BBC today confirmed what we have been telling you would happen for months, HMRC have rejected the proposed Rangers CVA. One of the world’s oldest and most successful football clubs will now be liquidated.
Despite what should have been well-informed opinion from the Scottish accountancy profession, the proposal from Charles Green was always – always – destined to fail. His proposal to investors offered to treat football creditors different from other creditors in the same class, including HMRC, which contravenes the terms within which HMRC are able to agree to a CVA.
The line “All creditors to be wiped clear on consideration of £8.5m save for £3m being owed to other football clubs” ensured HMRC had no choice.
Prepare for the most intense two weeks of lobbying in Scottish history. Once the SPL received notification from Duff and Phelps of their intention to liquidate they will simultaneously receive an application from Sevco 588 to join the league.
My sources, which confirmed all along that the Sevco CVA proposal would contain a deal-breaker for HMRC, now tell me that Sevco will offer to back plans on the SPL voting structure, allowing home gate money to be shared at a vote in the near future as a price of getting entry to the league.
Sevco will gain out of this, as they will be able to sell more tickets to the SPL than the third division, the Gang of 10 will also gain, it is only Celtic who will lose financially as your season ticket money is offered BY SEVCO as an incentive to get them into the league.
Without Sevco in the league the Gang of 10 would be able to change the voting rights anyway but if Sevco acquiesce on sharing gate money, the Gang get to keep sponsors, TV money and earn a whole new slice of income every time they visit Celtic Park.
Enjoy your ice cream and jelly. There will be more soon on the consequences of liquidation of Rangers and what would be left in the event of a phoenix, but prepare for the bedlam that lies ahead.
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Yeehaa,
I’m going to ask HMRC to up my tax code to show my appreciation.
A job well done and the only player with cojones is Hector!!
Who’s that coming over the hill, is it the Taxman? Is it the Taxman?
Go on Taxman
Keep The Faith
Hail Hail
tully57
I remember my first job in Safeway at age 16. Sitting at a table at tea break the only Catholic there and nearly being in tears because of the abuse I was being given. I vowed I would never ever give in to that mob.
I remember every one of their faces from that day.
Happy Liquidation Day! ya scum.
Chris McLoughlin offering a ray of moon on BBC News just now, ‘…there will always be a ranjurz playing at ibroxe!’
1 new Tweet
2m alex thomson alex thomson @alextomo
Rangers: liquidation; 3y Euro ban; big tax case to come. Green and Admin say RFC still play at Ibrox – question now is in wt league?
‘crushed nuts?’ ‘Naw, Layringitis!’
A rangers without 5 stars, because that belonged to another club…
Paul
I hope this post gets through before the blog crashes!
Once again you have shown up the MSM for what it largely is – a bunch of cheerleaders for all things RFCIA. You have consistently said that HMRC would not accept the CVA. Yet only a few days ago, Green was still talking the CVA up with little by way of counter argument in the press. I was particularly disappointed that Neil Patey, who I had always thought of as being one of the more independent experts, was saying last week that the CVA would probably be accepted by HMRC. His credibility is now damaged.
Well done for keeping the standard flying for the internet bampots.
Tully 57 @ 11.57
Top Man, great post.
Sorry if this has been posted already. BOOM HH
“Liquidation will be like signing a new player”
Mark Hateley.
Paul Clark, joint administrator, said today: “We have been informed by HMRC they will not support the proposal for a Company Voluntary Arrangement at the meeting of creditors on Thursday, June 14.
“As a result of this decision, the Sale and Purchase Agreement in place with the consortium led by Charles Green will take effect and Rangers Football Club will continue within a new company structure.
“The reasons HMRC have given to us for their decision to vote against the proposal are as follows. HMRC has cited its general policy of not agreeing to a CVA where there is strong evidence of non-compliance by a company with its tax liabilities.
“HMRC had agreed to consider a CVA proposal along with all other options in the case of Rangers but having taken into consideration the extent of funds which will be made available to creditors through the CVA option, they have decided that it is not acceptable given The Rangers Football Club plc’s level of indebtedness to HMRC.
“It has also been made clear to us that other offers tendered for the Club, which took the form of a CVA, would have been treated in the same way and that the rejection is not a reflection of the Green consortium bid.
