Well, that’s that then.
Sevco’s season is officially over.
They now have three utterly meaningless games, the first two at the stadium John Brown played for.
The only thing that the Ibrox klanbase is clinging to is the sunlit uplands of the American consortium’s takeover.
Like the dark days of 1940, the skint Brits need the Yanks to bail them out.
However, like the destroyers-for-bases deal of that year, the Americans know how to drive a hard bargain when dealing with desperate, impoverished Limeys.
Rugger Guy cast his expert eye over the public data on these potential new owners of Sevco, and he has advised me that this looks very much like a takeover that isn’t fully funded.
I then asked him to explain that to me in Golden Retriever, and he said that 51% gets you control but leaves the risk of “activist shareholders”.
That’s the term he used.
Essentially, the remaining 49% of shareholders are more than enough to call an EGM and all the expense and hassle that goes with it.
Of course, none of that matters to the Bearmacht with their sugar daddy issues.
All they want is someone, anyone, to bankroll the loss-making entity on Edmiston Drive.
Well, in that case, I think these American Ashleys will prove a huge disappointment.
After the pishful thinking of the Stenography Corps has died down, the public data will become incontestable that these folks are not benefactors.
They plan to take out more than they put in.
This is in stark contrast to the “soft investment” that Mr King called for during the Off License Putsch in 2015.
A decade of dignified chaps plundering their personal wealth generated ONE league title.
The Johannesburg-based convicted criminal recently stated that there is now “investor fatigue” in the current regime.
Over the past few weeks, your humble correspondent has been able to glean the following on the putative regime change at Sevco:
A few senior shareholders definitely want to sell up and abandon HMS Ibrox.
They mainly comprise the directors who are owed loans that were used to keep the lights on.
However, I’m told that some others aren’t currently willing to sell their shareholding to the Americans.
Then there’s an undecided group that veers from one decision to the other.
As one would expect with the Fitba Fourth estate, the American consortium’s game plan is not the subject of any journalistic scrutiny.
Consequently, this allows the Ibrox klanbase to dream big.
The clash between expectation and evidence will ultimately be jarring, as they hope and pray for a benefactor from across the Pond.
If the takeover does happen, then it will genuinely be VE Day.
Viciously Entertaining.
May the farce be with them and their tifos, always. This latest new hope is quite the Lucasian saga. Anyone know from which galaxy far far away the investment is being smuggled from? Disney convince me.
The thing that really bugs me is the amount of alleged reporters, in the so called mainstream scottish media who are banging on about how, these are really serious investors who know what they’re doing etc etc etc, when more than likely they probably know as much about the financial details as I know about the value of rare Mongolian postage stamps, which is sfa.
They’re falling over themselves to give the impression that they know something that nobody else does and it’s all becoming a tad tedious 😴😴😴😴😴😴😴😴
Yes it’s funny how they can comment authoratively on off-the-field, financial matters when jumping on the pishful thinking bandwagon, but when it comes to the fate of their beloved oldco, they are just modest football writers who couldn’t be expected to keep apace with the financial machinations and were as duped along with the rest of the support. Funny that.
How can you invest in anything with no ASSETS
Excellent, Phil.
Actually sitting in a lovely hotel room in sunny climes reading your book downfall great read
Phil, surely if only 49% is required to call an EGM would the Americans not be better doing that rather than trying to buy 51% .
What would be the point of calling endless EGM’s without having the votes/shares to effect change at them? For that you need 50% +1.
Yes, the only RIFC shareholders who ‘may be’ highly motivated to sell are probably those
with the outstanding loans?
They already know that their shares are virtually worthless, so may as well try and
cut their losses – and recover their loan amount in full?
And, apart from trying to secure an acceptably high %-age of shares for their purposes,
a new owner[s] also has to drop that shambles of a Balance Sheet,
which is carrying well in excess of £100M in Accumulated Losses.
[Or, as it’s optimistically referred to on the RIFC B/S: “Retained Earnings” 🙂 ]
A pre-pack Admin. could help that cause, IF the Yanks had the control, and the SFA
would surely be amenable – as in 2012?
[Not sure how this would fit with UEFA’s FSR, if relevant?]
Despite all that, I would fully expect the Yanks to politely withdraw their interest imminently, and for the SMSM to then ‘report’ some ridiculous reason as to why the deal failed.
Trump / tariffs / Celtic fans’ generated ‘whispering campaign’ / the City getting payback for the King ‘Could Shoulder’ dodgy dealing / religious reasons [I know] / etc…
The balance sheet doesn’t contain 100M of losses. The confetti payments for shares have taken care of most of that, which is why there’s half a billion shares in existence. The feelings of these funders would be an interesting data point to measure though, how many were effectively forced into providing ‘debt for equity’ versus those who knew from the outset that they were becoming instant shareholders in all but name.
