Alarming corporate governance chasm at SFA

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Campbell Ogilvie was an executive director of Rangers for the first five years of their Employee Benefit Trusts and during their earlier illegally-executed tax avoidance Discount Options Scheme.  He received a ‘loan’ from a Rangers EBT, which he has not repaid and is not expected to repay, and recently described his company responsibilities during this period to a friendly journalist as being administrative, and then legislative.

He has been a director of the SFA for 22 years and is now president.

During the period when Ogilvie was director of both Rangers and the SFA the club illegally registered dozens of footballers with the SFA.  All directors are responsible for actions of a company, executive directors especially so.  Those who represent themselves as having administrative and legislative roles, absolutely so.

SFA chief executive, Stewart Regan, yesterday defended Ogilvie’s shameless refusal to resign by offering a defence which echoed Rangers ‘Craig Whyte acted alone’ defence, which was comprehensively dismissed by the SFA Judicial Tribunal.

Regan said, “We have had very clear feedback that the president was not involved in any letter or correspondence with regards to player EBTs.

“We are all aware of businesses being run where you have one owner and operator running the club and a number of directors sitting below. The way this process has been managed, a lot of this correspondence was done much higher up the chain than Campbell Ogilvie.”

This is cringe-worthy nonsense and gets to the heart of the lack of corporate governance at the SFA. Mr Regan is not qualified to assure us that Mr Ogilvie has no case to answer. That is not a judgement for him to make and is certainly not an inference that can be made on the basis of private comments from Mr Ogilvie or other former Rangers directors similarly contaminated by this issue.

Before the chief executive can state as fact how Rangers conducted their business, and the limited involvement of Mr Ogilvie, some form of inquiry must have taken place. No such inquiry happened.

“We have had very clear feedback”, said Mr Regan. Who is “we”, was it an independent panel that received this feedback, or did Mr Regan deal with this personally? Who gave the feedback? Was Mr Ogilvie subject to the same independent scrutiny as anyone else in the game, from Neil Lennon to Craig Whyte, or was this passed off with a handshake?

Mr Regan’s failure to recognise the serious corporate governance failures in his conduct is alarming. We don’t need this guy to know the offside rule but he has to understand good corporate governance requires questions against your president to be openly and independently investigated.

When these are our standards, what else is the executive turning a blind eye to?

Mr Regan was careful to limit his claim on what Mr Ogilvie was not party to. “We have had very clear feedback that the president was not involved in any letter or correspondence with regards to player EBTs” sounds like a substantial piece of information but it’s not.

This only claims that Mr Ogilvie did not author any side letter or contract relating to an EBT, which is not in doubt. The important issue is clearly Mr Ogilvie knew dozens of players had EBTs, he knew football players’ remuneration is subject to detailed written contracts and he knew all money paid to a player, from any source, in relation to football, must be detailed on his contract and registered with the SFA.

For Rangers players’ EBTs to be consistent with SFA and Fifa requirements they would need to be completely discretionary, an optional extra the players were unable to rely on. Mr Ogilvie, the Great Football Administrator, knew all of this.

Instead of good corporate governance we appear to have a self-certified president – we know Mr Ogilvie did nothing wrong because Mr Ogilvie said he did nothing wrong. He is at once, a Great Football Administrator and unaware of the football administration actions of the company he was legally responsible for.

Ogilvie was an executive director of Rangers.  It was his responsibility as a director of Rangers to ensure that the club contracts and legislative responsibilities were conducted in a proper manner.  He was simultaneously a director of the SFA.  It was his responsibility as a director of the SFA to ensure the Association was run in an even-handed manner, that one club – his club or any other – could not load the dice.

Regan went on to say “Since February 14 he has had no involvement at all in any board meetings, any decisions or any meetings with the club.”

It is reassuring that he has withdrawn from an important part of the legislative process of the SFA but his prominent participation in yesterday’s AGM confirms that his influence in other areas remains.

Regan added “[EBTs] are illegal if they are used knowingly in an incorrect manner. That is something we are still waiting for facts on.  But I am satisfied that Campbell has discharged his duty of care.  He has done everything we could have asked of him and, so far as his integrity is concerned, he is a man with many years as a highly respected administrator across the game of football in Scotland.”

“So far as his integrity is concerned….many years …. respected administrator”.  Those words may bring to mind all those years Ogilvie was at Ibrox while Rangers sectarian signing policy was in place.

Regan dismissed calls for his own resignation, no doubt confident he can self-certify his performance.

