Another communiqué from the scrum

Once more I am grateful to Rugger Guy.

I asked him to carry out an analysis of the accounts of Rangers International Football Club (RIFC).

Specifically, I asked him to look at the cash flow situation over the lifetime of the Four-year-old institution.

I know that he has a very busy schedule and these valuable communiqués are often created for me in airport departure lounges, etc.

Consequently, I’m indebted to him.

However, unlike a club that used to play at Ibrox, I pay my debts in full.

Ok, here it is:


Bottomless pit?

Following on from the recent reports on RIFC accounts, this has raised several comments and queries, and in this regard Phil has asked me to carry out an analysis of the main cash flow movements of RIFC in its four-year history in order for people to get a sense of the shift in options for fund raising of RIFC. Phil has asked me to consider whether this entity is a bottomless pit, in that good money is being thrown after bad and will this ever end?

In this regard, I have looked at the operating performance of the entity to get a clearer picture of the underlying cash flow movements, rather than just looking in detail at the balance sheet, notes to the accounts and other areas. What is very striking is that in the four years of operating, this business has incurred operating losses of almost £37million. The balance sheet shows only accumulated losses of £18, but critically operating performance is the key indicator.

I will deal with this difference between these two amounts as I set out the performances in each of the four years trading history.


Year 1 13 month period ended 30 June 2013.

In this first year, RIFC raised monies ahead of its IPO (Initial public offer), together with the IPO itself. Together these raised almost £30million (after professional costs of c £3m), and in this period incurred an operating loss of £14m.The company posted a small profit due to the “release of negative goodwill” of £1m. In essence this related to the purchase of assets for £6.7m which at that time had a value of £27.2m. The subject of asset revaluation and assessment of fair value is in its own right worthy of a separate review, but I am not planning to comment on this here.

The good news was that RIFC had cash in the bank of just over £11m.


Year 2 of trading, period ending 30 June 2014.

In the second year of trading, RIFC incurred operating losses of just under £10m.

Closing cash balances were £4.6m, and in this year because of its listing on the AIM market, the entity raised £3m from the issue of shares but in addition to this, Mr Easdale, a director, and Mr Letham provided loans of £0.5m and £1m respectively. Losses posted in the balance sheet were slightly lower but the key area to look at for underlying performance is the operating aspect.


Year 3 of trading, period ending 30 June 2015.

Once again, RIFC incurred operating losses of £10m. In this financial year, RIFC lost its listing in the AIM market, and I will not go into the full details behind this as I believe that this has been well documented. This took place in March 2015, but prior to this event, RIFC was able to raise just under £3m from this market together with a further £5m from Mike Ashley’s company, and further director loans over £2m. However, the closing cash balances were now just a fraction over £1m. As some people say “the trend is your friend.” As most people may or not may know, RIFC does not have a credit line from any bank.


Year 4 of trading, period ending 30 June 2016.

Once again, the accounts have received an emphasis of matter qualification by the auditors as a going concern. From a financial results perspective, there has been an improvement to losses of under £3m, and net new loans received of £1.3m. However, there are some bullish comments made by the directors of a 40% increase in the footballing squad and a commitment to spend in the infrastructure at Ibrox and Auchenhowie. It also appears that a number of legal cases pending could have a substantial effect on the cash flow of the company. In this month a further loan of £3m has been made by the directors and other related parties, with a further promise to provide whatever funding is required.



What does this mean for the future of RIFC, a bottomless pit?

To put this in some context, RIFC has incurred total operating losses approaching £40m in its four-year existence. RIFC has to raise £36million net courtesy of the AIM market.

As of today, RIFC has loans primarily from directors of £13m

Is the company likely to make operating profits in the current year? It needs a lot of things to fall into place for this to happen, but if I were a betting man, I would not place a penny on it.

