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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Badabing
3m for jg and denayer ?
That be best january sale ever.
Think ronnie said when we got denayer that he is already valued at 10m.
Another loan deal only chance we have to keep him.
Just checked the league table for jan 3 2013
We were top with 43 points after 21 games – 9 points ahead
Now we are second top with 39 points from 18 games
If we win our 2 games in hand (against Kilmarnock and the Jags) we would be top with more ponts from less games
Still in Europe
Still in the 2 cups
Still paying our tax and NHI
jimmynotpaul-agree mate,really surprised McGinn still at St Mirren,he is out of contract in summer,maybe been told to sit tight.He always gives Brown a hard game.HH
Ellboy – I am Neil Lennon, YNWA.
I for one will be making this my last season ticket purchase. The game in Scotland is run for the benefit of the privileged few. Also the low standard of football on view, by my team and the rest does not make me want to be there. I will be 69 this year and find going to a match now a bit of a chore and not really worth the bother.
Am I the only one worried ??
If ever I decided to become a referee and I got the job (in the old days) of being the ref for my beloved Glasgow Celtic against the Hun I would try and maintain some moral dignity and a degree of professionalism and ref the game fairly – but deep down I know I would overlook one or two things in favour of Celtic and blow against the Hun
And if (heaven forbid) my team was mismanaged and went out of business I would weep and contemplate suicide – but I would continue to be a referee
And if the Hun was now dominating I would grind my teeth and suffer in silence – unless a “Northern Challenger” tried to knock the Hun from his pedestal
If I was a Ref I may look favourably on the Northern Challenger and encourage a challenge to the Hun (I would want anyone to win but the Hun)
So my point is tonight plastic pitch – Celtic will get the wrong end of a decision and will need to be at their best to win – I expect a problem because a referee does not change his mentality – the more pressure they can apply to Celtic the more they will
Am I the only one worried??
67ECW
Bada Bing. The source of the story is Goal.com and to be fair they are usually fairly accurate. We wont get Denayer as City do not want to sell the player but Celtic dont want to risk waiting until Guidetti is a free agent as they may lose him.If you think about it 3 million is not a lot for a striker in England did Fulham not pay 11 Million and £40,000 per week for Ross Mc Cormack it is funny money down there. H.H.
guernica-disagree my friend,Tonev for a start……McGinn much better team player than some you mentioned,ideal on the left to cover Izzy going forward HH
Scottish Football needs a bankrupt Sevco.
Statement of intent needed tonight. People have been predicting for weeks somebody getting a hammering from us.
No better time for that than tonight. 6-1 to the good ghuys.
Regarding HMRC\Doncaster: interesting to see hacks from the MSM tweeting their incredulity over this latest bland, insulting brush-off. Perhaps someone somewhere has discovered a backbone.
Mon the Hoops tonight.
Tim Malone – it looks like we struggle to afford / attract leaders now. Martin had a number of seasoned internationals. Captains among them.
We, I guess, are trying to develop leaders now.
Johansen looks like he could become one. Forrest takes responsibility on the ball, never more so than Killie that day.
As for McGinn, Jack and co, I guess we will see where they end up.
proudbhoy-JFH-I was told the 3 mil deal for both players,from a pal who was at a lunch with RD at CP a few weeks agoHH
bournesouprecipe
16:06 on 5 January, 2015Scottish Football needs a bankrupt Sevco.
Scottish Football feeds a bankrupt Sevco….
Bada – he may prove to be. I’ll watch his career. Seems strange WGS hasn’t called him up and no offers have come in.
I note the other star at St Mirren, McLean, has been the subject of a bid from Fleetwood.
Burgas Hoops
15:45 on 5 January, 2015
Mike Bhoyle.
WHO IS KIDDING WHO HERE?
When will Member Clubs take a stance on thes “whitewashes?”
” Never is prob the answer Mike, the other clubs regard us as the other half of the O** F*** they look after their own.They dislike us more in my opinion”
You may well be right…but…l hope that at least Livingston ask the question.
This stinks to high heaven.
Whither the cash strapped scrofulous hillbillies…the day?
