Five days after announcing their latest share issue the silence from Ibrox is deafening as Sevco race towards administration.
The company could hardly have been clearer in their warning about finances but to date there has been no statement of intent or even a rallying cry from within the club.
Other than a strop from Ally McCoist at Friday’s media conference and the usual red card protest from a section of rebel fans it’s been business as usual despite the clouds of administration gathering over Ibrox.
None of the directors have indicated that they will be taking up their allocation of shares, McCoist, other than demanding respect at the media conference, hasn’t commented on whether he will be paying 20p per share having previously bought 1,000,000 shares at a penny each.
Despite the shadow of administration the Union of Fans haven’t had anything to add to the debate beyond their usual ‘fans fury’ late night statement that seems to follow every announcement from the club.
In 2012 various parties were credited with an interest in saving the club, claims that Mr King or Mr Ashley are poised to swoop for shares this time ignore the fact that neither man is prepared to underwrite the share issue- a sure sign that the offer is doomed to failure.
Friday’s Alternative Market announcement carried the bleak warning that: “Assuming full subscription, the Company will require additional external funding in the latter half of the current financial year in order to meet working capital requirements as a result of the cyclical nature of its business.
“At the minimum level of subscription additional working capital will be required towards the end of the current calendar year. This funding, could be sourced from lines of credit, other forms of short term finance or as a component of a further equity raise, in line with the strategy identified in the Business Review to re-build and re-establish Rangers as a stable, sustainable and successful business.
“There can be no certainty that such funding will be available on commercial terms or at all. Failure to secure such funding would be damaging to the business and may impair the value of the Ordinary Shares. The Open Offer is not underwritten.
“There can be no certainty as to the aggregate level of subscription for New Ordinary Shares. If the aggregate level of subscription is less than 15,000,000 New Ordinary Shares the Open Offer will not proceed and subscription monies will be returned to applicants.
“Should this occur, the Company will be unable to pay its creditors as they fall due and the future of the Company will be uncertain; The Directors will immediately have to seek emergency financing which may or may not be available.”
Alongside the silence from Ibrox there has been no comment from the football authorities.
Having created the Five Way Agreement promises of openness and transparency at Hampden Park are phrases for mission statements rather than reality.
Friday’s announcement basically stated that the club was unsustainable, that the wage bill exceeded income and that McCoist’s side were living way beyond their means. Every other club in the Championship is playing on an uneven playing field yet there hasn’t been a word from Neil Doncaster or Stewart Regan.
Sevco have until September 11 to raise at least £3m to stumble on to a another share issue that will further dilute the shareholding of existing investors.
With no sign of a sugar daddy or the Blue Knights it’s looking like night-night from Sevco as a two year farce reaches it’s natural conclusion.
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