I am hugely reluctant to open a political debate, but does the painful lack of accountability and scrutiny in Scotland not alarm you? The actions (inactions) of Ogilvie and Regan would never be accepted in England, where structures exist to hold officials to account. As a relic from Rangers sectarian signing policy days, Ogilvie would be regarded as an embarrassing dinosaur, he would never be made president! The ability for officials to state facts without an inquiry would never be tolerated.

We look more like a rotten borough than a country with the mechanisms necessary to nurture a successful state. Where’s your voice now, Mr Salmond?

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942 Comments

  1. THE EXILED TIM on 7 June, 2012 at 23:26 said:,

     

     

    Eh, no.

     

     

    Check the games after the split.

     

     

    It has been going on for a few seasons.

     

     

    As an example, When was the last time we, with the biggest support in Ireland, England & OOR Curly, could make a weekend of it, adding to GCC economy?

     

     

    After the split last season, every game was a Sunday for us and THEY had two Saturday games… Go figure.

     

     

    Right, I’m not one for having a go at our board as, I am 20 mins walk away. My gripe is I’ve lots of matess who, due to DELIBERATE DESCRIMINATION, are being denied watching Celtic.

     

     

    Idon’tlikeSundaysCSC

  2. lochgoilhead bhoy on

    THE EXILED TIM on 7 June, 2012 at 23:30 said:

     

    “Time to retire, work in the early hours, trying to mix dyes that resembles Chelsea blue, feckin latex gloves leaked, hands are a rather nasty colour,even after washing with thinners, things you do for money eh !”

     

     

    Try WD40. Rub it in then wash off with soap / washing up liquid.

  3. NatKnow - "We welcome the paper-chase..." on

    jude2005 is Neil Lennon \o/ on 7 June, 2012 at 23:39 said:

     

     

    Ah! You mean where they originated from rather than shipped in specifically for the programme?

  4. Paul67 – whilst I agree with your summation (and like you I am angry) – Ogilvie’s position may well be a moot point by mid-July.

     

     

    Interesting that King’s statement has been couched in a ‘we are the people’ fashion to provoke negativity by creditors (many who are supporters or are so inclined) to the Green/ D&P proposed CVA – it will fail. HMRC’s appointment of BDO as liquidator more than implies rejection of the CVA – in line with their standard practice.

     

     

    RFCiA can either choose to accept the original SFA transfer-ban decision or gamble that they might receive a greater punishment should they pursue the appeal.

     

    Players will leave for nothing or minimal fees – transfers are imminent. Players and Agents will make a move before they are tied into any litigation. Liquidation sees their contracts revert to SFA control – wage problems, no football (Europe certainly) and no indication of; if, when or where they will be playing.

     

     

    No audited accounts, license? Membership of SPL or SFL?

     

     

    The EBT player registration issue and the BTC and subsequent FIFA/ UEFA comment – potential investigation by Authorities other than the SFA.

     

     

    Throw in a mass of litigation (much of which will run into 2013) – the boil will burst or Hector will lance it – 1872 and Ogilvie and others will be cleaned away with the puss!

  5. CT

     

     

    Shouldn’t be (IA) if you put on that swag I handed over to you on Sunday!! :-)

  6. That’s a fantastic line upfor pre season so far!! …. Should go a long way in preparing us for CL qual

     

     

    Real Madrid Ajax and inter Milan

     

    Nice one PL

  7. Kilbowie Kelt on

    Do we know definitively that RangersFCIA were in fact paid their full prize money for the recently finished season ?

     

     

    Anybody ?

  8. NatKnow - "We welcome the paper-chase..." on

    jude2005 is Neil Lennon \o/ on 7 June, 2012 at 23:48 said:

     

     

    Perhaps Inverness is a little like Edinburgh these days in that it attracts a lot of economic migrants from the South East?!

     

     

    I thought the whole “show-business for ugly people” thing was taken too far tonight!

     

     

    Is Michael Forsyth Armando Iannucci’s Evil Twin?

  9. I believe Dave King….Really this time I do. He is a tax dodging lier (sue me), he knows a scam when he sees one. Duff and the gang are carving it up right in front of their eyes and he knows it.

     

     

    Dave King et all, sh*ting their briefs…! lol

  10. CelticResearch (@CelticResearch)

     

    Posted Wednesday 6th June 2012 from Twitlonger

     

     

    To keep Bampot humour levels high how about a vintage June 23 2011 article from the Scottish Sports “News” Writer of the Year? No link and this isn’t made up.

