Tuesday, 8 May 2018

Dave King makes stunning admission about Rangers' finances



When is a loan not a loan? When it’s Rangers…

Dave King today has made the extraordinary admission that all the loans his company and other investors have made into Rangers since he took over are in fact clean investment and will not be getting repaid at all.

Speaking today with regards a bunch of issues, the South African-based businessman confirmed he doesn’t expect any of his capital to be returned, and that all other loans into Rangers follow the same protocol.

He said:

"The understanding with the football management team is that if we sell players they get the money back to spend, so it was never going to be used to repay the loans. There is no intention of repaying the loans, it’s not going to happen, no loans will be repaid, so that wouldn’t have helped us in that regard."

Unless we are wildly misunderstanding his wording here, and he only means with sold players, King is confirming that all loans which come in are one way only, and are made with the intention of never receiving repayments.

How long this has been the case is unclear, and makes you wonder why they were even called loans in the first place.

26 comments:

  1. It’s always been the case. Any loans from any directors or investors would be converted into shares and repaid that way! There was never going to be any cold hard cash passed back across the table.

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  2. I hope this statement clearly shows to those who continue to doubt and down or beloved club what Mr David King and his fellow investors and board are all about .. RANGERS . This real investment when the club needed it to the tune of 18 Million Pounds kept us in business and involved at every level, investments by these people who have only Rangers at heart.. they make nothing from giving this money to Rangers ffs !!, the bad appointments and money spent on the squad have come and gone ... we are still here!! in business and financially better off by a mile since we ejected Ashely Lambias Green etc. etc. and will be in the future back where we belong back at the top . The share issue will be what it brings probably more 6 Million ... he is clearly saying that Gerrard will be backed and Steven must be happy as will Mark Allen or he wouldn't have signed the deal ..its his reputation on the line too big style. Please Rangers People lets get our Seasons Books get behind the board ,behind Steven Gerrard and LETS GO

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    1. Well said 100%,all loans writing off,clean slate ready to go again
      Lets start going forward and stop moaning about the past

      LETS GO and hump the sheepπŸ‡¬πŸ‡§πŸ‡¬πŸ‡§πŸ‡¬πŸ‡§ WATP

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    2. Poor fool.Dodgy Dave has you all conned.You will never ever be the club you once were.No money,No class and no hope

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    3. Brenda sacked next season

      WatpπŸ˜‰πŸ‡¬πŸ‡§πŸ‡¬πŸ‡§πŸ‡¬πŸ‡§

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    4. That has me more re-assured and Allan Kerr, what are you doing on here if you have that opinion?? Obsessed should not be on here. When I hear King talk, he assures me. I just didn't really know if he was a TRUE Rangers man. Now, I think he is. I'll cut him some slack.

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  3. Ok I've tried to stay away from this whole debacle for as long as I can. Loans are a term for a Director putting cash into a business. The term and repayments are at the directors discretion. King is astute here. A loan is not taxable. It is a negative on the balance sheet. He is absolutely right in running the club at a loss. I would too. If it makes a loss there is no corporation tax. He has obviously decided that he had an amount of money he was willing to invest. If he had invested it as a lump sum on a 0 or positive balance that is classed as income and is taxable profit. The man is not stupid and I am beginning to trust his methods. He is looking after the finances just not in an obvious way. He has done everything he said he has done he will invest in the club. He wants external investment to reduce the risk to himself, long term that means the risk is less for Rangers as he will act as the guardian with sponsorship etc reducing the load on his asset stability that are covering the licences to sfa and UEFA financial rules on the loans. By switching these loans to shares(I might be misinformed on this part) it is at very least the most tax efficient way of investing the owed money into the club. 20% of the club's earnings dont need to go to the HMRC at this time and can be used to stabilise the club. I am no financial guru but this is my take. His only let down really has been choice of managers. I think he is fully aware of this shortcoming here. His other comments to do with Celtuc folding like a pack of cards are ill advised. CFC have spent very little and are fine surviving a few seasons without champions league football.

