Has Green Got The Right AIM For Rangers? Footballing Share Issues – Guest Post by Ecojon

 

As TV money flooded into the EPL in the 1990s football club owners flocked to the Alternative Investment Market (AIM) which developed a ‘Midas aka Cash Convertor Touch’ by allowing owners to generate cash from the newly increased value of their club and within a few years 27 teams were listed.

Some owners might have been driven by personal greed but to be fair most of the cash income went on buying players and paying over-inflated wages. But that had the effect of diverting dividends from shareholders and this had a knock-on effect of depressing club share values. This fall in value was heightened by the global stock market plunge which plunged shares lower.

At this stage it is worth giving a FINANCIAL HEALTH WARNING!

Anyone buying shares should always remember that what goes up can come down and sometimes end up with NIL value. Football clubs also had a specific problem in that tens of thousands of shareholders only held one or a handful of shares bought as gifts for soccer mad relatives, friends or workmates. This created quite significant administrative problems and costs on top of the already high expenses to satisfy the regulatory framework of the investment industry.

A further difficulty soon emerged in that these pesky football club shareholders seemed to believe that as a part-owner of their club – through their shareholding – they had a right to interfere in the decision making processes of their wealthier betters on the club board who, of course, had often made a killing when a club was initially floated.

These factors combined to see a rush out of the share turnstiles for football clubs and today of the original 27 clubs only two are left – Celtic and Arsenal as far as I can establish.

Tottenham Hotspur, the first club to float on the Stock Exchange, was the latest to delist from the second tier Alternative Investment Market (AIM) in January this year leaving only Celtic. The recent success of Spurs in Europe and increased income at home and abroad coupled with a decision to increase stadium capacity and build a more powerful team were the main drivers in returning to a private limited company status.

Celtic is still has three classes of shares listed on AIM and one class which isn’t listed. I really wonder if Celtic will continue to buck what seems to be an inescapable trend especially as the owner of Glasgow Rangers is pinning his hopes on AIM providing salvation for his club?

Arsenal has a ‘Small Capital PLUS Market’ listing – as had Rangers until their recent problems – with some talk that Arsenal might move up to AIM. The Small Capital market has recently been undergoing severe structural problems that are way outwith the scope of this blog to explain.

Rangers also had a Plus Market Listing but this was suspended when they failed to file audited accounts at the end of 2011 although they attempted to submit unaudited accounts in January this year but these were rejected.

Another bombshell landed when the Plus Stock Exchange announced an investigation into the failure to disclose Craig Whyte’s seven-year disqualification from acting as a director of Vital UK Limited in 2000 when he was appointed to the board of Rangers FC on May 6, 2011′. A fine £50,000 fine was levied for the breach and the company was censured for its “deliberate, negligent or reckless attitude” to the PLUS Stock Exchange Rules.

Rangers then countered that they had been considering exit from the Plus Market in any case and Whyte pouted: ‘There is very little, if any, tangible benefit for the club to be a listed company.’  I can only observe that membership seemed to suit Whyte when 85.3% of Rangers shareholding was acquired  by ‘The Rangers FC Group Limited’ a mere eight months previously 🙂

Last week the Plus Market formally announced that Messrs: Ellis, King and Whyte had been removed as directors of ‘The Rangers Football Club P.L.C.’.

BTW if any Rangers fans are feeling sorry for themselves they should read: http://en.wikipedia.org/wiki/Birmingham_City_F.C and they will see that things can always get worse and I won’t rub salt in the wound with any cracks about their Southern ‘Bluenose’ cousins  🙂

Manchester United face interesting financial parallels with Rangers in that they faced high debt levels of £423 million after complex Glazer borrowing to fund the purchase of  the club in 2005. At the time, Glazer followed the football trend by delisting his newly purchased club from London Stock Exchange. The plan was obviously to pay-down his debt from ever-increasing revenues mainly, I suspect, from TV rights.

That seemed a sound financial model to work with but there was a Joker in the pack about to upset the Old Order. As I have posted previously in relation to Scottish Football, there are millionaire investors and billionaire investors when it comes to football. Glazer although extremely wealthy is not in the billionaire class of Abramovich (Chelsea); Sheikh Mansour (Manchester City); Qatar Investment Authority (Paris St Germain).

