I was grateful to have a further opportunity today to speak with a very well-placed source.
He reiterated what he had told me yesterday.
My guy was adamant that Mr King had been ousted after he had refused to provide an injection of emergency liquidity.
I, of course, couldn’t possibly comment.
However, I will start with what he left me with.
He said that he would not be surprised if in, say, two or three weeks that it was Statement O Clock again.
This time, he suggested that it would be to tell Planet Fitba that Sevco’s Gumtree Galacticos had agreed to take one for the team.
I remain sceptical of that.
Indeed, I can envisage a few of Mr Gerrard’s failures simply stating that they have Lamborghinis to support.
However, he was insistent.
He pointed out to the exploration of Sevco’s running costs that have been published here.
Moreover, he stated that he fully concurred with Rugger Guy’s number crunching.
Therefore, both of them agree that the eight-year-old club has running costs (based on RIFC published accounts) of £3.75m per month.
Now, let’s say that football in Scotland does not re-start until the start of September.
Of course, that is mere speculation, but it is a view that several folks in the game have said that is their best guess.
That means that from now Sevco must find operating cash from April to August.
That is five payroll cycles and everything else that they must pay.
That is £18.75m with no matchday income, no retail income and no events being booked at Ibrox such as concerts or weddings, etc.
As for fresh money coming in, he told me that the Shy Messiah did indeed look under the hood as best he could.
I’m told that he had a few forensic questions for the Serious Professional.
My information is that he WAS supplied with the last published annual accounts of RIFC.
The Japanese based entrepreneur also asked for the interims and a cash flow statement.
One thing worth remembering about investors is that they tend to want MORE money at the end of the investment than what they put in.
Anyone with a business brain will see that Sevco, even when generating revenue is making a loss.
Now with no football matches for several months is just cash-burning machine.
Regular readers will know that I have previously flagged the issue of business interruption insurance.
That is a very specific question that any member of the Stenography Corps could put into the Sevco Press Office.
My own sources tell me that there are FOUR clubs in Scotland with the correct type of cover.
However, only one has a top of the range policy and no issues with terms and conditions.
That also happens to be the club with tens of millions of pounds in cash reserves.
When football resumes it just might all add up to a sporting advantage.
Please stay safe.
so what are we looking at? until sep £18.75m running costs. £10m shortfall. then £4m legal costs? Loans?? Transfer fees to be paid?? Big Mikes millions on the not too far horizon. Can we finally be looking at the end of the scourge that blights Scotland, is this a real possibility now??
There may be changes in the world once this punishment has gone. Sky, hopefully, won’t have the riches to dish out billions to battalions of prima-donnas who, if they had an ounce of decency, would be signing up to help the NHS. For a start, quite a few of them could supply a ventilator and it wouldn’t even make a dent to their bank accounts.
Unfortunately they can’t buy what’s not there.
Is it just my imagination or has Rangers News been on overdrive recently – google “news now rangers” to judge for yourself.
Maybe they are more productive working at home or maybe this is the chosen conduit for the new OOPR man
This in particular is a gem: “Rangers will launch intiative (sic) that stands to make millions “in coming weeks” Rangers News12:38″
Essentially – Rangers to rake in millions by selling next season’s STs now – cunning plan ! ! !
But doesn’t their credit card service provider drip feed ST money as games are played – fearing refund claims if/when they cease trading ?
Oh – I see a problem there – why go to the trouble – and expense – of selling next year’s STs if the cash is not available to pay wages and red utility bills now ?
What good can that do – other than offer psychological balm to ulcerated egos ?
Looks as if UEFA has passed the buck back to the individual countries football authorities.
I see the problem with both relegation and promotion where things are tight however as far as the SPFL table is concerned Celtic, taking goal difference into account, have a 14 point lead with 8 games to play, 4 of which are at home
They would have to lose 5 of the eight with Rangers having to win every one of their remaining 9 games. That’s never going to happen, not in a million years.
No one’s going to argue with that in Scotland apart from the blue side who have their own agenda.
Ditto in England where Liverpool have an even bigger lead. For sure no other club down there will cry foul when they win the league, cut short or not.
What an embarrassment of an article written by Michael Gannon in the daily ranger . Straight out of a sevco fanzine crawling up to King and the latest people taking the reigns at ibrox .
Not quite 5 losses required. You’re forgetting their game in hand.
Its 3 losses including the 2 huns games, plus drawing another. With huns winning all theirs.
Still never gonna happen though.
The whole house of cards is about to tumble. Most people with any sense could see that something going wrong, or something completely unforeseeable happening, say a Coronavirus, would apply the final push.
