It goes without saying that RIFC’s auditors have always carried out their professional duties to the highest Sevco standards.
However, when a company is taken over, there is often a new way of doing things.
The thing is the Sevco High Command were very happy with the original arrangement.
I’m told that the Serious Professional and PR superhero DUPman were tasked with reaching out on this matter.
However, this dignified duo was informed that what had been allowed to pass muster in the RIFC accounts since 2015 was now no longer acceptable.
My information, from an impeccably placed source, was that the dispute was much to do with contingent liabilities.
I understand that the potential bill from the Sports Direct litigation was front and centre of these dignified discussions about the year-end accounts.
There is also the matter of a loan being presented as an investment.
However, I’m sure that was just an honest mistake and easily rectified.
The good news is that RIFC has successfully applied for a Covid extension that will not have to post accounts until June of NEXT year.
For the avoidance of doubt, this is all entirely above board.
If things go to plan for the chaps in the Blue Room, then the arrival of these car crash accounts next year will matter not a jot to the Ibrox klanbase.
By that time, Sevco could be SPFL Champions and looking forward to the possibility of the Champions League Group stages.
There is a saying in the military that “a bad plan is better than no plan”.
Kicking the can down the road in the hope of UEFA millions is certainly a plan.
In the meantime, it is necessary to keep the lights on, and there are clearly those who can find the funds to do that.
Football finance expert David Low did not miss with this comment today.
The Covid pandemic, although a human tragedy of global proportions, has been something of an advantage to the Sevco High Command.
For the avoidance of doubt, that does not suggest for a moment that the men in the Blue Room are in any way enjoying this awful plague.
As has already been stated the apocalyptic figures in the accounts will not now see the light of day until next summer.
However, Hector, the nemesis of old Rangers, is currently giving companies some leeway on arrears.
It is probably a coincidence that the newest batch of RIFC share confetti is close to the monthly instalment to HMRC.
My information is that the outstanding amount is being paid down at £1.2m per month.
I was told yesterday that the Sevco High Command had asked to be given until March of next year to pay off what they owed.
Tow very well placed sources have given me different figures.
My first source stated to me that the initial quantum owed-around the time of the first lockdown was £6m.
Yesterday I was told another source that it had was closer to £7.5m.
If the larger figure is correct, then that suggests that monthly payment has been missed.
However, that is speculation on my part.
For the avoidance of doubt, this isn’t Sevco’s equivalent of the Big Tax Case.
Firstly, I believe that they will be able, in extremis, to find the funds to pay this bill.
Secondly, it is not the result of any avoidance or evasion.
Hence Hector is being a reasonable chap about it.
The Covid19 pandemic has also slowed down the court process.
Consequently, General Ashley is still awaiting the opportunity to drop his bill concerning the Sevco car boot sale with Hummel.
Oh, and the Danish sportswear outfit have their own litigation with the eight-year-old club.
It is increasingly clear to me that the Sevco High Command have bet the proverbial farm on winning the league this season and aiming for the riches of the Champions League.
The absence of Financial Fair Play (FFP) regulations in the domestic Scottish game allows this high-risk gamble to happen.
The HMRC arrears is proof that the Ibrox club has fielded a team that they cannot afford.
History might judge that they were also extremely fortunate in having accommodating adversaries who fumbled an opportunity to make history.
I, of course, couldn’t possibly comment.
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No surprise to see another huge loss reported in the latest Rangers annual report.
No worries as Park and others commit to fund the current year’s shortfall and next year, and………….
Of the total annual revenue, one third is being attributed to their Europa run.
So the future of the club is entirely based on UEFA cash.
The stand out thing is the payment plan with HMRC.
There is no way HMRC would have done a deal with a company/club which had previously gone bust owing millions of pounds to creditors including the taxman.
This is solid proof, if needed, that the current Ibrox entity is not the same club/company that failed and was subsequently liquidated.
£15.9m Loss (With a £5m loan share hingy chucked in on top )
Then there’sHectors Tax Bill,Mike Ashley,Dave Kingaling and Hummel
😬😬FT
⏳…………… 🧨
Then there are the post balance sheet events…
Acquisition and disposal of player registrations
The Group contracted for the purchase of seven permanent player registrations in addition to the temporary registrations of one player on loan. The amount payable in respect of above amounts to £15.4m, after taking account of direct costs.
The Group also disposed of ten player registrations on a permanent basis, one registration on loan and became entitled to sell on fees on player registrations previously disposed. The amount receivable in respect of above totaled £1.0m.
Investor loans
Subsequent to the year end the company received further investor loans amounting to £4.5m.
Share Issue
Subsequent to the year end, further share issues were carried out, allotting 66,609,890 Ordinary Shares of 1p each. £13.322m of investor loans were converted during these share issues.
31. CAPITAL COMMITMENTS
At the year end, The Group had contracted for stadium improvements and player registrations amounting to £6.88 million.
