Weather warning

I recall that some chap once said that there were no dark clouds over Ibrox.

Well this week a storm is brewing.

I see that some of The People are still clinging to hope that Mr David Cunningham King will be their deliverance as they currently are without a paddle in very dangerous financial waters.

Of course there is a distinct lack of unity around the boardroom table at Rangers International Football Club (RIFC).

However I was told by a well-placed source today that the ONLY thing that the RIFC board are united on at the moment is that they do not regard Graham Wallace as having a future there.

The narrative that was sketched out for me was that Mr Wallace has damaged himself by being associated with the Dave King charade.

I noticed that the name of Mr Norman Crichton reappeared in one of the tabloids.

This certainly surprised some Sevco insiders as the chap in question has been out of the loop for months now.

Of course the Stenographers are praying for the King fantasy to become a reality.

However, the numbers involved point out the delusional nature of the Dave King takeover.

The gorilla in the room is that this is a loss making business with no credit line.

It has been stated to me time without number from City analysts and business journalists that no commercial lender would look at RIFC as a serious proposition.

Yesterday I received more information apropos what transpired at the meeting with Mr David Cunningham King and the RIFC executive last week.

When the £16 million was broken down it transpired that the South African based entrepreneur would put up £8 million from his funds.

Mr Letham would contribute £1.5million.

When Mr King was asked where the other £6.5 million was coming from he appeared to equivocate somewhat.

He stated that there was a “consortium of likeminded Rangers people”, but when he was pressed several times to name these interested parties, but declined to do so.

Even if he does succeed in acquiring control of RIFC/TRFC then that will not be the end of the drain on his financial resources.

I have been told that the real cost of acquiring control of RIFC by buying up the shares AND buying out the ‘Onerous Contracts’ could be north of £50Million.

I do not know the extent of Mr King’s disposable wealth, but putting it into ‘Rangers’ now would certainly be disposing of it.

Moreover I rather suspect he already knows that.

However the lure of ascending the marble staircase might be genuinely too powerful to resist for this genuine Rangers man.

If does find himself ensconced there then he will have both hands around a very toxic chalice indeed.

If Mr King does not succeed that means that Mr Mike Ashley is really the only show in town.

The task for interested journalists is to investigate the precise nature of the rules of his boardroom game.

There are eight more pay periods at RIFC/TRFC from now until the end of the season.

I understand from well-placed sources inside RIFC that the company will meet the October payroll, but only just.

However, I am told that the possibility of them meeting the November payroll from their own funds is “…out of the question”.

Without access to a conventional credit line then we’re largely back at the situation in February this year.

Then shareholder loans saved the day.

Mr Mike Ashley will undoubtedly be carrying out a cost benefit analysis.

If he puts in, say, 14 million to cover payroll and basic costs to the end of the season will he get more out in commercial sales?

Alternatively are there enough assets to be securitised against such a sum?

My City analyst guy stated to me in stark terms that “Ashley will be in asset stripping mode now”.

Incidentally he didn’t use the term “asset stripping” with any pejorative intention.

For him it wasn’t personal, just business and he said that is how it is for Mike Ashley.

The sad reality is that without the top man at Newcastle becoming more involved the good ship Sevco might be holed below the waterline.

The only question is whether or not he decides if he wants to save his cut price cargo below decks by bailing out this rust bucket in Govan.

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