Tag Archives: HMRC

Hiding In Plain Sight although Far Away

14 Feb

The headlines that come out of Ibrox weekly, daily, hourily or even by the minute has became the darkest period the clubs 140 plus year history.

2015 was always going to be a big year for Rangers, the plan was to triumphantly and defiantly ride into the top league armed with a burning sense of injustice.  Vindicated by Tax Tribunals, criminal courts, Law Lords and advertising standards judgements to fight with bloodied nose and win title number fifty five providing further proof of being the worlds most successful club.  What has transpired even two months in is vastly different.

The club have suffered from mismanagement on a what can only be described as monumental levels from Boardroom to Coaches.  The open door policy of Charles Green to allow any number of investors into the fold without having a single majority shareholder has proved a folly.  The current board so inept they choose to have a EGM in London in an original venue too small to accommodate the shareholders wishing to attend.  Follow following a AGM where they chose to sit on a stage so far away from the shareholders that binoculars should of been issued so folk could see proceedings.  Let’s be honest about this I can’t print the Easdale – Ashley led board currently in charge has something to hide or is in some way up to something but people with nothing to hide generally don’t hide! Both Easdale brothers Mike Ashley or chosen Ashley representative Derek Llambias have never spoken directly to fans or attempted to describe a way forward. Failure to even try to get customers onboard the ship to salvation has lead an increasing number of fans to smell rats and vermin.

When a significant number of your customer base has decided that the best way to be loyal to the club and its business is to boycott your business then you as a board should be doing your up most to engage this number and alay their fears to keep the cash flowing. That is your duty as a Office barer and Executive. When this growing band choose to demonstrate outside your main doors and still not buy anything then your business has became fire fighting and trying to gain trust. Possibly if as much effort on this venture was put in rather than hawking parcels of land and naming rights about for short term loans then would these loans and deals not be required.

I have heard tales of conspiracy within Dark Corners of HMRC, (you know the same dark corners Mark Daly gets his information from) but how could anyone conceive the last five years at Rangers.  If you got Raymond Carver (the world renowned writer of short stories), Stephen King (no relation to Dave), J K Rowling (Harry Potter), E L James (50 Shades), Ronald Dahl (Charlie and the Chocolate Factory) and of course Harper Lee (if you need to told stop reading right now and go away) sat them in a room told them to write and they came out with a script of the last five years in G51 You would laugh and send them back in to write something believable!

Simple put the merchandise is not selling. There is a bottleneck in the fountain of customer good will. Failure to communicate the plan, the ethos, the dream has turned into a nightmare for all concerned.  From terrace to players, the boards ineptitude in rousing the community has lead to boycotts from customers and performances from Playing staff that lack in motivation have compounded the situation. If you create a culture of no confidence in the board room publicly and privately then you get the malaise that is currently Rangers on and off he field. Its a bit like Lance Armstrong’s ”winning” bikes from his seven Tour de France ”victories” everyone suspects something is untoward, some even suspect or know of wrong doing but the cycle keeps turning hiding in plain sight for all to see.

As the final tax tribunal gathers evidence and the criminal courts stand ready to hear the cases against three players in the dodgy (we can assume this due to the financial events that followed) take over from Murray International Group to Craig Whyte’s “Trotters Independent Traders” the odds are not unfavourable that a positive result regarding Employee Benefit Trusts and at best some clarity on how a man with limited wealth suddenly found himself owning Rangers and not paying PAYE.  this should be a time of excitement for Bears, not a time of dread!

To return to the current board if you begin to act on security advice not to take up you seats in Directors boxes due to ill feeling from the customers who have chosen not to boycott you let’s just call them Moderates in the spectrum then surely even in Inverclyde, Newcastle and London you must think maybe I should look to selling my shares and return to my core businesses.  You know the ones where I haven’t upset my customers so badly that I need Police Protection to visit the company  Head Quarters.

