It is common for businesses to have subsidiaries nesting inside like Russian dolls. That happens in football as well as in commerce generally. It rarely provokes any interest and even less comment.
However the existential pondering on the nature of Rangers Football Club, and its separate identity from that of the company/companies/people who own it makes this a rather more interesting discussion when it comes to RIFC PLC and The Rangers Football Club Limited.
Let’s first of all have a wee look at how quickly times can change.
12th September 2013 – 5pm – extract from announcement to the Stock Exchange:-
Rangers International Football Club plc
(“Rangers”, the “Company” or “Club”)
Withdrawal of requisition for general meeting
The Company confirms that all of the current Directors remain in office and that it is not appointing any additional Directors save that as previously announced, the Company confirms that it continues to actively seek to appoint a new Chairman.
Further announcements will be made as appropriate.
14th September 2013 – 2.10pm announcement on official Rangers website:-
SANDY EASDALE, co-owner of McGill’s Buses, has been appointed to the board of The Rangers Football Club Limited.
He joins his brother James, who is also a director of The Rangers International Football Club plc, on the limited company board.
Mr Easdale said, “It’s a pleasure and a privilege to join the board and I am looking forward to doing everything I possibly can to help move the club forward. It’s my intention to help drive Rangers back to the very top of Scottish football.
“That’s an aim that I share with everyone else connected with this club, especially the fans. Together, we can do great things.”
In addition, Chief Executive Craig Mather and Financial Director Brian Stockbridge are members of the football board.
(I am sure that the announcement went onto the official website 40 minutes before a game kicked off so that the fans would be aware of the news by 3pm. Heaven forbid the announcement was made then in the hope that people would not notice it!)
Maybe someone can help me here.
We know, as we are repeatedly told so, including in the heading of the Stock Exchange announcement, that the Company = the Club = Rangers.
As you see from the announcement above, that relates to Rangers Intergalactic International Football Club PLC.
It is therefore not a contradiction of the announcement on 12th September for Mr Easdale to be appointed on 14th to the private limited company. But, if the PLC = the Company = the Club = Rangers, what is the private limited company?
This is of course the entity now known as “The Rangers Football Club Limited” and formerly Sevco Scotland Ltd, as written about recently by ecojon.
Of course, as the PLC did not come into existence until December 2012, then Sevco Scotland Ltd must, of necessity, have been “the Company” and as such = the Club = Rangers.
On incorporation of the PLC and it taking 100% ownership of the former Sevco Scotland, the essence of the football club must too have passed over, unless both companies = Rangers!
And another thing …
James Easdale is now a director of both the PLC and the “Football Board” as the official Rangers website calls it. He is however a non-executive director of the PLC. Non-executive directors have a job description which calls upon them to look at the interests of the company and shareholders and to call the executives to account.
So here we have James Easdale being a director (apparently executive, along with his brother) of the company which owns the assets and business which make up Rangers Football Club, whilst at the same time, being a non-executive director of the company which owns that company (if you see what I mean!)
However I am sure that James will do his very best to hold to account the Directors of the former Sevco Scotland – after all, who better to oversee what Mr Easdale does than Mr Easdale!
Posted by Paul McConville