trublusince1982 243 Posted June 11, 2015 Share Posted June 11, 2015 You really think Dave King and his colleagues can't pony up £5m from their combined resources? Seriously...? You're absolutely right in that we need to get rid of these onerous deals and nothing has changed in that respect. The problem is, even if we pay back the £5m today, we still have the onerous contract tomorrow. Yes, it may be slightly less onerous (what's an extra 26% of ca. £100K?) but the retail deal is still weighed heavily in favour of Sports Direct. And that's apparently for the next 7 years. Therefore, once again, Kingco clearly believe retaining the £5m is leaves them some leverage on SD when it comes to renegotiating that deal. That may well be true but £5m is hardly the thick end of Ashley's fortune either. It's more likely he's just annoyed at losing face and that may make him more dangerous than if he actually lost the cash in another manner. As I posted yesterday we need a pragmatic solution agreed between both parties but given the court action today and the various statements from stakeholders, I think we're some way off that. Meanwhile the club suffers. It's not just £5m. They also have to cover the shortfall and whatever extra we spend on signings I don't think they can cover all that In one year. 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted June 11, 2015 Share Posted June 11, 2015 They are very rich men. 0 Quote Link to post Share on other sites More sharing options...
RANGERRAB 3,678 Posted June 11, 2015 Share Posted June 11, 2015 They are very rich men. who are very rich men? 0 Quote Link to post Share on other sites More sharing options...
trublusince1982 243 Posted June 11, 2015 Share Posted June 11, 2015 Are they cash rich to the tune of £5m each this year ? 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,570 Posted June 11, 2015 Share Posted June 11, 2015 It's not just £5m. They also have to cover the shortfall and whatever extra we spend on signings I don't think they can cover all that In one year. I've no doubt they could - especially when we factor in the share issue and season ticket cash. I'm not saying finding the total sum would be easy or that it would be as high (or as low) as some think but I just feel the idea that we can't pay this £5m (in isolation or along with other costs) unlikely. 0 Quote Link to post Share on other sites More sharing options...
Ser Barristan Selmy 222 Posted June 11, 2015 Share Posted June 11, 2015 (edited) We know full well that personal wealth is irrelevant. The club is broke and if these rich men won't part with their money, it's irrelevant how wealthy they are. If we were a wealthy club we would not be still reliant on short term loans. Dave King's estimated wealth seems to be unclear too. I hope everything works out but I haven't seen anything yet to fill me with confidence. Edited June 11, 2015 by Ser Barristan Selmy 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,570 Posted June 11, 2015 Share Posted June 11, 2015 Of course personal wealth is relevant when King has said time after time he's prepared to put in the thick end of £30m alongside other investors. Believe him or not but it's a damn sight more credible coming from him than from someone who doesn't run an incredibly successful company. King doesn't fill me with a huge amount of confidence either but I fail to see what he gains from stringing anyone along. We certainly weren't going to be better off without him. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted June 11, 2015 Share Posted June 11, 2015 So if we don't pay him back just now, are we happy to just continue giving them the extra 26% to Rangers Retail, How much is our earnings from retail? It seems we don't get much and even then SD don't give it to us. I've no idea what it worth as the information is sparse but going by the drip feed, say that 26% is worth about £150k, and the interest you can make or save on £5m must be about £200k at 4%, so it doesn't make sense to pay it back when it's interest free. And when you're resources are lower due to a connected onerous contract with a big rebuilding job, there are better things to do with that size of a chunk of your money. And the second point still stands that denying Ashley his £5m in perpetuity, while sales of merchandise are low, and bears boycotting his shops, puts Ashley in a position where it will make financial sense to renegotiate the contracts which will benefit the club. The guy has an ego but it's all seems based on his score of how much money he has - he doesn't like losing any of that score. as well as continued security on our assets? Unless we want to secure borrowings on those assets, which with an injection of investment seems unlikely, what is the problem with the continued security? It's seems pretty irrelevant as he will never get the assets and we don't need them security free. Unless things change, it's just a meaningless bit of paper. You might be in the last few years of your mortgage and could pay it off, but if you're earning more interest on you money than you are paying the bank, then why would you? Would you do it just to release the security on your house? The three bears said how crippling this deal was for our recovery, what changed? Nothing has changed, that's the point you don't seem to get. DK wants to change it. Paying the loan back will make that more difficult as then Ashley will have far less reason to change it. I think we're not paying him back because we can't. Based on what premise? Have you not being paying attention? We need to get rid all of the these onerous deals that we can, until we are in control of our own revenue streams how the hell can we recover and plan for the future? And that is exactly what the board are trying to do, and not paying back the loan is part of the strategy for damage limitation for the onerous deals that we can't completely get rid of for some years. You seem to be contradicting yourself here 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted June 11, 2015 Share Posted June 11, 2015 who are very rich men? King Co. ..... 0 Quote Link to post Share on other sites More sharing options...
RANGERRAB 3,678 Posted June 11, 2015 Share Posted June 11, 2015 King Co. ..... How rich then? 0 Quote Link to post Share on other sites More sharing options...
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