I think some people have been reading too much into mentions of Rangers owing HMRC up to £75m. For clarity, the big tax case, with penalties and interest, could reach approximately £50m, but that is not the end of the story.
There is the wee tax case, the potential VAT liability relating to the income from Ticketus and VAT due each quarter. Then there is Pay As You Earn (PAYE) and National Insurance (NI). With the lack of financial information from Rangers barring this “£75m” statement, it’s possible VAT, PAYE and NI are delinquent.
Add this lot up and you can easily see why the taxpayer could be looking at a £75m hit, Rangers did not link this figure with the big tax case alone. I’ll leave it up to Craig Whyte’s next interviewers to ask how much of this figure has been incurred under his stewardship.
And remember, we’re only talking about HMRC debt here, don’t forget about the police, Glasgow City Council, utility suppliers and a multitude of small local businesses.
We don’t need no stinkin’ Rangers.
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What a day. thanks for all the laughs.
aff tae ma bed still laughin
Just wish ma granda was here to see this unfold.
gnite world.
.
Just where has all the Money Gone..?
( The Herald )
FURIOUS Rangers fans last night demanded to know where the club’s millions had gone after owner Craig Whyte took the first steps towards placing it in administration.
The Scottish Premier League champions lodged a notice of intention signed off by Whyte at the Court of Session in Edinburgh at lunchtime yesterday in what he described as the “start of a road to recovery”.
The 139-year-old club now has 10 working days in which to declare formally that administrators have taken over the running of the club.
The news enraged fans who want to know how the club had gone into meltdown. They greeted Whyte with a chorus of boos and abuse as he read out a statement at Ibrox yesterday.
Just days ago Whyte claimed to have pumped £33 million of his personal wealth into the club. It has also emerged the club raised £24.4m last year through a deal involving its season tickets, and last month it received £5m by selling star striker Nikica Jelavic to Everton.
Last night fans’ leaders demanded to know what had happened to the £62.4m.
Andy Kerr, president of the Rangers Supporters’ Assembly, said: “We wanted the club’s audited accounts published so we could trail what happened with regards to the sale and where the money went so we could see for ourselves. This now begs the question if we will ever get these answers.
“This development for the vast majority of fans will come as a hammer blow and they will be shocked.”
He continued: “The timing is a real shock. The sequence of events we expected was the accounts would be published, hopefully an annual general meeting would be organised, and then there would be the outcome of the big tax case and then a consideration of what that meant going forward, but that hasn’t happened.
“On the face of it, it is catastrophic. When you look at one or two examples of clubs going into administration down in England and with Motherwell and Dundee, they seem to pick themselves up and get on with it but in Rangers’ case, with all the ramifications, it’s on a different scale and we are not sure how achievable that is.
“Who’s fault is it? You could argue it was everybody’s fault for letting it happen.
“The previous directors raised questions, raised a lot of doubt … well this certainly indicates some of their concerns were genuine and reasonable.”
Whyte – just nine months ago pronounced as the self-made multimillionaire who could save the club – yesterday laid some of the blame for his decision to head towards administration on the ongoing court case with HMRC over the club’s use of Employee Benefits Trusts.
He said the verdict, which is due soon, could leave the club with a £75m bill it would be “unable to pay”.
Speaking to fans outside Ibrox stadium last night, Whyte insisted he and Rangers were “here to stay”, maintaining the legal move was made to “ensure the long-term survival” of the club. There was “no realistic or practical alternative”.
The Scottish champions will be automatically hit by a 10-point deduction by the Scottish Premier League if they proceed with administration, which would all but end their bid for a fourth successive title.
In a statement, the club said it was continuing to have dialogue with HMRC in the hope a “formal insolvency procedure can be averted”.
The club has stated its preference to go through a Company Voluntary Arrangement while in administration, a way of trying to reach an agreement in clearing the debt.
It would mean that, if creditors to the value of 75% of the total debt accepted a fraction of what they are owed, the club could come out of administration and carry on with no further penalty. This would allow Rangers to participate in European football next season.
The club warned that if it went into administration “in all likelihood” a
cost-cutting programme would be started “and staffing levels will be reviewed across all departments”.
Whyte added: “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.
