Bill McMurdo, son of the most famous football agent in Scotland, and a distinguished, popular and prolific blogger on matters Rangers related, is full of positive news today for his favourite team.
According to Bill, who is generally on the button when it comes to all things Ibrox-related:-
“It is my understanding that institutional investor interest for the Rangers IPO has far exceeded club expectations. In fact, Rangers are anticipating that the share issue will be over-subscribed, a positive thing in today’s gloomy economy.”
Fantastic stuff! That must mean that even more than the twenty fund managers who were clamouring to meet Mr Green and to invest their clients’ funds in Rangers shares are beating down the door of the Ibrox Chairman. As Mr McMurdo points out, to do this in the run-up to Christmas, in the midst of dire economic circumstances generally, marks out Mr Green and his talented team of financial wizards as people who might usefully be asked to tell John Swinney or George Osborne how to kick-start business in Scotland and the UK!
It is good of Mr McMurdo too to pass on the expectation of Rangers that the share issue will be over-subscribed, as this will alert investors to the need to get their shares at the time of the IPO, when Rangers will benefit from the money, rather than waiting for the market to be set after the IPO.
As Mr Green is confident that the share value will soar, and an over-subscribed share issue might well lead to that, a prudent buyer would want to get their hands on the shares before the price rises, and of course, once the shares are traded on the market, it is in fact the owner of the shares, and not Rangers, who will benefit from the price.
It is too an altruistic step by Mr Green to release the shares to the public at a stage when the price will be at its lowest. After all, once the value has doubled, and even more so when the value increases three or four-fold, as Mr Green has been reported as anticipating, it might make more sense, purely on a business footing for Rangers, to release the shares then. After all, the money is not needed just now, as Mr Green has told us that the season ticket income rests untouched in the team’s bank account.
He deserves praise for his efforts to democratise the shareholding of Rangers, as he has always pledged to do, by allowing the fans to buy the shares before they are priced out of the market.
Mr McMurdo is also kind enough to pass on the news that:-
“Rangers are presently having to take action on two fronts – the circulating of fake documents designed to destabilise the club over the impending share issue and a genuine leak from within Ibrox.”
His comments suggest that the focus of Rangers has therefore moved on since last week.
Sadly Mr McMurdo does not tell us what these “fake documents designed to destabilise the share issue” are. Should there be fake documents created for that purpose then clearly Rangers will be passing the matter to the police. Such conduct ought not to be condoned.
As far as a genuine leak is concerned, Mr Green is clearly right to ensure that only information from official sources regarding the share issue comes out, to avoid unhelpful confusion about the details. As various Rangers related blogs, message boards and twitterers reported last week, Rangers were “fighting back” against its enemies. Quite rightly the “enemy within” will face the same action and scrutiny.
And Mr McMurdo seems to be privy to the plans of Charles Green too. As he says:-
“Charles Green is determined that nothing will derail the process of moving the club forward and building a warchest of substantial funds for the future. My information is that he and his consortium are working like Trojans toward this end.”
I wonder if Mr McMurdo might regret the use of the word “warchest” as this might bring back unhappy memories for Rangers fans.
After all, the unlamented Craig Whyte appeared on the scene back in November 2010, with his arrival greeted by the Daily Record under the headline:-
“Rangers set for £25m transfer warchest from prospective new owner Craig Whyte if takeover deal goes through”
James Traynor’s article goes on to say:-
“CRAIG Whyte plans to pump at least £25million into Rangers for new players over the first five years of his ownership if his bid to buy the club succeeds. And if Whyte pushes through his £32m bid for control after his due diligence period has been completed he plans to hand Rangers’ manager a minimum of £5m at the start of each season. But there could be more millions available for players and wages depending on whether or not Rangers are generating cash from European competition.”
Sadly these aims turned out to be unto dust.
However that is not the only recent Rangers reference to a warchest.
On 15th May 2012, the Express headlined their story as follows:-
GREEN ALREADY HAS A WAR-CHEST FOR ALLY
“CHARLES GREEN’S consortium will hand Ally McCoist a multi-million pound war chest this summer – if the Scottish Football Association can be persuaded to drop their transfer embargo.
Express Sport spoke to one of Green’s backers, former Sheffield United owner Mike McDonald, and he admitted that their group have serious wealth that has been put together from the medical worlds of Kuwait, Abu Dhabi and Singapore alongside major investment from European and UK property developers.
Top football agent Paul Stretford will also have a major involvement in the football operation, helping the club to buy and sell players.
McDonald admitted that once Green’s consortium complete their takeover and sort out the debts they are willing to plough significant amounts into the team to help McCoist’s team to become big players in Scotland and the Champions League.
That investment, however, may have to be delayed unless Wednesday’s SFA appeal against their one-year transfer ban is overturned.
“It is pointless to get involved if we weren’t going to invest in the playing side right away,” McDonald stated.
“We see that as a major priority, although, obviously, that is dependent on the Scottish Football Association’s transfer embargo. We know that Ally McCoist needs to strengthen his team and also to keep some of the players he already has at the club.
“We have got all our funding together for every aspect of the take over and now it is just a case of sorting it out. Charles has had a good conversation with Ally McCoist and we want him to carry on managing the team. Charles has brought significant funds to the table because we know we need hundreds of millions to be successful at this level.”
Mr Burns’ report sadly has turned out to be inaccurate in that few of the people named in it are actually involved with Rangers now.
Undoubtedly this report today by Mr McMurdo will be spot on, as his sources seem generally to be impeccable, and the war chest will soon be stuffed to overflowing with riches to take Rangers back to the top of Scottish and European football, where their fans know they deserve to be.
At that stage Rangers will then be able to display traditional Rangers values, as described by Mr McMurdo:-
“Respect and honour are traditional Rangers values. Rangers will show respect and honour to all who merit it. As for everyone else, they will see another traditional Rangers value on display:
The will to win and crush all opposition.”
Posted by Paul McConville
NB Please note that any discussion of shares, share issues, share prices etc is not intended to be formal financial advice. If you are considering this or any other investment, then listen to a financial adviser or stockbroker, and indeed consulting Paul the Octopus would be more sensible than taking advice from this Paul! Shares can go up in value and can also, although clearly not in this case, go down in value too.
No liability is accepted should anyone be bonkers enough to base their share buying strategy on anything I say.