I’ve no idea if the deal will go through or not, but I think there is a decent chance it does given the foolishness of supporters willing to keep malevolent owners in situ. If their plan is to really bleed the club dry over a decade or two, whats happening in Manchester is a pretty good example that it can be tolerated by supporters who will moan and groan, but at the end of the day pump up the money for the new season ticket.
The RIFC Balance Sheet most certainly does contain “in excess of £100M of losses”.
£106,875K to be exact, as at 30/06/24.
Speculation around losses this year suggests that figure could rise in June to £120M+
Which is of practically zero consequence given their current total debt made up of current liabilities and non-current liabilities is just over 25 million, with the vast majority being 22 million of director loans.
They’re a basket case, but they’re not having to deal with over 100 million worth of debt on a day to day basis. If they were, they’d almost certainly be on the verge of being wound up again. This sale (if it goes through) will mean many of these benefactors who ponied up the difference will take a titanic sized bath, but maybe they’ll be rewarded in their after life for their staunchness, rather than the hate and spite from the season ticket holders.
And my point was not about the B/S with respect to RIFC,
but with respect to any ‘potential’ new owner[s].
We both agree that the B/S is awful.
As Phil stated in an earlier blog the arrival of the Americans early last week at Ibrox before the season ticket deadline is NOT without coincidence, nor the leaking of that information to the stenographers & Sevco cheerleaders in the local media.The Americans did not look impressed as a deal has not yet been agreed & they will also know that this was a coordinated attempt to sell season books as a consequence of their appearance.
The road to 51% might not yet have been achieved & with the implementation of UEFA FSR rules at 70% of turnover the Americans might conclude that this is a turd that cannot be polished & leaves them with very little room for any contingency plans.
A turd that can’t be polished.
What a line 👏 👏👏
The road to 51% priceless hail hail.
Kiddy bhoy
The putative investors will know the magic number is 75% to have total control, call EGM’s, pass Special Resolutions etc so 51% is meaningless and only a fool would invest at such a level which, in practical terms, represents no more than an “in ininfluential majority” of the issued share capital. As for sellers …..everything and everyone has a price !!!
Hail ! Hail !
Have they uncovered the onerous contracts , found the deeds and weighed up the toxicity of the klan kustomers ? At 20p a share the 532m shares would be 106m, at the 3.5p they are currently selling for on the open market then it’s 18m and change. 51% would need 53m/9.5m depending on whether you live in fantasy land or harsh reality. Another bear(sic) season next year and the protests and boycotts will return.
10m is chump change for a feeder club but the baggage might cost more than the seat , see Ryanair for detail. The future will be “viciously entertaining” whether it goes ahead or not.
Manchester United currently have over £750m in debts £300m of which is unpaid transfer fees.
Now whilst the mouthwatering thought of owning the mighty Sevco is obviously a massive draw given the League we play in ,the size of their ground (and its currant state) and the feint possibility of overthrowing the current Champions who are cash rich and living well within our means is without doubt a tantalising prize for a wealthy bunch of venture capitalists looking to make money and not spend money ,the current state of arguably one of the biggest brands in football tells you that American ownership isn’t always that it is cracked up to be.
So long as Celtic invest properly both in terms of the squad and the Manager then the prospect of them actually overtaking us is slim to none.
Unless of course someone comes in and chucks £20-30m straight at it .
Just look no further than Manchester United to see if amassing more debt always pay off in what is a complete gamble in football.
United currently sit in 15th spot and now have £200m worth of increased Debts than when the Glazers took control back in 2005.
If I was a successful business man with money to burn and had the option of taking control of Sevco or eating a Jobby Sandwich then I’d probably ask for the shit butty and be done with it.
“Jobby Sandwich” Classic. 😅
Phil, what sort of money do you think the ‘49rs’ will have to fork out for 51% plus ‘soft loans’ for control of Sevco ?
It was interesting that none of the much feted Amecians was paraded at Ibrox yesterday. Unless of course Neil Warnock was their nominated representative…. 🙂
Speaking of which, did they ever secure the services of a Nominated Adviser (NOMAD)?
On another note, it’s been instructive to note just how many of Ra Peepil have been defending the term “Rebel Scum” as a Star Wars reference when, in fact, it’s been entrenched in their songbook since long before Luke Skywalker was but a twinkle in Darth Vader’s eye. We’re in “The orange shirts are a tribute to our Dutch players” territory here.
No they didn’t and hence why their Shares aren’t available to purchase on the Stock Exchange.
I seem to have recollections of the Glib and Shameless one being very audible on the subject matter around 2015/16.
Quite. Thanks for confirming.