“While it appears 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 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.”
Alistair Johnston, the former Rangers chairman, who last week revealed he had asked the Government’s Insolvency Service to clarify “certain financial arrangements” relating to the takeover, yesterday suggested former owner Sir David Murray had “certain rights with respect to recourse” if there was a default on the share purchase agreement with Mr Whyte.
He said: “The Murray Group I’m sure are considering their options – they’re the one entity who can address this more aggressively than anyone else.
“How far Murray International and Sir David want to take it is up to them.”
The Murray Group declined to comment last night.
Summa
Big Fat DJ, the jovial Staunch loyalist hun is hurting so badly
“Yesterday was one of the worst days of my life. I have never been embarrassed to be a Rangers man, but yesterday I was,” said the former Ibrox striker. “I have never been ashamed to be part of this club, never. Not when things have been poor on the park, not during any time of adversity. But what has happened at Rangers these past few months has been cringe-worthy.
“Ever since the news broke I have had a sickness in the pit of my stomach. Even now I cannot believe it. I know that there have been suggestions that this was coming, but I don’t think anyone appreciated just how bad the situation was.
“We have all spoken about the possibility of the club going into administration and there have been rumblings about it all season, but I cannot believe how quickly it has happened. Like every other Rangers fan, I am shattered. It is frankly awful news. Right now, the league title does not matter one jot. What is at stake is the very existence of the club, its very fabric. It is gut-churning to think about the future and the struggles that lie ahead in simply ensuring the club actually stays alive. Yes, it is that serious.”
A few observations from another of the LL:
Tom English – Stripped of their dignity
Sneddoni
at your service…
lenny and thommo
Happy Administration Day Bhoys and Ghirls.
Oh the shame , shame on them . Beggars and theives.
Will theNewco be able to use the cracked crest of the defunct club on liquidation day ?
Where were you when Rangers went belly up.
Happy Administration Day
Don’t normally send valentines cards but this year i’m sending one toi Craig Why/ite.
http://www.youtube.com/watch?v=9jPrShSCx0Q&feature=related
Lets see more of this
Sandman Is Neil Lennon says:
14 February, 2012 at 03:37
Fergus!
Morning is this day one of yesterdays team.
V
Derek Johntone said the following……
“Yesterday was one of the worst days of my life. I have never been embarrassed to be a Rangers man, but yesterday I was,” said the former Ibrox striker. “I have never been ashamed to be part of this club, never. Not when things have been poor on the park, not during any time of adversity. But what has happened at Rangers these past few months has been cringe-worthy.”
Never been embarrassed, never been ashamed…….
Errrr
Nazi salutes in Isreal
Manchester riot
Famine song
Sectarian signing policy
Defrauding Her Majesty
Sectarian singing
UEFA fines and sanctions
And so on
And so forth.
Thay have a stunningly high embarrassment threshold, that mob. They won’t be missed.
Good Morning!!!
For years, CQN and the collective new media have asked probing questions about the financial reality of football. Those questions, and their potential answers, have been debated, considered and debated again, all available free online to Scottish journalists.
This ‘PR Agenda’ problem exists in many areas of our lives. What is happening right now is a revealing, intimate ‘public / private communications moment’ in Scotland.
Andy Kerr, President of the Rangers Supporters Assembly is quoted in the Heralds’ February 14th 2012 addition (sic) as saying…
“…This development for the vast majority of fans will come as a hammer blow…”
“…. The timing is a real shock …”
“…. On the face of it is catastrophic …”
“ … Who’s fault is it …?”
President Kerr is the personification of two, potentially three things.
First, the shocking lack of awareness of himself, his ‘cohorts’, and their clubs wider support.
Secondly, he personifies the failure of Scottish journalism. Mr Kerr (& the wider public) possess a lack of awareness that has been fed, sheltered and, one could argue, nurtured by Scottish journalism for too long.
Thirdly, Mr Kerr could personify the Pandoras Box the New Media are opening; a frustrated, bewildered collective who find the basic structures of their beliefs collapsing around them and are required to pacify emotions.
Interesting Times?
The new media…. To paraphrase Joyce;
Hold on to it. It is the now, the here, through which all future plunges to the past.
