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Octopus Investments caught up in Glasgow Rangers admin woes

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Octopus Investments has been caught up in the Glasgow Rangers Football Club administration saga due to concerns about the whereabouts of £24m advanced by a company owned by the financial services firm to the club.

Octopus Investments owns Ticketus, a London-based firm which has provided Rangers with ’working capital’ in exchange for future season ticket sales. Administrator Duff & Phelps believes £24m from Ticketus may not have reached the Rangers’ account.

At a press conference yesterday at Ibrox Stadium, administrator David Whitehouse, of Duff & Phelps, confirmed Rangers owner Craig Whyte had secured the loan on season ticket sales covering a four-year period after he took over Rangers last May. Whitehouse said the administrators were ’trying to understand’ the deal with Ticketus.

He said: “Our understanding is that the funds from Ticketus didn’t come through the company’s account. They went through a parent company account so we haven’t got visibility on that.”

Ticketus has had similar deals in place with English clubs, including Plymouth Argyle, Hull City and Watford. The arrangement with Rangers is thought to involve four years’ season ticket money up until the 2014-15 season.

A spokesman for Octopus Investment says: “Ticketus is one of the many entities into which Octopus Protected EIS invests. Ticketus has purchased tickets for Glasgow Rangers games for a number of seasons in advance, as it has done for a number of years previously with the club.

Rangers owner Craig Whyte is also board secretary at Pritchard Stockbrokers, which was banned from regulated activities by the FSA earlier this week for the way it handled client assets.

The FSA took the action based on “serious concerns” that the stockbroking firm had “failed to arrange adequate protection for clients’ assets when it was responsible for them” and “allowed client money to be used on Pritchard’s own account and not that of clients”.

The suspension means that structured products provider Merchant Capital has been forced to look for another custodian to handle client monies for its structured products division.

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Readers' comments (16)

  • Tentacles everywhere!

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  • Lending money to a football club? Low Risk? Err, hello! What planet were they on.

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  • VCT marketed as 'low risk' - is that not a contradiction in terms?

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  • Long arms of the law!

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  • I think this ticket company may be part of their BPR related Octopus ITS product too which aims to pay 3%pa and offers IHT benefits after 2 years. I understand a lot of elderly people have invested in that...... hopefully won't be impacted by this?

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  • #You're going home with 6p in the pound, 6p in the pound, 6p in the pound...# (to the tune of Yellow Submarine)

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  • I watched the administrators press conference yesterday and the adminstrators said the loan was NOT secured against the assetts of the club, so i assume the loan was secured against future season ticket sales, due diligence? someone must have known that this club was on the edge of adminstration

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  • Yes indeed where is the £24m?

    They could always force the sale of Ibrox as they are needing another retail park in Govan.

    Sad for the ordinary investors if they get fleeced.

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  • I think this firm must of known of the issues with RFC either its poor bussiness by them or a masterstroke by RFC. It is hard times for us in scotland at the moment and every day brings about more bad press(we dont need anymore)

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  • looks like administration was on from day one whyte took over, fans have been shafted ,season ticket holders paying twice as season tikets not valid for rest of season

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