Business guru David Hillier analyses the three rival bidders for Rangers

[ian1964 10,720]

RANGERSâ?? administrators Duff and Phelps will spend the weekend poring over three business plans submitted by the groups in the running to become the new owners at Ibrox.

 

The Glasgow-based Blue Knights consortium is up against American businessman Bill Millar and a Singapore group led by entrepreneur Bill Ng.

 

Record Sport last night asked one of Scotlandâ??s foremost business academics, Professor David Hillier, to run his rule over the pros and cons of each bid.

 

The vice-dean of the Strathclyde Business School at Strathclyde University, Professor Hillier believes that Paul Murrayâ??s Blue Knights represent the best bet for the long-term good of Rangers. Here is his lowdown on the candidates.

 

The Blue Knights

 

â??Itâ??s a consortium and we can only talk about who we know is in it â?? the frontman Paul Murray. But itâ??s a British based group and clearly has Rangersâ?? interests at heart.

 

â??Thatâ??s important because for Rangers to have a sustainable long-term stability any of the decisions that have to be made canâ??t be done with an exit strategy in mind.

 

â??Paul Murray has been very good at articulating his link to the club and understanding of the fanbase. But ultimately he is a businessman and so are the other consortium members.

 

â??They will want to make money out of the club but there will be a sustainable, long-term agenda and that is of great benefit to Rangers.

 

â??From a governance perspective, there are a lot of strengths in their bid.

 

â??They say they want the fans involved and I think that will happen. Iâ??ve looked at how Motherwell have involved their fans and it has been excellent. There is a chance for Rangers to do that.

 

â??With Ticketus on board, they can reduce their bid. It makes their bid more attractive because Ticketus is not a creditor. But thereâ??s a problem in that they do have a commitment after two years to Ticketus.

 

â??They will have to stabilise the club within that two-year period and then start paying back the agreed figure. If Rangers fans are looking for a growth strategy, they wonâ??t get it with the Blue Knights. What they have is a long-term strategy of consolidation, first by major cost-cutting and major restructuring with a share issue to the fans.â?

 

Bill Ng

 

â??He owns a club in Singapore, Hougang United. He is supposed to have a lot of money but from the research I have done, he doesnâ??t seem that interested in the club and is not fully engaged in it.

 

â??Itâ??s ground capacity is 2500 and the club doesnâ??t have a sponsor.

 

â??Singapore is a very small market and the only statement I have seen from him is that the move for Rangers would have benefits for Singapore.

 

â??That makes me wonder if he is going to have a Vladimir Romanov strategy of parachuting in players from his local market to get exposure then sell them on at a profit.

 

â??He has experience of running a club but Hougang United is not Glasgow Rangers. Itâ??s a different ball game.

 

â??If heâ??s not that interested in his own club at home, what is his exit strategy for Rangers? Whatâ??s his business plan? He talks of helping Singapore football by doing this â?? does that mean sending second-string Rangers players to Singapore?

 

â??He has media contacts and you could see some Rangers growth in Singapore but thatâ??s not a big market.

 

â??He may have networks in the Far East Asian markets of Malaysia, Thailand, Indonesia â?? which is a big growth country and if you can get into that market it can be beneficial. But can he deliver that? The benefit of this guy is that he might increase revenues overseas.

 

â??The worry is, would he employ a Romanov strategy? That has to be clarified.â?

 

Bill Miller

 

â??Bill is 65 and chairman of Miller Industries. In the last year the company performed really well and the dividend it paid shareholders jumped nearly 500 per cent.

 

â??He has received significant cash flow in the last year as a result of his company.

 

â??He is 65 and looking for a retirement activity. Rangers have come along and it excites him. I think he would do it as a hobby.

 

â??What can be bring to Rangers? He has no experience of running a sports club and the business model of a sports club is different from any other business. But his company operates in a number of different industries so he knows how to diversify and manage income streams.

 

â??My concern is he doesnâ??t understand this industry. He wonâ??t understand the fickleness and how the cash flows can fluctuate as a result of â??luckâ? in cup competitions. That will make it difficult for him.

 

â??He is an entrepreneur so some of his past investments have failed. But these guys can have five failures for every success, so thatâ??s not unusual. My worry is his business plan. What can he bring to the club? I donâ??t think he has a strong sports-media background in North America.

 

â??He might have a bit of investment but I am not convinced it would be particularly successful.

 

â??If he wants to liquidate, Iâ??d advise him to be very careful with the fanbase. Rangersâ?? major income stream is match day so heâ??ll need those fans inside Ibrox.â?

 

The Verdict

 

â??There are three different agendas â?? a 65-year-old American who has come into a lot of money; a young South-East Asian entrepreneur who wants to make money; and a British group which has Rangers at heart but doesnâ??t necessarily have the greatest funding.

 

â??For the clubâ??s long-term sustainability I would opt for Paul Murray. Scottish football needs a

fundamental change in the way it runs its clubs.

 

â??It needs far more fan involvement and that seems much more likely to happen at Rangers with Murray. There is a door of opportunity that could see Rangers come out with a model governance structure.â?

 

http://www.dailyrecord.co.uk/football/spl/rangers/2012/04/07/business-guru-david-hillier-analyses-the-three-rival-bidders-for-rangers-86908-23816514/

[der Berliner 3,725]

The BK should take this Millar guy on board ... give him a few years to learn his trade with us and then he can go and buy himself a club on his own in the Championship ;-)

[Bears 0]

David Hillier has kept me sane during all this. The fact he's a Professor in his trade means each and every single other "expert" from Bheast fans, to nutcase bloggers to us Bears opinions come a massive second to his expertise.

he has said more than once that he think's a CVA will be the outcome. If you're a betting man would you bet against him?