I contacted Rugger Guy today with a question.
As I had seen that David Low had tweeted this:
David is a serious numbers guy with a granular understanding of finance and football in Scotland.
Indeed, he was in the room as Celtic had fifteen minutes left to pay the bank in 1994.
Consequently, I wanted to know what this new development on the RIFC shares front really meant.
The following is what my scrum-half in the Square Mile sent me.
Note that the text in bold is from the RIFC accounts. Rugger Guy copy and pasted in the best traditions of the Stenography Corps with a Sevco press release. Everything else below here are the words of Rugger Guy.
Here you are:
Hello Phil.
You sent me an update on Rangers International Football club “RIFC”, with companies house being notified of a further allotment of shares, and asked me to explain what this means.
In a nutshell, RIFC has issued more shares at 20p per share and have raised £2.1m of additional funding. I believe that Club 1872 as flagged a few weeks ago contributed £0.5m, the balance coming from other directors or investors. Laird Investments Pty was supposed to be providing a debt facility, so I suspect that they did not buy these shares. The existing shareholders continue to be diluted further.
When the accounts were published RIFC indicated that £10m may be required before the end of the season and a further £5m thereafter, so £2.1m has been injected since the release of results.
Remember that the Directors also provided £8m additional funding between July and the end of October, before this additional requirement was published.
I think it is worthwhile reproducing the critical cash flow assumptions that were contained in the accounts before arriving at the £15m funding shortfall.
Going concern (continued)
The Board has undertaken a recent and thorough review of the Group’s forecasts and the associated risks. These forecasts extend for a period beyond one year from the date of approval of these financial statements. The extent of this review reflected the current economic environment, the Club’s current and projected trading and position in Scottish football.
The forecasts make key assumptions, based on information available to the Board, around:
- Football performance, the forecast assumes the Club will challenge for the European places in the Ladbrokes SPFL Premiership in 2019/20 and participate in European competition in the season thereafter;
- Season ticket sales, the timing and amount of which are consistent with the Club’s historic experience. The forecasts include an uplift in season ticket prices to reflect annual inflationary increases and forecast improved football performance;
- Matchday income, which is projected to grow as a result of improving footballing performance and success;
- Sponsorship, commercial and other non-matchday income reflecting continuing customer confidence and increased hospitality demand;
- The amount and timing of cash flows from retail activities;
- The forecast overhead cost base of the Club;
- Payroll costs reflecting the 2019/20 squad size and composition in perspective to its assumptions around football performance;
- The quantum of future transfer receivables and payables;
- The capital expenditure necessary to maintain and improve the stadium, training facility and general Ibrox vicinity;
- The Group’s ability to secure further debt or equity finance from its current investors or through public share issue to allow the Group to continue to meet its liabilities as they fall due.
The Board recognises that achievement of its forecast is critically dependent on a number of the key assumptions noted above.
In my review of the accounts, I flagged that European success and player sales were critical in the short term. The other revenue streams are not likely to yield much cash in the short term. In addition, the high-cost base which includes the players’ contracts can only be reduced by sales. The final sentence by the directors of RIFC confirms this criticality.
I am, as ever, indebted to my egg-chasing buddy for this analysis.
Although, for the avoidance of doubt, I’m not in debt the way that Sevco is!
First, there was the Off Licence Putsch in 2015 and now in 2019, it is FC Weimar.
As David Low stated “more confetti”.
Worthless shares in a loss-making business.
Discover more from Phil Mac Giolla Bháin
Subscribe to get the latest posts sent to your email.
So, fellow Tims turns out the Huns(Original) were innocent after all, according to every fecker in the smsm. HMRC overestimated the amount owed, buyers were put off by the amount, rotten mob were cheated out of their birthright etc etc blah, blah. So f*****g boring and so predictable.
The fact of the matter is that those Bluenose bastards prospered by cheating, lying and stealing for years. I must hand it to the present Ibrox incumbents for showing a far better and infinitely more decent example to us all. No really. I’m not being sarky in the slightest…like f**k I’m not. Preaching to the converted here, I know. Sorry for the rant. F******g raging. Well youse know the score.
All of the above will hopefully fire the Celts up to another treble. Hail Hail
The best way to kill them for good will be for Celtic to make sure they win NOTHING this season…
There will be nothing left worth propping up with the family assets of directors drunk (again) on the task of stopping another club from achieving something exceptional in a fair and honest manner.
