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CASH gates will be in operation at tonight's Youth Cup final at St Mirren Park. Gordon Durie's under-20 side will face Hearts with the Youth Cup trophy at stake and you can back the side tonight in Paisley. The youths are aiming for success in the first final appearance for the club in three years. Tickets for the match, which kicks off at 7.30pm, and will go to extra-time and penalties if necessary, will be available at turnstiles this evening. Priced are £5 for adults and £2 for over-65s, under-16s and full-time students. http://rangers.co.uk/news/academy-news/item/6954-cash-gates-at-youth-final

Some comparisons with Ann Budge's Hearts and our Rangers from yours truly on TRS: http://www.therangersstandard.co.uk/index.php/articles/current-affairs/323-rangers-own-budgement-day-is-coming

Lorenzo Amoruso urges Rangers supporters to put their trust in Dave King to oust Ibrox board Sunday 11 May 2014, by Stewart Fisher LORENZO Amoruso last night became the latest former Rangers player to call for supporters to back Dave King and Richard Gough's plan to boycott season tickets and place the money in a trust instead as a means of forcing major boardroom change. The Italian has emerged as a fierce critic of the current hierarchy and feels that placing funds in Ibrox 1972 Ltd, the vehicle introduced by King and already being used by supporters groups' the Union Bears and the Blue Order for pooling their funds, is the only mechanism for bringing about change. "Too many people have been touching the heart of the club who don't deserve to be so close," said Amoruso. "They have ripped out the soul of the club. It's so frustrating for people like me who were running, chasing after every ball, spitting blood sometimes and going through so many operations. " I didn't do all that to see this situation develop. We want to see better people control the club, people who really care about Rangers. "I didn't really encounter Dave King much when I was a player because he was in South Africa a lot, but I met him," said Amoruso, who was in Glasgow this week. "He was a director but not involved in the way David Murray was. But he is a Rangers man and he is putting himself out there and he deserves credit and support. He has been there before for the benefit of the club. "This is a crucial period because season ticket holders have a week left before deciding whether to renew and from those I've spoken to I don't think there is a feeling that supporters want to renew and I think that is the best solution. "It's hard to believe I am asking for the stadium to be empty. But if that is what it is going to take to get this board out then that's the way it has to be. There are easier ways to solve this problem but some people don't want to listen. That's why we must take a hardline approach. I'm sorry, this board just has to go." http://www.heraldscotland.com/sport/football/lorenzo-amoruso-urges-rangers-supporters-to-put-their-trust-in-dave-king-to-oust-ibro.24190175

By Richard Wilson BBC Scotland John Brown is the latest former Rangers player to declare his support for the Ibrox 1972 Season Ticket fund. Brown, a fierce critic of former chief executive Charles Green, urged fans of the League One champions to withhold season ticket money two years ago. He has now joined Richard Gough and Lorenzo Amoruso in backing the fund, which has been set up by supporters' group coalition Union of Fans. "Rangers supporters must not give this board a lump sum of money," said Brown. The deadline for renewals is on Friday, and it is thought that the number of tickets sold is still in the very low thousands. During a question and answer session on Twitter last week, chief executive Graham Wallace admitted that sales were "slow". In their interim accounts, published in March, and in Wallace's business review, details of which were released last month, Rangers acknowledged that if season ticket sales dip below last year's uptake - which was around 34,000 - then the business's ability to trade as a going concern will be under threat. The UoF want fans to pay their renewal money into a fund instigated by former club director Dave King. The group will then seek security over Ibrox Stadium in return for handing over the gathered money in a single payment. This would prevent the property being used as security against future borrowing. Amoruso, the former Rangers captain, backed the campaign last week, while former Rangers manager Alex McLeish offered his support to King's intention to invest directly into Rangers International Football Club plc, by means of a new share issue. "I am not saying to my fellow Bluenoses, 'don't support your team'," said Brown, who left his job as Dundee manager last February. "Far from it. Buy your ticket on a match-to-match basis if this lot are still there next season." Brown, who left his job as a scout at Ibrox when Green's consortium took charge two years ago, pointed out that former player and manager John Greig refuses to currently attend games at Ibrox. He also said that he expects other former players to declare their support for the UoF initiative, although Mark Hateley urged fans to buy season tickets in an interview on the club website.