These billionaires, with possibly others to follow, can throw never-ending cash resources at their ‘toys’ and have no need to earn a profit from the ‘investments’ made in their clubs. Of course things can change and I suppose Romanov (Hearts) may be a case in point and there is always the possibility that the bored rich may move onto other distractions – a weekend ranch on the moon perhaps 🙂

But as illustrated by Green’s so far successful consortium and other failed efforts (Rangers) it can sometimes be difficult to establish whether so-called millionaire and billionaire investors actually have any money or not or whether they are borrowing capital to invest and what leverage might have been applied.

The billionaire football investors can ‘buy’ their way to success with the players they sign and wages payable and in the process Glazer is being left by the wayside and Man Utd could suffer a disastrous dip in popularity and income by being forced to field ‘cheaper’ players – as stars age or are attracted away by higher wages elsewhere – with the inevitable consequence of slipping down the EPL with ever-increasing debt burdens.  I actually see the Rangers situation as a microcosm of this.

However, I digress albeit dealing with the single story that has captivated the whole of Scotland – not just football fans – for weeks on end.

Back to Manchester United and the burning question of how it can repay its debt but continue to buy and pay top-level players and compete on a level playing field with billionaire-funded teams. Well Glazer has performed what, at first sight, appears to be a U-turn by his plan to relist and offer an initial $100 million tranche of Man Utd on the New York Stock Exchange by way of an Initial Public Offering (IPO).

The £64 million only represents approximately 5 per cent of Man Utd’s estimated value which protects the Glazer voting rights from those pesky shareholding fans – I mentioned earlier – getting together to try and wrest control of the club from Glazer – the same device of building a shareholding in a club and eventually gaining control was employed by Glazer at Man Utd btw.

It appears no dividends will be paid on these shares and there will be inferior voting rights if any but the gamble is that the actual shares will spark a worldwide interest in football fans anxious to legitimately bore friends and family by revealing they are a shareholder in the iconic team.

It remains to be seen whether the ‘no dividend no vote’ decision will reduce the subscription rate for the shares as the equity investors are essentially handing Glazer their money for free but even so Glazer will probably end of with a healthy wedge to help reduce his debt and free-up the income he uses to service the debt to put towards new players or to retaining some who otherwise could be lured by higher wages elsewhere.

Last year Man Utd pursued a 1bn-dollar (£640m) flotation on the Singapore stock market but it fell through because of the volatile global economy. The reorganisation would have seen the team become a wholly-owned subsidiary of Manchester United Ltd, a newly-formed holding company based in the Cayman Islands.  The mind boggles and I’m a bit unclear to the meaning but do I hear an echo of the Green position that he owns the players outright irrespective of Tupe Regs?

Glazer obviously remained keen to test market-reaction because of proposed changes under the revised Financial Fair Play rules (FFP) coming into play in 2018 when the annual loss allowable against a club is capped at £8.8 million.

However we all know how creative accountants can be so personally I won’t hold my breath in expectation that a level playing field is created.

UEFA has already introduced FFP Mk 1 which allows clubs, over a three year period, to  get deeper into debt if they fund losses through equity but restricts allowable debt if the money is borrowed.

So, let’s return to Rangers and the wish of Charles Green to list it on AIM where it had initially been projected a £30 million flotation would be achieved giving Mr Green a 10 per cent commission of £3 million. One thing that must be remembered by anyone becoming involved in any kind of financial investing is that the industry is absolutely choc-a-bloc with advisory companies who all want paid for their ‘expertise’. Always remember of course that they one thing they can’t guarantee and tend to shy away from mentioning too loudly is that they can’t guarantee that you will get a dividend or make a profit on your shares and MOST IMPORTANTLY they can’t guarantee that you won’t lose the shirt off your back or even football jersey let alone football club 🙂

Another interesting thing about shareholding is the way that shares can be in different classes eg voting or non-voting and, indeed, extra shares can be issued sometimes in their millions which can eventually reduce the value of your shares to fractions of a penny.  You are always recommended to take independent financial legal advice but as someone who has been around a bit I can honestly say that I have never worked out how to guarantee that I am actually getting ‘independent’ financial advice.