These people are not in the least interested as to whether their shares are worth 0.01p or £0.01, or 000.0001p. The aim is to keep them in existence and, if truth be told, it certainly seems to be working. After all that has been written or mentioned over the past few years the fact of the matter is that they are still breathing and in a better position now than ever. To me, they are going to get lucky some day and maybe soon.They won`t go out the game, we`ve seen it all before. These type of animals always find a way and they are certaily finding it. If Morelos and Gerrard are over-rated, why does everyone want them to go? Surely it would be better for them to stay in case they get someone better.
The harsh facts are that they are good enough to beat any of the lie-downers in Scotland while Celtic will need to fight all the way.
Celtic must win every one of their games against them. Even draws are no use. That is how critical it is going to be.
Maybe better to let them get on with it and ignore. That will keep them looking over their shoulders.
There`s no doubt that if they did win the SPL then investors would be interested. The so-called cold shoulder is a joke that hasn`t held them back in the slightest.
I agree with most of this and have been saying it for a while now with the amount of players they are turning over they only have to get LUCKY once in order to press reset on the bonkers model they have at Ayebrokes.
As you correctly point out they also only have to beat all the other cannon fodder sides in Scotland and hope we have an off day or two in the meetings with them.
Throw in a complicit FA who seem hell bent on a return to the duopoly that killed off any idea of competition in Scotland when Murray took control and the Bank supplied the Aye Readdies then its carry on normal jogging.
The only hitch is the Banks.
The cold Shoulder ensures that they have no line of Credit from them but instead are forced to go to high risk Lenders.
The reality is however if the mugs who continue to pump their hard earned into it keep doing so then it is sustainable.
Whether it is sustainable to the point where Champions League cash becomes a reality is another matter but as Celtic prove in every window now a good Transfer sale plus Europa League run can match that windfall.
Well they can still qualify and no matter how you view Morelos he’s out scoring Édouard in Scotland.
Don’t be shocked if a Club with the money to do so take a punt on him in January.
They don’t have to be a top Club either just look at how much Southampton have chucked our way these past few Seasons.
I don’t particularly care for how the Tribute Act conduct themselves or how they stick their fingers up at what carnage they caused previously as their last incarnation but the reality is it works for them and has got them to a position of strength again,
They are obviously desperate to avoid an Administrative event in order to stop our Dominance.
Whether they can or will remains to be seen on both counts.
Celtic are in a position to spend in Jan and strengthen in a way we haven’t seen since O’Neil arrived.
No one at Ayebrokes has even considered this obviously.
Is it a case of Lawwell and co keeping the powder dry?
Let’s wait and see 🧐
Why does the supporters of Sevco want to sell all their players with so much vigor. ltheir sites and blogs are sell points for any players they have. What does a sales profit get the paying support. Nothing!! Celtic on the other hand want to keep their players and reluctantly sell.
Can’t make the sevco fans out. I think deep down they know they are being played.
If Celtic sell a player for a lot of money then they need to as well to prove to themselves that they’re still one of the big two and can compete.
It says the nominal value of the shares is 0.01p but were sold for 20p. Does anyone know what that is all about
The nominal value is the ‘par’ value of the shares. Its nothing to do with the share price. Its the market value of the shares thats important and at 0.20p per share, it seems to me at least, that above market value has been paid for these shares. The nominal value isn’t important but shares do need a ‘par’ value to them.
You’ve misread it. the shares are worth £0.01. Not 0.01p. They are penny shares. This is not uncommon and generally has no relevance to the trading price. Where I see a problem is the total number of shares issued. They were trading at 20p when the total number of shares was just over 80 million. They now have over 260 million issued. This should mean logically that the share price is now less than one third of 20p ie around 6p, yet shares are still being issued at 20p. This looks to me as though the price is being kept artificially high and I thought that was a criminal offence. Anyone with more knowledge of this than I have out there, that’s probably most of you, feel free to enlighten me.
I see the times editor scotland has put out a tweet regarding a ‘significant’ story being printed for Thursdays paper regarding RIFC and the tax man. I wonder whats thats about? I don’t have twitter or i would have linked it to my post.
Neither do I but you’ve intrigued me. Ever the optimist I hope it’s the opening credits in the new Scottish sporting block-buster, “Sevco: The Fucked!”
I’ve heard it’s claiming Hector waa wrong and Rankers should not have been liquidated, despite several courts saying otherwise!! The sad bastards just can’t let go.
Turns out, HMRC “over-estimated their tax liabilities”, and that they only owed £20 million to them! ONLY £20 million?!!..
