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Fit & Proper test opens Pandora’s Box

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I hear the SFA had asked for clarification on Craig Whyte’s alleged disqualification as a director, without getting confirmation one way or another, since the issue was initially brought to their attention by the landmark BBC documentary, Rangers: The Inside Story.  Rangers disclosure to the Plus Exchange (where the club’s shares are traded) on Wednesday that this specific BBC allegation was correct, was the information the SFA needed before they were in a position to act and apply a Fit and Proper Person (FPP) test to Whyte.

Dramatic though it sounds, failing a FPP test, in itself, is only likely to cause superficial damage to a club or its owner.  An owner would need to resign as a director but he could allow the other directors to continue running the business, or he could appoint a proxy to take control of the business, which is often the way controllers run football clubs anyway.

What is of more interest, however, are matters likely to be disclosed as part of the SFA investigation.  The Association would require Mr Whyte to explain what he did to be barred from holding a directorship for seven years, something the BBC lawyers would be able to question Whyte on in the witness box, should he actually sue, instead of repeatedly threatening to do so.

Of most interest to the SFA will be Rangers financial submission for their Uefa licence, which enabled the club to be nominated as Scotland’s participants in this season’s Champions League.  A condition of participation in Uefa competitions is that no debts to tax authorities due on 31 December the preceding year remains unpaid on 31 March.

In September HM Revenue and Customs gained permission from the court to freeze £2.3m of Rangers money in connection with an unpaid tax bill.  The principle element of this bill has not been disputed by Rangers.  The SFA will now be keen to establish if any part of this bill was in connection to taxes due in prior to 31 December 2010.  If it was, Celtic were entitled to be Scotland’s Champions League representatives, when overcoming the likes of Malmo stood between them and a £15m pay-day.

This is a legal minefield for the SFA chief exec, Stewart Regan, who has my sympathy. Things are about to become interesting.

While we are on the subject of that £2.3m tax bill, HM Revenue and Customs are due to get their hands on the cash after Friday next week, the last day Rangers are able to dispute the debt. If Rangers enter administration prior to that date, the cash would revert to the administrator and the club’s secured creditors would be entitled to it.

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  1. Paddy Gallagher on

    Paddy Gallagher says:

     

     

    2 December, 2011 at 12:15

     

     

    Seems somebody was getting stuck in Right enough, just wanted to check back though, just to be sure..

     

    DUSHANBE BILLYBHOY says:

     

     

    30 November, 2011 at 19:49

     

     

    Beamishismypint says:

     

    30 November, 2011 at 19:47

     

    Spanish commentators feel Celtic very weak in defence!!!!!

     

     

    THEY ARE RIGHT! DAN & F.F….THESE TWO CLOWNS ARE TICKING TIME BOMBS. HEARTS IN THE MOUTH ANY TIME BALL GETS NEAR OUR GOAL

     

     

    DUSHANBE BILLYBHOY says:

     

     

    30 November, 2011 at 19:53

     

     

    THE “MATTRESS MAKERS” PUT US TO BED. THEY ARE 10TH IN SPANISH LEAGUE. SAYS IT ALL FOR ME HOW FAR WE HAVE FALLEN IN TERMS OF EXPECTATION. WE HAVE GOT LUCKY IN THE RESULT IN THE OTHER GROUP GAME

     

     

    corrib04 is Neil Lennon says:

     

     

    30 November, 2011 at 19:55

     

     

    DUSHANBE BILLYBHOY

     

     

    Completely disagree.

     

    The Spanish league is light years ahead in quality my friend.

     

    I think credit where credit is due. We tried hard against superior opposition and just came up short.

     

     

    Paddy Gallagher says:

     

     

    30 November, 2011 at 19:56

     

     

    DUSHANBE BILLYBHOY says:

     

     

    30 November, 2011 at 19:53

     

     

    It’s all in the name.

     

     

     

    share

  2. The Honest Mistake says:

     

    2 December, 2011 at 12:04

     

     

    WGS being given the Celtic job was like, as if the huns making Neil Simpson their manager! IMO!

     

     

    I often wonder what goes on on your head to make you form opinions like that. Can you give any reasoning as to how you hold that opinion?

