Big Mike’s big decision

It is never a nice feeling when you realise that you are not as well informed as you thought you were.

I suspect that is how Mr Ashley is feeling right now.

His guys are looking under the hood and it isn’t pretty.

Mr Llambias and Mr Leach have found pretty much what Graham Wallace and Philip Nash discovered a year ago.

There have already been redundancies at Ibrox although, for now, the Murray Park staffing establishment has escaped the Ashley axe.

For now.

One long serving staff member at Ibrox stated to Mr Llambias that the football department seemed to be off limits.

He said this as he was told that he was being let go.

Mr Ashley’s trusted lieutenant replied that nowhere was safe from cuts and that this was only the start.

Deloitte has communicated via the embattled NOMAD Daniel Stewart & company that the dripping down on monthly quantities of life support serum is not acceptable.

Quite simply Mr Ashley will have to write a cheque for £12 million in order for the auditors to be satisfied that this is a going concern until June 2015.

That’s twelve million pounds and he would have to lodge it in the RIFC/TRFC bank account.

Only then will Deloitte sign off on the accounts.

The world renowned firm of auditors are still sore at the aftermath of the deal they thought they had for the accounts last year.

The £2.5 million credit line from shareholders (including Ashley) disappeared during the twelve month period that it was meant to be in place.

Despite the rather small size of the company Deloitte have a top team in place working on this because they know of the potential reputational damage if lots of bad stuff comes down the pipe.

If there are no accounts then there will be no AGM and for a publicly listed company that could mean a hefty fine from the Stock Exchange chaps.

I have been advised that these can be in the region of £200,000 to £300,000.

However as was pointed out to me by an Ibrox insider a fine of £50,000 would present a problem at the moment.

The last £ 1 million from Mr Ashley gets the operation to the middle of December and no further.

Further external assistance will be required to make payroll next month.

I understand that other bills are mounting up including one for Wi-Fi services.

Sources inform me that the overall bad news for the internet bill is compounded by an onerous add on.

The simple truth is that there is not money there to pay it.

Moreover I would not be surprised if the AIM chaps have served notice on the NOMAD that their clients RIFC are in the frame for share suspension.

Of course, that is merely speculation on my part.

I understand that the Sports Direct magnate is currently rather miffed with some of his close associates in the Blue Room.

I think it would be a fair characterisation to say that he feels that they did not fully apprise him of the severity of the financial situation at Ibrox.

Of course if Mr Ashley decides to Do Walking Away then that really is a game changer.

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