Rangers FC signals administration move

[Markhor]

http://www.bbc.co.uk/news/uk-scotlan...-west-17015966

Rangers Football Club has confirmed it has filed legal papers at the Court of Session to appoint administrators. The club said it would continue with "business as usual" until it decided whether to take that step. Rangers now has 10 days to make a decision. In the meantime, it said there would be "no impact on season ticket holders and shareholders". The move comes while Rangers awaits a tax tribunal decision over a disputed bill, plus penalties, totalling £49m. The club said in a statement, however, that if the tribunal decided in favour of HM Revenue and Customs (HMRC), it "could result in liabilities and penalties substantially more than the £50m reported which the club would be unable to pay". Craig Whyte, who bought the club from former owner Sir David Murray last year, said recently that administration was an option if the club lost the tax case. 'Protect the club' The case relates to the use of employment benefit trusts (EBTs) to pay players and other staff. It is thought that HMRC believe the club misused the scheme and avoided paying significant sums in tax. In a statement released on Monday, Mr Whyte said the moves towards administration had been made to protect the club. He said: "Since I took over the majority shareholding of the club in May last year, it was clear to me the club was facing massive financial challenges both in terms of its ongoing financial structure and performance and the potential consequences of the HMRC first tier tax tribunal. "I have taken the decision that the most practical way to safeguard the long-term future of the club is to go through a formal restructuring process. It may still be possible to avert this but that is not the most likely way forward. "What is of paramount importance is the long-term security, survival and prosperity of this great football club." Mr Whyte said it was "in the best interests of Rangers" that his ongoing restructuring of the club was "completed before the end of this season". He said this had "meant turbulent times" as the club sought to "stand on its own feet, earning more than it spends". "From my early days as chairman I saw that administration was a very real option to enable the club to address these challenges and make a fresh start," he said. 'Great institution' "Frankly, the case for administration in pure financial terms was compelling but I was acutely aware that such a great institution as Rangers could not be viewed exclusively in financial and business terms. "The fact is that Rangers' ongoing financial position and the HMRC first tier tribunal are inextricably linked." The Rangers chairman stated again that the club was running a £10m annual deficit and it was in the best interests of the club to cut costs significantly. He continued: "There is no realistic or practical alternative to our approach because HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision they will appeal the decision. "This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC which will be due whatever the overall result of the tax tribunal. "In blunt terms, if we waited until the outcome of the tax tribunal, the risk of Rangers being faced with an unacceptable financial burden and years of uncertainty is too great." Mr Whyte said the tax case related to "a claim by HMRC for unpaid taxes over a period of several years dating back to 2001" which Rangers would be unable to pay if the tribunal went against the club. He said Rangers' immediate future now lay in the hands of HMRC. The chairman said: "If HMRC were to agree, even at this late stage, a manageable agreement with the club, then a formal insolvency procedure could yet be averted. It goes without saying that would be our preferred outcome. "If not, further investment in the club would be impossible as the threat of winding up by HMRC cannot be removed. "The Rangers FC Group, the majority shareholder in the club, is prepared to provide further funding for the club on the basis the funding is ring-fenced from the legacy HMRC issue." Mr Whyte said Rangers had engaged a specialist restructuring practice, Duff and Phelps, to assist in finding a solution to the present position. He added: "As a result of that advice, it has been decided to seek the protection of a moratorium from HMRC action whilst a Company Voluntary Arrangement (CVA) proposal is made to creditors. "This, if approved by creditors within a month, would minimise any points deduction and allow the club to participate in European football. "In short, if the club proceeds into administration then it will have to emerge from that process, with the agreement of creditors, within a month or so in order to be able to play in Europe next season." 'Financially fitter' Mr Whyte said administration would "regrettably lead to a cost-cutting programme and the potential loss of jobs across the business". He said former directors may "contend that the steps we are announcing today are unnecessary". "All I would say to these people is that if they want to step up to the plate and invest money in Rangers to avoid a restructuring of the business, then I would be most willing to talk to them," he said. "In the past unfortunately, there were people who not only failed to prevent Rangers being engulfed by our current problems but chose not to invest their money to help put it right." Mr Whyte said Rangers could "emerge as a stronger and financially fitter organisation" from this process. He statement concluded: "As chairman of the club, every action I take will be in the interests of Rangers and there are many people working at the club who are dedicated to making Rangers a success. "I would like to thank supporters for their great commitment to Rangers. This great football club can recover from the situation in which it now finds itself and be the force in football that the fans deserve." Mr Whyte is understood to be the club's main secured creditor via a floating charge over its assets. This would allow him to pursue other avenues such as receivership or pre-pack administration to satisfy the debts which the club owes him if a CVA cannot be secured. These would involve transferring Rangers assets out to another company or companies to satisfy outstanding debts to the floating charge holder and leaving the club behind with the debt. In such scenarios, it would be likely that Rangers FC - formed in 1873 - would be formally wound up.

