Rangers face uncertain future

Markus Liebherr

Markus Liebherr

First published in Saints News

The future looks uncertain for Rangers who are due to play in the three-club Markus Liebherr Memorial Cup with Arsenal and Saints at St Mary's on July 14.

Rangers have been consigned to liquidation after Her Majesty's Revenue and Customs decided to reject an offer from Charles Green's consortium.

The decision means Green's Company Voluntary Arrangement (CVA) will fail to achieve the 75 per cent backing needed from creditors.

Green will now push ahead with plans to buy the club's assets for £5.5million in the coming days with both HMRC and Ticketus, the other major creditors, not expected to challenge the newco purchase deal he has struck with administrators Duff and Phelps.

But there is no guarantee the new entity will be able to play in the Clydesdale Bank Premier League.

SPL clubs would themselves decide on any application to acquire the club's share and could impose sanctions.

Dundee United chairman Stephen Thompson last week doubted whether Rangers would have enough support and some fans have been rallying their clubs to reject any proposal, although commercial interests could outweigh any principled stand, especially with no confirmation that television deals will continue without Rangers.

A 'newco' Rangers would not be allowed to play in Europe for three years and Green faces the prospect of losing players.

HMRC, whom Rangers are listed as owing more than £21million, believe their decision allows them to pursue individuals in the courts.

The tax authority forced Rangers into administration in February over millions of pounds of unpaid tax under Craig Whyte and could also pursue former owner Sir David Murray over a tax case, which could result in a £75million bill.

A statement from the tax authority read: ''A liquidation provides the best opportunity to protect taxpayers, by allowing the potential investigation and pursuit of possible claims against those responsible for the company's financial affairs in recent years.

''A CVA would restrict the scope of such action.

''Liquidation will enable a sale of the football assets to be made to a new company, thereby ensuring that football will continue at Ibrox.

''It also means that the new company will be free from claims or litigation in a way which would not be achievable with a CVA.

''Rangers can make a fresh start.''

Rangers administrators Duff and Phelps said Green's consortium would move to acquire the club's assets immediately after the CVA is formally rejected at a meeting of creditors on Thursday morning.

''That transaction will be completed within a few days,'' joint-administrator Paul Clark added.

''The sum payable to creditors will be £5.5million, most of which has already been paid over to us by the Green consortium.''

Clark added: ''It was with HMRC's approval that a proposal was placed before creditors for consideration.

''However, it is the commercial view that the level offered within the CVA was not enough to merit departure from their normal policy of seeking a detailed investigation via a liquidator.

''However, we have been left in no doubt by HMRC the fundamental reason for the rejection of the CVA proposal is the historical non-compliance with tax liabilities by the former owners and directors of the club.''

Green claimed HMRC's decision would result in less revenue for the taxpayer, but it also means his group will have to pay less.

Green said: ''Frankly, I do not see what benefit will be achieved by this decision.

''My consortium's offer for a CVA amounted to a total of £8.5million.

''Now that we will have to complete the purchase via the formation of a newco, the purchase price and therefore the amount available to creditors will be £5.5million.

Green added: ''The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium.

''We will be liaising with the football authorities at the earliest opportunity to establish our position regarding the SPL.''

Green, who had been talking in recent days about transfer targets and raising up to £20million, could lose players for nothing as PFA Scotland previously stated that no one is obliged to transfer their contract to a newco under employment law.

The club's ability to sign players is also in doubt given uncertainty over a 12-month transfer embargo imposed by the Scottish Football Association.

Comments (18)

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6:51pm Tue 12 Jun 12

acardiffsaint says...

if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame.
if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame. acardiffsaint
  • Score: 0

6:58pm Tue 12 Jun 12

Seedhouse the Unrepentant says...

It's time those overspending were brought to book or the distortion of football over the last couple of decades will continue.

On a brighter note that picture of Markus always brings a smile to my face.
It's time those overspending were brought to book or the distortion of football over the last couple of decades will continue. On a brighter note that picture of Markus always brings a smile to my face. Seedhouse the Unrepentant
  • Score: 0

7:02pm Tue 12 Jun 12

G0Rf says...

hope the same happens to the fishy lot down the road.

So who will play in place of Rangers then?
hope the same happens to the fishy lot down the road. So who will play in place of Rangers then? G0Rf
  • Score: 0

7:05pm Tue 12 Jun 12

Ashley Charles Pragnell says...

