Interest rates and confidential sources

I learned today that this piece caused some angst among the upper echelons of the Sevco High Command.

Apparently, hardly anyone was in that particular loop.

This has led to some unbrotherly accusations about being untrustworthy.

Oh dear.

At the time of writing those two savvy investors have yet to take Dave at his word.

The report that some banking facilities have been accessed by Sevco for the first time in the history of the six year old club will be trumpeted as a great triumph.

However, just like the loudly trumpeted “victory” over General Ashley, the devil will be in the terms and conditions.

They might well make for interesting reading.

I think it is likely that Sevco will be charged punitive rates.

Moreover, the precise nature of those will shine another bit of light onto the cash situation at the basket of assets.

For the avoidance of doubt, you are unlikely to read about those details in the tabloids.

41 thoughts on “Interest rates and confidential sources”

  1. Reminds me of the old celtic board in the 90’s trying to rob peter to pay Paul. Cambuslang will be a goer soon it will all end in a sea of sevco tears.

  2. If you add the quoted £3m to the loans stated in the published accounts and ignore for a minute the fact that the £7m plug to meet the forecast cash shortfall may not be forthcoming, the total loans will soon be approaching 75% plus of revenue.
    Even if, and it’s a big if, a share issue got off the ground and was successful, I think Green brought in £22m, it won’t be enough to pay off the loans never mind cover working capital and player investment.
    With all things Ibrox related there is no real transparency, just the media rehashing the Level 5 spiel.
    The Morelos nonsense cools and along comes someone else to keep the lights on with security over the prized assets of the car park and Edmiston House.
    The January wage bill could hit an all time high for Newco.
    Halliday, Dodoo and O’Halloran recalled from loan and the addition of Goss, Docherty, Murphy, Cummings and Martin to the payroll with Pena and Wilson going the other way, though Pena’s new club is adamant that they are only covering a % of his wage packet.
    Mr Robertson must be hugely relieved that Close Brothers chose the Ibrox club to add to their client base.
    With dignity all important at Ibrox it just would not do if the club had been knocking on doors looking for someone, anyone, to plug the gap in finances.

  3. Quote Stewart Robertson…’s unusual for a business with a £30m turnover not to have an overdraft facility.
    Really Stewart, did your ICAS training not cover liquidation?
    Of course the continuation myth falls apart here when it’s clear that the loan is to the new club not the old club.
    Come on who in their right mind would lend money to a business that recently went bust and is being liquidated , having stiffed creditors for tens of millions of pounds?
    Not forgetting most of the current board were on site when the previous entity collapsed and that the man currently pulling the strings is a convicted criminal.

    1. It’s interesting to read The Sun report in Phil’s link. Apparently it’s the first time Sevco have had banking facilities since it ‘plunged into liquidation.’ In the next paragraph it talks about them,’emerging from liquidation!’ This is the standard of our national press! It is way beyond farce. Either that or we have all missed the point. Rangers, like Jesus, are resurrected from death! We are blind and deaf to this miracle in Govan!

  4. And if only they had taken the £8 mulyin for morelos they could have avoided the need to put edmiston and the car park in jeopardy. Lets face it, even with their most expensive asset in the team they are still not going to stop 10 in a row. They died chasing the European cup, they’ll die again trying to stop us from winning 10.

    1. What eight mulyin? It was 16 mulyin when you add the 100% tax on the player, which is why Augusto Fernandez closed the transfer window after the departure of Nikica Jelavic, whose club, Rapid Vienna never did get paid by the GGRFC.

  5. Robertson is lost in the Ibrox and Evel5 alternative reality bubble.

    Who was the last MD of a national institution who felt the need to inform his clientele that the company is not going bust and have just arranged additional borrowing at a higher rate than prviuosly to prove it.

    He’ll be telling us next that all is well because the players have been reimbursed for their Florida airfares – assuming they have been 🙂

    1. He’s an accountant who’s landed a job with a ‘big’ fitba club. He’s living his Boys Own dream and it’s an even bigger fantasy than his comic book heroes. He reminds of Michael Palin in Monty Python as the accountant who really wanted to be a lion tamer. He’s out of his depth. King’s poodle and patsy. History will not reflect well on this grinning buffoon when this soap opera ends.

