As I have previously reported here, the ongoing Ashley case is not good news for Mr David Cunningham King.
The danger of ring-fencing remains extant.
Consequently, the Johannesburg based convicted criminal wants all of his assets out of the UK in short order.
Of course, with each new explosion of “keep the lights on” confetti, the value of his own RIFC shareholding is being diluted.
Now, that still leaves his loan to the basket of assets outstanding.
Actually, there were two of them.
I was reminded of this fact by a very well-placed source today.
He told me that the first tranche was £6.7m and then another of £1.8m.
With interest that puts the bad news at around £10m.
For the avoidance of doubt, it was never in the Grand Plan at the time of the Off License Putsch for Dave to put in his own money to the Ibrox outfit.
Now it is probably a complete coincidence that the amount required to …ahem…” future proof” Sevco is suspiciously like the first tranche.
Even the most staunch stenographer would be hard-pressed to deny that since 2012 the club formed by Charles of Normandy has been a financial basket case.
Since Mr Mikg toppled Big Mike’s guys in March 2015, the issue would be how the losses would be covered.
Therefore, the question that this site has continually posed apropos Sevco is:
“How deep are the pockets at Ibrox?”
So far, they’ve been deep enough, and now the club formed in 2012 has the genuine prospect of Champions League revenues.
The Sevco High Command are truly fortunate that across the city, Celtic have been done down by hubris.
This turn round in fortunes is truly Shakespearean.
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Phil has UEFA halted/ stopped their financial fair play scheme?
The loans for equity was limited to 30 euros over 3 years.
Sevco must have used up that amount in the past year alone.
30 euros???
Lessons from the sevco board? Really? You’re having a laugh.
People have short memories. The board of the entity that plays from Ibrox now and previously have the same strategy. Spend ‘til the pips squeak and hope something saves the day down the line. It’s like the guy in the game of poker who sells his car for another hand, sells his house, sells his wedding ring all in the hope the next hand will recoup all his losses. Winning the SPFL is not that winning hand. It is a ticket to the next hand and keeps them in the game. Ironically they would have been in the CL qualifiers this year even if they were second in the league. They gambled on an under 18 coach who failed miserably for 2 years while Celtic racked up trebles. Will you accept Celtic appointing an under 18 coach and giving him 3 years for the return of one trophy less than Callum Davidson did in one season?
Sevco are in a mass of debt, have a compensation settlement of unknown amount pending and are printing shares like toilet paper. They won an important league. Well done. However, that was to stop us extending our 9 in a row record they only managed to match, not beat, by the same spend, spend, spend strategy that was the start of their downfall.
So they win one league and suddenly their board are geniuses whereas Celtic’s board get it in the neck for 4 trebles in a row and a bad season. The world of football does not care about leagues in a row in some backwater in the north of Europe. McCann did it correctly. He kept the club on a good financial footing and happened to stop the old rangers’ 10.
Dodgy Dave put in £10m of his own money? Exactly what is he doing now as he puts his shares up for sale? He’s getting his money back as was always the intention. Dodgy Dave did not donate £10m to Sevco. He provided loans and gets paid back with interest on his loans. Not “one thin dime” of Dave’s money will go to sevco without being returned then some.
Sevco board. No thanks.
JS
Bang on. Football fans seem incapable of looking beyond the next game.Does anyone remember the clamour to get rid of Vim Jansen after TWO games in the season he eventually stopped the ten?
Rangers* Board got it right on the pitch Celtics did not. Rangers* access to CL is much much easier via the champions route. Celtic have a near impossible route. Rangers* board cared more … it’s very clear that is true … they personally dig very deep. King lent 10m that is a serious loan. Would Lawell or Bankier do that ? Fergus invested and got 500% back so let’s not criticise King for 30 or 40%. King said his regime would stop ten … they did and we are all sick and disgusted because he and his Board did exactly that. And with vastly less resources than Celtic board has at their disposal. Our Celtic Board has been shockingly bad starting with not backing Rodgers fully.
Interesting business analysis. Not sure about your figures but for the sake of discussion let’s say they are. Fergus runs the business in such a way that his shares go up 500%. Dodgy dave runs a business such that his shares increase by 40% and he’s the good guy? Bear in mind sevco shares are not traded on the open market because they are not listed. So any value put on those shares is just the seller’s hope not necessarily what they would get or are worth. Dodgy Dave, and the other directors run the club in such a way that they have to put in money or the club/company are effectively trading insolvent. Not enough coming in to pay the bills. So they print toilet paper in exchange for their money thus devaluing all other shareholder’s shares. Dave then loans, money at a nice interest rate to keep the club afloat and he’s the good guy? Businesses cannot be sustainable on loans and printing shares. Anyone can get a good hand at poker if they play the game long enough. It’s the player that stays in the game at the table who is the eventual winner. Much like Celtic saw off Rangers when they went into insolvency and liquidation. I don’t recall Saint David Murray getting it in the neck in ‘98 when Fergus and Wim stopped the 10. He tried to see Celtic off with his strategy but just dug a bigger hole for him and his club.
Take the ups and the downs on the chin. That’s football.
This league could well be a phyrric victory for sevco.
JS.
I am no financial wizz but surely a competent board could have a better plan for the year’s funding than a bunch of seperate share issues. It just looks ludicrous and amateurish. It’s as if they are bouncing from one month to another will no real business plan.. Oh Wait !!
Celtic have a massive challenge ahead this season and it will mean spending big time. A new manager will get the best out of the players that remain though so looking forward to seeing that come to fruition with last season way back in the distance. Onwards and upwards.!!!
The slings and arrows of outrageously overpaid fatcat unambitious directors.
There is of course the overdue 9 million tax bill for 2019-2020 allegedly being paid in instalments on top of the 2020 – 2021 tax bill, Of course the extensions of tax liabilities are also coming to an end very soon so Hector will no doubt be scrutinising Sevco given the old clubs failure on tax and NI payments leading to their liquidation.
Why would Hector do that?
Sure these are two different entities 🤷🏻♂️
The stench of the old club remains!
The current ‘investors’ plus another confetti share issue will cover the year’s projected losses, according to Mr Bennett.
The ‘current’ investors’ have to date had no return on the millions pumped in to keep the lights on plus King wants his loans back.
Given that over the last few seasons decent runs in Europe have capped the losses to £50m plus.
Failure to qualify for CL Group Stage or Europa League Group Stage this season would cause Mr Bennett’s numbers to be revisited somewhat.
Have the current ‘ investors’ projected cash flow numbers included all or any of the Sports Direct claim?
Always remember that the Company (separate entity) who control season ticket sales have told each company who apparently have dibs on 5088 ltd, will only deposit cash on a 12 month basis as being shafted like a local face painter is avoidable.
Hector doesn’t even like being stiffed twice by the same address.
People and Celtic fans can ridicule King and Rangers* Board all they want. They delivered big style in stopping ten and yes King put in 10m of his own money. He has delivered the most important thing. I dislike it but it’s fact and Celtic’s Board should take lessons from the Rangers* Board. Simple fact is they cared more about Rangers* than the Celtic Board care about Celtic. Sad but true.
He loaned them money. He did NOT put it in.