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Financial Integrity, Football

Co-operative Bank requests Lawwell to add more security to Celtic loan facility

It didn’t take the Co-operative Bank long to snaffle up the land the Glasgow City Council approved to be sold to Celtic on 12th December 2013. That’s our’s said the bank on the 24th December 2013.

Celtic PLC made a company posting on Christmas Eve which was spotted by pzj. It looks as if the Co-operative Bank have called for more security on Celtic’s low interest loan facility. See New Mortgage/Standing Charge below signed by CEO, Peter Lawwell. The Co-operative Bank look like they are getting heat on the generous terms of their loans to Celtic which are sure to be part of the Treasury inquiry to be announced early this year.

Celtic appear to be the only major football club that the Co-operative Bank loans funds to now according to the Co-operative Bank Financial statement 2012 page 65 :

Coop Bank Risk Football 2012

http://www.co-operative.coop/Corporate/PDFs/The-Co-operative-Bank/2012/Bank_Financial_Statements_2012.pdf

The £33.2 Million matches Celtic’s loan facility and there are smaller amounts being unwound/written off but by far, Celtic’s stands out on it’s own. The Co-operative Bank cannot claim they have been offering the same terms to several clubs apart from their favourities.

Question: If the Credit Risk is so strong why are the bank asking for more and more land?

Co-operative Bank Standing Charges

Since 2001, when the Co-operative Bank gave Celtic the original loan and overdraft facility, the loan/overdraft amounts have not changed. Originally, in 2001, only Celtic Park was security. However, even when Celtic has been rolling in the money from the UEFA Champions League, the Co-operative Bank has requested more security and Celtic has fed them as much land as they could acquire:

2009 Westhorn

2009 The Celtic Triangle

2011 Land South West of Glen Road Lennoxtown

2013 More Glasgow City Council land

Questions: If the original 2001 Co-operative Bank loan was kosher, above board and properly risk assessed then why has so much more security been demanded in the years since? And especially now, why when all the Champions League money is flowing too, at a time when apparently risk has been reduced?

New Mortgage/Standing Charge

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Discussion

23 thoughts on “Co-operative Bank requests Lawwell to add more security to Celtic loan facility

  1. FTH the work your doing is brilliant and much appreciated by all good Rangers fans, is there any way of unearthing what the co-op value the individual portions of land at? e,g, westhorn? this could be the key to exposing the whole corrupt shennanigans

    Posted by jim fraser | January 3, 2014, 1:41 pm
  2. That link doesn’t work

    Posted by damien | January 3, 2014, 6:31 pm
  3. On 3 Jan 2014 08:28, “footballtaxhavens” wrote:

    > footballtaxhavens posted: “It didn’t take the Co-operative Bank long > to snaffle up the land the Glasgow City Council approved to be sold to > Celtic on 12th December 2013. That’s our’s said the bank on the 24th > December 2013. http://www.glasgow.gov.uk/councillorsandcommittees/viewDoc” >

    Posted by John Ferguson | January 3, 2014, 7:07 pm
  4. Great work ,keep it up .Pity none in the MSM will take this and run with it,probably scared to out this corruption as it would incurr Liewells wrath.

    Posted by Billy Caldwell | January 3, 2014, 8:12 pm
  5. “Questions: If the original 2001 Co-operative Bank loan was kosher, above board and properly risk assessed then why has so much more security been demanded in the years since? And especially now, why when all the Champions League money is flowing too, at a time when apparently risk has been reduced?”

    Maybe all football clubs are seen as greater risk after what Rangers did with their tens of £millions of debt.

    Posted by John Shields | January 6, 2014, 1:17 pm
  6. if the co-op are insisting on more collateral, surely that indicates, westhorn, lennoxtown are not worth the reported £5-0m and £30m suggested!

    Posted by andy p | January 6, 2014, 1:26 pm
    • Or maybe the bank are looking at the worst case scenario and counting the land at fire sale price. Still, it does not explain why they were lending the money at that interest rate in the first place nor does it explain the rise in property prices since the loan was initially taken out. If it walks like a duck…

      Posted by ukfred | January 14, 2014, 10:04 am
  7. Reblogged this on McMurdo Media.

    Posted by billmcmurdo | January 6, 2014, 10:01 pm
  8. Is there anyway you could find out how much other council land has been sold for to others rather than the scum ? That would go a long way to seeing the corruption going on.

    Posted by gary platt | January 6, 2014, 10:27 pm
  9. don’t know if this is of any use to you just found this on the net it’s a FOI about the land the scum bought back in the 90’s https://www.whatdotheyknow.com/request/details_of_the_land_transaction?unfold=1#incoming-379803

    Posted by gary platt | January 6, 2014, 10:44 pm
  10. Seems like GCC have taken away the information. Is that legal? I thought they had to show stuff like this in the interest of the public….

    Posted by hendy247 | January 7, 2014, 12:29 am
  11. How can we get this more into the public domain for all to see?
    I know Liewell will be working his minions in all capacities in the scottish media, but surely this stuff deserves an airing and there must be some up and coming investigative journo who has contacts that can give this info a wider audience, because we cant just keep saying “liewell will deflect this”.

    it is a clear conflict of interest from several different parties and as such should be highlighted further.
    Keep up the good work and hopefully soon your efforts wont be in vain.

