I am hearing this morning that the Sevco script writing team have brought back an enthralling story line from the past.
My information is that Sale & Leaseback has been discussed recently within the Sevco High Command.
I tried to clarify if this was favoured by all of the chaps in the Blue Room.
I’m told that Mr King is rather keen on this wheeze.
However, I was told that this option was also being considered by the rebel faction on the board.
It was encouraging to hear that one very senior member of the Sevco High Command wants the Holding Company Vehicle to be run on a self-sustaining basis.
In other words, he wishes to conduct the business in a way similar to how Mr Leach and Llambias had things before the Off Licence Putsch.
As I have written here before, General Ashley’s chaps were within one-quarter of turning HMS Sevco into sheltered waters.
They were that close to making the Holding Company Vehicle cash flow neutral for the first time in its short history.
As it stands now it is only the generosity of a few directors that prevents an insolvency event.
However, that isn’t a long-term strategy.
Quite simply, the current chaps in the Blue Room cannot continue to write cheques to cover the shortfall.
You see dear reader, Sevco is a loss-making business without a credit line from a bank.
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Colour me confuzzled Phil, but the S&L of Ibrox needs some further explaining.
In previous blogs it’s been mentioned about the £278k per month that apparently leaves Sevco to a black hole somewhere – if this is indeed the case, then how is it in their gift to secure a S&L on the stadium.
I’m not dismissing your take on it – but in the interests of investigative journalism ( that is non-existent in this entity apart form yourself), this point could do with some clarification – as the two possibilities can’t seem to co-exist together.
Thanks
cheers again Phil
It’s laudable that someone on the Sevco board believes that the club should be run on a “self sustaining basis”. Laudable, but a wee bit late!
What happens to that strategy if Mike Ashley ( SDI) is successful in his upcoming litigation against TRIFC?
It was clear from the public disclosures in the TAB report that Kingco were happy to advance loans secured against Ibrox and Murray Park at commercial rates.
Cue an outcry from the fan base?
No problem, Kingco could deliver the support of the fan base without question via his placemen amongst the various fan groups, all of whom have been rewarded in one form or another by King for their unstinting efforts to back him and the new board.
It seems highly unlikely that within the next few days King will find a Nomad and mail a prospectus to the current shareholders…….as the TOP could shoulder is so rare it’s difficult to gauge the impact on King personally or on the football club.
Whether King is thumbing his nose at the TAB ruling, or is unable to deliver the prospectus and funding, will matter little to the financial establishment.
It’s one thing having Level 5 promote the ‘still assessing my options line’ which they know the Scottish media will pick up and run with, it’s quite another lying to serious professionals who have the power of life and death over you and yours financial affairs.
Phil; I could see how that option, pretty much their only one at this point, would look attractive to them. But don’t think this would be easy to do, nor would it bring in as much money as they may think.
And whether King or another board member does it, it really is at best a short term fix with a major blow to their long term prospects. IMO, this buys a little time, but doesn’t change the dynamic of ultimately hitting the wall. After, you can only keep running on emergency loans for only so long before people refuse to throw more good money after bad.
Sale and Lease back?
With all that spare cash maybe the club from the East End should consider “investing”. It would be nice for the development squad to have their own ground instead of playing at cappielaw, livingston or lennoxtown.
They could rent it to others every other weekend.
btw – my comment assumes they are trying to S&L Ibrox and Murray Park – rather than the cassino, hotel and space portal.
What is the conbined net asset value of these two properties after adjusting for repair costs, re-use restrictions, dearth of potential buyers, emotional/voilent protest to re-use, existing financial encumberments and onerous contracts.
Desparate stuff indeed and all in a great hurry. Hard to imagine it raising enough (8-figues) in time to avoid the TAB cold shoulder. They must be talking to some heavy, heavy people who don’t react calmly to having the piss taken.
Site very slow to access -…. any issues.
Also can only see last 4 stories on home page…..?
toots
There is a little icon with three lines in the top corner. If u tap that then blog u will see more entries. I beleive the putpose is to keep the home page only to most relevant stuff.
I think you have to hit on the Blogs heading to bring up others.
When your best player, by a long shot, is 37 years old you either have problems or Zlatan.
Brilliant comment! Kingsnake
” Whaurs thay deeds !!! “
“Whaurs thay deeds !!!”
phil
nothing is REALLY “off topic” in this hilarious clusterfvck, however: slightly OT
if SEVCO SMELLS LIKE A DUCK FC (pretendy ranjurrs) somehow (i know… i know!) manage to slink into 3rd place (or i believe a 4th place finish might suffice if the mighty glasgow cellic roll on…) and become eligible (tee hee hee…!) for yooropean fitba’….
how in the name of sweet be-jayzus do you see the “authorities” (please….. stop…. no more…. my poor aching sides!) swinging the FFP / OOFA licence thing – especially in the dull afterglow of the seriously dodgy events of 2011/12….
any thoughts?
nick