Dear reader the Sevco crisis loan season is upon us once more.
In February 2014, it was the Laxey/Easdale Loan and this time last year it was Sports Direct who intervened to prevent insolvency.
The most recent RIFC accounts again stated that external finance would be required, this time, the amount was £2.5m
Of course, in those accounts, there was no mention of that pesky £5m to Sports Direct that has seemed to have caused no end of confusion since the RIFC AGM on 27th November.
At time of writing my understanding is that it has not been accepted by the Ashley people.
This is due to the conditions attached to the monies by the New Regime.
There is no doubt that the current entity at Ibrox requires external finance to continue in operation this season.
Late last night I received this from one of my Square Mile pals:
“As per the accounts of RIFC,
The forecast identifies that the group will require up to £2.5m by way of debt or equity funding by the end of season 2015/2016 in order to meet its liabilities as they fall due. Further funding will be required during the 2016/17 season,
The quantum of which is dependent on future football performance and promotion to the SPFL Premiership. The Forecast indicates that an initial tranche of funds will be required in December 2015.
The accounts were published on 28 October, some nine weeks ago.
Here we are in the first week of January, and if we assume that of the ‘£6.5 million facilities’ made available, some £1.5 million was used in December for working capital purposes.
As of today, a further gift of £0.5m, SUBJECT TO APPROVAL BY FANS WILL BE made available, therefore, assuming that the Director’s forecasts are accurate, a further £0.5m is required to allow the company to trade until the end of the season.”
This chap has a seriously impressive CV in the Money Trade.
He will forget more about this finance business in the space of a lazy afternoon than I will ever know.
Hence, I ask him about this stuff.
Therefore, the excuse by the stenographers that this is beyond their pay grade doesn’t wash.
Yesterday the hacks were all breathless about the fans stumping up half a mill and this being matched by Mr David Cunningham King.
Then a statement from RIFC cleared things up.
Apparently South African domiciled entrepreneur would not be reciprocating after all.
Of course, it is important that The People believe that all is well at the Big House.
After all, they are the lender of last resort in this shambles.
The current Ibrox operation is a loss making business without a credit line from a bank.
That is exactly what Rangers (1872) was in the last year of its existence.
No bank would do business with the old club after Lloyds did walking away.
It is perhaps worth pointing out that in the recent RIFC accounts (P31) it was stated that:
“The forecast cash flows assume conservative amounts generated from player sales.”
This, of course, does not fit with the War Chest narrative.
The reality is that the New Regime are faced with very similar numbers to those that Mr Barry Leach and Mr. Derek Llambias were forced to confront twelve months ago.
The challenge for the current operation is to impose more austerity or risk insolvency.
However, this is not what The People want to hear.
This site has a track record in outlining inconvenient truths about the Ibrox operation.
As in 2011 when the Suave Billionaire was holding court about “front loading” I had my snapper in place to capture Sherriff Officers.
If the fluff from the stenographers can be discounted, then look at what is actually happening regarding player trading at Sevco.
As with the original Rangers, the mainstream media are looking the other way as a real story unfolds in front of the discerning Fitba public.
Fortunately, they are not relying on the hacks for their information.
That is why, in the digital age, many of their titles are circling the circulation drain…
Ok, now I know that you won’t read any of that in the Daily Radar.
You have to work out who you believe, who has the track record.
However, Act Two of ‘Rebellion’ now requires my best attention, and I have to send a synopsis of the play to a very sound man in Béal Feirste.