http://www.rangers.co.uk/news/headlines/item/6956-hateley-early-deals-key

........No it's time for Dave King to step up and pay. KEITH believes it's time for Ibrox investor King to put his money where his mouth is with the club's Murray Park training ground under threat. IF Dave King is serious about rescuing Rangers then he had better get a move on. In fact, come to think of it, he may have procrastinated too long 
already because this basket case 
of a business is staring its next disaster dead in the eye. Very soon someone will have to blink and before you know it this club could find itself minus a training ground if it’s not careful. In five days from now the curtain will come down on season ticket renewals and when it does,
bedraggled chief executive Graham Wallace might as well sound the emergency klaxon because unless there is a late stampede between now and Friday, Rangers will be right back on the brink. Raising money against Murray Park might then become almost inevitable, assuming insolvency is to be avoided as Wallace so bullishly insists it will be. It was interesting to note that the current board made no comment at all about the security of their Auchenhowie HQ when categorising Ibrox as ‘sacrosanct’ the other day. The truth is Wallace was busy discussing the merits or otherwise of raising funds against Murray Park with former financial director Brian Stockbridge at the turn of the year. Stockbridge wanted to push the button back then but Wallace at least had enough sense to resist. However, Wallace also made it clear that such a scenario might need to be revisited at a later date and if the season ticket revenue really is about to be obliterated then that date might well be now. Also, given the enormous scale of Rangers financial requirements, there would seem little point in simply raising a couple of million quid in the form a secured loan – like the deal Wallace brokered with those nice hedge fund folk from Laxey Partners just to keep the floodlights on till the end of winter. A full-blown sale and leaseback would certainly bring in significantly more money but at what price to a club which continues to be robbed of its soul from the inside? Which brings us back to the man who would be King and his plotting in South Africa. King has lent his name to the Union of Fans’ plan to starve the club of its biggest single source of revenue but he’s done so from a distance, almost half-heartedly, while this club’s supporters have been busy whipping themselves up into a state of high doh. That King did not attend the launch of this scheme in person, nor even make sure that his recently- recruited wingman Richard Gough was there to deputise, sent out more muddled messages to these fans who want nothing more than a leader in whom they can place their trust along with their cash. But then this is the Rangers civil war we are talking about. If there is a way to mishandle public relations then you can bet your last blue pound someone in this abomination will find it – even though you can barely move for gurus spinning furiously for one camp or the other. King says his attempted coup is not in any way reliant on public opinion, which is probably just as well because he hasn’t done enough to win over the rump of the fans. The vast majority want to believe in him but need to see tangible proof of his intentions. If Friday’s final tally of sold season tickets is as low as many are predicting then this will be an
indication of how little these fans trust the characters inside their own boardroom rather than a show of faith in the man who wishes to topple them. It would also leave the board with a couple of options – selling off the family silver or engage immediately with King, who is ready to talk. So far, King has done nothing much more than kick up a stink by issuing sporadic flurries of statements, most of which have told us nothing we did not already know. He has been heavy on promises – talking boldly of blowing £30million worth of his children’s inheritance – but feathery light on substance. So if he is serious about acting – and for the record I’m sure he is – then right about now would seem like an appropriate moment for him to start digging deep. King has made clear his reluctance to line the pockets of the very
shareholders he blames for making such a mess of the club. While this is an admirable position, the more time passes, the less realistic it appears. And all the while, Rangers fans are wrestling with their own consciences and fretting over whether or not to hold their club to ransom. King could remove all that
confusion and guilt from their
shoulders at a stroke by ploughing some of his own millions into the very account that has been set up for their season ticket cash. If those who run the club will not accept his money then why would any individual feel the least bit bad about hanging on to their own £400? Better still though, King should rethink his strategy and find out exactly how much it would cost to make those shadowy investors lurking behind the likes of Margarita Blue Pitch Holdings and Margarita disappear once and for all. Ultimately, this is what will be required if Rangers are ever to be properly ‘cleansed’ and now Friday’s iceberg is approaching, maybe those lucky enough to have stuffed their pockets with penny shares might realise it’s time to abandon ship. Even if they sold now for as little as 20p a share they’d still make mind-boggling returns on their investments. The thought of making them rich might make King’s skin crawl but, even so, this would seem like a price worth paying. He could always ask Fergus McCann who had to perform a similar U-turn when bringing down the Kelly and White dynasty across the city. A deal could even be structured that would allow King to be given some of the money back, much like the £2.5m Ann Budge has just had to pony up to make sure Hearts are a 
Lithuanian-free zone. King could do any of the above and instantly cement his status as a genuine hero among the club’s rank and file. The longer he waits though the more time is running out for his club.

