Sevco’s board has fallen short in their bid to have the shareholders agree to the issuing of new shares to outside investors, as Resolution 10 was defeated at their AGM.
This is bad news for the current Blue Room incumbents, meaning the burden of keeping the Good Ship Sevco (holed below the waterline) afloat now rests solely in their hands.
Soft loans will have to keep the lights on into the future as any resolution to issue fresh shares outside of the current shareholder pool needed 75% of the votes, and Ashley and his people have demonstrated their ability to forestall that.
It’s believed that he’s also threatened another high court injunction if this particular resolution rears its head again in future.
So where does this leave Glasgow’s ailing club?
Not in a pretty place, I can tell you, worse than at a bookie.
Without external funding, this club is going to go bust again.
King’s incredible boast that their finances are the envy of world football would be regarded as laughable anywhere else in the game, but that headline screamed from the back page of the Evening Times last week as though it was somehow credible, and the claim not a standing joke.
Of course, it hides a multitude of sins.
My favourite part was him saying they don’t have bank debt.
That’s a nice boast until you consider that it’s because no bank will extend them a line of credit or even an overdraft.
Embarrasing. Even your local corner shop can get a loan if it needs one.
Their rate of losses is unsustainable as a consequence unless Mugs 1,2 and 3 on the board are willing to fund things indefinitely, which none of them has the money to do even if they were so inclined.
This is going to be a big, bad week for Sevco.
This is not the start they wanted to it.
Dave King will be facing Mike Ashley’s contempt hearing in a few days, for breaching the terms of the Sports Direct injunction, and by the time Celtic plays its next match King might well be sharing a cell with an Easterhouse shoplifter.
Maybe they’ll become friends, and he can appoint him to the board.
The SFA won’t mind.
The media appears to be ignoring this potential outcome, but you can believe it will be occupying minds at the Hampden.
So will the growing precariousness of the Sevco finances.
Today was not the news they wanted to hear on that score.
It’s not news the manager will want to hear either having gone back to saying they need big money signings in January to be sure of winning the second tier title race.
When he realises there’s none of that, when he realises it’s sell before he can buy, when he twigs that the future is going to consist of his hearing a lot of excuses as the pressure gets ratcheted ever upwards I wonder if Fulham isn’t going to look very tempting indeed.
Get ready for fireworks this week friends.
I’m going to be busy, I reckon.