One thing that intrigues me about King leaving, and nobody has asked this, is what funding was King working on? Was it as everyone assumed, funding into to the club or was it that what he was really looking for was funding in the form of someone buying him out? Both are funding in general terms, but for completely different motives. Perhaps this explains the different wordings of the King statement and the clubs?
Last thing. Whatever we think of Park, he has always reached in his pocket (unlike many) and done what it takes for his love. I give him credit for that. But he knows what the decision is thst is coming and it will be Insolvency. Only question is whether it’s a partial salve to buy time, or full blown liquidation. Coronavirus can actually be a saviour in that if they make tough decisions now, the scapegoat can be the virus instead of him.
Will be interesting to see what happens here in month of April!
So the Klan want the season null and void what’s new there . So how are the European places going to be decided then are they going to demand a champions league place over Celtic after all they keep saying they could catch us and win the league . I can’t see them sitting back if they get it null and void but allow Celtic the champions league spot . They are going to take this to the limit they ain’t going to let go .
Rangers and many other clubs will currently be running on fumes. The usual season ticket revenue will be a trickle compared to the norm for this time of the year
Even if Rangers were to maximise ST income just now the money would be gone by August/Sept at the current cash burn rate, then what?
They immediately require to reduce outgoings, in the main players wages, to allow them to get to the transfer window and punt Morelos, Tavernier and Barasic to get them through next season.
No doubt selling their most valued assets will further reduce the chance of stopping 10 IAR.
There is no way those who have previously kept the show on the road will be able to repeat this season’s all in effort to halt Celtic’s march to another title.
Talk about chasing publicity the daily ranger has a headline on their website saying UEFA will leave it to Football Association’s to declare if teams will be declared champions or not . A few paragraphs about this before the writer goes for a wander and away off on one about sevco allowing the use of the facilities at ibrox and other surrounding properties for NHS to use . A lovely wee squirrel story to take the heat off the serious stuff that’s about to hit home over there . Trying to play the good samaritan card oh dear .
Celtic have also done likewise,well,their offer is there if so required/needed,
Thats from today an earlier CCN article✅
Is this the perfect time for Stevie G to vacate , Bad Peres etc. All had gone pear shape prior to the tragic pandemic…..
Lol at Jim McColl interview in The Sun apparently he has been in talks with the owners of Liverpool about some Moneyball scheme and trying this at or taking it to sevco. Oh dear another belter of a squirrel story to keep the Klan on board . Watch as the week goes on it will be a different squirrel story every day .
Lol the Evening Rangers blagging a story from the daily star about Newcastle being interested in French Eddie for £30 million as well as chasing morelos oh ma sides . They quote a figure for French Eddie but nothing for morelos oh dear squirrel time .
If a number of Scottish clubs go under (Sevco included) and the same thing happens in the lower reaches of the EFL, there maybe an opportunity for Celtic to join the English league system. Celtic should agree to this immediately if offered, even league 2, just to be rid of the anti-Irish brigade running Scottish football.
Well there you have wee Bamber Gascoigne at ibrox noise has made a special guest star appearance and posted another article 48 hours after his chairman announced and bolted the scene from ibrox . But Bamber did write about Mr King exiting the building not a mention of it not one word . No wee Bamber has come out to tell us all that sevco are in the process of paying £4 million to buy Hudgie . Oh dear King bolts leaving a trail of devastation behind and the new club without a dime , clubs all over the world big name clubs at that are cutting players wages and this clown thinks sevco have £4 million to spend on a player . This is him at his best when he writes this kind of stuff . COMEDY GOLD .
Not for me.
We’d be losing a bit of our DNA if we left Scotland just for the English pound.
Scottish club proud of our Irish heritage.
Granted though, I have a feeling I’d be in the minority.
HH
Irishcol whilst I understand your thinking we need to consider the facts. Celtic would still be a Scottish club with Irish heritage. We wouldn’t be chasing the English pound we’d be receiving the global pound thanks to Sky Sports TV money. If you want to see Celtic great again, then I would respectfully suggest this is the only forward.
Oh the BILE is pouring out of them on FF . The hatred has been ranked up to such a high . They have gone back many many years then right up to the present day to run our players down with so much hate . The world is in a total meltdown and all these thickos can think about is hating people and wanting them to die . On another matter I see Keith Jackson having a go at clubs running into financial difficulties including Celtic in his article but not saying very much about sevco troubles ah the feelgood factor at ibrox you can’t beat it .
I said weeks ago this could happen. I’d be aiming for the championship at LEAST though. Teams down there WILL go under. As some will up here.