     

     

    REVEALED: How new Rangers bosses aim to turn club into global, cash-generating machine

     

     

    Jun 23 2011 By Keith Jackson

     

     

    THEY could flog the rights to Ibrox and make a quick killing just as Arsenal did when Highbury morphed into the Emirates.

     

     

    They could push for an all-new league cup competition which would see Rangers and Celtic go head to head with Chelsea, Liverpool and Man United.

     

     

    They could even take the Old Firm derby halfway across the world to stage it in the United States or in Australia.

     

     

    This is the future under Craig Whyte and his newly-assembled executive team at Ibrox.

     

     

    Right now, as far as Ali Russell is concerned, Rangers could do just about anything as they set about their quest to turn a debt-ridden Scottish institution into a global money-making machine.

     

     

    No idea to bring home the big bucks will be dismissed. No potential little earner ignored until each of its avenues has been completely explored and exhausted.

     

    These people did not take over this club for the hell of it. Now that they’ve stormed through the front doors of Ibrox they have no intention of making a loss out of the old place.

     

     

    And after Whyte’s radical restructuring of the boardroom, the burden will fall chiefly on operations executive Russell to show them the money.

     

     

    His credentials are impressive enough, having held down – and been headhunted from – top marketing and commercial posts at the Scottish Rugby Union and Hearts before being appointed as deputy MD by the mega-rich owners of Queens Park Rangers.

     

     

    He’s young – having yet to turn 40 – he’s slick and he has all the jargon off pat too. Russell talks about “core markets” and “brand development” much more comfortably than he does about 4-5-1s or 4-4-2s.

     

    But that’s what Gordon Smith is for, isn’t it? Russell’s job is to concentrate on an altogether different set of numbers. And to inflate them from every conceivable angle.

     

     

    “It’s about looking at all avenues,” Russell says, after being asked how on earth he plans to turn a financially stricken club into some kind of golden goose laying eggs on a global scale.

     

    “It’s about looking at the real estate here. How do we maximise that? Is it just a ground for football or does it have more uses?

     

     

    “Can we use rooms on non-match days more effectively? What do we do to grow the brand, where do we play as a team? How do we integrate international players so that we’re building the brand in different markets? Where do we go with our own broadcast rights? There are numerous areas we are looking to investigate.”

     

    And Russell will be charged of the task of probing each and every one. Even those ideas which to many Rangers fans may seem strictly off limits, like the possible rebranding of Ibrox.

     

     

    Now that really would test the levels of goodwill which have been soaring sky high for these people ever since Whyte and his group manoeuvred Sir David Murray out of power for the price of just a single pound.

     

    In fact, the club could stand to rake in many millions of pounds just by agreeing to sell a name. Russell doesn’t completely rule such a scenario out. If truth be told the businessman inside him must be bursting to strike a deal which would see Rangers gain so much from giving away so little.

     

     

    But, with so much emotional investment to protect, neither is he in a rush to rule it in.

     

     

    Instead he chooses his words with great care as he says: “At this stage of the new era we consider everything but it’s not something we’d go out and look at.

     

     

    “Ibrox is synonymous with Rangers so I don’t think it’s something we would consider at this stage. We are very protective of our intellectual property.”

     

    Clearly, the sanctioning of such a break with tradition would have to be treated with great caution. But Russell belongs to a modern world of bold thinkers.

     

     

    And there are plenty more ideas where that one came from.

     

     

    Challenge He adds: “I’m looking forward to helping develop the brand of this club, not just in Scotland but internationally.

     

     

    “I think we have some huge opportunities. The club has been under some challenging financial circumstances. Moving forward, we have to challenge ourselves.

     

     

    “How do we generate more interest in Scottish football?

     

     

    “How do we become central to that and move it forward? In terms of pre-season, we went to Australia last year – do we now go to the US or Japan?

     

     

    “What are the core markets we are going to be focusing on so that we reinforce it every time we do a tour. So we don’t just go where the biggest cheque is – we look at growing a fan base in different areas of the world which strategically fit back well into the club itself.”

     

     

    Russell and Whyte also plan to quickly develop the land around Ibrox or whatever else it’s called somewhere down the line.

     

     

    Hotels, retail outlets and new residential developments are on the cards and Russell is already in talks with Glasgow council chiefs about how best to fund this work.

     

     

    He has also opened discussions with SPL chief Neil Doncaster on how best to maximise the Scottish game’s earning potential. And that may well include the breaking down of many borders.