[DeadlyVenom]

The death of Scottish Football. I'm a little bit sad coz it was the team I supported growing up and were even one of the richest clubs in the world 5 or 6 years ago.

[greekscavenger]

Good riddance to be honest.

Always disliked Rangers to be honest. Their fans are downright dispicable at times.

[DeadlyVenom]

Originally Posted by greekscavenger Good riddance to be honest. Always disliked Rangers to be honest. Their fans are downright dispicable at times.

You from Scotland and know anything about the fans?

No.


You mad coz they tore up Manchester once?

Yes.

The fans are no better/worse than most Football fans.

[greekscavenger]

Not being funny like but do you see Man Utd/Barcelona tear up London or them tearing up Rome?

Or has there ever been a case of fans tearing an entire city apart?

Thats enough for me to distinguish.

Of course they're not the worst, millwall fans win that prize.

[Gabbar Singh]

So the SPL has gone from being a 2 team league to a 1 team league.

It's funny that Celtic fans are celebrating so much despite the fact they'll suffer in the long term too. Less TV money, less sponsorship, less gate receipts etc. The Old Firm need each other.

That said, football is just like any other business. If you don't abide by the laws the rest of us have to then good riddance.

[Geordie Ahmed]

Originally Posted by greekscavenger Good riddance to be honest. Always disliked Rangers to be honest. Their fans are downright dispicable at times.

Think it is shocking to celebrate or enjoy the demise of another football club (MK Dons aside)

[greekscavenger]

Sorry but their fans trashed my city.

I find it hard to sympathize. I'm not enjoying it or celebrating it, but I can't say I'm sorry.

[Geordie Ahmed]

Originally Posted by greekscavenger Sorry but their fans trashed my city. I find it hard to sympathize. I'm not enjoying it or celebrating it, but I can't say I'm sorry.

Ah boo hoo

Chances are your own fans probably trashed your city last summer as well

As for 'their' fans trashing 'your' city, it would have undoubtedly been a minority of them, the vast majority will be regular folk who love their football club and this situation won't be easy for them

[Amir]

I think people need to understand the context of greek's post. Its not that they tore up Manchester. BUT they tore it up in the year we won our European double...and thus United lost out on its victory parade.

[Geordie Ahmed]

Originally Posted by Amir I think people need to understand the context of greek's post. Its not that they tore up Manchester. BUT they tore it up in the year we won our European double...and thus United lost out on its victory parade.

What those fans did was obviously not right BUT they were a minority, I don't think it is fair to enjoy the demise of a club (I know it is only administration at this stage) because of the actions of a minority. There are plenty of regular, decent folk who love Rangers and this news will undoubtedly be terrible for them

I simply can't take any pleasure, enjoyment or even react indifferently when hearing about the financial troubles that clubs are in, only someone like MK Dons would be an exception

[greekscavenger]

Yeah, I'm sure we did do this to our own city Geordie.

