The spin will be that the issue was a success. I would say that green and co will be very disappointed, £5m shortfall is very significant.
The fans for all their clamour, for all the club PR hype and the slightly heavy legal threats to, off message, commentators have only taken half of their allocation.
I guess it is understandable given that the fans have paid out for STs. Mr Green and his board weren’t to know that were they ?
These are tough economic times, typical that recessions happen just 4 years before your share issue. Such bad luck !
The Prospectus didn’t arrive on time to a lot of potential Investors. Who could have foreseen postal delays just before Christmas, who could have allowed a bit more time?
Christmas is an expensive time of the year. I for one, think that Christmas should be on the same date every year to stop business men from being caught out in this way.
HMRC caused a delay by voting against the CVA within the allowed time after being asked for decision. The plot weakens.
Given the above the Rangers Directors are either stupid or needed to grab cash when they could.
The Rangers fans are passionate, vociferous but maybe a wee bit frugal and cash strapped.
The one group I can’t understand are the institutional Investors. These are investment professionals and should be immune to bullshit, having heard loads of it and also being proficient bullshitters themselves.
These professionals are presented with an opportunity to invest in a SCOTTISH FOOTBALL CLUB, not a top tier club, but – a Fourth tier club. Now they are a new club so can’t qualify for lucrative Euro competitions until they have 3 years Accounts, that will be something like 3 years, assuming that they qualify of course.
Now this ambitious new start is paying top of top division wages and bonuses to it’s players staff and Directors. Don’t sign up yet there is more.
A look at the club’s projected results tell you; nothing because there are no projected results. the first 3 months accounts show a trading loss with a massive Profit after tax. Have they found how to turn Base metals to GOLD ?
NO: but they have discovered Negative Goodwill, £20m of it.
Now Negative Goodwill is fantastic, it has no substance but it bulks up Asset values and profit. All you need is to create Group Accounts and with some inventiveness you have Negative Goodwill and profits. One small downside is that it seems to my (non legal) mind to be an admission of Gratuitous Alienation, but why ruin a good theory.
Anyway 3 months accounts tell you not much more than nothing. these people should understand the accounting implications and have expert advice where there is any doubt.
I am not up on what these Institutional Investors do but could they be acting on behalf of clients and not investing on their own account. That’s a genuine question because I really can’t explain it; football clubs don’t make money so why put investment funds that have been entrusted to you in such an investment, unless coming to Christmas they have a Turkey quota .
Posted by Den