     

     

    Russell says: “There has been a lot of talk about cross-border cup competitions.

     

     

    “Arsenal and Manchester United have not been playing their best teams in the early stages of the League Cup.

     

     

    “A cross-border aspect would generate a lot more interest. Should we be involved in those sort of discussions? Absolutely. If we feel there’s an appetite from the fans I see no reason why we wouldn’t look at it.”

     

     

    The prospect of picking up the Glasgow derby and dropping it somewhere on the other side of the planet, in the form of a pre-season friendly, has also been mooted in recent years.

     

     

    Russell’s Spidey senses are tingling. “It’s about making it the biggest rivalry in world football,” he says.

     

    “How do we ensure that without the negativity that maybe came to the surface last term?

     

    “Could we take it to the States or abroad? Again, we would look at things. However, it would have to be right for the fans.

     

     

    “They come first in terms of moving forward. There’s a lot of history here. The brand can’t be tarnished. We can’t move too far too quickly but we have to be open-minded.”

  11. The bould Hector's bhoys..... Tá ár lá anois on

    Just havin a wee swatch at Duff and Phelps wiki page…

     

     

    http://en.wikipedia.org/wiki/Duff_%26_Phelps

     

     

     

     

    The Insolvency Practitioners Association have begun looking into administrators Duff and Phelps’ involvement with Rangers F.C.

     

     

    Followed by…

     

     

    The apparent progress [whit?] made by Duff & Phelps towards rescuing Rangers has seen their Wikipedia page disparagingly edited by Celtic zealots.

     

     

     

    :O))

  12. Clashcitybhoy on

    Praecepta,

     

    Reading today’s latest infighting must be deeply concerning for fans of Rankers.They are now at each other’s throats, which is not good place to be.

     

     

    My guess is that after further infighting, twists , turns, false dawns etc. we will eventually see two ‘businesses’ – a football club and a separate stadium , and thus their troubles will continue for a decade plus.

  13. Sixteen roads to Golgotha on

    Kayal33 on 7 June, 2012 at 23:36 said:

     

     

    Just seen that there myself mate.

     

     

    Personally speaking,i wouldn’t sell Samaras for anything less than £7million,particularly if he plays well at the European Championships.

     

     

    Lawwell should tell them all to gtf with their Mickey Mouse offers.

  14. Clashcitybhoy on 7 June, 2012 at 23:58 said:

     

    Praecepta,

     

    – a football club and a separate stadium , and thus their troubles will continue for a decade plus.

     

    _________________

     

     

    Myself, TBB, Auldheid & others (apologies can’t remember everyone) were discussing lease-back of ipox 18 months ago – they will be tenants for years to come @circa £3-4 per annum (and rising) – perhaps for eternity!

  15. lochgoilhead bhoy on

    The bould Hector’s bhoys….. Tá ár lá anois on 7 June, 2012 at 23:57 said:

     

     

    sorted

  16. Sixteen roads to Golgotha on

    Also,the signing of FF for £2million will turn out to be the bargain of the decade.

     

     

    Once he signs on the dotted line,he will immediately become a £6million player.Athough in saying that,i would put his value at somewhere in the region of between £8-10million.

  17. 16 roads….

     

     

    So we got a £10m keeper for £2!!!

     

     

    That PL really is some guy :-)))))

  18. Sixteen Roads

     

     

    Leave him in the 2 million bracket for now. I don’t think we could afford an £8,000,000 player for the coming season… unless we give him an EBT off course.. ;)

  19. The bould Hector's bhoys..... Tá ár lá anois on

    lochgoilhead bhoy

     

     

    Ha Haaa…..indeed.

     

     

    [……now where’s that King Billy page……]

  20. Sixteen roads to Golgotha on

    hamiltontim on 8 June, 2012 at 00:15 said:

     

     

    I shouldn’t really have said that until after he has signed mate,that Newcastle mob could well be reading these pages.

  21. Had a nosey at one of the papers tonight while in shops and it had the FF story, how true is it?

  22. 16 roads

     

     

    Agree about Samaras, but were you involved in the Ibrox/Murray Park valuations when you mention Forster :-)

     

     

    Seriously, I think Forster would be a prize catch at the price.

  23. Sixteen roads to Golgotha on

    The Legend Johnny Doyle on 8 June, 2012 at 00:18 said:

     

     

    That’s what i thought as straight after i posted that mate.Foot & mouth disease as usual.

     

     

    Doh.

