Rangers need £10m to stay afloat - Malcolm Murray

[ian1964 10,410]

RANGERS will need a £10 million cash injection to stay afloat in the next 18 months, according to former chairman Malcolm Murray.

 

The club’s complex ownership structure, as well as the discontent from supporters at the continued presence of finance director Brian Stockbridge on the board, also has Murray concerned about the ability to attract such investment.

 

The businessman was one of the four “requisitioners” who failed to be voted on to the Ibrox board at Thursday’s annual general meeting, but Murray believes the outcome of that event, which witnessed loud booing of any contribution from Stockbridge, will not be “the line in the sand” hoped for by new club chief executive Graham Wallace, who has also admitted Rangers need “external funds” in the medium term.

 

Murray said: “Unless they can pull a few rabbits out of hats I don’t see who will invest in the club if the board remains exactly the way it is presently.”

 

Murray said. “In the next three months there have to be changes. I’m pretty sure they won’t be able to go back to the same institutional investors for more money with the current board set-up. The bulk of them certainly wouldn’t do it. The danger now is that the institutional investors pile out of this, because they are fed up. I’m not saying it will happen, but there is a danger that I’m worried about.

 

“If that happens, the share price goes down and the cost of raising capital goes up, by definition. This thing needs an injection of roughly £10m over the next 18 months.”

 

Murray claimed that 40 million 25p shares would be required to raise that sum.

 

However, issuing such a large number of shares would dilute the existing shareholding of current investors and Murray insisted that would be “terrible” for the financial institutions who have already put money into the club.

 

He added: “They could equally end up sitting on stock that isn’t highly valued but remains a global brand.

 

“However, it is a mix-up because it has institutional investors, fans, private investors, and this mysterious block of 40-odd per cent [of shares] that seems to control it [the club] in Laxley, Blue Pitch, Charles Green’s old shares and Mike Ashley.”

 

South Africa-based businessman Dave King has claimed that he was the only person he felt would be willing to invest in Rangers at present but chief executive Wallace presented a different picture. He said: “We will need investment as we go forward. What I don’t want to say is we need a figure of X million pounds because, until we’ve examined the structure of the organisation, and what we need [over] the next 18 months, it’s premature to put a figure on it. As I went round talking to institutions in the last several weeks, they said they were willing to increase their investment provided the club can demonstrate stability and leadership and the semblance of a solid plan.”

 

Wallace is not planning talks with King but neither does he rule him out. “I’ve never met Dave King or had any conversations with him,” he added. “When we have developed the plan to determine the level of funding we need, we’ll engage with a wide constituency. I wouldn’t rule anybody out. If that includes Mr King, we’ll deal with that at the time”

 

http://www.scotsman.com/sport/football/latest/rangers-need-10m-to-stay-afloat-malcolm-murray-1-3242193

[compo 6,128]

interesting article

[UCF2008 0]

I've read a few interesting quotes from Malcolm Murray over the past couple of days. In comparison to his pre AGM rants they make more sense and he also poses some valid questions. It does seem a bit odd for him to start making a valuable contribution to the debate after the AGM though. Too little too late if you ask me.

[der Berliner 3,240]

Been done next to death over on FF already.

 

For all this scare-mongering ... people do need to keep in mind that Malcolm was there throughout the start of the Green period. Malcolm and Co. have yet to tell the masses how they would change the state we are in and get those 10m over the next 18 months either. Wallace and Co. had 4 weeks to an AGM that might have seen them chopped, so next to no time to get investors in (who would have wondered if those to who they are talking to would be there a few days later). On the other hand, Malcolm and Co. gave the board months of trouble without actually telling the masses how they would change the course of events. FOR at the end of the day, the immediate actions would probably include laying off staff and players, which wouldn't go down well with potential backers amongst the support.

 

We have to wait and see how the CEO and chairman will tackle these problems, whether they can attract interest in the club from places thus far unknown, whether the institutional investors will invest more, whether we can e.g. take up a credit from King against Ibrox, so if we are unable to pay he'd get the keys ... and so on. For now I tend to believe Wallace if he says we are safe for the time being. I'm not expecting a rabbit out of the head within the next fortnight, but some key developments over the next 6 months.

[the gunslinger 3,366]

they have said any nomber of times they have people willing to invest in a club with a clean board. hell one of them said he would do it himself.

 

like literally dozens of times they have said it. last time was at the agm.

[BrahimHemdani 1]

I think we can expect some serious cost cutting measures and not before time perhaps.

 

However it's hard to see how he can save money on players wages unless we can ship some out on loan; can't see the likes of Cribari, Smith, Shiels etc attracting much transfer interest. Templeton possibly, but more likely a loan candidate as well.

[Crimson Dynamo 128]

The problem with statements like this is that it may well scare of potential investors though perhaps that is the plan

 

 

We may well need another 10million soon but we need to stop wasting money and live within our means. In the last 10 years how much money have we wasted it has to stop

[der Berliner 3,240]

they have said any nomber of times they have people willing to invest in a club with a clean board. hell one of them said he would do it himself.

 

like literally dozens of times they have said it. last time was at the agm.

 

I assume you refer to the requisitioners? Which one of them has the money to invest himself? McColl might have, but he is bound to other businesses according to his own words and wants to give Wallace time. Then there is the shadowy figure of Prior, who sticks his head out every now and then, says a few words and vanishes again. Do any of the others have the money to keep the club running then? The claim of having clean people at the ready is nice, but the same was said by Sandy Easdale and we have no idea who is on speed dial of Wallace and Somers.

[Max Rebo's Big Blue Nose 0]

I think we can expect some serious cost cutting measures and not before time perhaps.

 

However it's hard to see how he can save money on players wages unless we can ship some out on loan; can't see the likes of Cribari, Smith, Shiels etc attracting much transfer interest. Templeton possibly, but more likely a loan candidate as well.

 

Agreed. I would go as far to say that cost cutting would be essential regardless of the AGM vote and the make up of the board. To add makeshift players like Foster and Smith to our current wage bill was utterly baffling and should have been more scrutinized at the time

[the gunslinger 3,366]

i assume you refer to the requisitioners? Which one of them has the money to invest himself? Mccoll might have, but he is bound to other businesses according to his own words and wants to give wallace time. Then there is the shadowy figure of prior, who sticks his head out every now and then, says a few words and vanishes again. Do any of the others have the money to keep the club running then? The claim of having clean people at the ready is nice, but the same was said by sandy easdale and we have no idea who is on speed dial of wallace and somers.

 

murdoch said he would invest. He is extremely rich so far as i can see.