Charles Green’s plans to float Rangers on the stock market have been given an unexpectedly cold reception by financial experts.
Almost everything that Green has suggested so far has been taken as gospel such as having three billionaire investors come on board in July and yarns about Mike Ashley’s involvement.
Shortly after yesterday’s announcement to the AIM Radio Scotland headed south for the views of Market specialist Justin Urquhart Stewart.
He warned: “When they start talking about using the money for cash flow requirements, if you are raising money for working capital, then that’s bad news indeed.
“You raise money to spend on capital expenditure in the club, not necessarily on players or day-to-day expenses as that will run out. Anyone looking at the business plan will see that’s not going to stand up.”
In The Sun footy finance expert Neil Patey, who confidently predicted that Rangers would avoid liquidation, said: “Investing in a football club is not usually attractive unless you offer investors shares at a significantly lower value.
“If there is not a realistic potential for a capital gain, I would not imagine financial investors will be interested. The second group is the fans — and £20million is a lot if you are trying to raise it from them.
“If there is very little interest shown, I would suggest they pull the plans.”
Martin Flanagan in the Scotsman went through the proposals with a critical eye.
The Edinburgh based title were never slow to champion the case of David Murray and were happy to quote Craig Whyte referring to the Rangers Tax Case website as ‘99% crap’ without challenging the former billionaire.
Flanagan suggests: “Most businesses would not tend to try to attract City money when they have just been banned from their main field of action (the SPL), fined for not disclosing their owner was previously disqualified as a director (Craig Whyte), and gone into administration to boot.
“That sort of ‘baggage’ tends to raise institutional eyebrows even when the amount Rangers want to raise on the AIM market – £20 million – is comparatively piddling.”
Without any hard evidence, simply taking Green’s word for it, Flanagan repeats that the new club are debt free with substantial property assets in Ibrox Stadium and Murray Park.
However he did conclude: “The question is whether, on balance, Rangers will be able to convince big institutional investors in particular to make the leap of faith away from the poor history of football floats to a bright new dawn of commercial possibility?
“Tough call. Sceptical investors might consider instead that the £20m is a short-term fix for Green’s property plans near Ibrox, some working capital, and to tide the club over a hopefully temporary revenue fall from playing outside the top flight. Oh, and an unquantified amount for manager Ally McCoist to strengthen the playing squad.”
If institutional investors fail to plough in Green will require 40,000 fans to make the minimum investment of £500 to ensure the success of the share issue. Should that fail to materialise the former Sheffield United chief has unofficially promised to underwrite the issue.
Convincing institutions to invest in a business that was apparently bought for £5.5m in May 2012 and is not valued by Green as worth six times that amount will certainly require some straight talking from the Yorkshire businessman.
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Just like Sevco & Chico….this is doomed to failure. Is Chico trying to treat ALL his fans in the same manner…feed them crap and expect them to cough up. Even the most gullible of Rangers fans can see this flotation is badly timed and is essential to keep the club ticking over / give investors the profits they want before walking away.
TaTa Chico….Only halfwits would invest, you might find 2-3,000 of them but well short. I do exepct your share website will be full though, majority being false LOL.
this guy is like a thief, but the victims won’t even think there being ripped off till he swans of with thier cash.
Last night ion the tv thre was someone actually talking sense. Chico is selling shares, but nobody knows how many. AT the current time Celtic are valued at £33million by the markets, that is a club with CL money, playing in the top flight , huge sponsorship, huge fanbase and then you have Chico’s lot. Even if he sells half the shares that still values them at more than Celtic!!!
The expert said a valuation of closer to 5million would be expected and that the shares would flop dramatically.
If ever there was a man preying on the good nature of loyal football fans it is this charlatan. I really hope the fans ask the right questions before they hand over a brass penny as this is being done to boost the profile of the club so it can be sold in a couple of years for huge profit.
We were lucky in Fergus, he sold us the club to ensure this could never happen again and as much as we moan at Dermot and Peter, they have kept this club firmly under control and run the right way.
You do realise you just reffered to that shower of pondlife as good natured and loyal football fans there eh? either you have started on the drink early, or you have lost the plot, anybody that roasts that lot out of a penny is fine with me, i hope they all buy into his rubbish and he robs them blind
Good luck to him anybody ripping the hole out the Huns is ok by me, the guy says the right things at the right time because he’s built up the ‘ everybody is against us and am fighting your corner you can trust me ‘ and the silly Huns are falling for it they done the same with Craig whyte they’re mugs and hopefully they get a big custard pie in the face when he says thanks but no thanks am off and sells to another mug or they go down the drain again. Hail hail lets all laugh at sevco
I hope Chuckles and the pie man stay, I hope the shares issue is s complete flop and the new club goes out of existence.
Celtic 1888
A flop would be funny, but what I would wish for Sevco, is they make just enough to get by. Not enough to prosper, just enough for a meagre existence that will eventually wipe them out through lack of interest. “Slow and painful” to quote one of the game’s leaders.
in the words of nelson muntz…HA HA!
In keeping with the Simpson theme, Charles Green is Lyle Langley, the guy who sold the Monorail system to the poor unsuspecting citizens of Springfield.
Just like Sevco, it sounded great in theory.
My feeling is I hope Chuck makes a fortune and leaves Sevco standing naked with nothing if ever a fanbase needed a lesson on dignity honesty and doing the right thing it’s Sevco and the Sevcovians.
So roll on the share issue part with your cash and fund chucks millionaire lifestyle.
he wore an orange way top, he must be telling the truth!! Lyle langly wouldnt have a patch on this spoofer
I have a share issue on the go bhoys it’s for a company a just started its called foolsworths (the old woolworths) it’s a great business to invest in just send me as much as you can afford and I promise in a couple of years you’ll get a big return av got two mars bars and a bag of pick an mix to start me off with you can’t go wrong. Hail hail lets all laugh at sevco
I see the zombies are still not extinquished! Here is hoping it is not to long now.
No no Carlisle the show must go on.
This is too funny to end.
Where will I find a show as funny as sevco to laugh at?
I wonder how many other’s will come in after Charles Green has high tailed it out of Ibrox with his loot. One, two a dozen more? Really, how much more exploited can a group of peepul be? They think that they are superior to everyone else but in fact they are the most inferior group of Neanderthals that ever shuffled along on two feet. Large belly’s and a tiny brain. . .the perfect specimen for duping wholesale.
I can just recall Ally McCoist a few months ago saying to the rest of Scottish football:
”be careful what you wish for!”
Well, they were careful and their wish came true and it’s Karma time.
He also said that: ”we don’t do walking away!” or was it ”we don’t do winning away!” ? Not sure
but anyone thinking of investing in this toxic zombie needs their head examined. But then, we all knew that anyway.
I hate to say it but I’m starting to feel a little sorry for the Huns! They just can’t help themselves! This is definetly the story that keeps on giving! Jesus! Thank God it’s not Celtic! Smarten up Sevconians!!!
So Sevco need £20m to stay afloat through normal business. Stadium built. Training centre built. Why with 35,000 season ticket holders does Mr Green require this dosh?
He is a shyster/ a conman/ a lowlife.
Until RANGERS fans realise this they will be doomed.
I have friends supporting the Govan team – good guys too. But until the masses see that they are being played by a carpet-bagging scumbag, Sevco & phoenix Rangers are screwed.
p.s.
Murray, McCoist, Ogilvie – minted and all just serving themselves.
I hope the supporters put the money in, much funnier that way.