If he signs then Guidetti will sign for £1m no matter what Goal or anything else says.
I hope any statement of intent tonight is from our fans and is aimed at Doncaster.
Also hoping for a comfortable win.
Bawsman
Hi mate,I had login probs at start,thought it sorted,lurked a wee while,went to post and it blocked,so between here and other places,twitter etc i just left it..hope that helps
HH
Now, if we were about to be wound up, you can be assured that wee chic, awwy or dick would have been camped outside either the ground or Hampden “worriedly” bumpin’ their gums about the impending calamity.
Instead, in scoddland we are greeted with spoiler spurious guid news headlines and puff-pieces that proclaim the huns have been saved.
It’s all a matter of perspective.
Bada bing
—
I hope your right buddy.
Sadly iv turned into a negative norris these days.. if what you say is true expect virgil to be sold for as much as possible.
Its what we do.
Imagine our team that beat barca with guidetti alongside hooper.. that would have been a strong team. Hooper was crying out for a quality partner.
Mick Fleetwood has plenty dosh since he stopped powderin’ his nose with the ‘Rumours’
royalties
He could probably go mad and splash the cash for Greg Wylde as well
DBBIA/RattlesnakeShakeCSC
charliemac
16:02 on 5 January, 2015
–
So basically after 18games last season and this seasonwe have more pts this season ?
Few people wont like to hear that.
This whole easdale winding up gate has the wiff of lies.
A statement is issued to the BBC that a 500k loan has been given by Easdale. The loan is for immediate ‘working capital’ to pay off outstanding NI. (Why only NI?)
It is understood that they received a seven day notice letter at the end of December.
Unless HMRC have 7 day payment terms which is unheard off then this is a demand after an default on an original payment.
If the SPFL knew about that before the announcement this morning then why the need to investigate it. If they didn’t know then Rangers are in breech of the rules.
SPFL need to explain this one.
Bada Bing. It would be great if that turned out to be the correct story but I suppose it will all be clear in the end. H.H.
Is that chess E20 Lord Nimzo defense?
ItaliaBhoy @15:29
“Pump…
…And dump.
That is all…”
When did we start giving out relationship advice on here?
DBBIA
The cash strapped scrofulous hillbillies, need 18 million just to stay s***e.
Italiabhoy why would we wait for those other clubs? Why don’t we get on with it ourselves???
proudbhoy
16:16 on 5 January, 2015
charliemac
16:02 on 5 January, 2015
–
So basically after 18games last season and this seasonwe have more pts this season ?
Few people wont like to hear that.
====================
The season before actually – but I don’t remember the constant negativity about it
proudbhoy-ditto mate,will believe it when i see it.HH
mullet and co 2
I think that the ole E20 Lord Nimzo defense explains this quite neatly.
If The Rangers had told the SPFL about the letter from the tax man, then the SPFL would have known and The Rangers might have been in trouble. But…..since the SPFL are dealing with an unknown unknown since The Rangers never telt them, then case is dismissed.
Next…..
TimJim. I think at your age you deserve a rest and to pass the baton onto younger supporters. H.H.
Mullet and co don’t hold your breath mate. Doncaster wouldn’t do anything without Mr Lawwells say so and isn’t it interesting that there is no explanation as to why no rules have been broken?
What a remarkable surprise that the ole Aberdeen Banner from yesterday’s game never made it to SMSM.
Is the game on the BT channel tonight?
Charliemac
—
Me neither.. I think most of the frustration is down to the players we have moved on and brought in to be honest.. ronnie is an easy target.
Dont agree with every decision he has made but thats been same with every manager we have had.. the problem for me lies furthur up the food chain.
and basically last season versus this season how many goals had we scored and lost ?
and basically last season did we play in a champions league group and win points ?
and basically were we entertained more than we are now ?
someone told me a good story about the bold bertie letting rip at the team performance after the county game in the kerrydale suite ……………
the last thing jock would say before we left the dressing room
“hear them out there, now go and entertain them”.
proudbhoy
16:16 on
5 January, 2015
charliemac
16:02 on 5 January, 2015
Last year we were 9 points ahead this year we are 4 points behind ???
67ECW