Charles Green, Lenders’ Options, Craig Whyte and Lessons For Rangers From Sheffield United

One of the issues which has exercised minds regarding the Rangers asset purchase by the consortium of millionaires led by Mr Green (at least that was what the media would have us believe existed) was where the purchase price of £5.5 million came from.

It seems ever more likely that that, together with funds to allow Sevco Scotland Ltd to run the club from a standing start, most, if not all, of these funds came initially in the form of loans.

I understand that these loans were structured in such a way as to be due for repayment with a short term, rather than a long term. By the nature of such loan funding, akin to a “pay day loan”, the loan was high interest.

Therefore the departure of players under TUPE who refused to join newco was almost certainly a serious problem as Mr Green was undoubtedly banking on something coming from a sale of some of the stars of the last season.

Such loans are regularly provided with an option for the lender – either repayment can be taken in cash, or half in cash and half in shares (by way of a conversion from cash to equity). It is thought likely that such an arrangement would have been used here.

The advantage of this is that it gives a lender who provides a “high risk/high reward” loan with the chance to benefit from shares and increasing value, if circumstances suggest that is the better option.

As well as the loan funds used to get the project off the ground, institutional investors were attracted by the possibility of using the Enterprise Investment Scheme, which provides tax breaks for those investing in what HMRC describes as “smaller higher-risk trading companies”.

This seems to tie in with the speculation about the Orlit Enterprises dispute with Rangers.

I make this point as it seems, from reviewing the information publicly available, that Orlit is also a two stage debt.

If we think back to May 2012, readers will recall that “to protect the history” a CVA was Mr Green’s preferred route, suggesting that failure of a CVA would “end” the history. I will return to the history debate in a later post.

Mr Green told the world that he had reached an agreement with Mr Whyte for his shares. He needed those shares in a CVA deal where there was not to be an asset purchase by a newco.

The point is that at the time of this transaction Mr Green was trying for the CVA route. To achieve that goal he needed the 85% of the shares held by Mr Whyte’s company.

In light of what we know about Mr Whyte and his business dealings, is it likely that he agreed, when on the point of being sued by various parties, including Ticketus for £25 million, he would have handed over shares for only £1 (or as Mr Green said, having told the press he gave Mr Whyte a 100% profit) £2?

There is speculation that, in fact, to avoid Mr Green having to find more money, over and above the £8.5 million to be lent by his consortium to oldco to pay for the CVA, the deal with Mr Whyte would have involved Mr Whyte selling his shares for equity in either form of the “new” Rangers.

This understandable and prudent desire not to have to spend too much over the £8.5 million to fund the CVA suggests why, at that stage, debt might well have been incurred on the “two stage basis”. If funding was secured on that basis, then surely it would be reasonable to pay the people who were finding the funders on that basis too?

Mr Green’s comments about Mr Whyte on his recent Australia visit serve as circumstantial evidence that Mr Whyte still thinks he is due something. Mr Green was vigorous when Down Under in denying any possibility of him being paid, but, unless based on some agreement, or else what Mr Whyte thought was an agreement, how can he think he is entitled to anything from newco Rangers? Maybe he thinks he is due something from Mr Green?

(I should say that, despite what some critics have said on here and elsewhere, it is not a matter of believing Mr Whyte 100% when it suits. His history, as noted in various places, including Glasgow Sheriff Court and indeed in this blog, shows that he has not been 100% truthful on every single occasion he has made public statements. I think however that, as a major player in the story, even though from a chapter or two back, there is some value in CONSIDERING what he has to say.)

Rangers’ interim results will be very interesting when revealed to the City. Will they show the “cash burn rate” as being consistent with the listings projections the listing figures (as the listing contained no “projections”)?

We have heard about the money to be spent on players and capital projects and building works. Can all this be funded?

Mr Green’s time at Sheffield United was long ago. I have no doubt that Mr Green learned many lessons from his previous involvement in lower league football. You can read about some of them here.

Whilst at Sheffield, players were signed and paid uneconomic wages. The football team (or the company which owned the collection of rights and assets which made up the football team) effectively ran out of cash. This led to player sales, against the wishes allegedly of the manager, and most definitely of the fans.

As I say, I am sure that Mr Green has taken all of the lessons from his adverse experiences at Sheffield, and combined them with his successes there, to enable him to continue his plan to win Rangers the Champions League.

And clearly, having paid £5.5 million for the assets in June 2012, and having told the Aussie fans recently that the company is now worth £60m million, and will be worth £500 million in five years, Mr Green remains my choice for Businessman of the Year – not just for 2012, but for the next five years as well!


