More details on the Blue Knight's bid

[Craigy1881 79]

What i don't understand where is this money coming from? What will it be secured against? They aren't just going to throw cash at them to buy the club surely in a loan type fashion. We already have 100,000 season tickets ear marked for them by Craig Whyte so where is this other cash coming from.

 

I don't like this plan one bit.

[Bears 0]

One things for sure Tickitus won't be making the same mistake twice. I'd like to know what "collaterall/Security" they'll have? Ibrox? MP?

[calscot 0]

To me this sounds like the BKs have hardly any cash to put in and are just moving the debt once again except instead of a bank it's the football equivalent of Wongo.com with huge APR payments.

 

I can't see why we can't get a rich consortium who actually put up the cash and buy the club with their own money and run it debt free. It's not exactly expensive compared to a lot of clubs.

 

I can't understand how we owe Ticketus more than £18M plus interest. That seems to be all the money they lent us. Other debts for this season, outwith HMRC, are by all accounts pretty low and seems to be a maximum of £1.8M now the wage agreement is in place.

 

So it seems to me that if we did a CVA deal with HMRC then buying a debt free Rangers must be below £40M.

 

While that's a lot of money, the likes of David King put £20M in a while back without owning the club or getting a return. When you compare it to Man U, it's small potatoes. Even the maligned SDM put in over £50M of his own money and left with a quid.

 

£40M for a debt free Rangers? Sounds about right.

 

Working capital would be needed as well but a lot of that could be raised in a fan share issue while giving us pro-rata equity and representation on the board.

 

After that we'd just need a constitution that forces the club to be run debt free when possible. The way I see it we'd have to break even on the worst case scenario and use any extra income for bonuses and transfer fees. Contracts need to be restructured to change bonuses to be related to the increase in income that success brings. That way, if we're out of all the cups at the first attempt and finish third we can still pay the wages. In fact I think that should be the model for all clubs.

 

There could also be an introduction of a member system where the money raise is ring-fenced for transfer fees. So 60,000 members at £50 a go would give a £3M war chest every season which although modest, is better than nothing and can be added to. Member benefits could start with ticket and merchandise discounts (ie raise the price by 10% for non-members), free Rangers TV and a vote for the election of the fans' board member. Rangers TV could be used as the hub of dissemination of information to members and give a bit of the feeling of belonging (compared to the gaping silence that goes with being an RST member - in my experience).

 

However, the way the BKs are going seems to point to us limping along like the good old Lloyds days with big debt and inflated interest payments with no real way to work our way out of the mire and into a bright future. It's thumbs down for me at the moment.

[Guest Dutchy]

I had read, from Leggo no doubt, that Ticketus will be effectively acting as our bank. They're worth about £3 Billion and I'm sure they want to be involved as they want to be sure of getting their money back, or at least what they paid for.

 

I still don't trust the admins that CW is out of the picture.

[craig 5,199]

I had read, from Leggo no doubt, that Ticketus will be effectively acting as our bank. They're worth about £3 Billion and I'm sure they want to be involved as they want to be sure of getting their money back, or at least what they paid for.

 

I still don't trust the admins that CW is out of the picture.

 

If my company was worth 3 billion and could be getting screwed out of 24 million I would think twice about going back in to be honest. Given it is worth 3 billion they could walk away, albeit with egg on thier faces.

 

That said, if they are looking at becoming a financing company... not a bad place to start as the "financing company that helped save Rangers"

[der Berliner 3,267]

Are you missing the fact that he said Ticketus would pay for the initial cash purchase as well as working capital ?

 

Surely we would be hoping that the new owners, AT THE VERY LEAST, had the cash to pay the purchase price ? Sure, rich folks dont use their own money - but this cash LOAN from Ticketus will attract a reasonably hefty interest rate. Are the BK's paying the interest or will it be stuck with the club ?

 

Lots of unanswered questions still.

 

I did not miss that. I would assume that while the BKs can present enough money, but making it available in a timescale given by the admins might prove difficult. As opposed to Whyte, all BKs are probably real businessmen with real companies et al to show for it. So we actually have to wait and see what the BKs can actually put on the table.

 

Ticketus ... well, in this deal (sic!) it looks they have guaranteed access to the ticket sales, for years to come. That is virtually guaranteed income. We won't go away, so they have no reason to either, for the time being. Of course, I do assume that there is some deal in place with them, as they would probably (?) also fall under any CVA, no matter whether they belong to the bidders. What is for sure is that this lot has the money and has it available.

 

We do lack a decent amount of info (and I reckon we will sure not get all info some would like to see) though.

[Bluedell 5,348]

If my company was worth 3 billion and could be getting screwed out of 24 million I would think twice about going back in to be honest. Given it is worth 3 billion they could walk away, albeit with egg on thier faces.

 

That said, if they are looking at becoming a financing company... not a bad place to start as the "financing company that helped save Rangers"

 

The way you get £3 billion is by not walking away from £24 million.

[Zappa 0]

The more details I hear about the Blue Knights bid, the more worried I become that they successfully take over. I don't want the club to have anything to do with Ticketus, especially not in the form of using them to finance another takeover. The last thing the club needs is more debt.

[forlanssister 3,050]

If my company was worth 3 billion and could be getting screwed out of 24 million I would think twice about going back in to be honest. Given it is worth 3 billion they could walk away, albeit with egg on thier faces.

 

That said, if they are looking at becoming a financing company... not a bad place to start as the "financing company that helped save Rangers"

 

Having £3b under your control doesn't make you worth £3b. It's not their £24m it belongs to the individuals who invested with them.

 

I may be wrong but I see Ticketus's involvement more as a damage limitation exercise as it's not really in their interests to see us liquidated, the big question is how much damage they're willing to take and also how much our fans see as being acceptable.

Edited March 13, 2012 by forlanssister
Shit spelling (again!!!!)

[craig 5,199]

The way you get £3 billion is by not walking away from £24 million.

 

But they arent not just walking away from 24 million, it looks like they are increasing our potential liability to them.

 

"Good money after bad".

 

Sometimes you write a debt off BD, no matter how bitter the pill is to swallow.