Ashley and Rangers Retail

[chilledbear 16]

Noticed this on FF, T4C also had a post on it last week I'm sure,

 

QUESTIONS have been raised over Rangers' commercial deals as it emerged that Sports Direct, headed up by billionaire Mike Ashley, have had effective control of the club's retail operation for nearly two years.

 

 

According to official documents, while Rangers Football Club Ltd have 51% of the joint venture and Sports Direct 49%, Ashley and Sports Direct have the upper hand.

 

The Sunday Herald can reveal that the company rules for Rangers Retail Limited were changed in November 2012, three months after the joint venture was established. Rangers Retail's amended Articles of Association showed Sports Direct receive two votes for every share on "financial matters", ensuring Mr Ashley's company has effective control.

 

When Rangers' joint venture with Sports Direct was confirmed by the club under then chief executive Charles Green in August 2012, it was promoted as enabling Rangers "to once again control its retail operation and give supporters the chance to buy direct from the club and in doing so, continue to invest in its future".

 

At the time, there were no details of any money changing hands to seal the deal and details of how the club benefit have been sketchy.

 

Rangers Retail run the club's entire retail operation, including the Rangers Megastore, and hold the rights under licence to the club's famous crests.

 

Details of the terms of the joint venture between Sports Direct and The Rangers Football Club Ltd, the club's operating company headed by controversial chairman Sandy Easdale, came as supporters registered their disquiet over the acceptance of a £2 million emergency loan from Ashley amid unsubstantiated claims the business was days from insolvency.

 

As working capital was running out, as of June, £2.72m relating to Rangers Retail was included in the £4.26m cash balances of parent company Rangers International Football Club plc.

 

But, according to their accounts, this sum was "not immediately available as working capital to the group".

 

Ashley has already bought the stadium naming rights, so far unused, for £1 in 2012.

 

It is understood he has a deal for the operation of the club's shops and that he controls a portion of Rangers' revenue through that contract, which sees club merchandise sold in Sports Direct stores.

 

According to Sports Direct's latest accounts, it has registered sales of £3.843m to Ashley-controlled Rangers Retail in the year to April 2014.

 

Craig Houston, of the Sons of Struth supporters' group, said Ashley appeared to have control of every part of the money-making side of the club and has made it "unsellable". He said: "All a buyer seems to have is ticket sales and TV rights."

 

The terms of Ashley's £2m emergency loan also gave him security over the Albion car park and Edmiston House facility next to Ibrox.

 

Under the previous 10-year retail agreement with JJB struck by Sir David Murray in 2006, Rangers accepted an initial £18m from the sports firm, while it was also guaranteed a minimum royalty fee of £3m per year until 2016.

 

As a result, JJB held exclusive rights to design, develop, source and retail merchandise associated with the club.

 

http://www.heraldscotland.com/sport/football/ashley-firm-had-financial-control-of-rangers-retail-2-years-ago.25756326

[aweebluesoandso 290]

Surely this brings into question the boards continued fiduciary negligence , that's got to break some corporate laws which should alert the regulatory bodies?

[Ser Barristan Selmy 222]

Green was clearly getting backhanders.

[Frankie 8,129]

I think we've been discussing that online for a few days now so it's good to see this in the media.

 

Essentially, what would be good to know is how much SD paid RFC for this contract (remember JJB paid £18m over ten years) and why, since the deal was agreed, we've not had any income from it.

 

Who is withholding the payment and why?

 

PS: There are rumours of an issue between Green and Ashley with regards to this but I've been unable to find out more.

[Rangersitis 0]

I think we've been discussing that online for a few days now so it's good to see this in the media.

 

Essentially, what would be good to know is how much SD paid RFC for this contract (remember JJB paid £18m over ten years) and why, since the deal was agreed, we've not had any income from it.

 

Who is withholding the payment and why?

 

PS: There are rumours of an issue between Green and Ashley with regards to this but I've been unable to find out more.

 

Sandy Easdale claimed that there was an issue and legal moves were made to kill the deal. Where were these legal fees listed in the accounts?

[sannybear 0]

I often think that instead of buying more shares in the vain hope of building a meaningful stake ( the board will dilute or issue free shares to their pals rather than allow that ) , fan's groups would be better employing a good corporate lawyer with the aim of bringing these thieves to justice - that is if impropriety can be proven .

[Zappa 0]

The whole thing is very very fishy indeed.

