10 May 2012

Whyte slashes price of his Rangers shares

From the horse’s mouth – so to speak. The man whose name is sung around Parkhead by the green faithful has duly reduced the price of his share buy-out by the small matter of £29,999,999.

Craig Whyte, the man who bought Rangers from Sir David Murray for a pound when the club was in a deep mess will now – in theory – sell it on for a pound now it’s in a much deeper mess.

Theory, because the whole thing depends upon a Company Voluntary Arrangement being set up and agreed with shareholders.

Duff and Phelps – the Rangers administrators, went well out of their way last week to say this will take 6-8 weeks, meaning Rangers could still be in administration even at the beginning of next season and incur more penalty point deductions. Scottish rules are tougher than the English ones in this respect.

D&P made it pretty plain that a CVA at Rangers was pretty much a non-starter.

So the clock ticks.

Creditors have to get a CVA document by the end of next week realistically. Creditors then need around 3 weeks to vote and consider the deal. Then they have a 28 day cooling off period. The clock is indeed ticking.

Mr Whyte’s only real hope therefore is that this process – whilst still adhered to in theory – will in practice be somewhat short-circuited by cash onjections early on and nods of good faith at every turn. Well, perhaps. Craig Whyte keeps telling me he’s desperate to get the club out of admin by the before the beginning of the new season.

And then that leaves the floating charge Mr Whyte has over Rangers – effectively another large separate financial stake in the club and I can reveal this is still to be negotiated away somehow. This is where the tough-talk has still very much to be done.

So: floating charge subject to talks and shares still to be nailed down subject to that CVA. Is this a done deal?

No. Hence all the secrecy and everyone saying the name of the buyers will leak but nobody yet leaks of course.

All will soon be clear but a real deal? It is not in the bag.

The other big issue is UEFA. I am  urgently seeking clarity over this yet again but last week UEFA’s Head of Communications went away to their compliance  department and explicitly checked – again – that UEFA are now minded to look at CVAs just like a new company (Newco) ie it’s a 3 year ban from European football.

Speaking to Craig Whyte his understanding is very different and this could hardly be more vital – buying into a CVA at Ibrox would surely be a non-starter with that 3 year ban in place?

Well – UEFA wouldn’t be the first party totally confuzzled by this 38 act tragi-comedy. They’ll not be the last either. Let us see though, whether they or Craig Whyte are correct on this.

From omnishambles to ubershambles? Rule nothing in or out just yet…

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23 reader comments

  1. Vandalgrease says:

    Duff and Phelps don’t appear to be the best administrators in the world, and the Scottish sports media are certainly not masters of their field, but by god, together they form one formidable comedy act….

  2. gorillaintheroom says:

    Aaah Craigy Boy ya cheeky wee rascal you!! Promising to sell for a princley pound IF a CVA is granted! Almost as good as his promise to give the club away for nowt…..if he got off with the big tax case…….

    Ok, i’ve got a good one as well……I’m going to give every man, women and child in the country a cool million the day after I come back from my honeymoon with Charlize Theron.

  3. geoff says:

    are you quite sure about these valuations. isn’t the £1 only for shares, but the secured creditory status CW has got, means the value of the assets could be worth up to £30m to him. And this is what is causing other potential bidding suitors a bit of alarm.,
    they’ll end up with all the shares, bt none of the assets

  4. Bruce says:

    Tbh, Alex, your reveal this share sale doesn’t include the floating charge over the assets isn’t news to anybody.

    And, given that his offer to sell the worthless shares is conditional and that condition is unlikely to be achievable, it seems fair to conclude that Whyte’s offer is so much posturing. Is Whyte positioning himself so that if the club liquidates he can claim that he wasn’t the obstacle?

