Tag Archives: BDO

In the Name of “Sporting Integrity” Should the SPFL Relegate Hearts?

The SPL, earlier this week, issued a statement regarding Hearts.

Following Heart of Midlothian plc lodging a Notice of Intention to Appoint an Administrator with the Court of Session in Edinburgh on 17 June 2013, the SPL confirmed that a number of sporting sanctions have been applied to the club.

An SPL spokesperson said: “As Heart of Midlothian is subject to an Insolvency Event, a 15 point deduction will be applied to its total points in the League Championship for next Season 2013/14.  In addition, Heart of Midlothian is subject to an embargo on Registering Players with the SPL whilst in administration.”

There are a couple of thoughts about this.

First of all, how does the change at some point before next season from the SPL to the SPFL affect this? If the 15 point penalty which is based on 1/3 of the points gained in the preceding season is an SPL rule (as it is) how does this carry across to the SPFL? Continue reading

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103 Comments

Filed under Administration, Football Governance, Hearts, SPFL, SPL

Mr Whyte, Mr Green, Sevco 5088, Sevco Scotland and Prospectus Risk Factors

In which I comment on:-

  • the return to the fray of Craig Whyte,
  • the confusing issue of whether Sevco Scotland Ltd (which was not a party to the sale agreement) or Sevco 5088 Ltd (which was) acquired the assets directly from Duff and Phelps,
  • whether Mr Whyte’s challenge ought to have been mentioned as a “risk factor” in the Prospectus,
  • whether Mr Whyte’s allegations might provoke BDO into further and more immediate action and
  • whether his involvement, if established, bolsters or weakens any case of alleged “gratuitous alienation”. Continue reading

352 Comments

Filed under Charles Green, Courts, Insolvency Act 1986, Rangers

Gratuitous Alienation and RFC 2012 PLC – Some Clarification for Clarkeng

In response to my post re Gratuitous Alienation earlier this week, I noticed that Clarkeng made a few comments disagreeing with my thesis. I think that there may be crossed wires on our parts so I thought I would clarify my argument.

Some of Clarkeng’s comments are indented below, with my responses in bold beneath.

As far as BDO challenging D&P about the value achieved for the sale of the business and the assets I do not think you will hear anything further despite Paul’s suggestion.

To be exact BDO would NOT be challenging Duff & Phelps. Instead they would be “challenging” the purchaser, Sevco Scotland Ltd (now Rangers Football Club Ltd). An administrator acts as an agent for a company in administration, and the actions of the administrator are the actions, legally, of the company.

This is unlike liquidation where the actions are those of the liquidator, as the company is in no state to take any action itself.

As for time scales, if there is to be action by BDO regarding an apparent gratuitous alienation, then I would not expect it until near the end of this year, at the earliest. Liquidations take time, especially where there are as many complications as seem to exist in the case of RFC 2012 PLC. Continue reading

293 Comments

Filed under Administration, Insolvency, Rangers

Rangers Interim Results – Everyone at Ibrox is Very Happy – What About Asset Revaluation?

A brief note (yes – it will be brief).

Rangers International Football Club PLC’s interim results are out and can be read in full here.

People will pore over them but is seems clear that all is well on the Good Ship Rangers, and that Captain Green, Commodore Murray and First Mate Stockbridge are steering a course as plotted in its business plan and flotation document.

There is one squall on the horizon that I want to mention at this point.

As with weather approaching a vessel on the high seas, it might change course, missing the boat. It might blow itself out before reaching it. It might even turn out to be a smudge on the lookout’s telescope, and not there at all. Continue reading

546 Comments

Filed under Charles Green, Insolvency Act 1986, Rangers

Mr Green Was Grilled by Keys and Gray Yesterday – Provides More Evidence of “Gratuitous Alienation” of Rangers Assets

Charles Green endured a testing and forensic examination yesterday. He went on the Talksport radio programme of Richard Keys and Andy Gray. Not for nothing are they known as the Marshall Hall and Clarence Darrow of the airwaves!

I considered listening to the entire 55 minute broadcast, but even I have my limits.

I have therefore taken the article below from the Herald, and have comments on Mr Green’s statements, my comments and thoughts being in bold.

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Charles Green has revealed that Craig Whyte is suing the club for money he believes he is entitled to for agreeing to sell his shares to Green’s consortium last summer. Whyte made several demands during talks about the shares, including a request for £1m a season and seats in the director’s box, and he wants to be paid for negotiating with the club. The Ibrox board rejected Whyte’s demands out of hand.

Green reiterated, during an interview today on Talksport, that Green has never been part of his consortium, and neither has the finance company, Ticketus, which lost £22m they loaned to Whyte against future season ticket sales when the club went into administration last February.

“I’ve never worked with Craig Whyte,” Green said. “I was introduced to him by Imran Ahmad [Rangers’ commercial director], Craig Whyte did introduce me to Duff & Phelps. We needed to get hold of Craig Whyte’s shares, so Duff & Phelps would treat us as credible.

Where do we start with this? Continue reading

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Filed under Charles Green, Insolvency, Rangers