Former SPL chief Roger Mitchell believes that Sevco’s cash problems are about to become acute.
Last night, just before kick-off in the 1-1 draw against Kilmarnock, the tribute act announced losses of £14.3m for the year to June 2018.
Following some of the old classic acronyms like EBT and WATP, here is another. COD. Cash on delivery. Coming soon to the Copeland road. ????????????????????. https://t.co/IT1WvSl2tV
— Roger Mitchell (@RPMComo) November 1, 2018
“We no longer face questions about our financial strength when dealing with suppliers, other clubs and financial institutions.”
Mr D. King, Castlemilk.
— We’re the EK Apple Pie (@SwavGav71) November 1, 2018
A going concern warning in the accounts stated that £4.6m was required to see out the current season assuming football targets and player sales targets were met. That figure made no allowance for damages due to Sports Direct, Hummel or JD Sports.
Since Dave King swept to power in March 2015 losses have grown with only the generosity of Douglas Park and some Hong Kong based speculators keeping the company afloat.
In February a heavily secured £3m loan from Close Brothers kept the wolf from the door, should they return to Close Brothers this season the interest rate is likely to be much higher.
While Mitchell was chief executive of the SPL he accepted the contracts lodged for Tore Andre Flo and Ronald de Bore without question.
The registered contracts were much less than the salaries that they picked up at their previous clubs and around half the value of the money being paid to equivalent Celtic players such as John Hartson, Chris Sutton and Neil Lennon.
Rangers (IL) were ‘making up the wages’ by putting money into offshore accounts described as disguised remuneration by the Supreme Court in July 2017 with the players now liable for income tax, national insurance, penalties and interest.