Im glad he is employed so he doesn't make the available list for future Rangers manager. Worst Scotland manager of all time! Even though Locke wasn't great and Im no fan it does seem a bit harsh on him. Sounds a bit like 'thanks for getting us through the season when nobody else would but jog on"

Danny Lennon: St Mirren decide not to offer manager new contract Manager Danny Lennon has left St Mirren after the club decided not to offer him a new contract. The Paisley outfit's board met on Monday to discuss the future of Lennon, whose contract expires this summer. And they have confirmed Lennon has not been offered a new deal. "Decisions like this are never easy, however we would commend Danny for his professionalism and the dignified way he carried out his duties during a very challenging season," the club said. Lennon was named manager of the Buddies in June 2010, following a two-year spell in charge of Cowdenbeath. The 45-year-old led the Paisley side to League Cup final success last season with a 3-2 win over Hearts at Hampden. St Mirren struggled for spells of this term but Lennon defended his record at the club after securing Premiership safety. A club statement read: "The board of directors have today decided not to offer Danny Lennon an extension to his contract that expires in June 2014. "Danny and his players gave our club one of its finest days on 17th March 2013 and they will always be remembered by the club for that wonderful day. "The board would like to thank Danny for his service to the club over the last four years and wish him every success in the future." http://www.bbc.co.uk/sport/0/football/27371495

Thus far we have found that Graham Wallace can appear to talk a good corporate game. Indeed put that beside his legendery CV and we should be glad to have him on board, no matter what the price and foggy criteria to pocket it. Or should we ? Wallace is cutting his teeth in his first CEO role and it shows. When he is forced into details, instead of general and broad corporate nothingness he invaribly falls flat on his face with blatant contradictions, economies of truth and misleading lines. Sandy Easdale said in December that GW would be the public voice of the board. What has actually happened is either though design or a change in plan, Wallace has been reluctant to face an inquiring independent media. His press conference when presenting the business review was the first time in ages that he had braved the spotlight. He prefers a friendly RTV or more controlled interventions with the media (with expensive spin-doctor sitting beside him). The latest "engagement" being his twitter Q&A which ended up being more a O&G. Previously he had been a Chief Operating Officer (COO) at Manchester City and in the week the club is advertising that position I'd venture that this is a job that would better suit Wallace. I'll touch on one specific issue, scouting. Wallace has talked about the importance of this since December. When outlining what the 'extra long business review' (xLBR) would cover it included..... - "Develop and implement a Football Player Asset Strategy to take in First team squad, Youth Development and Succession Planning." http://rangers.g3dhosting.com/regulatory_news_article/363 It was also said that where possible/necessary, ongoing decisions and action would be taken before the xLBR was published. In January this year GW said the following in an newspaper article............. "At a time when this club needs to be identifying and scouting talent and acquiring talent at attractive levels our scouting and recruitment was largely dismantled. A small example of short-termism." http://www.scotsman.com/sport/football/spfl-lower-divisions/tom-english-interviews-rangers-ceo-graham-wallace-1-3275716 This type of infrastructure usually takes time to bear fruit so is it unreasonable to expect some of the building blocks to be put in place as quickly as possible ? The months passed by and nothing was or has been done. Then came the xLBR and this is what it contained regards scouting or similar. Business Review – Assessment of Current Operations There is no proper talent identification and scouting operation in place for professional players and at the time when investment in playing talent needed to focus on identifying value acquisitions, the Club dismantled its scouting and recruitment network. Future Strategy Invest in Academy Players – An Academy Development Fund will be created with dedicated annual investment, increasing over time, committed to the acquisition and development of high calibre young players at different stages of their careers with the target to increase the number of Club trained talent coming through to play in the first team at an early stage. Develop Player Asset Management – Developing playing talent is one of the major challenges at any football club. The Chief Football Operations Officer will also have the remit to develop the Club’s player asset strategy which will build a long term structure and plan to deliver playing talent for the Club and maximize value from player trading. http://www.rangers.co.uk/images/staticcontent/documents/RangersBusinessReview.pdf To wait 4 months for that level of detail with vague pointers to how it will be funded is extracting the Michael. They seem to be in no hurry despite targetting the Scottish League title within 3 years. Wallace talks the corporate talk but doesn't or isn't allowed to start walking. Mind you he needed to bring in a spin-doctor to help him with the talking. Importance to the Board: Spin > Scouting Anyone thinking 'benefit of the doubt', 'let's see what happens' may want to look at how this board have gone about business and tell me why they should be trusted. What strikes me is that the consistent MO of the various incarnations of the boardroom in recent years is to mislead,.... lie,.... play for time,.... talk of 'X' ambition,... vanish with a sackful of our money before accountability can kick-in and a new lot come in......... and start a variation of the process again. Wallace is an empty vessel but it's those in and around the boardroom who have him as their 'Pied Piper' leading us down the road towards footballing obscurity.