To illustrate the problems it’s worth looking at Millwall who delisted from AIM after working out that listing cost them £100,000 pa of their £600,000 annual loss at the time.  What was more farcical was that the club had 37 billion shares in issue – more than the worldwide multi-billion BP and they had to consolidate the position by a 100,000 shares to 1 issue. Millwall’s finances improved after AIM because they were promoted to the Championship which saw their income jump 60 per cent to £12 million (approx figs) mainly through TV money.

But before the move Millwall tried to clear its debts by offering an £8 million rights issue which saw directors invest several million but only raised a further  £140,000 from 600 other investors – presumably club fans chipping-in an average of just over a couple of hundred quid a head. Another factor in the Millwall decision was that directors believed the true value of the club wasn’t reflected in its former share value of £2.80 and, more especially, that the AIM listing made it difficult to encourage investment.

I look at these figures from 2010 and factor-in that the UK recession is now deeper with no real sign of ending and Rangers profitability, it would appear, will be badly eroded for the next 4/5 years at best.  And I can’t help but wonder who is going to buy £30 million of Rangers shares which I would regard as the minimum requirement to finance the club in the lower divisions and build a financial platform for return to the SPL ( or whatever takes its place) especially as a lot of cash will need to be spent on better quality players and more of them and I have no intention of denigrating the skeleton squad that is now left.

There is also financial ‘chatter’ that few investment institutions are interested in sub £10 million AIM capitalised companies and it may well be that if Green can’t achieve his £30 million target that he could end up in the £10 million danger zone.  However, Mr Greene may well have anticipated the difficulty by offering the founder investors up to £10 million jointly, to double their shareholding in the company. How this would affect share value and dividends won’t be seen unless an AIM listing is achieved in due course or even a Small Cap Listing.

I suspect that an initial casualty at Ibrox will be youth development as it is expensive and provides longer term results and seldom short-term fixes which usually require cash being splashed.  There is also money to be raised by selling Murray Park to a developer willing to gamble on relaxed Planning legislation which is so in vogue under the Tories.  Btw I wouldn’t blame Green if he is forced into such a move by financial expediency because when money is tight it is day-to-day survival which is the only consideration.

However, to stop pontificating and return to shareholding, I have always taken the personal view that purchasing shares is akin to a Ponzi Scheme where the only ones who actually make money are the ‘original’ investors and I am yet to be convinced that an AIM flotation is in the best long-term interests of Rangers and its fan or even a desirable path to follow.

It seems I am not alone with my doubts with Accountants Deloitte stating:

“Since the number of companies on AIM peaked at 1,694 at the end of 2007, we have seen an almost non-stop decline in numbers to 1,150 companies listed as at November 30, 2011, a reduction of approximately one third.

“Over this time, listed companies have departed the market in droves, either voluntarily, if they don’t perceive ongoing value in their listed status, or involuntarily, generally due to their financial circumstances in these difficult economic times.”

What will unfold at Rangers is yet to be seen but it will be interesting and I feel certain the road ahead will contain many surprise sharp turns – I expect it will end up in a car crash for the Green Consortium which probably would create the biggest danger so far to the continued existence of Rangers as a ‘club’.

But I hope that the breakdown services in the shape of wealthy Rangers Knights are sitting in a lay-by with financial engines revving ready to provide life-saving intervention and not the first aid sticking plaster of the Green Consortium and its mystery shareholders. I have always made it clear that I wish Rangers well as I believe they are an essential profit driver for all of Scottish Football.

But more so because I lived through the dark days at Celtic under the days of the ‘biscuit tin’ and allocated turnstiles and the so-called Celtic ‘Men’ who were within hours of extinguishing Celtic. I believe without hesitation that Celtic would have risen again through the absolute commitment of their fanbase and, in a strange way, it is a shared bond with Rangers.  The loss of any Scottish club is something to be mourned by all football supporters and we should all do our best to try and avoid it and prove to the world we can actually run successful football leagues.

