Summons Dodging – The Sport of King’s

As Aberdeen and Rangers Lite shared the points in a hard-earned scoring draw in pursuit of a guaranteed Europa League qualification spot – with Lite at times emulating the hammer throwers at the dairy farm that is Tynecastle – the real UEFA action is off the park. Traynor will be apoplectic with rage at the following  tweets by Richard Wilson which confirmed information that was posted on my Twitter timeline as a response to my King Q&A piece.

 

 

Let’s restate the known ‘knowns.’ In the last available audited accounts, and not the interim accounts wish list, the auditors included the following clause apropos material uncertainty

“We draw attention to note 1 to the financial statements concerning the Group’s ability to continue as a going concern. In order to continue operations for the next 12 months the Group is dependent upon raising additional finance to cover the projected cash shortfall of £4m in season 2017/18 and a further £3.2m in season 2018/19. Failure to secure additional funding would result in the existence of a material uncertainty which may cast significant doubt as to the Group’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern. Our opinion is not modified  in respect of this matter.

Furthermore Campbell Dallas make the following assumption:

The forecast assumes the Club will challenge for the European places in the Ladbrokes SPFL Premiership in 2017/18 and participate in European competition in the season thereafter.”

The rumours of Chinese investment have been scotched. Douglas Park’s Chins are surplus to requirements.

Close Brothers Asset Finance, Alastair Johnston and Barry Scott covered this year’s shortfall, but next year’s conservatively estimated £3.2m is coming down the pike. This does not include the asset finance deal, which takes the material uncertainty to north of £6m. Now that Lite don’t have Regan batting for them they don’t have a proven liar making representations on their behalf, unless of course Sandy Bryson has stepped up to the plate.

Of particular note is the sustained losses of £18.85m in the past three fiscal years. Lite will try to fob off as much as possible as stadium refurbishment costs, failing to mention that all the scaffording has been provided free of charge.

But the real kicker is RIFC Plc’s inability to convert debt of circa £20m from the concert party into equity. When added to the Close Brother’s debt, the grand total exceeds the UEFA maximum debt threshold of 25,000,000 Euros. RIFC plc are currently running a debt level north of 26,000,000 Euros.

King was of course lying about the Section 9 mandatory offer having no impact on the member club. The concert party of Messrs King, Letham, Park & Taylor are prohibited from participating in the rights issue. They have no means of transforming their debt to equity.

An associate of mine, with a direct line to the Panel, has confirmed that a rights issue can proceed if underwritten by a NOMAD and that King, Park, Letham & Taylor play no part. The Panel are however considering their position and may raise an injunction against the so-called independent directors. If King sold at 27.5p it undermines the mandatory offer price of 20p.

There is a factor that no-one else has considered. King has been ordered to make an offer for all stock not held by the concert party. Should he comply after the rights issue he could face the purchase of up to an additional 108 million non concert party shares at 20p. £21.6m if fully subscribed.

If £6m in working capital is raised, this will be swallowed up by the trading deficit and by paying off Close Brothers in February 2019, leaving the one green bottle that is Gerrard in danger of accidentally falling. Gerrard is both green by club allegiance and in both coaching and man management. Kids schooled at the Liverpool Academy from the age of six are much more malleable than the fractious pros at The Auchenhowie Safari Park, where El Buffalo Morelos roams free.

King’s headless chicken is coming home to roost. Is it any wonder that he insisted that his coterie of hand-picked SMSM lickspittles did not go to print until Monday evening at 11pm as he did not want his whereabouts revealed until he was reclining in his first class bed en route to Johannesburg?

Is Summons Dodging the sport of King’s?

 

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19 thoughts on “Summons Dodging – The Sport of King’s”

  1. Morning JJ, don’t know if you’re aware that the Richard Wilson who posted those tweets is a Scottish football writer and not the lickspittle from the BBC.

    Good luck and keep up the good work.

  2. If wee Alfredo keeps piling up the pounds and the misses there could be a return for fat Sally slim upfront.
    If wee dick Wilson is correct ‘re UEFA licence have the sfa adopted a ‘just send the effing thing in anyway attitude’.

  3. Ah so this is the method behind the madness.

    Rights issue (Simple, easy, allowed by TOP) for lets say 25p/share = 24 million shares. Club 1872 take some, fans encouraged to buy to “give a war chest for SG”, some mysterious new “investor”. Result – Gets below the €25M limit, PR “triumph”, also the number of shares to get to 50% (including the concert party stuck on their 30 million shares) for acceptance of the 20p offer goes from 13 million to 25 million. Now that is a stretch even for the all the majors inclined to sell.

    God this guy can think around the rules fast.

  4. Just sent an email John regarding something I found on the net the other day. A partnership between Sevco and another company. Worth a look at?

    1. History shows that any ‘partnership’ that ‘rangers’ (all versions) get involved with usually involves the partners taking a financial bath for little or no gain.

  5. The JJ Book of Revelations continues to be breathtaking.
    Where others can only scratch the surface you are excoriating in your depth of prose.
    Your output remains as prodigious as ever

    Well done on this weeks stunning output
    £30.00 donation made in recognition of your great work
    Donation ending 9001

    Kind regards
    One For The Road

    JJ: A man of kind words and kind deeds. Thank you.

  6. I’m reliably informed that King turned right upon entering the plane to J’burg, to take his seat amongst the rest of the economy travellers. The largesse of luxury travel appears to have come to an end.

  7. Another well informed piece,SMSM hang your head in shame.Lite supporters “investing ” in any rights issue deserve all that,s coming to them.Monthly contribution made yesterday.(Still awaiting password for future encrypted articles)

  8. The house of cards that calls itself Rangers is starting to tumble. Even the sleepy Bears are hearing the UEFA disqualification news.

  9. The problem is as always, King never publishes full accounts therefore no-one can truly see how bad things are. The SFA seem to allow him this, and up til now UEFA have taken the SFA at their word. Hopefully clarity is setting in and the crook is found out.

  10. Off piste might I suggest that mr Levine’s comments re Brendan Rodgers and a level playing field smacks of sour grapes , he once had the cream of Scottish football at his disposal as Scotland boss “Remember Macedonia or for that matter Serbia “

  11. 6 points for hibs in their final games..

    Celtic can demolish Aberdeen and still let them finish third.

    Sevco a fine fourth.

    Let’s hope uefa do the right thing as Motherwell are not getting anything.

  12. Levein is a thorn …..in his own hide.

    He cannot get by his humiliation by his own hand. His chairwoman has also made a rod(not Petrie) for her own back.

    Craig is a non-entity ….

  13. Hi JJ, keep the revelations coming, like most of your readers, observers and commentators and as the song goes ‘I just cant get enough’
    Monthly F&F contribution just processed (ending 1257)
    Keep fighting the good fight.
    Cheers
    Tom

    JJ: Thank you Tom. Gratefully received.

  14. Hi JJ

    Just a thought, these figures were based on current retail deal?
    Since then a new deal was struck with big M thats now coming to an end but what about current sock? Are they still liable for buy back?
    There is also the new shirt deal for next season that by all accounts is worth less money? These are unconsidered factors for estimated loss?

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