In late 2011 Craig Whyte, the owner of old Rangers, knew that the game was up.
Quite simply the club was running out of money and would not be able to continue operating until the season ticket money started to roll in the following year.
Thankfully the Suave Billionaire from Motherwell had a cunning plan.
As he had done with numerous companies before he would liquidate Rangers and move the assets into a phoenix club.
Of course, he would need the assistance of the world-class administrators on the 6th floor at Hampden to facilitate this switcheroo.
They readily agreed as they were confident that the other clubs in the then Scottish Premier League (SPL) would not want to lose the Ibrox pound.
It would have worked if it hadn’t been for that pesky NO TO NEWCO campaign which, over the span of a long weekend end, gathered the disparate tribes of Planet Fitba under one banner.
The message was sent to their boardrooms and it was this:
“If you allow new Rangers into the SPL we will not renew our season tickets”.
One by one the SPL clubs folded and Mr Doncaster and Mr Regan needed a Plan “B”.
Mr Whyte’s new club would have to start in the second tier of the Scottish football, but that would need the agreement of the clubs in the Scottish Football League.
Of course, they hadn’t factored in the intervention of the late great Turnbull Hutton.
On the steps of Hampden, he called them out.
The new club Sevco would start at the bottom of the professional game in the 4th tier.
I’m proud of the role that this site played in those tumultuous days.
Throughout that period Hector sat quietly in the corner.
The use by Sir David Murray of the Employee Benefit Trust scheme to pay his players and staff had been a fatal error.
Rangers was the test case and the light blue guinea pig would die in the experiment.
When Charles of Normandy and the Gallant Profiteers set up the second Sevco the new club had no debt.
Poor Craigie and his Sevco 5088 was stiffed and that could still have a legal implication for the rightful ownership of the training ground and the stadium that John Brown played for.
For the avoidance of doubt, the creation of the new club in 2012 was a spit in the eye for 276 creditors including the Ambulance Service and local family-run businesses.
Mr Neil Doncaster said at the time that it was an acceptable way for football clubs to “shed debt”.
Classy…
Although Sevco burned through over £20m in 2013 from the Initial Public Offering on Stock Market they didn’t have to go outside of the club to keep going.
First, it was Laxey Partners and the Easdales and Mr George Letham.
Then it was Mike Ashley and Sports Direct.
All of them within the Blue Room.
The Ibrox klanbase rejoiced at the success of the Off Licence Putsch.
They believed that Mr David Cunningham King would unearth his offshore millions and bankroll them back to pre-2009 levels.
Of course, Dave had a cunning plan.
It was all about Other People’s Money.
Last year the Blue Room was tapped out and Sevco was forced to go to Close Brothers and borrow £3m.
This was not an overdraft but a heavily secured loan.
This year they returned to that financial institution and borrowed over £7m.
My information is that the rates are punitive.
This was a clear signal that the Blue Room was tapped out.
Now, in the words of Lionel Persey QC Sports Direct International Retail (SDIR) might be owed “many millions of pounds” by The Rangers Football Club (formerly Sevco Scotland Limited).
The new club now has their own HMRC in waiting.
The sensible thing would be to get the ducks in a row and prepare to pay the bill as opposed to pretending that it won’t happen.
When Super Salary failed to get past Malmo and Maribor the lack of European revenue meant that the game was up for Rangers (1872-2012).
It then was just a matter of months until insolvency.
What Craig Whyte could have done would have been to immediately offload players, cut the cloth and brace for impact.
However, he hoped that the Big Tax Case would finally land the bill and he could lay the blame for the insolvency event at the door of the previous owner Sir David Murray.
Had the Knight of the Realm reacted in different in 2010 then Rangers would almost certainly still be alive.
Dear reader, your humble correspondent broke the story of the quantum of the Big Tax Case.
The core amount was £24m.
At that point, the compound interest was £12m and there were £15m in penalties.
A bill of £51m was simply unpayable for Rangers.
However, what Murray COULD have done was to immediately come clean with the fans and told them that Rangers were in a mess of their own making.
Players could have been sold and the core amount (£24m) could have been paid to HMRC with an apology.
Murray might have found that Hector would have been much easier to deal with.
Perhaps even the penalties might have been binned or at least reduced.
Instead, Murray decided to play for time and go into the tribunal system.
Mr David Cunningham King always plays for time.
Once it was Hector in the corner of the room staring are Rangers now it is Big Mike looking at Sevco.
This entire shit show will be settled either way by money.