I might even begin to believe we could go on to run the country – nah I’m becoming deluded here defo time to sign-off  🙂

 

Posted by Ecojon

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50 Comments

Filed under Charles Green, Guest Posts, Rangers

50 responses to “Has Green Got The Right AIM For Rangers? Footballing Share Issues – Guest Post by Ecojon

  1. Jamie

    I will put money on it the AIM vehicle to list Rangers will be Worthington Group, owned mostly indirectly by Craig Whyte. Another opportunity for him to cash out, the same company that gambled its entire pension fund in Rangers which is currently frozen with Collyer Bristow dispute.

  2. mick

    great read ecojon well academic but you simplifed it well for all to understand ,green just said on sky sports news hes got a new backer 1mil for 10% hes of to uefa to sort the old co debt ,man utd look well skint on paper ,the biscuit tin packed in like sardines but the paper said 28000 thousand lol

    • ecojon

      You know Mick since Green appeared on the scene I have had nightmares featuring Dempsey who IMHO was Green Mk I – just imagine if he had actually scraped the money together and thwarted Fergus where would Celtic be today?

  3. The malevolent hand of cowardly forces

    Thank you Ecojon for an enlightening insight to a murky world. Whilst I am a supporter of a ‘diddy’ club, I still mostly share the sentiment in your second last paragraph. I only occasionally deviating away from that stance when stumbling across a bile ridden rant from a paranoid bigot. I too hope Rangers find a way back. I also hope attitudes and behaviours across the football landscape will be a bit different and that I can take a child to a match (particularly against one of the old firm clubs) without finding myself cringing during the experience.

  4. Stuart

    What strange topics we football fans discuss nowadays. As a teenager in the 60s, the only financial topic up for discussion was the transfer fee for your new left winger. “AIM” was something a centre forward did when he shot for goal. The consequences of relegation were that you played Montrose and East Stirling rather than established first division giants such as Dundee (and their then much less illustrious neighbours across Dens Road), Hearts, and of course a couple of Glaswegian clubs whose visits were always dreaded by my parents.

    There must have been financial consequences to relegation, but no-one bothered telling us about them. There was a shock to the system in 1967 when Third Lanark went bankrupt, but from memory, the press decided that “financial mismanagement” was all the explanation that was needed. Or perhaps I was just too young and naïve to ask for more details.

    How much more simple it all was.

  5. Stuart

    I was intrigued by your references to EPL clubs. With Arsenal concentrating on paying off the cost of building the Emirates (and/or Arsene Wenger concentrating on his youth policy?), I have felt for some time that if Chelsea and Man City had not had their competitiveness boosted by Roman Abramovich and Sheikh Mansour’s billions, then for the last seven years the EPL would have been the sort of one horse race that many are predicting that the SPL will now become.

    I always used to resent Man U lording it over the others because they had more money, but at least they generated that money from their football success. It doesn’t bode well for the EPL if Man U do decline as you have suggested.

    • ecojon

      I think taking a wide view at football financing it is clear that no ‘model’ last forever as times and the product change. If the SFA/SPL/SFL haven’t already heard the alarm bills ringing then they really have to have to have a wake-up call and start designing an attractive and financially sustainable football set-up in Scotland.

      I think some very senior ‘blazers & suits’ have become irretreivably damaged by their recent inept handling of the Rangers situation and all that flows from it. It is therefore an opportune moment to replace them with others who have the drive, expertise and integrity to bring the vision to reality.

    • Marching on Together

      “they generated that money from their football success” A club who used a plan crash and the associated deaths as a marketing tool? Also look into the financial history of that club under Martin Edwards, and the Whyte-style shenanigans aka corruption that he engaged in.

      • Ernesider

        MoT

        “they generated that money from their football success” A club who used a plane crash and the associated deaths as a marketing tool?

        Only twice in my life did I ever cheer for Ranger and they were playing Manchester United both times. Notwithstanding, I regard that as a despicable thing to say.

        I lived and followed football throughout that period and I can tell you that the Munich crash and the team’s brave struggle in the FA Cup afterwards, caused a spontaneous tidal wave of sympathy and support, that has remained with the club to this day.

