DK in tomorrow's Sun

[BEARGER 1,829]

DAVE KING has savaged Rangers’ 120-day review and branded it good news for CELTIC fans.

The former Ibrox director dismissed chief executive Graham Wallace’s findings — claiming an office junior could have produced the same in a day.

[BEARGER 1,829]

From STV.

 

 

Former Rangers director Dave King has said the criminal investigation into claims chief executive Graham Wallace misled the club's shareholders should "extend to other board members".

 

The South African businessman has released a lengthy statement attacking the Rangers board after Mr Wallace released the findings of his 120-day business review to the Stock Exchange on Friday.

 

Mr Wallace announced that Rangers would seek the approval of current shareholders to launch a fresh share issue in autumn 2014. The club said they hope to raise between £20m and £30m over the next three years in fresh investment.

 

Mr Wallace addressed the media at a pre-arranged conference on Friday afternoon. He also revealed Rangers will make redundancies as part of its financial restructuring but said it would be a "small" number of non-playing staff.

 

But on Sunday it was revealed the chief executive was the subject of a police investigation after a criminal complaint by a Rangers shareholder alleging he had misled shareholders over the club’s finances.

 

Banker Phil Maher complained to Police Scotland about remarks made by the Rangers chief at the annual general meeting last December.

 

It is understood Mr Maher’s complaint is based on Mr Wallace’s claims the club has sufficient funds in place to operate until May despite taking out a loan of £1.5m. Police Scotland confirmed the force was investigating a complaint under the Companies Act.

 

Now Mr King has said he believes other board members were aware there was "insufficient cash" to last until the end of the season and expects the police probe to extend to them as well.

 

Mr King said in a statement on Monday: "It is beyond doubt that the CEO, and other board members, was aware last December that there was insufficient cash to last until the end of the season and the board failed to respond to my previous question in that regard.

 

"The CEO is now subject to a criminal complaint on this very issue but I believe that his comments were made with the full knowledge of the board. Certainly no one came out to contradict him. We should therefore expect any criminal investigation to extend to other board members.

 

"It is telling that Charles Green had to step down when under internal investigation and yet the CEO continues with his duties as before. If cash was wasted as a result of mismanagement then what steps are being taken to hold management accountable for this?"

 

£3.5m left in bank

 

After announcing the findings of his business review on Friday, Mr Wallace told STV that there was "a little less than" £3.5m left in the bank - the same figure given in financial statement in December.

 

Asked by STV if administration was considered or discussed at any point during Rangers' review, Mr Wallace said it had not. He would not go into detail about his own bonus despite fan pressure to reveal how much he will receive.

 

Mr Wallace said he would welcome investment via a share issue if current shareholders agree. In the executive overview of the report, an explanation is given to claims made by Mr Wallace at the club's AGM in December over having "sufficient cash in the business to fund the ongoing needs of the club in the near term".

 

The club then took out loans from shareholders totaling £1.5m just two months later. It is said that during the review process, it was "found that Rangers was in a more severe financial condition".

 

Mr King’s statement went on: "I have taken time to carefully consider and reflect on this long-awaited business review. This flimsy review is completely superficial and could have been put together in a day by a relatively junior employee.

 

"It falls well short of the strategic business review that we were promised. There is nothing to read between the lines, no sign of a coherent plan to save this club, and more importantly no hope for the supporters or shareholders. I find it difficult that any CEO would expect this review to be taken seriously. I would reject it if one of my CEOs presented such a summary review to me.

 

"The board still does not have a clear plan for raising capital despite knowing for some months that a financial crisis was looming.

 

"The board clearly hoped to muddle along by using the season ticket advances from fans. This review should reinforce to fans that this board cannot serve as an appropriate custodian for their season ticket money."

 

Related articles

 

Police probe claims Rangers chief Graham Wallace 'misled shareholders'

Rangers to launch share issue and make redundancies after review

[RANGERRAB 3,246]

So is deep pockets Dave going to launch a takeover bid then ?

Or will he try and force admin2 and get it on the cheap?

I suspect neither because he has no intention whatsoever of parting with his cash.

[BEARGER 1,829]

From Evening Times

 

Investment banker Phil Maher has made a formal complaint to police, and allegations Wallace misled shareholders at the AGM in December could be looked into.

 

The former Manchester City official told shareholders at the AGM in December that the Glasgow club had enough money to see out the season.

 

Now South Africa-based businessman King has urged police to include other directors in their investigation.

 

The Scot has issued a strongly-worded response to the 120-day business review released to the Stock Exchange by Wallace last Friday.

 

The 58-year-old, who has stated he is prepared to invest up to £50 million of his personal fortune in his boyhood heroes, called the review "flimsy" and "completely superficial".

 

DAVE KING STATEMENT

 

I have taken time to carefully consider and reflect on this long-awaited business review. This flimsy review is completely superficial and could have been put together in a day by a relatively junior employee. It falls well short of the strategic business review that we were promised. There is nothing to read between the lines, no sign of a coherent plan to save this club, and more importantly no hope for the supporters or shareholders. I find it difficult that any CEO would expect this review to be taken seriously. I would reject it if one of my CEOs presented such a summary review to me.