It is also unfortunate to see that a share price which almost reached £1at one time, is trading on a matched basis only,   currently trading at around 25pence. RIFC equity is in my opinion pretty much worthless. Why? When loans are outstanding, and there is no visibility of any ability to repay this, then the loans may get converted to equity in order to take control of the company.  Existing shareholders value is normally decimated. It is also difficult to know whether directors will continue to fund the losses into perpetuity and if they have the financial clout to do so.

There, dear reader is the unvarnished truth. The directors of the Holding Company Vehicle will need to continue to throw money into Sevco.

If they don’t continue to stump up then, the Engine Room Subsidiary is in serious, serious trouble.

That is what a qualified person can discern by looking at the published accounts of RIFC.

As a lay person, I believe his conclusions make sense.

However, don’t expect to read anything remotely like that in the Daily Radar.

After all, they have a dignified demographic to keep happy.

As ever the coverage here is guaranteed to be free of any contaminated lamb.

No paid PR person was the originator of what you read here.

This article is my idea and the words accompanying an expert analysis are mine and mine alone.

Thanks for reading.

33 thoughts on “Another communiqué from the scrum

  1. Avid Reader (@6019Kilo)

    As I was reading “Rugger Guy’s” forensic analysis of the RIFC accounts, for some reason the notion of life imitating art came to mind. Primarily the character of Anthony DiNozzo Sr., played by the inimitable Robert Wagner, in the American crime drama, NCIS. DiNozzo once had wealth off the radar and although he is now skint he continues to behave, talk and dress as if he still has. He maintains the facade by living off the goodwill and tab of others without shame. Surely that is just fiction and would never happen in real life or would it?

  2. joe mccormack

    Given the lack of moral compass in our media I would suggest that at every opportunity those fans who are aware of the consequences of UEFA FFP rules on the club playing out of Ibrox should pass the information on to fans who remain in the dark, especially to those fans of the Govan tax evaders.
    Won’t so any harm either to email Regan and let him know that the internet bampots are on the case, even if he isn’t.
    King knows that the club fails UEFA FFP criteria on multiple points yet somehow European football next season appears to be the great white hope for solving their numerous financial issues.

    How is it possible that no one, not one person, in the media dares to mention FFP?

    Will there be another Bryson ‘imperfect but legal’ ruling coming down the pike?

    The SFA’ s problem with this one is that the FFP information is already in the public domain, it’s all there in the club’s accounts. There are no timing issues, no smokescreen of taxes being under appeal, there is no wiggle room.

    Regan can pick the phone up today and give King the bad news, as if he didn’t already know.

    The very fact that no one is shooting down their European expectations makes me think that the fix is in………how can that be I have no idea but if when questioned on the matter, as if, Regan replied WATP, I would not be surprised in the slightest.

  3. jarte

    In Rangers recent accounts it shows gate receipts up to £ 17.3 million , an increase of £ 5.7 m.
    They also note season ticket sales up £ 3.2 million but walk-up customers down av.1163/match, approx. £ 0.5 million over 18 home games. Where did the extra £ 3 million come from ?

    Hibs run to the Scottish cup final and League cup final netted an extra £ 1.5 million in gate receipts . Is the Petrofac cup so much more lucrative ?

  4. FSTB

    I may be way off the mark here but
    How ,i(f sevco 2012 are ,as the BIG LIE peddlers state ragers 1872) can they possibly get a licence to play in europe .
    IIRC the club that CW paid a quid for and are in the proccess of being liquidated ,failed to pay over £15m in PAYE and NIC .
    How are the history re-writers going to squre that circle

  5. Steve28

    Just wondered if there is any truth in the wee rumour regarding contractual obligations via season ticket holders that require the sevco directors to fund them till the season ends

  6. joe mccormack

    The Ibrox club fail UEFA rules on more than one criteria.

    First of all there are the cumulative losses then there is the going concern note in the accounts.

    It’s that simple, Regan should be imparting this news to his mate King who appears to be blissfully unaware that there can be no European football at Ibrox for the forseeable future.