 

Journalists who speak to any of the Rangers directors and don't ask serious questions about the Sports Direct and Rangers Retail deals simply aren't doing their job properly.

 

It's imperative that we find out for certain if the millions of pounds due from Sports Direct via Rangers Retail has been paid or not and if not, then why not and when is it going to be paid.

 

The idea that millions owed to the Club from Rangers merchandise sales by Sports Direct hasn't been paid while the Club is having to get emergency loan & credit facilities as well as allegedly being strong-armed by Ashley into agreeing even more shitty deals is scandalous.

[forlanssister 3,050]

I think we've been discussing that online for a few days now so it's good to see this in the media.

 

Essentially, what would be good to know is how much SD paid RFC for this contract (remember JJB paid £18m over ten years) and why, since the deal was agreed, we've not had any income from it.

 

Who is withholding the payment and why?

 

PS: There are rumours of an issue between Green and Ashley with regards to this but I've been unable to find out more.

 

I don't think SD paid so much as a single penny for the contract.

 

SD control every single aspect of RR it is they who are withholding payment. there is no benefit to them in releasing the monies due to Rangers in fact it;s beneficial to SD not to.

 

As to any issue between Green and Ashley, could be something along these lines.....

 

http://www.thisismoney.co.uk/money/article-1201513/Mike-Ashley-gets-tough-loan-competitor-Sir-David-Jones.html

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/5803443/Sir-David-Jones-cries-foul-over-Ashley-loan-saga.html

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10780039/Trial-of-former-JJB-chairman-Sir-David-Jones-abandoned.html

 

In tale of the demise of JJB Ashley may well have played a bigger part than that of just a normal competitor.

 

http://news.sky.com/story/688275/wigan-boss-whelan-hits-out-over-jjb-woes

 

http://www.theguardian.com/business/2012/apr/04/chris-ronnie-jjb-serious-fraud-office

 

http://www.independent.co.uk/news/business/analysis-and-features/tragic-finale-for-jjb-the-retail-soap-opera-8168298.html

 

http://moneyweek.com/profile-mike-ashley-secretive-retail-kingpin-44535/

 

As you can see Ashley looks to be by far the smartest character in the sorry saga of Rangers and has a history of playing the long game.

[Oleg_Mcnoleg 50]

I don't think SD paid so much as a single penny for the contract.

 

SD control every single aspect of RR it is they who are withholding payment. there is no benefit to them in releasing the monies due to Rangers in fact it;s beneficial to SD not to.

 

As to any issue between Green and Ashley, could be something along these lines.....

 

http://www.thisismoney.co.uk/money/article-1201513/Mike-Ashley-gets-tough-loan-competitor-Sir-David-Jones.html

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/5803443/Sir-David-Jones-cries-foul-over-Ashley-loan-saga.html

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10780039/Trial-of-former-JJB-chairman-Sir-David-Jones-abandoned.html

 

In tale of the demise of JJB Ashley may well have played a bigger part than that of just a normal competitor.

 

http://news.sky.com/story/688275/wigan-boss-whelan-hits-out-over-jjb-woes

 

http://www.theguardian.com/business/2012/apr/04/chris-ronnie-jjb-serious-fraud-office

 

http://www.independent.co.uk/news/business/analysis-and-features/tragic-finale-for-jjb-the-retail-soap-opera-8168298.html

 

http://moneyweek.com/profile-mike-ashley-secretive-retail-kingpin-44535/

 

As you can see Ashley looks to be by far the smartest character in the sorry saga of Rangers and has a history of playing the long game.

 

I've always thought it was something like this. But if proven, it would surely mean that Green and subsequent boardroom clowns have in breach of their fiduciary duties, wouldn't it? I occasionally allow myself to daydream about this all being proven and the whole load of them are carted off to Barlinnie in handcuffs.

[jhunter 0]

I don't think SD paid so much as a single penny for the contract.

 

 

 

http://moneyweek.com/profile-mike-ashley-secretive-retail-kingpin-44535/

 

As you can see Ashley looks to be by far the smartest character in the sorry saga of Rangers and has a history of playing the long game.

 

After floating the company, he broke every governance rule much to the fury of shareholders, who saw their holdings decimated, says Retail Week. Having pocketed £900m, Ashley dismissed them as “cry babies” and a critical analyst as a “moron”

 

just shows what we are up against