  6. This loan is being secured against the car park and Edmiston house, Is there still question re- the ownership of the stadium and Murray Park or are these already securing other finances.

  7. What the hell does the Daily Radar mean when it writes that King is in talks with The Takeover Panel?
    Talks about what?
    I see an article in one of the other rags stating that the club had come out of liquidation….well, there’s a first!

  8. Is this money to fill the cash shortfall which King had pledged to fund?
    Secured against assets…..more than likely.
    Why else would anyone advance cash to a loss making business being propped up by monthly loans from directors and other parties and of course which has never made a profit in it’s short lifetime.
    Of course the problem is that once you sell the family silver, you can’t sell it again, it’s gone.
    If NOAL has reneged on King’s funding promises is this an attempt to keep the auditors on side?
    They signed off on the accounts based on information provided by the Directors plus promises of funding by King, more fool them.
    No doubt Close Brothers will be all over the finances at Ibrox and as long as their is adequate security they may pump more money in.
    King’s day of reckoning with the COS/TOP is fast approaching, that’s not going to end well.
    Though it must be reassuring for the fan base that both Stewart Robertson and Richard Wilson are adamant that the club will not be impacted by the outcome….. boy what a relief.
    So there’s the reason that the £8m offer for Morelos was turned down. Funding had been sourced elsewhere. No matter what rates of interest are being applied all it does is add to the monthly outgoings.
    Has King, NOAL, not stepped up to the plate because Lord Bannatyne has been keeping a close watch on the situation?
    He had to sit through King’s brief claiming that his client had no funds and that NOAL had hee haw to do with King, therefore he would not have been pleased to see NOAL funds arriving at Ibrox to keep the lights on.
    Interesting development, Chris Jack will be hailing this development as a game changer when in reality the funds required to keep the lights on are coming from a different source.
    It’s worth noting that half of the gate and TV money from the Ayr cup tie won’t cover Bruno’s January pay packet, never mind any of his team mates.
    With a number of new faces and the recall of loanees plus additional backroom staff January payroll will be eye watering indeed.
    Lets not forget a significant pay increase to reflect the asset value of Morelos.

  9. Wait a minute, why the need for this busisness.
    Have the forgotten about Dave’s 50 million?

    Just simply ask for 3 from him…

    Why do they complicate things so much?

  10. Do Close Brothers have any experience dealing with Scottish football criminals? If not, they should give Octopus/Ticketus a call for a few pointers.

  11. Is it a coincidence that Close Brothers do invoice financing?

    The Daily Rectum’s account makes it sound like somthing every club should aim to acheive. More Evil5 bullshit. Oh dear.

    I particularly like the bit about Dave King being in talks with the Takeover Panel over his 20p share offer. Aye, right.

  12. Close brothers is a finance company!
    If anyone out there has car insurance and you pay it monthly then they’re probably the finance company who you’re paying your insurance to.
    Season ticket money is probably being paid to them plus interest as soon as the money comes in. So basically when they get the season ticket money they’re still skint. How is this being allowed by the SFA? Surely they’re running insolvent which is against company law.

    1. Exactly. As one who has been of the old school and fortunately never have been in Debt in my Life were i a Hun this would smell of the utmost Shite to me . Anyone with half a Brain knows that the Interest on this will be Higher than a Provident Loan as Huns were probably rejected by them already. Where is the supposed Doa that King would be putting in . £3Million will not even cover the cost of repairs to Toilet damage after the Billy Boys wreck them again on next visit to Celtic Park. Also who I wonder is the Guarantor for such a loan .It wouldn’t be the SFA through some back door as am sure this firm cannot be as gullible as say Ticketus was. Or am I just being Obtuse.

  13. Did the original rangers not have links to close brothers right up until admin Phil? If so I doubt this will be a giveaway

  14. The loan is with a firm called Close Brothers, and they offer a wide range of banking and loan products. The terms of the loan will entirely depend on whether (a) it was provided on a secured or unsecured basis with secured getting a much more favorable (lower) rate, and (b) what the nature and quality is of any collateral if it is a secured facility.

    One thing I noticed while perusing Close Brothers’ web site is that they provide both invoice factoring (the sale of receivables at a discount) and invoice discounting which is similar to factoring except that the client (RIFC in this case) retains the default risk and has to pay interest on the invoices until they are ultimately paid.

