Richard Wilson - An Opportunity

[chilledbear 16]

The coming days may yet bring a resolution to the sagas that continue to trouble Rangers.

 

The different factions are by now fairly well established, but not everything can be taken at face value. The politicking is more intense behind the scenes.

 

Tuesday's board meeting represents an opportunity. The Rangers directors will consider Charles Green's role as a paid consultant, and ought to also make a decision on the notice requisitioning a general meeting made by a group of disgruntled shareholders. The GM can still be avoided, if the board agrees before Friday to the resolutions, which are the removal of chief executive Craig Mather, finance director Brian Stockbridge and non-executive director Bryan Smart from the board, and the appointments of former Ibrox director Paul Murray and Frank Blin, the former executive chairman of accountants Pricewaterhousecooper.

 

Talks were held throughout last week in attempts to broker support for various positions. Mather and Stockbridge attended meetings in London with the institutional investors that have stakes in Rangers. Most of the institutions back the requisition, including Jim McColl, the businessman and entrepreneur who is a significant figure in the attempt to bring more corporate expertise and rigour to the board.

 

Green was also in London for a spell last midweek, although he did not meet Mather, whose attempts to reassure investors that the current board can still guide the club to financial stability were positively received. Nonetheless, the status quo looks the least likely outcome.

 

All three major fans groups have demanded the removal of Green, who has been a disruptive figure since his return as a consultant. The only individuals still prepared to align themselves with the largest single shareholder, and former chief executive, are James and Sandy Easdale, the Rangers shareholders and owners of McGills Buses.who want the current set-up to remain.

 

Personalities have dominated the dramas around the club, but it is finances that are more critical. Dave King, the former Rangers director, believes the club could run out of money before Christmas, while others are adamant it will be next March or April before additional funding is required.

 

With no credit facility, and all of the £22 million raised in last year's share issue already spent, the board needs to be credible before investors will feel comfortable enough to provide further funds. Mather is acutely aware supporters want Green removed. But if he cannot garner enough support from his board on this issue, he may feel obliged to consider his own position.

 

King and others are prepared to invest in Rangers in return for ownership stakes. Institutional investors will also be more willing to provide funds if the board is capable of running a streamlined, and transparent operation.

 

On Tuesday decisions need to be made that best serve Rangers, and allow the club to properly rebuild its business operations.

 

Should the GM be called, all sides will attempt to publicly and privately canvass further shareholder support. That will only further delay the alterations that are required.

 

http://www.heraldscotland.com/sport/football/tuesday-summit-could-lance-rangers-boardroom-boil.21903005

Edited August 18, 2013 by chilledbear

[chilledbear 16]

This sounds promising.

 

''Nonetheless, the status quo looks the least likely outcome.''

Edited August 18, 2013 by chilledbear

[Frankie 8,151]

Yes, agree with Wilson.

 

Hopefully the EGM can be avoided but I guess we'll soon find out.

[Zappa 0]

This sounds promising.

 

''Nonetheless, the status quo looks the least likely outcome''.

 

Yes, fingers crossed.

 

Have to say though, I can't see them walking without being forced out at an EGM. If the ones on McColl's list of directors to be removed had any inclination to do the honourable thing, I doubt if they would have been down in London trying to sweet talk investors last week.

[chilledbear 16]

Perhaps a compromise will be almost as bad as the status quo, we need them gone.

[der Berliner 3,249]

Yes, agree with Wilson.

 

Hopefully the EGM can be avoided but I guess we'll soon find out.

 

Yep, the "good thing" about this whole process is that it will happen in the forseeable future, not some unknown date like the EBT stuff et al. The sooner this is resolved one way or another, the better. The club needs a bit of respite on that level.

[bluebear54 0]

I suppose a lot has to do with all the politicking, not least how talks in London went, but I assume McColl will be talking to the same investors. The present board don't seem to have a good record of protecting investors' money, so who knows if the promise of a brighter future that's being painted is persuasive to these people. I don't see other alternatives from Green and co. and they would appear to be getting twitchy judging by all their other threats.

[andy steel 0]

Unless the much vaunted institutional investors are as fly by night as Cr**g Wh**e there's only one outcome.

 

As it stands, they're going to receive nothing by way of return from the financial wreck the club is; with McColl's reputation and Blin's know-how, they stand to get a return, although further down the line, no doubt, than they've been led to believe.

 

For the II's to vote against this they'd need to be out of their minds.

[bossy 0]

I suppose a lot has to do with all the politicking, not least how talks in London went, but I assume McColl will be talking to the same investors. The present board don't seem to have a good record of protecting investors' money, so who knows if the promise of a brighter future that's being painted is persuasive to these people. I don't see other alternatives from Green and co. and they would appear to be getting twitchy judging by all their other threats.

 

Yes, McColl will be talking to the same investors. His big advantage is that he is not on the Board or in the management team and investors are unlikely to be impressed by the circus that is Ibrox these days. His other advantage is that he has lined up a couple of highly respectable corporate types with impeccable credentials in Murray and Blin. Big institutions generally prefer doing business with the same kind of people as they are.

 

His disadvantage is that things might not be quite as bad as they appear. It isn't unusual to burn through cash the way Rangers have and they can point to a few successes. Winning Div 3, acquiring Albion and Edmiston, commercial deals, season ticket sales, etc.. Also, McColls unwillingness to invest any more cash may count against him. Why would an institution vote for him and potentially put up more cash when he isn't planning to do the same?

 

Ultimately, the institutions are going to go with the guys who, they think, offer the best protection for their investment and the best chances of a return. They will be looking for management stability and a plausible business plan and vision going forward. I think they will be fine with Mather and Stockbridge but probably uncomfortable with Green and the Easdales. In fact, the institutional investors may force the compromise as the price of their support. And, if it becomes clear that they may lose the vote, Mather, Green & Co. may accept that compromise.

[simplythebest 0]

Why would Mather agree to leave the board?