      • Stuart

        I wouldn’t describe it as “Whyte-style shenanigans”, but that’s part of why I was a. bit of an ABU. But I still have more regard for a club that generated it’s own money than one that has just become a billionaire sugardaddy’s plaything.

        As for the Munich crash, Ernesider has said it much better than I can.

      • Marching on Together

        Erniesider, Stuart

        I stand by my comments. While your comment about the sympathy to Man U in the aftermath of their crash is of course accurate, after 30, 40, 50 years, the club cashes in on it, and the ‘legend’ of the Busby Babes. If you have been anywhere near the Old Trafford shop, or seen any of their marketing literature, as I have on numerous occasions over the last few decades, then you will know that I speak the truth.

        As for Edwards not engaging in “Whyte-style shenanigans”, you are right, it was not like that, it was indeed definitely criminal, not possibly. But hey, the FA investigate Man U’s financial affairs? You’re having a laugh.

  6. ecojon

    http://www.scotsman.com/sport/football/spl/rangers-newco-charles-green-in-talks-with-uefa-over-3m-debt-to-european-clubs-1-2415666

    Green also believes there has been a change in attitude from the fans towards him and revealed they can ultimately own up to 50 per cent of the club.

    “I am trying to do a job that rescues Rangers for the fans and for the people who own this club.

    “They can own up to 50 per cent of this and again if fans choose not to buy shares then that is their right.

    “The opportunity is there, we will have fulfilled our promise to fans and that is the next step.”
    ———————————————————————————————-
    WOW! what a dissembler IMHO.

    Green says he believes there has been a ‘change in attitude’ of fans towards him and I believe this is just another pointer to the whole story about the re-imposition of a transfer ban as a carefully planted PR ‘dirty-trick’.

    So big deal, the fans can own up to 50% of the club – alternatively read this to means the fans can never own Rangers as they won’t have more than 50% of the shareholding. The incredibly inept journalism employed here has failed to ask the key question as to whether the shares mentioned will even have voting rights. If not the fans have zilch control.

    Greene says he is: ‘Trying to do a job that rescues Rangers for the fans and for the people who own this club’.

    Therein lies the problem because the fans and the people who own Rangers – now or in the future – have widely divergent interests. One being a desire for football success and the other to increase their personal wealth on the back of that success. Also I thought the job Green was doing was to bring rangers to a successful AIM listing for which he anticipated being well paid to the tune of £3 million plus wages in the interim no doubt to keep the wolf from his door.

    And then his parting shot: ‘The opportunity is there, we will have fulfilled our promise to fans and that is the next step’

    I thought that the original promise to fans was that they could eventually own their club which Green in the same breath has stated cannot happen. I really will need to go back and look at Green’s early ‘promises’ – it really amazes me the number of times I have had to forensically examine Green’s language with my Bullshit Meter to try and divine what he is saying and more importantly what he isn’t saying.

    So the Great man is off to charm Uefa – probably thinks he can stick the boot into the SFA – well see. Wonder if Rapide Vienna will be invited along – would love to be a fly on the wall for that. The Austrian club is still owed £1,011,763.44 from the £4 million sale of Croatia striker Nikica Jelavic in the summer of 2010 and have requested the assistance of Uefa and Fifa to get the money out of Rangers – so perhaps Green has been summoned to to Uefa which again the lazy reporting seems to have missed.

    I notice another aside from Green that he is heading off to Athens, Greece after the Uefa meeting to set-up a friendly with Olympiakos at Ibrox – my Paranoia Meter has started beeping as I seem to remember that some of the mystery shareholders in his consortium have Greek connections or may be based there.

    • mick

      he cant play them if no licence ,the fans are being hoodwinked ,and the sfa said that the fit and proper person test is confidential but they are still waiting on docs. sounds suss to me to theres no end to it the sfa statement today wants coisty punished for saying who are these people the fans have a right to know 2so they can bully them ” the sfa statement was well sound and clear its on there website,green could be told to pull the plug in athens lol

      • ecojon

        Maybe Green thinks that Olympiakos might be a better bet than Rangers given the current state of the Greek economy. Maybe we should contact them and give them the Blog address so they can start manning the Parthenon Ramparts and set sail from Piraeus in a Theseus trireme to repel foreign invaders who promise they will help them take ownership of their club .