July 30th - Bournemouth v Rangers pre season friendly http://www.bournemouth.vitalfootball.co.uk/article.asp?a=358560 …

https://twitter.com/BBCAlLamont/status/465794873812353024/photo/1

Mourinho was right then, the league table was false. Chelsea lose at Villa and City win at Hull, 6 pts gap with 3 games in hand. Makes the run in interesting. Huge games later today, Man Utd v Liverpool and Spurs v Arsenal. Arsenals chance for the title, win today and win against Swansea in their spare game puts gives them a chance but I cant see them winning today with no strikers. Past titles winning teams had henry, Bergkamp, Anelka, Wiltord and Kanu. A knackered Giroud cant match that. Score draw 2-2 with Spurs Arsenal. Man Utd to beat Liverpool 2-1.

It is still 0-0 after 30odd minutes, Twitter feed here Starting line-up: Kelly Pascazio - Halkett - Gasparotto - Sinnamon Crawford - Hutton - Murdoch - Telfer Gallagher - Burrows Subs: Simonsen, Gibson, Stoney, Dykes, Ramsay, Roberts, Finnie

via @Rangers_Official Now that the season is over, this is a good time for me to speak to you directly as part of our ongoing Ready To Listen fan engagement programme. In order to do so I will be answering questions from supporters today in a Twitter Q&A on our official club account. You can tweet your questions directly to me on @RFC_Official using the hashtag #ReadyToListen between 1pm and 2pm. I will answer as many questions from supporters within the hour and look forward to speaking with as many fans as I can. Graham Wallace, Chief Executive Officer.

Wallace about to come under greater scrutiny re assets. Also, his man Tyrrell speaking to BBC behind McCoist's back. Today's Sun back page a deliberate attempt by sports editor Ian king - been called by Wallace - to discredit McCoist. Hardly subtle Ian. Put on twitter by someone who has been very insightful recently.

By mutual consent. Oh dear! Striker Kenny Miller moves on May 4, 2014 VANCOUVER, BC – Vancouver Whitecaps FC announced today that the club has parted ways with striker Kenny Miller. The club and Miller have mutually agreed to a contract termination. “We are thankful for the contributions Kenny made both on and off the pitch during his time in Vancouver,” said Whitecaps FC head coach Carl Robinson. "He has been a great role model, a constant professional, and someone who I consider a very good friend. We wish him and his family all the best.” Miller, 34, joined Whitecaps FC in June 2012 and during his time with the club the native of Edinburgh, Scotland, made 45 appearances in all competitions, registering 13 goals and adding three assists. Conference call audio from head coach Carl Robinson and Kenny Miller will be posted on whitecapsfc.com this afternoon.

Hi there, first post, great site. I read lots of blogs etc and this is the best one in Scotland by a distance. If Rangers FC cannot continue as a going concern, in the event of the Dave King faction starving the board out, what happens? How does Rangers International deal with this?

