Here’s a question to ponder and one which the BDO people might be interested in.
If Rangers assets were worth 5.5m in June 2012, and since then the business prospects have got much worse with Division 3 football and the main playing assets leaving, how come only 9.8% of Sevco is now worth 2m?
(a) Mike Ashley is a very bad business man (not very likely given his track record).
(b) Oil has been discovered under Ibrox, thus justifying a four fold increase in value despite the business worsening.
(c) The sale to Sevco of the assets of Rangers was at a significant undervalue.
Now I know which one I would bet on if I was a betting man…
I wonder what the BDO people will think?
jimk47
Agree. Phil and what does this say about the role of the Duff & Duffer in this fiasco? I thought that their primary duty was to get the best deal possible for the creditors.
August 16, 2012 at 9:38 am
Ben mcginlay
Wikipedia makes interesting reading. I knew this would happen. Whoever wrote this is obviously trying to convince themselves and everyone else there is no break in the clubs history. The way it is worded sounds convincing. But the facts aren’t correct. I really do hope something is done about this as regards to letting everyone in the footballing world what is the truth. I think it would take for the BDO to finish their investigation and UEFA to make an official statement. Starting to tire of this whole sorry saga.break the rules, don’t pay your debt, then enter administration, liquidation follows leaving the club with no debt and hardly any punishment. Then turning this getting back to the top as some kind of romanticised sporting legend. Absolutely disgraceful.
August 16, 2012 at 8:45 am
Casual Observer
Poor post, pandering to the haters rather than being objective. Surely the point is that Ashley is not investing in the assets but the newco, which is effectively a startup business? The new owners are building a business which is seen to be worth investing in by the likes of Ashley – the assets are just a part of that. Ashley’s investment seems to be more about securing merchandising rights anyway.
Makes me laugh as well that many of the comments speak of debts still owed, BTC outcomes etc., when the same posters are so keen to emphasise that Rangers are dead and the newco is an entirely different club. Which is it to be?
August 15, 2012 at 12:05 pm
Ben mcginlay
I’ve said it before. The Newco are liable for the Oldco’s debts(football) because the Newco were allowed to take the Oldco’s license, and part of that was that they were to honour the Oldco’s football debt. I don’t agree with this either. Newco should have had to apply as every other Newco should. This has caused a lot of misinformation to the public. Range s are still the same club etc.(which they are not) not helped by Sally McCoist, Charlie Green and most of the MSM.
August 15, 2012 at 7:45 pm
MarkeBhoy
Can i ask.. and i am no way educated on the matter just an observer.
Could the assets be undervalued due to the fact that there is six parts of ibrox – re the “title deeds” –
I.e thaat they can put a total value on it (180m say) but it cant be disputed because of noone actually knows who owns what part.
almost like a financial/property spiders web if you will.
On another note is there any truth that BDO are about to dispute the sale (or cant this happen)
August 15, 2012 at 11:56 am
The Truth
Something is only worth what someone will pay for it.
The individual valuation of a house may be £200k but 99 times out of 100 in a repossession auction it will not fetch that figure.
The sale of Rangers FC PLC assets to Sevco was much the same. Nobody was going to buy them at their individual valuations. If they were, they’d have been as well paying the creditors and rescuing the PLC as a going concern then restructuring.
Now, if you want to talk about corrupt transactions Phil, why don’t you tell us about the land deals around Celtic Park over the past 20 or so years, and why there is so much imbalance in what is being spent to regenerate the areas surrounding said hellhole compared to other areas of the city which are equally or more impoverished.
And by the way, I’m a Roman Catholic and Clyde fan before you or anyone else trots out the H word or worse.
August 14, 2012 at 10:59 pm
Ben mcginlay
I think you will find once the investigation is complete the deals surrounding the mob will show inconsistencies. As regards to land deals in and around Celtic park. You will probably agree that the area has improved drastically over the last decade, with more improvements in the pipeline. The regeneration is ongoing also because of the commonwealth games and Celtic park is a major part of these games. I don’t see how there is a comparison between the death of a cheating club and the improvements and regeneration of an area and surrounds of a football stadium.
August 15, 2012 at 7:50 am
Michael
These land deals you talk about, are about regeneration of desolate area of Glasgow I know there is many areas but you have start somewhere, also Glasgow is bidding for The Youth Olympics 2018. So more venue will be needed
These venues will be for everyone Race, Colour or Creed to use.
August 15, 2012 at 11:31 am
jimk47
As a former community worker and former Brigtonite, i can assure you that the improvements the the area were the result of the work of the East End Regeneration Project that began in the 1970s. Long before the redevelopment of Celtic Park was even thought about and not the result of any tinfoil hat conspiracy between Celtic and the so-called “Catholic Mafia” Labour Party, much beloved by West of Scotland Bigots.
