Rangers Football Club enters administration

 

Rangers fans give their reaction to the news the club is in administration

Rangers Football Club has entered administration - meaning it has been docked 10 points, effectively ending its Scottish Premier League challenge.

The club appointed London firm Duff and Phelps as administrators at 14:50.

The move followed an unsuccessful legal bid by HM Revenue and Customs (HMRC) at the Court of Session in Edinburgh to appoint its own administrator.

HMRC lodged its petition over alleged non-payment of about £9m in PAYE and VAT following Craig Whyte's takeover.

Mt Whyte confirmed on Monday that the club had filed legal papers to appoint administrators. He insisted Rangers would "come out stronger" and "always be here".

Joint administrators

It was initially thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action on Tuesday changed the dynamic of the situation.

Start Quote

Administration news conference

All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution”

End Quote Paul Clark Joint administrator

Paul Clark and David Whitehouse from Duff and Phelps were later appointed as joint administrators and take over the day-to-day running of Rangers while addressing its massive debt problems.

Mr Clark said: "HMRC have been working closely with the club in recent months to achieve a solution to the club's difficulties. However, this has not been possible due to ongoing losses and increased tax liabilities that cannot be sustained.

"We are working together with management and its major creditors, including HMRC, to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned.

"We would like to take the opportunity of thanking the fans for all their past and present support and hope we can rely on them in the future.

"Rangers has a long and proud sporting tradition - one we all wish to see continue. All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution."

Start Quote

Rangers will always be here as I've said before”

End Quote Craig Whyte Rangers owner

Following Tuesday morning's legal case, a spokesman for HMRC said: "We can't discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios, must be paid over to HMRC.

"Any business that fails to meet that basic legal requirement puts the survival of the business at risk."

In a statement, Mr Whyte said the HMRC's move meant the club had to "accelerate" its plans.

He added: "The administrators are in today and looking at everything and I will work with them to help them all that I can and we'll have a plan to get out of administration by CVA [Creditors Voluntary Agreement] process as quickly as we possibly can.

"Rangers will always be here as I've said before. We will come out stronger and come out a better business and most importantly in a position to put as good a team as we can on the pitch and to win trophies which is what we all want as Rangers fans."

Sir David Murray Sir David Murray said he was "hugely disappointed" at Rangers' plight

Former Rangers owner Sir David Murray said he was "hugely disappointed" at the club's decision to appoint administrators and expressed surprise at the timing of the decision.

Sport Minister Shona Robison said Rangers' current plight was "a concerning situation for everyone involved in Scottish football".

She said: "Football is our national game and it is now for the administrators to take forward the process of assessing the business and securing an outcome in the best interests of the club, its staff, supporters and the game of football as a whole in Scotland."

Financial storm

Meanwhile, Strathclyde Police said it had now resolved issues over payment for policing which may have affected Rangers home game against Kilmarnock on Saturday.

A force statement said: "We have had a positive meeting with the administrators and received assurances about payment for the provision of police services at this weekend's match.

"We are working with the club and planning for the game as normal."

The financial storm engulfing Rangers has several fronts.

Craig Whyte Craig Whyte is believed to be Rangers' secured creditor

Mr Whyte has acknowledged that the club has a £10m deficit in annual running costs.

It was reported last week that the chairman had also borrowed up to £24m against four years of future season ticket revenue from Ticketus.

Most serious of all, Rangers awaits a tax tribunal decision over a disputed bill, plus penalties, totalling £49m.

Mr Whyte was reported on Monday as saying this potential liability to HMRC could reach up to £75m if the club lost the tribunal.

HMRC believes the Ibrox club owes cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period.

It alleges the Ibrox club did not administer the scheme properly and underpaid tax.

Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks.

After the club signalled its intention to go into administration on Monday, Mr Whyte said the best outcome would be to reach a creditors agreement which would allow the club to continue trading.

Secured creditor

Mr Whyte is believed to be a secured creditor of Rangers and would have to be paid first ahead of others such as HMRC.

However, if HMRC holds 25% or more of the club's debt it can block a creditors agreement which is necessary for Rangers to exit administration.

If a creditors agreement cannot be reached - and if the club cannot be sold - it is possible that Rangers could be wound up.

The ramifications for the Scottish game, if this happened, would be far-reaching.

It is likely that existing TV deals, which provide significant revenue streams for Scottish clubs, would be scaled back or in extreme cases cancelled.

The absence of Rangers fans at other grounds in Scotland would also reduce revenue to competitor clubs.

 

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  • Comment number 254.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    -4

    Comment number 253.

    235. shalva_shine
    46 MINUTES AGO
    "The Rangers v Celtic bigotry is disgusting and shameful. I'd like to see both clubs disappear along with their primitive fans"

    I recently visited Barcelona and met a barman who told me Celtic fans were the best he'd ever met. He's now a lifelong fan with a Celtic scarf hanging from his wall.
    Rangers fans had previously pissed on his carpet.
    Nuff Said?

  • rate this
    0

    Comment number 252.

    So who took their eye off the ball then.

  • rate this
    0

    Comment number 251.

    Until I had read some of the posts on this HYS debate, I had no idea that Celtic and Rangers in Scotland suffered from bigots at their matches.

