Analysis: the bigger picture of Charles Green's shares and Rangers' future

[ian1964 10,720]

By Richard Wilson:

 

Charles Green could never be expected to leave quietly.

 

It is only two months since he stepped down as a director, having previously relinquished his role as chief executive, but already he is back at Ibrox.

 

The role of "consultant" seems vague, but then Green wasn't an orthodox figure anyway. The tendency is to focus on personalities, but the significant issues around Rangers are found in the bigger picture.

 

Green remains the club's largest individual shareholder, having held 7.8% before transferring some of his stock to Laxey Partners, in what was described as a private transaction.

 

It is acting as the figurehead of a larger group of shareholders by which he assumes his authority, though. Green and Imran Ahmad, the former commercial director, are believed to claim to be able to call upon the voting support of up to 51% of the club's shareholders.

 

Rangers had entered a period of relative boardroom calm, so today's timing is significant. More than 33,000 season tickets have been sold, so essentially this year's income has been secured.

 

Although Green raised £22m in the Initial Public Offering of shares last December, it is understood that less than £10m remains in the bank. Some informed sources believe the club will run out of money during this season, and will need to raise additional external funding. The only investors likely to be interested are those who want to buy or control the club outright.

 

What is being played out now is a tussle over the cost of buying Rangers.

 

The share price fell dramatically last month, when a series of fairly significant shareholdings were sold, and from a launch price of 70p, the market value is now 41.5p.

 

Buyers would only pay around half that, though, since the club's financial situation, and the need for further investment, has to be taken into account. Green, who cannot sell until this December, and his original investors want to maximise their price.

 

Disinformation is rife, which leaves Rangers supporters frustrated and anxious. They will look to the one figure they trust beyond all others for an indication of the state of their club.

 

Walter Smith was brought on to the board by Green and is now chairman, but how he reacts to the former chief executive's return will influence how the support acts.

 

While the share price might not move in line with the mood of the fans, if the support agitates, and other investors do the same, another period of turmoil awaits.

 

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[der Berliner 3,725]

Rangers had entered a period of relative boardroom calm, so today's timing is significant. More than 33,000 season tickets have been sold, so essentially this year's income has been secured.

 

Although Green raised £22m in the Initial Public Offering of shares last December, it is understood that less than £10m remains in the bank. Some informed sources believe the club will run out of money during this season, and will need to raise additional external funding. The only investors likely to be interested are those who want to buy or control the club outright

 

What is he talking about? 10m of the IPO remains in the bank, plus the season ticket money, plus, I would assume, the Puma and Blackthorn deal? Who are his informed sources?

[Zappa 0]

10m of the IPO remains in the bank

 

Are you certain about that?

[der Berliner 3,725]

Are you certain about that?

 

No, I'm quoting the reporter.

[Zappa 0]

No, I'm quoting the reporter.

 

Wilson wrote "it is understood that less than £10m remains in the bank", while you wrote "10m of the IPO remains in the bank".

 

There's a distinct difference dB.

[forlanssister 3,110]

No, I'm quoting the reporter.

 

Why cut out the "less than" bit then.

 

Anyway at the end of June there was less than £6m left.

[Frankie 8,552]

If the IPO money runs out then we have no working capital. Will stretch finances in the lead up to summer 2014.

[foggy dewhurst 0]

do you think if there will be another share issue

[Zappa 0]

do you think if there will be another share issue

 

It's almost guaranteed unless another form of investment or finance is found because we're destined to have serious cash issues before returning to the top flight by the looks of things.

[forlanssister 3,110]

do you think if there will be another share issue

 

As we will be in need of capital and haven't full banking facilities then a share issue is the most likely outcome.

 

Green & Co want out they won't finance an injection of capital.

 

This is a bit of a phony war, it's all about the share price everything else is a side show.