Rangers takeover: Deal agreed in principle

[Uilleam 6,220]

1 hour ago, Ready1314 said:

Not anything i have read , what transfer deals are already done ? Many saying its players who are out on loan and theres not one of them agreed to any deals yet.

It seems that most, if not all, transfers, nowadays, are done on the drip - in instalments of an agreed amount, over an agreed timescale. 

A Club may borrow against anticipated future income, from transfer deals which have already been done. 

This looks like the situation at Ibrox.

 

 

 

[Uilleam 6,220]

2 minutes ago, buster. said:

high interest bank facility. 

A coupon of 6% I read this morning. 

[buster. 5,457]

32 minutes ago, Uilleam said:

A coupon of 6% I read this morning. 

I saw the bank involved and assumed a relatively high interest rate compared to directors loans.

 

Is the 6% number from the official document? 

 

 

 

[Bluedell 5,928]

42 minutes ago, Uilleam said:

A coupon of 6% I read this morning. 

Base + 1.5%, which is fairly reasonable.

[compo 7,681]

Best to let the brains trust deal with any loans i just want this deal over the line so the club can rebuild from the shambles we are now in .

[Bluedell 5,928]

2 hours ago, Ready1314 said:

Not anything i have read , what transfer deals are already done ? Many saying its players who are out on loan and theres not one of them agreed to any deals yet.

Lammers and Colak are the 2 names I've heard mentioned due to the initials of the clubs on some document. As I said above, there was £12m in transfers fees due last June and part of that was due in over 12 months so there's definitely some cash still to be received on transfers completed.

[stewarty 2,093]

Something to also consider is that many businesses operate on the basis of invoice discounting and this is considered a very normal practice, even among well established and thriving businesses. 

 

This is where a business sells its sales invoices (future income) to a lender at a discounted rate, and then lender then advances them the cash immediately to help manage cash flow.

 

The Macquarrie loan arrangement is therefore just a variation on this theme.  As was ticketus.  There are many clubs in the UK who use the same lender. 

 

What we do need to guard against is bottom feeders like Whyte using such instruments to manipulate outcomes that are clearly not in the club's interest.  So I don't blame fans for being worried when these arrangements come to light, but on this occasion it looks like normal practice. 

[Uilleam 6,220]

39 minutes ago, buster. said:

I saw the bank involved and assumed a relatively high interest rate compared to directors loans.

 

Is the 6% number from the official document? 

 

 

 

A quote from John Bennett, if short term memory serves.

Horse's mouth. 

[JohnMc 3,089]

3 hours ago, Ready1314 said:

Taking a loan out on future loan transfer cash is utter madness and just shows the club is still being run by shysters.

I dont know how anyone can justify any of this or see any of it as a positive , each to their own I suppose.

When clubs sell players the transfer fee is rarely paid in one go, it's paid in instalments over a period of time agreed by both clubs. That's the 'future transfer fees' this refers too. McQuarie aren't some kind of back street payday loan shop, they're not lending this money without satisfying themselves it's getting paid back. Many, many businesses need finance at different times. There's a seasonality to football, with income coming in the summer and then long periods  where there's little income. It would be much better if we didn't need to borrow during periods of low cashflow, but it's also not a sign of impending disaster. 

I'm certainly not seeing it as a positive, I'm just pointing out that maybe it's not hugely negative either. I certainly think describing the board as shysters is over the top. 

[buster. 5,457]

18 minutes ago, Uilleam said:

A quote from John Bennett, if short term memory serves.

Horse's mouth. 

John Bennett has talked about this facility? Do you have a link, please?

 

I just had a brief scan of document and couldn't see an interest rate. I did read about the payments of transfer receivables. 

 

@Bluedell Do you know if there is an  interest rate attached to this facility or is it an agreed payment (transfer receivables) in return for a cash loan?