Rangers FC to go into administration

Started by Lecale2, February 13, 2012, 03:43:42 PM

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Lecale2

How the mighty have fallen but not unexpected! How long before something similar happens to one of the current big clubs in England? It happens in the league of Ireland all the time it seems.

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

deiseach

Incredible. How the hell did this come to pass? Seriously, any Scottish soccer watchers (of which there are many here) care to explain what went wrong for Rangers? Please take 'bad karma' as given.

EC Unique

The fact that the SPL is pure and utter sh1t might be a factor?

Denn Forever

I think they are liable for a big unpaid Tax bill.  Were paying player's wages into off-shore accounts. Where 'Arry?
I have more respect for a man
that says what he means and
means what he says...

Archie Mitchell

Quote from: EC Unique on February 13, 2012, 04:00:37 PM
The fact that the SPL is pure and utter sh1t might be a factor?

How has the standard of the football got anything to do with Rangers not paying their tax and being up to their eyes in debt?

naka

it was the immortal words of murray
" ffor every £5 celtic spend we will spend £10"
this is truely a great day when dignity fc go under ;D

Lecale2

Living beyond their means for many years under former owner David Murray. They chased the Champions League dream like Leeds Utd before them and now the chickens have come home to roost.

What happens when an administrator is appointed? They will try to keep the club going by cutting deals with creditors and cutting costs.

If they can't balance the books or find a new owner who can, is there a serious chance they could go bust and drop out of the league. That's what happened Airdrieonians and Gretna in recent times.

bennydorano

Craig Whyte is a convicted crook, there was a Scottish Spotlight special on him a few months back outlining what dodgy deals he was up to (past & present), if I remember correctly bringing a business into Administration or Bankrupting them was an oul favourite of his.  He generally walked away up a few pound.

Sky Sports News are going down the hyperbole route (naturally enough) but unless I'm badly mistaken there's been a lot of English football clubs who've done this and came out the other side without the debt??

Minder

How would it benefit Celtic if they went belly up? They wouldn't be queuing up for tv rights anyway and they won't be in the Premier League.
"When it's too tough for them, it's just right for us"

deiseach

Quote from: Minder on February 13, 2012, 04:47:07 PM
How would it benefit Celtic if they went belly up? They wouldn't be queuing up for tv rights anyway and they won't be in the Premier League.


Lecale2

Statement just issued by Rangers. Sounds bad for them.

Rangers Statement

Mon, Feb 13, 2012


The Rangers Football Club plc has today announced it has filed a notice of intention to the Court of Session in Edinburgh to appoint administrators.

The Club will conduct its business as usual and will not be in administration until it decides whether to formally proceed with an application to appoint administrators.

Until such time, the Club will not face any sanction from the football authorities in terms of points deduction within the Scottish Premier League.

Sanctions such as a 10-point deduction will only apply if the Club proceeds with the appointment of administrators. It is expected to be 10 working days before a decision is made whether to appoint administrators.

Suppliers to Rangers Football Club and the Club's business partners and sponsors are currently being informed of today's announcement and arrangements between the Club, suppliers and creditors will continue as normal.

There will be no impact on season ticket holders and shareholders. Season tickets will continue to be valid for this season and any commitment to a season ticket for next season is secure.

The Club is continuing to have dialogue with HMRC in the hope that a formal insolvency procedure can be averted and has put forward pragmatic proposals.

The Club's owners believe there is no 'realistic or practical' alternative to this course of action in order to secure the long-term future of the Club.

Should administration take effect, the Club is proposing a Company Voluntary Arrangement (CVA). The Club wishes to seek the protection of a moratorium from HMRC action whilst a CVA proposal is made to creditors. The Club has put forward a CVA proposal to HMRC in which creditors would be paid and provision made for the legacy HMRC case, commonly known as the 'big tax' case.

This, if approved by creditors within a month, would minimise any points deduction and enable the club to participate in European football next season.

The Club has engaged Duff and Phelps, a specialist restructuring practice to assist in finding a solution to the present position.

Should the Club proceed into administration, the appointed administrators will in all likelihood implement a cost-cutting programme and staffing levels will be reviewed across all departments of the Club's business.

Rangers chairman Craig Whyte said there is no 'realistic or practical' alternative to this course of action due to a combination of the Club's ongoing financial situation and the impending result of the HMRC first tier tax tribunal. The tribunal relates to a claim by HMRC for unpaid taxes over a period of several years dating back to 2001, which, if decided in favour of HMRC, could result in liabilities and penalties substantially more than the £50 million reported which the Club would be unable to pay.

Further investment in the Club from any source 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: "It is extremely disappointing the Club's finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the Club both on and off the field. The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago. If we do not take action now the consequences and the risks to the Club are too great.

"In addition to the HMRC issues, it has been abundantly clear to me the Club faces serious structural and financial issues which will continue unless they are addressed.

"There is no realistic or practical alternative to our approach as HMRC has made it plain to the Club that should we be successful in the forthcoming tax tribunal decision, they will 'appeal, appeal and appeal again' the decision. This would leave the Club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC. Even if the Club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.

"Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the Club.

"I can, however, reassure Rangers supporters that the Club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect.

"At this point I would ask all Rangers supporters to continue to show the tremendous support they have shown to the Club, Ally McCoist, his management team and the players."

Rois

Quote from: bennydorano on February 13, 2012, 04:39:41 PM

Sky Sports News are going down the hyperbole route (naturally enough) but unless I'm badly mistaken there's been a lot of English football clubs who've done this and came out the other side without the debt??

Leeds United being one. 

Tonto


Main Street

Quote from: bennydorano on February 13, 2012, 04:39:41 PM
Craig Whyte is a convicted crook, there was a Scottish Spotlight special on him a few months back outlining what dodgy deals he was up to (past & present), if I remember correctly bringing a business into Administration or Bankrupting them was an oul favourite of his.  He generally walked away up a few pound.

Sky Sports News are going down the hyperbole route (naturally enough) but unless I'm badly mistaken there's been a lot of English football clubs who've done this and came out the other side without the debt??
The biggest problem is not the current bank debt as such, it's the fraud case, which most if not all informed opinion think will go against Rangers.
It's a double whammy.
;D


LondonCamanachd

Quote from: deiseach on February 13, 2012, 03:56:58 PM
Incredible. How the hell did this come to pass? Seriously, any Scottish soccer watchers (of which there are many here) care to explain what went wrong for Rangers? Please take 'bad karma' as given.

More money out than in.

Gambled on big European payouts that never occurred.  F*ck 'em.

The SFA and SPL will still make the period as easy as possible for them.  Don't expect to see a Dundee or Gretna solution.  Scottish football has one law for rich Glasgow clubs, and another for the rest.