August 16, 2012 at 9:50 am
alfredo67
They continue to cheat, not surprising as they emit a sense of grievance as to suggest THEY have been wronged…..Div 3 not a clue numpties???
August 13, 2012 at 4:18 pm
bresbhoy
If Ashley is willing to pay 2 million for 10% of Newco then I dont see a problem with it, it’s his choice is it not to invest in any company he wishes to and if he feels its a good deal then fair enough. Am I mistaken but he would be investing in a new company [tribute club) not the soon to be liquidated old co.
August 13, 2012 at 2:20 am
Garibaldi
Phil, going back to the point regarding Lord Hodge & the non conflict of interest report that is awaited, I would guess a submission date would have been set, good opportunity for you to use your excellent investigative journalism skills to find out if if this is this case, what do you think ?
August 12, 2012 at 6:46 pm
tony d
When do they get LIQUIDATED? or is that a daft question?
August 12, 2012 at 5:29 pm
Michael
Mike Ashley has been approached for a 10% off next time deal.
He can use The Rangers as a feeder club for Newcastle and he will take all
the rights for Newco Rangers Kits.
(JJB Sports and Rangers entered a 10-year merchandising contract in 2006,
when the club received an initial payment of £18m with a guaranteed
minimum annual royalty of £3m).
So given that he has purchased 10% of The Newco value say at most he has
invested £500,000 not a bad deal. Ibrox scrap metal men selling the jerseys again,
Newco same old financial plan, is this Subbuteo Monopoly Mr Green is proposing with the gullible Ally willing to take the rejects from Newcastle, up to 9 players I believe that means he has only to find 2 judging on Peterhead performance can I suggest McCoist and Durrant take to the park just to save money.
August 12, 2012 at 3:59 pm
Gaffney
Halifax town were demoted three divisions when they failed to exit via CVA. They never retained their history and reformed as FC Halifax Town.
Duff and Phelps were more supportive of the football club than the creditors.
August 12, 2012 at 3:35 pm
Ben mcginlay
This is what’s wrong, everyone says relegated and demoted when it comes to a club/company being liquidated. The facts are that the oldco is no more and the Newco applies to join the lowest league. This misinformation or use of wrong terminology suggests to fans of said club that they are still the same club. This is really starting to annoy me. The MSM in Scotland and Sky are the same, repeating the Range s word and talking about their worst period in their 140 year history, a new start, turning it into some of fantasy story of working their way back up to the top division where they belong. This is not the same club. The more this is repeated, the more people will believe it as true. No more range s, no more old f##m, no more lies. Let’s see a full investigation and a statement from SFA/ FIFA
August 13, 2012 at 9:20 am
Frankier
Walker said the assets were worth what someone was willing to pay for them. Why then weren’t they advertised for sale on the open market? Surely the SFA even, who wish to close their training facilities at Largs, would (or should) have made an offer for murray park. NCP would have nabbed the albion car park and Poundstretchers could have made a bid for the big hoose. In fact, it could have become the local coup without any need of conversion. Even one of the local junior teams would have offered more than the great “loyal” fans like the blue sh!tes were offering. I wonder what value will be put on the lot when green and his forty thieves go begging for cash to the moneylenders. Back to the £150million I bet.
I don’t think you would get much of a loan on assets worth less than £2million.
August 12, 2012 at 1:59 pm
John F
Lord Hodge asking about proof of the non conflict of interest from Duff & Phelps said:
“I do not want the administration to come to an end without having received that report.”
Duff & Phelps welcomed the statement which gave them the chance to prove there was no conflict of interest.
The report demanded by Lord Hodge was expected to be ready within three weeks and a further court hearing was likely to be arranged after that.
That was back in late June, over 7 weeks ago!
August 12, 2012 at 9:48 am
tambutnotbam
I could have written that myself.
In fact I`m sure I have…………. a couple of times…………lol.
But you are correct.
If Duff and Phelps cannot provide Lord Hodge with the evidence he demands than Charlie-boy does NOT own the assets of the oldRangers club.
August 12, 2012 at 2:22 pm
John F
tambutnotbam
Why do you think it could be that they have not sent their report to Lord Hodge that would prove their non conflict of interest?
Could it be that they cannot prove it or are they just trying to avoid liquidation for as long as possible to try and establish the newco? or maybe both. Either way it still would be a conflict of interest.
August 13, 2012 at 7:43 pm
John Walker
The assets in the sale were worth what people were willing to pay for them. Very few people wanted to own the assets of the former Rangers, hence the low value.
August 12, 2012 at 9:41 am
tambutnotbam
Charlie-boy has just given the game away and let the cat out the bag.
As of next Saturday Charlie-boy has announced that the club he has just taken over is no longer to be called Newco– but ….
NewCo-Castle………………………. lol.
