BrahimHemdani 1 Posted September 2, 2014 Share Posted September 2, 2014 The drop in ST sales only accounts for about £3m (possibly less!) in potential revenue that's been lost, so while you're right that it would have paid off the loans, the remainder wouldn't have fixed the clubs overall financial crisis, it would only have pushed it back a month or so. The immediate problem as you suggest is one of cashflow or rather the lack of cashflow particularly with only one home league game this month (and there really isn't an attractive home fixture this year) and the crisis, for that is what it is, has been caused by the "success" of the SoS/UoF/DK campaign. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,145 Posted September 2, 2014 Share Posted September 2, 2014 The immediate problem as you suggest is one of cashflow or rather the lack of cashflow particularly with only one home league game this month (and there really isn't an attractive home fixture this year) and the crisis, for that is what it is, has been caused by the "success" of the SoS/UoF/DK campaign. The crisis has been caused by the board's inability to address why at least 12,000 fans have stopped buying tickets. That could have been done via renewed investment or by enticing fans back via open engagement - both of which they've completely failed to do. The fans are not to blame for this mess. I'm stunned people want to suggest they are. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted September 2, 2014 Share Posted September 2, 2014 So we are literally not paying bills as when they fall due. Not just yet but that will be the situation "If the aggregate level of subscription is less than 15,000,000 New Ordinary Shares the Open Offer will not proceed and subscription monies will be returned to applicants. Should this occur, the Company will be unable to pay its creditors as they fall due and the future of the Company will be uncertain; The Directors will immediately have to seek emergency financing which may or may not be available." Latest time and date for receipt of completed Application Forms and payment in full under the Open Offer or settlement of relevant CREST instruction (as appropriate) 11.00 a.m. on 11 September 2014 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted September 2, 2014 Share Posted September 2, 2014 The crisis has been caused by the board's inability to address why at least 12,000 fans have stopped buying tickets. That could have been done via renewed investment or by enticing fans back via open engagement - both of which they've completely failed to do. The fans are not to blame for this mess. I'm stunned people want to suggest they are. According to most folk on here the Board themselves are the primary problem and the quality of football is very much secondary. Are you suggesting that if the Board resigned en masse and took the manager with them, the 12,000 would immediately renew, thereby solving the immediate problem? 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,231 Posted September 2, 2014 Share Posted September 2, 2014 There is no defence of the board - simple as that. As I pointed out before, while all the criticism is valid to the core, one should still not forget that they can't create interest and investment out of nothing. If there is no interest, it's like selling sand in the desert. And due to blowing the IPO money, it is a rather dry desert in investment terms for them. The only interest that we are told of is that of King. How valid or shadowy is anyone's guess. Likewise how easy it is for the board to get it. If the institutional shareholders et al decline King's offer ... well. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted September 2, 2014 Share Posted September 2, 2014 If there's one certainty that's come out of all this, it's that neither the incumbents or their replacements care much for our opinion. The only lever we have is our custom. Taking that to its ultimate conclusion then if all fans withdraw their custom, how does that improve the Club's finances? 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted September 2, 2014 Share Posted September 2, 2014 If this offering fails we don't have the cash for September's wages. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,145 Posted September 2, 2014 Share Posted September 2, 2014 According to most folk on here the Board themselves are the primary problem and the quality of football is very much secondary. Are you suggesting that if the Board resigned en masse and took the manager with them, the 12,000 would immediately renew, thereby solving the immediate problem? As I posted last week, I'd imagine there's a combination of factors involved in why these people have not renewed. We won't know for certain because the club has made no effort to engage with those who have stopped attending. Similarly, I doubt the board resigning en masse (or indeed the manager leaving) would help matters much but a genuine recognition of their failures and some indication of willingness to implement change would perhaps be agreeable as a first step. Accepting that after nine months they can't provide investment and openly concede shareholding ground to interested parties has to be part of that. All in all, only the rebuilding of trust will bring supporters back. Under the current board and beneficial ownership, that trust is missing. Ergo, IMHO, only a staged handover to a new board and new investment will secure the club's future. That won't happen today or tomorrow but it's the only solution. Blaming the fans certainly won't help. 0 Quote Link to post Share on other sites More sharing options...
Rangersitis 0 Posted September 2, 2014 Share Posted September 2, 2014 Not just yet but that will be the situation "If the aggregate level of subscription is less than 15,000,000 New Ordinary Shares the Open Offer will not proceed and subscription monies will be returned to applicants. Should this occur, the Company will be unable to pay its creditors as they fall due and the future of the Company will be uncertain; The Directors will immediately have to seek emergency financing which may or may not be available." Latest time and date for receipt of completed Application Forms and payment in full under the Open Offer or settlement of relevant CREST instruction (as appropriate) 11.00 a.m. on 11 September 2014 They have failed to re-pay George Letham by the agreed date. It is only through his good nature and love for the club that it was re-negotiated until after the share offer. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted September 2, 2014 Share Posted September 2, 2014 As I pointed out before, while all the criticism is valid to the core, one should still not forget that they can't create interest and investment out of nothing. If there is no interest, it's like selling sand in the desert. And due to blowing the IPO money, it is a rather dry desert in investment terms for them. The only interest that we are told of is that of King. How valid or shadowy is anyone's guess. Likewise how easy it is for the board to get it. If the institutional shareholders et al decline King's offer ... well. I have been told today that the institutional investors have had enough and that this is the "final throw of the dice". This is not first hand but from a previously reliable source. If the offer is not successful it is likely that the plc will sell the football club in order to recover its debt as far as possible. This may be what Mr King or someone else is waiting for. That said I think that some of the investors are now prepared to take a loss and sell out cheaply (the share price is now down to 23.5 and falling) as they no longer see the prospect of capital gain in the foreseeable future. 0 Quote Link to post Share on other sites More sharing options...
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