THOSE Rangers supporters who have so far not renewed their season tickets for next season are currently facing some stark choices. Do they pledge their cash to Ibrox 1972 Ltd, the company launched by the Union of Fans group this week, and hope security will be granted over the stadium? Or do they give their money direct to the club as usual and book their seats for home games in the SPFL Championship in the 2014/15 campaign? Alternatively, they can sit back and see how the stand-off develops during the summer months before deciding how to proceed. What the Light Blues fans do, and in what sort of numbers, will determine the short-term future of the troubled Glasgow club. There is certainly backing for the scheme to withhold cash in the company that has former director Dave King and club legend Richard Gough as trustees. That is despite the fact the Rangers board stated once again this week that it "has no intention of granting security over Ibrox to anybody". Many fans were alarmed when it emerged that both Edmiston House and the Albion car parking facilities had been used as security for two loans of £1.5million earlier this year. And there are serious fears that institutional investors, who have seen the share price tumble since the IPO in 2012, may seek to maximise the club's assets in future. George Thomson, a law student from Paisley who has been a season ticket holder for 10 years, is one of those who will be putting his money into Ibrox 1972 Ltd. He said: "I think there comes a point where you have to say: 'Enough is enough.' "And this, for me, is that point. I will be withholding my season ticket money from the club. "I am unhappy at how the club is being run and have no faith in this board. I think we need change at the top in order to move on as a club and I would like to see Dave King involved. "He is a Rangers fan and has money that he is prepared to invest that could make a real difference to us. How many of the current directors or investors can say that?" Yet, there are also many supporters who are unsettled by the path being taken by King and the Union of Fans and the implications it may have for Rangers. David Somers, the club chairman, has stated there would be a serious doubt over the Govan club's ability to continue as a going concern if fans withheld their cash. James Clark-Dick, a retired quantity surveyor from Uddingston who has been a season ticket holder at Ibrox for nearly 30 years, is against the plan. He will be renewing the three season tickets he has in the Copland Road Stand - he attends every home game with his wife and daughter - and believes he is in a "silent majority". He feels that withholding money from Rangers in the coming weeks could actually help to bring about the eventuality that King and the Union of Fans are hoping to avoid. "Withholding season ticket money from the club this summer until security is granted over Ibrox seems like a ludicrous idea to me," he said. "I don't think it is the right way to go. "My worry is that if you push the shareholders enough then that (utilising the club assets) is just exactly what they might do. It might be what they have to do." The 63-year-old feels there are many Rangers fans like him whose views are not being represented by the supporters' organisations which comprise the Union of Fans. "I have met and spoken to Chris Graham (the Union of Fans spokesman) on a few occasions in the past and he came across well," he said. "But Chris and others like him are described as fans' representatives. Well, I am a fan and I don't have a representative." Given the gross mismanagement of previous regimes at Rangers, Mr Clark-Dick admitted he was "cautious" about the current custodians of the club. However, he also has serious misgivings about South Africa-based businessman King getting involved and the company that he has set up. He said: "I'm not pro-board and I'm not anti-board. I'm neither. I'm pro-Rangers. And I don't think this idea to withhold season ticket money is a great idea. "If it hadn't been for this campaign then I think we would have been all right. And apart from this season ticket fund, I don't know what plan Dave King has for the club. "Everybody has criticised the Rangers review. But what more did people expect? You are only ever going to get the bare bones of a business plan in a review. "I have been a shareholder for 30 years. The last batch of shares I bought were the fourth lot I have acquired. And the review is the most information I have had out of Rangers during that time. "They detailed exactly where the £67million went. They showed that £26m was used up in one-off costs. "That is the most clarity we have had." What the future holds for Rangers, though, will remain shrouded in uncertainty until it emerges how many supporters have renewed season tickets and how many have withheld. At the moment, it is too close to call. http://www.eveningtimes.co.uk/rangers/rangers-fans-divided-by-loyalties-162650n.24161559

The Blue Order is confirming that we are reluctantly not renewing our season tickets for the 2014/15 season. It is, however, our intention to buy tickets for home and away games on a match-by-match basis so that we can continue to give our full support to our team. Unfortunately, until further notice, we are unable to accommodate any new requests to join TBO or for seat transfers into our section however we would welcome others to congregate with our group in BF5. As part of the Union of Fans umbrella group, TBO have been at the forefront of recent protests against the board and we strongly urge Rangers FC to engage openly with concerned supporters and potential investors to safeguard the club's future.