  5. derrybhoy says:

    If Whyte sells for a pound then who will pay Ticketus their £27,000,000

  6. justshatered says:

    Alex,
    Can you turn your attentions to the SPL and ask them a few simple questions;
    Confirm whether SKY/ESPN would be interested in showing the SPL without Rangers.
    If they are how much are they willing to pay.
    We are operating in an information vacum and the authorities should be doing more but seem content to allow a fear to grow around TV coverage in an attempt to intimidate clubs to vote the way they wish this to go.
    Are they stalling on the two contracts investigation hoping a newco will give them a get out as the oldco, who possibly operated the two contracts, no longer exists.
    If they are not stalling how long does it take to either talk to the players who had EBT’s and ask whether they had a side letter telling them they would not need to pay the money back.
    They could also compare the paperwork they hold with the paperwork that the club holds.
    I think I could have done most of this in the 6 weeks this investigation has been going on.
    This is why most fans in Scotland fear a stitch up. We no longer trust the very people who are supposed to run OUR sport.

  7. Padraig says:

    As always you cut to the chase with a minimum of lather and froth. Dealing in hard facts, making educated links and drawing conclusions based on logic, they don’t seem to teach that on Scottish Journalism courses.

  8. John says:

    Thanks for all your efforts in exposing this whole sorry saga to the bright light of real reporting and publicity.

    One thing though,I think it’s called a Creditors Voluntary Arrangment.

  9. tambo says:

    Craig knows a CVA is not possible and shows himself up in a better light if he is seen to offer his ownership of the club for a £pound.

    Truth is Craig realises it will never come to that and Craig will remain first in line when the club is finally liquidized.

  10. Jason says:

    Good work Alex and let’s be honest, Craig Whyte will hardly have done much swatting up on UEFA rules to the point where he can even argue the point as a banned director in Scotland for life. More posturing.

    I find the “hidden identity” approach by the latest bidders to be completely farcical as no matter what they will be dragged through the mud in the weeks to come via the media in any case.

    The only issue perhaps is the names of those bidders and do some of them perhaps have a dubious background – hence the secrecy?

  11. Staggie says:

    Posted Today, 08:38 PM on RangersMedia:

    I just hope that the new owners priorities are .

    . . . bringing back Donald Findlay and The Billy Boys, it’s been downhill all the way since these Stalwarts were given the push by a gutless previous owner who has since disappeared off the map. !

    http://forum.rangersmedia.co.uk/index.php?showtopic=219645

    Aye. Good to see they’ve learned their lessons and taken it all on board, eh?

  12. neil's dad says:

    Surely all this is still dependent on the FTT findings. Why would any millionaire/billionaire pay anything just now whilst not knowing the full scale of any liabilities?
    After all the new buyer could easily buy any assets after liquidation cheaper and form a newco which would not be any more disadvantaged in the football sense than RFC(IA)
    would be after a CVA.
    More smoke and mirrors from the sharpest administrators in Govan?

  13. joe71 says:

    Alec thoroughly enjoying the quality of your work, my eyes have been opened with the msm stabbing in the dark but they do need to sell papers so the truth is rarely welcome. One observation the silence from hmrc is deafening, when everyone thought the btc would put rangers into administration they were nowhere to be seen as if they new Craig Whyte would do this himself. I suspect they know liquidation is near despite the ridiculous and numerous saviours. Something tells me D&P are acting their way through this whole affair earning huge sums in the full knowledge no one will touch this club, death by a thousand cuts it is now becoming cruel. Sfa silent, spl silent, sally and jardine silent , Celtic silent tbk very quiet as though they all sit in quiet respect, the last breath is being drawn and the the only sound in the room is the death rattle.

  14. Marty says:

    Whatver UEFA might be “minded” to do in the future there is no three-year ban for a CVA at present.

  15. Shooglenifty says:

    Quailty….again.

    Hats off to you Mr. Thomson

  16. Aidan says:

    “From omnishambles to ubershambles? ”
    Oh my word, keep those super duper superlatives coming…

  17. Davros says:

    Well he does now have at least one CSC named after him, so it’s not all bad news…

    ;)