August 12, 2012 at 9:25 am
Chazz
Didn’t HMRC approve the sale to green as they were one of the creditors, or was that just a msm perpetuated myth? Glad you are enjoying Philly! Cheers!
August 12, 2012 at 1:19 am
Phil Mac Giolla Bhain
HMRC had no say in the sale. They could block the CVA and they did.
August 12, 2012 at 1:42 am
dc77
Phil, are all of the oldco’s hard assets such as Murray Park & Ibrox completely beyond the reach of the authorities now? For example if they are found guilty of any legal wrongdoing can those assets be seized under the proceeds of crime act? I thought the law was changed years ago to prevent individuals selling assets at grossly undervalue sums to family members (usually wives) in the lead up to an insolvency event ?? Surely we have a similar case here…
August 12, 2012 at 4:29 am
Andybhoy
As rangers are still in administration and now we have a newco called the rangers,,how is it possible for them to officially have the same football strips.
August 12, 2012 at 12:04 am
262 KubN
Couldn’t beat Brechin (over 90 mins) scraped a draw at Peterhead in injury time. I wonder what their value has soared to after that?
PS I watched the Brechin game and laffed out loud when the Hunz started singing “When the Gers go up lo lift the Ramsden Cup …”. You just know you’re getting to them when they start taking piss out of themselves!
August 11, 2012 at 4:54 pm
The Wallace
Peterhead 2 Sevco 2
MSM Sunday’s headlines
Ally McCoist Delighted
No need to pay win bonuses!
“We need to keep a tight fiscal control if we are to survive in division 3,” says Sevco’s best ever manager.
Weel done Peterheid,
Hail, Hail.
August 11, 2012 at 3:26 pm
Pensionerbhoy
I think you definitely neglected to examine the calculations. Hope you are not turning your coat to that of shoddy journalism. This is what you would have discovered if you had just made the effort.
X + Z + V = S – D + D3 + E + B + T x £1 = T – / – / – = 5.5 + D = 100% x 100s = 20% – 10% + All the king’s horses and all the kings men = 8%.
See, easy when you know how – tut, tut!
:~))
H H
Have a great break in San F. You deserve it after the last few years’ graft. But not aqain if you do not improve your investigative promise as above :~))
August 11, 2012 at 2:38 pm
Jim Wood
David Tanner On Sky sports coverage of Newco at the Balmoor,
“It’s gullible in Lilliput.” I think he meant Gulliver, but hey ho.
Ps you could not make this up, they are wearing their training tops to play as the two strips they brought clash with the home teams kit.
Keep at them Phil.
August 11, 2012 at 12:49 pm
tallybhoy
PS forgot to say, Phil – enjoy your stay in the city of brotherly love!
HH!!
August 11, 2012 at 12:27 pm
Phil Mac Giolla Bhain
I am having a wonderful time. People here are great.
August 11, 2012 at 12:34 pm
James
Hope there’s no oil underneath Ibrox. The allies might carpet bomb the area to seize and control its assets. That would put a different slant on Poppy memorials at the dark place.
August 11, 2012 at 11:51 am
Gordon Taylor
I think there is an option d)The Scottish media’s investigative reporting is not quite up to scratch, and the figures reported are wrong.
To be honest, I would go for c), but can I phone a friend.
August 11, 2012 at 11:40 am
tallybhoy
Yes something is very rotten in the state of sevco!
I hope, and expect, nay DEMAND that BDO carry out a thorough forensic investigation into the goings-on at that dead ‘club’! Criminal proceedings need to be instigated against several individuals involved in the running of that ‘organisation’ over a number of years!
But I wont hold my breath!
HH!!
August 11, 2012 at 11:21 am
dombhoy67
It’s a house of cards waiting to fall. They are now back to their arrogant smug best bleating on about having ”no debt”. Lets put that one to bed…they have a debt, a very big debt that they will never be able to pay off. They have and owe a debt to Scottish football. A debt of the humiliation and shame that they have brought on Scottish football over the last twenty odd years. A debt that cheated and robbed the Scottish people as well as Scottish football’s credibility and integrity. They are a disgrace and are now officially the dregs of Scotland; the real Scottish shame.
‘c’ by the way!
August 11, 2012 at 10:04 am
Kevin
A, B or C…..umm…Phil, please can I phone a friend?
Keep ‘em coming! HH
August 11, 2012 at 9:45 am
Ignoranceisnodefence
Scottish football is totally complicit in this situation and it would not surprise me if they were also a ‘partner’ or had a share in ‘Sevco’.
But seriously, regardless of how much is unearthed by the liquidators, how much the administrators have ‘shredded’ the Scottish football authorities will take no further action as the are still happy to dance to their tune. (evident by all allowing them to still trade as Rangers)
Will HMRC and the legal authorities enforce the laws as per the Insolvency Act, in particular, the one regarding trading under the same name and then the associated history?