The resignation of Managers and Stand in managers allied with the frankly shocking performances on the field leave even the most loyal tolerant patient  Blue Nose saying no more. 

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Sorry Seems to Be The Hardest Word

1 Aug

Sorry is indeed the hardest word and in this litigeous world sorry seems to be a legal admission of liability.

This simple modern truth could well be the reason for the lack of appologies sent to Rangers Football Club.   The posse that found Rangers Guilty in their Kangaroo Courts in 2012 have been remarkably silent in the weeks since the UTTT found no real wrongdoing in Rangers FC use of Employment Benefit trusts. 

The real reasons for lack of words from Scottish Football are simple.  Rangers 1898 Ltd the former owners of Rangers Football Club are now debt free thanks to Ticketus, the RFFF and the soon to be defrosted accounts.  The money in the currently frozen accounts will pay the PAYE bill left by discredited Craig Whyte.  In fact I was recently told that Rangers 1898 Ltd will be one of the few companies that could emerge from liquidation proceedings and will simply be wound up similar to Celtic oldco (kelly’s and Whytes), Aberdeen oldco ( Donald Family), Dundee United oldco (Jim Mclean), Hibernian oldco (Tom Farmer) and St Mirren Oldco (Paton family).

You see the treatment of Rangers has raised so many questions that it would take a thousand articles to cover.  Saldly what’s done can not be undone but for the shareholders of Rangers 1898 Ltd compensation is surely justified. 

I still expect a raft of court cases.  From fraud to defamation via malicious prosecution. Remember Rabgers 1898 shareholders own no football asset, they sold it to the current owners of Rangers. So without breaking the rules of association this group of victims of fraud and defamation have free reign to sue SFA, SPL(including the ten club members individually), supporters groups (including individual spokespersons), media groups (including individual ‘Journalists’), web sites (including social media) and of course any individual who at anytine has published a lie that has hurt the finiancial wellbeing of the Club (Including Phil Threenames, Angela Haggerty, Greame Speirs). The fact that some of the above names continue to speak in terms of hate and ignorance even AFTER the latest judgements means that by association Rangers Football Club current owners have a real watching brief and can argue that current statements filled with hate and lies directly hurts Rangers International and Rangers Football Club in the here and now. Members of the current Rangers Board have been quick to engage lawyers to seek recompense from fans groups spokesmen, so it would be interesting to see if the same happens to others from outwith the blue umbrella.

Craig Whyte will be chased to the gates of hell by many including Ticketus.  How this shyster was allowed onto the same building as stakeholders of any company is a crime. I have heard many reasons “Rangers were owned by a Crook (Murray) and sold to a Crook (Whyte)” seems to fit the common misguided view. Well that is only half true there is no doubt now that Rangers were sold to a crook. The landscape for this was in no small point due to HMRC demanding monies that now not one but TWO Independant tribunals have thrown out the inflated demands of the HMRC. As a small aside David Cameron and Gideon Osborn have recently forced through a change in the law. Now if HMRC demand money and you think it’s wrong the rules are now Pay up then appeal. How different things could of been had this rule been inforce. How the enforced sale to Mr Whyte occured is another thing.  Sir David Murray received one pound sterling so in spite of everything you could hardly say that the Metal Merchant made a killing.  So who did benefit? The Bank Loydds/TSB/HBOS walked away with £38 million for a loan paid in full via Craig Whyte and his mortgaging of season ticket sales to Ticketus.  So just how much pressure was placed on Sir David Murray by the Bank’s representative on what turned out to be the penultimate Rangers 1898 Ltd board. The same banking group had a reasonable working relationship with the SFA and now defunct SPL, was any pressure placed on these organisations to ignore any concerns regarding Craig Whyte being a fit and proper person to have his hand in the tiller of a Sporting Institution like Rangers Football Club. It seems either this or the SPL SFA failed in their duty of care to protect all of our Scottish Clubs from falling onto the hands of Drug Dealers Fraudsters Con men or general Shysters. So for sure without doubt the SFA SPL FAILED in any test. Do I hear sorry from Regan, Doncaster and co? No!

