on that one.

It is worth recalling that when the Laxey/Easdale loan  (which then became the Letham/Easdale loan) went through earlier this year to keep the lights on it was secured on Edmiston House and the legendary Albion car park.

As these fine pieces of Real estate were purchased after the asset purchase from Duff & Phelps then they are not subject to the Sevco 5088 legal dispute over ownership.

However another option would be for Murray Park to be used as security for another loan from Laxey to RIFC/Sevco.

Of course for that to happen then I would suspect those clever hedge fund people would need to be in discussions with a certain suave billionaire about what it would take to get him off the radar.

It is not disputed by the people in the Blue Room that if they could ditch Murray Park and also could dispense with the services of the current management team then they would be close to Break Even Point.

A Share Option within the existing shareholders could raise between £6 -£8 million.

The annual cost of Murray Park is somewhere between £12-£13 million.

Lose that off the balance sheet and then you have a cost base of £24 million and then Break Even Point is just £6 million away.

I understand that the onerous contracts are taking out somewhere between £3 -£4miilion.

Moreover some of these contracts last for 20 years.

The recipients of these generous retainers for not doing very much will want to keep the show on the road.

Those shareholders who came in after the IPO and have seen their investment diminish see Administration as the only route to cut SOME of the costs.

It is dear reader a complete mess, just in case you were wondering.

Senior RIFC chaps spoke to three potential investors in the Square Mile recently and were told that there was no chance of any new capital being raised through a further share issue.

Charles Green was able to take the existence of a loyal customer base to potential investors in the City at the time of the IPO.

That is now off the table as social media is alive with Ibrox folk who have not renewed their Season Ticket after many years in the same seat.

The Shareholder Option and any finance raised on Murray Park (either by sale or borrowing against it) can keep the lights on while cuts are made.

Some in the Blue Room have wanted to use Administration for this austerity.

However, other major shareholders don’t fancy that route to the company reaching Break Even Point.

Although they don’t agree on much the folk running RIFC want to avoid liquidation at all costs.

Only the King across the water would benefit from such scenario

There are many moving pieces in this Carry On Film of a football club.

However, the ‘Onerous Contracts’ and the Contingent Liability to Sevco 5088 are key components of the script, one bleeds money from the business and the other prevents the company from securing normal credit.

If Mr Bomber wants to give another oration to the klan then it might well be more appropriate to do so at the gates of Murray Park rather on the steps of the stadium that he played for.

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