    Unlike the licence granted to the previous entity despite the wee tax case unpaid bill, the Rangers accounts are in the public domain. There is no dubiety, there will be no UEFA licence.

    Can you imagine Hearts, Aberdeen or St Johnston rolling over and giving up a Europa Cup place because the SFA ar playing ffast and loose with the rules. ………….again!

    This is one of the many inconsistencies in the accounts………..surely the auditors must be aware that there is no route to Europe for at least a couple of years during which the results have to show profits.

    Anyone making statements that European competition is the cure for all that ills the Ibrox club is either doing so in the knowledge that the SFA cannot issue a licence without bending the rules, perhaps another Bryson intervention, or are just giving out the party line.

    1. Auldheid


      I touched on this on SFM as follows:

      Long Time LurkerOctober 29, 2016 at 08:53 Have Rangers met the UEFA criteria to play in Europe re established sets of audited accounts etc.?__________________________

      Could you imagine it? TRFC qualify for Europe, the journey is complete, King is (metaphorically) carried shoulder high and lauded as the great messiah, then…UEFA take a look at their accounts, which they won’t do until after they qualify, and the true cost of what their messiah has done is revealed!
      Actually what UEFA have said in that letter of 8th June 2016 (apart from UEFA viewing TRFC as a new club/ company ) is that the granting of the licence is done by the SFA. That means that it is the SFA who scrutinise the accounts and once UEFA get the list of clubs granted they accept the national association has carried out the licensing process in the spirit and letter of fair play under UEFA FFP.

      Now this is where the financial rubber hits the integrity road because if the national association is driven by the fear of what will happen to the domestic game will be seriously damaging to it financially, are they likely to abide by the spirit of the rules and refuse a licence or find ways of reading the letter of the rules that let’s them justify granting a licence when they should not?
      Res12 should get answers to that question but for obvious reasons of self protection the persistence is meeting resistance. Only the club’s can seek answers but they are interdependent and so would rather let it all fade away.

      My analysis has consistently been that UEFA prize money should be much more equitably shared amongst all top tier clubs who provided the opposition from which a winner would emerge. I’m not saying lower tier shouldn’t but perhaps that is where the solidarity payment should go.

      Pursuit of UEFA geld killed RFC yet TRFC see pursuit of same bounty as the answer to their business prayer’s? “As oil is to the oil industry so stupidity is to football” (Soccernomics) and I’m now including the media in that Forrest Gump bracket.

      Where is the strategic thinking at play either at Hampden or the media? Why a reluctance to think about why our game is in such a mess off and on the park? Why a reluctance to introduce Domestic FFP which was mentioned a while back or would such a policy prevent a club qualifying for UEFA but failing to get a licence granted because Domestic FFP does not allow for a club to continually depend on loans that they need to field better players than the rest that other clubs cannot access?

      It might even be questionable if a club with such a policy would obtain a licence under UEFA FFP but if their survival depended on it as it did in March 2011, would the SFA apply the spirit of UEFA FFP or try and find ways to navigate the rules to let them justify granting it?

      The future is a prisoner of the past unless the present changes and only clubs under supporter pressure can do that.

  7. 1jaybee

    Having been brought up by my Irish grandmother in the not too distant shadow of Ibrox in the early 60’s we were treated, definitely not the word, to the anti RC and anti Irish sing-songs by the sons of william.
    It bred into me a loathing l can’t seem to shake.
    Now that the original bigoted outfit is gone I thought I could forgive and forget.
    But no, they are back, or so they claim, having never gone away!
    Well if that is the case and they are ‘one and the same’ l feel no sorrow for the predicament they now find themselves in.
    I now feel nothing but glee, happiness and hold a fervant hope that this disgrace of a club that shames Scotland, even in the guise of sevco/rifc, is consigned once and for all to the dustbins of history!
    Roll on liquidation Mark2!