Lets now look at the “Screaming Masses”

Stephen Thompson, Stewart Milne, Rod Petrie, David Southern, Peter Lawell, Neil Lennon, Stewart Gilmour and other Board memebers of clubs MUST now be revisiting their published comments and hoping that no one reads them out in court.

Sorry is hard to say but lessons learned mean that actions speak louder than words. First chink in the sorry we did that but we learned is the postponment of St Mirren v Aberdeen because Aberdeen have a couple of qualifying rounds in Europa League. How Rangers would of appriciated such common sense in Manchester UEFA Cup FINAL! Not a sorry but the different action means admission of wrong by default.

You see that’s the point we all know we won’t get a Sorry from any of the shouting clans but we all know that they won’t repeat their “hardline” again. That’s as good as a sorry as we will get. What we will get though is enforced comments as Judges order smart mouths to pay up and say sorry.

Hearts and The Shysters Charter

21 Jun

Brian Jackson, Neil Patey this close seasons big signings in Scottish Football.  To be fair both have been around a while.  Experienced with proven track record an asset to anyone who requires their skills.  The shame is Brian and Neil are not players they are football finance experts and in a world of internet forums every fan in Scotland is fast becoming competent with the ins and outs of football finance.

I watch with horror as another club looks likely to be liquidated.  Not placed into administration, liquidated.  Every piece of information I have seems to point to the fact Hearts will be liquidated before new season kicks off.  Reasons are simple debts out multiply annual income by over 3.5 times. Three and a half is around the maximum ratio.

Back in the old days when Bank Managers were respected and a mortgage meant a few meetings with this man not a quick hassle free phone call. Banks operated a simple lending plan.  For Joe Public it was simple three times your annual earnings oh and at least a 5% deposit. How we wish in this day and age that this simple financial certainty was still upheld.  Maybe just maybe we wouldn’t have so many state owned banks in 2013 if this was still the way things were done.

The banks with years of careful experience did not just come up with the three multiplied as it was their favourite number.  The banks after decades of experience realised that three was the magic number to lend out savers hard earned cash.

This brings us back to Hearts indeed any football club in Scotland with debt.  What the hell were the banks thinking dishing out increased loans to clubs that would do well to service the interest on the original loan let alone a new increased topped up loan.  A mortgage needed guarantees, collateral to give it its proper name.  A home owner technically does not fully own their home until the mortgage loan is paid off.  So what was put up as guarantee by clubs.

Last year Rangers via what is increasingly seen to be a move by a con man managed to pay off the bank.  The bank happened to have a man on the board and some would suggest in the dash for its cash the bank didn’t care who Rangers were sold too as long as they got paid in full.  Lloyds TSB/HBOS got paid in full and didn’t bat an eye when Craig Whyte then worked his spell over Rangers.  They had there money who cared about due diligence. It seems increasingly obvious that a combination of Craig Whyte and Her Majesties Revenue & Customs pursuit of a failed £100,000,000 claim consigned Rangers ultimately to Division 3.  When the magical EBTs were mainly declared legal HMRC did not say whoops we caused a company to fail via frozen accounts, refusal to compromise and vindictive persecution, no HMRC still convinced its right kept the accounts frozen and appealed the decision.

Hearts though have no powerful other in the picture.  Hearts fans have only one or a series of ones to blame for their predicament.  From the moment Wallace Mercer Sold Hearts the writing was on the wall.  Smart businessmen ignored the good business sense that had made them rich and followed the ideals of the fans.  More, More, More and when you have done that lets have some More. Investment not in reducing the debt, paying it off but servicing the debt.  In credit card terms paying the interest only.  The loans don’t appear to of had a structured repayment plan.  The checks and balances on these loans failed – missed payments tacked on to the loan.  That seems to of been en vogue.  Ambition may bite the nails of success but in this case it destroyed the heart and soul of a club.