    If I was a betting man (I’m not), I would wager that RIFC obtained a secured lending facility backed by (1) Ibrox, (2) invoices, or (3) future season ticket income. The interest and fees on such a loan would be relatively small, likely less than 5% per annum.

  15. Are the “new bankers” providing the so called “overdraft” going to catch a cold if this cold shoulder ever hits and if so is that the end of the car park and the haunted house . If only Sevco had access to a spare £7 million .

  16. This arrangement I’d imagine carries a very high risk to that club. The security, I’d hypothesise is in extremis.

    No invoice financing was available, nor a line of credit at acceptable business rates.
    Seems like ibrokes benefit book will be handed over to the moneylender on buroo day.

  17. When the story broke I saw a screenshot of The Sun on Twitter, apparently, the club emerged from liquidation, is that possible? Against my better judgment, I went on to read the story and came away utterly appalled at the comments from Ibrox fans. They are vile and abusive with one telling another contributor to go and kill himself. I know abuse happens online but this is the first time I have actually read it and still reeling from the experience. No more current bun for me after that.

  18. I’m confused, “Rangers” is not a legal entity so can’t have banking facilities and I’m pretty sure the “holding company vehicle” that now has banking facilities did not exist during the Murray or Whyte era.

    It’s like religion; you have to be a true believer to ignore the internal contradictions and keep on believing while everyone else is left scratching their heads.

  19. Desperation I fear. Could they no just do the decent thing and loan against future SB sales. Worked for years under Murray. One thing is for sure they are guaranteed mugs coming thru the turnstiles.

    I wonder which assets are tied to this or maybe future contractual add ons to recently sold players. If the latter it would be a couple of hundred K max. When Garner is a full English international or wee Barrie wins the CL it will pay a fortune.

    Where’s NOAL when you need them.

  20. so that’s the hun hordes celebrating getting an overdraft,which is for operating costs and is an addon to the other 7 million needed to see out this season till the season book money is in,so basically on top of last seasons money coming into the club they have needed 10 million more at least to keep the lights on.also with this overdraft and their buy now pay later transfer policy they are already eating into next seasons season book money.

  21. They aren’t a bank are they. So the “ credit line” is going to take the form of huge interest loans secured against assets are they not. Looks like the soft loan tap is permanently screwed shut and it’s desoeration loan time instead. Hilarious watching the compliant press trying to polish this particular dog tu*d into a positive though lol

    1. One of the services Close Brothers offers is Invoice Financing. I’m pretty sure I read somewhere that Rangers had approached several of these companies a few weeks back because they don’t think Dodgy Dave will come through with £millions he promised. Interesting to see how they’ve spun it into a positive, Robertson even said Close Brothers approached them and it’s a “vote of confidence in the club”.

  22. The devil will be alive and well in the T&C’s. Only a question of whether its via a Ticketus type arrangement (to make sure they get the money back when ST time rolls around) or if it was done with a security on the stadium to back it. One thing is for sure, the companies are not called vulture capitalists for nothing.

    1. Sorry Peter, you have venture capitalists and vulture capitalists mixed up.
      Venture capitalists support potentially successful companies at their outset, vulture capitalists pick the decaying meat off a dying carcass.

  23. This is the equivalent of survivors from a shipwreck in a damaged lifeboat waving a flag desperately to attract rescue.
    Only to find the rescuers are pirates looking for the passengers valuables.
    Gone from yellow alert to amber.

  24. Gary Ralston at the daily radar is spinning as a bank loan but one look at Close Brothers web site would show him immediately that they are an asset loan company not a bank. Still,best not to let the truth get to the gullibillies eh? just keep feeding them level5 garbage!

    1. Close Brothers is a full service banking company. They take deposits (albiet not in traditional bank branches) as well as provide services for securities trading, and a wide variety of loans. But you’re not wrong in noting that a large portion of their website is devoted to various forms of secured lending. However, they do provide unsecured lending (as do all full-service banks) to the right customers at the right terms. Given their most recent set of accounts, it’s doubtful RIFC obtained an unsecured facility at an acceptable interest rate, and it’s much more likely that they got a secured loan at a relatively low rate backed by strong collateral.

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