Old Media have started plunging…
Roll on Peace & the Internet…..
Good morning friends from East Kilbride where it’s a gloriously warm, bright, sunny start to the day.
Jobo
Latest from RTC….
http://rangerstaxcase.com/2012/02/14/amateur-humiliates-mainstream-media/comment-page-1/#comment-52782
Here is a wee song that was playing all over the sooooside yesterday: Dododo…Dara Dum…Dododo….Dara dum….The fat greasy chip inside ma gut is gonnae shoo hoo hoo hoo, A feckit a cannae sing:
http://www.youtube.com/watch?v=vtUAyB5EUb8&feature=fvst
Hail Hail
Finn
14 hour shift yesterday so too tired to get on cqn
did I miss much?
Blantyretin…Naw nothing much…Just what we have all been saying for months….
HH
Finn
.
Ex-chairman questions Rangers owner Craig Whyte’s strategy
Former Rangers chairman Alastair Johnston has questioned current club owner Craig Whyte’s decision to edge Rangers towards administration.
In an interview with BBC Scotland, Johnston, part of the previous Ibrox hierarchy, queried Whyte’s strategy.
He said: “Mr Whyte went in to this circumstance [buying the club] knowing full well the ramifications of the tax [case] but chose to do it anyway.
“What do you know now, Mr Whyte, that you did not know before you bought it?”
Rangers filed legal papers at the Court of Session on Monday to appoint administrators before its £49m tax dispute with HMRC has been decided upon.
The reigning Scottish Premier League champions has 10 days to decide if it should appoint administrators to run the club, at which point it would be deducted 10 points from its league tally.
Use accessible player and disable flyout menus
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Owner Craig Whyte: Rangers will emerge “fitter and stronger”
In a statement on the club’s website, Whyte said: “What is of paramount importance is the long-term security, survival and prosperity of this great football club” and added that Rangers would emerge from the turmoil “fitter and stronger”.
Johnston chaired the independent board committee, created by Rangers to assess potential buyers of the club from Sir David Murray, who was keen to sell after more than 20 years at the helm and whose Murray International business empire was feeling the effects of the recession.
“We were somewhat entitled to the view that who carried the coffin to the graveyard, if you will, was going to be important with respect to how they might benefit from that scenario,” Johnston told Sportsound.
“For whatever else he is, his expertise is in distressed companies and making them survive, or not survive, to his benefit.
“We were entitled to take the view that administration would be on his agenda and that he would be the principal beneficiary of such a process.
“What I would say [to Whyte] is, ‘what is it you missed in due diligence that would have indicated that you are in situation that you did not anticipate?’
Continue reading the main story
“
For Mr Whyte to say we were not actively working on the long-term survivability of Rangers is a function of naivety
”
Alastair Johnston
Former Rangers chairman
“‘And what is it that you have or have not done that may or may not have made a difference under your stewardship?’
“The bottom line is that he spent a vast amount of time studying this tax case, a lot more than he did on operating issues like cash flow.
“He had a wealth of advice on the tax case, so only he knows what his agenda was at that point in time.”
Johnston was the club chairman when Whyte bought out Sir David Murray for £1 and cleared the £18m debt owed to Lloyds Bank.
And he bristled at comments by Whyte that the previous regime did not “step up to the plate” and that it “not only failed to prevent Rangers being engulfed by our current problems but chose not to invest their money to help put it right”.
He added: “The Rangers board had alternatives that they were working on which both the bank and Murray International did not like.
“David Murray really thought he had done a great job by allowing the loan to Rangers from Lloyds to be non-recourse, which means the holding company, David Murray, did not have any liability to the debt.
“This was consistent with what had happened several years ago when the debt ran up to £70m-£80m, at which point David Murray underwrote a share subscription and brought the debt down to manageable levels again.
“There was always the sense within the Rangers board that David Murray was going to do that again.”
The difference this time, though, he said, was that Murray International was struggling. And the backdrop to all of this was the hardening of the bank’s attitude towards its debtors.
“Lloyds knew that David Murray’s business was starting to go in to debt by £800m-900m.