Operation GOLD across all of Britain’s cities
Yeah – quick pre-pack – bish-bosh – lovely jubbley – job’s a goodun
Debtors have to give a majority vote for a pre-pack i.e. a CVA offering pennies in the pound. That’s why HMRC were able to kill the last CVA.at 9p/£ and force liquidation
The Shareholders lose everything i.e Club Tropicana, King, Park, Bennett, various shell companies etc
The creditors lose almost everything – who are they ? King, Park, Hummel, Elite, utilities, Police Scotland, ambulance service, HMRC, general suppliers, newsagents, face painters etc etc – there were 271 last time
Close Bros have their loans secured against removal chattels – no flies on these guys
Ashley has no debt until the judge names a number – but he could be the decision maker – oops – or block a pre-pack until the judge’s number is known
After pre-pack there is the simple mater of month to month funding – £3.75m/mth is the benchmark – angrily unpopular austerity may reduce that to £2m/mth – me thinks Park is no Bunnet.
And there’s the matter of replacing the chattels that Close Bros took in order to play football – maybe CB will sell them back at a Dell Boy mark-up – £5m yo you, no VAT, no guarantee
Then there’s the fundamental, decades-long issue – they have champagne pretensions, white cider income and a reputation for financial skulduggery and reckless spending – credit and investment will be hard to find.
Anyone who believes a quick pre-pack will solve The People’s problems has much to learn.
Regarding administration as a quick and easy option for Rangers, how soon could a club who were in administration (but not liquidation) play again in Europe?
Park must have more to worry him than Sevco.His business can’t be doing well with the present day crisis.Maybe this is why people who make millions, do so by taking chances.What are the odds of turning Sevco round to become profitable.
Problem with Sevco is,nobody wants to be the man who pulls the plug,No worries the brothers will live up to their name,and Close them down.Park must be hoping that it is soon,as each day is costing him cash that he doesn’t have.As for big Mike good luck with getting anything from King.
Off topic ..but…
Phil…given that your Blog is read in the highest of places…( e.g. Downing Street …not Mount Everest…) can I please use this article to pass on a message to Mr. Michael Gove.
He was on the Andrew Marr show this morning…and among other things ….he confirmed that he went for a jog yesterday morning…then popped out to his local store for supplies in the afternoon…
YOU’RE ONLY ALLOWED OUT ONCE A DAY MR. GOVE…..!!
So next time you go jogging…take as shopping bag with you and get your messages on the way back.
Thank you.
Sevco in the short term will announce a 20% reduction in staff wages they will then apply to the Govrrnment for Furlough grants to pay the remaining 80% of wages for the forceable future..
The negotiation of salary cuts for the remaining galacticos, Billy the fish and Yosser Hughes is a different landscape.
Pay attention. It’s 80% or £2,500 per MONTH, whichever is lower. This will barely dent their wage bill.
Defoe is reported to be on £35+k per WEEK. A 20% cut plus the government top up would still see them needing to find in the region of £120k per month for his wages alone.
I’m not a financial wizard so I nee I understand d help. Defoe signed a load deal until this summer. He then goes back to Bournemouth. Why offer him a new deal with higher wages when he already has a deal? I understand Moreorless’s agent getting new deals for his client every six weeks as they tried to fool people into believing he was the next Messi, but a player on an 18 month deal?
As Warren Buffet says, it is only when the tide goes out that you see who has been swimming naked.
I’m going to use that. And I won’t even blush about stealing it!!!
If, at the end of all this, there is only one club standing then it will be a pretty disappointing fixture list.
I wonder whether the Rangers liquidation could provide a blueprint for a restart. After all, the grounds will still exist, the players will still want to play, and the fans will want to watch a team. So could it be possible that most clubs would liquidate to shed their debt and phoenix clubs just (re)form without that debt?
Probably in some cases but not in others. It’s a risky strategy. The liquidator is duty bound to get the best deal he possibly can to reimburse the creditors. So Hearts fans should be nervous as Tynecastle is very attractive to housing developers. If Taylor Wimpey have deeper pockets than the Hearts fans or a potential saviour then any Phoenix club will find themselves looking for a new home.
Actually that’s true. I had forgotten that Sevco (or whoever has ra deeds) had had to pay for Ibrox. I’m guessing that most clubs would not have enough fans with deep enough pockets to buy their stadia back from liquidators. Perhaps the model could work if it moved away from clubs owning their stadia and going instead for the model of a municipal stadium that clubs could rent on match days. I think that’s the way it works in Italy, and it seems to be what happens in Australian Rules Football where several clubs share the two stadia in Melbourne.
