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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This weekends events started by Doncaster have been shameful, succinctly summed up in this tweet below, time for the top clubs in Scottish football to speak out then act
TheTributeAct @TheTributeAct 54s54 seconds ago
For the continuation of an unsustainable ethos which almost killed professional football in Scotland. It’s just corrupt madness. (2/2)
TheTributeAct @TheTributeAct 2m2 minutes ago
The rest of the game has quietly gone about getting its house in order while the SFA & SPFL have done nothing but try to pave a way (1/2)
Strange how Mike Ashley didnt provide the latest loan
Does this mean Mike would be quite happy to see sevco fold?
What would Mike gain if Sevco folded, (apart from the security on his earlier loan)
Fit and proper!!!
Circling vultures poo
From the skies over Govan
A Hoopy New Year
(thumbsup)
It never ceases to amaze me that those who repeatedly assert that the SPFL will be so much better off if/when Thems return appear to fail to factor in that the laughing stock that Thems have made of themselves and , by association , Scottish football has , in all probability , rendered the SPFL pretty much toxic from an investment point of view.
The mad huns never learn, my mate who’s a zombie just sent me a link for a sevCo forum saying the American zillionaire is ready to put in £80,000,000 hahaha. A guy nobody’s heard of who’s Proberly never set foot in Glasgow is ready to pump £80m into the zombies and the huns by it.
Desperadoes HH
thehuddlehound
12:53 on 5 January, 2015
‘All,
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?’
###
Unlikely.
I doubt Sarver’s offer will actually materialise.
In the meantime though his ‘interest’ has pushed up the price the three bears and Billy Liar will have to pay if they are forced to offer for the whole thing.
His ‘interest’ might also help pacify creditors in the short term.
Does Sarver have any history with Ashley?
Paul67 – is it likely that they will be punished by the league?
You are spot on regards the lack.of explainin how this thing called rangers is viable short of someone sinking many £tensofmillions in to it and never seeing a penny back. And that is just to stabilise it.
Wee Neil Doncaster
With the Eddie Munster hair
Updates his CV
(thumbsup)
BigChipsUK – Honesty, integrity and fair play since 1887
12:52 on
5 January, 2015
Nail on head post
Not conceding goals is the way league titles are won
NL had a superb defensive record last season
If the trip to tenerife sees a change in team philosophy which balances both sides of the game equally, then i believe we will the title comfortably, if Ronny Delia continues to ignore the defensive side of team tactics and shape, we are certainly going to see a tight fight for the title
It would have been so much better if ole Bobby Sarver had been from Tombstone, Arizona.
Bigchipsuk 12:52
That’s exactly why they are the real threat. Although Dundee Utd are much more free-flowing and have loads of goals in them, they are soft at the back. Aberdeen are not.
tamrabam
12:56 on 5 January, 2015
You answered your own question mate, the security is worth more than £3m he can’t lose hh
Milan tickets purchased £1.50 charge per ticket , all done quickly and without problems.
No complaints from me
Neil.
Some of what he said.
It’s not ‘stupidity’ to challenge their version of ‘history’ on here, you know, nuggets like ‘relegated’ ‘came out of administration’, you know the rest.
If it is, why say ‘the Ibrox club’, just call them what they want to be called, Rangers.
“In a day of high drama at Ibrox the Rangers board is negotiating under severe pressure to save the club from financial meltdown for the second time in three years.”
:oD))))
RobinBhoy
12:47 on 5 January, 2015
Something everyone should sign!
http://www.change.org/p/neil-doncaster-spfl-step-down-from-his-job?recruiter=59202833&utm_campaign=signature_receipt&utm_medium=email&utm_source=share_petition
……………………………………
Petition signed.
HH
Anybody got there letter in for the semi yet ????
Kdc remembering when he looked forward to transfer windows for some wild speculation, excitement and Ross Hall updates.
All killed stone dead by reading the dementors on here nowadays, jeebus
Hunskelper
my (sarcastic) point entirely
Also, good excuse for an obvious joke!
RB
Signed
HH
Sorry, for Neil C.
petition signed
get it done!
I know fair play and sporting integrity and financial fair play can be scorned as moral snobbery by those who know the impact it would have on TRFC.
However in order to assure the gambling industry that they are not putting their customer’s right to an honest punt at risk by a bet on an SPFL club, then not observing sporting integrity could have unforeseen commercial consequences apart from supporters walking away from a dishonest game.
Next time you take a punt on any SPFL game ask the bookie if it’s a fair bet.
What assurances do you have?
An Tearmann
12:28 on
5 January, 2015
==================================
Mate, any chance you could ask the Mods on KDS why I was banned? genuinly no idea. My moniker was…… tic
Cheers
Roddy roddy, little toddy roddy.
You never did read insolvency for dummies that I sent you :(
Second administration, really?
beatbhoy – If it is, why say ‘the Ibrox club’, just call them what they want to be called, Rangers.
People in Carstairs want to be addressed as Emperor Napoleon. (thumbsup)
LENNONSPASSION
If yer about and still got those two tickets,I can put you in touch with a buyer. But it needs to be before 3pm,I hit my cot then!
Mail me,please,at
bmcuwp@gmail.com
and I’ll forward the details.
BigChipsUK
Listen, i agree 100% with you. Hard not to… when u’ve contained the facts within the link.
What McInnes has brought to Aberdeen is continuity / consistency.
Funnily, he too plays the modern 4-2-3-1 that alot of Celtic fans decry.
What is notable though, is that there pivatol striker Rooney, now has something like 18 goals for the season.
In Hayes and McGinn they not only have wide players that can chip in with goals, but hard working wide players that undertsand what is required from them in the wide area, playing 4-2-3-1
They have the likes of Ryan Jack, and Flood, who will ultimately do the dirty work in the middle, and Pawlett supporting the front players.
