To All concerned regarding D&P’s decision not to sell players while in administration.
I stated D&P could not sell outwith the transfer window, and this may strictly not be true, and incredible as it may seem I may be wrong.
They may have sought special permission from the SPL. I am only saying ” may ” because I cannot confirm if the SPL has the same rules as the EPL, the same conditions applied or they had asked and it was refused. However if I have made an error then you will all forgive me.
Professional bodies tend to make decisions in the full public glare for a reason, so why did they not ask for special permission, and here are some of the reasons.
1. Rangers and Portsmouth are chalk and cheese, the former was a fully functioning business that up to CW was managing its debt,a ready made product back in its tailor made market, and the latter, a relegated basket case with no future. Its safe to say Rangers was worth more as a going concern than Portsmouth, there is a different emphasis when Portsmouth had no cash and Rangers had enough to look at other options.
2. Portsmouth had to give away their top payers, clubs do not offer you much money for a player they cannot use for 3 months, the same time they could get them for nothing ??
3. The market for Rangers players had been fully tested in January, an agent told me everyone was for sale, and they sold one.
4. D&P calculate the potential return of flogging players in one month against flogging them if they refuse a pay cut in a months time, and the reduction of Rangers value as an intact business.
5. Pay cuts allow Rangers to trade until end of season and be sold in tact, it was not sold and was broken up in a liquidated sale.
Now the only action we can debate is guessing how much they would have got selling top players versus the loss to Rangers CVA market value, which was 8.5 million. There is no point in selling 5 top players for 2 million if it reduces the market value by 2 million. I really think you need to look at the timing of the winding up, it was too close to the end of the season to expect anyone with a brain to buy a Rangers player in March, when they could get them for nothing in May. In fact why would they do that, nobody was exactly queuing up for them ???
So, assuming D&P could get permission ( I demand proof), then why would they ask for it, it was not in the best interests of the creditors.
I identified something a year ago, it is unfortunate for vengeful Celtic fans that Rangers was worth more fully intact to the creditors, but that’s the way the cookie crumbles. Anyone who denies Rangers was worth more as a fully functioning company through a CVA cannot add…… the difference was 3 million.
Its possible D&P may have been able to seek permission, my full comments below, but I am quite happy to admit I am wrong to you but no one else, so don’t tell anyone, keep schtumm.
A few extra points I didn’t note in my War and Peace effort, the players only lost their value once the CVA failed, and ironically and damagingly the bill for D&P was 2.7 million, and the difference between a CVA and a liquidated sale was 3 million…..coincidence eh ?
The next argument is why did D&P think the CVA would succeed, and that is a tricky one to answer, HMRC did say they would consider it and I suppose opened a crack in the door for them to make £ 2.7 million in fees, while doing a public service in keeping Rangers alive, and paying their taxes.
Posted by Niall