Glasgow Rangers gone into administration

[JohnnyH]

My mate works in financial services in Scotland and says that the papers have been lodged at Edinburgh court. However, their debts are so big, that just going into admin, then back out will not wash with HMRC - They have still to produce annual financial reports and with total debts expected to be between £80 - £100m and therefore with no European footie for 3 years if they go to admin / insolvency, they will never pay off debts, or will have to pay their playing squad about £3k a week.

 

Basically, this could be the beginning of the end for RFC.

 

There but for the grace of God go us!

[fowler9]

I've never known them to be leached by owners so how the fuck does a club with far more revenue for all but one other club in the entire country manage to get in such shit

[moof]

Can't say i'm bothered, strange for such a big club though.

[Guest LFD]

Sad, wouldn't want that to happen to any club.

 

The thing is you sort of always knew someone would always buy us, given the Premiership is such a popular place and the size of our fanbase etc. The worry was who really, as we didn't want another Hicks / Gillett.

 

But why would anyone buy Rangers and pay off their debt? It is not like they are going to make loads of money in that weak league. They have a big fanbase, but no one would see a return on their invest paying £100 million for a side in the Scottish Premiership.

[Whelan]

Sad, wouldn't want that to happen to any club.

 

The thing is you sort of always knew someone would always buy us, given the Premiership is such a popular place and the size of our fanbase etc. The worry was who really, as we didn't want another Hicks / Gillett.

 

But why would anyone buy Rangers and pay off their debt? It is not like they are going to make loads of money in that weak league. They have a big fanbase, but no one would see a return on their invest paying £100 million for a side in the Scottish Premiership.

 

I think you could if you took a long term view. They do need to be making the Champions league group stages though.

[Anubis]

Still, at least there's another club in Glasgow they can sup.... ....no, no, no. Must be nice.

 

After the last few months I've lost my capacity to be shocked by anything in football. I'm surprised it got to this, though.

[Lee909]

I'm sure I'm heard someone say on the radio a week back that they expect them to fold and reform the next day under a new name but that due to pressure from sponsers and tv companies they will go straight back into the SPL.

[fowler9]

out of interest do Scotland do the points deduction thing?

[Trumo]

I've never known them to be leached by owners so how the fuck does a club with far more revenue for all but one other club in the entire country manage to get in such shit

 

Big-fish-in-small-pond syndrome.

 

Obviously they and Celtic both have a huge following, but the SPL is so weak that there is barely any interest in it unless one of these two is playing. Pretty much all the other SPL teams don't get anywhere near sell-out crowds unless one of the Old Firm is in town. The Old Firm have such a stranglehold on Scottish football through decades of dominance that there is no scope for another club to threaten in the same way Aberdeen once did.

 

This scenario is not attractive to sponsors, and is something La Liga have already tried to look into, because the Spanish top flight is quickly becoming a more glamorous version of the SPL.

[Anubis]

I'm sure I'm heard someone say on the radio a week back that they expect them to fold and reform the next day under a new name but that due to pressure from sponsers and tv companies they will go straight back into the SPL.

 

They wouldn't get away with that, would they? Surely UEFA and FIFA would look into it.

[Lee909]

Don't know,just what a Scottish reporter said.

[fowler9]

Big-fish-in-small-pond syndrome.

 

Obviously they and Celtic both have a huge following, but the SPL is so weak that there is barely any interest in it unless one of these two is playing. Pretty much all the other SPL teams don't get anywhere near sell-out crowds unless one of the Old Firm is in town. The Old Firm have such a stranglehold on Scottish football through decades of dominance that there is no scope for another club to threaten in the same way Aberdeen once did.

 

This scenario is not attractive to sponsors, and is something La Liga have already tried to look into, because the Spanish top flight is quickly becoming a more glamorous version of the SPL.

 

I know exactly where your coming from but it still really shouldn't be happening to a club of that size and its not like the likes of Steven Davis and Sone Aluko are going to be earning big money compared to about ten years ago when they had Klos, Van Bronckhorst and Flo etc

[Guest ShoePiss]

I'm sure I'm heard someone say on the radio a week back that they expect them to fold and reform the next day under a new name but that due to pressure from sponsers and tv companies they will go straight back into the SPL.

 

Where would they be playing, on the local sunday league pitches?

[fowler9]

thats where they play most of their away games isn't it?

[Anubis]

Just reading the BBC online report an they're suggesting it's a tactic to buy time to negotiate with, and put pressure on HRMC.

[fowler9]

Portsmouth set to go into admin again too, has any due dilligence ever been undertaken by anyone at that club?

[Laburnum]

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Rangers Statement

 

Mon, Feb 13, 2012

 

 

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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."

 

 

 

Rangers

Craig Whyte

[18-5]

Wasn't there some Rangers fan here who kept taunting us that we were going into admin before NESV took over?

 

Think he was from that Mingeford forum. Tough luck sunshine. :lol: :lol:

[Moctezuma]

There a fair amount of chat in the papers up here stating that rangers going into administration will result in a catastrophe for the league. I'm sure they'll wriggle out of it, I've heard the sky contract stipulates that the four old firm matches per season must be shown.

 

As someone who on occasion goes to matches involving the "lesser" teams (the standard is poor, but a good laugh with mates) it would be nice to see one of the ugly sisters usurped by another side like Hearts managed in 2006.

[Xherdan]

A Celtic League really should be looked at. Scottish league, League of Ireland and northern Irish League combined. Might be on option.

[Trumo]

There a fair amount of chat in the papers up here stating that rangers going into administration will result in a catastrophe for the league. I'm sure they'll wriggle out of it, I've heard the sky contract stipulates that the four old firm matches per season must be shown.

 

As someone who on occasion goes to matches involving the "lesser" teams (the standard is poor, but a good laugh with mates) it would be nice to see one of the ugly sisters usurped by another side like Hearts managed in 2006.

 

I don't think they will linger long in administration either, but the part about the Sky contract makes no sense. If a club becomes insolvent and ultimately folds (not suggesting that is very likely with Rangers) then it cannot fulfil its fixtures. A TV contract stipulation means nothing in that instance.

[kalasoma]

So they might as well just give the Scottish premier league title to Celtic for the next five years.

[razor]

What a smashing week Al Kayll must be having.

[Peflecan]

fuck Rangers

[Andi18]

If Rangers go under the only way the SPL can continue is by introducing a handicap points system for Celtic and others in a staggered scale if that makes sense. Without it, the league is completely pointless and Celtic will be affected by the loss of revenue due to no major rival in the league.