        I think we might have to change the saying: ‘Beware of Greeks bearing gifts’ to: ‘Beware of Green bearing shareholding certificates’. 🙂

      • JimBhoy

        Mick I’ll tell you what is suss.. The current supposed sanctions reagan says green MUST comply to, namely the appellate resuls, where the Hampden genius is weighing in with the old sanction, this is spin. Go back to paul’s blog a couple of days back on the number of players with the ibrox club… Green in an interview yesterday slipped in the fact that there will be redundancies, did anyone else hear that? So basically this sanction meets with his plans very well indeed. However illegal it has been deemed at the court of sessions.. The ONLY other alternative sanction is to take newco out of football for a period, this would see much more criticism for the hampden monkeys. So reagan once again tries the spin to hoodwink the fans… The appellate case and the dual contracts should have been heard before any vote on newco, either of these should have seen no football at ibrox this term. I am sure most concur with this thought and I am sure the Hampden (3 and growing) wish they had a time machine.

      • ecojon

        @Jimbhoy – on the money but I think they would be better off with an exit machine and a cloak of invisibility to continue the classical approach of ADM’s previous blog.

        But I can’t help but think that this whole ‘exclusive’ on the sanctions is a PR stunt organised by Green IMHO. I can see lots of positives in it kudos wise and also in tactical negotuating terms between Sevco Rangers and the SFA.

        Like an iceberg, there is always more going on beneath the surface than is visible above it.

      • redetin

        ecojon, As you say: “I have had to forensically examine Green’s language with my Bullshit Meter to try and divine what he is saying and more importantly what he isn’t saying.”

        As long as Green has these several roles, viz, appointee of D&P to RFC PLC (In Admin) and Chief Exec of the two new companies, Sevco Scotland and Sevco 5088, then he will be able to continuously muddy the waters. We don’t know yet exactly who transferred from RFC to Sevco and the effective date of transfer. We don’t know the registration status of the players.

        So when Green say’s there will be redundancies, is he talking about RFC PLC or is he talking about one of the Sevco entities? Seems that people who work around these dying companies are masters of obfuscation, not dissimilar to those Rogue Traders who scarper with the cash leaving someone with a mess to clear up.

        I trust that BDO will do the financial forensics and that we’ll get to see what went on, hopefully in reports to and from the Courts, and hopefully via evidence taken under oath.

  7. JimBhoy

    Well my 16 and 10 yr old girls will have season tickets at Celtic for the fothcoming season, unfortunately me and my son are committed to his own football growth, playing Saturday mornings but i feel comfortable allowing my girls to go accompanied by some other Local Celtic Bhoys and Ghirls…
    The reason for this is not just the newco thing but i feel a swell of fan togetherness sweeping over Scottish football… Financial armageddon according to the Hampden denizens, nothing like making a positive outta change…

  8. ecojon

    @JimBhoy – I have always supported the growth of women and then family support at Parkhead. It changed the club for the better IMHO despite the prophets of doom moaning about the effect on the singing ‘quaity’ driving ‘real’ supporters away. I used to say don’t shut the door on the way out as there are plenty of replacements waiting in the wings to join the choir in Paradise.

    No club should ever get that big or develop such a threatening atmosphere that it ceases to be family-friendly. In fact Celtic families should be at the heart of the club’s whole raison d’etre and it’s great as I grow older to see all the excitement of the younger – boys and girls – another sign of the changing times in society. And heaven forbid, women playing football professionally – where will it all end? The answer is quite simple as long as we reflect the changing values and expectations of a modern society: NEVER!

    • JimBhoy

      Me and my bhoy give up our season ticket after Mowbray and he and I started playing/coaching respectively. We now play Saturday mornings and it normally involves travel. With that and I expect more Celtic games to be televised with the demise of Rangers so we will probably see a lot of early Saturday KOs this season and i wouldnt make those… My 16 yr old lass did go to a few games last season and she is in love with the club, team, atmosphere and I think Kayal also.. Cost me £180 on three new hoops tops (numbers and names) last weekend.
      Like a lot of the Celtic family we are a mixed religion mob so my family support their team for all the right reasons, in fact so mixed my sisters’ boys share a room one at the celtic end and one at the ibrox team side..

