Rangers Accounts now available...

[Guest William_III]

Is that �£8mil not counted as part of the debt then? Or am I misunderstanding accounting terms again.

 

According to the chairman at the start of the year there was 9 million of payments still to be paid and it was NOT part of the 31 million debt.

[craig 5,199]

Being an accountant... but not having spent as much time as BD poring over RFC financial statements... I recall that BD explained that player transfer fees were considered to be "trading liabilities" - makes sense as playing football, and therefore the playing staff, are what generates your income.

 

As such, if the outstanding transfer payments are considered "trading liabilities" then they would NOT be counted towards the total debt figure.

 

All in all that would mean that whilst the debt figure has reduced by 4 mill we have ALSO reduced the outstanding transfer payments by 8-9 mill. If you took the combined total previously of 39 mill (30 mill + 9 mill) and looked at current situation which is 27 mill (27 mill + zero) things are much healthier than you would imagine.

 

One question I would have though is has the allocation of the payment to transfer liabilities been at the request of the bank ? I dont know how these deals take place but there is the chance that outstanding transfer liabilities dont attract interest payments whereas loans and credit facilities invariably do.

 

One would have to assume that either the bank want the club to have no transfer obligations ensuring that the only external finance provided comes from the bank themselves (easier to control, easier to see the full picture) or that transfer liabilities attract a higher rate of interest than the bank debt.

 

It normally makes most sense to pay off the "debt" which attracts the higher interest rate... obviously there are exceptions to this.

 

The numbers (debt + transfer payments) need to be looked at in conjunction to appreciate what has actually been achieved.

 

Not trying to defend Martin Bain here but if it is the case that he has increased his salary/benefits it is likely because he has met targets as given by the board - and if our overall debt (incl. transfer payments) has decreased by 13 mill -at the same time as we have won the CIS and the league (thus ensuring CL participation) then, whether you like it or not, it is a job well done by Bain in the eyes of the Board and, no doubt, the bank.

 

Yes, WS and his management team would have been integral in that and you can also be assured that they too got rewarded for it.

 

Personally.. as a capitalist... I have no real issue in a CEO being rewarded if he carries out his job and does it well. Bain has become more of a CEO since SDM left - prior to that, IMO, he was being rewarded to be SDM's lapdog.

 

BD will no doubt be feverishly poring over the midnight oil to provide financial analysis of the financials - I would have a look but unfortunately far too busy at work at present.

[metlika 0]

I thought Martin Bain took a cut in salary around the last time our accounts were released. Looks like his salary has gone up �£100k from the last reported figure I heard he was on. He has been running the club, in a way, while the chairman is away in America looking after his own interests, so he has done a good job. He has also been a better chief executive since Murray stepped down. I was not fond of him at all when Murray was around, bit like a yes man.

[Frankie 8,199]

Hi all newbie here!

 

I think the debt is only been reduced by 4 million or so is because we have also paid off 8 million in old transfer fees. If this was not the case the debt would have been reduced by much more.

Next year will be much better.

 

Welcome to Gersnet mate.

 

I'd agree with your analysis there - depending on a variety of other factors over the next 6-9months obviously...

 

[Bluedell 5,366]

BD will no doubt be feverishly poring over the midnight oil to provide financial analysis of the financials - I would have a look but unfortunately far too busy at work at present.

 

Me too unfortunately.

[Frankie 8,199]

Tomorrow will be fine gentlemen...

 

No excuses now, we're all busy!