Ashley and Rangers Retail

[forlanssister 3,114]

just shows what we are up against

 

Indeed but like the rest of us he's fallible, his stance regarding corporate governance was challanged by the market driving the share price down to 32p it was then and only then after losing hundreds of millions (on paper) that he addressed the City's concerns.

[buster. 5,184]

Indeed but like the rest of us he's fallible, his stance regarding corporate governance was challanged by the market driving the share price down to 32p it was then and only then after losing hundreds of millions (on paper) that he addressed the City's concerns.

 

Very interesting set of links those FS !

 

They help form a picture of Ashely. Mainly in the background, likes the game/intrigue/a punt. Will be ruthless and is prepared to play things in a less than straightforward way so as to get a hold of X or X PLC by the baws.

 

In short, the type of profile that might fit with who has been pulling the strings over Ibrox for the last 2 years plus.

[buster. 5,184]

This is an edited version of the post I made that touches on the same issues.

It adds a couple of things to the article wrt document and links.

------------------------------------------------------------------------------------------------------------------

 

It appears MASH Holdings Limted has provided a credit facility of 2M to The Rangers Football Club Limited (TRFC), secured on assets and gaining considerable influence in the boardrooms of both TRFC and RIFC.

 

This whilst Rangers Retail Limited (RR)* does not release cumulative profits that show up in the RIFC group accounts, of which TRFC are a wholly owned subsidiary.

 

 

* Background

In late July 2012, a joint venture was entered into by Sports Direct and Rangers, it became known as Rangers Retail Ltd. Charles Green and Brian Stockbridge represented Rangers on the RR board of directors.

 

SD have 49% in 'A' class shares which count double in any votes regarding financial matters.

Rangers (TRFC) have 51%, in 'B' class shares

(companies house document SH01 (Return of Allotment of Shares) dated 27/11/12)

 

That gives Sports Direct de facto complete and utter control of Rangers Retail's entire operation.

 

------------------------------------------------------

 

For some reason Rangers Retail (under Sports Direct financial control) have withheld cashflow from Rangers (RIFC). The numbers below have appeared in the accounts and appear to be cumulating. This money hasn't since been released to TRFC or the (RIFC) group as a whole.

 

 

30 June 2013:............................................. ........... £946,000

http://www.rangers.co.uk/images/stat...Report2013.pdf

(16. Cash & Balances)

 

31 December 2013:............................................. £1,669,000

http://rangers.g3dhosting.com/regula...ws_article/375

(Condensed consolidated Statement of Cash Flows)

 

30 June 2014.............................................. .........£2,720,000:

http://rangers.g3dhosting.com/regula...ws_article/388

(The Company had an unaudited cash balance of £4.258 million at 30 June 2014. Included in this unaudited cash balance is £2.72 million relating to Rangers Retail Limited, which is not immediately available as working capital to the Group as a whole.)

 

 

Today: If pattern stays the same I'd estimate ...... 3,000,000

-----------------------------------------------------------------------------

 

Comment

"This isn't money owed to the parent co, it is the bank balance of the retail company. It falls within the assets of the group collectively, but in order for the funds to go up to the parent co or across to the football club, it would have to pay dividends (to parent co only) or loan the cash (to either)."

 

Within the companies house document SH01 (Return of Allotment of Shares) dated 27/11/12, it states:

"the company may, by unanimous consent of the directors declare dividends on A shares and B shares" *

 

So back at the end of June this year:

 

- you have Rangers scrambling around looking for money with Graham Wallace and Philip Nash at the forefront.

 

- you had a balance of 2,720,000 sitting in the accounts but unreleased that related to Rangers Retail Ltd.

 

- Rangers hold 51% of the Rangers Retail joint venture, Sports Direct 49% *

 

- Graham Wallace and Phillip Nash represented Rangers on the Rangers Retail board of directors.

 

 

So you have GW and PN, directors of the retail operation unable to source funds from joint venture that would correspond with our 51% stakeholding.

 

Suggests that other Rangers Retail director(s) (from Sports Direct) didn't want to release it.

 

 

You could take it back to Feburary with nearly the same situation when we needed to take out a short term loan financed against assets.

Only that Nash wasn't yet on the Rangers Retail board and the total figure sitting in the accounts but unreleased was around 1,850,000 pounds.

-------------------------------------------------------------------

 

Look at it all and consider if the main goal of Mike Ashely isn't control but to tie up the retail along with IP rights in such a way that his lawyers ensure contracts can't be broken by an insolvency event.

 

The MO being find a distressed club, finance through loans, acquire retail and IP rights with contract that can survive insolvency event.

 

Now read the relevant page from the IPO prospectus from the start of the paragraph that contains highlighted line.

 

 

----------------------------------------------------------------------

 

You have an Ashely controlled joint venture (Rangers Retail Limited)* for whatever reason, not releasing cash to the financially distressed TRFC. Then MA, via MASH Holdings Ltd is able to force a disproportinately beneficial deal because of an offer of a 2M unsecured credit facility to help cashflow.