This could be welcome news from our clubs point of view if Nigel signs Steven Davies. It is unclear whether Rangers can now demand fees for their players. BBC Scotland have said that players may be released from their contracts and this would enable the players to find new clubs. Could this be why Nicola and Nigel have not made their move yet, they have been waiting for HMRC to act in relation to Rangers. Rangers today Poopy next.
This could be welcome news from our clubs point of view if Nigel signs Steven Davies. It is unclear whether Rangers can now demand fees for their players. BBC Scotland have said that players may be released from their contracts and this would enable the players to find new clubs. Could this be why Nicola and Nigel have not made their move yet, they have been waiting for HMRC to act in relation to Rangers. Rangers today Poopy next. Ashley Charles Pragnell
  • Score: 0

7:12pm Tue 12 Jun 12

andysaints007 says...

acardiffsaint wrote:
if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame.
What's history got to do with it? If you don't play fair then you reap what you sow!! There have been older 'companies' that have gone bust lately, just because you have a history means nothing !
[quote][p][bold]acardiffsaint[/bold] wrote: if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame.[/p][/quote]What's history got to do with it? If you don't play fair then you reap what you sow!! There have been older 'companies' that have gone bust lately, just because you have a history means nothing ! andysaints007
  • Score: 0

7:27pm Tue 12 Jun 12

circa 66 saint says...

Seedhouse the Unrepentant wrote:
It's time those overspending were brought to book or the distortion of football over the last couple of decades will continue.

On a brighter note that picture of Markus always brings a smile to my face.
very true mr seedhouse saints were not just a whim for markus he actually enjoyed his association with the club and you can bet he is still smiling
[quote][p][bold]Seedhouse the Unrepentant[/bold] wrote: It's time those overspending were brought to book or the distortion of football over the last couple of decades will continue. On a brighter note that picture of Markus always brings a smile to my face.[/p][/quote]very true mr seedhouse saints were not just a whim for markus he actually enjoyed his association with the club and you can bet he is still smiling circa 66 saint
  • Score: 0

7:27pm Tue 12 Jun 12

Ach I The Noo says...

Hate to say I told you so but....!

Now where's all those blue nosed b@stards who were on here last week singing those lovely, nothing to do with Saints, songs.......?

Just off to have some Jelly & Ice Cream.
Hate to say I told you so but....! Now where's all those blue nosed b@stards who were on here last week singing those lovely, nothing to do with Saints, songs.......? Just off to have some Jelly & Ice Cream. Ach I The Noo
  • Score: 0

7:41pm Tue 12 Jun 12

McBendy in Scotland says...

So, do we get the three points automatically now?
So, do we get the three points automatically now? McBendy in Scotland
  • Score: 0

7:44pm Tue 12 Jun 12

arthur dalyrimple says...

Ach I The Noo wrote:
Hate to say I told you so but....!

Now where's all those blue nosed b@stards who were on here last week singing those lovely, nothing to do with Saints, songs.......?

Just off to have some Jelly & Ice Cream.
here , here , those sectarian tax cheats are no longer , sad night for the masonic weirdos.
[quote][p][bold]Ach I The Noo[/bold] wrote: Hate to say I told you so but....! Now where's all those blue nosed b@stards who were on here last week singing those lovely, nothing to do with Saints, songs.......? Just off to have some Jelly & Ice Cream.[/p][/quote]here , here , those sectarian tax cheats are no longer , sad night for the masonic weirdos. arthur dalyrimple
  • Score: 0

7:45pm Tue 12 Jun 12

Jesus_02 says...

interesting that a new company will be a cheaper option and that a deal has aleady been discussed. Their total assets must be worth more than 5.5m.

It seems either way the former owners will be out of pocket and our of the football business and Rangers will continue. They are too important to the SPL for the SPL to not let them back in.
interesting that a new company will be a cheaper option and that a deal has aleady been discussed. Their total assets must be worth more than 5.5m. It seems either way the former owners will be out of pocket and our of the football business and Rangers will continue. They are too important to the SPL for the SPL to not let them back in. Jesus_02
  • Score: 0

10:00pm Tue 12 Jun 12

Saintsayer II says...

acardiffsaint wrote:
if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame.
I've got nearly 70 years of history so can I get away with 2p in the pound income tax Can I b0110cks
I just hope HMRC treat the fishy few the same way and force them into the liquidiser
[quote][p][bold]acardiffsaint[/bold] wrote: if your not a big company like vodafone paying big bungs so u can get a huge tax bill wavered then u have no chance. one rule for one and another for another. yes the companys should pay taxes but to end a club with so much history is a **** shame.[/p][/quote]I've got nearly 70 years of history so can I get away with 2p in the pound income tax Can I b0110cks I just hope HMRC treat the fishy few the same way and force them into the liquidiser Saintsayer II
  • Score: 0

10:09pm Tue 12 Jun 12

TheJoiners says...

