Rangers go into administration

[ictchris]

They owed £400 to Shred-It Glasgow. Lulz.

[Tug]

also notice a £40 owing to eagle consulting in inverness. no other links to inverness i can see anywhere but some interesting ones like 500+ quid to the newsagents in ibrox

[starchief]

And an SPL title to a Bottling Company - aka Neil Lennon!

[jaggy]

A club whose succes has been bought by fraudulent means. When it affects other businesses / clubs as the creditor list shows, it shows the disregard they have for thier fans and the wider community. Whilst I think they deserve liquidation it would mean those owed money ( including ICT) would lose out.

[Yngwie]

Don't worry about ICT, we got our £40k money from them.

[CaleyD]

The list of people owed money is as at the date Rangers went in to Administration. Payment to ICT and other clubs is not listed individually, as there is no reason for them to do so, but you will see a figure in there for payment of ticket money to other clubs.

There's also a paragraph that explains why they paid these monies (and not others) and it was due to the fact that they would have to end up paying it in full under the "footballing debt" rules and witholding money and having SFA/SPL deduct it from monies due there could/would result in additional penalties and them having to pay more in the long run.

[Yngwie]

I printed off a copy of the report and have enjoyed reading about just how bad Rangers' financial plight is. But I'll have to stop, because the pages are all stuck together now.

[+DoofersDad]

I printed off a copy of the report and have enjoyed reading about just how bad Rangers' financial plight is. But I'll have to stop, because the pages are all stuck together now.

Whatever turns you on

[Gabby]

I printed off a copy of the report and have enjoyed reading about just how bad Rangers' financial plight is. But I'll have to stop, because the pages are all stuck together now.

And here's me reading this post whilst eating my dinner.

[CaleyD]

Gabby, are you still of the opinion that Scottish Football needs teams like Rangers?

[Gabby]

I have never been of the opinion that Scottish football needs Rangers. My opinion has been that the overall commercial value of Scottish Football is vastly higher with Rangers. This hasn't changed.

The commercial value of Scottish Football isn't just halved if Rangers go under, the commercial value of Scottish Football would be about 10% - 20% of its current value. Celtic also have some important decisions to make because their income (from TV and ticket sales) will be drastically reduced without Rangers.

I believe that if Rangers are liquidated and Newco FC is born, they should not be allowed automatic entry into the SPL. However, I don't believe for a second this will happen because commercial realities dictate that Newco FC have to be in the SPL. I really, really hope this doesn't happen, but it will.

Since this is a certainty, then the other 10 clubs should wedge Newco FC to agree to new income splitting and voting arrangements. This is the best outcome for everyone.

It's a battle of ethics vs Money - Money will win every time and twice on Sundays.

[Caley]

A couple of things stood out for me reading through the report:

• Arsenal shares - Rangers holding of these was sold for £223,214 in January via a broker that Craig Whyte just happened to be company secretary of. The proceeds have of course vanished and the brokers themselves are now in administration.
  

• Duff & Phelps have charged £1.2 million in fees in the first 6 weeks of administration. I know it's a complicated case but £200k a week? Seems very high to me.
  

Also, if the company is liquidated how is it that the assets like Ibrox Stadium and Murray Park can just simply be transferred to a new company? Does the term "liquidation" not mean converting illiquid assets (buildings, fittings etc.) into liquid assets (cash) so that creditors can be paid? Confused on this point.

[Gabby]

Also, if the company is liquidated how is it that the assets like Ibrox Stadium and Murray Park can just simply be transferred to a new company? Does the term "liquidation" not mean converting illiquid assets (buildings, fittings etc.) into liquid assets (cash) so that creditors can be paid? Confused on this point.

The bidders for Rangers will liquidate to sell the assets to a newco operated by themselves. The proceeds of the sale will be divided amongst the creditors. This means they can play out of Ibrox etc and be debt free.

What this means is Rangers FC will no longer exist, and a new club will rise out of the ashes. This is why the name Govan FC keeps getting used.

