Have Rangers Paid Hearts for Lee Wallace? Charles Green and Chick Young Seem to Disagree

Last Saturday Charles Green spoke to Rangers fans at Ibrox for their match against Alloa. I wrote about what he was recorded as saying here. It would appear that not all that Mr Green was noted as saying was 100% accurate. I am sure the apparent discrepancies noted below were entirely as a result of oversight or error, and not a deliberate clouding of the issues or declarations of bravado to appeal to his audience.

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There are two specific paragraphs I want to mention initially, which are reproduced exactly as they were written by the original poster on a Rangers message board.

3 – All footballing debt have been paid apart from the 31k to Dundee Utd which he has a letter confirming would be paid by the SPL.

6 – Rangers owed hearts the remainder of the Lee Wallace fee, Hearts were so desperate for the money eventually offering a 100k discount if we paid the cash two weeks ago. Thats why the couldn’t pay the wages.

My interpretation of that was as follows:-

  • Hearts have been paid for Lee Wallace.
  • Mr Green negotiated a discount for prompt payment.

Now though it appears that, at least according to Chick Young on the BBC, neither of those statements by Mr Green was accurate.

Mr Young writes:-

Hearts have rejected an offer from Rangers to renegotiate the terms of payment for defender Lee Wallace. With Hearts under the threat of a winding-up order over a tax bill of almost £450,000, Rangers said they would hand over £500,000 now.

But Rangers wanted to close the deal with that gesture and Hearts owner Vladimir Romanov has dismissed it. Rangers had said they would pay Hearts £300,000 in January and settle the bill in July with a final payment of £500,000.

That suggests that Mr Green was wrong to say there was no more football debt.

At first I also thought that the rejection of the deal suggests that Hearts are confident that they will be able to stave off the winding up order sought by HMRC. What use would it be to Hearts for its liquidator to receive £800,000 when settling for £500,000 now would allow HMRC to be paid?

The reason why the calculation is not that simple comes though when you check the debt figures and the security situation.

Whilst HMRC might be due as much as £4 million from Hearts, depending on the tax tribunal set for this month, the interest and penalties on that sum, and the remaining tax debt due by the Gorgie Road team, this is dwarfed by the debt owing by Hearts to UBIG. Mr Romanov’s bank is a creditor for over £22 million.

In addition, UBIG hold a security over the ground, and a floating charge over the remainder of Hearts assets.

If Hearts fall into liquidation, then once the liquidator is paid, the remaining cash and assets (after statutory payments to redundant staff) will go to UBIG.

So there are at least three possibilities.

  • Hearts are confident that they can stave off winding-up and accepting a full settlement now simply means they would need to raise an additional £300,000 by the summer anyway.
  • Hearts are not confident that they can survive, even with the Wallace cash, and its owners would rather see the money in their hands than paid over to HMRC.
  • Mr Romanov is not prepared to accept a deal whereby Rangers get a 37.5% discount, even at the risk to his club.

It also raises the question about why Mr Green said that the only dent was to Dundee United, or why Rangers issued a statement saying that there was no “external debt”.

And before anyone says that the money due to Hearts is not a “debt” because it is not yet due, then that argument does not work.

I have a mortgage. I pay my monthly instalments as they fall due. The mortgage company cannot ask me to repay the balance due. I still owe that money to the mortgage company. It is a debt.

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If Mr Green has been inaccurate regarding points 3 and 6 as noted above, I wonder how he will do with points 8 and 9? Remember, this was what he was saying to fans on Saturday 3rd November.

8 – Share issue prospectus to be made public in a 21 page document end of this coming week or just after.

9 – Over 20 pension fund groups have an interest in the share issue. Corporate roadshow to start this week re share issue Glasgow, Edinburgh and then London for seven days.

The prospectus is not out yet, so it must be assumed to be coming tomorrow or Tuesday?

Does anyone know where the corporate roadshow took place this week? Mr Green is not a man for hiding his light under a bushel. One would have expected him to be making, quite rightly, a big thing of the start of the floatation process, as he meets with the twenty or more pension fund managers clamouring to buy shares with the anticipated 100% return.

What could be the reason for his uncharacteristic reticence?

Could it be, heaven forbid, that the prospectus is not as imminent as he said, and that the corporate roadshows have not started? Do those pronouncements fall into the same category as the statement in June that all questions would be answered “within seven days”? There are still lots of questions, and we are now in mid-November.

