Comment on Celtic’s Questions to Answer by Homunculus.

    He is charging them interest on his most recent loan, it's the SA authorities' fault obviously. 

    "King plans to dismantle the Rangers holding company and fold the shares into the football club." is interesting, is there any further detail on that ej. I'd be interested in the mechanics of doing it and why they would want to. 

    Homunculus Also Commented

    Celtic’s Questions to Answer
    Does this make sense. If he wants to liquidate the PLC and move everyone's shares into the limited company he won't be on the board of that company, so by leaving just now it is less of an obstacle. No issues with that whole fit and proper nonsense.

    This is from his proclamation to his followers.


    "A consideration of our more devolved decision making has made me reconsider the question as to whether there continues to be benefit in a holding company for The Rangers Football Club versus the more traditional model of a single operating entity with a board that comprises executive and non-executive directors. I have therefore asked the company secretary to investigate the possibility of dismantling the holding company and issuing shareholders with the equivalent shares directly into the football operating company, The Rangers Football Club Limited. I would certainly rather own my shares directly in the football club. Further announcements will be made in due course if this proves to be viable and desirable."


    The question remains, what is the advantage in liquidating the holding company, killing off that entity.

    Celtic’s Questions to Answer
    "King plans to dismantle the Rangers holding company and fold the shares into the football club."

    I think I've worked out the code.

    The PLC is being liquidated. 

    Celtic’s Questions to Answer
    Of course there is going to be a cash injection at Ibrox.

    There has to be or the business will fold.

    It will not be additional funds to be spent though, it's just required to balance the books 

    They have already admitted that, in the audited accounts of the PLC.

    Miss important bits out and people will believe what you want them to believe, especially if it's what they want to believe already.

    Recent Comments by Homunculus

    Resolution 12 & The Broken Bond
    Timtim 1st December 2019 at 01:11


    Surely if there is a release clause in his contract then any "bidding war" would relate to the players wages / signing on fee rather than the price of his registration. Why would anyone pay more than the release clause, better to spend the money on securing the players signature on a contract.

    Resolution 12 & The Broken Bond
    Cluster One 29th November 2019 at 18:58


    As stated above I believe Club 1872 had two purposes, one to buy shares and lead to some sort of fan ownership. The other to provide money for projects as agreed with the club. The money was going to be spent equally on both, after 5% was taken for administration. This was the basis on which people signed up to it. 

    Given the club was desperate for money to stay afloat it was decided that buying shares could also be a "project" and most of the money has been spent on buying shares. Demonstrating pretty well just how much control the club has over the Community Interest Company, they use the money donated for basic day to day operations.

    Unfortunately due to the dilution when lenders converted loans to equity their percentage holding has actually dropped rather than increased, so neither purpose is really being met. 

    Resolution 12 & The Broken Bond
    easyJambo 28th November 2019 at 12:12


    Assuming they were ever going to be invited to join in. The feeling I get is that if there is investment it will be specific people doing it, resolution 8 which I believe relates to pre-emption, was passed. 

    I don't think the board has any particular problem with Club 1872's holding being diluted and only sell them shares when there is no-one else with cash they are willing to put in. 

    Resolution 12 & The Broken Bond
    I have read the comments with regards Dave King having to put his money in so early in the season, I believe that originated from PMG. That would suggest a cash flow issue, in addition to a turnover one. 

    That loan is I believe part of the way in which they are dealing with the £10m shortfall . People have questioned why it would be needed so early in the season, surely cash flow issues would come later on.

    I think it is generally agreed that this shortfall was caused by the purchase of two players, Kent and Hellander if memory serves. Basically they bought players they couldn't afford in order to compete and have had to borrow the money. 

    It does occur though, what terms were the players bought under. If they have to come up with so much of the money straight away, and to clear the debt within the season that would suggest that the other clubs have not given them very much by way of "time to pay". Though to be fair the structure of these deals is not something I am particularly up on. 


    Resolution 12 & The Broken Bond
    Allyjambo 27th November 2019 at 13:09


    It is also worthy of note that he is charging them interest, apparently the SA authorities would not sanction anything else. It appears he is impecunious when it suits and the SA authorities curtail his activities at other times.

    It may be worth keeping an eye out for any new securities being registered.