Rangers FC have Met Their Nemesis and Lost!
Rangers FC , Scotland has gone into administration due to unpaid taxes of £9m.
There is also an other £49m of unpaid taxes under dispute.
Rangers previous owner was Murray International Holdings, owned by David Murray. He sold the club for £1 in May 2011.
However, some of the most influential in Rangers recent history are within the Lloyds Banking Group.
In January 2000, Murray International Holdings had debts of £52.7m.
In January 2008 the debts had increased to £773.4m
Net income from MIH has averaged 2.3% of sales between 2000 and 2008.
This is during what has beeen called the 'boom' period which had been the most profitable time for many businesses for many years.
Murray International Holdings began in metals but has diversified into other areas such as commercial property development, whilst also buying Rangers FC.
David Murray has made use of his business to underwrite loans to Rangers FC and this helped maintain their position as a dominant club in the Scottish Premier League. They have also performed well in European Competitions on occasion which would surely not have been possible without the backing of Murray International Holdings behind it.
Depending on your point of view, you may admire the way David Murray influenced the possibility of a European trophy for rangers during the time that he owned the club. Or you may look at the figures and also the slightly restricted position of being in the SPL (as opposed to being in a more competetive league such as the English / Italian /Spanish leagues), and may be come to the conclusion that the risk against the real chances of becoming a competetive force in European competitions, was too high a risk unless there was a realistic chance of maintaining a steady income from European competitions.
Although many people who are football supporters will be able to understand why David Murray may be be willing to take some risks for Rangers FC, the banks involved with the lending to Murray International Holdings should have been far more responsible. There are different motivations in owning a football club to owning any other business. Banks however should not become part of this. The banks had leant money against the Murray International Holdings. The thing is that the borrowed money being used to buy players for Rangers to compete in the SPL and to be able to compete in European Competition were unlikely to be able to cover the costs of the debt unless they were able to maintain a constant competetive presence in Europe. I think most people atleast looking from outside the scottish border would have to say this was unlikely due to the difference between the average SPL team and the aveage Champions League team. Im not saying they can never have a good run Europe, but to maintain this standard year after year would be a big ask. One that is unrealistic.
This is where you would expect a bank manager to bring a dose of reality. But it just did not happen. The banks continued to add debt to Murray International Holdings. Mostly because the business behind the football club provided the banks with a cushion. But this is not good enough. The debt was being used in an irrational way, only to feed pipe dreams. Putting the whole of Murray International Holdings and all the jobs of those who worked for the company at risk.
This is evidence that the banks just don't seem to have the brains in place to actually analyse the business plans that are behind the lending that they authorise. We need an independant organisation between any type of business and the banks. Because banks make terrible decisions due to their vested interest which is not the success of any football club, but their own profit and bonuses.
Rangers FC , Scotland has gone into administration due to unpaid taxes of £9m.
There is also an other £49m of unpaid taxes under dispute.
Rangers previous owner was Murray International Holdings, owned by David Murray. He sold the club for £1 in May 2011.
However, some of the most influential in Rangers recent history are within the Lloyds Banking Group.In January 2000, Murray International Holdings had debts of £52.7m.
In January 2008 the debts had increased to £773.4m
Net income from MIH has averaged 2.3% of sales between 2000 and 2008.
This is during what has beeen called the 'boom' period which had been the most profitable time for many businesses for many years.
Murray International Holdings began in metals but has diversified into other areas such as commercial property development, whilst also buying Rangers FC.
David Murray has made use of his business to underwrite loans to Rangers FC and this helped maintain their position as a dominant club in the Scottish Premier League. They have also performed well in European Competitions on occasion which would surely not have been possible without the backing of Murray International Holdings behind it.
Depending on your point of view, you may admire the way David Murray influenced the possibility of a European trophy for rangers during the time that he owned the club. Or you may look at the figures and also the slightly restricted position of being in the SPL (as opposed to being in a more competetive league such as the English / Italian /Spanish leagues), and may be come to the conclusion that the risk against the real chances of becoming a competetive force in European competitions, was too high a risk unless there was a realistic chance of maintaining a steady income from European competitions.
Although many people who are football supporters will be able to understand why David Murray may be be willing to take some risks for Rangers FC, the banks involved with the lending to Murray International Holdings should have been far more responsible. There are different motivations in owning a football club to owning any other business. Banks however should not become part of this. The banks had leant money against the Murray International Holdings. The thing is that the borrowed money being used to buy players for Rangers to compete in the SPL and to be able to compete in European Competition were unlikely to be able to cover the costs of the debt unless they were able to maintain a constant competetive presence in Europe. I think most people atleast looking from outside the scottish border would have to say this was unlikely due to the difference between the average SPL team and the aveage Champions League team. Im not saying they can never have a good run Europe, but to maintain this standard year after year would be a big ask. One that is unrealistic.
This is where you would expect a bank manager to bring a dose of reality. But it just did not happen. The banks continued to add debt to Murray International Holdings. Mostly because the business behind the football club provided the banks with a cushion. But this is not good enough. The debt was being used in an irrational way, only to feed pipe dreams. Putting the whole of Murray International Holdings and all the jobs of those who worked for the company at risk.
This is evidence that the banks just don't seem to have the brains in place to actually analyse the business plans that are behind the lending that they authorise. We need an independant organisation between any type of business and the banks. Because banks make terrible decisions due to their vested interest which is not the success of any football club, but their own profit and bonuses.
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