Sir David Murray was keen to end his lengthy chairmanship of Rangers
“I have all the files, all the presentations I made to the bank and I will one day produce them all. The amount of money that Rangers owed Lloyds Bank was about 3% of the total debt that Lloyds had with Murray International.
“All we wanted them to do was to migrate that debt into the Murray balance sheet so it would move from £800m to £830m.
“Why the bank wouldn’t do that, to avoid all the negative publicity, I still don’t know.
“When Craig Whyte came along, these discussions were put on hold until we figured out whether Craig Whyte was for real.
“The bank didn’t believe it at first and then, when they saw the £18m coming and they realised it was a better way of getting out of it, they forced it through.
“The bottom line is that if Mr Whyte’s deal had not transpired, that [the transfer of debt to Murray] was the agenda.
“It would have been a win-win situation for everybody involved.
“So for Mr Whyte to say we were not actively working on the long-term survivability of Rangers is a function of naivety.”
Johnston’s view is that Whyte’s move at the Court of Session is to sound out the position of HMRC or Ticketus, the company that has loaned Rangers £24m in return for future season ticket revenue.
He said: “He is indicating that he is willing to help salvage the situation if HMRC come to the party. But we all know HMRC are not going to walk away with nothing.
“HMRC saw this coming. HMRC are not stupid. HMRC will certainly have been dealing on a confrontational basis with Mr Whyte, recognising that they know each other from previous experience.
Continue reading the main story
“
The only outside entity that actually has a right of recourse if Mr Whyte defaulted on any of his commitments, is Murray
”
Former Rangers chairman
“I think he is sending a message out that he means business – who is going to blink first?
“I think also he is sending a message to the fans in terms of trying to gauge exactly their real reaction to this event if it were to happen.
“Having basically torched any independent board or any independent voices, there are plenty of people looking after the interests of Craig Whyte, of HMRC, of Murray International or Ticketus, but I wonder who is looking after the interests of Rangers Football Club.
“While the events of today were predictable, it’s still a shocking experience.”
When asked for his opinion on how the club’s predicament would affect Sir David Murray’s legacy, Johnston replied: “It is seriously jeopardised, for sure.”
But he revealed that under the terms of the sale of the club to Whyte, the steel magnate could, theoretically, return as club owner.
“One of the avenues that could be pursued – and I wouldn’t suggest it with any degree of confidence because it will take substantive effort and money – is that, in the terms of the sales purchase agreement (SPA), the only outside entity that actually has a right of recourse if Mr Whyte defaulted on any of his commitments, is Murray.
“That won’t be easy because the language is a little fluid and flexible.
“But there is a suggestion that a lot of things could be unwound if Murray International chose to look at the SPA, take some action and and see how far they went.
“If David were to do that, I think it would help the perception of his legacy.
“In practice, it would be a long struggle.
“Keep in mind, there is no appetite by David to do this and, given his destiny over his wealth is still under the strong jurisdiction of Lloyds Bank, I can’t imagine Lloyds saying, ‘David, we’ll allow you to get Rangers back’.
“That could put them in the same position they thought they had escaped from.”
Summa
Rangers said: “If approved by creditors within a month, [this] would minimise any points deduction and enable the club to participate in European football next season.”
Got that from the FT, doncha know.
Participate in European football next season?
Hello. Mr Regan. You need to put in a wee call and ask this crazy club to stop making a mockery of Scottish football.
hamiltontim says:
13 February, 2012 at 21:58
yogi
I read your initial post. Clearly grammar, spelling and syntax has improved since school :-))
~~~~~~~~~~~~~~~~~~~~~~~~~~~
Have,surely.
Have some of yur own medicine,/
Course,that would have been more impressive without the typo.
D’OH!!!!!!!!!
CW :yesterday all my trouble seems so far away……….
aaaaaaah celtic, we love you really , it’s all just been a bit of banter, come on , you wouldn’t want to miss all the fun, it just wouldn’t be the same.
Paul67 (and mods)
thanks for all the work, I get up to celtic 4-5 times a year, I bump into a celt once in a blue moon, I work with a man city, everton, liverpool and a St Johnstone fan , I used to buy the record. Nobody in the establishment listened to the blog and everything you’ve said has been shown to be valid. Unlike meself, people know who you are and a lot of this was during the time when lenniestein was getting threats to his life. Your part of the lue which keeps this diaspora together.