Minority. 60k Rangers fans flooded down to Manchester!

[Gabbar Singh]

[Amir]

Originally Posted by Geordie Ahmed What those fans did was obviously not right BUT they were a minority, I don't think it is fair to enjoy the demise of a club (I know it is only administration at this stage) because of the actions of a minority. There are plenty of regular, decent folk who love Rangers and this news will undoubtedly be terrible for them I simply can't take any pleasure, enjoyment or even react indifferently when hearing about the financial troubles that clubs are in, only someone like MK Dons would be an exception

I agree with your first paragraph. However, try to see it from greeky's shoes with him being a native of Manchester. I imagine you be pretty peeved if that happened in Newcastle on your big day?

As for MK Dons, not sure why you hate them so much. Yes, I know what they are born out of but that was more so a management decision, than a fan one. Do their fans (however many there are) deserve the same fate?

[DeadlyVenom]

http://www.dailymail.co.uk/sport/foo...bs-probed.html

8 EPL teams could also be in the frame.

[YahWho]

Originally Posted by DeadlyVenom http://www.dailymail.co.uk/sport/foo...bs-probed.html 8 EPL teams could also be in the frame.

It always makes me feel uneasy when someone is too quick to express an enjoyment of someone else's misfortunes.

[YahWho]

Yeah, too many Schadenfreude's out there.

[Geordie Ahmed]

Originally Posted by Amir I agree with your first paragraph. However, try to see it from greeky's shoes with him being a native of Manchester. I imagine you be pretty peeved if that happened in Newcastle on your big day? As for MK Dons, not sure why you hate them so much. Yes, I know what they are born out of but that was more so a management decision, than a fan one. Do their fans (however many there are) deserve the same fate?

No, I can't see it from greeky's shoes BUT reading his posts on other world issues I am not surprised he has a narrow minded attitude

As annoying and horrible as that would be it is important for people to make the distinction between a minority of fans and the vast majority, who are decent folk

MK Dons is a different case all together. This is not America where teams move around without issue, teams/clubs are reflective of their community, their history is steeped within the local community yet MK Dons has none of that. They used the history, name, status etc of another club and shifted it somewhere else, that is not right and I can never support such a thing

[Geordie Ahmed]

Originally Posted by greekscavenger Yeah, I'm sure we did do this to our own city Geordie. Minority. 60k Rangers fans flooded down to Manchester!

Yeah, posting random images is always helpful, also I fail to see what is wrong with images 2 and 3

Also I assume you have a similar attitude towards the English national side when you consider the scum behaviour of English football fans when abroad?

and your last sentence is just stupid, yes there may have 60k of fans in Manchester BUT not everyone got in trouble. Answer me this, how many people arrested?

[Markhor]

Unfortunate situation at Rangers. I don't like some of the blindly sectarian fans in the two Old Firm teams, but there is a particularly minority, Loyalist element in the Rangers fanbase. There have been instances where Rangers fans have waved pro-Israel flags, as Celtic fans associate themselves with the Palestinian cause - as they see Northern Ireland as occupied by the British.

[Saj]

Amazing that such a huge club can find themselves in such a dire situation.

[DeadlyVenom]

Dead and Buried. They will most likely and deservedly have to start from the 3rd Division in the SPL and work their way up.

Now called "The Rangers Football Club", seems like a small change BUT the team that won the most league titles in the Footballing world is no more.

[Geordie Ahmed]

Shame, not nice when a club suffers so badly, feel for the fans

It is only right that they start from scratch. I wonder what kind of attendances they will get

[King_Rizzy]

The Rangers. Ahh well, they had to rename it to something along the same lines as you're not allowed to keep the same name once a club goes into liquidation.

They were never going to have their CVA accepted by HMRC with that huge amount of debt they had, even before they submitted it I knew it was going to be rejected. Liquidation was the only option and the best option for the club going forward considering their circumstances (I work at an Insolvency Practice, so it's my field).