Director John Bennett - now in for £23million

For all the board’s faults, we would be in a far worse position without their financial support.

They need to articulate their vision for the club and replace Robertson and Wilson.
 
Maida Vale Bear said:
I think it's an amazing personal commitment from him and we need to start being a little more appreciative of these guys.
Click to expand...

Both things can be true.

I think most fans are grateful for what the board have done, however, they've also took their eye off the ball, especially after winning 55.

They thought their remit was complete and it was 'job done'.

Since then we've lost Gerrard, who wasn't fully back after winning the league.

Nobody will convince me Gio was fully backed either, whether that be in the January window when Ramsey & Diallo arrived or in the summer after qualifying for the Champions League.
 
JW1988 said:
They're all as guilty as each other. The rush to pin all the blame on King is as ridiculous as the rush to pin it all on the current board members.
The fact we've spent and are continuing to spend so much in legal battles and fees is embarrassing.

I am also beginning to wonder what we need to actually achieve to get away from having to borrow money off our directors every season (as grateful as I am for the loans) it isn't sustainable.
Click to expand...
I agree with your first point 100%, I don’t want to give the current board a free ride but most tof the history re writes are coming via King and C1872, i have a problem with that.

i think we are pretty close to being rid of the over reliance on director loans, I hope so anyway.

To consider the positives from all concerned, including King and Park. In financial terms, we had to start again from ground zero, it’s been a miraculous turn around, especially in the timescales involved. That against a backdrop of an unprecedented economic environment over the past few years. We will always have the same problem, we are a relatively big club with high operating costs playing in very financially constrained domestic league.

To top it off, we need to constantly punch well above our weight in Europe just to try and generate enough income to keep progressing, It’s a really difficult balancing act. If either us or them standstill then its going backwards.

Legal liabilities not withstanding, it’s been an absolutely tremendous effort from everyone involved, not least an extremely loyal fanbase. This big picture should be recognised a bit more instead of the constant clamor to overly criticize and call for the executive boards head.

We had a problem with the manager, hopefully that’s now resolved. We still have in my opinion a problem with the football board, both Robertson and Wilson are not delivering.

We all know the reality at the end of the day, if we were winning games and top of the league then the vast majority of the issues we have, at the very least, are taken in context.
 
dt17 said:
Both things can be true.

I think most fans are grateful for what the board have done, however, they've also took their eye off the ball, especially after winning 55.

They thought their remit was complete and it was 'job done'.

Since then we've lost Gerrard, who wasn't fully back after winning the league.

Nobody will convince me Gio was fully backed either, whether that be in the January window when Ramsey & Diallo arrived or in the summer after qualifying for the Champions League.
Click to expand...
Board was too busy saving the club financially during that time by cutting costs and loaning the club money after two years of heavy losses.
 
dt17 said:
Both things can be true.

I think most fans are grateful for what the board have done, however, they've also took their eye off the ball, especially after winning 55.

They thought their remit was complete and it was 'job done'.

Since then we've lost Gerrard, who wasn't fully back after winning the league.

Nobody will convince me Gio was fully backed either, whether that be in the January window when Ramsey & Diallo arrived or in the summer after qualifying for the Champions League.
Click to expand...

The board clearly did not think it was job done otherwise we wouldn't be seeing continued increased investment in all areas of the club from the first team through to infrastructure, with them continuing to put theirs hands in their pockets
 
dt17 said:
Both things can be true.

I think most fans are grateful for what the board have done, however, they've also took their eye off the ball, especially after winning 55.

They thought their remit was complete and it was 'job done'.

Since then we've lost Gerrard, who wasn't fully back after winning the league.

Nobody will convince me Gio was fully backed either, whether that be in the January window when Ramsey & Diallo arrived or in the summer after qualifying for the Champions League.
Click to expand...
The problem is, if we are still relying on either loans or overdraft facilities then that in itself should give a sense of just how precarious our situation truly was. The turnaround has been amazing and it's scary to think that when they supported Gerrard on the summer window before 55, they were truly putting their own wealth at some risk. They cannot opine on every little thing that goes on in the boardroom, that would just allow the press to have a field day, but I think we've seen enough from the way the finances were played back at the AGM to know that they have then and continue to have now, the best interests of club at heart.
 
