Pollyanna goes to Ibrox

I am indebted to my scrum-half buddy in the Square Mile for the following: 

“There are a few interesting points emerging from these accounts….

Within the strategic report, Mr Murray indicates that additional facilities, over and above those required to continue to fund the trading operations, can be made available as and when required for investment in the team. He has also indicated that RIFC has agreed that the £18.1million owed will not need to be repaid until 31 January 2017 at the earliest.

“It has also been stated that on 24 December 2015, the loan to Sports Direct was repaid.

“On the accounts themselves, the balance sheet shows that the cumulative losses at 30 June 2015 were £31.7m.

“Yes, in simple terms, in just over three years trading, these losses have amounted to this figure.

“The losses for the year to June 2015 were £6.6m, and the losses for the previous year were £7.2m. By deduction, this implies that the losses for the first 13 months to 30 June 2013 were £17.9 million.

“The accounts of RIFC show accumulated losses of just £15m, so there is a significant difference in both figures.

“I suspect that the bulk of this difference may be a goodwill write back in the RIFC accounts, but this requires further investigation to clarify.

“What is goodwill write back?

“Goodwill is the difference between what you pay for an asset and what it is actually worth.

“What is the more accurate extent of underlying losses of the footballing operations, £31.7m or £15m?

“It is definitely the £31.7m.”

Sources inform me that Sevco’s accounts were audited by those fine folk at Campbell Dallas.

However, I understand that they had no hand, act or part in the compilation of RIFC’s interims.

That document, I am told,  was authored by someone in the finance Department and Mr Paul Murray.

The latter, as always, toiling away pro bono.

Of course, Friday night is an excellent time to bury bad news, especially if the local media are onside.

For the avoidance of doubt,  your humble correspondent is always in an offside position.

The accidental success of this site, when I am not down the word mines, largely comes from the fact that you dear reader are confident that the content here is entirely lamb free.

To that end, I understand from an excellently placed source that at least one RIFC director is close to being maxed out because of his involvement with this shambles.

The New Regime are well aware that, regarding business sustainability,  they are put in the shade by their larger richer neighbour in the east end of the city.

If only, say, some European monies could be accessed to pave the way for a better approach to Ibrox.

That would be nice.

Wouldn’t it?

The accounts of The Rangers Football Club Limited  (formerly Sevco Scotland Limited), according to Rugger Chap, indicates that the shares in the parent company Rangers International Football Club (RIFC) are effectively worthless.

Many committed supporters bought shares in RIFC more than a year ago.

The only people to benefit from that transaction were the vendors.

With every penny needed to keep the lights on at Sevco then a Direct Debit of £20.12 would be more beneficial than one of £18.72.

It would also be more accurate as to the birth year of the entity they are trying to keep alive.

I was heartened to hear that some of the supporters are starting to ask questions about the wisdom of buying RIFC shares in the first place.

I am aware that one group of especially Loyal supporters on this island offered to invest upwards of £2.5m in the faltering enterprise.

However, I understand that this generous offer has, so far, been rebuffed.

Recently there was an award-winning piece in the Daily Radar that painted a picture of harmony and brotherly love at Ibrox.

Of course, when it comes to the New Regime the Stenographers are instructed to play the Glad Game at all times.

Indeed, only Pollyanna could look at these numbers and not see trouble ahead.

Leave a Reply