     

    ………………………………………………………………………………………………………………………………

     

    The reason is simple….WGS was detested by the Celtic support who were old enough to suffer his, insidious antics on the pitch for, Aberdeen when playing against us!

     

     

    The same goes for Simpson who was detested by the huns.

     

     

    The underlying concern for me in all of this is that, the people who appointed WGS and, leaked the story to the LL on black-sunday of all days, clearly didn’t/don’t know their history ?

  3. From Garngad to Croy I am Neil Lennon. on

    ‘The SFA will now be keen to establish’

     

     

     

    No chance !

     

     

    Move along now ‘Timmy’ nothing to see here !

  4. KevJungle – Put the Green Brigade into a new JUNGLE says:

     

    2 December, 2011 at 12:18

     

     

    If you can DETEST a man for playing football,your tolerance levels

     

    are a tad low.

     

    The mhan won us 3 leagues in a row.

  5. The Honest Mistake on

    KevJungle – Put the Green Brigade into a new JUNGLE 2 December, 2011 at 12:25:

     

    OK I see where you’re going now. Disagree with the analogy though.

     

    Neil Simpson managing rangers would be more like John Greig managing Celtic.

  6. Hi Paul,

     

     

    ”Dramatic though it sounds, failing a FPP test, in itself, is only likely to cause superficial damage to a club or its owner. An owner would need to resign as a director but he could allow the other directors to continue running the business, or he could appoint a proxy to take day-to-day control of the business, which is often the way controllers run football clubs anyway.”

     

     

    That does surprise me in light of the fact that the FPP is normally quoted in regard to Club ownership.

     

     

    HOWEVAH

     

     

    Having read through the “Rules” it does seem to make specific reference to Directors and anyway there’s enough ambiguity in the guidelines to allow the masters of equivocation to drive their horse and cart through the indefinite directives.

     

     

    Rule 10 is interesting though, a person can’t be a Director of a Football Club if…….

     

     

    ”…….he has been a director of a club in membership of any National Association which has undergone an insolvency event within the five year period preceding the said insolvency event.”

     

     

    It means that the MBB, McBain, JG, SDM et al will not be Directors of NewR@ngers F.C. it wil be heartening news for our bluenose cousins as they make their way to the local Derby at Shawfields.

     

     

    Hail! Hail!

  7. Good luck to all the Fat Bhoys slim club. First group over the top into the Griffin now. Other lightweights to join as day progresses,early evening slur and late night staggers to its end.

     

    Keep us posted Bhoys.

  8. Paul67 – There is more to come here. Viewing the timings in the public domain Re the “wee” tax case it is a real stretch of the imagination to believe they were not aware prior to the deadline.

     

     

    This is not something the SFA can play fast and loose with as UEFA are watching and they have wide ranging sanctions that can be applied to the national body should a licence be proven to be awarded incorrectly and the body had a hand in this either knowingly or have not asked the correct questions.

     

     

    Tick Tock

  9. The Honest Mistake says:

     

    2 December, 2011 at 12:33

     

     

    OK I see where you’re going now. Disagree with the analogy though.

     

    Neil Simpson managing rangers would be more like John Greig managing Celtic.

     

    ………………………………………………………………………………………………………………………………..

     

    Exactly what goes through your mind when you come to these conclusions ?

     

     

    Just kidding!

     

     

    Hail! Hail!

  10. Paul67, if the MBB brings in a proxy Bear MD, he will have to pay him, won’t he?

     

     

    The MBB isn’t keen on that kind of carry on. Plus, whom would he ask? Who would take that gig on?

     

     

    I know you won’t really tell us, but are you thinking that the MBB is not too far away from concluding that cutting his losses an filing for insolvency might be the better option?

     

     

    More hassle, but more cash or less hassle and less and less cash?

     

     

    It’s a tough one. I think he seems like the sort of chap who doesn’t mind a bit of hassle if there seems to be cash in it for him. Who wants a quiet life, after all?

  11. Garngad to Croy, we’ll see.

     

     

    SFFS, aye.

     

     

    Lennybhoy, there are several plates spinning right now.

     

     

    KevJungle, erm..

