…Like You Just Don’t Care!
“In the business world, the rear view mirror is always clearer than the wind shield.”
Now, regardless of whether you are a micro-investor or a multinational financier, this a quote which you should always remember when it comes to “putting your money where your mouth is”. Of course, as with all investments, big or small, short term or long term, there is always an associated risk. This is inevitable, as nothing in this world is certain. However, looking back at a business’ track record can tell you a lot about where it may go in the future.
With regards to Rangers 2012, this track record is all but non-existent. Today, a writer for the “Financial Times” on their website described them as having “no corporate history whatsoever”. This is, of course, fairly obvious, but to some, and particularly to members of the Ibrox club’s support who have swallowed the “it’s the same club that it’s always been” mantra, it may be less so.
Fundamentally, Rangers 2012 have no financial records. The company, which was previously know as Sevco Scotland Ltd, has only existed for a matter of months. They have never produced any audited accounts, business plans, or reliable forecasts for the future.
And yet now, if you are a supporter of the Ibrox club, Charles Green wants your money. Yes, more of it, even after paying up to £258 to watch a season’s worth of Third Division football.
When Mr Green last floated a football club on the stock market, it was Sheffield United, in the 1990’s. However, all did not go as smoothly as he may have hoped, as a group of fans banded together after the event and demanded that the Department of Trade and Industry investigate the flotation. They did, and their findings were intriguing to say the least, as they stated: “documents sent to United’s shareholders at the time of the float were inaccurate and misled some shareholders as to the value of their shares”.
Now, if I was a supporter of the Ibrox club, I’d want to look in my rear view mirror. While Rangers 2012 may have no financial history, Charles Green certainly does, and it doesn’t make encouraging reading.
In 2008, Mr Green was the Deputy Chairman of a construction group known as Panceltica (well, he does like to include Celtic in most things after all) and talked up their upcoming flotation on the AIM stock market, the same market Rangers 2012 are to make use of, saying “Clearly you couldn’t pick a worse time to float from a market point of view, but we’re not concerned about whether the market is good or bad having already done our financing.”
In August 2009, Panceltica entered liquidation proceedings.
So, along with a group of unknown, unnamed financial backers he wants his new club’s supporters to raise around £20 million, for a club which is supposedly “debt free”. Keeping in mind that the club will apparently “soon be in a better financial position than Celtic”, you would be forgiven for wondering why Mr Green is looking for money to use with regards to ““strengthening the player squad, improving and developing the Club’s properties and facilities, as well as providing additional working capital”.
This claim is astonishing when you consider the fact that Rangers 2012 are currently subject to a transfer embargo, and are unable to sign any player over the age of seventeen until January 2014.
Surely now, the majority of the Ibrox support and the mainstream media will wake up and question what is truly happening at Rangers 2012?
They find themselves in a tricky position; invest and risk never seeing your money again, or ignore Mr Green’s pleas and risk putting the financial future of the new club in jeopardy.
This story is far from over.