Rangers go into administration

[CaleyD]

The problem for creditors though is that there isn't really any value to the company's assets. It's a loss making business and there isn't a large queue of people out there willing to pay large amounts of money for it. In fact the £20m is exactly the point - the new owners are saying we'll commit this to make the business viable. Pretty much every football club is the same, it's a loss making business that requires a sugar daddy to put cash into to keep going. Creditors can object but ultimately the liquidation value is zero. And I think that includes the big tax case, after a company comes out of administration, a creditor can't go back for another bite on pre-existing liabilities, whether their quantum was known exactly or not.

Of course there's value in the company assets.

The land that TCS sits on is worth more than what is being offered up for the Rangers CVA, and I would imagine Ibrox and Murray Park are worth substantially more than that, especially when you consider the value there is, as I understand it, on the freehold and TCS land value is based on leasehold.

Why else would businessmen with no previous attachment to the club be crawling out of the woodwork to invest money in the place? As you correctly point out, the football business is not self sustaining....so there's no money to be made there.

If these are just rich Rangers fans looking to throw money at the club, then why wait until the club is in the state it is? Why have they not been investing over the years to prevent the problems arising in the first place?

[Alex MacLeod]

There is a question mark over the ownership of Murray Park. Some suggestion that it is still owned by Murray Group. I'm sure I also read recently that the Murray Park grounds are on leasehold and that there is a clause in the lease to the effect that it can only ever be used for sporting facilities.

[CaleyD]

I think a lot of that was cleared up by the Administrators report Alex....all previous claims/deals etc have/had expired.

No doubting that there's still a lot of question marks over a lot of things though....not least the floating charge that nobody seems to have made much comment on lately.

The fact that a floating charge exists/existed for in excess of £18 Million is further evidence that Assets are worth way in excess of what is being offered.

[+DoofersDad]

The latest from the SPL's disgrace of a Chief Executive is in a BBC report here http://www.bbc.co.uk...otball/18148989. The story suggests Rangers could start next season as a new company in the Scottish Premier League without incurring any sanctions - such as a points deduction or fine. It goes on to say that fans of other clubs have been demanding tough sanctions but that SPL chief executive Neil Doncaster said: "Newcos have been allowed within UK football for many years."

The man is a complete discgrace. After the way Rangers have cheated their way to success in recent years the man seems perfectly happy for there to be a newco admitted straight back into the SPL, without any sanctions, to start raking in the profit whilst all the creditors (including the taxpayer) who have been cheated out of millions get nothing.

This simply rewards immoral financial practices which if they are not actually illegal, certainly should be. Doncaster shames Scottish football and should resign with immediate effect.

The article refers to the meeting next week when a vote will take place to decide what should happen to clubs who come out of administration in this way as "a new company". I trust that those voting on behalf of our club are clear about how the fans - the lifeblood of this club expect them to vote.

[Ten4]

Oh why are we waiting.. oh why aye are we waiting.. all we are say.....eeng is give us a.....god when is this gonna END?

[Alex MacLeod]

If Mr Doncaster wants to ignore the views of some 60,000 football fans in Scotland who have petitioned that they will walk away from football if such a thing does happen then on his head be it. Whats better? Save Rangers by changing the rules and bowing down to the contempt they hold for their creditors or lose that many fans of the game.

[PullMyFinger]

I trust that those voting on behalf of our club are clear about how the fans - the lifeblood of this club expect them to vote.

I doubt it. I'll not be back to watch my team play in a corrupt league though.

[bauhaus]

League has been corrupt for years, just because this is out in the open, its big news. Think about it, refs baffling decisions, Dundee Utd v Roma euopean cup semi, Rangers v Marseilles in the first champions league, etc etc. Celtic and Rangers favoritism over the years, sfa keeping highland clubs out of the league for years, etc etc. Nothing new, nothing changes!

[KingBeastie]

Funny how the gers fans say they will boycott stadiums of teams who vote against them. I think all clubs will loose a lot more fans if there is a newco allowed in the league. People WILL stay away. I have had no desire to go to games for a while now due to many different reasons but should those in charge decide to just allow a newco into the league with little or no sanctions then I have a very strong feeling my back will be turned on the senior game in Scotland for a very long time. And I doubt I will be the only one.

[Govan Jaggie]

I for one will be looking for Highland league fixtures and rugby fixtures if this happens. Yes I know I have a club to support but where is the point? League is a farce and if we were in this position we would already be dead! If they are going to wangle their way back in at least make them pay for it. Neil Doncaster= Scotland's next disgrace!

[MarkD]

The fact that a floating charge exists/existed for in excess of £18 Million is further evidence that Assets are worth way in excess of what is being offered.

A floating charge of £18m simply means there are liabilities of that amount, and also that the first £18m of assets (after fixed charges and, I think, any preferential creditors) will be taken by the holder of the charge. It may be that there are that amount of assets and more, but personally I doubt it.

[bdu98196]

http://www.bbc.co.uk...w-west-18148818

EBT beneficiaries. Shocking amounts to many. Cant beleive that Bob Malcolm & Marvin Andrews are listed and the amount they recieved.

Cheats - plain & simple!!!

[old caley girl]

Well we've now got the pornstar and prince Albert! Also George Adams named on the EBT list on the beeb. What next? Seriously no one could ever have made this up!

[bdu98196]

Billy Dodds has supposedly resigned from his media work now.

[CaleyD]

Unbelievable.....

