Another "asset" mortgaged off

[Stimpy 0]

Teams have done it with season ticket income before. Leeds spring to mind. Usually a sign of financial problems.

 

Good thing or bad thing mate?

[Danny 0]

Well given Leeds ended up in financial collapse and relegated, I'd say bad.

[Zappa 0]

Been looking into this a little more because I wasn't quite sure about it. Anyway, Close Leasing Ltd provides a wide variety of services including various types of leasing, but they also specialize in various types of financing. It looks almost certain that Craig Whyte is using them for their 'Asset Backed Finance' service described in this quote from their site:

 

Funding arrangements normally take the form of standard or bespoke leasing contracts but may also comprise of loans or mortgages secured on underlying assets by way of registered charges. Similar arrangements may also be offered in respect of Sale & Leaseback or refinancing facilities where you may wish to raise cash for acquisitions or working capital purposes.

 

There's no need to speculate about anything other than the amount of money which has been borrowed (almost certainly for working capital purposes) because the Companies House MG01s forms posted in the OP by forlanssister are very specifically for a mortgage which is being supported by using the catering contract as the security.

 

Let's be clear about this though: There's no need for doom or gloom at this stage unless you're worried about Craig Whyte being strapped for cash. He hasn't 'flogged' anything yet, he's just borrowed money, although if whatever repayment plan he's set up isn't paid then obviously Close Leasing Ltd would then own the revenue from our catering contract in full until the contract runs out.

 

If I'm wrong about any of that then maybe one of the accountants like Bluedell or Craig could correct me.

[der Berliner 3,749]

But really, should Whyte been in trouble and he saw that HMRC thing heading our way all along too, he could just have sanctioned the Jela sale for 8m or whatnot and be done with it. Not the wisest of decisions squad-wise, no doubt, but short-term business-wise no doubt.

 

That said, I do believe that the money for some of the transfer targets was and is there, so who knows what is actually happening.

[Zappa 0]

But really, should Whyte been in trouble and he saw that HMRC thing heading our way all along too, he could just have sanctioned the Jela sale for 8m or whatnot and be done with it. Not the wisest of decisions squad-wise, no doubt, but short-term business-wise no doubt.

 

It's easy enough to think he could just have sold Jelavic or Davis if he needed money (it crossed my mind too), but I would imagine that Ally McCoist would have been SERIOUSLY pissed off if either of those players had been sold at the end of the transfer window and he wasn't given the money or time to replace them. That's the sort of thing that could cause big problems between Whyte and McCoist.

[Frankie 8,570]

To me, this just seems an alternative to using Ticketus which was rumoured for long enough. Both strategies seem problematic to me and are, IMHO, clearly indicative of an owner who has failed to realise the investment he hoped and promised he'd get.

 

I wonder if we'll have an AGM this year as so far there are far more questions than answers surrounding this new regime.

 

The Emporer's New Clothes indeed.

[bmck 117]

The one thing that troubles me about the Whyte angst - justified though it seems to be - is that there seems to be a dilemma. If Whyte really didn't have the money he said he did, why did he buy the club? The only sensible answer is that, despite not having the money, he just wanted to own the club - as a fan. But, if his being a fan motivated him, and he really doesn't have any money, he would know as much as anyone it wouldn't be long before he's found it and/or drives the club down the way of Leeds, which will forever destroy not only the club he loves but his reputation.

 

Whatever this is, it may just be the wisest move in bad circumstances. He'll have financial advisers saying "These are the choices". I don't think anyone thought he had billions of his own money to pour into the club - is he not just trying to make it run on its own as a business?

[maineflyer 0]

The one thing that troubles me about the Whyte angst - justified though it seems to be - is that there seems to be a dilemma. If Whyte really didn't have the money he said he did, why did he buy the club? The only sensible answer is that, despite not having the money, he just wanted to own the club - as a fan. But, if his being a fan motivated him, and he really doesn't have any money, he would know as much as anyone it wouldn't be long before he's found it and/or drives the club down the way of Leeds, which will forever destroy not only the club he loves but his reputation.

 

Whatever this is, it may just be the wisest move in bad circumstances. He'll have financial advisers saying "These are the choices". I don't think anyone thought he had billions of his own money to pour into the club - is he not just trying to make it run on its own as a business?

 

It's impossible to second guess a situation like this without knowing a great deal of the facts but if I put myself in Craig Whyte's situation I'd also be doing everything I can to limit the funding of the club. I would make sure there was little to suggest that HMRC would ever get their hands on a significant payment from Rangers. Any funds I intended putting into the club in due course would be held back until the tax issue is finally settled. HMRC know this too of course but they can only suck what blood is actually in the stone. So far, I see nothing at all to criticise Craig Whyte for.

[Zappa 0]

So far, I see nothing at all to criticise Craig Whyte for.

 

I know for a fact that you're just glad that Murray is gone and I think you'll willingly accept any alternative even if it's to the detriment of the club.

[GovanAllan 0]

It's impossible to second guess a situation like this without knowing a great deal of the facts but if I put myself in Craig Whyte's situation I'd also be doing everything I can to limit the funding of the club. I would make sure there was little to suggest that HMRC would ever get their hands on a significant payment from Rangers. Any funds I intended putting into the club in due course would be held back until the tax issue is finally settled. HMRC know this too of course but they can only suck what blood is actually in the stone. So far, I see nothing at all to criticise Craig Whyte for.

 

Exactly all Wyhte is doing is fixing the mess he inherited from Muuray how he is doing is up for debate but I don't think for a minute he's not got the clubs best interests at heart.