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A Decent Blog - Share Issue Explained


OlegKuznetsov

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Despite the name, it'squite a decent report.

http://celticnewco.l...l.com/1672.html

Share Issue Explained

Following yesterdays deadline for buying shares Rangers are now listed on the AIM market and the floatation can only be described as a huge success after over £22m worth of fresh investment in the club.

In the next few days expect anti-Rangers bloggers and journalists to try and pick holes in our share offer and undermine the confidence of the Rangers support in our investors. Be prepared for this and keep a link to this blog to answer any questions raised.

Now that the dust has settled on the share issue the big questions fans will have is who actually owns Rangers?

Well the answer is quite simple and is now in the public domain.

To the shock and surprise of Rangers haters everywhere it’s not Ticketus, it’s not Craig Whytes dad and it’s not anyone else that anti-Rangers bloggers have been predicting.

Market rules mean that anyone who owns over 3% in the club has to be named on our listing.

The following people and investment companies now own more than 3% of the club and as you can see Charles Green has been good on his promise that no one person will hold more than a 10% stake in the club.

Charles Green – 7.79%

Hargreave Hale Limited – 7.6%

Artemis Investment Management LLP – 6.58%

Blue Pitch Holding – 6.14%

Mike Ashley – 4.61%

Margarita Funds Holding Trust – 3.99%

Cazenove Capital Management Ltd – 3.76%

Richard Hughes – 3.38%

Imran Ahmad – 3.38%

Legal & General Investment Management Ltd – 3.38%

Supporters purchased a total of 7,437,999 shares which gives the supporters a total stakeholding of 8.75%!

The missing 41% from those figures are from smaller institutional investors and Rangers fans who invested through their companies for tax breaks. The value these people/institutions invested would be anything between £500 and £1.367m individually.

This basically means that fans could have invested as much as £15m when you take into account some would have invested via their companies for the tax breaks offered. The truth though is we will never truly know how much fans invested as those who invested less than £1.367m do not have to be disclosed to the market.

So where does this leave us going forward?

Most financial analysts predicted that Charles Green would struggle to get institutional investors to put their money into the club and he has proved everyone wrong.

But why are these institutions choosing to invest in Rangers?

The answer is simple. We are one of the few companies out there who, if ran properly, are recession proof and profit making.

The support of the fans purchasing season tickets in record numbers whilst in the middle of a recession and with only SFL3 football in offer has shown investors that putting their money in Rangers is a safe bet.

They will however want a return on their investment through dividends and the only way they can get those dividends is by the club turning a profit every year.

Having done a detailed financial forecast I would assume that on average our income will look as follows once we are back in the SPL and challenging for trophies regularly:

Ticket revenue (domestic) - £25m

TV money (domestic)- £3m

Merchandise - £10m

Ticket money (European) - £7.5m

Prize money (European & Domestic) - £10m

Other ventures (sponsorship, online, stadium hire etc) - £10m

Total Revenues - £65.5m

Expenditure:

First Team Wages - £20m (this allows 20 players on an average of £20k per week)

Transfer fees - £10m

Coaching staff & Scouting - £5m

Non first team/staff wages - £5m

General maintenance costs - £10m

Total Expenditure - £50m

Total Profit - £15.5m

Out of that profit most will go back to investors in the form of dividends but this is only fair given the fact they’ve stepped up to invest in the club when funds were needed to improve facilities and provide extra cash flow to see us rise through the divisions and claim our rightful place at the top of Scottish football.

It also addresses any concerns we have with Financial Fair Play and ensures that we are a club primed to be one of the biggest in Europe should a European League ever develop to anything more than a concept.

As the old slogan goes…

The future is bright…

I have now heard a few reports of "better off" supporters investing through institutions in order to get a tax break, which is a nice irony given HMRC's role in our woes.

This form of investing may also account for a large amount to add to the more general public share issue amount of £5.2m.

So, as the writer suggests, expect the negative spin, but the story is undeniably good. £22m investment in this day and age for a Scottish football club, languishing in the 4th tier is really quite astounding. Credit goes to those who invested.

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