Lots of it.
At the moment Sevco does not have too much of that stuff.
Moreover, they are desperately trying to offload players at a loss.
Distressed sales are always a bad sign.
So who is for sale at Sevco right now?
Everyone, anyone…
My reporting on both old Rangers and the new club created in 2012 has been focussed on following the money.
Each time the Ibrox klanbase were concerned that something might not be entirely peachy there was a soothing statement issued from the Blue Room that everything was ok.
Of course, that message was obediently amplified by the Stenography Corps.
Meanwhile in Dún na nGall there was an awkward customer who was calling it very differently.
Now dear reader who was on the money?
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I don’t know who the author was of the £45m that Arsenal had to hand in the current transfer market.
Their share of TV money alone for last season was £150m plus.
They have signed a young defender for £27m and loaned him back to the selling club.
They have completed a £72m deal for a Lille forward and have, allegedly, cobbled together £25m in add ons and instalments to sign KT.
Looking at those numbers then probably best to wipe Arsenal off the ever growing list of Morelos suitors.
At this stage of the window it’s impossible to believe that the Ibrox club have not had a single bid for the Colombian or Tavernier.
Their need for cash has become immediate with the Sports Direct judgement landing on the Ibrox doorstep.
It’s much more likely that bids have been received for one or both but are nowhere near the quantum expected or required.
They have not signed Pepe as yet
I’m not at all surprised. A striker with serious discipline problems who hasn’t shown against major opposition and a penalty kick taker.
There was talk earlier in the window about a £3.5m bid for More-or-Less. I can’t remember who the alleged bid was from but personally I think he’s not worth any more than that.
The very idea that AC Milan would be remotely interested in him is risible. It’s a Jackassism!!!
In addition to forking out for all the home pre season Ibrox friendlies the cost of watching today’s game v Derby has been increased from the normal rate.
If you didn’t know better you might think that every penny counts!
Don’t you just love those pictures of Craig Whyte walking up Edmiston Drive with the gullibles tripping over themselves to welcome their saviour.
Of course when you have just read an article by an award winning journalist who has portrayed the saviour as a billionare with wealth off the radar who can blame them?
Of course when the truth about Mr Whyte came out the Daily Record immediately fired said award winning journalist for lying to their readership and making them, and him, a laughing stock…….oh, hang on a minute, they didn’t!
Sevco’s cash problems are over!!! The mighty AC Milan are about to pay them so many millions of Euros it will be off the radar. This is OBVIOUSLY TRUE because Chris Jack says so!!!
Take it the fence on the backburner and I know it’s a sore point is the superstore opening today or are thay stuck with the trailer! Can someone park next to it ?
Hugh, slow down a bit and use commas every so often, eh?
I see the Rangers fanbase are debating the proposal to expand Ibrox.
Leave it a couple of months and Close Bros will have done the job for them by removing everything in the stadium not nailed down, clearing lots of areas for new seating.
Aye……..but how will they afford it? They can’t go to Close Brothers for a secured loan coz they’ll already have everything!!!
My only comment about the long running financial situation at Sevco is….I have given up waiting on another Admin. or some such event, as they seem to have money to burn…and,despite all the speculation and guessing,they are still here….!!
I would obviously love to be proved wrong.
We shall see.
On, therefore, to fitba’ matters if I may.
The way the KT transfer is being handled is pretty poor imo.
I am assured from my source that he is definitely going….but why its needed to be dragged out like this is anybody’s guess.
Celtic should have said to Arsenal at the outset….”These are our requirements for the deal to go through…and until they are met…we will not be making any comment whatsoever on the subject.”
We have made an art form over the years of protracted transfer deals for incoming players…we now seem to have adopted the same approach for selling.
Its bound to have an unsettling effect on KT….and he deserves better.
Not good enough Celtic.
Finally…It would appear that our anger and concern over CL qualification, is gathering support and hopefully momentum from like minded Clubs.
I would, however, prefer Peter Lawwell to be making the statements…and not Lenny. He has enough on his plate.
In this instance it”s Arsenal’s add ons, some of which they may not achieve, which is the problem.
It looks like they have taken a leaf from the Ibrox play book with unrealistic targets to trigger future payments.
The big difference of course is that unlike Rangers, Arsenal have access to EPL TV cash and even then they can’t meet the initial up front payment that Celtic are rightly demanding.