Aye. It’s possibly the most prime bit of real estate in Scotland right now. I doubt very much if there’s another chunk of ground that size within walking distance of the centre of Edinburgh.
Don’t fully understand it but there’s no need to go into Liquidation like Rangers did in 2012. All a business needs to do is to enter into a Pre-Pack Administration. In that case they arrange beforehand to buy back the business before going into admin and then start again debt free. Maybe someone on here can explain it better. If lots of clubs did it then perhaps the SPFL would exceptionally waive the points deduction and they would avoid starting next season with a minus points total. Not a good scenario for a well run club with money in he bank but a godsend for The Rangers.
In the great scheme of things, it’s probably irrelevant, but the supposed interest by Mr.Gibson is still confusing.
Was he just a tyre kicker?
Did he have an ulterior motive to gain free publicity to raise his Owen business profile?
For a guy based in Japan, who seems to be a smart cookie, he would have done his own, basic due diligence at the outset: to avoid wasting his time.
Initially, asking business contacts or friends of friends to give him some feedback on King and co. about their characters, their business past, etc.
Then, a quick financial background check of King, Park, etc.
And saving best for last: a cursory look at the RIFC 2019 Accounts would have been more than sufficient.
As an investment, RIFC is “a dog with fleas”.
So, why bother following up with supposed visits all the way from Japan – simply to confirm what you already know?
Perhaps Mr.Gibson is sharper than the Blue Room thought: he played King and now a lot of people know about him, and as the Internet never dies – he’s always going to be archived as ‘a potential buyer of a football club’.
Well played that man. 🙂
You might just be on the money there.
I once worked for an Ayrshire businessman. Not rich by any matter of means but drove an expensive car, sponsored a number of junior clubs down there and kept a fairly high profile. Anyway a number of years ago, at a time Ayr Utd, were in trouble, I went to visit a customer in leafy Alloway. The conversation turns into ‘Your boss is going to take over Ayr’. Now the bold Shugg wasn’t short of a bob or 2 but it was laughable to even think he had the type of money to splaff against the wall bank rolling Ayr Utd. It was all pretence with him, a vanity thingy but what it did underline to me was that fans are taken in by all the bluster generated by these Whytey type characters. One thing Joe Public being taken in but when the press types are misled so easily it’s gross negligence.
I feel sevco will use the Coronavirus as an excuse for them entering into administration, when we all know this has been coming almost from day 1.
The thing is the Klan are screaming for the season to be null and void . But they now want the coefficient European placings to remain as they are as it would give a second Scottish team a place in the champions league . So there you have it as it stands they don’t want Celtic crowned champions because the full season is not played out . But they want to see it as a full season just now to claim the 14th or 15th place in Europe to get into the champions league. The brass neck of the Klan you could not make it up . Quite surprised it’s never cropped up in any articles in the press . Opps forgot the press don’t want to rock the boat .
Thats where all their arguments fall down. Most of them are so thick that they can’t understand that screaming null and void negates their probably 2nd place finish as teams below them can mathematically overtake them.
Funny how there is no word from the media that they have returned the interim payment made by the SPFL because that would blow their sporting integrity argument to smithereens.
Dave has taken himself out of the line of fire just in time because its only a matter of days before the financial situation at Ibrox is laid bare.
Over to you Mr Park. He would be as well opening the nearest window and throwing the family fortune to the winds as ‘investing’ yet more cash in the Ibrox project.
Professional footballers in the main are well paid and in Scotland the two Glasgow clubs have substantial monthly payrolls.
If there is a story breaking in the media soon that those on the Ibrox payroll have agreed to take a substantial hit on their income then no doubt, no matter how the media spin it, the other alternative is even less palatable.
I believe that the interim payment simply reflects the fact that Celtic, The Rangers and Motherwell are the only clubs guaranteed to end the season in the top six. That’s according to the Motherwell Chairman.
24 hours after Mr King has left the building and wee Coco at ibrox noise still has not surfaced to comment on the guy that apparently saved his new club . He was one of the guy’s that praised King to the hilt now it’s sponsored silence time again.
No statue outside ipox for Mr King then…
A couple of observations here, Phil.
There has been much criticism of Peter Lawwell here and on other social media platforms, and I have been one of the critical contributors. However PL, like many top notch financial guys (and I work for one) does cover all the bases by buying off risk and for a relatively small price protects the company. That is where he is outstanding and should concentrate his efforts (Director of Football is for someone who knows as much about football as he does about finance).
Secondly, the cash burn at Ibrox was potentially unsustainable but under the current business and economic climate is terminal.
