Gersnet Analysis: Rangers FC - For Sale?

[Frankie 8,570]

http://www.gersnet.info/fmrangers/newmain/280606.html

 

Recently, there has been a lot of talk on the online community about club finances and where it stands in this regard. Firstly, I�d like to make clear that I am in no way a financial expert but the claim in the title is simply from reading between the lines regarding various stories and issues over the last year or so.

 

My main evidence submission, curiously missed by many, is a Sunday Times business article from 2 months ago by John Penman (link available below). Seems to me Mr Murray is trying to tell us something which makes this subject so interesting worth while discussing.

 

Last year we made, conservatively, around Ã?£12million from our exciting Championsââ?¬â?¢ league campaign. A few months back the chairman also announced the ââ?¬Ë?selling of the jerseysââ?¬â?¢ (literally) by outsourcing our successful retail operations to JJB Sports for Ã?£18million. Thatââ?¬â?¢s around Ã?£30million of investment which should bring our ongoing debt to around the -Ã?£10million mark ââ?¬â?? probably less.

 

In other words, the club is on its most secure financial footing for a good number of years.

 

Looking at the ever-decreasing share price you might find that contradicts this somewhat. However, that could be explained by a falling market (which is partly true) and/or someone selling shares at a fair rate. Who owns 91.8% of the shares again so has a few spare to sell?

 

Indeed, further evidence, from Murray himself, indicates the club is available. Interviewed recently in the ââ?¬Ë?Sunday Timesââ?¬â?¢, regarding his biography; Murray says he has his ââ?¬Ë?sights on leaving the club in someone elseââ?¬â?¢s handsââ?¬â?¢. That may not be imminent but that shows his ââ?¬Ë?ambitionsââ?¬â?¢.

 

Several other aspects of Murrayâ��s current business strategy and his personal life point towards a man changing his goals and his way of life. He recently sold his Murray International Metals group for �£120million and has moved aggressively into the property scene. His Premier Property Group owns shopping centres and office buildings all over the UK. It has just embarked on a �£50m speculative office development in the heart of Glasgow and its MIH parent group has borrowed nearly �£500million to fund more ventures.

 

Murray also announced his engagement this year and his intention to buy at least one more vineyard to the one he owns in France. A man making many changes then and important ones at that.

 

Some may argue that the exciting appointment of Paul Le Guen, one of the finest young managers in World football, is a signal that he intends to take Rangers back to the forefront of the UK game. I�d counter that this appointment and the other staff changes made within the club recently are only to attract a potential buyer. Certainly the minimal (but fiscally prudent) alleged transfer budget afforded to Le Guen doesn�t indicate a chairman prepared to go out on a limb to achieve his footballing ambitions. It shows a chairman keeping finances tight while having the club on a sound footing at every level (financial and staff), and importantly for this article, ready for sale.

 

So who would take over the club? That is the main question here, since it appears to be a case of not if Murray will move on but when, who will take over?

 

It wonâ��t be any of his sons as Murray doesnâ��t want them to have the same emotional and time rollercoaster he has had during his tenure. Although a Russian billionaire (Vladimir Lisin) has moved into an estate next door to Murrayâ��s in Perthsire such a buyer also seems unlikely. Murray rightly questions the hunger and attachment such a buyer would feel so perhaps the eternal links to Tom Hunter may be more likely. However, Hunter himself recently sold his stake in JJB Sports for �£72million and his West Coast Capital investment company is also currently working with other such vehicles to move into other corporate areas. As such, an investment in Rangers by Hunter also looks off the mark.

 

Perhaps we could look towards the background of Donald McIntyre, the new Rangers finance director for clues. McIntyre, a Chartered Accountant, has held senior financial positions within Stakis plc, Hilton Group plc, Hewden Stuart plc and latterly as Group Financial Controller at Macdonald Hotels Limited. Maybe one of these companies might be interested in a football investment particularly when you consider the ongoing RFC casino project. Vegas Sands who are in partnership with RFC for this leisure expansion may provide the biggest clue yet but are they a red herring?

 

Also in the frame is the Rangers Supporters� Trust. Their recent ShareSave initiative enables all fans to buy a stake in the club while proxying their holding to the Trust. It�s only the initial stages of the project but already it seems successful and interest is high. It�s also backed by the club and high net worth investors are taking part. Thus, while the RST may not be a buying contender per se, their increasing holding and undoubted increasing say of late means the may form a large part of any future boardroom changes.

