It was unfortunate that young Master Murts recently strayed from the script.
Yes Graeme, if Sevco ever wins a major trophy then it WILL be the FIRST time that the new club has won major silverware.
They have, of course, won the coveted Petrofac Training Cup in 2016 and only four years after they were founded by Charlie and the boys.
Despite Mr Bomber’s exhortations to the contrary The People finally decided to back Charles of Normandy.
Of course, the support of Super salary was the crucial tipping point in that matter.
Since then the money has poured into the Sevco Triangle.
Remember that £278k per month?
Regular readers will recognise the quantum.
Well, I recently learned from an impeccably well-placed source that for at least the first six months of the King regime (March –September 2015) that payment was still being made.
Dear reader, you might think it difficult to hide £3.3m in the RIFC accounts.
However, when “other operating expenses” are so large and there is no breakdown then it isn’t such a…ahem…onerous task.
There are two key components that have been vital to the success of the Sevco Project.
Firstly there is the collective credulity The People.
Indeed…
Then there are the chaps in the local media.
The almost total absence of journalistic scrutiny on matters Ibrox is something that should concern all those in Fair Caledonia who value a free press.
Only during the Ashley interregnum, when King was agitating on the outside, was their hostile copy in the tabloids about the Ibrox leadership.
However, that was because the chaps on the sports desks correctly discerned that the home crowd at Ibrox wanted King and his …ahem…millions in the front door at Ibrox.
The chaps in the Stenography Corps realised that if Dave was at the top of the Marble Staircase then the succulent lamb days would return.
They have.
If the Fitba Fourth Estate failed in their journalistic duty during the Murray years then they have doubled down on Sevco.
After some uncharacteristic veracity about matters Ibrox in the summer of 2012…
It became necessary to squeeze more revenue out of the dignified demographic.
Hence the North Korean discipline among the Stenography Corp apropos liquidation denial.
Once you have bought into that Orwellian lie then little things like reporting an emergency loan as a good news story are easy.
Today I was steered towards the figure of 30% as the likely APR of the £3m loan.
It has to be paid back at the end of May.
Therefore, the season ticket pot is already almost £4m down at the start of the summer.
What is now discernible is that the Sevco cash shortfall is now beyond the means of directors.
There was a degree of comfort that the operating losses were being covered by emotionally committed chaps in the Blue Room.
That phase is now over.
It has been permanently Parked.
If you want an accurate report on the implications of the Close brothers “facility” then you will not find it in the SMSM.
Moreover, I simply didn’t believe the presentation that the Stewart Robertson gave to the media on this new arrangement with Close Brothers.
Indeed, I suspect that he has difficulty believing it himself.
Of course, the chaps at the presser were just there as uncritical, unquestioning couriers of the good news.
We have seen this Ibrox movie before and it doesn’t end well for The People.
Jesus! £278k a month! You could paint a lot of faces with cash like that.
Maybe they have a secret atomic weapons program in the background.
Thanks Phil,
I appreciate you keeping us all in the picture, reliance on Scottish journalism is just no longer a sensible option; not that I’m sure when it ever was.
I would also appreciate from you however a bit of light being shone on the Operating expenses at MY club; I am sick of hearing about all the money we’re making and not seeing it turned into credible new player talent. Our recent bank balance at £30m is all well and good but I just don’t understand the massive jump in our costs, surely it doesn’t cost that much to police/steward a few Champions League games?
Am I alone in thinking that the celebration of the Wonga Brother’s “overdraft” was not only a pacifier for the thickos upset at seeing the “A” word too much lately – but also an SOS out to thinking RRM worldwide to act and assist HMS Sevco. Just a tenner from each of the 500 million ex-pat loyal that Charles Green identified and all would be fine and dandy.
Well they’ve tried sugar daddies, and they’ve tried concert parties, and they’ve tried tapping supporters (Club1690), so surely it’s time to dip into the 21st century and try some global crowd funding. After that, well, it’s back to the “A” word.
Whilst I agree that this loan is not in any way good business for them, the rates referred to are nowhere near the Payday Loans companies of Wonga (1286%) or QuickQuid (1295%). 118118 Money quotes 99.9% although with a minimum term of 12 months.
30% is more in line with a Vanquis credit card (39.9%) or a Barclays Initial (34.9%).
Of more concern should be how on earth they fund the business next season, although maybe a restructuring (pre-pack) is planned before then. February 28th may be instructive.
Murty certainly isn’t the the sharpest tool in the box……..but a tool none the less!
Jabba will have to send him for specialist training on how to lie to the peepul, the media and himself with much more aplomb than he’s able to muster currently. Such courses can be expensive however and after all Murty is only there until the end of the season – if that, and every curdy must be accounted for in these precariously uncertain sevco times. HH
Gentlemen , I stand corrected , I calculated the interest at an annual rate.
Mia culpa , £300k + is still hefty when your scratching the way they are. be lucky
(I,ll get me coat)
As an aside disappointed to see that Steven McLean’s eyesight shows no sign of improvement as he ignores the Kung Fu assault by the goalie on Saturday.