If Park is an astute businessman he will protect the company by austerity measures and heading for administration to clear off the lingering debts to SDI and wipe the slate clean. Immoral but currently the best way to let Rangers survive as the liabilities are huge (even without considering Covid-19).
Fergus prioritised Celtic over their 10IAR despite what the fans wanted. He was an astute businessman and we have him to thank for being here today.
Tactically, if I was Park, I would use Covid-19 as a shield to move to administration. The hordes might accept that. He could avoid liquidation but his few assets would be gone and Gerrard et al, Davis, McGregor and Defoe let go to be replaced by Murty and development players. If he did this, he would still have the second biggest budget in Scotland and strategically head to stop 15IAR by building a viable business for the future. However, the vitriol from the Klan may be unsustainable.
If I was mentoring him I would tell him to put it into fan ownership (like Motherwell) and find a way out. He will lose a fortune but at least he will stem the flow out of his own cash.
In the absence of a daft billionaire sugar daddy (and they didn’t become billionaires by being daft) their future is certain…and that’s downsizing the business AND ambition.
To summarise, they have no short term way of stopping Celtic. Leadership is vital at this point. Remember how many people liked Fergus…but everyone respected him and retroactively agreed with what he had done.
Is Park a Fergus type…I think not.
When did the 7 year old club The Rangers SEVCO become the most successful club in the world when they haven’t won a trophy iof.
any repute since the start of their existence. No history, no cups,no facing up to reality, no time to sort the books for this year, and very little or no chance of not going under again. Why do they keep on stating that they are a trophy laden club as mr Park takes over the reins of a club with only one outcome lurking in the shadows of that shack they call Ibrox.
They have more lives than a cat . We can shout them down for as long as we like but for some strange reason they bounce back .
Rangers didn’t “bounce back” in 2012.
Liquidated means just that…
LA LA LA We ‘re Not Listening. 140th anniversary soon. More Ceramics than Wedgewood!!!!
Aye. Deader than the deadest Dodo in the whole of dead Dododum! Deader than Monty Pythons dead parrot.
Gone!
Forever!
Though the bastard offspring lives on!
This is called Celtic news now and the amount of articles about sevco is embarrassing
It clearly isn’t called Celtic News Now. Sevco’s downfall entertains/interests the majority of people who come on here.
Some might say they’ve simply overstretched themselves,I’d put it in slightly different terms…
They ‘expected’ to win(something,anything)so,they pushed the boat out yet again.Alas,they FAILED,as most gamblers do.
The required sum is £18.75m. to feed their black hole of a klub until fitba resumes.No one made them take high risk gambles,they did so to appease their ‘entitled’ fans,that was their goal.Now they can pay for being serial losers,LIQUIDATION seems inevitable what with all that’s happening atm.
Thanks Phil🍀🇮🇪
As approx 80% of rangers and indeed Celtic’s gate money is through season books how can it be that the loss of 4 home games cause such a shortfall in revenue. You can’t tell me the sale of food mechanising etc while being offset by no wagers for vendors and security leave a huge gap in revenue.
If 80% of the fans are season book holders then the other 20% are roll up spectators contributing gate money and other ancillary costs along with the other 80%. And then there’s the sponsorship money, the TV money and the corporation hospitality revenue not coming in. All adding up to a huge amount. And, of course, the players, the staff and the management have to be paid in full plus the cost of the upkeep of the stadium and the training facilities.
The reason is cash flow. Rangers do not have enough cash in the bank to ride out any interruption to their income. In the past couple of years they have borrowed money from Close Brothers and relied on whip rounds from directors. This is the equivalent of you or I borrowing from pay day lenders or our parents in order to pay the rent. Then inagine what would happen if our source of income was suspended.
I’ve read somewhere that season ticket money goes to a third party which releases tranches of it throughout the season as matches are played. If that’s true then no money is being released if no matches are being played. Just a thought.
How long will it take for them to die? Do they not realise they are dead and we are just looking for a space for them to lie down. This saga has rumbled on for so long that I’m beginning to believe that this is just the wishful thinking of non-Sevco fans who are destined to push the boulder uphill every day and have it roll back to the bottom by morning. When Ibrox is a retail park, I might possibly concede that it’s happened.
When Charles of Normandy created Sevco it started life with financial Sisyphus.
The events of June 2012 were epochal.
Their death is irrelevant.
What matters is that Rangers is no more.
You’re welcome.
Does anyone know of list of loans sevco have outstanding? And if anything how much is owed to kings company? Him tipping them over the edge would be fantastic if he called his money in