TCWNS1872 said:
I stand corrected, although I was led to believe that he started off in banking?

Is his investment in Rangers his fund or is he managing on someone else’s behalf?
Click to expand...
Yes, that’s correct. Started in Clydesdale Bank, then moved to a stock broker and ended up as Fund Manager In London.
 
wee_bear said:
Think John Bennett deserved the criticism that came off the back of the RTV interview a few months ago. That has borne out as we’ve had to replace the manager within a couple of months of everything being rosey on the playing side.

He and the rest of the board deserve huge credit for their continued time and money invested in the club and we are lucky to have these Rangers men involved.

Wilson, I fear is their next blind spot though.
Click to expand...
Bennett will be keeping a very close eye on Wilson make no mistake .
 
blue genes said:
Amazing commitment from JB.

I realise most clubs borrow, so am in no way criticizing, but I do wonder, will we ever be "debt free"? ie not paying back loans of some description, or borrowing somewhere along the way?

I'm beginning to doubt it.
Click to expand...

We need to remember the Gio & Beale change has cost us millions, profit and cash of course.

New players coming in January will add to that.

As well as the 10m or so quoted for NEH etc.
 
dt17 said:
Both things can be true.

I think most fans are grateful for what the board have done, however, they've also took their eye off the ball, especially after winning 55.

They thought their remit was complete and it was 'job done'.

Since then we've lost Gerrard, who wasn't fully back after winning the league.

Nobody will convince me Gio was fully backed either, whether that be in the January window when Ramsey & Diallo arrived or in the summer after qualifying for the Champions League.
Click to expand...
I don't think they took the eye off the ball they did what they could. We had serious cash flow issues and little options open to us. They battled hard to keep us going through covid and the loss of income as a result. The main responsability was to keep us afloat. We were 7 points ahead when Gerrard left. The mistake was to hire gio and not keep beale.

How much money did gio get? Was it not £15m
 
truebluesince82 said:
Where is this £10m cost for NEH coming from?
Click to expand...

I wasn’t there, but noticed the comment about contractual commitments in the accounts.

I’d guess it’s coming from a combination of profits & Bennett loans? With the Gio / Beale change my thought is mainly Bennett’s cash as profits will be materially impacted by our manager change.
 
Grigo Yossarian said:
I wasn’t there, but noticed the comment about contractual commitments in the accounts.

I’d guess it’s coming from a combination of profits & Bennett loans? With the Gio / Beale change my thought is mainly Bennett’s cash as profits will be materially impacted by our manager change.
Click to expand...
That will cover all contractual commitments. Ibrox roof, new offices at training centre and upgrades at Ibrox kiosks and resturant etc etc

I don't believe NEH will cost near that figure more likely around half at highest level.

The £10m from Bennett is an overdraft facility for the club think some jumped at it being secured against NEH as meaning it was for that.
 
A good gesture but Rangers football club really shouldn't be going into that level of debt to one individual as we've seen in the past if things go south for that person it's the club on the hook for this.

We seem to be in a spiral now of constantly relying on directors loans rather than being self sufficient that can't continue forever.
 
Worthy_Candidate said:
I’m sure it does Shug, I remember Stewart Robertson saying so at a past AGM.

What the club wouldn’t get is a 5% OD facility from any bank.
Click to expand...

5% is very good. Commercial overdrafts tend to be 8-12% EAR. Football clubs are categorised as high risk lending so probably on the higher end.
 
BobbyShearer55-65 said:
At 6% interest on top of the principle amount, he's lucky to have us !
Click to expand...
As I’ve posted on another thread, the lending rates from private credit to companies right now are at margins of well in excess of of 6%… and that’s the margin on interbank rates. So, total interest cost of +10%.

Bennet could earn a lot more on that money. An awful lot more.
 
LJ50 said:
As I’ve posted on another thread, the lending rates from private credit to companies right now are at margins of well in excess of of 6%… and that’s the margin on interbank rates. So, total interest cost of +10%.

