While Celtic’s current position causes concern on a number of fronts I’m glad that we are spared the spin of the latest Rangers ‘takeover’.
Today’s deflection story claims that giving Walter Smith a new contract is a priority for Andrew Ellis and even goes on to claim that the secret Rangers fan is planning new contracts for fringe players Nacho Novo and Kirk Broadfoot before coming to the punchline.
Due diligence on the bid will begin next week!
That nugget of information puts everything else into context.
Basically a property developer that has attempted to get into football at QPR and lasted a couple of months at Northampton Town has indicated an interest in Rangers.
Who wouldn’t?
The prospect of owning a club with a 50% chance of success domestically and annual access to European football would appeal to most shrewd individuals.
Before any contracts are put on the table, remember Kris Boyd, Novo and Broadfoot have so far resisted the contracts publically offered to them in January, the Ellis consortium require to complete the complex issue of due diligence.
What that will uncover is anyone’s guess. Will the Rangers accounts uncover a £50m IOU from the 2002 share issue to Murray Sports?
Rangers recently revealed that £9m of debt owed to football clubs had been repaid in the first half of the 2009/2010 financial year, debt which may or may not have been included in the headline debt figure of £31m.
Finding out that retail and catering have both been out-sourced on long term contracts denies any new business plan some obvious revenue streams.
Remembering the long debate and battle to take-over Celtic in the early nineties there wasn’t much discussion going on about player contracts or the management of the club.
Uncovering the level of debt, stabilising the club and putting in place a business plan of investment to take the club forward were the main issues, issues that the then directors had failed miserably on.
Finding out the identity of those behind the Ellis consortium and the level of Ellis’s own investment is probably of much greater meaning than the eye catching ‘New deal for Walter’ headline.
Trailing by 13 points in a two horse race is very concerning but can largely be addressed on the football pitch and dressing room.
No prizes are handed out for balance sheets but from a distance it looks like Rangers have much bigger matters to address before securing Boyd, Novo and Broadfoot onto new contracts.
you forgot to mention that the value of both Ibrox and Murray Park have been listed at a highly inflated value. I'm sure that a few years ago they were shown to be £90m for both. If there is any truth in the rumours that Murray sold Murray Park to a 3rd party and Ibrox being worth nothing in reality, it seems that these accounts are hiding a lot more than anyone is telling. The fact that Lloyds are being so strict tells you that £30m is the least of there worries! I can hear a very loud toilet flush coming as Mr Ellis has a look at the real figures.
The much quoted £31m figure seems to be the debt owed to the bank. There is likely to be other debts.
No one has any definite idea about the state of the finances but a buyer needs to give Murray a price, convince Lloyds/TSB that they will get their money back as a priority and then meet the demands of the fans through more investment or profit.
Contracts for Smith, Novo etc etc are great soundbites but miles down the road without a bid even in place.