Is it debt or isn't it.

[wabashcannonball 0]

Is it debt or a rolling facility, AJ's interviews would have been hard to have been bettered by the master of waffle himself SDM.

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Hugh MacDonald, Chief Sportswriter

0 comments

 

Published on 17 Feb 2010

 

H MacD: Why has the debt not been published?

 

AJ: There is no requirement by the plus markets to declare your debts. That is not to say we are trying to be crafty in any way. The debt levels are impacted by cash and cash availability and our debt to Lloyds Bank is actually not a debt but a line of credit. That means it goes up and down day by day according to our requirements. Our only obligation is to reduce that line of credit by Ã?£1m a year. 
There is not a whole lot of incentive, in all honesty, to reduce the debt. There is an incentive to pay off the players [transfer fees] that we haven’t paid for in previous years. At the end of last year we had Ã?£9m of player debt to pay for players we have acquired in previous years. We have been able to pay almost all of that off with the cash we generated. That is particularly satisfying, because these are the issues that go under the radar.

 

 

What is your message to the fans, particularly the ones who have strong feelings over the presence of Donald Muir on the board?

 

Right now, we need Lloyds Bank who have been supportive of us. The bank is certainly disciplined and it does not want to be exposed to archetypal football club practices of buying players and not worrying about the next day. It does not want to be dealing with fans’ reactions, either. I am hopeful that the bank will continue to be collaborative in negotiations with potential owners who have an ability to invest in the club. I would hope too that it will be reasonably more flexible on the business plan that both Walter and I are concerned about.

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Clarity you gotta be kiddin.

 

http://www.heraldscotland.com/sport/spl/rangers/the-next-10-weeks-could-define-rangers-future-an-interview-with-chairman-alastair-johnston-1.1007305

Edited February 18, 2010 by wabashcannonball

[Bluedell 5,329]

I presume that he is meaning debt=loans, and not debt in the accounting sense.

 

Interesting that he is asked about Muir and he starts talking about the bank. :devil:

[Frankie 8,145]

Where does the �£9million paid out on outstanding player purchases AJ mentioned at the AGM come in? Is that accounted for in these figures or will we essentially still be �£31million in debt come the summer?

[OnlyOneAmoruso 0]

I'm fairly certain that this figure was announced as �£7m at the AGM.

 

Is this as simple as players were bought and arrangements were put in place to pay them over a period of time but we have now gave the clubs the money up front? I'd be quite interested to know exactly which players makes up the �£9m, I don't suppose thats something that gets specified though.

[Frankie 8,145]

It was definitely �£9million and that figure is also mentioned in the Herald interview. I wondered how we'd be in a position to pay such a sum within the debt restructuring previously talked about.

 

Surely it could only have been done using the �£13million profit now reported?

 

I notice Spiers talks about the debt now being around �£27million which would give a fag packet representation of this - although perhaps not accounting for the increased costs associated with the 2nd half of the season. Ergo, perhaps closer to the status quo of around �£30million is more accurate.

[Bluedell 5,329]

The year end accounts show creditors of �£8.6m. The large proportion of that is presumably players.

 

It will have no effect on the profit, but it would be reflected in the debt position.

[Frankie 8,145]

Speak English boy!

[OnlyOneAmoruso 0]

Was �£9m also mentioned at the AGM Frankie? I know it was mentioned yesterday and have no doubt it's the correct figure now. I was just sure I heard a lesser figure in October. No matter.

 

So, while the debt may not have reduced dramatically, is it feasible to assume that over the next 6-12 months we will see this happen given that we will not have these 'player payments' to pay in installments?

 

Boss indicated last night that �£25m ish would be an expected figure for the summer's debt.

[OnlyOneAmoruso 0]

Speak English boy!

 

 

Profit is still profit whereas this is not loss as such as its payments that were always due to be made.

 

I think....

[Frankie 8,145]

Was �£9m also mentioned at the AGM Frankie? I know it was mentioned yesterday and have no doubt it's the correct figure now. I was just sure I heard a lesser figure in October. No matter.

 

So, while the debt may not have reduced dramatically, is it feasible to assume that over the next 6-12 months we will see this happen given that we will not have these 'player payments' to pay in installments?

 

Boss indicated last night that �£25m ish would be an expected figure for the summer's debt.

 

Yeah, that was the figure mentioned as both Bluedell and I stopped necking when we heard it at the AGM...

 

I guess without the instalments, the debt could reduce further (and will do so quicker) but I'm sceptical as to the value at the moment.