  24. Interesting wee piece from The Guardian 2007 –

     

     

    A scandalous decision which damages integrity of football

     

     

    Lawrence Donegan

     

    The Guardian, Thursday 6 December 2007

     

     

    In the eternal conflict between mop-and-pail domestic chores and the ball-gown glamour of European engagement, nothing ends a football debate as abruptly as “the greater good”. Who can resist national pride, the bigger picture and other such heart-stirring abstractions? Certainly not the Scottish Premier League, which has agreed to postpone Sunday’s match between Rangers and Gretna to help the Ibrox club not suffer any injuries before their final Champions League group match against Lyon.

     

     

    The postponement was a triumph for Rangers, who need a draw to progress into the last 16. Congratulations to them for having the gumption to ask for it in the first place. If anyone deserves to make progress it is Walter Smith, a talented and dignified manager who has performed a miracle since returning to Ibrox less than a year ago.

     

     

    But wishing the best for Smith and his squad does not diminish the fact that giving them the weekend off was a scandalous decision, as harmful in its own way to the integrity of football as the allegations of corruption and match-fixing now lapping around the waists of those who run the sport across Europe.

     

     

    Indeed, it is hard to know where to start when it comes to listing the SPL’s failings in this instance. Perhaps a good place would be to correct the falsehood peddled by the league that Lyon were being granted a similar dispensation by the French. This was not true, as Lyon’s general manager, Marino Faccioli, confirmed when he said the club have never asked for a postponement, on the grounds that it “would have been a non-starter”.

     

     

    “The French situation played no part in our decision-making process,” an SPL spokesman said yesterday. If that was the case, then why bring it up in the first place other than to mislead?

     

     

    A kinder explanation might be that the SPL did not seek clarification from Paris simply because it did not have access to a phone – unlikely, of course, but this would also explain why the league failed to check its other tenuous assertion that the success of Scottish clubs in Europe would help attract better sponsorship and television deals.

     

     

    Try telling that to Setanta, which has paid £13.6m to televise Scottish matches and yesterday accused the SPL of “damaging the integrity of the league”. As a spokesman said: “We can’t have clubs submitting these requests on a random basis. You’ve got to have respect for your own championship.”

     

     

    Next on the SPL’s call sheet should have been Hearts, who faced a similar situation in 2004 when they returned from a European match on a Friday afternoon and were due to play Rangers 24 hours later. The Edinburgh club’s request for a one-day postponement was rejected, rightly, by the SPL and Rangers. The difference now is the two clubs involved were happy to reschedule. “We understand the importance of the game, particularly for Rangers with their European aspirations,” said Gretna’s manager, David Irons.

     

     

    Only a brave soul would chide a manager who has guided his team towards relegation certainty long before Christmas, but Irons’ job is not to look out for Rangers’ aspirations in Europe, it is to do his best for Gretna. That would have meant insisting his team play Rangers on Sunday, when the Ibrox club would have had one eye on the Lyon game, and not next month, when Rangers will be fully focused on giving Gretna a hammering.

     

     

    Progress to the last 16 of the Champions League would bring a financial windfall of around £3m; again, great news for Rangers, but bad for the smaller Scottish clubs who will find the financial gulf between themselves and Rangers has grown even wider.

     

     

    To point out all of the above is to invite accusations of small-mindedness or, even worse, anti-Rangers bias. Sadly, that is the way of things in Scotland, but such criticisms can easily be dismissed by arguing the same logic should be applied to Celtic.

     

     

    As sure as a hangover follows Hogmanay, Celtic will one day ask for a match to be postponed on similar grounds and the SPL will be forced into another scandalous decision lest it be accused of showing favouritism towards Rangers. When that moment comes it will be the final confirmation that those outside Scotland who take the view that the SPL is little better than a pub league are absolutely right, although not for the reason they think.

     

     

    ————————-

     

    5 years old but still relevant!

     

    HH

  25. Sixteen Roads

     

     

    That Newcastle mob could well be reading these pages.

     

     

    Would that be a very worried Souness?

     

     

    Spell check just checked Souness as “Sourness” Spell check must know the dirty cheating bazza…!

  26. Sixteen roads to Golgotha on

    Bloke109 is Neil Lennon on 8 June, 2012 at 00:24 said:

     

     

    He has developed into a great goalkeeper mate,and they are few and far between,especially English ones.

     

     

    Once the big man makes his debut for their international team,his value will rocket.

     

     

    Anyway fingers crossed that we get him signed up asap,i won’t be saying anything more on the matter until after he puts pen to paper.