Posted by Paul “Barnum” McConville





Filed under Charles Green, Rangers

65 responses to “Charles Green, Lenders’ Options, Craig Whyte and Lessons For Rangers From Sheffield United

  1. Coyote Briggs

    Five years, surely it won’t take the Teddy Bears that long to figure out CG’s snake oil has no magic properties?

  2. Extremely interesting piece, no doubt to be filed under “hysterical” in certain parts of Glasgow. I note that your tack changes between paras 2 and 3 from speculation to “I understand…” Are you basing this understanding on recent information, or on Green’s offer to fund the CVA by an £8.5m loan to the ‘old’ Rangers?
    You’ll have to excuse me if that’s not a greatly-informed question, but I’m playing catch up on the RFC saga from leafy London suburbia and I’m still getting my head round Jim “Rangers FC as we know them are dead” Traynor’s Orlit magnum opus.

  3. Old Cartha Bhoy

    We hear nothing in the press from the Sevco fans who bought shares/made a loan on how they believe their investment is progressing. The notion that £400k is being sought from Far East interests to pull money people together is breathtaking!

    • Ah, but did the Newco not ‘settle’ it’s, sorry Oldco’s debt with Rapid Vienna yesterday? Albeit, seven months after all footballing debts were to be paid?

      Surely a mere £400k is nothing to a ‘holding company’ whose share issue amassed £22m?

    • ecojon

      @Old Cartha Bhoy

      Darkside websites were full of delighted Rangers shareholders – who had bought-in at 70p a share – commenting favourably as the price climbed to a peak of 95p at the end of December.

      Since then the price has been slowly but remorselessly falling and today is 79p.

  4. riddrie

    But will Mr Green still be at Ibrox in five years?

    • ecojon


      Well he has recently publicly announced he is staying for 15 years 🙂

      • robertg

        Does the Bar-L count as Ibrox? I thought it was more Royston……

        If much of this comes to pass I suspect that, if anyone wants to present Chuckles with anything in 5 years time, they’ll have to track him down to the cave in Afghanistan that Bin Laden was holed up in before his misjudged move to Pakistan.

        The balance sheet in the interim results will make an interesting read.

      • @eco

        Behind the times as usual (me, not you!) – hasn’t M Vert threatened to “walk away” over his spat with Malcolm Murray? Or has that been sorted already?

    • Raymilland

      Will Ibrox still be Ibrox in 5 Years time?

      With regard to the other major asset; that long awaited roof repair must have involved the use of profile sheeting made of platinum. Any how, the value in assets has since gone through the roof, or perhaps a more realistic understanding is that the assets were seriously undervalued to begin with?

      Another question;
      Who funded the funder; who funded the funder; who funded the purchaser of the assets?

      Funderbolt and lightning very very frightening me

      Gallileo figaro magnifico!

      • Raymilland

        Could be onto something here…..
        “Galileo figuro Magnifico” – translated as “Magnify the Galilean’s image”. “Galileo”, repeated five times, translated from Latin as “Jesus Christ” – that was His name in the ancient Rome.

        In other words, the only way to get out of the demonic nightmare is to magnify Jesus Christ and ask Him for help. But the boy can’t believe that God is concerned about him, and refuses the salvation (“nobody loves me”).

        Along the Catholic and Muslim prayers, the heavenly hosts are trying to save the boy, but they lose – because he didn’t want to help himself, and, as we know, nobody can be saved by force.
        Googled the above; I think Freddie may have been a prophet; especially the ‘naebody likes us’ reference.

    • JimBhoy

      @Riddrie maybe the question should be “Will Mr Green be allowed at Ibrox in 5 years”?

    • @riddrie question is will he still be there in 5 months, my money is on the MD in the battle of the boardroom and chucky boy walking away

  5. Mark Falconer

    I’m interested in where the figure of £5.5 million to buy the Oldco assets came from. The assets were clearly worth many more millions, not least because Green has since values the club at a much higher rate with those assets having suddenly appreciated a great deal of valu. Was this sale not one of the biggest swindles of all? Especially with so many creditors waiting in the wings to receive money from the sale of any assets.

  6. ecojon

    Talking of public announcements by chuckles:

    Wales to reject Rangers’ offer to train at Murray Park prior to Scotland World Cup qualifier

    ‘The Welsh Football Association revealed that it has not received an offer from Rangers chief executive Charles Green to utilise their Murray Park complex in order to aid the preparations for Chris Coleman and his squad prior to their World Cup qualifying tie against Scotland at Hampden on March 22’.

