Is the time bomb really ticking?

[ian1964 10,761]

What about Rangers' relationship with Lloyds TSB and the bank's decision to put a representative on the Ibrox board?

"The Rangers situation is slightly different to other clubs as we know it is wrapped up with the wider concerns of Murray International Holdings, and the fact that the owner of the club is on record as saying he wants to sell up. There's a longer standing issue around that. Rangers' debt level is a bit bigger, but, in percentage terms, it is worth less of its assets than some of the other clubs in Scotland. And it pales into insignificance with some of the English clubs who have huge levels of debt.

 

Full article:

 

http://www.eveningtimes.co.uk/sport/display.var.2535192.0.0.php

[Bluedell 5,679]

On a wee side note , one of my best friends is a commercial surveyor who specializes in freelance work , he prefers it that way it means he can piss off to the golf whenever he wants , anyway this guy has no interest in footbal what so ever ,so whats the deal , well this morning whilst out walking the dogs he starts telling me how business is absolutely terrible now that HBOS and LLoyds have started playing hard ball with everyone , the have put the guy who built Silverburn into Liquidation as they have called in his loans and this is what I found interesting they have forced Murray to sell the buildiing he bought beside the Old Albany hotel which Murray had refurbished and which has already been fully let on a 5 year lease , as well as forcing him to sell a plot he owns at the top of Buchanan street which is seen as the last prime spots of real estate on Buchanan street .

 

Just goes to prove Murray really must be in the grubber , the building in question is going for �£ 70 million , yet if left to ride out the recession would be worth easily �£90 million , his words not mine

 

Very interesting. The building beside the Albany was one that seemed to be let on high rentals from what I've heard, so for it to go is a big thing.

 

I would have thought that Murray selling some of his properties would have made big news, and I had presumed that because I hadn't heard anything that he hadn't.

 

If the bank are forcing him to do that, then why wouldn't they force Rangers to sell a player or two (other than the bad publicity)?

[boss 0]

The facility in the bank was due for renewal in November 2008. It was not renewed until some point between Sept-Nov 2009.

 

The clean audit report was only issued following that renewal, so for at least 8 months this year, the auditors were unable to issue a clean audit report.

 

Your logic doesn't explain how the auditors were able to issue a clean audit report in September 2008 when facilities were not in place for 12 months hence.

[spanner 0]

Murray sells under his own auspices, allegedly. http://www.heraldscotland.com/business/corporate-sme/murray-s-property-group-puts-its-prime-development-up-for-sale-1.929640

[Totti 0]

Walter Smith shouldn't have come out and said the banks running the club. It makes us look pathetic and puts all our players in the shop window for low prices.

 

Whatever state our finances in, we keep it as hidden as possible. Try to put a positive spin.

 

Either Smith simply said it to deflect criticism from hime (said it days after losing 4-1 to Unirea) or its some sort of calculated move by those upstairs.

 

There's clubs with debts 10x ours who manage to downplay it better than we do (and not just clubs who can cope with such a debt)

[Bluedell 5,679]

Your logic doesn't explain how the auditors were able to issue a clean audit report in September 2008 when facilities were not in place for 12 months hence.

 

The situations were different. At one point the club had facilities in place, at the other they didn't, which would surely prevent a clean audit report?

 

As for the former, I couldn't say what they would have done to satisfy themselves but it would be interesting to know.

[Bluedell 5,679]

Walter Smith shouldn't have come out and said the banks running the club. It makes us look pathetic and puts all our players in the shop window for low prices.

 

Whatever state our finances in, we keep it as hidden as possible. Try to put a positive spin.

 

Either Smith simply said it to deflect criticism from hime (said it days after losing 4-1 to Unirea) or its some sort of calculated move by those upstairs.

 

There's clubs with debts 10x ours who manage to downplay it better than we do (and not just clubs who can cope with such a debt)

 

I'm sure it was calculated.

 

It would be interesting to know if our banking facility was renewed before or after Walter's statement.

[calscot 0]

If the bank are forcing him to do that, then why wouldn't they force Rangers to sell a player or two (other than the bad publicity)?

 

I think Murray's situation is totally different from that of Rangers.

 

I believe the bank did want Rangers to sell players in January, hence Walter's outburst, but I think the board have convinced them that with the squad as small as it is, it would directly affect our ability to compete which makes it a bad business case.

 

Football is different to other "industries" and selling a player could be like a factory selling a vital piece of plant.

 

To me it makes more business sense to keep Rangers competitive. We have a credit facility and as long as we live within it as well as servicing our debts, I can see no desperate need to raise money in a way which could seriously risk our future income.

 

If we had a bloated squad I could see the point, but to be fair to the board they have paired back the playing staff and we are now running very lean. Once the fat is gone, it is futile to start compromising the muscle.

 

I'm getting the impression that the bank over-reacted and are now back on the ball so to speak. They have tuned back into how a football club works - especially one like Rangers. Basically, common sense has prevailed. In business, you really don't want to alienate over 45,000 loyal, repeat customers unless there is good reason.

 

Rangers have already put many measures in place to get us back on the straight and narrow even if it is a less than salubrious road. We haven't paid for a player for a long time, we've dramatically reduced the squad and wage bill and there is the fortunate factor of competing the the CL.

 

I think it's already been argued that under such conditions we should just about be able to break even without the CL money although we probably still have a 2.5M hole from the Setanta debacle.

 

That suggests, all things being well, we should make a small profit this year. Now, when that's the case is it really the time to squeeze harder? I don't think so, BUT, it's time to put safeguards in and moderate the running of the club so we don't go down that road to oblivion again.

 

We maybe approached the precipice but it seems to me that we stepped back even before the bank grabbed us and gave us a good shake. I really don't think we were teetering on the edge, or even looking over. However, it was close enough for the bank become nervous and they have now effectively built a safety railing which we can't step past - and that's when their original plan was to tie us up - health and safety gone mad. Things may be less exciting in future, but a lot safer.

 

I still believe we will struggle financially until we have a stable ownership and hopefully a cash injection to give us much more headroom instead of continually bumping against our credit ceiling.

 

But even if this happens, we reduce our debt and live within our income, I think the best we can expect is to be of the competitive level of Celtic. Both clubs are not what they have been before but it is the sustainable reality in the current financial climate.

 

Both clubs take much criticism on the pitch but maybe now people are starting to understand why the level is where it is.

Edited November 18, 2009 by calscot

[rbr 1,268]

Murray sells under his own auspices, allegedly. http://www.heraldscotland.com/business/corporate-sme/murray-s-property-group-puts-its-prime-development-up-for-sale-1.929640

 

Yes and this article says that Silverburn is attracting bids as well , no mention that the holding company have been put to the sword by HBOS , like I said this guy has no interests in football , and when he told me they were being forced to sell this property for potentially �£20 million below what would have been expected it certainly raises suspicion , remember this was a grade 10 property , you dont get any better listing .

 

 

Come on spanner you are holding onto the well used Murray line a wee bit too tightly , it's time to let go and see the light , walk away from the dark side young vader :box::box::box:

[Bluedell 5,679]

I think it's already been argued that under such conditions we should just about be able to break even without the CL money although we probably still have a 2.5M hole from the Setanta debacle.

 

I disagree with that.