Its a simple model really… but important to put round pegs in round holes, and square pegs in square holes.
If you compare that to us… our wide left player all season has been Stokes… and without being negative towards him… he is a Striker in nature, and doesnt give our team the same defensive discipline that a Hayes or McGinn give Aberdeen.
Our wide right all season has been injured, just like he has been for 3 seasons, so as a replacement we’ve had to persevere with Callum McGregor…… who would you rather have right now.. Callum McGregor or Niall McGinn… its an easy one really.
So yeah, Aberdeen have shown a great defensive record.. But their attacking players are scoring also, and by n large they have marginally better players than most teams in the Scottish Premier… D.McInnes is utilising them all to their strengths… therefore it doesnt suprise me at all, that they are winning consistently 1 and 2 – Nil…. because, you know what. That is entirely reflective of what they are capable of. As a squad they don’t have the quality to be beating other teams 5 and 6 Nil…. but they are currently maximising their output with what they have at their disposal. And being consistent.
Us on the other hand…. well, its a bit Forrest Gump… a box of chocolates. Dont know if ur going to land a coffee cream, or a prailine truffle.
Philvis – you are way too cynical. This yank has seen something in the Govan basket case that no one else has.
And he must watch a lot of Disney sports films. We have all learned from them that to succeed you just need to believe.
Washed up football club in Glasgow, crumbling stadium, disillusioned fans….. The stage is set. When does Kevin ‘billy’ costner arrive?
Lionsroars67
‘Better sponsorship’
If I were a sponsor I would not touch this fraud.
I wonder how a sponsor would view the statement from doncaster
Which implies financial lunacy is ok in a league that has not yet applied any uefa ffp rules.
In short sponsors wont associate itself with criminality.
HH hny :-)
—————-
Cowiebhoy.
Thanks for posting that note from a hearts fan yesterday 20:43
:-)
HH
Kdc
I did post just after the window opened that Messi and Ronaldo had been spotted at Ross Hall, following Doncaster’s exhortation to Scottish clubs to spend, spend, spend.
Not as if you’ll have to pay it back or lose your history, or anything!
philvisreturns
Sevco haikus – nice to see a bit of culture return to the blog.
Happy New Year.
SPFL seek answers from Rangers over claims of late payment of tax
By Grant Russell
5 January 2015 13:08 GMT
Under scrutiny: The SPFL will ask Rangers for answers over possible non-payment of National Insurance.
The Scottish Professional Football League has sought clarity from Rangers over claims they have fallen behind on National Insurance payments.
STV understands the league were unaware of a potential winding-up order being issued by HM Revenue and Customs to the club.
SPFL rules require clubs to declare if they are more than 28 days behind on paying tax, within two days of a default occurring.
Known as a “default event” by the league, Rangers would be subject to an immediate registration embargo if it can be established the club have failed to pay on time.
Should it also be proven that Rangers failed to declare the event within two days, the club would also stand accused of a breach of SPFL rules.
Livingston were recently docked five points and fined £10,000 by the league after failing to disclose bonus payments made to players which were not subject to taxation.
HM Revenue and Customs declined to comment on the matter. Rangers were unavailable for comment at the time of publication.
A seven day warning letter is typically sent by HM Revenue and Customs prior to a winding-up order being issued.
STV estimates Rangers pay £140,000 per month in National Insurance, raised both from employee and employer contributions, based on salary information detailed in the latest company accounts.
The news comes on a day where Rangers were loaned £500,000 by Sandy Easdale, chairman of the club’s football board, to meet emergency working costs due “over the next few days”.
With the club struggling for cash and still seeking £8m of investment to cover bills for the next 12 months, various parties are vying for control.
On Monday morning Rangers confirmed a takeover approach has been received by Robert Sarver, the American owner of NBA team Phoenix Suns.
In a statement to the Stock Exchange, the company said Sarver has until 5pm on February 2 to formalise any offer.
Shortly after a stormy reception for the current board at the AGM of Rangers International Football Club plc in December, a consortium of businessmen moved to purchase 19% the company’s shares.
George Letham, Douglas Park and George Taylor were then joined by South African-based Dave King in snapping up shares, with the former director of the Rangers oldco becoming Rangers’ biggest single shareholder with 15%.
The balance of power on the board at Rangers currently resides with Mike Ashley, the owner of Newcastle United Football Club.
He owns just under nine per cent of the shares in Rangers International Football Club plc and was blocked on Christmas Eve by the Scottish FA from receiving approval to increase his shareholding to 29.9%.
Nevertheless, the club’s chief executive Derek Llambias is an appointee of the Sports Direct owner and Rangers chairman David Somers, together with non-executive director James Easdale, are sympathetic to Ashley’s manoeuvrings.
kdc
Speculation all knocked out if the support through experience
Couple of diddies on loan from Israeli League from our favourite agent is the height of expectations.
Sign decent players?? If we leave a light switched on we will go the same way as the Huns, don’t you know?
Of course now we have a title challenge, Operation Short Head will be dusted down from the dark days 2011.
And we know how that finished up.
ernie lynch
12:59 on 5 January, 2015
thehuddlehound
12:53 on 5 January, 2015
Someone, ( Greengo ? ) is possibly paying him to bump up the share price before they sell..?
An Tearmann
13:12 on
5 January, 2015
HNY to you my friend
Financial and sporting lunacy from Roddy with the brown brogues, new year same nonsense
Big chips
They don’t bomb their fullbacks on, gives them a solid platform and leaves space for their right and left players in the ‘3’ to operate.
We should employ a flat back four. Free or midfield bar one to bomb on.
What use a fullback who can’t cross lobbing it in from 18 yards out all day