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Big Rangers Administration/Liquidation Thread - All chat here!


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The conditions: 26% increase in RR shareholding, Security on certain assets, shirt sponsorship proceeds from 2017-18 (if the loan is still in place), He has not requested any nominees.

No

If it was an overdraft then it would be called an overdraft, its a loan.

The financial incentive for Rangers is that they get 26% more income from the retail business, they have assets that they are free to use as they see fit(Sell them, rent them out, mortgage them), and they get money from shirt sponsorship from 2017-18 onwards.

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A loan shark who is charging 0%?

Fat Mike does not get a penny extra for this loan being in place.

Aye cos paying the loan off will encourage him to do the same?

He may be charging 0% but he does have security over everything except Ibrox, meaning if he want his money and you can't/ wont pay then he gets to keep them

If you think he is making not one penny from this loan deal then you are clearly delusional

Well surely you would have a better chance than not paying him, and why would he want to renegotiate it anyway?

Edited by WeeDiamond90
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They will remain under security until he either does a deal that is acceptable to Rangers and they pay him back or he find a legal argument that Rangers have defaulted on the loan.

Go on then what is he making out of it?

Why would fat mike who does not not give a 'flying f**k' (your words) negotiate once he has his money back?

Why should he accept a deal that is acceptable to Rangers?

Have you any proof he isn't making money out of it? You don't become a Billionaire by simply lending folk money free of charge

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So SD is getting no return for their £5m?

Do you know what happens when a floating or fixed security is taken on a going concern and that business then no longer becomes a going concern? Rangers Retail will be the key to getting this loan repaid.

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They will remain under security until he either does a deal that is acceptable to Rangers and they pay him back or he find a legal argument that Rangers have defaulted on the loan.

Go on then what is he making out of it?

Why would fat mike who does not not give a 'flying f**k' (your words) negotiate once he has his money back?

Carry on Tedi, i think this is definitely the best way to approach this. I can't think of *any* way in which this could backfire or go wrong for the berzzz. :thumsup2

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Why should Rangers accept a request to pay off a loan that they do not have to?

Do you have any proof he is making money out of it? how many millions did he lose in his Barclays deal again?

Who says they don't have to pay it back? That's EBT's you're thinking of :angel

Edited by Insaintee
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Why should Rangers accept a request to pay off a loan that they do not have to?

Do you have any proof he is making money out of it? how many millions did he lose in his Barclays deal again?

Why do they not need to pay it off?

I don't need proof that he is making money out of it, he wouldn't invest in Rangers if he wasn't going to make money out of it, billionaires don't make a habit of throwing money down a hole in the ground (hence they are billionaires)

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I'm not an expert on financial matters but I'd be very surprised if you can avoid paying back a loan just by repeatedly claiming it has no end date.

Was no time limit set for payback on it. Wonder if there is still an obligation to purchase stock higher than its resale value still in place. Any boycott of SD going to be expensive.

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Why should Rangers accept a request to pay off a loan that they do not have to?

Under more normal circumstances the most obvious reason to pay off a loan that you don’t have to would be to stop paying interest on it. In this case the credit isn’t costing interest directly but Rangers are foregoing a sizable chunk of potential retail revenue instead.

Quite how much this is costing Rangers annually is a question you need to ask Dave King but chances are that it’s costing Rangers more than it’s benefiting Sports Direct who have accumulated so much bad will through King and the Daily Record’s efforts that they won’t be shifting anywhere near as much RFC branded tat as they’d otherwise anticipate. In strategic terms money is being left on the table here.

Nonetheless it would seem reasonable to assume that if Rangers could get access to a source of credit that would cost less to service than the expected profit from Rangers Retail then they would. The fact that, even in an environment of near zero base rates, they haven’t is indicative that not even Dave King will lend them the money. If it comes to a point where they’re foregoing retail income and the shirt sponsorship money and still can’t find a better deal that would suggest they were absolutely desperate.

Looked at from the other side Sports Direct aren’t getting as much out of this deal as they’d have hoped and could probably find a better use for that capital. What’s more the very fact that Rangers can’t find a better finance deal than this one is a strong signal that Sports Direct are running a significant credit risk in return for this disappointing return.

The idea that the sports direct deal will be the instrument of new Rangers doom is overbaked doom mongering/wishfull thinking. It is a symptom as opposed to a cause of their malaise.

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