Good morning fellow Celts from clear blue skies with birds singing in North Hampshire
Isn’t life just wonderful?
HH
M
.
Via Twitter..Unconfirmed..
Rangers clash with Killie in doubt over fears they can’t afford to police it. Money owed to police and assurances required.
Summa
Has the Darnel gone in to liquidation yet?
A dark,cloudy, but mild morning here in North Ayrshire.
ah jebus. I’ve been working on my spelling so much and I go and screw that one up
lue = glue
Good morning CQNers.
Reviewing the aftermath of Whyte’s decision it seems incredible how ignorant Rangers supporters and large swathes of the media actually are about it.
Through all the words I’ve read or heard I think the following could be the most important.
Neil Doncaster Speaking to the BBC on Friday, SPL chief executive Neil Doncaster insisted that the rules would be applied no matter which team became involved in an “insolvency event”.
He said: “We have a rule book and that needs to be applied whoever it may be. We apply the rules without fear nor favour.
“The whole basis of a financial fair play set of rules is to ensure that if there is a sporting advantage that has been obtained, you can address that through some sort of sporting sanction.”
We’ll continue to rely on our army of experts who’ll monitoring progress and keep us briefed on the moves by the various players in what is certainly going to be a devious endgame.
Summa of Sammi…. says:
14 February, 2012 at 07:22
What a laff…..and they will need extra police
not because they expect larger than usual crowds
because they expect an angrier than usual crowd
lots of very angry peepul realising they have been duped
= serious risk of violent behaviour
it doesn’t take much for thems to resort to violence
unfortunately
be safe fholks
HH
M
Morning the Solvent Tims!
Amadeus is in such a good mood, he is going to make the missus a Valentine’s day meal (although the phone-ins will have to suffice in lieu of romantic music).
Things can only get better!
Hail hail to all those Tims no longer around to enjoy this moment.
CQN – yesterday’s news last week!
now talking about currants on sky -breakfast
“is it really happening?” they ask
oh aye!
and why do all the ‘fans’ outside poundland have faces covered?
are they really that ugly?
HH
M
Morning bhoys, from a very quiet airdrie,lol so its 75 mill not 49 easy mistake to make. in for another busy day Paul. Enjoy it bhoys. hard shift and im off to bed. ill read back laugh later. I did hear the usual denial on the radio though. cowards.lol
KLV
Good morning!
http://www.youtube.com/watch?v=dHTPdbpogRE
Might be worth a trip to Greyskull to watch the huns staring tearfully at their bricks before they get sold off.
You really must believe ussssssss………
Definitely a wee bit worried that the longer this lot flounder about in the water shouting help help, hun overboard, somebody is gonna throw them a lifejacket, possibly a do gooder government type person eyeing the massive hun vote if they pull it off, please big man no, ideally, they’ll get machined gunned by the sub that sank them. The champagne is in the fridge but on hold until I see the disappearance of the last remaining air bubbles.
MWD:
If you are out there mate please try and post pic before 08:00…
Keep the Faith!
Hail Hail!
Top of the morning to you all from a frost-free, but dull Fife.
Nothing dull about the news though, and it will be interesting to see how the dice falls.
I have mixed emotions about the unfolding scene.
Happy that the Huns are getting their comeuppance and sad that some old Celtic supporters I knew didn’t live to see it. Good people who railed against the cheats and the unfairness of the game in Scotland that deferred to the arrogant Ibrox bosses.
As for the rubbish being spouted about we need them. I remember being at an RBS Christmas dinner in the Balmoral in 1993 when everyone knew Celtic were in financial difficulties.
My abiding memory of the massed ranks of branch managers at 50-100 or so tables of 12 in a huge dining room that night was of unbridled hilarity at our plight. It was as if each person entering the hotel had been force-fed a large dose of laughing gas and a pint of champagne.
Our impending demise was a cause of great joy to the big majority of the business community in Scotland because it reinforced their superiority complex and confirmed the view that we were Fenian upstarts who were about to be put in our place.
Feel sorry for them? Need them for the sake of Scottish football? Never heard it then, and don’t want to hear it now. H. H.