Fever pitch

I think it is fair to say that the current mood around the club that currently plays at Ibrox is rather febrile.

For example Tuesday 10th June was a rather busy day for all those concerned with Rangers International Football club (RIFC).

As had been trailed here some time ago the Share Option is now happening.

At the meeting agreement was finally reached on Murray Park.

I would be very surprised if it is available as a training ground for Ally McCoist’s men next season.

There is now broad agreement that Murray Park is simply unaffordable and letting that situation drift is not an option.

I understand that a buyer is currently being sourced

However, rumours in dignified circles last week that the training ground had already been sold were rather wide of the mark.

Some of the main players in the parent company were at a location in Edinburgh.

The Institutional Investors were represented by a chap who was at the offices of Daniel Stewart & Company, RIFC’s NOMAD.

The wonders of video link meant that the meeting could take place over two locations.

During the meeting the Sale & Leaseback of Ibrox was once more re-visited, but discounted after several practical difficulties were examined in detail.

Given the success of the Season Ticket strike then the next twelve months will be a damn close run thing.

However with a bit of luck RIFC and their subsidiary The Rangers Football Club (formerly known as Sevco Scotland Limited) should be able to continue to trade.

Apart from the Share Option it was also decided to go to the City with a Share Issue as soon as practically possible.

The main players in RIFC will have to underwrite this offering and it is hoped that it will bring in around the same amount as the Share Option (£8 million approx.).

Two week from now the wages are due as usual (£1.5 million approx.).

However there are other monies due to be paid out this month.

Mr Letham is due his loan and, of course, this is the month when bonuses are due.

I understand that Mr Wallace is due 100% of his salary (£300,000 approx.) with tax paid by the company as part of the generous deal.

This will mean that the total cost to the company will be around £600,000 given the 45p tax rate.

Of course the Share Issue to the Alternative Investment Market will be a moment of truth for Mr Dave King.

This is his opportunity to buy shares in RIFC, lots and lots of them.

Such a course of action, though costly, would get him a measure of influence commensurate with his shareholding.

The management of the football team was also discussed and power was given to the Executive of RIFC (Mr Nash, Mr Somers and Mr Wallace) to liaise with the Executive of the football board to examine how things are progressing apropos footie matters.

Apart from the cash flow issues there is also the added complication that auditors Deloittes are pushing hard for a definitive evidence based business plan.

I understand this paperwork has to be with them by tomorrow, Friday the 13th.

There now seem two possible outcomes to this omnishambles:

(1)    The company/club/celestial entity simply runs out of money and suffers an unplanned insolvency event.

(2)    The new working capital will fund austerity and the toddler club will slowly start to find its feet in the real world.

I suspect that (2) is the more likely scenario.

However, a club playing at Ibrox, living within its means will not be fit for purpose as a vehicle for the expression of hubristic Herrenvolk invective.

And even though there isn’t a ball being kicked  at Ibrox The People are at fever pitch.


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