Chronically Underfunded Sevco

This one seems to have slipped under the radar, so I thought I'd point it out.

Let's compare 2 recent reports:

1) Scotsman, Published on Monday 9 July 2012 15:39

"THE Charles Green consortium have told Rangers supporters that it would take at least £50 million for them to sell the newco club – a figure which would give them an astonishing 900 per cent profit on their initial £5.5m investment.

That minimum figure was revealed at a meeting between the board of Sevco Scotland Ltd and the Rangers Fans Fighting Fund last week.

A representative from Rangers Unite asked: “What would you see as an exit price?”

Director Imran Ahmad replied: “On a bad day the club is worth £50m.”

2) July 18th, BBC website

"Nottingham-based Craig Mather has bought 10% of the Ibrox club for around £1m and will now assist in the club's youth development at Murray Park.
Mather owns a sports management company and is investing with his business partner Guy Gisbourne."

I guess July 18th must have been a particularly bad day?

Thing is, I actually agree with Mr Ahmad. Kind of. In about 3 years or so, with Rangers back in the SPL and with no debt, they probably would be worth around £50 million.

A properly funded investment consortium is going to recognise this as (albeit with some risk) a superb investment opportunity. Stick in £5.5 million now, suck up the odd £1million or so loss here and there over the next 3 years and sell for £50 million. That's a 900% return or thereabouts over 3 years. And, properly managed, it's an entirely achievable outcome.

So why sell 10% now for just £1 million?

Because they need to. They have no money behind them AT ALL. This is the equivalent of a pay-day loan.

It's also why Green is threatening to sue D&P for something around £250k-£500k, they believe is overdue to them (D&P say the timings are perfectly in order). It's because they have to.

Why is this important? because it's very likely that under Sevco, Rangers will experience another 'insolvency event'. Soon.

And why are the Scottish Sports 'Journalists' not questioning the Sevco directors about the obvious inconsistencies in these two stories just 9 days apart?

Investigative Journalism anyone?

 

Don't expect Traynor, Keevins, Jackson or their Ilk to ask any questions, they are not fit for purpose.

 

Are you steaming?

£1million for 10% of a company values it at £10 million quid. If they had stated they were wanting to sell the entire company for £50 million just now then you would have a point. This person wanted a small shareholding in the business as it is currently valued, probably with the view of increasing the value in years to come and sell for a large profit.

Also, are you suggesting they simply let D&P walk away with between quarter of a million and half a million pounds of the consortiums money? If you were a millionaire would you just let some crook take £250,000 - £500,000 of your money?

I really do think you are steaming.

 

Guy Gisbourne?

The baddy in Robin Hood: Prince of Thieves?

 

That's what I took from it as well

 

His business backer is apparently the Sheriff of Nottingham

 

I read that last night and thought exactly the same thing

You couldn't make it up

 

Ah know, just what we needed. Another pantomime villain at Rangers.

 

I think what we want is an owner or mods with balls. An owner who will admit his earlier admission of been fond of putting his **** in
places that normal society deems to be very wrong. If Mick stopped his selfish pursuit and moved on to doing the proper thing as an owner
of a Celtic Forum, maybe he would police it correctly and remove the cheating evil low life who should be on the forum of a club removed
from the SPL because of its cheating.

 

I'm not steaming, no. I'm pointing out that Sevco sold 10% of Rangers for 20% of what they said it was worth 9 days earlier. I'm pointing out the ludicrous inconsistency between these two articles. I'm pointing out that properly funded investors who REALLY DID think the company was worth 50 million would NEVER sell 10% for £1 million. I'm pointing out that properly funded investors who thought the £50 million valuation would only be met in 3 years time would still never sell today at a valuation of £10 million. It doesn't make any sense.

Unless you are completely desperate for the money and have no other way of getting any.

And in conclusion I'm pointing out that this indicates that Sevco are very poorly funded. Or they wouldn't do this.

It's not difficult to understand.

But of you have a better explanation of why they would sell at 20% of THEIR OWN valuation, then please share it.

Otherwise, be quiet.

 

And ML's supposed to be one of the cleverer huns.

I suppose even a slightly deformed *****l can be made to look good in a pool of spastics.