So the answer to your question is Yes.

Edited April 6, 2012 by Gabby

[Gabby]

Had to laugh at this. It's a google map of Rangers Creditors

https://www.google.com/fusiontables/DataSource?snapid=S445544OYPe

[Caley]

The bidders for Rangers will liquidate to sell the assets to a newco operated by themselves. The proceeds of the sale will be divided amongst the creditors. This means they can play out of Ibrox etc and be debt free.

What this means is Rangers FC will no longer exist, and a new club will rise out of the ashes. This is why the name Govan FC keeps getting used.

But how much will they sell the assets to newco for? £1 seems to be a popular figure these days. It certainly ain't going to be £134 million or anywhere close. The liabilities stay with the old company so the creditors get eff all.

So, this is my understanding. There are 2 choices:

1. Get 75% (by value) of creditors to agree to a Company Voluntary Arrangement or Scheme of Arrangement. e.g. for every pound owed you will get 30p and Rangers plc carry on trading
   
2. Liquidate the old company and form a new one. The old company sells the assets like Ibrox Stadium and Murray Park to the new company for a nominal fee like £1. The debts stay with the old company so the creditors get nothing.
   

Now I see why people are screaming for sanctions against a newco if they were to enter the SPL.

Catch on quick don't I?

[CaleyD]

Sorry Gabby, but I can see absolutely no basis whatsoever for defending a position of need for a team that has spent (directly or otherwise) a conservative £350 Million pounds beyond their means in the past 10 to 12 years.

[Sorted]

Craig Whyte still holds all the cards. He will decide who he disposes of his assets to. If a CVA is accepted he wins. If liquidation happens he hits the jackpot. Very, very shrewd man.

Anyone's still believe that David Murray was duped by Whyte?

[The Mantis]

Had to laugh at this. It's a google map of Rangers Creditors

https://www.google.c...pid=S445544OYPe

ICT's £39805 is mentioned on there, except seems to be in Dunfermline.

Honest, I know I'm a bit sad, but I just clicked it at random

Edited April 6, 2012 by TheMantis
Apparently all Dunfermline addresses have a Kirkcaldy postcode

[CaleyD]

Craig Whyte still holds all the cards. He will decide who he disposes of his assets to. If a CVA is accepted he wins. If liquidation happens he hits the jackpot. Very, very shrewd man.

Anyone's still believe that David Murray was duped by Whyte?

Yeah, he...and to a large extent Ticketus...have been very quiet and playing their cards very close to their chest.

What is also interesting from the report is that it makes no mention of this "HMRC Deal" that they were on about where they are supposed to have given them some kind of promise to play nicely.

Lots of people, including Administrators, seem to be assuming that the situation with Whyte is a done deal and he'll just hand over his shares....I suspect he'll only hand them over in return for the £30 Million he claims he is due.

I've heard people talk of him being forced to sell, but I can't see any immediate or direct route to such action. Some have cited the Liverpool situation as an example, but in that case the owners of the shares had "toxic debt" with the bank and it was the bank who applied the pressure and ultimately forced the sale. Things like drag-along clauses and such do not come in to play as Whyte is the majority shareholder, so it could take months (with no guarantee) for legal argument to be prepared, presented and judged.

Even if they go the liquidation route, then if Whytes claims that he is a secured creditor are true, then he would be paid..in full..ahead of anyone else. Again, the legal argument could tie it all up for months...if not longer.

In short, Whyte has them by the nads and one way or another he is going to get his money.

[Gabby]

Sorry Gabby, but I can see absolutely no basis whatsoever for defending a position of need for a team that has spent (directly or otherwise) a conservative £350 Million pounds beyond their means in the past 10 to 12 years.

I'm not defending their position. My personal view is the Rangers should be punted and Newco FC start in Div 3. I am willing to bet that the SPL Executive to trawling through their Rules and Regs looking for a loop hole for Newco FC.