Good Riddance to them. Didnt sign a Catholic until the 80s, yes the 1980s. Cheated there way for the last 20 years, sounds like another blue club a little nearer.
Good Riddance to them. Didnt sign a Catholic until the 80s, yes the 1980s. Cheated there way for the last 20 years, sounds like another blue club a little nearer. TheJoiners
  • Score: 0

7:26am Wed 13 Jun 12

Optimist says...

Presumably all player contracts are now voided. Leaving us free to contact any we choose.
Fantastic for us provided there's no silly wage demands...
Presumably all player contracts are now voided. Leaving us free to contact any we choose. Fantastic for us provided there's no silly wage demands... Optimist
  • Score: 0

7:43am Wed 13 Jun 12

franiow says...

Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.
Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying. franiow
  • Score: 0

10:58am Wed 13 Jun 12

Ach I The Noo says...

franiow wrote:
Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.
Not even these cheating gits can get away with changing Employment Law. Players ( Employees ) can decide to walk away....Free. Who holds their registration is the more important point.

And Jesus, amid their other crimes, ask why they are able to claim Ibrox was worth £110m on the books for years, but apparently is only worth about £5m now ?

Believe me, there are still quite a few large skeletons to fall out of that, soon to be empty, trophy cabinet !

But that's what 140 years of bigotry and cheating does to a club apparently too big to be disciplined......
[quote][p][bold]franiow[/bold] wrote: Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.[/p][/quote]Not even these cheating gits can get away with changing Employment Law. Players ( Employees ) can decide to walk away....Free. Who holds their registration is the more important point. And Jesus, amid their other crimes, ask why they are able to claim Ibrox was worth £110m on the books for years, but apparently is only worth about £5m now ? Believe me, there are still quite a few large skeletons to fall out of that, soon to be empty, trophy cabinet ! But that's what 140 years of bigotry and cheating does to a club apparently too big to be disciplined...... Ach I The Noo
  • Score: 0

11:16am Wed 13 Jun 12

Ashley Charles Pragnell says...

franiow wrote:
Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.
Franiow you have a good point but under the conditions of wages deferrals when the club went into adminstration, there was a clause in the players contracts that if during the close season a club came in for a player they would be sold at a reduced price, that still applied even if the assets are transferred to the new company. I still think Davies will move to Southampton.
[quote][p][bold]franiow[/bold] wrote: Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.[/p][/quote]Franiow you have a good point but under the conditions of wages deferrals when the club went into adminstration, there was a clause in the players contracts that if during the close season a club came in for a player they would be sold at a reduced price, that still applied even if the assets are transferred to the new company. I still think Davies will move to Southampton. Ashley Charles Pragnell
  • Score: 0

11:16am Wed 13 Jun 12

Ashley Charles Pragnell says...

franiow wrote:
Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.
Franiow you have a good point but under the conditions of wages deferrals when the club went into adminstration, there was a clause in the players contracts that if during the close season a club came in for a player they would be sold at a reduced price, that still applied even if the assets are transferred to the new company. I still think Davies will move to Southampton.
[quote][p][bold]franiow[/bold] wrote: Apparently players have to transfer to the newco Rangers because they are included in the assets that Green is buying.[/p][/quote]Franiow you have a good point but under the conditions of wages deferrals when the club went into adminstration, there was a clause in the players contracts that if during the close season a club came in for a player they would be sold at a reduced price, that still applied even if the assets are transferred to the new company. I still think Davies will move to Southampton. Ashley Charles Pragnell
  • Score: 0

10:05am Fri 15 Jun 12

lowe esteem says...

I say this with that wonderful picture of Markus firmly imprinted in my thoughts.
Why have the normally financially astute Saints invited this god-forsaken football club to our tournament anyway? I would have sooner seen a rare triumvirate of soundly run football clubs, with any questionable charity or benefit extended to long-suffering fans.
Or is there something else in it-maybe a player signing?
Or just call me cynical.
I say this with that wonderful picture of Markus firmly imprinted in my thoughts. Why have the normally financially astute Saints invited this god-forsaken football club to our tournament anyway? I would have sooner seen a rare triumvirate of soundly run football clubs, with any questionable charity or benefit extended to long-suffering fans. Or is there something else in it-maybe a player signing? Or just call me cynical. lowe esteem
  • Score: 0

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