  8. Oscar

    Truth be told the whole Sevco shambles is in negative equity. More and more money being sunk into it. The place itself worthless. Ibrox falling down a first team squad that aren’t worth fk all. But a willing media to ignore all of that and tell the world sevco are in the same league as Celtic. Although that maybe so as far as being in the same division, but in terms of actually mixing it with the Glasgow giants sevco are actually further away than Hearts or Aberdeen. No credit line from a bank and no retail revenue for the next six years! Changed days from the last club that had a sugar daddy to bury the debt into his multi million steel business to keep the books looking rosey for the banks to throw money at him to buy players to keep with Celtic. But the need to sell that image to the world is their downfall. Luckily for this board they are living in a country with the most half witted sports “journalists” ever. As Phil will know not even one of these sports “journalists” would last two months in Ireland where they would be called out straight away for spouting bull shit. Anway long may it continue. And Celtic will lead while the rest will just follow follow.

  9. jmanuhKwaj

    I think we should keep them. Let them limp along like a wounded dog that it would be kinder to help along on its way. Its way to funny watching the vultures feed off the carcass and the infested all wriggling to the glib and shameless ditty. Yes, i concur we allow this animal to limp along providing years and years of joyful chortles as the mushrooms chow down on what they are being fed, although I will be keeping my bottle of ice magic safely tucked away just incase!!!

  10. North Belfast Onlooker

    Assuming Brother King and his fellow Director comrades continue to over-invest to keep the four year old club alive, pending a croc-of-gold, over the rainbow, from European participation, it might be useful to contemplate the revenues likely to accrue.

    It is reasonable to assume that Champions League participation is unlikely. So, best case scenario, let’s look at the Europa League revenues this year, 2016-17.

    The Scottish League teams, (Scotland has the 23rd highest co-efficient/ranking, just above the Swedish League, just below the Danish League) come in at the 1st Qualifying Round (ie the very bottom). That’s where Aberdeen (2nd) and Hearts (3rd) started this season.

    The ‘Solidarity payments were:
    1st Qualifying Round: €215,000
    2nd Qualifying Round: €225,000
    3rd Qualifying Round: €235,000
    Play-Off Round: €245,000

    The total, therefore, for reaching (and being defeated in) the Play-Off round would be €920,000

    I’m not tempted to go further and assume, on current form, that the four year institution will reach the giddy heights of the Group Stages, where Dundalk FC are competing effectively at present.

    If Rangers reach the 2017-18 Europa League play-off qualifier, the good news is that the participation Solidarity payments are set to rise. Further good news is the weakness of the £ sterling against the Euro, if that still pertains. So we’re probably looking at a figure just ‘north’ of €1,000,000
    Bear in mind that there are a lot of “ifs” in here, a lot of “fair wind” assumed, but In light of the information in the 2016 accounts, and of Rugger-Guy’s expert analysis, is €1,000,000 life changing money?

    1. David Stevenson

      Presumably they would benefit from gate receipts which would be significant. £20 a skull net for gates likely to average 40K or more seems a reasonable figure. That would be £3.2M less the costs of staging the games.
      They still have to finish high enough up the table and negotiate those games right enough. Aberdeen and Hearts failed badly in the latter this season. No guarantee that Sevco would better that.

    2. Son of Henry Root

      Given that the big guns, and there are a few at Aberdeen and Hearts, will challenge their missing out on Europe at the expense of another club, this has the prospect of a real Armageddon.

  11. jimmybeee

    Hi Phil,
    Isn’t it really sad, that this story, which is painted perfectly by your good friend,wasn’t done under the orders of a newspaper editor in Scotland.
    It really shows them up for what they are. Your guy just like yourself,easily pinpoints and addresses the facts. No succulent lamb.
    I await my Xmas bonus Phil at the start of December,and will donate to you then. My thanks for keeping us free from contamination.
    Keep up the good work.