As I keep saying, I really, really hope this doesn't happen. However every decision has consequences, and the consequences for SPL without Rangers (or without Celtic if the circumstances were different) means a lot less income for all clubs.

[Gabby]

The bidders for Rangers will liquidate to sell the assets to a newco operated by themselves. The proceeds of the sale will be divided amongst the creditors. This means they can play out of Ibrox etc and be debt free.

What this means is Rangers FC will no longer exist, and a new club will rise out of the ashes. This is why the name Govan FC keeps getting used.

But how much will they sell the assets to newco for? £1 seems to be a popular figure these days. It certainly ain't going to be £134 million or anywhere close. The liabilities stay with the old company so the creditors get eff all.

So, this is my understanding. There are 2 choices:

1. Get 75% (by value) of creditors to agree to a Company Voluntary Arrangement or Scheme of Arrangement. e.g. for every pound owed you will get 30p and Rangers plc carry on trading
   
2. Liquidate the old company and form a new one. The old company sells the assets like Ibrox Stadium and Murray Park to the new company for a nominal fee like £1. The debts stay with the old company so the creditors get nothing.
   

Now I see why people are screaming for sanctions against a newco if they were to enter the SPL.

Catch on quick don't I?

The sale of Rangers to Whyte wasn't 1 pound. The actual sale amount was all the bank debt plus 1 pound. The confusion comes from the fact that he only used 1 pound of his own cash.

Any new bidder will not be able to buy Rangers for 1 pound. For example the bidders would have had property consultants analyse the value of Ibrox, the Murray Centre so they can make an informed bid.

It is also worthwhile noting that there is no relationship between Rangers and Newco. This is because Rangers would be liquidated before Newco would exist. In saying that there would be no legal issue (that I know of) that would stop Newco calling the club Govan Rangers

[Tichy_Blacks_Back]

A Boost for the coffers of the clubs in Div 3, 2 and 1 as they climb the rungs - ain't going to happen though....unfortunately

On another note the finances at the other one would really come under the spotlight if their cash cow disappeared from the equation....what is that industry buzzword of the 2000's - oh yes 'sustainability'.

[Gabby]

Craig Whyte still holds all the cards. He will decide who he disposes of his assets to. If a CVA is accepted he wins. If liquidation happens he hits the jackpot. Very, very shrewd man.

Anyone's still believe that David Murray was duped by Whyte?

Yeah, he...and to a large extent Ticketus...have been very quiet and playing their cards very close to their chest.

What is also interesting from the report is that it makes no mention of this "HMRC Deal" that they were on about where they are supposed to have given them some kind of promise to play nicely.

Lots of people, including Administrators, seem to be assuming that the situation with Whyte is a done deal and he'll just hand over his shares....I suspect he'll only hand them over in return for the £30 Million he claims he is due.

I've heard people talk of him being forced to sell, but I can't see any immediate or direct route to such action. Some have cited the Liverpool situation as an example, but in that case the owners of the shares had "toxic debt" with the bank and it was the bank who applied the pressure and ultimately forced the sale. Things like drag-along clauses and such do not come in to play as Whyte is the majority shareholder, so it could take months (with no guarantee) for legal argument to be prepared, presented and judged.

Even if they go the liquidation route, then if Whytes claims that he is a secured creditor are true, then he would be paid..in full..ahead of anyone else. Again, the legal argument could tie it all up for months...if not longer.

In short, Whyte has them by the nads and one way or another he is going to get his money.

There was never a deal with HMRC. Rangers have allegedly made 2 offers to HMRC and they were both were rejected. There is a really good blog about this at rangerstaxcase.com. Def worth a look.

[Caley]

The bidders for Rangers will liquidate to sell the assets to a newco operated by themselves. The proceeds of the sale will be divided amongst the creditors. This means they can play out of Ibrox etc and be debt free.

What this means is Rangers FC will no longer exist, and a new club will rise out of the ashes. This is why the name Govan FC keeps getting used.

