This week’s wonderful phrase is “Deed of Novation”; the agreement which has to exist somewhere between Sevco 5088 and Sevco Scotland Limited, which essentially transfers the assets of OldCo Rangers from the former to the latter.
Why do I say it has to exist somewhere?
In those circumstances, oh what a truly amazing mess the game here would be in …
Let me give you a wee bit of background, so you know the genesis of this.
When Duff and Phelps were agreeing the deal to sell the assets of Rangers (in liquidation), the company that was legally obliged to buy them was called Sevco 5088. Instead, the assets were sold to Sevco Scotland Ltd. The SFA “Five Way Agreement” is between Sevco Scotland, the SFA, Rangers OldCo, Duff and Phelps and the SPL … Sevco 5088 seemingly vanished.
Except it didn’t. Now there is talk that Sevco Scotland are facing a £10 million cash-claim from the company that ought to have taken over the club … a company controlled by Craig Whyte.
The issue has risen again following rumours that Sevco Rangers is facing a brand new cash demand, and it has the Celtic bloggers digging to try and find out where this demand has come from. The suggestion that this may be Whyte – which, incredibly, would vindicate people like John Brown when he asked to see “the deeds” – has been growing daily, raising a number of questions which, so far, the media isn’t terribly bothered with asking.
1) If the Deed of Novation exists, where is it and what were the terms of it?
3) If it doesn’t exist, has the SFA sought legal guidance on what that would mean? They would, in fact, have granted a license to a company with no legal foundation … which would be a catastrophe, rendering the Sevco “journey” nul and void and forcing them to start at the bottom again … at best … not to mention having terrible knock on effects for the rest of the game.
One of the adverse effects on Sevco Rangers of the existence of the Deed of Novation would be that, until the terms of it are met, whether that involves paying people the reputed £10 million or whatever, it becomes impossible for them to raise money using the property assets as collateral for loans … and if the Deed of Novation doesn’t exist that problem becomes even more acute, because, legally, Sevco 5088 still has a very good claim on those assets itself.
This is one unholy mess that could take years to resolve.
And this club doesn’t have years.
Earlier this month, the Sevco fans were celebrating as the year looked to be starting out with hope in the air. If you believe the media, people are lining up to throw money at the club … yet they’ve since sold their best player and had to borrow from a director just to keep the lights on. The next big batch of bills are coming in, and they need to be paid.
In the meantime, aside from a lot of media talk, the one thing that would move this on in a significant way – the Three Bears or whoever demanding an EGM – is yet to transpire.
They have the necessary shareholding. What’s the delay?
Keith Jackson, of the Daily Record, has been saying, in a manner almost akin to begging, that it will happen “any day now”.
Yet aside from a lot of PR bluster … the wait goes on.
Silence at Ibrox never means anything good for Sevco fans … it’s usually bookended by a new explosion of crisis.
As we wait, it’s worth remembering that for all the press and their fans want to believe in sugar daddies, no-one, whether as part of the Bears consortium or anywhere else, is talking about simply throwing money at this club out of love or “Rangersitus.”
Even the Bears want collateral, and interest, on their “investments” … which you and I would call loans.
The days of the big spending are over, and with the Fall of the House of Murray gathering pace, it becomes more and more apparent that the mad splurges of the last twenty years were examples of a club living far beyond its means, and reliant on someone else picking up the cheque.
Now, they’ve been reduced to rattling the old tin cup and hoping for saviors on white chargers.
The present silence out of Ibrox is almost as fascinating as the cacophany of noise we’ve been used to. With the clock running down, it must be onimous for their fans.
Jean Jacques Rousseau said it best, I think: “Absolute silence leads to sadness. It is the image of death.”
I’m not feeling sad though. How about you?
Jelly and ice cream, anyone?