Did Charles Green Forget He Runs a PLC Now? Did He Err Making a “Loss Forecast” Outwith the Rules?

I wrote yesterday about Mr Green revealing that “Rangers” will make a loss this year. As I mentioned, his comments on the official Rangers website raised a couple of queries regarding (a) the correctness of the information given on the website and (b) the obligations of the Chief Executive of a quoted public limited company when telling people about potential profits and losses. I addressed the first point in my last post.

A quick reminder of the relevant extracts from the article:-

CHARLES GREEN has detailed how he plans to turn Rangers from a loss-making company into a profitable one over the next year.

As per projections in the prospectus made available to potential investors late last year, the 2012/13 campaign is seeing money being lost by the Light Blues.

Green said: “The company is currently trading at a loss and the reason for that is our income is halved from coming out of the SPL and Europe and going into the Third Division.

“Typically, Rangers would be close to a £60million turnover per year and we’re down to below £30million now.

“It’s not an overnight thing. All of those things will take a year or two but the losses are a one-year thing and they won’t be here next year. We’ll grow and grow thereafter.”

As I said, the article does not confirm precisely which “company” he is referring to. Reference to the prospectus might suggest he is speaking about the company which was the subject of the prospectus, namely Rangers International Football Club PLC.

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PAST LINKS BETWEEN ENIC AND RANGERS 2ND BIGGEST SHAREHOLDER by Ecojon

It’s easy to understand the differing reasons why investing fans; original investors; and other investors with business or commercial links to Rangers International have parted with their cash.

But I find it slightly harder to understand why institutional investors took the gamble to the tune of £17 million. That’s why I was excited to read the explanation from the CEO of Hargreave Hale Ltd – the second biggest investor in Rangers International with 7.6% of the company – but ended up really no further forward in my understanding.

http://www.trustnet.com/News/394239/hargreave-why-im-investing-in-rangers-football-club/.

Of course there’s no show without Punch when it comes to Rangers International and I had better add that Charles Green, the company’s CEO, is the biggest shareholder with a 7.79% stake.

However, back to Giles Hargreave who believes he has found the football share in Rangers International that defies the old saying:  “The best way to make a small fortune from a football club is to start with a large fortune”.

Charles Green’s Last Hurrah for the Rangers Share Issue

There is some interesting phraseology here. (I have put on my “Ibroxologist” hat here). My comments are in bold.

From the official Rangers website:-

CHARLES GREEN, chief executive of Rangers, last night released the following statement.

He said: “I am delighted we have been able to fulfil our promise to give fans the opportunity to once again hold shares in the club as that has been our stated aim from the beginning.

Two things – he has fulfilled his promise to give fans the “opportunity” to hold shares. I am sure he is not being negative about share take up, as all the comments from official and unofficial Ibrox mouthpieces has emphasised the fantastic numbers of shares in which interest has been expressed. But the sentence almost has the unspoken addition of “we gave them the chance but they did not take it”. I am sure that is incorrect on my part.

Secondly, the shares are not shares IN THE CLUB. They are shares in the holding company which will own 100% of the company which owns the assets which make up the club. This is a perfectly normal and legitimate structure for a football team. However, if we are looking for precision of language, what is being sold is NOT a share in the club.

New Rangers Plc Director Linked to Harper MacLeod – Exclusive Revelation by Ecojon

In a move that will stun “Conspiracy Bears” the newest Rangers director Laurence Lumb has links to Harper MacLeod which has long been viewed as the handmaiden of Nemesis by the Ibrox Faithful.

Of course the crazed fantasy web of conspiracy spun by Rangers supporters has meant that anyone with even a tenuous connection to the Glasgow Law Firm is viewed by blue fanatics as an enemy and person of interest and subjected to vile abuse.

Laurence Lumb is the brand-new director of ‘Rangers Football Plc’ which was incorporated on 16 November 2012.  He is a partner at Field Fisher Waterhouse LLP based at Vine Street, in London, and also a director of FFW Secretaries Ltd, of the same address – listed as director and secretary to the new Rangers Plc.

He is a partner in the firm’s corporate group and his practice covers mergers & acquisitions, joint ventures, restructurings and corporate finance. He has, according to his firm’s website, acted for many clients on the various stages of their financing, from raising start-up capital to venture capital funding. In addition, he advises clients in insolvency-related situations, including advice to directors on their duties and responsibilities.

Have Rangers Paid Hearts for Lee Wallace? Charles Green and Chick Young Seem to Disagree

Last Saturday Charles Green spoke to Rangers fans at Ibrox for their match against Alloa. I wrote about what he was recorded as saying here. It would appear that not all that Mr Green was noted as saying was 100% accurate. I am sure the apparent discrepancies noted below were entirely as a result of oversight or error, and not a deliberate clouding of the issues or declarations of bravado to appeal to his audience.

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There are two specific paragraphs I want to mention initially, which are reproduced exactly as they were written by the original poster on a Rangers message board.

3 – All footballing debt have been paid apart from the 31k to Dundee Utd which he has a letter confirming would be paid by the SPL.

6 – Rangers owed hearts the remainder of the Lee Wallace fee, Hearts were so desperate for the money eventually offering a 100k discount if we paid the cash two weeks ago. Thats why the couldn’t pay the wages.

My interpretation of that was as follows:-

• Hearts have been paid for Lee Wallace.
• Mr Green negotiated a discount for prompt payment.