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Will there be a future for Rangers?


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All taken from the 2015 accounts

“The operating loss increased to £9.9m from a loss of £9.8m in the previous year.”

“The overall net loss for the year was £7.5m compared to a loss of £8.1m for the previous year.”

“Shareholder loans of £3.8m have been advanced to the Club in order to provide working capital facilities to

support the Club though the low point in its annual operating cash cycle. A loan of £5m has been advanced by

SportsDirect.com Retail Limited, a related party through the existing retail deal.”

“The current and future financial position of the Group, its cash flows and liquidity position have been reviewed by the

Directors. The forecasts indicate that further funds will be required early in December 2015. The Board have received

undertakings from certain shareholders confirming that they will provide financial support as it is required.“

“The Group is exposed to financial risk through its financial assets and liabilities. The key financial risk is that the

proceeds from financial assets are not sufficient to fund the obligations arising from liabilities as they fall due.”

“The forecast identifies that the group will require up to £2.5m by way of debt or equity funding by the end of season

2015/2016 in order to meet its liabilities as they fall due. Further funding will be required during the 2016/17 season, the

quantum of which is dependent on future football performance and promotion to the SPFL Premiership. The forecast

indicates that an initial tranche of funds will be required in December 2015.”

“The RIFC Group maintains cash to fund the daily cash requirements of its business. The Group does not have access to any further banking facilities.”

“In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the

disclosures in 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. 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.” Auditor

The group is in a net current liability position (£7m) as at 30 June 2015

Considering they have no access to bank funds and will not be using Sports Direct again, it looks like Rangers will be depending solely on Shareholders loans for the foreseeable future to maintain cashflow.

Not trying to wind anyone up here, genuinely interested to know if the Rangers fans are worried about the above? I reckon I would be if this was my team.

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All taken from the 2015 accounts

“The operating loss increased to £9.9m from a loss of £9.8m in the previous year.”

“The overall net loss for the year was £7.5m compared to a loss of £8.1m for the previous year.”

“Shareholder loans of £3.8m have been advanced to the Club in order to provide working capital facilities to

support the Club though the low point in its annual operating cash cycle. A loan of £5m has been advanced by

SportsDirect.com Retail Limited, a related party through the existing retail deal.”

“The current and future financial position of the Group, its cash flows and liquidity position have been reviewed by the

Directors. The forecasts indicate that further funds will be required early in December 2015. The Board have received

undertakings from certain shareholders confirming that they will provide financial support as it is required.“

“The Group is exposed to financial risk through its financial assets and liabilities. The key financial risk is that the

proceeds from financial assets are not sufficient to fund the obligations arising from liabilities as they fall due.”

“The forecast identifies that the group will require up to £2.5m by way of debt or equity funding by the end of season

2015/2016 in order to meet its liabilities as they fall due. Further funding will be required during the 2016/17 season, the

quantum of which is dependent on future football performance and promotion to the SPFL Premiership. The forecast

indicates that an initial tranche of funds will be required in December 2015.”

“The RIFC Group maintains cash to fund the daily cash requirements of its business. The Group does not have access to any further banking facilities.”

“In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the

disclosures in 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. 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.” Auditor

The group is in a net current liability position (£7m) as at 30 June 2015

Considering they have no access to bank funds and will not be using Sports Direct again, it looks like Rangers will be depending solely on Shareholders loans for the foreseeable future to maintain cashflow.

Not trying to wind anyone up here, genuinely interested to know if the Rangers fans are worried about the above? I reckon I would be if this was my team.

It really depends on if someone is willing to give them funds, which I'm assuming someone out there, probably not Dave King is.

The auditors are duty bound to put that in their opinion as it is material to the stakeholders view of the financial statements. There are businesses out there that rely solely on funding from investors and they just lurch from one year to another until someone gives up or it starts to actually make money.

It is clear though that what is happening just now is unsustainable for them. I don't know what promotion means for them in terms of finances but I doubt it fills the hole they're looking to. European money may help but that seems a far cry to be honest.

Significant cost cutting for me is their best bet but...they're not great at that.

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Could this not have went in the brat?

Public opinion will make sure that we get punished despite no rule breaches and kicked out the league with Ibrox bulldozed and all bears rounded up and forced to live in exile on Arran.

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Could this not have went in the brat?

Public opinion will make sure that we get punished despite no rule breaches and kicked out the league with Ibrox bulldozed and all bears rounded up and forced to live in exile on Arran.

Oh you big tease

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Could this not have went in the brat?

Public opinion will make sure that we get punished despite no rule breaches and kicked out the league with Ibrox bulldozed and all bears rounded up and forced to live in exile on Arran.

Let the bears pay the bear tax.

I pay the Homer tax.

Sorry, I just love that scene and it came to me wi all the Bear talk

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Could this not have went in the brat?

Public opinion will make sure that we get punished despite no rule breaches and kicked out the league with Ibrox bulldozed and all bears rounded up and forced to live in exile on Arran.

I agree with Vicky, is another thread really what we needed regarding sevco.. :1eye Regarding the bit in bold, I'm 100% in favour of this idea.. :thumsup2

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Think they may have to sell Ibrox and/or Murray Park in order to have any sort of future (edit: still playing at Ibrox/training at Murray Park, just paying a rent sum each year. Would there be anyone that would pay, say, £30 million for Ibrox and charge £2million per annum for use of the stadium to the company, plus use it as a concert venue or the like to get other income in? Or mortgage Ibrox with a bank/building society, secured with a fixed/floating charge?

Getting some of that Champions League group stage money would be the only real chance at running the company sustainably, and that's a long, long way away. Do wonder if any of these shareholder loans have a fixed/floating charge on any of the assets?

edit: will also say that having net current liabilities (i.e. creditors falling due in less than 1 yr > short-term assets available over the next year) of £7million pound is crazy. Don't think they'd get away with a Craig Whyte and withholding PAYE/income tax this time either! All it takes is one creditor owed more than £500 to start chasing them for debt and it can snowball into a complete disaster for them.

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Quite interesting that no Rangers fans have commented on the above, I know they don't believe in facts but was expecting some opinion from them.

The shareholders' loans don't have any fixed/floating charges over any assets but the Sports Direct loan of £5m does

"The Facility is secured by (1) a floating charge over the Club’s assets, (2) fixed charges over Auchenhowie Edmiston

House, Albion Car Park, and the Club’s registered trademarks and (3) charge over the shares under call option.

The securities exclude Ibrox Stadium."

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