    Now there’s a surprise 🙂

    • allyjambo

      Ecojon Obviously Mr Green feels a greater attachment to his own country’s neighbours to the west than he does to their neighbours to the north. Why does he see providing assistance to ‘foreign’ sides as good practice, while at the same time encouraging actions to hurt Scottish teams ambitions/finance? It hardly seems appropriate for someone who intends remaining in Scottish football for any length of time to alienate the people he will hope to influence in the coming years, even if some of his ‘offers of assistance’ do prove to be no more than lies and bluster or backfiring PR spin. I wonder why no one from the MSM asks him why he could possibly think offering Scotland’s opponents help to beat them to be a proper thing to do, or even claim to have done?

      • robertg

        I doubt it is being offered for free.

        Some might call it “sweating the assets”. Others “scratching about for change for the meter”.

        Where will Sevco’s promising youngsters train when everybody else is using the training park? Off to Gullane for a run maybe?

      • willy wonka

        Maybe Green owned Celtic Park when Argentina trained there ?

      • ecojon


        I think Chuckles may well be trying to gain favour with the Welsh to vote Rangers into England.

        • allyjambo

          I think the Welsh FA have shown that they have a bit more integrity than Juventus by making it known that they wouldn’t be interested in accepting such an offer, clearly made with a ‘get it up you’ motivation towards those TRFC see as their tormentors (in this instance the SFA). While I’m sure the SFA would only be too willing to find suitable training facilities for any opponents, if asked, it is surely very unusual for a ‘home’ club to offer this type of assistance to a team hell-bent on knocking said club’s country out of the World Cup! I felt it was a bit cheeky to offer Juventus the use of their training facility, but at least they were playing one of TRFC’s rivals, and one they, in their twisted logic, see as a cause of their troubles; but to offer this to Wales, even though they might be in dire need of payments (and are they so desperate for the relatively small rent for a couple of days of training facilities…), it’s still incredibly unpatriotic, to say the least, and just shows their commitment to Scottish football and it’s future!

          If, on the other hand, the SFA had approached TRFC to request they offer the facility to Wales, then it would have been perfectly correct to show them this hospitality, and to profit from a possible Scotland loss. One other thing: all Rangers supporters that I have known supported Scotland, despite the antics of their more rabid elements, I wonder how they view this ‘offer’ to our opponents. Do they feel a bit disappointed in their new team, or do they see it as an example of ‘getting our own back on those who haven’t shown us the respect we deserve?’

          • lets face it , the facilities are not being used at all just now based on current performance levels from the jokers who claim to be top class footballers, so better they be used by senior professionals worthy of such illustrious facilities then see them go to ruin and waste……

            • tykebhoy

              plus it will be used by 2 internationals at Celtic for just one country. thats another world record for the tribute actof current internationals plying their trade in Scotland using the facilities

  7. It seems that the Sevconians have got Mr Craig Whyte all wrong! It would appear that he is not a hard nosed callous money grabber after all, but really, just one helluva nice guy! With such love for his club he deserves not only a sir-hood, but a sainthood also. Despite Ticketus pursuing him personally for such a vast sum, He selflessly relinquished his only bargaining chip, to give the club he loves, its optimum chance of survival. What a guy!!!! In this modern age, such an act, must surely warm even the coldest of hearts, and revive any flagging faiths in the milk of human kindness.

  8. arb urns

    ‘loans’…. heard the one about a company director who lobbed in £200k for a few months appears to have been repaid by £178k cash and £22k in shares.
    he now has c2.2m shares in the company, a c 7k a week salary (possibly back dated for 6 months) + bonus and exes.

    oh…. and he charged an ‘arrangement fee’ of £50k to the company for the privilige.

    read it somewhere in an IPO recently.

    Oh and tell Adam…. Rangers are a qualifying VCT while on the subject of tax advantage.

    Drove past the Ed House yesterday … cam seriously needs to get the cleaning materials onto it…. Whats the Purchase Price again ?…… White Elephant seen at the back of Ibrox by day tripper!!!!!!!

  9. Dhougal

    Gladys must have a blooded nose with the amount of times he’s tripped up .Maybe he should change his name to Aesop or maybe Grimm would be more apt .

  10. alexander

    Methinks Newco, are still dealing in Wooden Nickels!

  11. JimBhoy

    Old Loony Leggo now has Keif “jingle jangle – wealth off the radar” Jackson on the haters of the rabid rangers wall.. I believe Keif is (or was) a fan of the rabid rangers..

    Interesting article Paul… Are we speculating that Whyte amongst others have a slice of the rangers? Will we see evidence next month when they publish the accounts details?

