ian1964 10,720 Posted September 15, 2014 Share Posted September 15, 2014 RANGERS still need to secure substantial additional investment to get them through to the end of the season - despite raising over £3million last week. And further off-field unrest at the Ibrox club, where disgruntled fans are considering a mass boycott, could impact greatly on dwindling resources. That was the stark message from financial expert Neil Patey today as he assessed the situation at the troubled Glasgow institution. The SPFL Championship club announced last Friday that £3.13m worth of shares had been purchased at a share offering. But Patey, a partner with accountancy firm Ernst and Young, believes Rangers will only be left with around £1m of that to use for running costs. And he stressed that Gers directors will have to bring in fresh funding to stave off the threat of a second administration in three years. Speculation is rife that Sports Direct magnate Mike Ashley will increase his involvement - or club assets like Murray Park will be sold off. Patey said: "The club themselves stated that if 15 million shares were taken up it would take them through to the end of the current year. "What they raised was just marginally over the minimum so it will probably see them up to just past Christmas. "Of the £3million they have raised, around £500,000 of it will go on expenses leaving them with £2.5million. "If they repay the loans to Sandy Easdale and George Letham in full, they will be left with about £1million. "If they are saying that £1million will get them to the end of the year, that suggests they have succeeded in getting the monthly cash burn down to a fairly low figure. "Broadly speaking, going on the figures the club has given, they will then need to bring in at least £2million to get them through to the end of the season. "Towards the end of the season, the club are going to start selling season tickets once again and money will be coming in." Patey added: "But, again, that is dependent on the fans coming out and buying season tickets. The big thing for the club is fan support. "The club may only have sold 23,000 season tickets, but they are still taking in money from ticket sales on match days. "But if the supporters stop turning up for matches then it will make the situation worse. Fans have a big say in how things go at Rangers." Patey stressed the financial situation at Rangers would improve significantly when they rejoin Old Firm rivals Celtic in the top flight. He said: "Getting back into the Premiership does two things. In the first instance, they get more money from games. "Secondly, it helps them to attract investors if they are a Premiership club." http://www.eveningtimes.co.uk/rangers/financial-experts-rangers-warning-180534n.25322293 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted September 15, 2014 Share Posted September 15, 2014 what price the accounts being buried on thursday or friday? 0 Quote Link to post Share on other sites More sharing options...
buster. 5,183 Posted September 15, 2014 Share Posted September 15, 2014 what price the accounts being buried on thursday or friday? Fair speculation but it won't hide or change what Deloittes have to say in the note where they should sign-off on 12 months of the business being able to trade (going-concern). It will be interesting and informative to see how RIFC plan to finance the business / Deloittes being 'happy' that it is reliable. ps. Patey is a half-baked 'financial expert' who has struggled to see anything coming throughout the Omnishambles. Get a real one who isn't afraid to call things out as they are. 0 Quote Link to post Share on other sites More sharing options...
Crimson Dynamo 128 Posted September 15, 2014 Share Posted September 15, 2014 I'm half expecting a big loan from Ashley secured against something that will keep us in bed with Sports Direct for years to come 0 Quote Link to post Share on other sites More sharing options...
buster. 5,183 Posted September 15, 2014 Share Posted September 15, 2014 I'm half expecting a big loan from Ashley secured against something that will keep us in bed with Sports Direct for years to come A secured loan or the facility to be called upon in the case that another potential share issue isn't successful,...... would make sense. Deloittes might like to remember what happened to the 2.5M unsecured facility they noted in last years accounts. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted September 15, 2014 Share Posted September 15, 2014 Fair speculation but it won't hide or change what Deloittes have to say in the note where they should sign-off on 12 months of the business being able to trade (going-concern). It will be interesting and informative to see how RIFC plan to finance the business / Deloittes being 'happy' that it is reliable. ps. Patey is a half-baked 'financial expert' who has struggled to see anything coming throughout the Omnishambles. Get a real one who isn't afraid to call things out as they are. Given that the directors forecast of ST sales required to confirm the going concern basis (after due enquiry) last time has proven to be wide of the mark (for whatever reason) it will be extremely interesting to see (a) what the directors say now about the Club's ability to continue to trade solvently and (b) the auditors statement in that regard. It is also difficult to see Deloittes continuing in the role; I'm sure they don't need the hassle. 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,742 Posted September 15, 2014 Share Posted September 15, 2014 Not disputing anything he said or whether what he says is wrong, but please remind me, this Patey chap has been with us in one role or another during the whole Whyte affair, was he not? 0 Quote Link to post Share on other sites More sharing options...
RANGERRAB 3,653 Posted September 15, 2014 Share Posted September 15, 2014 Fair speculation but it won't hide or change what Deloittes have to say in the note where they should sign-off on 12 months of the business being able to trade (going-concern). It will be interesting and informative to see how RIFC plan to finance the business / Deloittes being 'happy' that it is reliable. ps. Patey is a half-baked 'financial expert' who has struggled to see anything coming throughout the Omnishambles. Get a real one who isn't afraid to call things out as they are. Patey a 'half baked' financial expert ??? LOL Would a real one be you per chance ? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,624 Posted September 15, 2014 Share Posted September 15, 2014 Not disputing anything he said or whether what he says is wrong, but please remind me, this Patey chap has been with us in one role or another during the whole Whyte affair, was he not? He's not "with us" in any way. He is independent and doesn't work for the club. He has always appeared to be unbiased, even though I haven't always agreed with his conclusions. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,624 Posted September 15, 2014 Share Posted September 15, 2014 It is also difficult to see Deloittes continuing in the role; I'm sure they don't need the hassle. I doubt that they would resign because an audit is "hassle" as such. It's not actually that difficult, even with the issues of going concern. If they were to resign then it would be more likely because they did not have confidence in the truthfulness of the directors. 0 Quote Link to post Share on other sites More sharing options...
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