For your information... Blowing a raspberry at Dave King perhaps?

Backed by Dave King, Richard Gough and the Union Of Fans https://www.ibrox1972.co.uk/

We; the Union Bears would like to confirm our current stance with regards to next season and announce that we will not be renewing our tickets. Whilst we would like to have announced this sooner it has not been an easy decision to come to and one which we haven't taken lightly. It has been a painful sacrifice but we hope it proves to be an effective one. We believe we can't continue to put our hard earned money into a club suffering from mismanagement in all areas. We find it very hard to renew with all the uncertainty surrounding the club and don't believe that throwing cash into a financial black hole is the answer. If the situation changes, we will update everyone as soon as we can. But as things stand, the group will NOT be renewing and won't be back in BF1 next season. Thanks for your continued support the last few seasons. UB07

“We note the latest attempt by this board to mislead and hold Rangers fans to ransom. Their latest “give us your money or the seat gets it” ultimatum is just another in a long line of misjudgements this board has made about the mood amongst the support in general. The fact that those now in the crosshairs of this board are a lifelong Rangers fan who has ploughed millions of his own money into the club with no return, an iconic captain from one of the club’s most successful ever periods and a group of Rangers fans attempting to secure the home of our football club, says more about this board than we ever could. There is no attempt to deprive the club of funds. This is made very clear in the security proposal and the board’s ham fisted attempt to misrepresent this is one of the few transparent things they have done since coming to power. No money will be taken from fans unless security is granted and we are of the opinion that the board’s reluctance to discuss granting security may well rapidly change. Our public comments about Mr Wallace are not personal but have been based on his binding pronouncements on matters of huge importance which have been at best misleading, broken promises for engagement with fans, attempts to blame fans for the current precarious position of the club and a complete lack of any progress in bringing much needed investment into the club. We welcome the fact that the entire board have now publicly taken responsibility for all of these actions. Once again we see meaningless sound bites with absolutely no substance to back them up. The result, no doubt, of the expensive PR man hired by this board with more urgency than a Chief Scout. What “significant progress” has been made? How will this “bright future” we are promised come about when the investment committee have failed to secure a single pound of investment? Rangers is certainly “dear to all of us”, the Rangers support. We have no idea why this board would attempt to claim the same when there is not a single fan amongst them. We do not believe that Rangers fans will fall for this again. We’ve seen it far too many times in the past two years. “ - See more at: https://www.ibrox1972.co.uk/statements/#sthash.5zQnzija.oJfk0OFG.dpuf

