Should the Bill Miller bid worry Rangers fans?

[Tannochsidebear 2,316]

In the annual accounts of RFC each year there is a section about related party transactions. This shows how much Murray Companies paid into the club to sponsor, advertise etc, and how much was taken out in reverse in services provided. For a few years in the last decade it was a ratio of 10 to 1 against. One year I recall was £11M out to Murray companies, £1M in.

 

Thats a lot of "not one penny".

 

I dont have a database of all the old figures and accounts, but obviously if you were so minded you could access it and see for yourself.

 

For clarity, I am not saying Murray trousered £11M, but the profit margins on those services would not have been insignificant.

 

Also, as BD says, the Assets that were sold to his companies from Rangers "at face value" and subsequently sold on. The contracts that were given to newco's of his that an independant newco would never have been able to get without any service history (Azure, Response). Those contracts with Rangers were the stepping stone to getting big contracts elsewhere (look, i've got the Rangers contract, you can trust me with your business).

 

He did move money around his empire, most notably the £50M a few years ago, which was branded as cash out of his pocket into the club at the time, but he also was able to use our big annual losses against profits elsewhere in his group and recoup some of that.

 

All easily checked on studying the accounts over the years, as has been done on the boards at the relevant times.

[calscot 0]

I've been thinking (so watch out):

 

Rangers assets are worth around £115m (according to D&P)

These are transferred to newco by Bill Miller who pays £11.2m into oldco, for the assets.

 

That's a good deal by anyones standards surely? So anyone wondering what he gets out of it....

 

I think the values are fanciful in that if there were 10 rich football or rugby clubs looking to buy a 50k seater stadium in Glasgow, it would probably be worth at least £70m as it would cost more than £200m to build a new one. However, this is not the scenario as only Rangers would want to play there.

 

As a piece of real estate for development it's worth next to nothing as there is plenty of dirt cheap land around it which would require less demolishing and wouldn't need care to preserve a listed façade. And also image what it would do to the like of Tescos profits if they turned Ibrox into a supermarket...

 

Those amounts were just notional to prop up a pretty dire balance sheet to make the club look solvent.

[Darthter 542]

The assets are only worth what someone is willing to pay!!!

[forlanssister 3,050]

The assets are only worth what someone is willing to pay!!!

 

A rare nail on head moment!

[Guest Dutchy]

So we're worth £11.2 million then?

 

Somebody's going to cash in.

[GovanAllan 0]

So we're worth £11.2 million then?

 

Somebody's going to cash in.

 

If Miller can get us debt free and running to the UEFA rules and a successful team on the pitch, he will rack it in when he comes to sell whenever that is.

[Guest Dutchy]

The thing I'm not too sure about is this newco thing and never mind the SFA and SPL, UEFA may not let a newco take part in their competitions for 3 years, which is their present rules. Can we convince them that Rangers FC, or whatever we're called, that we're essential to the European game?

[calscot 0]

Doubt it...

[GovanAllan 0]

If we have to cut the wage bill as much as it seems, it may not be a bad thing to circle the wagons for a couple of seasons and get the team right at home before we plunge back into Europe.

 

You can still organise a couple of glamour matches during the season to keep the coffers ticking over.

[ian1964 10,430]

RANGERS legend Sandy Jardine has encouraged all fans to get behind Bill Miller's bid to take over Rangers.

 

Jardinie spoke a length with the highly successful American businessman today and was impressed with what he had to say.

 

Administrators Duff and Phelps confirmed Mr Miller as preferred bidder this morning and Club Ambassador Jardine - who also plays a key role in the Rangers Fans Fighting Fund - is keen to reassure supporters.

 

Sandy commented: "I spoke to Bill at length this afternoon and took great comfort from what he had to say.

 

"I told him our supporters want honesty and transparency and I was impressed with what I was told.

 

"He wants to get Rangers Football Club back to good health and is eager for fans to have fun and enjoy their football.

 

"I know he is working extremely hard behind the scenes to conclude a deal as he wants to make the Club work.

 

"Our supporters don't know a lot about him but I was delighted with what he told me and he is clearly determined to get the Club back on track.

 

"Bill has also spoken to Ally McCoist today and outlined his plans to fix Rangers. I would encourage all supporters to get behind him and unite as he is stepping up and doing all he can to save our club and preserve its history.

 

"His plan does not involve liquidation, there is no doubt about that and I have to say I was left feeling very positive after our conversation."