Dave King’s Pyrrhic victory with the Takeover Panel has generated another seven-figure bill for Sevco.
Note to Mr Gerrard that means it is at least £1m, but not £10m
Actually, it is much closer to the original figure.
Going into the final court hearing the legal fees for the Takeover panel were in the region of £710k.
That’s a six-figure sum, Stevie…
Mr King’s legal bill, at that point, was £200k.
Therefore, the final cost should be just over £1m.
I’m told that the chaps in the Takeover Panel are not minded to negotiate on their costs.
However, rest assured that Dave will not have to pay.
The bill will almost certainly land on Sevco.
The next step in this saga might come from three individual shareholders.
One or more of them could raise a separate legal action.
My information is that if this comes to pass then the Takeover Panel will furnish documentary evidence to assist the litigation.
For what it is worth the chaps at the regulatory body believe that Sevco are financially in a bad way.
Do with that what you will.
At a recent conclave of the Sevco High Command, the Serious Professional raised the matter of interim accounts.
This was angrily shot down by Lord Impecunious.
As I stated yesterday decent guys can wander into the wrong movie.
Clearly, it isn’t my place, but if I were on the Sevco scriptwriting team I would have a storyline that reintroduced Charles of Normandy for the next series.
Perhaps something to do with him claiming back legal fees from his criminal proceedings.
Thankfully they’re all behind him now as he enjoys life at Château Sevco, but the lawyers had to be paid.
Of course, that’s just a suggestion for the scriptwriters.
What is definitely in the offing in the next few episodes is General Ashley going for a contempt of court ruling on the Sevco car boot sale.
I’ve seen the trailer for that.
Finally, I found it especially heart-warming that Mr McCoist stated that he would not avail of the court imposed offer for his RIFC shares.
His contribution in this matter was value added to Mr King as every such declaration counted.
Now, if I were one of those fine chaps in Club 1872 then I would approach the man they call Super Salary and make him a decent offer for his shares.
Just to show gratitude for being so selfless in Dave’s hour of need.
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Phil if you could guess who the 3 shareholders are who you think? Guess of course.
Interesting how the Scottish media are now talking up ‘Rangrs cashing in on Morelos’…
All talk of keeping him beyond the summer seems to have gone for some reason…
What happened to “holding on to him at all costs… falling out with people over him “ etc etc..?
Prepare to hear much much pish about Rainjuurz deciding to profit on their star asset and reinvest in the playing staff, because they want to…
If Google or Babelfish did a ‘SMSM Hunspeak 〰️ English translation it would come out as…
“We’re skint! Dave needs cash to pay his court costs and we’ve no paid VAT since 2016. Plus Daves got a 7 figure tax bill (a real one Stevie) due in South Africa.
We’ll need the rest just to pay De-Faux unless we can get him out on a breach of contract.”
Of course we will all know this without any translation.
As we also know…. there will be certain ‘people’ that will never grasp the true meaning until it is all too late…
You know the responses…
“Why weren’t we told?” A – You were.
“Why was this man allowed to run oor club?”
A – Because you let him.
“We demand to know who is responsible!”
A – You are.
“This can’t happen to Rainjuurz again!”
A – correct. You’re NOT Rangers.
I note that FIFA are exercising their authoritative muscle on Chelski…
A 2 window transfer ban tuning into 2020 for their underhand tactics in securing (read as removed from market) young players to their books.
They’ve been at this for years though. I personally know 2 players now in their mid twenties who were ‘signed’ by Chelsea by age 17 only to be stockpiled and if lucky loaned to much lower league clubs on dubious terms.
One of the two never recovered. The experience broke him and his football career ended by 19.
The other muddled through with spells in league 1 clubs and Scottish sides. He now plays for one of the Scottish Premiers relegation battlers.
He has survived the ‘Chelski treatment’ – seduced by money and a promise of ‘big time’.
There will be far many UK players fallen away nevr mind the African and South Americans who can be tied up for what is a fortune at home, but a drop in the ocean to a Russian Oligarchs coffers.
I am hoping (but doubt) that it is the first domino in a long run that will topple English football’s self importance if not its financial dominance.
Good to see FIFA actually doing something.
If only ‘they’ or UEFA would poke their ‘snouts of governance’ into the goings on at the SFA for the last 25 years…
That would be a story !
The TOP business may have cost King a bit more.
To fund it, he used the proceeds of a special dividend paid by his MICROMega (MMG – now Sebata (SEB)) company in South Africa.
This dividend was purportedly to distribute the proceeds of MMG’s sale of its NOSA subsidiary. The timing coincided nicely with the supposedly impecunious King needing funds for the share offer.
In King’s original circular to shareholders, he intimated the dividend would be ” anticipated to be not less than R4.00 per share” – see section 3.4 on page 12 at http://www.micromega.co.za/wp-content/uploads/Circular-to-MICROmega-Shareholders-%E2%80%93-January-2018.pdf
4 rand on MMG’s 114m shares equates to about £28m. King holds 63% of MMG. He could anticipate a dividend of at least £17.3m, with £10.7m going to the other 37% holders of MMG,
Of course, King didn’t need quite that much to fund the share offer. Remember, this is before the August, 2018 share issue of RIFC. At the time, the number of RIFC held by the non-concert party was 53.7m, requiring about £10.75m to purchase all at 20p.
King then conveniently reduces the dividend to R3. This would give him just over £13m, with £8m going to other MMG holders.
There then is a little matter of the South Africa dividend tax of 20%.King would have to pay £2.6m to SARS on his dividend.
He has to pay £8m to other MMG holders, but stiffs them of an additional £2,7m by not paying the promised R4 per share. He doesn’t need the extra 1R, nor does he wish to pay dividend tax on it.
The financing of the offer for RIFCot on page 3 at http://www.sars.gov.za/AllDocs/Documents/3rdPartyData/IndustryCommunication-DWT-20-Change-3.pdf
At the least, King had to pay a hefty dividend tax in SA. We know how he is loathe to pay taxes there.
At most, he paid £8m to other MMG holders that he may not have wished to pay had he not needed funds to satisfy the TOP mandate.
We now know King only needed £8m to be deposited in the UK to fund the offer. I wonder if those funds are still in the UK ready to spend on Rangers this summer, or if they were wired back to SA at 1:01 pm on 15 February.
All of this could have been avoided if King had listened to Park & limited the Concert Party’s holding to 29.9%.
710+200 <1m stevey
…but can Club1872 afford to make the Constant Gardener an offer ?
As you have reported previously , haven’t they become indebted to a worrying degree in order to hand the GASL a big cheque , which he has put to good use , using their money rather than his own to prop up the house of cards ?
Are we to believe that they are so gullible that they will risk further loans to pay off Super Salary ?
Well . of course , he is a club legend , and HE didn’t do walking away ( the weight of money in his suitcase made that impossible ) so , yes , they will probably sell their souls to some grasping , opportunist to …. wait a mo … they’ve already done that , haven’t they !