Only a matter of time

As 2012 began I was very clear that it would be last year that Rangers would ever see.

The day after they entered Administration I knew that there was no way out.

I stated that Rangers were doomed and so it came to pass.

The mainstream media did finally catch up with the Rangers story and this time Charles Green, just like with Craig Whyte, initially got an easy ride as well.

I thought that liquidation would be the end of the matter in that the assets would be transferred to a NewCo and then a debt free ersatz “Rangers” would be back in business.

What I did not expect for a second would be that the creation of the NewCo would have a second calamity built into the DNA of the new corporate structure.

The move to inform the Stock Exchange that RIFC owns Sevco 5088 as a subsidiary is an indication of a clear change of strategy.

The initial response by RIFC CEO Charles Green when he was challenged to respond to the claim by Craig Whyte that he had a beneficial interest about Sevco 5088 was that it was irrelevant.

Charles reassured his valued customers that Sevco Scotland was where the action was.

Now by claiming ownership of Sevco 5088 RIFC are saying that the original acquisition vehicle is VERY important.

I believe this change has been informed by expert legal advice.

It appears to be a strategy to dilute Whyte’s claim on the assets as opposed to saying that he has no claim at all.

Although that may make the financial hit more manageable for RIFC it doesn’t get rid of their potential SFA problem.

It was a stipulation of allowing New Rangers into the SFA that Sevco had “no connection” with Craig Whyte.

This is a problem for the SFA, but I suspect that they will show leniency on the current custodians of the stadium that John Brown played for.

What might happen is a hefty fine on Old Co-well that’s how these things tend to work on the 6th floor at Hampden these days.

Of course, that is rather like sentencing a corpse to death because the deceased once wore the same jacket that the murderer now wears.

What we have now is a situation where there is no clear ownership of the key assets of the business.

They fact that RIFC have appointed independent experts to investigate these matters shows that this is no trifling matter.

Even the most inventively malevolent scriptwriter from the green half of Glasgow would be pushed to create this catastrophic corporate entanglement.

What follows now is a reasonable scenario based on what I have been told by well-placed sources.

Valued customers of the Sevco franchise should probably stop reading now as the truth will only cause further upset.

The “A” word is now being candidly discussed as a possibility for New Rangers by people within the Glasgow media village.

It is known that New Rangers has been burning over a £1,000,000 per month and has no credit line from a bank.

That is simply unsustainable.

Such a statement will not come as a surprise to regular readers here and, as far back as last October, I was flagging up that the financial storm clouds were back over Ibrox.

If Administration did happen then it would probably be rather short in duration unlike the Duff & Phelps flying circus last summer.

There could, at present, be no asset sale to a consortium by an Administrator as the ownership of those assets is in doubt.

The Administrators would, of course, look for additional external funding to keep the business alive in the interests of the creditors.

However, if this was not possible then the company would be liquidated fairly quickly.

I have been informed by a legal specialist in that field that the legal wrangle over these assets (Ibrox Stadium and Murray Park) could take up to three years through the courts.

As ever the timescale of this won’t suit the impatient denizens of Planet Fitba, especially the ones inhabiting the green half of Glasgow.

I was certain by early 2011 that Rangers were doomed unless a genuine benefactor turned up.

We all know that instead of a sugar daddy they got Craig Whyte.

The body parts of the old club were then purchased by Charles Green and his shy consortium and once more I rejoiced.

I now see great similarities between what happened to Rangers and what awaits the tribute act at Ibrox.

Subsequently, I am convinced that the game is up for New Rangers.

All that is to be decided is the timescale.

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