    Some of England's football has been the focus of racism in the media recently.

    I'm not interested in watching any sport on TV, but love taking my daughter to watch her favourite footie team that she comes home to watch. It's a great day out together.

  • rate this
    -3

    Comment number 250.

    I am saddened at the amount of small-minded and vindictive comments on here, not to mention the ones from those who simply don't have a clue what it means to follow a football team....

    Rangers is my team and always has been, and I would be gutted if they went bust. They are NOT just a business, they are much more than that, as are Celtic to their fans. And I am NOT a bigot, and never have been.

  • rate this
    +1

    Comment number 249.

    This has been a long time coming. Good riddance to them if the club goes to the wall and it would be for the long term benefit of Scottish football, eventually, if Celtic followed suit. Scottish football has been blighted by the bigotry which these clubs breed and if both "institutions" were shut down then Glasgow and Scotland would be a better place for it.

  • Comment number 248.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +3

    Comment number 247.

    127. Disco Tony

    You aren't the only one who's wondering why the HMRC seem to have been asleep on the job...again.
    Why has this tax bill been alowed to build up & get out of hand; I couldn't get away with it myself.
    No wonder the UK is in a mess financially.
    No mre excuses - everybody should pay their taxes.

  • rate this
    +2

    Comment number 246.

    Lol at all the football holligans who threaten to comit crime and suicide just because their club has to pay for its stupid mistakes in the past few years. Grow up.

  • rate this
    -2

    Comment number 245.

    242. Colin Smith
    10 MINUTES AGO
    "Rangers wound up? One can only hope.

    Now if Celtic went bankrupt too the world (well, Glasgow anyway) would be a better place."

    I recently visited Barcelona. Talked to a barman there. He told me Celtic fans were the best he had ever met, and is now a Celtic (and Barcelona) fan for life.. Rangers fans pissed on his carpet. Nuff said?

  • rate this
    +3

    Comment number 244.

    Imagine what £72 million means to Scotland as a whole. That could pay for so many things. And for those who are proclaiming the SPL are aboutc20 years too late. The monopoly held by the old firm, killed this leagues of any worth. What's more, the fans who paid the premium channels have fuelled this.

  • rate this
    -9

    Comment number 243.

    239. GM
    7 MINUTES AGO
    "Let's hope this is the end and we can say "Good Riddance" to 19th century bigotry and sectarianism - let's hope Celtic follow them"

    What an ignorant, uneducated piece of bigoted rubbish. Celtic have no history of discrimination. They are a non-sectarian organisation with no religious agenda.
    Jock Stein, Ken Dalgish, Henrik larsson? All time greats.
    Religion? Don't care

  • rate this
    +5

    Comment number 242.

    Rangers wound up? One can only hope.

    Now if Celtic went bankrupt too the world (well, Glasgow anyway) would be a better place.

  • rate this
    +5

    Comment number 241.

    There is an astonishingly quaint view around that all Celtic or Rangers have to do is write a letter and get a shoe-in to the EPL. They are not good enough, the SFA would have something to say about their registration, the English clubs in the EPL and the top clubs in the Championship wouldn't stand for it, the best they could hope for would be level 4 and work up. And Salmond wouldn't like it.

  • rate this
    +3

    Comment number 240.

    Most big clubs run on false economies and debt.
    Its hardly a surprise when on occasion it catches up with them.

    They should all go away and join a Europe super league so the proper clubs can win domestic leagues.....

    Take your plastic fans and foreign legions.... bye.

  • rate this
    +3

    Comment number 239.

    Let's hope this is the end and we can say "Good Riddance" to 19th century bigotry and sectarianism - and let's hope Celtic follow them. Football doesn't need racism in the 21st century, and it doesn't need sectarianism hiding behind the "tradition" of Galsgow's twin shames

  • rate this
    +2

    Comment number 238.

    73. Daveo

    "I am not a fan of Rangers, but I fail to see why the taxman pursued RFC but did not pursue Vodafone".

    The Taxman is too busy chasing Joe Six Pack for 100 Quid of underpayment to worry about the likes of Vodafone. Wouldn't be surprised if Rangers end up cutting a deal to get to get out of paying a lump, but don't forget that if they don't pay, somebody else - IE you & I - will.

  • rate this
    +1

    Comment number 237.

    #225. I have never ever understood what makes Scottish fans or anybody else think that the English Premier League would risk the wrath of UEFA,FIFA and 90% of its own membership if not more simply to include the Old Firm in its structure? What do they get out of it? EPL stadia are full,the tv deal is already among the biggest in the world.The O.F are neither wanted nor needed in England.

  • rate this
    +1

    Comment number 236.

    I am a father of 3 i am sick of of the fans that come from the north of Ireland, singing sectarian songs. Also the men who like to fight as opposed to watching the game, i see on article headed "Rangers enters administration" Notice the sign at bottom of sheet http://news.bbcimg.co.uk/media/images/58503000/jpg/_58503165_rangerssix464.jpg
    RFC get rid of bigots & thugs if we can get out this mess.

  • rate this
    +5

    Comment number 235.

    The Rangers v Celtic bigotry is disgusting and shameful. I'd like to see both clubs disappear along with their primitive fans.

 

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