  18. Michael says:

    Alex, You are being unfair.
    For every step in this verisimilitudinous saga, whether forward or backward, D&P have applied an optimistic logic combined with assurances that has largely gone unquestioned by those reporting (after all what do the humble sports journos know about finance).
    This is no omni, uber or ultrashambles.
    What you have here is Deterministic Chaos. At each stage only a matter of moments away from a solution, provided the laws of administrative maths are applied. So yes, of course a bidder will be chosen, a CVA will be passed, an SPL solution will be found, a recent unethical history whytewashed away and an ancient and much vaunted Scottish institution will be saved – and all before the season end. In theory it works.
    But in theory all it takes is one butterfly somewhere in the Amazon jungle, fluttering its wings and it will set off a whole new scenario.
    In your previous blog “Despair at Ibrox – please buy!” you close with a telling statement about finances and football brains. In football it’s not just about who turns up on Saturday. A season is a long time and football managers need to manage squads, injuries, suspensions, rotate, plan two steps ahead. Even think as far as into next season. D&P’s problem is partially that they give the perception that they are only thinking about the next fixture. Maybe it is they that need to take a lesson from the football brains.

  19. michael D says:

    Oh my god .This shambles just gets more and more complicated day by day (i sometimes think this is the way those in positions of power wish it to be). Anyway my point is this sport and in particular football used to be really straight forward, you ran faster you shot straighter you saved and defended better. Not now, now you need to have a degree in economics and an MA in venture risk spluttering with a side line in sporting financial governence.What a shame.

    What a shame that a chairman hell bent on chasing records he could never equal, on a financial model that was no longer an option. through his years of profligacy he created animosity and debts unfathomed even for scotland. It is doubtfull if the club he was in charge of will survive let alone recover. These men should be ashamed of themselves Paul Murray a former director of the said club even has the tenerity to launch a bid (of what no one is sure including himself), If this man had any sense of shame he would be drinking wine along with his old buddy somewhere in france. Even if the alledged cheats do survive at what cost will it be. if i were a supporter of this club i would be only be too happy to forget about 140 years of history and move on to pastures new. If this parasitic organisation does survive then let it be known that the fans of Celtic, Motherwell, hearts, hibs, dundee utd, aberdeen, kilmarnock, st mirren ete etc will forever know them as those who allowed rules to be bent in order to safeguard there survival. Some people may be able to live with this but not I. I believe in sport for sports sake not sport for moneys sake.

  20. Paul says:

    Once again,

    Our media in Scotland have failed to report the real story, with nothing more than an extremely optimistic account of events from so called specialists being presented to us.

    Clearly it hasn’t taken more than a curious interest to unearth the reasons why this story will run and run, and yet even the Scottish correspondants writing for the nations largest media outlet (with a worldwide stage), are presenting the story as the 11th hour rescue, their little fingers hovering eagerly over the full stop button.

    For over a year now, some of us have known what lay ahead, well I say known, we’ve all been flabergasted by the actual scale of the story.

    It’s truly astonishing that the ongoing events are not viewed by the Scottish media as a challenge, an entriguing story, a series of events which could make a career in media, a way to win awards for investigative journalism, and most of all, it’s even more astonishing that our journalists did not feel obligated to provide a vehicle to inform the fans of the actual facts.

    We are witnessing changing days in the way reporting is carried out, can the old style mob keep up? Especially the ones that have grown up with access to the endless lead sources hand delivered by the unhinged reporting of enthusiastic, unpaid bloggers.

    It’s time to tell the employers of the ignorant that we no longer want their short sighted nonsense, maybe we are as guilty of a lazy approach as the consumers, stop buying these papers, request more informations from the media institutions and maybe we owe it to ourselves to ask the questions of those that don’t.

    Another fine reflection on the debacle Alex, although I would imagine that such a compliment will leave you bemused, pondering the few phone calls it took to get a better story?

  21. Gerry Sillars says:

    Another informative update Alex, you are to be congratulated for continually getting to the core of the story here. Living the other side of the planet from Scotland I am certainly not inclined to put any faith in the Scottish lapdog media.

  22. amabaddie says:

    when does the movie come out?

  23. DifferView says:

    I can see UEFA biding(?) thier time and hitting not only Rangers, but being skavving and thumping with the SFA and SPL, possibly hitting them with anything/everything they can.

    New update on BBC Radio Scotland:
    Brian Kennedy, and the Blue Knight consortium (worlds worse inde-band name) has had a bid rejected today. Brian Kennedy will himself be giving a statement this afternoon, while rumours suggest that the Administrators is in discussions with an Scot-International group, and will be releasing thier atypical statements this afternoon.

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