Phil…
Do you have any update on the Compliance Officer’s “investigation”?
Just wondered.
Its taking a helluva long time.
i`ve once had a pay day loan for 2 months and the rates are crippling , never again i hope , but you are correct that 30% is not out of the question by any means
Going for 55 sorry I mean one. Tut tut Mr murty.
Keep the information coming Phil! The end seems near and I can’t wait!!! #UpTheCelts
Couple of points on this loan; on top of the 30% Apr that will cost them £300,000 there was undoubtedly an “origination fee” to get it and probably also a “facility fee” which is charged on % of whatever amount each month has not been used. Both are standard in these kinds of cases.
The real cost of this loan is liable to be £4.5M to club when done.
Secondly, the reason it’s being stated as having to be paid off in May when ST monies come in is that they will want this loan off the accounts by June 30. Their accounts are already precarious and to have another 3M of debt would cause the auditors problems. Also, this is NOT a soft loan and would most likely cause issues in accounts for licensing under FFP criteria.
Interesting story as ever, and good to see at least someone digging past the PR BS. However, one slight correction APR is annual premium rate and would only be a truly reflective figure if the loan was kept on all year, hence the reason payday loan companies show APRs in 3 or 4 figures.
This is only a 4 month loan so, assuming they manage to pony up on time, the interest would only be around 10% of the capital.
£300k is still a hell Olof to pay on a four month loan and suggests that the RRM directors can’t cover short falls now and that Dave/NOAL has no intention whatsoever of doing so.
30% of 3m = 900,000
Must be annoying to the directors who have kept them afloat with loans with no interest back for their efforts. In fact will they even get their money back? Yet this mob gets nearly £1 million for a few months outlay.
Only in the mind of a backward thinking sevconian is a soft loan not a debt?#!….yes it’s true a soft loan is not a debt….??
I’ve said it before….and I’ll say it again….
Any Football Club, which bases its future finances on being involved in European competition, and says it publicly….
Is heading for disaster.
Thanks for the update Phil,Mstr Murty did indeed throw the cat amongst the pigeons with his utterings.
‘A massive outpouring of emotions’ as he put it.
IF the staunch sevcolites get their hands on him it won’t be the only thing that is ‘outpouring’
Keep at them Phil,your tenacity is World Class.
HH?
Let’s be clear here. 30% APR is a high figure, but for a loan of only 4 months duration is only around £300K. Also the sum loaned might not be the whole £3MM now so interest only charged on what is borrowed.
However the chase bros will want it all back in May so TRFC start off £3.3 MM down before next season. Never mind the King share issue. That hasn’t gone away. Neither has the stadium repairs.
Ignorance is no excuse, when the *hit hits the fan. Without Reagan to bolster their friends list, things look bleak. I’d go for the end of May for decision time, bye bye fools, HH.
Maybe Murts has been doing as I have recently and reading the Articles of Association that the founders of RFC put in black and white in 1899. In particular section 6 at the bottom of page one where it says –
“The words “Club” and “Company” and also the words “Members” and “Shareholders”throughout the said Memorandum and Articles of Association shall, where the context admits it, be of synonymous meaning”
I don’t see any signs of an holding company being devised in the document. So Club and Company one in the same thing. So if one went bust in 2012 they both went bust.
Murts manages a new club.
If it was the company as a separate entity from the club that went bust why didn’t the club just carry on as if nothing untoward had occurred?
Oh what a tangled web we weave……
It appears young master Murts can’t help blurting out the truth.
His knuckles must be well and truly smarting .
Just a couple of weeks ago after the Fraserburgh game , on the More or less transfer debacle, he admitted “I’m not sure how much of it was substantially there for him”…tut tut….
Now he’s admitting they are a new club..
Oh dear, oh dear, oh dear…
Jabba must be kacking it every time Murts is near a microphone. Next he’ll be infering that they have no paddles and the creek their in has a distinct aroma.
As for the interest rate on their ‘credit facility ‘ ooofftt….even the rank and vile peepul must see that as fairly punitive deal.
As they say “where there’s a corpse, there are vultures circling”….
I hear a fat lady gargling somewhere…..
Murthy has done an excellent job for them,maybe it was the way he was brought up,the Celtic way.
The auditors must be having kittens having signed off on the accounts in good faith based on directors promises, the principle one of which was funding.
Funding, which following the secured loan from Close Bros, we know has not materialised.
It’s difficult, if not impossible, to see anything other than a substantial operating loss for the current financial year with payroll through the roof with a number of players picking up big money and contributing nothing.
Pena will do well to outlast Pedro in Mexico as his new team flounders and Pena gets dogs abuse from the home support.
If any further evidence was required as to Pedro’s abilities, or lack of, his latest spell in Mexico tells it’s own story.
Even now it’s hard to fathom how the Newco selection board went for him, picked from a long list of outstanding candidates we were told with Level 5 bigging up the Portoguese tactical genius when in reality they were polishing a turd….but hey when someone else is writing the cheques even polishing turds is not to be sniffed at.