  12. JimBhoy

    Posted similar Qn before, throwing it out there again:

    So with the new rangers paying the last installment for jelavic and presumably them getting (or having got) some money from Everton for the sale of Jelavic, money which was due to his previous employer oldco rangers and let’s say for arguments sake the SFA now see rangers as just rangers past and present (ie the same team), surely BDO will want to get what’s due to the oldco BUSINESS… Who would they go after for the money from Everton? Making the assumption Everton first paid the SFA to pay whichever rangers…

  13. MSM

    Charles Green in Oz
    Charles Green” I am going to meet the directors of Central Coast Mariners on the back of conversations we have had. Australia is producing and has produced good footballers and one of the things we are looking at is putting an academy together with Mariners and it’s something we have exchanged emails on and something we would like to take forward.” {Evidently someone failed to mention to Mr Green the Australians are still quite merciless over the Rangers & Northern Spirit fiasco}
    Central Coast Mariners, “We are open to the idea of collaboration with various professionals and professional clubs, however there is as you are aware, uncertainty with the level of football Rangers will play at for the foreseeable future. We would not entertain the prospect of acting as a feeder club or Academy partner with a club currently playing in the lower echelons of Scottish football. If/when the Rangers situation changes, we would look to an Academy proposal more seriously.”
    Central Coast Mariners are a bit too busy monitoring their bhoy Rogic {official team web site} “TOMAS Rogic’s celebrity status continues to grow globally with a group of Thai kids affectionately known as the ‘Thai Tims’ recording a stunning tribute to the former Central Coast Mariners whiz. Students from Triamsuksa School, which partners with the Good Child Foundation in Thailand, posted a tailored rendition of the Rolf Harris classic “Tie Me Kangaroo Down, Sport” for the recently signed Celtic star. Find out more about the Good Child Foundation or follow the Thai Tims on Twitter.
    Mr Greens visit was scarcely noted in print, radio or TV here in Oz {other than the fact}; it is observed to be incredulous for most to understand why he would think anyone would wish to be linked given the most recent events. Mind you, we have enough trouble here right now with all the “doping/illegal gambling” dilemma.
    I utilised contacts in Melbourne, Brisbane and Sydney and from what I understand this “jolly-jaunt down under” was carefully monitored. The Q&A was not quite as open and casual as reported in the Scottish press the “ Oz-Rangers Supporters clubs” insisted on (1) Pre-submitted questions in advance and they selected which ones could be asked (2) the supposed “open floor” questions were also taken from the pre-submitted questions (3) when trying to acquire a ticket for the venue you had to “state your interest” which was duly assessed (4) once the session started the doors were closed a few people loitered by the doors {not lost}, just there to ensure everyone remain in the room (5) just-short of full body searches (6) no-one was allowed to take photographs’, recordings or videos but at the end of the evening {selected few} fans were given an opportunity to meet & greet and have their photo taken with Mr Green – painstakingly choreographed and orchestrated. Also the venues for the events are worth considering given the millions-billion fans around the world (1) Aurora Hotel – Sydney {capacity 400} in attendance approx. 100 (2) The Imperial Hotel – Melbourne’s {The Parliament Room – capacity 90} (3) PigNWhistle – Brisbane {Churchill Room – capacity 25}.
    From what I understand there is definitely suspicion amongst many here in Australia that Mr Whyte is indeed “owed something” as to what this may be has as yet not been revealed. It has been reported that many of Mr Green’s responses {pre-arranged questions}, was unadulterated rhetoric, smoke-screen-and mirrors, ambiguous and the same “lollipops, rainbows and everything in the world is rosy” propaganda he has been proclaiming in Scotland {UK, Europe & Asia}, he failed victorious was one comment……still pondering on that one!!!.

    • arb urns

      the pign’whistle brisbane ffs. cam,clarken,willy,adam and the old toy soldier r u watching your boys shelled out a helluva expenses tonight as an old norwegian commentator would have said.

  14. As we seem to be concerning ourselves with even the most minor details of RFC, might we also consider the wisdom or otherwise of sending a DVD of those bigger boys from Turin being beastly to CFC´s shrinking violets. Is this a blatant effort to influence the ref. for the Turin game or is it the work of a demented mind? As it might be if, say, Mr mcCoist had sent it. How to win friends and influence people, still, they are Barcelona´s favourite team – yeah, right. Is he also thinking of sending a DVD of Samoras´problems with his balance?

