Bill Miller as preferred bidder & the new strip - doesn't add up!!

[Bluedell 5,626]

I believe they would mate

 

Given JJB's well documented financial troubles, why would their directors agree to a commitment of £3m pa that they didn't have to? Even if they did want to, I'm not sure that their banking covenants would allow it anyway.

 

However thinking about Umbro and Tennents further, did we not get cash upfront from these contacts so perhaps a new owner would be looking at getting new sponsors as there wold be no commitment to contracts that were null and void.

[Frankie 8,562]

I'd fancy any new owner will want all contracts revisited and merchandise/marketing will definitely be one of those.

[Darthter 542]

One of the benefits I have always felt of a foreign bidder/owner was the possibility of fresh sponsorship opportunities. It'd be interesting if Miller wins, would his towing company sponsor, and for how much???

[calscot 0]

I think it could be in our favour to not transfer the JJB contract as we received a big lump sum to start with. Basically the contract was equivalent of something like £4.5m a year but we're now only receiving £3m a year as we have already had the initial payment.

 

A bit mercenary but then JJB are in trouble and are not marketing our kit very well.

[franker 3]

Given JJB's well documented financial troubles, why would their directors agree to a commitment of £3m pa that they didn't have to? Even if they did want to, I'm not sure that their banking covenants would allow it anyway.

 

However thinking about Umbro and Tennents further, did we not get cash upfront from these contacts so perhaps a new owner would be looking at getting new sponsors as there wold be no commitment to contracts that were null and void.

 

Tennents paid both old firm clubs upfront and they are working on a full stadium rebranding as we speak- confused? i am

[Bluedell 5,626]

I think it could be in our favour to not transfer the JJB contract as we received a big lump sum to start with. Basically the contract was equivalent of something like £4.5m a year but we're now only receiving £3m a year as we have already had the initial payment.

 

A bit mercenary but then JJB are in trouble and are not marketing our kit very well.

 

The problem is that we currently don't have the infrastructure to earn £3m pa ourselves.

[Juancornetto 1]

The problem is that we currently don't have the infrastructure to earn £3m pa ourselves.

 

Online direct sales and a retail deal with other sports shops could achieve that easily in my opinion, not to mention the worldwide shirts sales which could be negotiated via a distributor.

[forlanssister 3,114]

The club will be contractually obliged to release the new strip at this point and therefore have to carry on as normal. They will have to do it as part of their obligation to JJB and Umbro, although they will not be getting any income directly from the sale of strips. There is no guarantee that the club will not contine in its present form and therefore haver to carry on as normal.

 

I disagree with MoodyBlue. The contracts cannot just be transferred to another company, and it would be standard for the contracts to specify that. Companies like Umbro and JJB may allow the assignation of the contracts on the same terms to another company, but I doubt that they would allow that. The JJB deal as it stands favours Rangers and JJB may be happy to walk away from it. Likewise Umbro and Tennants would probably want to renegotiate as a club not playing in Europe and perhaps not playing in the SPL is not going to get as much coverage and therefore is less attractive.

 

Since we've been writing down the initial cash lump sum at £1.4m per annum (iirc) does that mean JJB will be a creditor for the balance that has yet to be written down?

[Bluedell 5,626]

Since we've been writing down the initial cash lump sum at £1.4m per annum (iirc) does that mean JJB will be a creditor for the balance that has yet to be written down?

 

No. The amount of the write down and the amount due to JJB (if anything) are unrelated and would depend on the terms of the contract. I didn't check the creditors list to see if JJB are on it, but I presume that they are not as I don't remember anyone commenting on it.

 

It could be that JJB are due some sort of repayment of the upfront sum but it may be set off against amounts due to JJB, which is why they are not on the list.

 

It's impossible to say without seeing the contract.

[Bluedell 5,626]

Online direct sales and a retail deal with other sports shops could achieve that easily in my opinion, not to mention the worldwide shirts sales which could be negotiated via a distributor.

 

I presume that we don't have an on-line direct sales set up. Yes, we could easily get retail deals with other shops, but I'm not sure that they generate huge amounts of profit. I don't think that £3m would be easily achieved and based on figures that we achieved pre-JJB, when we had a network of our own shops, I'd suggest that we would earn less than that.