 

No matter the names suggested its all speculation at this stage but interesting nonetheless.

 

Certainly, from the fans� point of view, any new owner would still have over 90% of the shares. This has to be addressed in order for us to be able to influence the club�s eventual new owner and avoid some of the problems we�ve had with the current one.

 

Many fans are fed up with David Murray and have advocated an ownership change for several years. It seems that change is coming then ââ?¬â?? maybe not today, maybe not next year but it will happen sooner rather than later. Only then, will we know just how good a chairman and owner David Murray really is.

 

Sources:

 

ââ?¬Å?Reaping rewards from life's touchlineââ?¬Â

http://business.timesonline.co.uk/article/0,,9070-2157688.html

 

Rangers Supporters� Trust ShareSave scheme

http://www.rangerssupporterstrust.co.uk/ss.html

[stewarty 2,027]

Interesting stuff Frankie. I think Murray will struggle to let go. As much as he apparently wants to move on, methinks he loves being involved in all the hype and attention.

[Frankie 8,570]

Oh Murray has a large ego that needs constant massaging no doubt about it.

 

But he's 56, is getting married and I've no doubt he feels the time is almost right for him to retire to France and his vineyards.

 

When I see David Murray nowadays I see an aging, tired man. He doesn't need the emotional stuff that Rangers brings. First and foremost he's a business man who likes to make money. Rangers don't make money any more and he doesn't have the same attachment the rest of us have to the club IMO.

[delbear 0]

Oh Murray has a large ego that needs constant massaging no doubt about it.

 

But he's 56, is getting married and I've no doubt he feels the time is almost right for him to retire to France and his vineyards.

 

When I see David Murray nowadays I see an aging, tired man. He doesn't need the emotional stuff that Rangers brings. First and foremost he's a business man who likes to make money. Rangers don't make money any more and he doesn't have the same attachment the rest of us have to the club IMO.

 

 

Interesting article frankie... Things are moving ahead for the mint IMO what you say makes sence..... The change inside the club inc mr bain make you think why is one man "running" all the mints dutys before mr murray put alot more time/effort in to the club is he lost the rangers feeling?

 

 

del.

[gersfem 0]

Oh Murray has a large ego that needs constant massaging no doubt about it.

 

But he's 56, is getting married and I've no doubt he feels the time is almost right for him to retire to France and his vineyards.

 

When I see David Murray nowadays I see an aging, tired man. He doesn't need the emotional stuff that Rangers brings. First and foremost he's a business man who likes to make money. Rangers don't make money any more and he doesn't have the same attachment the rest of us have to the club IMO.

 

Agree with you Frankie. Funnily enough we have been thinking the same thing now for the past few months.

 

Why else would he be trying to balance the books as quickly. I mean he didnt get the club into millions of debt over night why is he trying to get it out of debt over night

[ascender 352]

I think you and a few of us mentioned this round about the time we expected AM to be sacked. Was one of Martin Bain's top priorities not to get the wage budget under control, something he did in record time? That aligned with the debt coming down would seem to be DM steadying the ship before he jumps. Would that explain why PLG won't be seeing as much money as we thought, because its being spent to actually pay off debt rather than just moving the debt to another Murray company? One thing a few of us took as a positive of AM's reign, was that financially, the club was looking much more stable now, the best its been in years in fact.

 

I'm still not sure about how things like the JJB deal will pan out, but so far, just going on the sheer amount of store space being dedicated to Gers product, it looks like it can only do us good. I also wonder if one of the reasons DM was so keen to get PLG was because of his reputation and his ability to deliver success on a limited budget and by using young players. If PLG repeats his Lyon success, it would set the club up on the field for many years to come and also do our profile in Europe much good.

 

Whatever way you look at it, it does seem that DM is looking to go. He's definitely not got that excitement and buzz about him that he had when he first came in. I guess its only natural, given his age and the amount of money he's made. I bet he's also a wee bit disappointed that he's not had the European success he so badly wanted.

 

I've not been his biggest fan over the last while, but if everything we've mentioned in this thread pays off, at least he will have left us in a very strong position financially and from a playing point of view. I still believe that he really cares deeply for the club and that probably explains some of his decisions over the years where he's clearly let his heart rule over his head.

 

It really could be exciting times ahead for us though.