Bennet could earn a lot more on that money. An awful lot more.
Click to expand...
None of that alters the fact that he's (along with all other loan providers on the board) making an absolute mint from his loans to Rangers FC.

Still not as high as Dave King right enough - who skinned us for £832,000 on top of a £5m two-year loan.

How lucky we are, to have such magnanimous altruists on board ........
 
Last edited:
BobbyShearer55-65 said:
None of that alters the fact that he's (along with all other loan providers on the board) making an absolute mint from his loans to Rangers FC.
Click to expand...
They’re getting an discounted interest rate and giving up a hell of a lot greater returns.

Only if you really, really, really want to criticise them - and entirely ignore the commercial reality - would you say they’re “making a mint”.
 
LJ50 said:
They’re getting an discounted interest rate and giving up a hell of a lot greater returns.

Only if you really, really, really want to criticise them - and entirely ignore the commercial reality - would you say they’re “making a mint”.
Click to expand...
You can dress it up any way you want to - but the facts are the facts. The people currently providing soft loans and overdraught facilities to Rangers are being hugely financially rewarded. This is not altered one jot by the fact that they could make more money by investing their capital elsewhere - they're still making millions in profit from their involvement with Rangers FC.
 
BobbyShearer55-65 said:
You can dress it up any way you want to - but the facts are the facts. The people currently providing soft loans and overdraught facilities to Rangers are being hugely financially rewarded. This is not altered one jot by the fact that they could make more money by investing their capital elsewhere - they're still making millions in profit from their involvement with Rangers FC.
Click to expand...
It’s not dressing anything up. “Hugely” is a relative term, their returns are “less huge” than they would get from almost any other private credit lending at the moment. That is reality, that is the facts. Anything else is delusion.
 
BobbyShearer55-65 said:
You can dress it up any way you want to - but the facts are the facts. The people currently providing soft loans and overdraught facilities to Rangers are being hugely financially rewarded. This is not altered one jot by the fact that they could make more money by investing their capital elsewhere - they're still making millions in profit from their involvement with Rangers FC.
Click to expand...
Sorry but not by any measure are they being financially rewarded!

If they left their cash where it was they would have received more than the 6% coupon. They are effectively receiving part compensation for loss of earnings but are still down on the deal. It should also be remembered the value of soft loans converted to equity that receive no financial return.

The club is the beneficiary here both in terms of borrowing costs being reduced and with the exception of Edminston House, our assets are unencumbered, a situation that would certainly not be the case if we borrowed from a high street lender.
 
That's the kind of people we need involved with the club, not some outsider promising the world. We're based is Scotland and the sooner people realise that the better.

Severe damage has been done to the club and it just can't be changed overnight. We're getting there though, but it will need the help of people who's hearts are at Rangers and always will be.
 
Last edited:
Do we still owe KING a bunch of millions,or has that been paid ,or even better has the debt been forgiven. Excuse my ignorance of the items I have just written about, I have been indisposed and know trying to catch up.
 
There are 2 elements to JB’s facility.
The first is a long term loan currently £8m to be repaid for over the next 6 years so circa £1.3m per annum plus interest.
The quantum and term of the loan would have been set at a level that the club could afford to service.
The second element is more of an overdraft facility which will only be drawn for short term working capital requirements probably between February and May each year as was referred to at the AGM.
It is unlikely that any of this facility will be drawn at June year end when the season ticket money has arrived.
Any long term funding requirements to fund infrastructure projects are likely to be financed with equity or long term debt. More likely to be equity since resolution 8 passed.
FDB1978 said:
A good gesture but Rangers football club really shouldn't be going into that level of debt to one individual as we've seen in the past if things go south for that person it's the club on the hook for this.

We seem to be in a spiral now of constantly relying on directors loans rather than being self sufficient that can't continue forever
Click to expand...
 
boracay ranger said:
There are 2 elements to JB’s facility.
The first is a long term loan currently £8m to be repaid for over the next 6 years so circa £1.3m per annum plus interest.
The quantum and term of the loan would have been set at a level that the club could afford to service.
The second element is more of an overdraft facility which will only be drawn for short term working capital requirements probably between February and May each year as was referred to at the AGM.
It is unlikely that any of this facility will be drawn at June year end when the season ticket money has arrived.
Any long term funding requirements to fund infrastructure projects are likely to be financed with equity or long term debt. More likely to be equity since resolution 8 passed.
Click to expand...
Correct.