August 11, 2012 at 8:40 am
Kieran Shellon
“gratuitous alienation” anyone?
August 11, 2012 at 8:06 am
The Wallace
Do not forget Craig Mathers and Guy Gisbourne of Nottingham’s 10% only cost them £1 million. The figures do not add up. The club is out of Europe (therefore the big money) for at least 3 years, that is if they have near perfect success rate. The running costs of Sevco are still enormous for a third division team who cannot take in that amount of money in season tickets and tv rights.
In my opinion D+P’s handling of the CVA is very suspect, as I said before. They split the company in two, one part worth between £50 to £100 million and one part that was owing around £100 million. Sold the first part for £5.5 million and put the other part into liquidation.
This is surely some kind of fraud.
By the way I had forgotten MIM had written off £58 million, when Whyte bought the then Rangers for that famous £1,
Enjoy your hols,
Hail, Hail.
August 11, 2012 at 1:59 am
Ben mcginlay
The Wallace, once again you took the words right out of my mouth. I have in the past questioned the figures of finance and values. Even with an abacus the figures don’t add up. Wait till the professionals step in. I really can’t wait. Sally on the TV last night, again, gushing at the prospect of Nike Ashley getting involved, he really is way out of his depth when asked about suiters for the club. He just can’t help himself. As soon as he hears about anyone with apparent money, he doesn’t have a clue, he should stick to the football side, come to think of it, he’s not very good at that either. Come on the BDO, fine tooth comb time…. ps, Mike Ashley isn’t very well liked down Tyneside way, if he gets heavily involved there could be more heartache for Zombie FC.
August 11, 2012 at 6:43 am
andrew murray
Phil, just read your comment above, can’t agree more. Also the 5.5 million included d&p bill of over 3 million so it looks like they have grew 10 fold. If they beat peterhead later the value may rise and mr ashley may need 4 million for his 10%! Keep up the good work, njoy the game later! Hail hail!
August 11, 2012 at 1:45 am
Mark
maybe they have stuck gold underneath ibrox stadium, now they have Green Whyte and Gold Hail Hail.
August 11, 2012 at 1:42 am
Jim Hone
Absolutely spot on. The whole charade is beyond belief. Surely BDO will challenge everything that has gone on once they have access.
August 11, 2012 at 1:41 am
Al
clearly their stock has risen since they now believe they have won the BTC
lol
u gotta love em really
August 11, 2012 at 1:31 am
SamBrowneBelt
Phil
It’s a tricky one, but here’s my view:
I’m ruling out (a), as Mr Ashley is, apparently, a billionaire (no mention, yet, of wealth off the radar);
Regarding (b), I’ve scoured the MSM for news of oil under Ibrox and I’ve found nothing – this isn’t conclusive, of course, as our MSM doesn’t always get the big stories; on the other hand, rumour has it that it was oil speculation that led to Bomber Broon demanding to know who owned “thae title deeds”.
(c) just can’t be true, as that just couldn’t happen … could it?
So, on balance, I’m going for (b). Is there a prize for winning entrants?
August 11, 2012 at 1:30 am
Craig Whyte's Liquid Eyes
Take into account that something like £2.75m of that was for assets in the form of players with a realisable resale value who all ‘did walking away’, and the actual increase is closer to ten-fold!
August 11, 2012 at 1:19 am
Delthetim
Sorry phil but this is just lasy have followed and enjoyed your blogs over last good few months. We are all known its under valued. The question is how are they get players in and how can they pay for them. We on the other hand not one new centre half or centre forward. Murphy please
August 11, 2012 at 1:15 am
Ben mcginlay
This is what’s puzzling normal minded people. Celtic are sticking by the rules, that is why they have to be cute in the transfer market. Also loss of revenue due to Oldco’s cheating and destroying he integrity of just about everything football in Scoland.
August 11, 2012 at 6:47 am
Laurie M
Phil, When is the handover from Duff and Phelps likely to be? Have they satisfied (or tried to?) Lord Hodge re the “conflict” challenge? Also, what are the chances of Newco surviving all of the fallout?(considering the likely web of entailment involving most parties to date?)
August 11, 2012 at 1:10 am
franco
Mmmnn….think ill gamble on……..”C”….plz phil;-)
August 11, 2012 at 1:02 am
mick
Craig whyte in the 3rd of the trilogy “sting” films spring to mind
August 11, 2012 at 1:01 am
andy b
good find Phil…i would love it to all unravel when BDO storm down the doors- thieves and liars the corrupt lot of them!Mind you when this is going on our MSM will be busy screaming something negative about something green and white; Sir dodgy D can have no critisism GBNL
August 11, 2012 at 12:59 am