Regardless if sevco win the league( which I really doubt) they will still have a crack of champions league as 1st and 2nd positions get the chance albeit on different rounds, but still a good chance of the riches. So a clever businessman would take on that gamble
Has there ever been any explanation as to why the SFA and Scottish Clubs rejected the use of FFP?
I find it strange that after the downfall of Rangers (Peat Be Upon Them) with Celtic adopting a Debt Free mantra and the majority of Clubs sorting out their own Finances these same Clubs would vote down a move to ensure these sort of things would not be allowed to happen again?
I mean to say every Chairman and Club owner in the top flight must be looking at their current spending thinking …Why is this being allowed to happen again?
I cannot for one minute think the Aberdeen owners are very happy about being usurped by a Club spending beyond its means and not producing any Accounts to verify how they are Managing to do so without a Source of Credit from a Bank?
Aye, Peter Know All was allowed to drive a very capable and successful manager out while bringing in Neil Lennon who was failing at Hibs, thanks Peter Know All.
Lenny got Hibs promoted and took them to a 4th place finish in the League.
Peat subsequently decided to sell his entire Midfield going into the new Season.
Hence why Lenny told him to poke it.
Same as he did PL after the stripping his Celtic squad post making the last 16 of the Champions League.
A feat btw that Rodgers failed to replicate at either Celtic (30% bigger Budget) or Liverpool (£300m spent on transfers with a squad already containing Reine,Agger,Skyrtl,Johnson,Lucas,Gerrard,Suarez and Sterling) with budgets that dwarfed what Lenny had to work with.
Rodgers bolted at the first sign of a 2angers revival and took the money at Leicester.
Interesting RIFC want an extension to March 2021 to pay.
That suggests final payment under existing agreement lapses before then.
If before 31/12/2020 or earlier that would need to be declared under UEFA FFP and if not paid by 31st March 2021 it then becomes an overdue payable unless an extension is granted.
They probably will get that extension as it improves HMRC chances of full recovery as it would allow CL money from season 2021/22 to cover 2020’s debt.
It is like a back door loan using HMRC.
1. Pay players instead of HMRC.
2. Let HMRC debt accrue in 2020 until HMRC call in arrears.
3. Get a written agreement to pay arrears that keeps the lights on and keeps players.
4. If written agreement expires before end of year ask for extension knowing it is in HMRC’s best interest to grant one.
5. Get into Europe with over due tax but excused by a written agreement with HMRC.
6. Pay the tax 18 months later from UEFA income whilst holding on to the players that enabled access to that income.
7 Thank HMRC for the loan.
Cute.
Here’s the thing Phil.
The government/banksters have magicked up £895,000,000,000,000 in order to pass on confetti money to anyone that is willing to spend it to “bolster the economy”.
It sticks in my craw to say it but I suspect Hector will let no end of SMEs off with owed taxes in the end.
Why wouldn’t they, they can cover it with their magicked up cash.
Now for the real question…who pays for the magicked up cash in the end…..
I’ve said for a couple of years to you that a monumental collapse was coming, I suspect a UK bank has collapsed and they’re just not inclined to tell us, the law of the land was adjusted to allow this.
So Folks, when you’re spending £5 on a loaf from Lidl you can be happy in the knowledge that you’ve not only helped the bankers but also companies life Sevco.
Angry should be the starting position for what the Commservative party and doing and the largess of Comrade Rishi Rich Sunak.
If we blow the league this season the board will never be forgiven.
I hope they realise they can shut the top tier at Paradise as the crowds will be below 20k.
I just hope the players extract their digits and get us back on track starting with a convincing win at Easter Road on Saturday.
KTF 🇮🇪
Im actually very. very upset that our own club has allowed TRIFC to be in the position of spend,spend,spend…with no brakes that can hault this kamikaze mission they have set course on.
Im also not laying the blame soley at our own door…..every team in the Spfl is responsible for their tolerance of what the mordor orcs are doing.
With regards the tax situation….is there any way to find out if they declared that situation upon the application of the current european licence….and if not,surely uefa MUST take action.
Action against the orc tribute act and the SFA who have…yet again…failed their duty.of due diligence.
Mike Ashleys case was supposedly up for “final decisions” in the court last Wednesday 11th November……have you heard how that developed Phil.
Generally if a single payment to hmrc is missed, it deletes any agreement made and payment becomes due immediately.
Ive already stated on my own site, that I did not believe the tax situation would kill the mordor club…however, I do believe it could force administration at the least.
Any chance, Phil…you could comment on these observations…
They have squared things with Hector provided they complete the agreed repayments. They will, probably, also be building up a significant tax payment for this year’s trading that is likely to require a similar accommodation next year and whether there’s the will (Hector) and funds (RIFC) is another matter.
The other issue is about disclosure for this season’s UEFA licence, did they do this? I find this surprising as I thought the licence criteria responses were made public and I’m sure this would have been commented on if this was the case.