  15. JimBhoy

    @Wiley Wonka Facts are what the rangers fans should have been seeking for a long time now BUT seem incapable of doing so…

    Finding the facts from Chico is an impossible task though, his statements of fact tend to be based on whichever personality he is at that moment in time, Dissociative Identity Disorder (DID), he certainly is a DIDdy.

    • willy wonka

      Unless you are a Rangers fan it should be of no interest to you.
      I’m satisfied with all the ‘facts’ I’m in possession of thanks.
      Speculation from the demented isn’t worth losing any sleep over.

      • mcfc


        I’ve never heard such a desperate attempt to ignore the obvious – something is wrong here – here’s a new anthem for you:

        Say it Ain’t So! (Murray Head)

        Say it ain’t so Joe
        Please, say it ain’t so
        That’s not what I want to hear Joe
        And I got a right to know

        Say it ain’t so Joe
        Please, say it ain’t so
        I’m sure they’re telling us lies Joe
        please, tell us it ain’t so

        They told us that our hero
        Had played his trump card
        He doesn’t know how to go on
        We’re clinging to his charm & determined smile
        But the good old days have gone.

        The image and the empire may be falling apart
        The money has gotten scarce
        One man’s word held the country together
        But the truth is getting fierce.

        Say it ain’t so Joe
        Please say it ain’t so
        We’ve pinned our hopes on you Joe
        And they’re ruining our show

        Oh baby don’t you think we’re gonna get burned
        Oh baby don’t you think we’re gonna get burned
        We’re gonna get turned, we’re gonna get learned
        We’re gonna get burned
        We’re gonna get burned
        We’re gonna get burned

      • Raymilland

        Who are you kidding?
        It’s time to wake up and smell the coffee.

      • riddrie

        Rangers disgusting behaviour has affected every team in the SPL and their current shenanigans are of legitimate concern to us all.

  16. mcfc

    I lived in LA during the OJ Simpson trial and the thousands of hours of media coverage, argument, speculation and theorizing were summed up perfectly in Johnnie Cochran’s closing comments, “You remember in my opening statement, I told you, you know, something’s wrong here, something’s sinister here, something’s wrong . . .”

    Well, that’s how this whole situation feels to me – and if Charles Green is welcome at Ibrox in 5 or 10 years time I’ll be extremely surprised.

  17. MJJT67

    Paul, I’m not the best at understanding P&L’s – midterm finance results but I am right to think Sevco are heading down the toilet hee hee.

  18. JimBhoy

    I hope chico is around for a long time to come.. He is a media dream, never a dull moment, the majority of people can see right thru him, I wait for the day old stickbricks sides agin him once more… I don’t think we have seen the last of the word ‘Duped’… 🙂

  19. JimBhoy

    @Violet what’s your opinion on the Italian defending of set pieces in that game?

    Imo if you defended like that at the edge of your box for a throw in or free kick it would be a free kick against you.

    The problem that referees have is that they have to give a penalty or nothing (exception being pass back – indirect free kick)… When I played for teams back in the day the ref could give an indirect free kick in the penalty box for lesser offences. The fact that refs do not seem to have that option available to them these days has put pressure on them in these situations…

    Bring back indirect free kicks in the penalty box for lesser offences and we would see less matches lost/won on bad pen decisions.

    • tykebhoy

      No change in the laws. Obstruction is still an indirect free kick. Obstruction is deliberately placing any part of the body in front of a player with the intention of preventing said player moving towards the ball when you are not in a position(touching distance) to play the ball. Starting positions and momentum should be taken into account, hence standing in front of t he keeper before the ball enters play is not obstruction.

  20. arb urns

    have been dishing out shark meat for 43 years now, a wise old owl who had done the previous 43 years stint took me under his wing during that first year and said, ” son dinnae lend where the ” owners ” o’ a business have got nane o’ their ain hard earned brass in there tae loss.”

    amazing how these pearls of wisdom never leave you, and are never wrong.

  21. ecojon


    Possibly your Oz contacts could find some info. I wondered if Chuckles met up with the OZ Rangers fan Alan Mackenzie from Perth WA who pledged £1 million apparently used as an investment in TRFCL and which I assume was swapped for RIFC Plc shares.

    It was just that I thought this would have been used by chuckles as a PR exercise and was surprised there’s no mention.

  22. JamsieBhoy

    For some reason when i read about chuckiebhoy the word Bonkers keeps popping into my mind! I cannot thing why.

  23. Alexander Doherty

    Dear miss carson
    I admire your interest in European football when your new team never played in it.
    You never know if your club The new rangers keep there nose clean about there accounts in a few years you might be allowed in
    But then pigs might fly

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