Posted by Paul McConville

 

 

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19 Comments

Filed under Charles Green, Hearts, Rangers

19 responses to “Have Rangers Paid Hearts for Lee Wallace? Charles Green and Chick Young Seem to Disagree

  1. JimBhoy

    Chico has been very quiet of late, however Ally has taken over the spin, now known as the sorcerer’s apprentice… 🙂 Walter to rangers… Walter for Scotland….. Old timers and kids gelling (to beat 4th div opposition)… Sympathy with hearts etc…Ad nauseum!

    The weeks to come should be fun… TD’s plz…!! 🙂

    • Vincent Leonard

      timtim, thanks for the link to another fascinating revelation in the saga. I can only say it’s absolutely stunning that these shenanigans can go unbridled by the ‘authorities’ – a term I totally abhor as it infers credibility on bureaucratic mindless morons. The “internet bampots” are increasingly the ONLY form of media taking this story seriously and looking for justice. Let’s not stop until every stone is turned over and its content revealed. NB is there any MSM prepared to REALLY go here ?
      Vinnie.

  2. Dhougal

    Theme to the Pink Panther again Paul …….Brilliant !!

  3. So Sevco can afford to pay half a million right now? Why not the just pay the full amount then – or that minus £100,00, as it has been suggested that Hearts have offered? After all, they’re expecting countless millions to flood in soon, and it would properly wipe the slate clean of football debts so the club can carry on with its grand plans. Also, half a million is bound to be a big amount to pay in July.
    Wonder what the problem is? Maybe Mr Green can let us know, given his stated commitment to transparency?

  4. Mick

    Great read Paul there’s breaking news sevco have asked Alloa for a six week grace period for monies due a think greens skint and telling lie after lie to cover it ,this makes them in breach of the 5way agreement and there licence should be revoked due to lack of finance greens a liar for ticketus it’s only money out not in all endorsed via the sfa off course

  5. easyJambo

    I have a different interpretation of “6”. My reading of it was that Hearts offered the £100K discount, but that Chuckles rejected the offer.

    I’m not clear if you meant that interest and penalties on that sum referred to the £4M, or the amount billed to Hearts which is the subject of the FTT, i.e. £1.75M.

    The £22M debt to UBIG is a historical figure from June 2011 and is the one used in the share offer document. Hearts continued to lose money last season and Sergejus Fedotovas stated that the current debt to UBIG was £24M in response to an STV interviewer on Friday.

  6. Pensionerbhoy

    Paul

    Without doubt, I would have serious health problems were I to consume the pinches of salt cast to the wind by Lord Charles. Could his present life in the bunker indicate the final days of the Third Division Reich? If Herr Green had a tiny moustache on his upper lip just below his hooter, I would have real worries about cloning. Comparisons may not be conclusive but they are a bit concerning; great rhetoric by an able orator; deception of the masses; a magnetic personality attracting near adoration; egocentricity and narcissistic self importance; incitement to conflict; potential defeat camouflaged by the pretence of absolute victory; use of the aged and very young in a final throw of the dice; shelter and seclusion under fire; finally, total silence. If everything goes bang, I will put much more faith in potents.
    Have I raised hairs at the back of any necks? :>))

    • prohibby

      Interesting that you bring up the subject of cloning, Pensionerbhoy as a product of cloning is currenlty giving much hope to its followers in Div. 3. I find myself humming Hello Dolly as I think of the original clone. Sadly, she ain’t glowin and she aint gowin strong no more. There’s a message in there, somewhere!

  7. ian lewis

    If it’s true that Hearts have turned down the offer of half a million quid then Green has done Hearts fans a favour because he’s shown that Hearts are NOT desperate for the money-nobody who is desperate turns down the chance of cash.Romanov will pay up because a winding up would take control of Hearts assets away from him and he needs them so that UBIG can get some of its money back in due course.

  8. walter is now back into the fold. i’m sure i read somewhere that the position does not attract a wage as such…in other words – chuckie has managed to get walter to work for – SFA

    … or, has he been promised some shares at a later date – a la mccoist ?

  9. great blog paul,very informative,yi’ could nae make this into a christmas panto at the KELVIN HALL could yi, maybe get peter mullans tae chip in a line or two, chico verdant and his trusty ‘n’ true sidekick alestaro del coisto are absolutely priceless they are definitely the ibrox equivalent of rodders and dellboy,there’s nae doot in ma’ mind that when the chico fulla giz in the woods the fox comes oot,this week should be somewhat interesting @ catle greyskull

  10. Alan aitken

    No more bad press for the newco watty smith is back!!!!

  11. Lindsey Scott

    Obsessed

  12. Jimmytwolegs

    Just found this and wondered what Paul would make of it. Rangers share issue power point presentation.

    https://skydrive.live.com/view.aspx?resid=7241D12A18C19C59!387&app=PowerPoint

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