“HMRC has taken the view that the public interest will be better served with the liquidation of The Rangers Football Club plc as a corporate entity. The Club will continue to operate as it has always done but within a new company structure.
“HMRC consider that the decision will enable a liquidator to instigate a wider investigation into all of the financial affairs and management of the Club in recent years and to bring to task those they believe are responsible for its collapse.
“Furthermore, HMRC believes there will be an enhanced recovery of funds for creditors by pursuing those individuals who they believe are responsible.
“The consequence of the rejection of a CVA outcome is that sanctions will be applied to the Club by UEFA and that the Club will not be able to participate in Europe for three years and the new company will need the consent of the other SPL clubs to the transfer of the share in the SPL, in order for Rangers to continue playing in the SPL.
“As we have always stated, administrators have a primary objective to ensure the survival of the company and in this case, this would have been achieved through a CVA. It was with HMRC’s approval, that a proposal was placed before creditors for consideration.
“However, it is the commercial view that the level offered within the CVA was not enough to merit departure from their normal policy of seeking a detailed investigation via a liquidator.
“However, we have been left in no doubt by HMRC the fundamental reason for the rejection of the CVA proposal is the historical non-compliance with tax liabilities by the former owners and directors of the Club.
“As we have stated previously, there is a binding contract between ourselves as administrators and Charles Green, who is leading a consortium to acquire the Club.
“The creditors’ and shareholders’ meetings will take place at Ibrox on Thursday but the results of those meetings will now be entirely academic given HMRC’s decision.
“As soon as the CVA proposal is formally rejected, Mr Green’s consortium will move towards completion of an acquisition of the business and assets of The Rangers Football Club plc. That transaction will be completed within a few days.
“The sum payable to creditors will be £5.5 million, most of which has already been paid over to us by the Green consortium.
“Over the coming months, we as administrators will continue to finalise the administration of the Club and we will work in conjunction with BDO who will undertake the liquidation process.
“We would like to thank the staff and supporters at Rangers for their great determination and professionalism during a very difficult period for the Club. While the Club will continue to face difficulties in the short term, it will survive and continue to play at Ibrox.”
ASonOfDan on 12 June, 2012 at 12:13
I’m sure many people on here share similar memories.
They WERE the peepil.
tully57 on 12 June, 2012 at 11:57 said:
my sentiments exactly
Thanks Moon Bhoys – a great day.
It was on the 12th that we love to sing
That the huns they are no more
Not been 5 mins away from the blog for months and this happens when I’m out cutting the hedge. Who’d have thunk it. My son wakes up out his slumber to tell me. There’s no justice, I will try and enjoy the moment though :))))))).
Interesting times ahead.
Hail Hail
What are the Almas Perdidas saying on Filthy Filthy?
Many supporters in the centre of Warsaw. Russian guest are coming. Very quiet here but atmosphere of the big game.
Gents and ladies, friends and fellow fans
Get your tin hats on. The real battle starts now. The liquidation of Rangers is now certain, the NewClub scenario is now Rangers reality. There are legal minefields still to be navigated before that happens, but it appears as if the onus is now on football fans to make sure their clubs know how we feel.
Football supporters have been pissed on over league reconstruction, summer football, TV dominating the fixture list and a hundred other issues over the years. It is no exaggeration to say that this one, however, is the most serious, the most complex, the most important issue on which we ever had a voice.
Scottish football will either live with honour, or die in disgrace. We either have a sporting environment based on merit, and fairness, or we do not. Mark my words, today Scottish Football History itself came to an end, and whichever way we go here, the game will never be the same again.
This is a new beginning for us all, one way or another.
This new Scottish football can be born clean, or it can be dropped into this world on the filthy floor of a slaughterhouse. Today will decide whether we have a sporting culture based on merit, on justice and fair play or one born of scandal, fraud and disgrace. One of these paths offers a new vision, a Brave New World … the other will force us to confront a landscape of destruction, shattered clubs and fans disenfranchised to the point where they turn their backs and look away.
