Ticketus/Octopus getting a squeaky bum?

[forlanssister 3,060]

Maybe their arse's aren't covered after all.

 

Octopus Investments would like to clarify the position of Ticketus with regard to the current Glasgow Rangers coverage. Ticketus is one of the many entities into which Octopus Protected EIS invests. Ticketus has purchased tickets for Glasgow Rangers games for a number of seasons in advance, as it has done for a number of years previously with the club. Ticketus does not lend money; Ticketus is the owner of assets â?? the tickets. Octopus is continuing to work with the administrators and Glasgow Rangers on this matter.

 

It is very important to note that Octopus Protected EIS has been designed with capital preservation in mind. Our Specialist Finance team, who manage the money on behalf of your clients, structure every investment with this objective as the key priority. Businesses are selected because of the relative predictability of revenue streams and appropriate security being available, and then the deals are designed to reduce the impact of risks to the capital preservation mandate.

 

Extensive due diligence is performed on counterparties in every deal, and numerous potential scenarios are modelled and prepared for in the way the deal is structured. Where appropriate, additional protection is provided through extensive contractual obligations placed on counterparties and in some cases third parties. But it should also be said that no trading activity is 100% risk-free and, whilst Octopus Protected EIS targets capital preservation, it cannot, and does not, guarantee it.

 

Octopus manages over £300 million on behalf of clients in Enterprise Investment Schemes, and we remain confident in the product, our approach to investment, and the ticketing model. The first three tranches of the product have matured and delivered what we said they would â?? EIS tax reliefs and capital preservation.

 

We hope that this information is useful to you and that you remain a strong Octopus supporter. As and when it is appropriate to provide an update, we can assure you we will.

 

Best regards

The Octopus Team

[Bears 0]

Would they not be insured if it turns out CW has acted illegally with that deal?

[forlanssister 3,060]

A little more on the subject....

 

WD Chase de Vere and St Jamesâ??s Place both say they have a small number of clients invested in the Octopus protected enterprise investment scheme caught up in the Glasgow Rangersâ?? administration.

 

Octopus protected EIS invests in Ticketus, a London firm which has provided Rangers with â??working capitalâ? in exchange for future season ticket sales.

 

Last week, Glasgow Rangersâ?? administrators Duff & Phelps said it was unclear on the whereabouts of £24m advanced from Ticketus to the Rangersâ?? account.

 

However, the administrators released a further statement this week suggesting that £18m of the money has been accounted for and was used to pay off Rangersâ?? debt to Lloyds Banking Group when the club was taken over by current owner Craig Whyte last May. â??The application of the remainder of these proceeds is subject to further examination,â? says the administrator.

 

It adds: â??We are investigating all the circumstances surrounding both the purchase of the majority shareholding in Rangers Football Club and the flow of funds which stemmed from the transaction and were intended to fulfil the purchasersâ?? obligations at the time of the sale.â?

 

In a statement in the press, Whyte says: â??The Ticketus deal was by far the best way to protect the club, given the circumstances in that they have no security over any assets. The only person at risk from the deal is me personally because I gave Ticketus personal and corporate guarantees underwriting their investment; the club and the fans are fully protected. In terms of exposure, I am personally on the line for £27.5m in guarantees and cash.â?

 

Last week, Octopus issued a statement saying Ticketus is just one of a number of companies the Octopus EIS invests in. It added that Ticketus is the owner of the tickets and Octopus is continuing to work with administrators and Rangers on the matter.

 

An AWD spokesman says the firm sold the EIS as a higher-risk offering, through different tranches of the same EIS, to a small number of clients.

 

A St Jamesâ??s Place spokesman says the company sold the product to fewer than 50 clients, including partners, and has an exposure of less than £1m. SJP says it is continuing to monitor the situation closely.

 

Chelsea Financial Services head of investments Matthew Woodbridge says: â??It is disappointing and potentially damaging to an asset class when it is related to such a story. We await more communication from Octopus.â?

 

Octopus declined to comment on the issue.