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By TheLawMan on RM

 

“We have spunked away £70m” “They are all stealing from us” “It’s the fans that saved the club” “they are all ****s” “They are stealing our money”

 

I could go on but im sure everybody is familiar with the above quotes over the last 18 months of hell that is supporting Rangers Football Club on an online community.

 

As you all know, I like a bit of analysis and fact finding so I thought I would analyse the figures a lot closer just to see what we actually have “spunked away” and also how much the fans have contributed in the grand scheme of things versus, for instance, Institutional Investors.

 

So lets start with Income and here is a breakdown of the £70.7m

 

Fans Spend = £31.3m (44%)

Investors Spend = £30.5m (43%)

Commercial income = £7.7m (11%)

Transfer fees = £1.2m (2%)

 

From the above, whilst the fans have put a lot of money into the club over the 18 months June 2012 to December 2013, the majority of income was brought in through other channels including an almost like for like amount from Institutional Investors. The fans are the life blood of any football club and especially our club considering where we went to in 2012. However it is important to recognise just how big a part the institutional investors played in our story. Without THEM and their investment, we could not have survived the 2 years in the lower divisions without dramatic and swinging cuts to all staff and our daily operation.

 

Onto the meatier part and the £67.2m we spent between June 12 and December 13.

 

We spent £28m on employees salaries, player purchases and terminations, £5.5m went on the original purchase of the club and £3m towards paying OldCo debt. Although we could argue that our players and especially our management team were overpaid etc, I would imagine that most would accept these £36.5m costs were all genuine enough.

 

Our other operating costs for 18 months were £17m and whilst I am sure there are things in there where money could be saved, the equivalent 18 months in previous accounts periods was in excess of £21m. With 40,000 + fans still coming through the gates etc then our operating costs wont vary as greatly as our income line when comparing SPL v Div 2/3. I am therefore fairly comfortable that the costs are genuine enough.

 

We blew £5.6m on buying Fixed assets such as Albion, Edmiston House, Screens etc which if we are honest, we should never have spent. Having said that, they are non repeatable and again, I believe they were purchased genuinely enough with the right intentions.

 

A further £0.6m was spent on the Craig Whyte investigation which although ludicrous was being demanded at the time in particular by Malcolm Murray which again im going to remove from the pot as that was very transparent at the time and as above no repeatable.

 

And we are now left with £7.5m which are the following:

 

Commissions and Introduction fees for IPO = £2.7m

Broker commission and Stamp Duty = £1.2m

Corporate Finance and Fund raising advice = £1.1m

Legal and Accountancy Fees = £0.7m

Other professional service = £0.5m

Professional and Incorporation fees = £0.4m

Severance Pay = £0.9m

 

There is absolutely no doubt most if not all of these are way too heavy and I think it is clear that Mr Wallace firmly pointed the finger at Charles Green and Imran Ahmad when looking at these. I believe these are the contracts that were entered into without proper legal advice and were very much “panic purchases” to get as much money in the door as possible for the IPO.

 

It should be noted that £6.3m of the above related to the original purchase of the company and the IPO that Charles carried out which means they are not ongoing costs where people still have their “hand in the trough” so to speak and any future share issues, will not incur anything like these costs due to the current set up.

 

What should the £7.5m be above realistically as we had to incur costs to do it all?

 

I don’t know to be honest, but I don’t think any other board could have purchased a new company, raised £35m, paid the appropriate duties, held an IPO alongside all the various legal and accountancy fees for the normal running of the business for any less than £3m which in turn would mean a £4.5m gap maximum.

 

Breaking all of this down in such manner has increased my confidence that all of the mess we are in right now sit firmly and squarely at the door of Charles Green, Imran Ahmad and Malcolm Murray. I will caveat that again by saying that no-one should under-estimate the job they done in raising £35.5m which was an outstanding effort all things told, but unfortunately, that’s where their good work ended.

 

I 100% believe that none of our shareholders, with the exception of the 3 above, played any role AT ALL in the money wasted by the 3 Directors. I 100% believe that none of our shareholders have their nose in any trough and indeed, contrary to some peoples thoughts, will probably be looking for much greater financial prudence from Wallace and Somers as well as good corporate governance that was sadly and now apparently lacking under Green.

 

I just hope Wallace gets a chance to see this out. I also hope that others can step back and read through the above and perhaps think again but who really was to blame, as to me the breakdown makes it very very clear. (tu)

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Where have all the finances gone, long time passing?

Where have all the finances gone, long time ago?

Where have all the finances gone?

Board members lost them, every one

When will they ever learn, when will they ever learn?

 

Read more: Kingston Trio - Where Have All The Flowers Gone Lyrics | MetroLyrics

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We spent £28m on employees salaries, player purchases and terminations, £5.5m went on the original purchase of the club and £3m towards paying OldCo debt. Although we could argue that our players and especially our management team were overpaid etc, I would imagine that most would accept these £36.5m costs were all genuine enough.

 

That's how it works is it? - Whatever you pay for the club you get to take straight back out of the club's bank account?

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That's how it works is it? - Whatever you pay for the club you get to take straight back out of the club's bank account?

 

Not at all, you get what you paid and a whole lot f*&king more besides !

 

One of the weirdest defences of misfeasance I've seen to date, "It's ok lads it's only £4.5m that was wrongly spunked the other £66.2m was rightly spunked."

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Not at all, you get what you paid and a whole lot f*&king more besides !

 

One of the weirdest defences of misfeasance I've seen to date, "It's ok lads it's only £4.5m that was wrongly spunked the other £66.2m was rightly spunked."

 

You might recall TLM was one of the earlier ones to call out Whyte like yourself, he knows what he's talking about.

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You might recall TLM was one of the earlier ones to call out Whyte like yourself, he knows what he's talking about.

 

I do read his stuff on the rare occasions I venture onto RM however you do realise how twisted your logic is in this instance?

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You might recall TLM was one of the earlier ones to call out Whyte like yourself, he knows what he's talking about.

I've defended him on here before but his pro board stance is laughable, just like everyone on that particular forum.

 

We know the money is in the books, that's not the point. Has the money been completely wasted? Yes. He has basically just proven that the money has been 'spunked away'.

 

And FS was calling out Whyte far earlier than he was. FS was nearly banned and called a 'tim' for what he said about Whyte.

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Not really sure what you mean mate, all I'm saying is TLM clearly isn't a Bill McMurdo.

 

 

Calling out Whyte at the beginning doesn't equate to anything that happens after the Whyte era otherwise you'd have been lauding me for 16 months for calling Green out on Day One......:)......:giruy:

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That's how it works is it? - Whatever you pay for the club you get to take straight back out of the club's bank account?

 

No. They didnt get the money back. That money was paid to Duff and Phelps. The £5.5m is shown as income in the accounts as it was placed in the account by the initial investors.

 

Hope that explains things better.

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