     

     

    Chairbhoy, there is a test case in England. FFP failure is not a showstopper.

     

     

    Celtic_First, indeed.

  12. Chairbhoy – I am led to believe the ambiguity in the rules regarding this clause is because passing the “fit and proper” test is actually a condition of association membership therefore sanctions for failing are not listed in the rules as they shouldn’t have anyone in that position to have the rules applied to!

     

     

    That leaves them with 2 options. Whyte resigns and appoints a proxy until whenever next year it is the 5 year period is up OR Rangers’ membership of the association is declared invalid.

     

     

    No brainer really….Whyte will have to resign for a few months.

  13. Paul67,

     

     

    so we are heading for a Floating Charge Friday next week?

     

     

    Can just hear that tripping of Jim White’s tongue on SSN…:)

  14. Sandman Is Neil Lennon on

    KevJungle – Put the Green Brigade into a new JUNGLE says:

     

    2 December, 2011 at 12:25

     

     

    The Honest Mistake says:

     

    2 December, 2011 at 12:04

     

     

    WGS being given the Celtic job was like, as if the huns making Neil Simpson their manager! IMO!

     

     

    I often wonder what goes on on your head to make you form opinions like that. Can you give any reasoning as to how you hold that opinion?

     

    ………………………………………………………………………………………………………………………………

     

    The reason is simple….WGS was detested by the Celtic support who were old enough to suffer his, insidious antics on the pitch for, Aberdeen when playing against us!

     

     

    The same goes for Simpson who was detested by the huns.

     

     

    The underlying concern for me in all of this is that, the people who appointed WGS and, leaked the story to the LL on black-sunday of all days, clearly didn’t/don’t know their history ?

     

     

    =======================================

     

     

    Just two words for you, mate: grow up.

  15. The Honest Mistake on

    Celtic_First 2 December, 2011 at 12:39:

     

    I think the whole point of Craig Whyte is that he isn’t afraid to take the hit, the disqualifictaion doesn’t seem like a problem to him. If the BBC is to be believed he continued trading through his disqualification. Now he needs to find a likeminded person to take a similar hit. Oh and he’ll need to pay to find this person. Meanwhile his margin disappears.

  16. Celtic_First @ 12:39,

     

     

    …… if the MBB brings in a proxy Bear MD, he will have to pay him, won’t he?”

     

     

    Can a proxy Bear bring in a Proxy Bear?

     

     

    ANYWAYs

     

     

    The Sud African has the cash IMO!

     

     

    TheThirdManCSC

  17. Patria O Muerte on

    Hi Folks

     

     

    I have a spare train ticket, return, for dundee on Sundays Tannadice match, the early one, 9.38 am in at 11.12 am back on the 4.43pm, 1 1/2 hour journeys both ways no changes.

     

     

    If anyone is interested let me know.

     

     

    Not looking for cash just want it to go to someone that can use it.

     

     

    Cheers.

     

     

    POM

  18. Exciting time for Celtic (still involved in 4 major tournaments).

     

     

    Exiting times for rANGERs (stage left).

  19. The Honest Mistake on

    Chairbhoy 2 December, 2011 at 12:45:

     

    The Sud African Hector would love to see him putting money into rangers. They’d say thank you very much and throw away the key.

  20. a this mess finally gets an airing in the MSM the question is what topics can Waddell, Keevins and English possibly invent to disguise their Sunday columns and avoid discussing the what was previously undiscussable (to them and their editors.)?

     

     

    Surely this time they have no option but to lead.

     

     

    However they’ll no attempt to obfuscate with new SFA procedures, Celtic being the driving force behind them, clubs getting used to the new changes; Kayal’s ducking will no doubt get an honourable lead and will the enigma that is Sammi and maybe even Friday night footie and bars in stadia. maybe even a go at MON.

     

     

    Notwithstanding, this week though I think the chicken has truly come home to roost!

  21. Paul 67

     

     

    “An owner would need to resign as a director but he could allow the other directors to continue running the business, or he could appoint a proxy to take control of the business, which is often the way controllers run football clubs anyway.”

     

    ………………………………………………………………………………………………………………………………..

     

    Does this mean that PL is a proxy for our, absentee landlord owner ?

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