http://vanguardbears.co.uk/ Evidence-Based Mathematics Written by: Ulster Loyal Wednesday, 7th May 2014 Much has been said and written about the finances of Britain's most successful sporting institution, Rangers Football Club. Speculation over the possibility of a second administration or likely direction of the share price has dominated Rangers based conversations in many a pub and many an internet forum. Not all of these conversations are helpful when they are presented in public, through various media, with no factual substance. They can subsequently cause unnecessary, widespread alarm and subject the club to destabilising influences, such as supporter boycotts and police investigations. The preferred way forward for all supporters should be to thoughtfully and objectively use the available information in Rangers' financial accounts to present a factual representation of our club's current business operations and forecast it's likely success going forward. Mathematics can help us to analyse the prospect of a company entering bankruptcy. On 25th December 2013, the following report was prepared, and posted on the Vanguard Bears forum, regarding the likelihood of Rangers going bankrupt: --- START OF ANALYISIS --- Rangers International Football Club (RIFC) has an Altman Z2-Score of 2.25; a statistical bankruptcy meter generated from a set of balance sheet ratios. Q – Are liquid assets a significant proportion of the assets? A – RISK •Testing: Working Capital/Total Assets > 0.2375 •RIFC Details: Working Capital/Total Assets = 0.018 Q – Do reinvested earnings make up a significant portion of the assets? A – SAFE •Testing: Retained Earnings/Total Assets > -0.1355 •RIFC Details: Retained Earnings/Total Assets = 0.34 Q – Are the assets relatively productive in terms of earnings? A – SAFE •Testing: Earnings Before Interest and Taxes/Total Assets > -0.082 •RIFC Details: Earnings Before Interest and Taxes/Total Assets = 0.019 Q – Does firm value compare favourably to its liabilities? A – RISK •Testing: Market Value of Equity/Book Value of Total Liabilities > 1.439 •RIFC Details: Market Value of Equity/Book Value of Total Liabilities = 0.89 Regarding the Altman Z2-Score: •Greater than 3.00 = good financial health. •Less than 1.80 = a company is in the distress zone and is in serious financial trouble; the distress zone is 80-90% accurate in predicting bankruptcy. •Rangers' score of 2.25 indicates it is not entirely safe from financial distress and investors should be cautious. --- END OF ANALYSIS --- The problem with supporters warning of the imminent arrival of another financial collapse at Rangers is that they have no statistical analysis to give credibility to their claims. When the share price was at around 33p, it was my opinion, reached using mathematical evidence, that the likely intrinsic value of Rangers was closer to 25.67p. I made similar comments in October 2013 when the share price was around 43p. The following analysis regarding an estimate of the true share price valuation of RIFC was also carried out in December: --- START OF ANALYSIS --- a) Discounted Cash Flow Valuation Method (forward looking growth model): 0p per share; 100% overvalued (due to negative cash flows that are not forecast to increase in the next 8 years). This is based on the following inputs: •The company's sustainable cash flow is -£12.61m (taken as the average between latest free cash flow (-£18.9m) and 3 year average free cash flow (which includes 2 years of £0 due to not having data for those years, making this valuation input more unreliable)) •Expected growth rate of cash flow of 0% for the next 8 years (3 year average cash flow growth, 5 year average cash flow growth, year 1 forecast earnings per share growth and year 2 forecast earnings per share growth are normally added as an input here but that data is not available for Rangers at this stage, making this valuation input more unreliable) •The company should settle into a long term growth rate of 3% (if we don't have reliable forecasts, we default to normal inflation levels and that is what we've done here) •Investors require a return of 15% for the risk they are taking (due to being a small cap company, 9% would be applicable to large cap companies) b) Earnings Power Value Valuation Method (zero growth model based on current earnings): 25.67p per share; 23.4% overvalued. This is based on the following inputs: •Sustainable level of revenue is £19.11m (latest revenue; 3 year average revenue and 12 month rolling forecast revenue is normally included but we don't have these inputs for RIFC, making this valuation input more unreliable) •Across the economic cycle, the operating margin in 7.8% (we normally take an average of a 5-10 year operating margin and a trailing 12 month operating margin but we don't have that data for RIFC, making this valuation input more unreliable) •On average the company see £0m of 'exceptionals' (we normally deduct the long term average of non-recurring charges but we don't have this data for RIFC, making this valuation input more unreliable) •15% of historic selling, general and administrative expense has funded growth (typically 15% to 50% of this is added back to a company's Earnings Power Value to make up for the fact some of that expenditure went towards funding growth as opposed to maintaining the existing asset base; Earnings Power Value only takes into account current earnings and is a zero growth model; we don't have enough data for RIFC on this value so we assume the minimum standard of 15%) •Each year, the company spends -£2.48m on maintenance capital expenditure (capex) (maintenance capex can be calculated by subtracting growth capex from total capex; again, we don't have long term forecasts for this based on historical figures so we are largely estimating