To be fair Celtic have said, numerous times, we don’t need to sell. To also think this is protracted is buying into SM bullshit unsettling Celtic tactics we have witnessed for years. Arsenal think they can chop down offers but due to Dembele sale that will never happen again at Paradise, you seriously telling me Dembele jumped from a 19 million sale to possible 50 million sale in 1 year?
Get a fucking grip, we will sell when OUR terms have been met. If not then after 8th August KT will settle back in, when his injury problems calm down he’ll be running the line.
Big Virgil went from a £13m player to a £75m in 3 seasons….what is your point?
Hi there…
If this is a reply to my earlier post….then here’s my reply to you.
First of all…You obviously didn’t read my post properly.
The point I’m making is…we have allowed ourselves to be drawn into a soap opera of a situation that should have been avoided…and there’s no use blaming the “Meeja”.
Had we laid out our terms at the beginning…the way I suggested…then all this nonsense…and it is total nonsense… would have been avoided.
As for suggesting that its not “protracted”….what would you call it ?
I know, for example, that KT isn’t too happy about it.
We have to face the facts…When it comes to handling transfers…incoming or outgoing…in the main we do not have a good track record….and this,to me, is another example.
Finally….Did you have to use ” get a F****** grip ” to get your point across…?
It takes away from your post.
Have a good day.
PS: If its not a reply to my post….Ooops….:0)
BRAKING NEWS
DAVE’S GOT A NEW SPONSORSHIP DEAL IT’S,,,,,,,,,,,,,,,,,,,🤡 SLAGTHEGER’S 🤡
I see that the anyone/everyone diversity project has got off to a flying start as the Ibrox internet posters go mental about SNP politicians. Hamzu in particular, being invited to Ibrox.
I suppose the next step will be to invite the leading Catholic Glasgow clergymen to Ibrox for the next home game?
If the Begian taxman ,( Hercule ) makes Sports Direct get liquidised, will they change there name to The Sports Direct , carry on as if nothings happened and screw creditors out of millions. If so, thats a disgraceful president to set, pacifically were their money could go to education , forces NHS..Disgrace !
Would Ashley really want to push them to liquidation though? Surely he wants his money.
MA is a GENUINE billionaire. I don’t think it’s about the money any more. It’s about humiliating the Lying King.
Giving him their money (even a percentage of what he wants) WILL push them to liquidation.
Looks as if the Ibrox club’s passage into the next round is pretty much done.
No doubt the MSSM will be hailing the win over the 4th best team in Luxembourg( pop: 600,000) as a triumph.
The Danes will be a much stiffer test in the next round and stand between them and must have Europa Cup group stage qualification.
With Sports Direct and Close Bros standing on the sidelines the financial pressure to qualify for the group stage will be ramped up considerably.
Selling Morelos and Tavernier may or may not cover the SD/Close outgoings but a Europa Cup run will be required to top up the ST revenue to meet the £3m plus monthly outgoings through to June 2020.
Inclusion, diversity, everyone, anyone.
Normally such a move by a club/company would be welcomed by all.
However it’s 2019 and a bit late in the day to put out the welcome map.
As well as the arrival of Souness Rangers policy of not signing Catholics was hastened along by noises coming from UEFA who had taken an interest in the Ibrox club’s signing policy.
Like many others they were not fooled by the cry from Govan that they hadn’t come across a Catholic good enough to wear the jersey.
Please correct me if I am wrong, but didn’t the SPFL change it’s rules regards any future insolvency event involving one of its member clubs?
Haven’t they eliminated the risk of a supporter revolution by making the decision of what to do with a “new club/company” emanating from the ashes of liquidation the sole preserve of a committee and not put out to all member clubs to vote on?
I’m sure this has slipped under the radar….
I hope I’m wrong.
You are correct.
The route into the top flight for a Third Rangers (should that ever transpire) would be much easier now.
What’s going to be interesting to watch is what Close Bro’s. do. If they move to call in their loan then the dominoes start to tumble. If they don’t then King will simply appeal and delay the Ashley verdict for as long as he can.
You can forget about Administration as an option this time though, because from Phil’s reporting we know the Close Bro’s loan was pretty much Admin proof and the Ashley Retail deal likewise. If something happens and they can’t handle the monies this time around it will be straight to Liquidation (Do not Pass Go and most certainly do not collect 200).
Of course, given the help that King can expect from the SFA that may be an option that is being seriously considered at this very moment!
They need to be given leave to appeal and that will not be granted unless they can PROVE that they can submit NEW evidence.