I recommend your readers Google “Close Brothers reviews”. These reviews by former employees and customers make interesting reading. I can’t remember which site, but a few days ago a “Craig Whyte” left a review after the story broke. Obviously, someone having a laugh, but a good one at that.
I took your advice…and found that Phil ( and other bloggers) had received a nasty review.
It may be instructive to compare the timescales of the present club accepting a last-resort secured loan from the Close Brothers, and the previous club under Craig Whyte taking out a similar loan with the same firm.
It was in autumn of 2011 that Craig Whyte accepted a £2 million advance from the Close (-to-the-End) Brothers, to be repaid from future Ibrox catering revenue. In February 2012, The Rangers Football Club plc went into administration, and on October 31st 2012 it went into liquidation.
By that timetable, we would have around 12 months till the death of the new club, and no doubt the establishment of Third Rangers.
Or perhaps it will be The The Rangers? Or The Sevco? Or The Red Bull Glasgow?
Personally, my preferred naming option would be The Mighty Morphin Poorer Rangers.
But then I like a bit of sci-fi, me.
I have noted in tv adverts for online gambling you are advised for your own welfare ”When the fun stops, STOP” I wonder will it be a requirement on any prospectus for their next fabled share offering?
When PL stated he had left the building and was merely looking in form the outside he hinted Regan had took the wrap for the failures to secure mangement for Scotland and was partly to blame for the failed ideas regards friendlies. Some ore cynical might say Regans resignation has been smoke and mirrors, as all I can see is financial underhand arrangements in place with Sevco and no-one is at home to deal with it should it be brought up. Deflactions until season book fleecing in play and the real story once again buried until the cash is in.
I wouldn’t like ke to be paying compound interest on 30% APR
Hi Phil
Another good piece. As well as the interest rate I presume there will be a brokerage fee as is normal with these types of transactions.
As for master murts I noticed the smsm have deleted first and inserted next.
I think his time is nearly up as he is uncomfortable lying to the smsm he can’t even look them in the eye.
Interesting that Robertson said some of the money was to be used to upgrade the area around ibrokes. Is this to secure the safety certificate Phil maybe you could investigate.
Because I for one wouldn’t be fixing the garden with money from loan sharks if I couldn’t pay my mortgage
Keep up the good work
HH
Listening to Bryan Jackson (insolvency specialist) on Off the Ball yesterday and he was discussing why businesses are reluctant to call in debts from football clubs and how most people would be surprised at how long they can struggle on for without paying their bills.
http://www.bbc.co.uk/programmes/b09rjr7p
Dave dasterly and Murty.
Sevco could make a cracking cartoon about that. You know how it goes…. Dave insists on doing crazy things his way while Murty rolled his eyes and has a right good laugh.
Much like the rest of us.
Wotabuncha totties they all are
I would think following that wee faux pas winning the cup may not save young Murts….its very dangerous to stray off the party line with Sevco….they have a short attention span and unreliable and selective memories.
It’s ok I think they Murts slip up as not one of the SMSM reported it, it never happened, the DR just ragdolled a dead man instead, it’s time Peter Lawwell took them to task over it ,
My old Principal History teacher was brilliant and a really good man.
He always said that history had to be learned from and gave the the various invasions of Russia as examples.
Clearly the Sevconites were not paying attention in their history classes or they were just too thick,or maybe both.
There is a financial Tsunami coming their way, it happened before didn’t it?History repeating itself, eh? Lol
Excellent blog.
Phil as normal excellent work.
Are Sevco flouting financial rulings once again.
It makes no sense that a club,which relies heavily on soft loans,was able to attract further players in the January window,without players going out the opposite way.
They seem to be financial cheating again,under the noses of the governing body and the media.
Is there any fininacial rules in place,that should stop such ludicrous spending policies such as this.
It looks like wee Craigy all over again,season books sold,and the hope of European football,to gain financial help to help keep the lights on this season.
Ohh I do hope this club goes down the same road as the club it harks to be.
£900,ooo.oo interest on what is effectively a three month loan ,you don’t need to be a financial genius to figure that is last chance saloon material.
There is no way to tart up that kind of mark up ,especially over such a short period.
It also flags up to all and sundry that they are up to their knees in a different kind of fluid. Those that care to look that is.
The noose tightens another wee bit. be lucky.
If the APR is in the region of 30% a four months loan works out at around £300,000. Still a lot of bawbees though.
That would be an annualised amount of interest, ie if the loan was held for 12 months. The actual interest will be pro-rata for 3 months…
Young Master Mutly looks like a nervous wreck every time he has to face the press and I’m surprised his tweets aren’t “authorised!”
Maybe there’ll be some high level scrutiny from now on?
30% interest rates don’t sound like a sustainable approach.
As for Murty’s comments… he is to be applauded for speaking the truth. Especially as it embarrasses certain churnalistic cheerleaders in the press, as I indicate here (if I may…)
https://theclumpany.wordpress.com/2018/02/09/a-stark-reminder-to-liquidation-deniers/