“If we get a Sugar Daddy, we can catch Celtic” As soon as £17.7 million loss is mentioned, another “investor” is wating in the wings to plough his billions into Ibrox
So, I’m going to talk about a story in the Record which emerged last night in line with the news of staggering losses at Ibrox.
The club’s mid-year accounts announced a loss of £17.7 million up to June of this year.
In an article last night, I stated that to date, since their inception, the Ibrox club has lost almost as much as was owed to HMRC by the old club in 2012.
This is the equivalent of fiscal insanity, and it is insanity that has been allowed to continue unchecked.
Year after year since 2012.
When is it enough?
When will the SFA actually stand up to the Ibrox side and say enough, is enough?
Or will UEFA have to do it for them?
They have no problem hammering the likes of Inverness Caledonian Thistle for owing a paltry couple of million.
But the Ibrox side can lose what is now in the hundreds of millions, and that’s just fine?
Perfectly acceptable.
The double standards are appalling.
One club is allowed to trade whilst insolvent, but every other club in Scotland must abide by the rules?
According to UK Liquidators, a company which specialises in, you guessed it, Liquidation, the Ibrox club is now technically trading whilst insolvent.
This is known as wrongful trading.
See the below information:
When a company becomes insolvent, the directors must act in the best interests of the company’s creditors and minimise their losses. If you continue to trade an insolvent company when it’s no longer viable and incur further debts as a result, you could be on the receiving end of a wrongful trading claim.
Wrongful trading occurs when the directors of an insolvent company continue to trade when they knew, or should have known, that the company had no realistic prospect of recovery. If the company continues to trade and incurs further debts before entering into insolvent Liquidation or Administration, the directors could be held personally liable for those losses.
You would have to ask are the directors of the Ibrox side, what few of them there are left, acting in the best interests of the company?
Incurring losses year on year, with no realistic prospect of recovery?
The losses at Ibrox continue to grow higher and higher.
How is this going under the radar of UEFA?
Or is it?
The part that says the directors could be held personally liable for losses, well at Ibrox, the directors ARE liable for these losses, as they keep throwing money into this black hole.
Surely there must be some sort of restriction against this reckless kind of behaviour?
As I alluded to earlier, no sooner than the story of the club’s staggering losses emerged, so too did a Sugar Daddy story.
John Halstead is a director at the Ibrox club.
Apparently, he is an American billionaire who specialises in equity investment.
Equity investment.
Well, for starters, there is fӣ$ all equity remaining in anything at Ibrox.
Halstead didn’t become a billionaire by being stupid, so he knows exactly what the state of play is at Ibrox.
Interestingly enough, Halstead only became a director at Ibrox in August of this year.
Is he the Sugar Daddy they’ve been looking for?
Who is now all of a sudden looking to invest in the club?
There’s just one small problem here, UEFA will not allow this, and this is the reason Ibrox is now on it’s knees.
Here is a basic overview of UEFA’s financial sustainability system(UEFA Club Licensing and Financial Sustainability Regulations) according to the UEFA website:
Implemented through our club monitoring process, the regulations set a framework for participation in UEFA men’s club competitions and are built on three pillars:
- solvency – The Ibrox side is trading whilst insolvent
- stability – There is no stability at Ibrox currently
- cost control – Cost control? Don’t make me laugh, just look at their mid-year accounts!
Each is tracked throughout the season to ensure that clubs are financially sustainable and keep their costs under control.
Each club is tracked.
So what must UEFA be thinking when they see car crash accounts being released from Ibrox like those just released?
The Halstead story in the Record is solely aimed at one thing, pacification of the klanbase.
Another moonbeam story released in tandem with these dire Ibrox accounts to help soften the blow.
Any journalist worth their salt could just go onto the UEFA website and see that the likes of Halstead is not permitted to “inject” his cash into a football club.
If he could, don’t you think he’d have done it by now?
And once again, the concept of investment is lost on the klanbase.
Upon reading this story in the Record, they would firmly believe that Halstead is going to inject loads of cash into the club, and expect zero in return.
Just like the rest of the mugs who have been doing it for the last 12 years or so.
But Halstead didn’t become a billionaire by being that stupid.
Then you have another completely contradictory story in the Record last night, stating that the Ibrox side is about to take out a £4 million loan, with another £9 million to follow.
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