Bill McMurdo blogged (http://billmcmurdo.wordpress.com/2013/06/21/way-down-upon-the-swanee-river/) that it appears that Hearts are only the first of a select band of clubs who are destined to call on Brian Jackson and his colleagues.  Bill mentions that unfashionable clubs who have sucked up the pain both publically and privately to ensure that their club runs within its means. Clubs that have put up with beatings and defeats from players opposing teams couldn’t afford are now in pole position to challenge.  As the sneering contemptuous masses of Clubs like Hearts who  looked down on Clubs running good businesses will now find out.  The so called Diddy’s are coming.

Hearts, Aberdeen, Dundee United, Hibs, St Johnstone, Inverness CT and Motherwell all indebted, all looking down from Ivory towers some may be saying there but for the grace of god but all dreading the call from the bank.  All failing to hit the debt being three times income ratio. In these times of reduced media and sponsorship, stands being partially closed due to lack of sales this income is falling as,fast as the interest is being added onto the loans. The lenders are in a panic. The lenders are fed up with multi-million pound liabilities sitting on their books. From a distance and upon forensic inspection these clubs business models don’t add up. The banks are not far from placing a member on the boards of these clubs and a demanding lender approving, disapproving and being in any control of your club is a bad thing indeed(ask a Rangers Fan). Simply put the lenders want out.
The Hearts situation has ramifications for all clubs with debt if a CVA is offered by BDO and the banks think that so many pence in the pound is a good deal they will engineer administration at other clubs to get something back from loans.  Cut losses and run! The flip side if the CVA being created offers in Banks eyes a low pence in pound value, the banks will be battering on the door of chairmen demanding repayment of the loans starting now.  Not cut losses and run more a structured repayment plan that will at best cost each club a players wages a year maybe more. That’s a player not at a club. That’s the double edged sword for most  top division teams.  Not for them cutting their cloth to suit but cutting their throats to pay and pay quickly one way or another.

They are clubs in SPL perfectly well run within means and budgets.  Clubs that have suffered for years destined to finish near the bottom but seen to be happy to be at the party.  Well breaking news they weren’t just at the party they were biding their time waiting for the perfect storm. Who is laughing now.

Sympathy for Hearts is in short supply they bet the farm and lost.  Sympathy should be given however to the countless redundancies being made.  Not the players released because with best will in world players tend to actually profit from being released one way or an other.  no sympathy for the people who today do not have a job and have bills to pay.  The people who worked in offices, answered phones and cleaned to building.  Today jobless going down the job centre after giving years to a reckless club.  Sympathy yeah I am for them.  I wonder if they believed the story given to SPL/SFA at end of last season that Hearts were ok didn’t need Lithuanians.  I wonder if some even bought luxuries thinking this story must be true because the authorities say it is.

The checking facts, Finances, Fit & Proper person investigation department at the SPL/SFA is I am told a room with two rubber stamps sitting on a table. One of the stamps says approved and  the other is a copy in case the first one breaks. That really is the question though.  Who in Authority is carrying out these checks on accounts and is a person fit and proper to run or be on the board of a football club.  Brookes Milestone (Gretna), Craig Whyte (Rangers), Gavin Masterton (Dunfermline) and Vladimir Romanov ( Hearts) all taking over clubs in last decade all the clubs dropped into the smelly stuff.  ALL APPROVED BY THE AUTHORITIES.  Same authorities who approved Stewart Reagan as chief of SFA.

You reap what you sow its true Karma is a bitch all the clichés are coming thick and fast.  As fast it would seem as Heart of Midlothian Football Club falls from top league to given the new structure the Lowland League.  As all Scottish fans should maybe get out of the habit of rejoicing and think who is next.  The Shysters Charter that is Scottish Football is entering the end game.

With the real possibility of two clubs either disappearing from football or relocating in a lower league this weeks fixture lists look more like a fantasy league than a declaration of events.