  12. Dalriada67

    Phil, what adjective do I use! Excellent, superb, outstanding……
    How on earth are the SFA & SPFL not stepping in to stop this bunch of chancers, who are going to, or should I say are, making a mockery of our game?
    If this was a so called diddy team, they would be hammered.
    When, oh when is the requiem mass going to be celebrated for this mob! I feel we should give them a good, FINAL send off.
    This has got to end.

    1. Billy Mason-Lodge

      You Just don’t get it Dulriada67. The Rangurs will never be allowed to die. The Establishment (That’s us by the way) will do WHATEVER IT TAKES – WHATEVER IT TAKES to keep our great club going. No-one will get in our way. Peepul-Power.

        1. Billy Ibronx

          Mr Mason-Lodge is correct, Rangers is not merely a football club but is a spirit, an IDEA, a feeling, an intangible, ethereal, hyperboreal concept that only exists in the waftiness of the spirit we conjure up at our meetings, but which oozes dignity, class and absolute respect wherever it goes, as we not only ask for it, but we, in fact, DEMAND it, as the good Dr Warburton proves.

          John James can dress it up in as many cheerleader outfits as he likes, and he certainly does seem to like it a lot, but we, the mighty Glasgow Ranjerks, are mystical. eternal, and indefinitely infinite no matter what kind of suit, skimpy spandex clothing or hardened wooden box, you haters may try to put us in.

          Even if this one dies, we can just call on our fiends in high places and a new one will arise from the asses, like a penix from the flames, but it will still be the same club anyway and you will still be all sick and crying into your Buckfast.

          For the very spirit of Rangers lives in our hearts, our heads and the rooms where we hold our bi weekly meetings and that concept cannot be erased by either liquidation, defenestration or death.

          No matter how many Timpots dance around the fire in unadulterated glee then roll around in the ashes naked afterwards.

          1. telthetruth

            oh and how we danced,my feet are still sore,liquidation and a broken timeline,get it roond ye

      1. Saint Marys Bhoy

        In 2012 Rangers topped themselves. There was no one there to save them then. If I remember correctly it was you majestly, the very top of the establishment if you like, that flicked the switch!

        What you don’t get is that you are not superior, you have no right to turn up and win things.

        Your bullish non sense is typical off your kind and led to the downfall of the old club.

        Sevco are 4 years old. Will it’s supporters put up with being 2, 3, 4, 5th best?

        Clearly, they won’t.

        The new club are already spending outwith there means to catch the rest and will die like the old one.

        Billy, if your going to come on here, please offer constructive comment. You are embarrassing yourself!!

  13. Smiddy

    They’re in a hole and they need to stop digging.

    “Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

  14. Veritas

    There is no way that this outfit should get past UEFAs Fair play rules and get a license to play in the Europa qualifiers for the foreseeable future .
    In effect Rangers league position for the next couple of years should be irrelevant other than if by some miracle they can either stop CFC winning the league or they get relegated
    That said having read through the UEFA regulations and related Qs and As a couple of times now I am absolutely certain of two things
    1 The SFA will without doubt finegle their way through the various caveats in the regulations and if TRFC qualify for Europa qualifiers they will support a license …AND
    2 Level 5 and the MSM will not( just like Res 12 .) allow this subject to see the light of day

    1. joe mccormack

      Veritas, there is nowhere for the SFA to hide on this one.

      The accounts and losses are in the public domain as is the going concern note.

      Regan can tell his mate King tomorrow that there will be no European football for the forseeable…….but will he?

      Of course the media are also aware that FFP rules dictate that there will be no Europa Cup football at Ibrox next season, however Level 5 are still in control of the agenda, and unless someone goes off message then the story wil be buried.

      I would imagine that Hearts, Aberdeen and St Johnston will not lie down and surrender a European place to a club that does not meet the required standards deemed necessary by UEFA.


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