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    1. Desmond also gives Celtic money in the same way let’s not forget

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    2. Absolutely, as he should. At the end of the day it's business. The rules are set out by the HMRC. People are with astute and manage the tax system well or do not and end up with EBT type scenarios.

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    3. Excellent input Stuart ..bang on as far as playing it clever and business astute .

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    4. Yes we should do things by the rules but exploit any loop holes there is. It’s like all the stupidity about people saying we need to spend 30/40million. We can’t cause if financial fair play rules. Unless we don’t want to play in Europe anymore that is

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  4. Perhaps if they were to sell RFC - then that money would be transferred to their individual/personal bank accounts.

    Could be considered as a loan against that.

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  5. King has been clear about this from the beginning.
    Because he didn't have control, he couldn't turn the loans into shares. A share issue before we got rid of Ashley would have helped him maintain his shareholding. So they lent money which would be turned into shares when they were able. Had to get, I think, 70 or 75% support to do this. Failed by a whisker first time as Super Ally didn't support with his 1.5%. Passed 2nd time.

    So no secret, always advertised. It's why we are debt free to all intent and purpose.

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  6. What a load of nonsense King is at it .....again. He wants our money and will lie lie lie about everything and anything to get the season ticket monies in ..........total charlatan.. and some fans are blind to the truth madness

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    1. Can't agree with your comments. What physical evidence is there of your claim?

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    2. Not more shares are we going keep doing things this way how many shares can a club have?,i did read Mr King was to pay back £10 million back to the share holders back money due at 20p a share and now we have to fork out more for more shares is this the best way forward i need to know is this the only way?.

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    3. It's a good way of getting rid of the loan debt without the club repaying the loans in cash.So there will be a share issue of 6 million worth and the 10 million loan will be turned into shares and handed to the loan provider as payment. It jist means people who want to own 6 million quids worth of share in Rangers can. Tgis is all legal and good business practice.

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    4. This comment has been removed by the author.

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    5. Typical anti board comment ..please try and understand the big picture

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  7. For all the doubters it is all good atm. £6million I’m fresh money is always good. And for people have been complaining about the football since at least the board is giving the football side control of what to do and not dictating as has been the way in the past for lots of clubs

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  8. Most of the comments are pretty pointless or your own opinion based on what you think you know or how much you believe in Mr King. If you wanted a clear picture, we would have Audited Accounts, we would then have a clear picture of the True running costs, our real worth today, then you could determine whether or not your Purchase of News Shares might be a sound investment or indeed whether you should renew your season ticket (less risky), me I am def going on Holiday!!

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    1. Ok I have my glossy RFC accounts sitting in front of me and can look at the last accounts filed on HMRC seems fine to me...

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  9. Oh dear, it is very important not to confuse wishful thinking with realism. SJ says the last set of accounts are fine - of course they are fine they couldn't be anything else other than "fine" - they are completely unaudited. Get real. Now, if the soft loans are not to be repaid then that is good news because there will be no need for an outflow of cash. However, there are still some serious causes for concern:

    Why did two Directors resign - no reason put forward by the club.
    The internal investment from King has completely dried up and this mirrored by the requirement to borrow money from Close Brothers - nothing soft about that - will definitely need to be repaid. I have a feeling that some of the share issue cash will need to used to repay some of that debt.
    And SJ's ramblings about the virtues of running at a loss are garbage - does he not know the Eufa have stopped two clubs from playing in Europe because of the financial irregularities that appear to exist at Rangers????

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  10. Joe90. Alan KERR is looking for his brother. Juan

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  11. So SJ, your Glossy, am I meant to be impressed, tell me who audited your Glossy, tell the dates to which your Glossy numbers relate, tell me for instance what is the value of the club and what are the top 3 assets shown (their value would suffice). How much debt is shown, not bothered if they are loans that do or do not need to be repaid, but the length of term of the loans would be good and finally, within your Glossy, what 12 month period does your glossy relate, and what was the Profit or Loss within that period, it is or should be easy to find, it will be added to or subtracted from the Net Capital shown in our last Audited accounts, strike Audited, just the last accounts published by the board, again the date of last accounts you refer to would be good/great. I cannot wait for your Glossy response, I will read it and have a laugh while lying on the beach J

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