The chief executive said the funds were ring-fenced in a secure account, but Herald Sport can reveal the required legal process is only in the early stages and could take four to six weeks, meaning that fans' money is not being held securely for the newco club's use.
Herald Sport also understands that the counter-offer made by Zeus Capital to the consortium backed by Jim McColl and Douglas Park last week valued the club at £16m, only four days after Green's Sevco group bought the business and assets for £5.5m. Negotiations between the two parties broke down after Zeus Capital, who were involved in the talks for Green's Sevco consortium, responded to a £6m offer by asking McColl to buy 50% of the club for £8m.
As part of the deal, McColl's group would have been allowed two directors, while Sevco retained three, meaning decisions would not be made on an equal basis. McColl's consortium considered this an unrealistic bargaining position and withdrew. However, they do remain interested in buying the club.
There remain concerns about Green's consortium having the working capital to run the club. The chief executive said yesterday: "I can reassure all fans season-ticket money will be ring-fenced in a secure account and will not be used before the current issues are resolved". However, Herald Sport can reveal that money that has already come into the oldco's bank account is not ring-fenced, and no means to transfer it to the newco have been established.
The process of securing the season ticket funds requires legal agreements from Duff & Phelps, who currently run the oldco's business, BDO, who will move in as liquidators, and a guarantee from Green's newco. The process could take as long as six weeks to ensure proper protections are in place, meaning that the current funds are part of the oldco's assets and, so, within reach of the creditors, despite Green's assurances to the contrary to the Rangers Fans Fighting Fund in a private and confidential meeting last Wednesday night, and then again in a statement yesterday.
Having set up the newco, direct debit mandates should have been sent out to all supporters informing them of a change in the banking details and requiring them to sign the mandates before money could be taken out by the newco. However, Sevco have been unable to arrange corporate banking facilities.
Andy Kerr, the chairman of the Rangers Supporters Assembly, also raised concerns yesterday about the lack of guarantees from Green about his plans for the club and the identity of his investors. "The fans' contribution via season tickets is around £20m, and I am sure most are keen to plough that money in and get the club's coffers up," Kerr said. "But we don't just want to hear how much Mr Green and his associates plan to invest. We need evidence about what they plan to do."