  9. JimBhoy

    How desperate must Ian Black be…… I always thought he was a decent player but every other week he is being linked to an ibrox move and now even in the lowest tier of Scottish football. Surely he would be better off with a move to England.. I guess no Scottish option open to him because of the chaos that is Scottish football, much of which has been protracted by the lack of actions of George, Zippy and Bungle.. Doesn’t the new Ibrox team have a moratorium on inbound transfers, isn’t it mooted that this might be with them for a season at least… Have a bit more about you son, a bit more ambition and go restart somewhere that will allow you to show what you really have and hopefully we see you flourish into a very good player…
    The volatilty of the ibrox club should not be too appealing IMO and like the blog above I believe that the academy players at the Ibrox club may be thrown on the scrap heap which shows the short termism that Green has (albeit he is in it for the long haul apparently). They should be using these academy boys to subsidise the first team as they can only have 22 players over 21 in the SFL and they may be there 3 or 4 seasons.

    • ecojon

      Was Black not the guy that crippled Jelavic? Wonder how that will sit with the Bears?

      I hear all their talk about ‘blooding’ young players in SFL3 and making men of them.

      Sadly there are many in the league who will certainly ‘blood’ the youngsters and turn them into cripples. I genuinely feel sorry for the youngsters who see this as a big opportunity – experience tells me it will end in tears for many of them and if Rangers hire Black then the kids will just become retaliation fodder for the naughties Black will get up to.

      What a bloody mess with the emphasis on bloody!

  10. mick

    jim it must be a sore 1 for small creditors being shafted then seeing the soccer clubs paid ,what will the bdo make of this ,also why would they want newco to answer to the debts of the teams that done deals but no mention of creditors or the taxman

  11. ecojon

    http://leggoland2.blogspot.co.uk/2012/07/shadowy-blue-pitch-holdings-stop.html

    Leggo’s Blog is well worth reading as it says the reason the SFA are digging their heels in with Green is because he is refusing to fess-up as to who Blue Pitch Holdings are.

    And Green has taken off to Uefa today and given the SFA a dizzy :).

    If Leggo is right and I have no reason to fault his contacts and reasoning then we really might be getting to the heart of the matter at long last. For those who missed my Guest Blog on Blue Pitch Holdings and others I really can recommend it as worth reading.

    • alross

      Ecojon
      Presume you havt managed to find them yet ? If the SFA are saying we need to know and CG is saying not willing to tell you then I think its a deal breaker. SFA cannot afford not to get the information as the fallout would be , I dont have a word to describe it !
      I’m sitting here thinking of the various offshore jurisdictions and factoring in your BVI thought. Given HSBC’s publicised debacle yesterday would Cayman be a possibility or here’s one from left field the greatest creator of companies in the world Delaware in the good old US of A ? its not offshore but its as good as in the secrecy stakes.

  12. mick

    is related to the players contracts maybe they are trying to creat a plan so newco get compensation for the 1s that walked away

    • ecojon

      fair point Mick – maybe Green thinks he can persuade Uefa/Fifa not to grant the international transfers. But he’s onto plums as the matter is legally quite clear as far as I remember and flows on from the original Bosman Judgement onto case law stipulating a player’s Human Rights to be able to ply his trade and not have registration of a transfer blocked.

      Anyone attempting to prevent it will be caught up in horrendously expensive Euro court cases. Won’t bother Green as he will be away with bulging saddlebags before that date but the SFA could end up being hammered financially.

      • mick

        if tony higgins says its ok then its ok plus maggie gribbon plus frazer wishart and paul prominant celeb lawyer what more do they want its not nice messing with there careers out of spite if they should be made to cover the players legal costs at end of it to deter futher chairmens doing same

  13. mick

    blue chip holdings “who are these people the fans have a right to know”why would ally want to out the hampden 3 but not the owners ?????