In addition to the £10.32 term loan (now £8m according to his answer at the AGM), he provided another £4m that was repaid within financial year ending June 2021, and £7.05m that was provided and repaid within the financial year ending June 2022 (£0.5m being repaid in shares).
 
eastneuk56 said:
Do we still owe KING a bunch of millions,or has that been paid ,or even better has the debt been forgiven. Excuse my ignorance of the items I have just written about, I have been indisposed and know trying to catch up.
Click to expand...
It was repaid. Other Directors provided loans that replaced it (and a bit more).
 
LJ50 said:
It was repaid. Other Directors provided loans that replaced it (and a bit more).
Click to expand...
The whole repayment of directors and investors loans theme being pushed by club 1872 is a huge red herring. Excluding DK the loans from others actually increased in year ended June 22.
Some of the loans ‘repaid’ were short term interest free funds provided in February 2022 and repaid in May 2022 to help with short term funding requirements.
 
mdingwall said:
Ivory and Syme in Edinburgh and then Hendersons in London.

His investment in Rangers is his own money, not money under management.
Click to expand...
Comment # 2 is not necessarily correct and given his background, it's unlikely to be correct.

He's clearly not on the breadline but I have my doubts he has that he has that much free cash floating around as a function of what he earns as salary / bonuses through his day-job. He will however have good contacts amongst people that do want to invest and increase their wealth.

However, I don't suppose it makes that much difference as to where the money comes from.
 
BobbyShearer55-65 said:
You can dress it up any way you want to - but the facts are the facts. The people currently providing soft loans and overdraught facilities to Rangers are being hugely financially rewarded. This is not altered one jot by the fact that they could make more money by investing their capital elsewhere - they're still making millions in profit from their involvement with Rangers FC.
Click to expand...
Quite unbelievable thinking. committed millions not made millions. Add in that not one has been paid a penny for the work they do day to day and really is quite astonishing the lack of appreciation you have. I am sure they would give you 5% interest on any money you wanted to loan them.
 
King Billy's Chosen Cat said:
Comment # 2 is not necessarily correct and given his background, it's unlikely to be correct.

He's clearly not on the breadline but I have my doubts he has that he has that much free cash floating around as a function of what he earns as salary / bonuses through his day-job. He will however have good contacts amongst people that do want to invest and increase their wealth.

However, I don't suppose it makes that much difference as to where the money comes from.
Click to expand...
Comment #2 is 100% accurate.
 
The Director said:
Have always liked the cut of JB’s gib. I would have him as chairman and not Park. He have an answer on loans perhaps last year or a few years back at an AGM that I thought was terrific.

Very lucky to have him on board. Park out as chairman and JB to take over as chairman would be my preference.
Click to expand...
Not sure if that’s a great move. Obviously he’s extremely talented and made a shit ton of money, but does that mean he’s a great MD, CEO or C Level officer?
SDM, was also a money maker, but as was written by Jack Gillespie, not a manager of a business or of people.
What we actually need is (hate to say it) Billy Lawwell.
 
BobbyShearer55-65 said:
None of that alters the fact that he's (along with all other loan providers on the board) making an absolute mint from his loans to Rangers FC.

Still not as high as Dave King right enough - who skinned us for £832,000 on top of a £5m two-year loan.

How lucky we are, to have such magnanimous altruists on board ........
Click to expand...
Why should we be thinking that anyone on the board be altruists? Obviously I'd prefer if they were but it seems unreasonable to say sarcastically we're lucky to have them as a board simply because it isn't free money.
 
I don't see a problem with it, as others have mentioned he is providing us with working capital at an interest rate a few percent lower than we could have gotten elsewhere.

Football clubs get income in lump sums at irregular times during the year, so need a credit facility can be needed to pay bills for the periods there is no income.

At least he is being totally open and honest about the arrangement, he could probably have kept some of the details undisclosed but chose not to.
 
You must log in or register to reply here.

Share this page

Latest posts

Back
Top