Ibrox director issues cash warning
With season ticket money likely to run out at some point over the next six weeks the runaway Championship leaders are in urgent need of cash.
Last season a share issue in October raised £3m with big hearted Mike Ashley loaning the troubled club £5m in January to avoid administration. In June at an EGM shareholders voted not to repay the loan. In February Mr Ashley also sent five players on loan from Newcastle for a token £1,000 a week payment.
That source of backing is no longer available with the two loans totalling £3m from the three bears due for repayment at the turn of the year.
Dave King’s arrival in March has turned a troubled brand toxic in the eyes of the City of London with no nominated adviser wanting to be associated with the South African based criminal while the Alternative Investment Market quickly ditched their share trading facilities.
Despite having next to no shares in the company, in common with borders-based banker Paul Murray, Mr Gilligan has enjoyed the status of a blazer in the blue room of dignity and the adoration of the gullible fanbase.
Asked if there would be a share offer during a meeting of the Rangers Supporters Trust the Herald reported Gilly as saying: “The answer in the long term is yes. You know the story with the listing. Until we are listed, we can’t do the share issue. We are striving to get the listing. In the longer term that is exactly where we want to be.
“What makes it really difficult is, because of the Police Scotland investigation, there are other things that are coming into play here which certainly I didn’t see them coming anyway.
“Not the least of which is when you are handed a piece of paper which says the former chief executive (Green) has a contract which he says means we have to pay his legal fees. Nothing is very simple.”
It seems incredible that a club director was unaware of a contract which covered founding father Mr Green’s legal costs for seven years which isn’t unusual in business.
The 2012 prospectus for the share issue recorded that provision with Mr Green now facing substantial legal costs regarding the asset transfer of Ibrox Stadium and the state-of-the-art Murray Park training complex between Rangers (IL) to Sevco 5088 and/or Sevco Scotland.
Mr Green presented the club with his claim at the end of September, six months after Mr King swept to power on a ticket of accountability and transparency.
With no auditor prepared to put their reputation on the line Sevco have still to produce accounts for the year to 30 June 2015 with an Annual General Meeting unlikely to be held this year.
Mr King has vowed to strongly resist Mr Green’s legal support claim which was detailed in the 2012 share prospectus.