these on limited results from the previous earnings report) •Investors require a return of 15% for the risk they are taking (due to being a small cap company, 9% would be applicable to large cap companies) c) "Relative to Sector" Valuation Method: 92.51p per share; 176.2% undervalued Based on the following inputs: When we compare RIFC to the Hotels and Entertainment services sector, we have the following valuation ratios for RIFC: •Price To Book Value: 0.39 • Price To Tangible Book Value: 0.57 • Enterprise Value To Earnings Before Interest, Tax, Depreciation and Amortisation: 3.14 • Enterprise Value To Operating Profit: 8.38 • Enterprise Value To Sales: 0.66 By comparison, we have the following corresponding valuation ratios for companies in the Hotels and Entertainment Services sector: •Price To Book Value: 1.95 • Price To Tangible Book Value: 2.19 • Enterprise Value To Earnings Before Interest, Tax, Depreciation and Amortisation: 12.7 • Enterprise Value To Operating Profit: 18.3 • Enterprise Value To Sales: 2.10 The Relative To Sector Valuation Method compares RIFC's valuation against the median multiples of the company's sector peer group. d) Net Current Asset Value Valuation Method: 0p per share; 100% overvalued Based on the following inputs: The company's current assets (long term assets are not included) are £16.5m • Cash And Short Term Investments (trailing 12 months) £11.2m •Total Receivables, Net £5.23m •Total Inventory £0.085m •Other Current Assets £0.000m The company's total liabilities are £24.7m • Total Current Liabilities £15.1m •Minority Interests £0.25m •Deferred Tax £7.82m •Total Long Term Debt £0.96m •Total Other Liabilities £0.52m The shares outstanding are 65,095,856m e) Net Working Capital Valuation Method: 0p per share; 100% overvalued Based on the following inputs: •The company's Cash and Short Term Investments are £11.2m • The company's Inventory is £0.085m • The company's Receivables are £5.23m • The company's Total Liabilities are £24.7m • The Shares Outstanding are 65,095,856m f) Tangible Book Value Valuation Method: 59.1p; 76.4% undervalued •The company's Book Value (total assets minus liabilities) is £56.9m • The company's Intangible Assets are £18.4m • The company's Goodwill is £0.000m • The Shares Outstanding are 65,095,856m --- END OF ANALYSIS --- The following commentary from the 10th of January 2014 further explained the information provided on the 25th of December 2013. --- START OF COMMENTARY --- "As you can see there are only three valuation methods that assign a value greater than 0p to Rangers; Earnings Power Value, Tangible Book Value and Relative To Sector. There are only two valuation methods that assign a share price that is higher than the current level of 28.5p. However, investors likely won't use these methods to value Rangers, and inform their investing decisions, for the following reasons, thus eliminating any mathematical reason to think that the current share price is cheap, based on an objective analysis of the company's financial results: Relative To Sector is an unreliable valuation because it compares Rangers to the Hotels and Entertainment Services sector, based on how the stock is classified by the stock market. It would be better to only compare Rangers to other football clubs but there is a shortage of listed football clubs and the sample size would be too small to draw any conclusions. The Tangible Book Value method is good at valuing the club's assets. However, value of assets is very different to the value of the business. If the assets are not generating sufficient income to make a profit, then investors lose confidence in the ability of those assets to generate future growth and profitable cash flows. As a result, the business is worth less to those that may seek to invest in it. If the company is liquidated due to large debts, the investors likely won't see the value of the assets they invested in because shareholders are below creditors in the capital structure of a business. Therefore, an investor does not invest on the basis of the book value of the assets of a company but rather the ability of those assets to generate a return on investment. Now, the only method left that assigns a value to Rangers, and would be a realistic evaluation of the club's true worth as a business, in the opinion of investors (which is largely what dictates the share price), is the Earnings Power Value method. This valuation metric values the club based on current earnings and assumes no growth in the company (which can't be measured anyway due to negative cash flows). It is a realistic valuation because it makes no assumptions about future growth, which can be inaccurate, and is only an analysis of the present situation. According to the Earnings Power Value method, Rangers is valued at 25.67p. Therefore, the current share price of 28.5p is close to being a fair valuation of Rangers. Rather than speculating on boardroom battles and their subsequent effect on the share price, I have simply looked at the value of the business from an objective, mathematical view. In the long term, a company's share price will converge with its Intrinsic Value. It's just mathematics and market forces. The downwards movement in the share price of Rangers comes as no surprise to me." ---END OF COMMENTARY--- The best way to comment on the financial situation at Rangers is by working with the facts, not by letting unfounded allegations cloud your judgement. History will show us which commentary - evidence based mathematics here on Vanguard Bears or the agenda-driven, emotional rhetoric from power-seeking, self-proclaimed fans' representatives - proved to be an accurate account of the financial picture at Rangers. It is now the 7th of May 2014 - Rangers is still operating and the share price is 23.00p.