Sevco staring at administration
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There is intense speculation that Sevco are close to administration.
With the footballing performances falling through the floor more and more pressure is being put on the wealthy fans who are propping up Dave King’s company.
The recent departures of Mark Warburton, David Weir and Frank McParland has hinted at serious financial problems behind the scenes.
King was scathing in a statement about Warburton’s management but 10 days after the controversial departures there seems to be no concrete signs of a replacement.
In their most recently published accounts the company admitted that they would require close to £1m in March to see through till the end of the football season.
Since those accounts were signed off Joey Barton has agreed a severance deal with the club facing court action from Sports Direct next month over the controversial merchandising deals involved with Rangers Retail.
With King’s hands off management style the so-called Three Bears look like having to dig much deeper to keep the lights on.
Funding a new management team and a squad capable of being competitive with Celtic wasn’t budgeted for with signs that a good number of season ticket holders are concerned about signing up to see a feeble attempt at stopping 7-in-a-row (see #goingfor55).
Sevco have never been able to call on traditional banking facilities (an overdraft) and don’t have any major debts.
However should any of the Three Bears question King’s control of the club and withhold additional funding February payroll may not be met as the full extent of the financial black hole that the company is in becomes exposed.