Any chance of twat ashley for once being happy with his 4 billion pound and just fall off the face of the earth. PLEASE. Lets be honest hes got no interest in football at all. The poor old newcastle faithful want rid of him. Hes very simply got billions and hes bored with life thats why he keeps sticking his nose in all the pies, Lets just hope round the corner theirs a massive Black bird to bite it off. PLEASE.
Billy not liking it?
It’s not Mike Ashley’s fault that Dave King and his Board are stupid enough to sign that Retail Deal. Why should he simply forego the revenues that were agreed to? That is not how business works!
I see Grezda, one of Stevie G’s signings, who has hardly kicked a ball for them, is being linked to the French giants, Dijon.
Most of us will probably have a Dijon mustard jar in the fridge, but if Ibrox Noise can label Dijon FC as giants I wonder where the likes of Real or Barcelona sit in their league table of superlatives?
To be fair to them, they probably think Dijon was a 70’s duet that had a one-hit wonder with a song called “Don’t Go Breaking My Heart”.
Fucksakes!! Thought that masel!!!
Watched the you tube video last night Billionaire savage Rangers sorry,,,,sorry saves Rangers! Ow Dear if only they new it was Better they didn’t👍
,,,,,,,,,,,,,,Dave’s in a moody place the now,,,,,,,,,,,,,
Wot will Dave king Tell them now. it’s about statement time Rallying the Klan chaps
One can only imagine how the clan will cope now that industrial action is needed, Boycotting Ashley apply ! This’ll go down well, oops or not 💣
Can see the superstore opening soon!!
A token of Dave’s goodwill from the BOARD
🤝
Brave.
You were on the money Phil.
Which surprises me when I read your conclusions about the EU and Brexit.
May I point you in the direction of Professor Steve Keen who like yourself managed to predict the Global Recession long before the Worlds Economists managed to predict it and his warnings about the EU and it’s worship of Neoliberal Economics.
Take your own advice Phil and follow the money.
Like the Zombie masses at Mordor Europe’s Population is being hoodwinked on a grand scale by the Elite Organ grinders who control it.
It like The Tribute Act is living on borrowed time.
I’d rather the EU gravy train than another European War
The “EU Gravy Train”? More akin to Stalin’s Communist Russia! Go to Brighteon dot com and watch the 10 part documentary E u r opa the last B attle. I can’t type it out properly because those in power don’t want you to watch it. P.S. Phil was right on the money regarding the sevco finances, but unfortunately is way off the mark regarding brexit versus the communist undemocratic EU.
To compare the EU to Stalinist Russia reveals your ignorance. Go and read a book and grow the fuck up.
What??? Over 50m dead in European wars in 20c. You are certainly right that the EU is better than the carnage we have known previously. Let’s hope than Johnson, Raab and Farage aren’t looking for some more canon fodder to cement their place in history!
Oh there is carnage in Europe all right though you won’t see the bodies piled up in the Streets like during the War.
No the carnage takes place under cardboard,in hospital wings and Social Security Buildings right across Europe.
The only difference is now of course the Germans have control are operating out of Frankfurt with the fool(not a typo) backing of Europe’s Elite.
Open yer eyes.
For those who think the EU is good, these two video’s are worth the watching.
Ireland is one of the many taking more than they give to the EU , that is why they think it’s great.
Like you say Phil ,follow the money, second vid show they move the EU from Brussels to Strasbourg for 4 days a month, and back again. For a community obsessed with climate change, how do they reconcile this?However once the money stops from the very, very few supplying it, the house will come down. This is the real comparison with Ibrokes
[youtube=https://www.youtube.com/watch?v=UTMxfAkxfQ0&w=640&h=360]
https://www.facebook.com/watch/?v=610353615808233
Tripe. God knows the EU aren’t perfect by a long way but compared to the neo fascist Farrage, Boris, Trump etc they are practically saints.
Thatcherism was Neoliberalism.
Neoliberalism is the only option within the EU as it is a closed shop and therefore they are not interested in Socialism in any way,shape or form.
Austerity measures are backed fully by the EU as they continue to make way for the Global Corporations to buy up Nations Nationalised Industries.
They have also created a Market where it is now acceptable for cheap Labour to move from one Country to next undermining rights that have been fought for for decades in Countries allover Europe.
Yes it is true that there have been fewer conflicts within Europe itself but it hasn’t stopped conflict happening elsewhere with Europe’s Nations being involved.
Meanwhile we have Zero Hour Contracts and Foodbanks the length of the Country and Europe could give one single feck for any of it.
Europe is a Gravy Train for those who are involved at the top.