[Yngwie]

Got to praise the BBC for yet more excellent investigative journalism on this case, doing the work that other media organisations didn't have the balls to do.

[Yngwie]

Why on earth would the Rangers EBT make a payment to Souness 10 years after he left Ibrox, but just 5 weeks after he bought Tugay from them in his capacity as Blackburn manager?

[CaleyD]

I think the "Balance of Probability" test for the Big Tax Case just landed heavily on the side of HMRC.

[Yngwie]

There's an easy solution to Rangers financial woes. All the recipients of EBT payments should just pay back the loans they got! Firstly, Rangers will get a huge inflow of cash, and secondly, the Big Tax Case will be dropped or found in Rangers favour.

It shouldn't be a problem for the recipients to repay the EBT, seeing as the sums paid were just loans, right?

[old caley girl]

There's an easy solution to Rangers financial woes. All the recipients of EBT payments should just pay back the loans they got! Firstly, Rangers will get a huge inflow of cash, and secondly, the Big Tax Case will be dropped or found in Rangers favour.

It shouldn't be a problem for the recipients to repay the EBT, seeing as the sums paid were just loans, right?

Wouldn't solve the dual contract issue re the spl but interesting idea Yngwie lol

[+DoofersDad]

Having just had his contract terminated by the Villa, Alex McLeish should be comfortably able to pay back his £1.7m "loan".

[CaleyD]

Dual contract thing, if the BBC claims that the side letters exist, could spell the end for Rangers....regardless of all the financial stuff.

Rangers were effectively playing non-eligible/improperly registered players for the best part of a decade (or more). If the SFA are prepared to throw a team out of a cup for playing such a player, then it follows that a team should be thrown out of football for doing the same on such a grand scale.

Also, let's not forget that the SFA adjudged Rangers to have committed an offence which was one step away from match fixing for events over the past year and issued a punishment which was one step short of throwing them out of Scottish Football. It will now be extremely difficult for them to back down from that position and, IMO, they have no option but to follow up with a expulsion.

There is a possible catch though....and that's the liquidation/NewCo route and Rangers (attempting) to use that as a means to escape punishment. If the SFA move to expel Rangers before Rangers are liquidated then there's no membership to transfer to the NewCo and an application for membership would have to be made afresh and there's little argument that the New Club would need to start in Div 3. If the SFA delay, then the NewCo (with transferred registration) will argue that the New Club cannot be punished for the indiscretions of the old club.

The SFA have already said they aren't going to do an independent investigation on the dual contracts and are leaving that up to the SPL....so they've already bought themselves a good chunk of delay. I have a feeling the SPL will delay any decision on new rules etc at next weeks meeting because they have had insufficient time to look over the information not yet supplied by Rangers. Rangers need to be through the CVA by 6th June or they will be liquidated....my money is on liquidation. Transfer of SPL share and SFA registration will be complete before a final report on dual contracts is complete.....New Club escape any punishment and/or sanctions for dual contracts.

[Scotty]

The SFA have already said they aren't going to do an independent investigation on the dual contracts and are leaving that up to the SPL....so they've already bought themselves a good chunk of delay. I have a feeling the SPL will delay any decision on new rules etc at next weeks meeting because they have had insufficient time to look over the information not yet supplied by Rangers. Rangers need to be through the CVA by 6th June or they will be liquidated....my money is on liquidation. Transfer of SPL share and SFA registration will be complete before a final report on dual contracts is complete.....New Club escape any punishment and/or sanctions for dual contracts.

I would put (legally earned and fully tax paid) money on that scenario being exactly what happens and if it does then I cannot see how I could continue to maintain my current/previous position regarding the current sanctions being enough.

if everything that is coming out now about the EBTs, on top of the other stuff, is proved to be correct, Rangers would have to be kicked out of football at any level .... and a few folk will be getting a bit twitchy as each passing day brings more revelations that could and perhaps should lead to criminal charges.

[Gabby]

Let's be clear. Rangers have been found guilty of the Big Tax Case and they have admitted guilt. The appeal is against the size of the peanlties and interest on top of the outstanding tax.

The result should be that all games where a player was illegally registered result in backdated 3-0 losses, which would result in handing back titles. This is cheating of the highest order and the SFA should expell them

[CaleyD]

Let's be clear. Rangers have been found guilty of the Big Tax Case and they have admitted guilt. The appeal is against the size of the peanlties and interest on top of the outstanding tax.

The appeal is on the basis of diminished responsibility....i.e. Rangers defence is one of "we didn't know we were breaking the tax laws". The job of the tribunal is to ascertain whether or not (on the balance of probability) that is true. HMRC do not have to prove that it was deliberate in every case, they just require enough to show that Rangers knowingly and purposefully broke the tax laws as part of the scheme. In other words, do the claims of ignorance hold water.

It comes down to whether or not the payments were discretionary or non-discretionary (was it part of a salary package or not). If the existence of side letters can be proven (and the BBC claims would suggest it can) then it's case closed as that would be as damming as it gets.

On top of that it throws open the player registration breaches with the SPL/SFA...and I have to say that I believe the SPL & SFA have been negligent in their handling of that to date. For a start, the SPL didn't begin looking in to it until March when they should have been investigating it in parallel with the Tax Tribunal. We then learn this week (although we kinds knew before) that Rangers have not released the required information to them...why have they waited this long before setting a deadline? Furthermore, as it involves player registrations then why have the SFA not been investigating?

UEFA have to be looking at all this and wondering if these associations are fit for purpose, if they're not then it's more than just Scottish Football that's screwed up.