HMRC have been over-estimating peoples’ tax liabilities since time immemorial- whether it’s a small, local businessman, Lorraine Kelly, whoever or whatever… I reckon it’s a pressure tactic they use to get people to admit their liabilities, and lead to a negotiated repayment of their dues.
The bottom line – plain and simple – is that THEY OWED THE TAXMAN! They tried to negotiate a settlement during “the wee tax case”, and HMRC were having none of their nonsense then! How entitled do you need to be to think that you can negotiate your way out of the “big tax case”?
YOU OWED MONEY. YOU HAD NO MONEY. YOU DIED – END OF!!
I believe the story maybe about information stating that Hector ( the tax man ) has vastly over calculated the deceased rangers tax liabilities, thereby leading to their demise. I could be wrong.
Yes , it means they are worth F*ck all ! ( that’s a technical term that they use in the stockmarket when discussing Sevco shares )
As suspected KingCo, using everyone else’s money to stay ahead, – kinda got to hand it to him. – He’s going to smash the Ego, the board, and the fans, and walk away with £20 million.
They’ve David Brent in the Dugout, a media cartel, a support scarred for a generation over 2012 and no sign the therapy is working, their reward btw – higher season ticket prices for 10IAR, lol. Admin 2 at 80% and loading, boardroom members with their main business activities being affected by association, ask – DP for one. Carboot Sales where every tap, sold comes with it’s own Wear with racism tag. An immoral and duplicitous, governing association not fit for purpose body. all going in their favour.
what they don’t have is,
Phil, PB, Rugger Guy, Forensic analysis, a well run competitor, who’s is making more than them, Close Brothers, (must be looking at the trading while skating within insolvency model) Big Mike, The Ego’s own PR team, Hummel and Elite, on the horizon of next season saying where’s my money; and they still won’t break even with the sale of El Duffalo, Tav, Kamara, YaYA Aribo, Kent, Barisic, Katic, Goldsen, Helander, Jack, Arfield, The Old Man legal trio of McGregor, Davis and Defud, not too forget the hottest young players in Europe, Edmundson, Hastie, Jones, McCrorie, Doherty
and the absolute jewel in their squad. Andy HaHahaliday – Who’s is £5million on his own.
MG on SSB as I type heavily defending the El Duffalo myth of £25mil+ – I wonder if the scheduling just seemed to time it right with RW first address to the assembled MSM. – Who’s thinking that Maddog McBurnie, at £20million is the marker, so the logic is correct.
They are truly a £1 club
Sadly for the competition fairness, the compromised values of the SPFL, Sfa and member teams
They know the price of everything and the value of nothing…….
Yet another Ibrox head scratcher.
You can understand the wilfully ignorant supporters / members of Club 1872 handing over their cash for any new shares at any price.
It’s not an investment at all: it looks more like emotional extortion!
So who else would pay the £1.6M balance for fully priced – yet virtually worthless – shares at this late juncture?
Are the Blue Room occupants dipping into their own pockets yet again?
I just don’t get it, at all.
I keep thinking there must be something going on the background at Ibrox which would explain some of the personal investments in RIFC – and not just for this year but for the last 4 years.
Yep, confetti for the investors, so why do it?
For RIFC, the £2.1m is invaluable and will help to pay the bills for a few more weeks (until hoped for January transfer income?).
The cash injections seem to be earlier, more frequent and cost more but while they’re still happening the lights will stay on.
Even if, god forbid, they did manage to win the league then this doesn’t earn big money unless they can navigate 4 tough CL qualifying rounds that has been beyond us this past 2 seasons.
I’ve heard and read many times that football makes normally sound businessmen act irrationally. This is beyond irrational. It’s completely fuckin bonkers!! It’s insane. It’s like going out into the street when the rain is pissing down, lifting a drain cover off and throwing your money down it.
Ah Phil,just perfect for after dinner relaxation,their bad news is a sweetness that I’ve simply no word describe… neamh a sheoltar agus neachtar milis✅(Heaven sent and nectar sweet)TAL🇨🇮
Many thanks
HH🍀
When will Club 1872 members come to realise they are being taken for a ride. They once held over 10% of the shares and were the second largest shareholder.
Their shareholding is being diluted time and again but they appear to be paying above market value for the shares – it really seems to be the sort of con trick that the FCA or even the Takeover Panel need to be made aware of.
I cannot believe such continuous action, because this has now happened several times, can be legal.