Hector on the ball at Ibrox


It is scarcely credible that directors of newco Rangers have failed to maintain National Insurance (and, I presume, PAYE) obligations to HMRC.  The arrival of a seven day winding-up notice from HRMC last week brings serious consequences for the listed company, who have now required three short-term loans for over the last two months.

This payment is due on the same date every month, it will not be subject to dispute and failure to maintain payments brings the club into dispute with the SPFL, who six weeks ago deducted fellow Championship club, Livingston, five points and fined them £10k, for non-compliance of the league’s tax and reporting rules, which Neil Doncaster said were “an integral part of maintaining a fair league competition”.

The club already have an outstanding charge from the SFA over their failure to stick to a written agreement over the shareholding of Newcastle United owner Mike Ashley.  A five point penalty would bring them within three points of fifth-placed Falkirk, who are outside the play-off spots but have won six of their last seven games, pay their bills and will not be subject to a player fire-sale this month.

While newco are clearly short of cash their outlook is not as bleak as it may appear.  They have assets they should be able to sell quickly in order to raise cash, specifically players, Murray Park and Ibrox.  Rangers went into administration as their liabilities were considerably higher than the value of liquid assets, this is not the case with newco, whose liquid assets will be worth considerably more than immediate liabilities.

In short, an administrator will be able to sell players, Murray Park, Ibrox, or all three, and pay all creditors, so there is no reason the directors should not do so themselves.

There are a couple of observations worth noting:

I’ve never known a company to get to the stage of receiving a 7 day winding-up notice from HMRC which didn’t have many more stressed creditors.

National Insurance and PAYE for wages pad up to 30 November are due at HMRC on Wednesday 7 January.  It’s unclear if the £500k loan from Sandy Easdale is sufficient to cover this payment.

Lots likely to happen over the coming weeks but keen an eye on the financial fundamentals: it will take tens of millions of pounds to keep this club afloat over the next few years, even on a very limited football budget.

No one has explained a scenario under which this club is viable. This story only ends one way.

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  1. squire danaher on




    12:10 on 5 January, 2015



    Keep buying players from Israeli agent cos we like him.



    I’m saying nothing else about it.

  2. pedrocaravanachio67 on




    11:52 on 5 January, 2015


    Kev J



    Since you’ve made it your life’s work to berate Celtic fans who actually go to support Celtic which includes me, I would like to thank you for your refreshing honesty in typing the most accurate description – in two words – in your post @ 11:37 that will ever appear on CQN ……… “daftie me”.





    Don’t let him kid u, he does go, but takes it as a freebie from his brother.




  3. traditionalist88 on



    12:27 on


    5 January, 2015





    That league may not be the strongest but that is no reflection on any individual player and certainly not a reason not to sign someone. Nor should any past failures be on a potential new signings record – not his fault!



    He should be judged on his performances alone.




  4. What is the Stars on

    Have they not suffered enough



    When will Peter Lawwell and his opus dei cohorts who run Scottish Football leave the Peoples Dignified Club of Ibrox (continuity branch) in peace

  5. Paul 67..


    As first days back at work go…its been prtty slow…. Thanks for brightening up an otherwise dull day.



    Anyhoo… lets strive for improvement at our end. Thats of more importance to me !

  6. “I’ve never known a company to get to the stage of receiving a 7 day winding-up notice from HMRC which didn’t have many more stressed creditors.”



    Good point Paul. Surely those running the club have enough sense to prioritise payments to Hector – so who else isn’t getting paid?



    Wonder if the Council are looking for business rates? What about power bills?

  7. lawwellsacountant on

    Why has this us banker been lured into possibly buying this mental case of a company,has no one told him it,s up shit creek and it,s so called fans are the scum of the planet








  8. traditionalist88 on

    ‘Their outlook is not as bleak as it may appear’ ….



    ‘Keep an eye on the fundamentals – this story only ends one way’





    Paraphrasing but isn’t the article a bit contradictory???




  9. When a front 3 of Johnny Hayes, Adam Rooney, and Niall Mcginn , start out-gunning what we have at our disposal…


    Celtic, its time to up the ante !

  10. Article from http://www.realbusiness.co.uk



    Scottish football team Rangers has revealed what it describes as a “short-term credit facility” and moved to clarify the situation regarding a bid from American businessman Robert Sarver.





    Existing shareholder Alexander Easdale is providing the £500,000 injection of capital, to be used for “general working capital purposes” in the coming days. The amount is being made available on a fee and interest-free basis – and secured against the sale of a player.



    At the same time, the Glasgow-based team has confirmed an approach from Sarver, who owns US basketball team the Phoenix Suns, and stated that the communication “may or may not” lead to a reported £18m offer being made.



    Rangers, which has struggled financially during the last five years, has frequently used its stock market listing to raise money for player acquisitions. In August, the club outlined plans to raise up to £4m through the issue of new shares at 20p each.



    Its financial strife came to a head in 2012 when it was forced to enter insolvency, a state of affairs that meant the team had to join the lowest professional Scottish league and work its way back up. When it entered administration in February 2012, Rangers had debts of £134m.



    Under the terms of the Alternative Investment Market (AIM), on which Rangers is listed, Sarver now has until 2 February 2015 at 5pm to announce a “firm intention” to make a bid for the club – or state that he does not wish to.



    This deadline will “cease to apply” if a different party makes an offer in the interim period, at which stage the American sports businessman will have to state his intentions.



