Mr King is saying he believes that the terms of the Laxey loan and the explanation of those terms mean the directors of the club have styled the company as a high risk investment.
He has backed them into a corner and made them promise publicly not to use Ibrox or Murray Park as security for loans.
He got Mr Crichton to explain the rationale for the Laxey loan in terms which make it clear to any reasonable person that the club is a high risk investment.
He has got the Board to admit there is a need for a fresh round of fundraising.
All of which they were previously very unclear about - those are statements a board of a public company can’t go back on.
The board has also tied themselves into producing a finance plan. They may produce the finance plan but I doubt they will be able to produce the finance by themselves. Which leaves Dave King in pole position.
As a result of the meeting with Dave King and the pressure from the fans the Board have moved to a position they did not wish to be in. They have effectively admitted the club is a high-risk company unable to attract finance under normal terms. They have restricted their own room for manoeuvre by ruling out Ibrox or Murray Park being used as security for finance.
The crucial paragraph for me is -
The only significant issue that I discussed with the board that is not contained in the board statement is the Laxey loan facility. Mr Crighton, on behalf of the board, made a forcible argument as to why the board considered and approved the terms of the Laxey loan. The board considered that a combination of legal risk and the current financial position justified the loan terms. I replied that a consequence of the board’s view of the high risk to anyone advancing funds to the club is the board’s fiduciary responsibility to ring fence any season ticket money that is received (even if fans don’t request this) unless sufficient committed financing is in place at that time. The board did not agree with me on this logical consequence but I believe that my observation is correct.