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    Comment on In Whose Interests by Homunculus.

    Morelos is a good goalscorer and will be sold for a decent fee. Possibly even enough to balance the books this year, depending on how much the club have to pay out over and above the £10m shortfall.

    He will be sold when the first respectable offer is made.

    The question is, who is going to replace him. If the answer is Defoe that really is a short term solution.

    Homunculus Also Commented

    In Whose Interests
    It's interesting the the impecunious one struggled so badly when he was instructed to make an offer to buy shares. Practically impossible to move money apparently.

    However when it is required to sign off on the audited accounts he can glibly offer up £5m if required, presumably with the permission of the trustees.

    One is forced to wonder how the trustees see this as a good investment and use of the funds they control.


    In Whose Interests
    A common sense look at the Rangers accounts 2019 and what they really mean.

    https://www.ibroxnoise.co.uk/2019/11/rangers-accounts-and-lies-spun-to.html

    Or possibly not.


    In Whose Interests
    StevieBC 2nd November 2019 at 10:08

    If there are no credit facilities and it is a cash only business then I would imagine its pretty much risk free to Barclays.

     

    LIQUIDITY AND CAPITAL RESOURCES

    The RIFC Group maintains cash to fund the daily cash requirements of its business. The Group does not have access to any further banking facilities.

    As at 30 June 2019, there are interest-free, unsecured loans with investors amounting to £10.3 million, other commercial loans of £3.0m, whilst the Group also has finance lease agreements totalling £1.2 million.

    As at 30 June 2019, the Group held £1.0m within cash and bank balances.

     


    Recent Comments by Homunculus

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

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    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

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    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.