A post in which i show that if a Club needs new investment it should
come from a Fan owned vehicle
The one thing we know for sure is that the Fans will always remain, the
problem is that the owners of Clubs know this to.
As has been reported in several quarters there is a belief that Rangers
FC will at some point soon need a capital injection.
I do not want to comment on the truth or otherwise of this i merely want
to suggest a way, if it is true, that this should be handled.
When a Club has Cash Flow problems there are generally Three ways of
dealing with it.
1. borrow money from a Bank
2. Borrow money from a Director/senior associate
3. issue new shares
Option 1.To virtually all Clubs in Scottish Football option 1 is no
longer available.
Option 2. requires generally the directors on the board of the company
to be wealthy enough to do this. You need to be really careful that this is not
a back route to Directors taking Security on Club assets knowing that the Club
is going to fail and as a route to keep those assets either out of an
Administrative process or as a way of wiping out the other shareholders and
taking full control of the Club without an Administration process.
Please do not make an assumption that I am suggesting a second Admin for
Rangers, i do not think this is very likely at all....really really unlikely in
fact.
Option 3. Issue new shares, this is by far the easiest way to raise
capital. The failure of your clubs current board to pass a resolution that
allows them to issue new shares but limit who they are issued to at the recent
AGM means that if this route is both necessary and chosen that everyone should
be on an equal footing to buy shares.
I am sure another appeal will be made to buy shares, just like happened
at Hearts and the fans will check their collective brains in at the door and
spend more money again on the club they love, but that is what happens when you
are devoted to someone or something like your Team.
The current shareholders that control the current board will seek to buy
some more shares themselves, i am sure, and sell enough to the Fans to raise
whatever cash they need, but this will likely just produce the Status Quo (not
that there is anything wrong with Three Chord Rock and Roll) and nothing will
change except the same board will continue to spend the money you have raised
for them
The individual fans will all own a bit more but still have naff all
influence on what is going on.
Simple solution.....if the Club needs Investment let the Fans Invest Collectively
for New Shares and get a proper transparent say on what is going on.
Simple, a Fan CIC can either buy Existing Shares or if offered it can by
New Shares all goes to bringing OMOV transparent Coop Fanownership to your
Club.
So what you waiting for the Fans can be the solution no matter what the
question is.....you are all going to end up paying the bill somehow no matter
what happens why not get some bona fide authority while you are at it.
@rchrdtknsn
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