It all seems very strange.
Firstly, the unaudited interims trumpeted that Sevco was in rude financial health.
The basic narrative was that the successful European run under Mr Gerrard had been a watershed.
A corner had been turned.
This was wonderful news among the ranks of the credulous and the Stenography Corps didn’t hesitate for a second to inquire or to question.
In fairness, that stuff is best left to journalists I suppose.
Now I learned today that these unaudited interims had been…err…created in South Africa.
They had then been sent to the Serious Professional with orders to get them out there.
The esteemed chairman had been under a bit of pressure from the rest of the Sevco High Command to get them out there.
So he kinda delivered.
All was rosy in the money garden and the Ibrox klan was triumphant.
However, some pesky facts intervened this week.
If the interims were so good why does Sevco need a loan from Close Brothers now?
The reason I am writing this now is that a trusted source got in touch today with some information on that very question.
I asked him how much had been borrowed because I couldn’t see it in the security document.
He was initially coy, but he did point out that in the annual accounts of RIFC they had stated that they would need £7.6m to see out the year.
However, he then hinted that the hole could be substantially bigger.
He called a halt when I reached the £10m figure.
Of course, he reminded me, that the percentage interest rates on such loans can be heavy.
When I asked him for the absolute top end figure of what it could be, he paused and after a moment of Deep Thought, he gave me the answer.
I shouldn’t have been surprised that the answer was “42”.
So with interest @ 42 percent it’s 10 million seven hundred and ninety two thousand pounds give or take. ( no accountant but it sounds about right. )
That would tie in nicely with the line ” he called a halt when I reached 10 m figure”
42 what Phil?
The Europa League wind fall has been gained at a significant cost to sevco.
I suspect that they have gambled big time on winning the league and qualifying for the CL.
The Close loan will be short term until the season ticket renewals come in.
Currently Celtic are 1/12 to win the league and sevco 8/1. (oddschecker)
The most probable scenario is that Celtic win the league.
Sevco enter administration and massive cost cuts have to be made. No more Gerrards or De Foes.
Players released or sold at much reduced prices.
As you say, Phil. This is a loss making business with no line of credit.
Problem is…..they’re still here.
42, what is the meaning of Sevcos life?
https://youtu.be/Z0xfWCDLoCU
Great wee tune called 42 with striking lyrics in relation to Sevco.
“Those who are dead are not dead their just living in my head”😂
“And since i fell for that spell i am living their as well”
“You thought you might be a ghost ”
You didn’t get to heaven but you made it CLOSE 😂
Meaning of life jokes aside, are you actually saying that they are around 42 million in debt?
No.
From what I can glean from this story, Phil, it appears that the Ibrox boardroom have their wires crossed re “Going for 55”. Somebody should point out that this is their fans ambitions in relation to the number of league titles they are aspiring to – not the level of indebtedness to Close Bros!
That might explain why they couldn’t pay out the money for the half time draw at Ibrox on Wednesday. My mate went and won it. The prize being £2500. When he went down to collect his money, he was only given £1000 and told he would have to come into inbox midweek to pick up the rest of the money
I mentioned a while back …
…the fact that Dave Kings can-kicking and legal stalling tactics had basically allowed him to postpone Takeover Panel compliance long enough for him to make his dodgy share issue…
This has allowed him to sell further shares to those with no intention of selling and therefore dilute the other shareholders % to a point where the 50% + threshold couldn’t (and hasn’t) be met.
It looks however like this ploy has breached a clause in the order and he may yet be held to account.
Also worth noting today….
It seems the media, and BBC in particular, are so desperate to see a title race to the end (with their desired winner of course) that they are using their own outlets and influence to try and unsettle Celtic.
Probably much disappointed and recognising that the best team in Scotland have perhaps already weathered the storm of the previous managers treacherous departure ….
…, they all seem to have taken to a plan B ..
(BBC Scotland editorial meeting, Thursday 28 February 2019)
“Right… Damn. Didnae think Lennon would be straight back in!
What else do we have?”
Consequently they are all running with the coin incident and songs sung at Tynecastle.
So much so in the BBCs case that this story had been their online banner story for near 24 hours now…
Now I’m not generally one for ‘whataboutery’ .. but this would seem like a time when our own club if not the media should come out and point out a few things.
Coin throwing is utttly contemptible.. find them. Ban them! Jail them!
Songs about the IRA (as I’ve also said before) are not sectarian… just pointless and irrelevant.
Songs about ‘the Fraud’ might be insulting and childish but not sectarian or illegal I’d presume.
Celtic has its issues to resolve, particularly with away fans but we seem to be ‘headline news’ in this at the moment.