 

I offer a number of personal observations on the review:

 

 

1 - It is seriously wrong for this board to state in the review that at the time of the AGM (December 2013) the board, and the CEO in particular, believed that there was sufficient cash to last until the end of the current season. The CEO is now subject to a criminal complaint on this very issue but I believe that his comments were made with the full knowledge of the board. Certainly no-one came out to contradict him. We should therefore expect any criminal investigation to extend to other board members. It is telling that Charles Green had to step down when under internal investigation and yet the CEO continues with his duties as before.

 

2 - If cash was wasted as a result of mismanagement (presumably Charles Green etc.) then what steps are being taken to hold management accountable for this?

 

3 - The board has conceded that it does not plan to effectively compete with Celtic in our first season back in the Premier League.

 

4 - This is a great review for Celtic fans. It is stated that the board might only raise £20million over the next three years. This paltry amount will guarantee that Celtic will be in a league of its own for the next few years - and possibly permanently thereafter. Celtic will continue to enjoy exclusive access to the Champions League windfalls and will go from financial strength to strength. The gap could become financially irreversible.

 

5 - The board still does not have a clear plan for raising capital despite knowing for some months that a financial crisis was looming.

 

6 - It is interesting that the credit card companies agree with me that the season tickets should not be released to the club. However, it is genuinely shocking that this board has, for several months, withheld the knowledge that fans would not have access to credit card facilities when renewing season ticket purchases. The board preferred to blame "external parties" in an attempt to hide this serious non-disclosure. How can this board ask fans to ever trust them again?

 

7 - The board continues the blame game and takes no responsibility for the current debacle. In truth, it is this board's stubborn refusal to secure fresh equity that is the cause of the present fragile state of the club's finances. The board clearly hoped to muddle along by using the season ticket advances from fans. This review should reinforce to fans that this board cannot serve as an appropriate custodian for their season ticket money.

 

8 - The board has admitted that Rangers is not presently a "going concern" and yet offers no plan on how this will be dealt with in the short term. Fans could once again lose their season ticket advances if given to the club at this time. It is unconscionable that this board has done nothing to bolster the finances since the last AGM.

 

A Rangers spokesman said that the club had no comment in response to the strongly-worded statement from King.

[the gunslinger 3,366]

Well we know he's not going to launch a takeover bid he's been clear on that.

 

As for admin 2 dave king would have to cover at very least the 16 million owed to the club. That would make it more expensive than a controlling stake without admin so it's not that either.

 

He is prepared to pump in money via a share issue. Rangers need that money and the next words out of easdales smug mouth better be detailing the plans for getting that investment as we dearly need It.

[RANGERRAB 3,246]

This man has no intention of investing. He wants to be chairman without putting in a single penny.

Following the AGM (when the reqs got a higher than expected vote of around 30percent) he could have spent a couple of million ponds or so buying low priced shares (no probs to a man of his wealth surely) which would have got him boardroom representation with around 15percent ownership of RIFC and could have got his chums on board too.At the forthcoming shares issue he could invest more and got complete ownership if he wanted to.

The fact he didn't tells me all we need to know.

[BrahimHemdani 1]

Fans could once again lose their season ticket advances if given to the club at this time.

 

I don't recall losing my season ticket.

[gisabeer 409]

said in an earlier post that the current board wouldnt see the end of the month. Be lucky to see the end of the week at this rate (heres hoping!). My only concern is the faceless investors who seem to be quite happy with the fact that their investment is disappearing down the pan. It just doesnt add up. Unless they are the ones running the show.

[RANGERRAB 3,246]

said in an earlier post that the current board wouldnt see the end of the month. Be lucky to see the end of the week at this rate (heres hoping!). My only concern is the faceless investors who seem to be quite happy with the fact that their investment is disappearing down the pan. It just doesnt add up. Unless they are the ones running the show.

 

These 'faceless investors' own Rangers whether you like it or not.And yes they are running the show. They do not want the Murray's or DK involved but I suspect DK might not be allowed onto the board under AIM rules following his tax issues in SA

[BrahimHemdani 1]

This man has no intention of investing. He wants to be chairman without putting in a single penny.

Following the AGM (when the reqs got a higher than expected vote of around 30percent) he could have spent a couple of million ponds or so buying low priced shares (no probs to a man of his wealth surely) which would have got him boardroom representation with around 15percent ownership of RIFC and could have got his chums on board too.At the forthcoming shares issue he could invest more and got complete ownership if he wanted to.

The fact he didn't tells me all we need to know.

 

I'll be careful here because I got told off before for asserting that Mr King did not have any shares when I didn't know that for a fact and I still don't. But what you say is true because if he is so wealthy then it would have been loose change for him to pick up a decent holding over the past few months (even 5% would have put him in a position to call the directors to account at an EGM) rather than all these statements in the press and leaflets by his UoF followers. That would have cost him less than a million and saved him a lot in international phone calls.

 

Enough of this, I don't want to line their pockets nonsense, it's wearing way to thin.

 

Put up or shut up, Mr King.