Our financial situation 'now'

[Danny 0]

Ok, before the takeover we were about �£22M in the red and had no cash whatsoever to spend. Our state was precarious and that wonderful chairman of ours even implied we could go out of business before hastily retracting his words and rephrasing.

 

But without any doubt we weren't stable.

 

Now we have a new owner, mooted at a �£52.5M takeover. He owns us now, because he bought SDM's shares. But what of our general situation?

 

Have we been fixed yet? Has he cleared us with Lloyds? Do we now have money to spend?

 

I've seen a lot of good words in the press and the optimism is sky high, especially now we've got 54, but in the cold light of day, are we actually out the predicament we were in, or is it still to be resolved?

[Bluedell 5,329]

Dunno. We haven't been given the information yet.

[pete 2,499]

I think all we know is that 18 million of the debt is or will be transferred to The Rangers FC Group Limited (the "Company") All the rest is words up until this time. 4million of the debt will stay with Lloyds and that is the mortgage on the Albion I believe.

[Danny 0]

Whyte is reputed to be worth �£700M. Why doesn't he just write off the debt himself ala Abramavic? Why does the debt have to be transferred to a 'safe house' instead?

[pete 2,499]

Whyte is reputed to be worth �£700M. Why doesn't he just write off the debt himself ala Abramavic? Why does the debt have to be transferred to a 'safe house' instead?

 

His businesses may be worth that amount of money but as we saw with DM that does not mean you have that much cash lying around.

[CumbernauldGers 0]

Hope we spend some money but lets not get in trouble again.

[Danny 0]

SDM stopped financing us when he stopped caring. Even 4 years ago we were still spending millions on the likes of Whittaker, Naismith, Thomson, Cuellar etc. And those signings weren't on the back of a big sale.

[Danny 0]

Hope we spend some money but lets not get in trouble again.

 

I doubt Whyte would risk this club in the way we've seen in the past. But I do hope he has a good financial plan to get us out of the red, if we aren't already, and to get us some new players, particularly in defence.

[pete 2,499]

Hope we spend some money but lets not get in trouble again.

 

A very sensible post.

[calscot 0]

As far as I can surmise from all we've heard, the debt apart from the 4M is effectively paid off. The transfer of debt to the parent company seems to be all about accountancy and avoiding a tax bill.

 

I can't see how Whyte would get the club for �£1 otherwise - where is the incentive for SDM?

 

As I've said before, I believe the payment of debt and the investment to be the de facto purchase price but with the money ploughed back into the club instead of SDM's pocket.

 

IF Whyte is as good as his word, then all will be fine bar a negative outcome in the HMRC case. The danger is that he's some kind of charlatan who takes us for a ride, but what are the odds of that?

 

Only time will tell. We're not in a position to do much about something we don't even know will come to pass, so I think it's best to give him the benefit of the doubt for the moment and enjoy what should be a happy summer.