At the same time as this was all happening in Edinburgh… over in the ‘Dear Green Place’…
40000 were up to their knees in Catholic blood, making accusations of child abuse, declaring their wish for the ‘Church of Rome ’ to be wiped out, Irish to go home, Celtic greats dying before TIAR.. etc etc etc
Of course the media have been all ov…
Oh sorry ! No. Haven’t noticed a peep!
Shows just how ingrained their behaviour is in the mentality of the game. It’s accepted as the norm. It doesn’t even register as a problem.
A few Celtic idiots stands out as an exception.
40-50000 strong choir praising the exploits of bigots, racists and advocating genocide…
Nothing you don’t see at every match down Govan way.
…………
Anybody else noticed how (after a wee spell in the doldrums) Beaton, Madden and co. are being gently assisted back into the fold Just in time to officiate at those crucial upcoming ‘business end of the season’ matches?
Just coincidence I’m sure…
Looking at the mechanics of the ‘run in’…
While it would be great to have the 8th before the split. I think gaining another 7 points over Sevco before then is asking a bit too much.
If we hold our 8 point lead until the split and beat the Huns at end of March then we go into the spit with an 11 point lead.
ONE win only would be required irrespective of what favours the SFA all-stars are granted.
Phil, how about a piece on the Chagos Island which, thanks to a blanket ban in the UK media, I had never heard of till this week.
Gun boat diplomacy at it’s best with the forcible removal of the indigenous population to Mauritius and the biggest island leased to the US for an airbase bringing in sqillions which the once native islanders will never see.
How can something as shameful as this fly under the radar for 50 years before the UN judgement telling the UK to get out ASAP.
I believe the judgement is non binding so perhaps the islanders will need to invade their once home territory and take it back forcibly from the Brits?
What a distraction from Brexit for Theresa May. Nothing like sending an aircraft carrier and the fleet to the Indian Ocean and put the country on a war footing to protect a UK interest.
It looks as if much the same assets that were pledged against the previous loan have once again been used as security.
Basically anything that isn’t nailed down and can quickly be turned into cash in a fire sale, plus the car park.
Their auditors must be relieved that no one is pointing the finger at them for providing the very scant numbers.
In fact they must be worried that their view of the business, complete with future trading warnings, is miles away from the rosy painting that the interims provide and that perhaps in future the annual audit work will transfer to the good news provider.
Audit firm partners do not like to see business slip away as it hits them in the pocket but in this case would they give a damn?
42 what?
42 must be the answer indeed… in a parallel universe no doubt?
Close will get their pound of flesh, absolutely!
King started with a profit number and worked backwards: same as last year.
And with all due respect…
it appears that the Serious Professional is at least complicit – at most, a useful idiot?
”Don’t Panic ! ” – after all , the mega money they pull in for the Columbian ball snatcher will more than cover the cost of the ”overdraft” , pay off the existing debt , fund Slippy G’s salary plus that of his coaching staff , pay the monies owing for transfers , and maybe pay the Face Painter what he is owed .
Or then again , like Steve Martin in ”Planes , Trains and Automobiles ” , the answer may be ”You’re F*cked !”
So that’s what the “going for 55” banners were about!
At least the Earth was replaced by something useful like a hyperspace bypass, as opposed to Ibrox which will probably be replaced by a post-Brexit supermarket with no fresh produce.
When you have a creative accountant to hand for your tax returns creating a glowing set of annual accounts must be a walk in the ‘kruger’ park.
So when they previously borrowed 3M they ended up having to repay +4M. So, assuming same onerous terms, if they are now borrowing 9M we should expect that they have to repay 12M. If it is 12M, that would essentially be almost all of this years Season book money would it not? Be interesting to know when they have to have this repaid by and just how they expect to be able to repay it. Guess they must be factoring in a new share issue to bring in this “new” money. Aye, good luck with that……
Don’t worry, Peter… there’ll be a GAZILLIONAIRE from Larkhall along at any moment! They’re like buses – you spend ages waiting for one then, just as you start walking to the next bus stop, along comes your long-awaited mode of transport, totally out of the blue (no pun intended)!
Hubble bubble toil and trouble…….
And if your figures are correct that’s Close to £10m,£48k short,to repay for £7.6m.
Slippery slope for slippy stevie g.
I can only hope it goes boooom real soon.
Again,thanks for the info Phil,very much appreciated.
HH🍀
42??????
It’s the meaning of life, Peter. HH
Hitch hikers guide to the Galaxy, Douglas Adams. Unless you are referring to the upper figure of 42
As Sevvie Gerrard might say – that’s an EIGHT-FIGURE SUM.
Long time since I read that little beilter but I’m sure it says at the back “DON’T PANIC”
I wonder if this is what the GASL is telling all in the blue room.
Seriousy 42, who would have thought, classic hee hee hee.