    Rangers currently sits second in the Scottish Championship, behind Edinburgh club Hearts. The player move that is believed to be securing the loan is for Lewis Macleod, who was sold to London club Brentford when the transfer window opened on 2 January.



    In a statement Rangers said: “Under the AIM Rules for Companies, the facility is a related party transaction under Rule 13 of the AIM Rules.



    “The directors of Rangers, having taken advice from their nominated advisor, WH Ireland, believe that the terms of the facility are fair and reasonable as far as shareholders are concerned.”

  11. GlassTwoThirdsFull on

    “No one has explained a scenario under which this club is viable. This story only ends one way.”






    You obviously don’t listen to Richard Wilson or Roddy Forsyth! Well, they haven’t exactly “explained” it as such!

  12. squire danaher on

    Following text sent to BBC Scotland Sport at 80295





    FAO Liam McLeod



    Is there a story to be had in investigating the apparent discrepancy in how The Rangers International FC have been treated of late by the SPFL regarding dealings with HMRC and paying their tax and NI, compared to the recent fine and points deduction imposed on Livingston FC?



    I ask after reading C McLaughlin’s piece online.






    Squire Danaher

  13. philvisreturns on

    Angry taxman calls


    But fear not, look – another


    Billionaire tycoon.




  14. ruggygman, always a tough day at work.



    Gordon_J, utterly incredible that HMRC were not paid given the potential points penalty. The other creditors will have most to be alert today.



    beatbhoy, I’m sure he knows too well, despite public pronouncements.



    traditionalist88, there are enough assets to keep the show on the road until the end of the season. Beyond that is another story.



    GlassTwoThirdsFull, aye.

  15. Roddy Forsyth from todays Torygraph



    You can picture Roddy in his apron and brogues typing this article



    In any case, time is now the pressing enemy of all the contending parties. If the club runs out of cash and is forced to enter administration for the second time in three years Rangers will be consigned to a fourth successive season in the lower leagues – a prospect feared by the Scottish football authorities as well as other clubs who would benefit financially from their return to the top tier, as a consequence of better sponsorship and broadcast deals than are currently available.


    Rangers are again teetering on the edge of a financial precipice as the principal personalities jostle on the brink to establish who will be thrust over to the rocks below – and who will be left standing to inherit whatever remains of this once immensely proud and respected club.




  16. surley they can`t be deducted points, I mean it`s the company who never paid HMRC on time not the club!!

  17. traditionalist88 on




    Thanks- reread the article and the words ‘immediate liabilities’ confirmed the meaning.




  18. GlassTwoThirdsFull on

    Dear Squire Daniher,


    There probably is a story there, but remember I work for the BBC.


    PS They have been punished enough already.

  19. squire danaher on




    12:44 on 5 January, 2015



    It brings tears to the eyes reading of “whatever remains of this once immensely proud and respected club.”



    Tears of laughter.

  20. bournesouprecipe on

    “To lose one club may be regarded as a misfortune, to lose the replacement looks like carelessness.”



    Oscar Wilde CSC

  21. Other than rates and taxes I’m not sure Sevco will have many other creditors.



    I can’t see many businesses allowing them a line of credit.

  22. squire danaher


    12:48 on


    5 January, 2015



    Indeed side splitting at that guff



    Sadly Roddy believes every word……………………..

  23. GlassTwoThirdsFull on



    I still remember Forsyth on Five Live in early March 2012 getting all excited and saying they would come out of administration by the end of that month and be able to play in Europe the following season. How did that pan out?

  24. Neil canamalar Lennon hunskelper extrordinaire on




    12:18 on 5 January, 2015


    If it’s not about fair play, honesty and sporting integrity,



    What’s it all about, Alfie?



    What he said

  25. Anyone, have any insight in to whether Forrest, Denayer or Lustig will feature tonight.



    Nothing other than a comfortable victory by 2 or 3 goals will do.


    I mean, Ronny what is your understanding of “progress” ?

  26. ruggygman (12:34): “When a front 3 of Johnny Hayes, Adam Rooney, and Niall Mcginn , start out-gunning what we have at our disposal… Celtic, its time to up the ante !”



    It isn’t their attacking play(ers) that has been pivotal in Aberdeen’s recent success, it is their defending. The last team to score a league goal against Aberdeen (other than Celtic) was Hamilton Accies on October 17th! The Dons have won 9 of their last 10 SPL games, with the 1-2 defeat to Celtic being the only time their defence was breached. However, five of those nine wins were by a 1-0 scoreline.



    Run your cursor along the “Last 10 games” colour bars here…



  27. thehuddlehound on




    Any chance that the King and the 3 Bears are in this for a quick buck? If they somehow knew about the Sarver offer for a few days?



    He has until Feb 2nd to formalise his offer, but it is just becoming public knowledge now, though some people must have known it was already on the table.



    If there’s a whiff of it being a genuine offer, then the interval between the offer being made and then becoming public would be a good time to buy a chunk of low priced shares.



    Just saying.

  28. tomtheleedstim on

    Paul67 – you’re working on the presumption that they own these assets and can sell them?


    I thought that the claim against some of them would stop any sale until the deeds are located.

  29. Motherwell,dire.Aberdeen,a notch above.If not for one of the worst penalty decisions ever witnessed,courtesy of Golum,who knows what would have happened in the last 5 minutes.


    Dundee U doing what they normally do,drop points,Aberdeen will follow suit shortly,the SMSM bumming up a very ordinary side,in the slavering hope they can beat us.


    Cue panic merchants on here trying to shoot me down.


    I care not a jot.4 IAR on its way.

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