But how much will they sell the assets to newco for? £1 seems to be a popular figure these days. It certainly ain't going to be £134 million or anywhere close. The liabilities stay with the old company so the creditors get eff all.

So, this is my understanding. There are 2 choices:

1. Get 75% (by value) of creditors to agree to a Company Voluntary Arrangement or Scheme of Arrangement. e.g. for every pound owed you will get 30p and Rangers plc carry on trading
   
2. Liquidate the old company and form a new one. The old company sells the assets like Ibrox Stadium and Murray Park to the new company for a nominal fee like £1. The debts stay with the old company so the creditors get nothing.
   

Now I see why people are screaming for sanctions against a newco if they were to enter the SPL.

Catch on quick don't I?

The sale of Rangers to Whyte wasn't 1 pound. The actual sale amount was all the bank debt plus 1 pound. The confusion comes from the fact that he only used 1 pound of his own cash.

Any new bidder will not be able to buy Rangers for 1 pound. For example the bidders would have had property consultants analyse the value of Ibrox, the Murray Centre so they can make an informed bid.

It is also worthwhile noting that there is no relationship between Rangers and Newco. This is because Rangers would be liquidated before Newco would exist. In saying that there would be no legal issue (that I know of) that would stop Newco calling the club Govan Rangers

Maybe you didn't notice I used the term "nominal fee" in relation to £1?

Quite correct that Rangers plc and NewCo plc would be separate legal entities. Surely they can both exist in the same time frame though...no need for one to die before the other is born.

Edited April 6, 2012 by Caley

[CaleyD]

A new company (Rangers Football Club of Glasgow Ltd) was set up on 20th February...I've not delved any deeper than that, but it would appear this would be one of the proposed NewCo's.

What's also interesting is that there's a document submitted to Companies House for the existing company on 31st May shows the removal of the banks charge on properties AND that the property was removed from the ownership of the company. Again, I've not delved any deeper on that (I spend enough at Companies House keeping up with our own club) but it would indicate that thee's evidence to substantiate Whytes claims to a secured charge over it...and would perhaps explain how he was able to secure Ticketus money against assets other than season tickets (which is yet to be cleared up).

I am aware of the rangerstaxcase blog...but try to avoid reading to much of these sites. They are however good for obtaining documents with which to form my own thoughts and opinions.

I don't like this assumption that if the SPL were to kick Rangers NewCo out that they would/should somehow be able to come straight back in at Div 3. It would actually serve as little...if any punishment...to allow that. Liquidation would mean a 3 year freeze out from Europe, so having to crawl back up through the leagues isn't going to effect them much.

It might provide a bit of a financial boost for smaller clubs by way of increased gates for a game or two, but is that a price worth paying for those who have ambitions of progressing? Would it be fair to throw uncertainty on clubs who will shortly be trying to prepare for next season by not knowing what league they are preparing for (talking about those who would be shunted up if Rangers were relegated).

How are Rangers going to finance their time in these lower divisions? The administrators can't even balance the books on an SPL income and whilst wages would be reduced (short term) they've still got an expensive stadium and training ground to operate.

Rangers books cannot be balanced (much like many clubs) without constant new investment...and in their case the investment needed is far higher than what it is for any other club with the possible exception of Celtic. They're not going to pull the home crowds in the lower leagues...regardless of how "united" the fans might say they are.

Rangers FC, in whatever form and however they manage to continue is not viable....certainly not as a force to challenge Celtic in any way, shape or form. Sponsors know that....which is the real reason they are holding of on doing deals. TV knows it....which is why they've not signed contracts for the new deal.

They have nothing to bring to the table. Income for the league will be hit whether they are allowed to stay in the SPL or not, the only difference with allowing them to stay is that they'll continue the duopoly with Celtic that allows them to take a lions share of the income....a reduced income.

There's not possible scenario whereby Rangers will add any more value to the SPL than any other team that would be promoted to replace them. Better to get rid and allow a more democratic setup that better serves the interests of everyone.