Nothing good can come of going down that road. The league may survive for one grubby, shame stained year. It cannot survive beyond that. Clubs will fold, sponsors will run, banks will harden their attitudes to lending, fans will boycott and the game will die. That is the reality of a yes vote for NewClub.
This is the hour at which supporters voices need to be heard. This is the moment for casting aside all rivalry, ego and hate. Fans across the wide expanse of Scottish football must come together and make their feelings known.
No to Newclub.
If we succeed, we can shape Scottish football anew. We can drive greater changes still, we can make our game something better. But if we fail, then the sport here in Scotland, including all that we have known and cared for, will sink into the abyss of a new dark age made more sinister, and perhaps more protracted, by the lights shone in dark places over the last few months.
Let us therefore brace ourselves to our duties, and so bear ourselves, that if our football clubs last, and our struggle to become a great football nation again succeeds, the supporters of the future will look back on us and say …. this was their finest hour.
When does the liquidation take effect? I take it that when it happens all the players are free agents with no residual value
Interesting this part of the statement
“The reasons HMRC have given to us for their decision to vote against the proposal are as follows. HMRC has cited its general policy of not agreeing to a CVA where there is strong evidence of non-compliance by a company with its tax liabilities.”
Does that last sentence not contradict the licence requirements for a football club?
Liquidation today… Termination of their license tomorrow…
bye bye rangers…
Andy Gray distraught on talksport,brilliant.
CQN’ers enjoy the craic but remember they will be a Newco soon and applying to join the SPL, if it happens it’ll be the end of Scottish football.
We need to be out if it, I hope the exit strategy is ready to be implemented.
Meanwhile enjoy their pain
Hx2
“However, we have been left in no doubt by HMRC the fundamental reason for the rejection of the CVA proposal is the historical non-compliance with tax liabilities by the former owners and directors of the Club.
Campbell oggilvie MUST go now.
Total disgrace if he is still in situ by the end of the day. Getting to the point that Reagan will need to go with him if no action taken soon.
On a related matter, I’d just like to say; hahahahahaha HA
Ibroxalypse Now – I love the smell of Liquidation in the morning.
Since I am on holiday in Saigon, it is great to hear the news about the liquidation of the beggars.
Think I will head out for some Ice Cream tonight, the famous ice-cream parlour in the city is appropriately called Fanny’s (http://www.fanny.com.vn/) and they have a lovely Durian ice-cream which smells of dead animals – which I will be eating and laughing at the death of that abhorrent institution.
Hail Hail
Indio
The funniest thing of all?
Duff&Duffer used up all the fighting fund money with pointless legal cases.
Priceless!
Is that now it for once and for all, or does Liquidation take 21 days and cooling off periods and stay of execution opportunities or are they just gone?
SKELP !
If dudd and useless stay on to assist BDO in the liquidation process do they still get their £750.00 per hour and if so where does that come from?
From what I was told this morning on CQN, thems playing at Ibrox in any division is not a sure thing or have I missed something?
Never thought I would live to see this day. I wish my mum and dad were alive to share it with me.
Bring on the liquidator and his “wider investigation into the management of the business over the years.”
If you think today is bad, Huns, your sins have only just begun to come home to roost.
Jim Whites Doctor has told the receptionist to take all phones off their hooks.
#WWTP
We Were The People
HH
What a day!! Superb.. We ve waited.. Sounds like Minty may be asked to explain.. Joyous..
And they can throw the liquidated FC tops oot!! They exist NO more..
No such football team , no such top!!
JCGE
So today has finally arrived, the end of the beginning. Strap yourselves in, its going to be a bumpy ride from here on in!!
If anyone thinks Green and his cadre will get a clear run at the black hearts and minds of the unwashed sheep on the south side they are sniffing glue.
We are about to witness dignified grave side squabbling over the twisted corpse of Rangers 1872.
If I was a fan of Cowdenbeath or Airdrie I would be concerned.
There can be only one…..
Green “Frankly, I do not see what benefit will be achieved by this decision. My consortium’s offer for a CVA amounted to a total of £8.5 million. Now that we will have to complete the purchase via the formation of a NewCo, the purchase price and therefore the amount available to creditors will be £5.5 million.”
I see the benefit of you being £3 Million better off right away, which is why you proposed such a crap CVA in the first place.