  14. mick

    ecojon this could be the world excluisive of the year ,the sun will be hunting you down to do a weekly story after it ,that was mentioned today charlie has sent some1 with the info the fit and proper person thing he mentioned is still incomplete ?????

    • ecojon

      Mick – wouldn’t wipe my arse with the sun and have never bought one in my life and never read one till I could do it for free online.

      Sadly I must confess that my Catholic Pop used to buy the News of the Screws when it was on the church proscribed list. My granny was unable to stop him despite visits from the priest who hadn’t fought in WWI, like my Pop, so he was just ignored and met with total silence.

      However granny was fiesty and showed her displeasure by covering the bathroon floor every week with the News of the Screws and declaring that was the only fit place for it. How I love my granny – long gone bless her soul – she allowed me to enter a completely new world and boy did my reading ability come on in leaps and bounds every lunchtime when I went to her house for grub and then after school when I waited for my mum to finish work.

      Granny used to get quite worried about the length of time I was spending in the toilet 🙂

      Ah, memories of a different age which has long since disappeared and not all for the better. I often wonder whether my wise old granny was well aware of my ‘transgressions’ and gave them a Nelson’s Eye

  15. mick

    are sevco soon to be the soccer version of the news of the world??

  16. mick

    since you mentioned bluechip its coming in to the spot light rapidly over the last 24hrs

  17. mick

    ave stopped but the msm msotly since the story broke about oldco a think the whole country sees the msm as pointless tree killing my wife is broadsheet but likes the stars and women bits in it other thsan that its not missed

  18. mick

    @mcnally the mirror ,hes been tweeting about it since you done the story at weekend the media are taken the storys from here week in week out lol

  19. mick

    only because it factual secondary data lol

  20. beanos

    interesting article.
    A listing for Sevco does seem to be a long shot. Its hard to see the fans being convinced to buy shares when Green can’t persuade them to buy season tickets.
    ———————————————————————

    Jamie
    July 17, 2012 at 9:29 am
    I will put money on it the AIM vehicle to list Rangers will be Worthington Group, owned mostly indirectly by Craig Whyte. Another opportunity for him to cash out, the same company that gambled its entire pension fund in Rangers which is currently frozen with Collyer Bristow dispute.

    ——————————————————————–

    Whyte’s company only ones 7.5% of Worthington. I doubt this is a viable route. As far as I remember, claims to the pension fund’s money which was sitting in the now infamous Collyer Bristow account have been withdrawn so they should be getting that back.

    I would expect that the trustees of the Jerome Group pension scheme are going to have some awkward questions from some authority coming their way. Definite failure in their duty as trustees.

    The

  21. mick

    a personally think its more shocking than whyte ????

  22. mick

    well need to wait till green comes back from uefa then he can tell us??

  23. mick

    thats the bbc running it “fit and proper guidelines”

  24. John

    Paul, Sevco have applied to get the RFC plc (iA) SFA membership transferred across to get around the “3 year accounts” issue. But does/did RFC plc (iA) have 3 years of accounts?

    Presumably the SFA require it on a rolling basis each year. And as you mention they never submitted audited accounts to PLUS exchange (apparently because the auditor wouldn’t sign off on Going Concern). Did they eventually submit accounts to the SFA? And did they do so by whatever deadline the SFA set for the new season?

  25. JimBhoy

    You got to admire the gall of Green though, he hasn’t got a team with a football registration yet he is off to speak to UEFA!! OR is this more of the arrogance we have seen for many years from those who run the Ibrox club..! I wonder how this sits with Reagan? I would have assumed he would have run various option by the ruling bodies before putting things to Green. Then again maybe we have another power blinded man involved. Way too many of them working for Scottish Football.

  26. mick

    sfa want more info on the fit and proper person thingimyjig lolso its still no licence for them .

  27. Pingback: WILL THE HOLY GRAIL OF A RANGERS SHARE FLOTATION TURN INTO A GREEN PRUNE? by Ecojon | Random Thoughts Re Scots Law by Paul McConville

  28. Pingback: Green prepares to fly with Rangers Share Flotation but will it soar or crash and burn? – by Ecojon | Random Thoughts Re Scots Law by Paul McConville

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