New-Huns accounts

Debt free Timmy.

http://www.dailyrecord.co.uk/business/business-news/rangers-ltd-reports-debts-161m-3396502

The Rangers Football Club Ltd (TRFCL) has reported an £18.19 million pre-tax loss for the 13 months to June 30, 2013.


The company, with operates “a professional football club in Scotland, together with related commercial activities”, reports it owes parent company Rangers International Football Club Plc (RIFC), £16.16 million.


TRIFC notes the amounts owed to Rangers International “are unsecured, repayable on demand and do not accrue interest.


It adds: "The parent company has indicated that it has no intention to recall the balance in the foreseeable future”.


Last October the parent company, RIFC, which describes itself as “the holding company for the Scottish football club 'Rangers'”, reported operating losses of £14 million for the 13 months to June 30 after raising more than £35 million in finance in the year, including a rights issue last December.


In March, RIFC reported losses of £3.5 million for the seven months to December 31, 2013 and its auditors warned a fan boycott of season tickets could jeopardise the clubs ability to continue trading.


In accounts now filed with Companies House, TRFCL has reported operating costs of £35.3 million for the 13 months to June 30, 2013 on turnover of £17.6 million, with the first team wage bill for the year having come in at £7.8 million.


TRFCL also notes “other operating charges” totalling £11.89 million for the year, which includes matchday costs such as policing, stewarding and pitch costs.


The last full-year accounts filed by oldco Rangers ( now called RFC 2012 plc – in liquidation) for the 2010 year, show 'other operating charges of £13.59 million, when Rangers had played in the top flight of Scottish football and had participated in the UEFA Champions League.


Total staff costs for the 13 months to June 2013 ran to £17.61 million, with the highest paid director taking home £933,376.


TRFCL notes the wages to turnover ratio for the 13 month reporting period was “99 per cent”.


Creditor amounts falling due within one year total £30.7 million, including £16.1 million owned to the parent company, £8.15 million in deferred income, £1.8 million in tax and social security, £1.82 million in accruals and £464,000 to “other creditors”.


The company notes the amounts owed to the parent company, Rangers International Football Club plc are “unsecured, repayable on demand and do not accrue interest”.


“The parent company has indicated that it has no intention to recall the balance in the forseeable future”.


TRFCL also notes it paid out severance payments totalling £468,000 post year-end, and notes two directors having resigned after June 30, 2013 – former chief executive Craig Mather, who stepped down in October 2013 and former finance director Brian Stockbridge, who left in January, 2014.


TRFC notes it expects to see “modest increases” in season ticket sales for 2014/15 “and beyond”.


The company intends to introduce “progressive increases in season ticket prices as we move towards the Scottish Premiership, while still remaining below those when the club was previously in the SPL”.


The company's auditors, Deloitte, have included and “emphasis of matter – going concern” qualifications in the accounts.


Deloitte notes: “The company has made key assumptions in relation to the timing of season ticket monies, the volume and pricing of season ticket sales, increased matchday income and sponsorship, the timing and value of dividends and further cost reductions”.


The auditors have taken into account the timing of receipt of season ticket monies, along with assumptions relating to growth in season tickets, sponsorship, hospitality and commercial revenues “reflecting customer confidence returning”, and “further cost management measures” being implemented.


Deloitte notes, based on the information provided, “indicate the existence of a material uncertainty which may cast doubt about the company's ability to continue as a going concern, and therefore that the company may be unable to realise its assets and discharge its liabilities in the normal course of business”.


The auditors have also notes a further emphasis of matter relating to the “uncertain outcome of potential litigation”, which relates to letters before claim issued by Craig Whyte, the previous owner of RFC 2012 plc (now in liquidation) and his business partner, Aidan Earley.


Deloitte notes despite the company having conducted an “independent investigation”, and despite the “inherent limitations of a private enquiry” from which the company concluded the claims has no legal merit, Deloitte notes the “ultimate outcome cannot presently be determined, and accordingly no adjustments have been made”.


Whyte is claiming legal right to the Rangers assets as oldco Rangers administrators, Duff & Phelps, had entered into a binding agreement with Sevco 5088 in May 2012 to sell the Rangers assets in the event of a CVA being rejected.


The assets were ultimately transferred to an unrelated entity, Sevco Scotland Limited, now The Rangers Football Club Ltd (TRFCL).


TRFCL notes at the foot of the 2013 accounts, under related party transactions: "On 14 June 2012 Sevco 5088 Limited entered into agreements for no consideration to legally reassign its beneficial interest in funding placing letters held and novate the trade and assets purchase agreement with RFC 2012 plc (in administration) to Sevco Scotland Limited (now the Rangers Football Club)”.


TRFC notes, based on the assessment of available evidence, “RIFC plc considers that the investigation found no evidence that Craig Whyte had any involvement with Sevco Scotland Limited (now called The Rangers Football Club Limited) which ultimately acquired the business and assets of RFC 2012 plc from its administrators; nor which would suggest that Craig Whyte invested in The Rangers Football Club Limited or Rangers International Football Club plc, either directly or indirectly through any third party companies or vehicles”.


The note adds: “On May 28, 2013 a further letter before claim was sent to (inter alia) The Rangers Football Club Limited and Rangers International Football Club plc on behalf of Craig Whyte, Aidan Earley and (purportedly) Sevco 5088 Limited.


“The board is of the view that the claims set out in the letter before claim are entirely unsubstantiated based on legal advice received to date by the board and the outcome of the investigation”.


TRFCL also notes a claim raised by former commercial director Imran Ahmad has “no substance” and “no obligation to pay a bonus arises”.


Ahmad has raised a claim for £500,000 in lost bonuses - which is down from the £3.4 million figure he had initially intended to pursue – and that case is still to be heard in the Court of Session.

 

Well what do you know - it turns out that the club and the business really are separate entities - the club owes £16m to the business

 

I'm still trying to understand the structure of their business.

So Billy pays 350 quid for his season ticket to RIFC (the shareholders) - RIFC then loan the 350 quid to the football club LTD and say "btw, we'll have that 350 quid back at some point in the future". The football club spends the 350 quid (+ more) on running the day to day business and accrues the entire 350 quid (+ more as debts), while the shareholders technically pocket the 350 quid as theoretical profit to be paid at a later point?

They are being absolutely raped

 

Civil War http://sport.stv.tv/football/clubs/...ard-of-deliberately-delaying-120-day-review/?

Admin inevitable without season ticket money.

 

A load of directors getting paid a stupid wage they won't get elsewhere - they only go into admin when there's no money left to pay them, which might be very soon.