    Posted by Andy Paterson | January 7, 2014, 7:36 am
  12. One thing you can be assured of….when this pile of sh!t hits the fan…..there will be loads of people covered in the resulting mess…..and a club being punished to the fullest extent.

    Jelly and ice cream anyone……..anyone??????? Timmy??? Hello…..where are you timmy?????

    🙂

    Posted by BlueStu | January 7, 2014, 9:01 pm
  13. it should be noted that at the same meeting of the council to sell the school to the bheasts for £357k the council sold another school for £1.8m. Obviously only re sellic get good deals from the council.

    Glasgow City Council, City Chambers, Glasgow G2 1DU
    Former Willowbank Primary School, 2A Willowbank Crescent (Ward 11) –
    Disposal approved.
    12
    There was submitted a report by the Executive Director of Development and
    Regeneration Services regarding proposals by City Property (Glasgow) LLP for the
    disposal of the former Willowbank Primary School, 2A Willowbank Crescent (Ward
    11), advising that
    (1) following an unsuccessful marketing campaign, the property had been
    remarketed for sale on 10th October 2013, with a closing date of 31st October
    2013, and 12 offers were received, of which 9 met the basic assessment
    criteria; and
    (2) the offer from London and Cornwall Property Partners Ltd was the highest
    financial bid and their proposals to redevelop the site for student
    accommodation with a high level of amenities within the development,
    including a common room, gym and cinema, were consistent with City Plan 2
    development principles and retained a lised building.
    After consideration, the committee approved the sale of the former Willowbank
    Primary School, 2A Willowbank Crescent to London Cornwall Property Partners Ltd
    for £1,825,000 exclusive of VAT, subjectt to the terms and conditions detailed in the
    report

    Posted by chubbybrown | January 8, 2014, 6:41 pm
  14. Unfortunately in glasgow the fans of one club will always try to put down the opposite club as soon as something goes wrong wether it b finance or bigitory .I am a lifelong rangers fan and since the problems with finance have been gobsmacked at so many people jumped on bandwagon to slaughter rangers but it doesn’t surprise me at all what I.ve been reading about celtic it was quite obvious to me they were deflecting a lot of stuff to ibrox I think its called kicking u when ur down but now we know why.i would finish by saying this many years ago under the Murray chairmanship he wanted to redevelop the area around ibrox and govan but was refused planning permission but years later the whole of east end is redeveloped. Hmm . Just to finish well done to whoever has got this information I will watch with interest.

    Posted by Peter kelsall | January 9, 2014, 11:59 am
  15. Steven Flemming, the Co-op Bank Manager and a strong Celtic Fan, who originally arranged the facility should have a lot to answer on this one!

    Posted by Anderson | January 9, 2014, 9:42 pm
  16. Good job bringing this form of corruption and mismanagement of taxpayers assets within glasgow city council along with a strange bank arrangement regarding low rate loan for a specific customer.

    Posted by Matt | January 22, 2014, 9:39 am
  17. A quote from Neil Lennon regarding the LNS enquiry.
    “I will see what the commission finds and, if they are found to have broken the rules, then they should be stripped of their titles,”

    “It will not change what has gone on in the past but I suppose there will be a sort of moral victory in that respect.”

    “It is not going to change my life now, by any stretch of the imagination, but it would be good to be changed for historical reference,”

    “I can’t get that title or feeling back and it won’t make a huge dent on my life from here on in. It would be a lot better on my CV, though. I wouldn’t want the medals – just the recognition. That would be enough.”

    “At that time, though, it might have cost players contracts, bonuses, managers their jobs and might have relegated teams,”

    “There are so many ripple effects to it. Again, you go back to the integrity of the game. Was it there? If not, then it should be investigated. That is all we ask for. We are in the game for the glory and then the money comes with it.

    “The more successful you are, the more money you get but when you are a kid growing up all you want to do is to play football for a big club and to win things. That never changes.”

    Earlier, Celtic manager Neil Lennon was guarded over whether Rangers enjoyed a competitive advantage over alleged undisclosed payments.

    And from the BBC website http://www.bbc.co.uk/sport/0/football/21633595

    “I believe they were found guilty of paying £47m over 11 years in non-disclosed payments,” Lennon said.

    He declined to share his “own views” on whether they enjoyed a competitive advantage.

    “I will save that for another time,” the Celtic manager added.

    Asked if the Ibrox club should feel vindicated by not having titles stripped, he said: “They probably feel they’ve got their own way”.

    “It wasn’t our fight, it was the SPL, they brought up the tribunal against Rangers, it doesn’t affect us. We have the quarter-final to prepare for and we’re playing Juventus in the last 16 of the Champions League, we’re not renting out a training ground.”

    The Celtic manager added: “I don’t want to take anything away from what my team and club are doing.

    “The way we behave, the way we do our business has been impeccable and that’s the reason why we are in the position we are in now.”

    I wonder if he will be so eager to express his views once the enquiry into his club gets underway.

    Posted by Fin Mac | February 4, 2014, 4:44 am
  18. Fantastic work once again.

    Posted by Economics FC! | March 27, 2014, 3:13 pm
  19. Excellent article! We will be linking to this great content on our website.
    Keep up the great writing.

    Posted by Kandy | May 28, 2014, 1:55 pm
  20. What goes around cones around WATP

    Posted by Cameron | November 6, 2014, 7:10 pm

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