So the whole 'bank was running the club' statement...

[Totti 0]

was very much a PR statement done to ease the pressure on Smith after some abysmal results?

 

Not long after he soon says by some sort of accounting miracle we might not have to sell anyone .

 

Large new contract on offer for Kris Boyd to make him one of the SPL's highest earners. No players definitely on their way out...

 

Yes we're in a poor financial state again (down to Smith and the board) but the whole dramatic 'bank is running the club' business certainly worked wonders to kill of any expectation in Europe. Finishing bottom and being humiliated by Unirea suddenly seemed acceptable because it looked like we were close to administration or something...

 

Conversely, we have consistently in recent seasons given off an impression that we're completely broke, a selling club and the statement 'everyone has their price' is often heard (very few football teams would ever say that). The bank is running the club business didn't do the club a lot of good because its meant everyone thinks our players are available for dirt cheap prices (which they possibly are). No clubs are going to be making any high offers to a club deemed not far off from bankruptcy not so long ago.

 

Either way, who knows, it's hard to dissect any logic from our club.

[Frankie 8,529]

I don't think it is as black or white as some suggest and it may be April before we can fully judge the influence of Lloyds on MIH (and thus Rangers). Of course by that time the club may well be sold. Only time will tell if the new buyers can improve our operations but as long as we're in the SPL we'll always be limited as to what we can achieve.

 

Most important thing in the short term is to secure the SPL title.

[OnlyOneAmoruso 0]

Incredibly wide of the mark.

 

The bank ARE running the club but refuse to admit this. What Smith did was put that into the public domain to increase pressure on the bank.

 

What Smith and Bain have now done is backed the bank into a corner. 5 first team players have been offered contracts according to Smith. These contracts haven't been authorised by the bank and therefore they will have to come out in public and put a stop to them. Thus confirming their running of the club.

[Totti 0]

So the fact the statement came just after a humuliating defeat to Unirea was pure coincidence?

 

I'm not denying the bank will have considerable influence/control but I think the statement was largely to defflect blame.

[Danny 0]

I am no economist but the fact we're in debt to the tune of 31M or so to Lloyds means they own us. They run us because if you own or buy an organisation's debt, you own the organisation as such.

 

Like Abramovich immediately owned Chelsea because he instantly paid the 150M debt they owed.

 

Or are my sums off here?

[OnlyOneAmoruso 0]

So the fact the statement came just after a humuliating defeat to Unirea was pure coincidence?

 

I'm not denying the bank will have considerable influence/control but I think the statement was largely to defflect blame.

 

Yes to be honest.

 

This was the first domestic press conference Smith undertook after Muirs appointment.

[Frankie 8,529]

So the fact the statement came just after a humuliating defeat to Unirea was pure coincidence?

 

I'm not denying the bank will have considerable influence/control but I think the statement was largely to defflect blame.

 

Wasn't the Smith bank quote after the Hibs draw at Ibrox - an enjoyable game in which we played pretty well?

 

I don't doubt the manager did use the issue to spin away from his critics but if it results in an improved club and more transparency from the bank, then I'm reasonably comfortable with that.

[calscot 0]

I don't know why people don't get this. ALL companies with borrowings must be run by the bank seeing as the bank has to approve their business plan. You can't get a bank loan without that caveat.

 

The bank does not "run" Rangers in the slightest, however, as the major creditor who have the ability to call in loans that Rangers cannot afford to pay immediately, they have a great deal of leverage.

 

All the bank have done is to put a moratorium on lending facilities until a more conservative business plan has been negotiated. They have done this as Rangers debt has become too risky and so they have flexed some muscle to change what they think is poor business practices.

 

I really don't see how that can be interpreted as "running the club" unless that means the banks run all businesses with whom they have influenced the business plan.

 

When Walter said it, it was a metaphor used as a rebuke to the fact his hands being financially tied.

 

One other reason that the bank are so concerned is the parent company of our club have pretty serious financial problems and a loss making football division do not make things easier. However, it is a loss making business that is still attractive to buyers due to the sentimental side of things.

 

Therefore, they can exert influence on MIH to dispose of Rangers for free as you are financially better off not-owning a loss making company than owning it, and with Rangers debt in today's climate, it is unlikely to attract a cash buyer.

 

The further motivation for the bank is that there is a good chance that they can recover most of the Rangers debt from a new owner as the club are a going concern that will be buoyed up by having incredibly loyal customers. Administration and liquidation are not on the cards for a club with such a big support and a just about manageable debt.

 

They will therefore pressure MIH into transferring the club to anyone who is willing to pay off the massive bulk of the debt. The current consortium have not offered enough so far at a reputed 60p in the �£ and so the bank have put the ball back in their court.

 

The bank definitely have huge influence but they are not "running" the club in any real sense.

[Bluedell 5,599]

I don't know why people don't get this. ALL companies with borrowings must be run by the bank seeing as the bank has to approve their business plan. You can't get a bank loan without that caveat.

 

The bank have had people in at the club since early last year. It's a lot different from most companies dealings with banks.

[maineflyer 0]

The bank have had people in at the club since early last year. It's a lot different from most companies dealings with banks.

 

Correct. My company has bank debt but the last I looked there was no one appointed by the bank on our board. Nor do we expect the bank to comment on our running of the company or approve any of our spending decisions.