Bill McMurdo Imran - The Deals

[ian1964 10,457]

http://billmcmurdo.wordpress.com/201...ran-the-deals/

 

 

 

As I blogged yesterday, Imran Ahmad is claiming he is owed £3.4 million in unpaid commission from Rangers for deals brokered by him in his time as Commercial Director.

 

These deals amount to a whopping £67 million in free and clear money for Rangers.

 

I have to say that since I blogged this, there has been enormous interest and a phenomenal response, much of it hysterical and illogical.

 

People have been speculating about mythical and mystical investors yet the actual list is of deals already known to Gers fans.

 

The problem is that fans are often emotive and don’t see things as what they are – in this case a business dispute.

 

Here is the list of deals that Imran Ahmad claims he is owed money on in his own words:

 

Sports Direct Puma is a 5 year contract and should produce profits of £4m per year for the next 5 years.

 

That’s £20m of benefit to Rangers I have directly negotiated on Puma.

 

£12.5m pre-IPO cash I directly negotiated and introduced.

 

£23m of IPO Cash I negotiated via Cenkos.

 

By buying Albion Car park I saved the club £3.5m over 10 years as lease was an astronomical 350k per year.

 

On Azure I got them to cough up another £7m over existing contract.

 

Bought Edmiston House for £1.5m which when developed will bring £2m per year into club.

 

My 5% bonus is only based on cash profit into club. Total size of Puma deal over 5 years is circa £100m of cash-flow but I’m only making my claim on the profit Rangers would get i.e. £4m per year for 5 years if that makes sense.

 

Let me be clear that I am not stating here that Imran Ahmad is owed this money. I am saying he claims he is.

 

He is also supremely confident of his case and that his claims will be verified by Charles Green.

 

Now people may fuss over this till kingdom come but the reality is that this is not a decision for fans to make; it is a business matter.

 

If Imran had an agreement in place for 5% then he has an entitlement it would seem and a court may back this up.

 

Much has been made of Imran’s suing the club but it has to be said this is a tactic used every day to encourage people to pay up.

 

I genuinely don’t know the strength of Imran Ahmad’s claim but like others who posted on here I will say this: If he is entitled to it, he should get it.

 

I will also say that, as someone who has sold for a living on commission, I have sympathy for people who “do the business” but don’t get weighed in.

 

As for people who think Ahmad should not sue for what he is owed, I would like to see them owed £3 million and not want to take action.

 

The real tragedy is that Rangers could still be benefiting from Imran’s money making abilities if he hadn’t been bouldered out the door by self-appointed crusaders.

 

There are some Rangers supporters who want to live in an alternate universe where players only play for the jersey and club officials take a pittance to cover their petrol out of love for the club. This Football Brigadoon doesn’t exist and never did, not at Ibrox, anyway. Even Bill Struth got embroiled in a dirty boardroom war which has parallels to the present one.

 

Does Imran deserve his 5%?

 

Like I said, regardless of fans’ opinions or how strongly they are held, it is not fans’ decision to make.

 

It is a business decision pure and simple.

 

If RFC and Imran can’t come to an agreement, it may be made via a legal verdict.

 

That might be regrettable but it is part of business and part of life.

 

And, however much some rail against it, we live in the real world.

 

This is not Brigadoon.

 

As Bomber would say: This is Glasgow.

 

One final thought.

 

Imran Ahmad had a contract of employment that states he gets 5% on all contracts negotiated in his role.

 

Whatever anybody thinks about his claims, he has a contractual basis for them.

 

It is my understanding that the entire board approved this contract, including Walter Smith. Malcolm Murray did voice reservations but it is industry standard for a Commercial Director to get 5% of all cash or any savings he/she brings into a club. This was checked with both the Newcastle and Arsenal boards before implementation.

[Mountain Bear 0]

Malcolm Murray had reservations? I'll bet he did, which is probably one of the reasons they wanted rid of him.

 

The pre IPO and IPO cash surely cannot be counted as a commercial contract in any normal sense. They were capital raising exercises. Also, he was handsomely rewarded in 1p shares for his efforts there.

 

The Edmiston House and Albion purchases are also pretty tenuous as they were asset purchases without any contractual income attached.

 

This is indeed Glasgow and we know a chancer when we see one.

[Bluedell 5,356]

Every director who approved the 5% commission should get punted. It's outrageous.

 

Some of the reasoning here is dreadful. We spend millions to buy Edmiston House and the car park and Ahmad wants commission on income or savings whereas we are currently worse off financially. He did a deal for selling strips as if it's wonderful. It is a standard deal for a club so why should someone get cash from every strip sold? He will be wanting cash from every season ticket sold because he put an advert in the Rangers news next.

 

Mcmurdo's attitude here is deplorable and obviouly has no concept of "Rangers First".

[Davie P 4]

Personally, I believe that to be earning a salary of 300k per annum plus an additional 5% comm for doing your job, is absolutely outrageous. However, you can be sure that CG steamrollered the board into accepting this contractual obligation, and if so, then we are bound to pay this.

 

I would comment on these as follows:

1. We were earning money from JJB and Umbro prior to the Sports Direct/Puma deal. The benefit payable should be for the difference only.

2. Commission is payable when money is in the bank and not up front. A lot can happen over 5 years!

3. Buying Albion Car Park - How is this a commercial deal? Any financial director should be able to see the long term benefits of purchasing versus leasing. If it required IA to point this out to BS, then BS should return his salary, never mind his bonus.

4. Buying Edmiston House - Is he including the cost of the development needed to achieve a financial return? i.e. there would not be an immediate profit.

5. McMurdo has dug himself into a hole with his support for CG and IA. Here's a hint Bill, when you find yourself in a hole stop digging, the hole is just getting bigger!

6. CG, IA, BS, and the rest of the carpetbaggers, GTF!

[sannybear 0]

Absolute madness , I am actually beginning to question McMurdo`s sanity , between this and his religious rants he makes leggo seem tame and sensible .

[rbr 1,247]

Completly agree with Bluedell and as for McMurdo hes turning into lord haw haw

[chilledbear 16]

That's the problem going forward, even if we have a changes at the top, what deals have been struck in the meantime.

[plgsarmy 111]

Why would the contract for an employee have to be approved by the Board? I'm sure I read somewhere recently that the CEO or Chairman could do that. IA was not on the Board so would they have to approve it?

[forlanssister 3,060]

No trumpeting of the Tennant's deal?

 

I wonder why?........

[chilledbear 16]

No trumpeting of the Tennant's deal?

 

I wonder why?........

 

Not more sh-t to hit the fan?