It is also a Gravy Train set up specifically so that Multi Nationals and Central Bank can scoop up as much profits as they can without paying the Traditional Tax That previously they would be liable for pre EU.
These same Multi Nationals are owned and controlled by people with wealth who do not even reside in Europe.
The same Group of peoples who were involved in the setting up of Communism within the Soviet Union and who are involved within the Global Banking Network.
As Phil says frequently follow the money.
Go look back at the Bankimg crisis.
Who caused it.
Why it will happen again and again
Who ultimately pays for it.
We that is the general Tax Paying Public cleared the debts.
Not the Banks
Not the Rich 1% who spend fortunes on Lawyers evading it wherever possible.
Us the mugs who have been hoodwinked into thinking Capitalism is great and everyone is a winner.
Total b/s.
You’re being mugged on a grand scale time you woke up and smelled the Cenko 😉
If you want further proof of this go have a good look at
who has been voted in as the New EU head stooge.
Yet another Centre Right Neoliberal German to push the company line.
It’s a joke.
And again, the EU isn’t perfect but compared to the other options – Brexit with Boris and being Trump’s bitch (who in turn is Putin’s bitch) it’s far and away the best option we have. Anyone who tells you otherwise is a moron.
@Rachael
The only option available to rejecting Neoliberalism was to reject the EU.
Now we are in a position to reject it further by ensuring the Tories do not get into power in this Country again.
The only genuine alternative is Democratic Socialism and there is only one Party remotely interested in delivering that.
Hence why there has been an active campaign to undermine Corbyn at every turn possible.
Be that from within the Labour Party which has been swamped with Blairite Red Tories for years or from within the establishment via the Tory backed Media.
We have a slim chance of getting this greed based Ideology to feck once and for all.
Brexit is coming whether you and the rest of the Ostrich out there choose to accept it.
The EU has been rejected.
Deal with it and then deal with Boris and his Cronies next.
Ireland taking more from the EU than they give? Are you fkin joking or something. You definitely didnt live in Ireland after the crash. What the people in Ireland had to do. What they had to change in their every day lives. New laws new taxes were introduced into EVERYTHING. The price of building a house went from €60/70K to €120/130K for the exact same building. Because of the new safety laws they have introduced. They need to pay 25k for a Septic tank that deals with waste more efficiently, Straight off the bat. A regulation that was never there before. They now have 22 months to finish the house where before it was 5 years. Those same regulations dont apply here in Britain. Car Tax and insurance the highest in all of Europe, while the roads are amongs there worst, They dont get multi millions invested into them like the EU put back into British roads.
And you say Ireland have it good! At any time there is more Scottish English French Spanish and Norwegian boats fishing in irish waters than there is off any other EU country. Ireland Needs to be in the EU just as much as the EU desperately needs Ireland to be part of it. But in no way do Ireland get more out of Europe than what they give back to multi millions of people in the EU and especially Britain.
The EU has been rejected by a bunch of extreme right wing scum who lied through their teeth to the electorate. For all your bullshit about supporting Corbyn (and I voted Labour incidentally) you are on the side of Boris and Farrage. Either you are being disingenuous or are 15 years old (and don’t believe in the moon landing either).
How long before the amount owed is announced? Can it then go to appeal? And be dragged out for longer.
I just don’t understand why they still give King their £, as its proven time and time again that he’s a compulsive liar.
Two words – FRONTAL and LOBOTOMY.
Paraphrased to one relevant noun….zombies.
The Gullibillies WANT to believe the lies from the GASL ( AKA the convict chairman ) otherwise they would have to face up to the reality that they are F*cked , both financially and on the pitch .
If they do not reach the group stage of the Europa league then I think that the dominoes will start to fall – and once one goes ….
The gap between income and expenditure is huge even assuming a best case scenario.
ST revenue is £25m tops, after VAT, some of which is paid in instalments.
Last audited operating costs were £3.3m per month, nearly £40m per annum.
Add in a full year of Defoe, Davis and the recent additions then its north of that figure.
Merchandising and sponsorship income, who knows, but could be a negative figure given the merchandising clusterfuck and Close Bros have to be reimbursed.
Who or what is going to fill the gap, previously the territory of the soft loanees who have exchanged their hard earned millions for equity in a company/club/thingy that has never reported an operaring profit, nor shows any signs of so doing?
Europa Cup group stage is a must have and Stevie G will find himself under the same pressures as McCoist did prior to the previous club crumbling under a mountain of debt.