How administrators can avoid redundancies short-term


There have been many questions about the unusual circumstance in football of Rangers going into administration but not making any players redundant.  It is possible, and not totally uncommon, for directors of a company in administration to arbitrarily choose to provide funds from their own resources to pay any chosen creditor, including staff. In football, players’ contracts of employment need to be with the club, but the source of payment can come from anywhere.

In this instance, Rangers Group, the club’s holding company, or any other body or person, could be in sufficient funds to provide the administrators with enough money to not only pay players, but to continue operating in a relatively normal state.  Rangers’ administrators have already suggested Craig Whyte has guaranteed to make-good wages due to be paid this week, although it was not made clear which entity would be paying, or the source of such funds.

Administrators will only be forced into player redundancies if they do not have sufficient funds available to see them through to the timely conclusion of negotiations with creditors, or if they are unable to receive binding undertakings from another source that they will step forward to pay players next month.

Various sources over the weekend suggested HM Revenue and Customs were prepared to extend generous time to pay terms to Rangers.  This club is owned by Craig Whyte.  While we all know what a stand-up guy Craig is, how likely to you think HMRC are to believe he will stick to a plan stretching out years into the future?  It’s just not going to happen.

I hear a ‘We’ll take a few years to pay too’ campaign is set to trickle through the SPL if HMRC agree to this one.  Better using the tax man as a bank than using an actual bank.

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  1. The taxpayers alliance is a nasty malicious Tory front group.



    Having said that the Huns are (by a country mile) worse. So I held my nose and completed the online form.



    Sometimes you have to do unpleasant things to (hopefully) achieve a good outcome.

  2. If we can keep up the failed job interviews we can get a deeper clue as to where to shop or ignore.:-)))

  3. Ten Men Won The League on

    Celtic Underground @celticrumours Reply Retweet Favorite · Open


    Hearing John Gilligan of Tennents is one of the ‘blue knights’ pushing for the £1000 per fan scheme to save rangers.

  4. I wouldn’t shed a tear if Elbows is made redundant. He is undoubtedly a millionaire and the SPL will be a safer place without him.

  5. Paul67



    In many ways they are delaying the inevitable.



    Toying with its prey before the final kill.



    After their demonstration of dignity at the weekend I am quite happy with a long painful suffering death for them.



    They have been seen for what they are. Anyone that wants to defend this shower of bigots must surely be one themselves.

  6. Paul:



    ‘While we all know what a stand-up guy Craig is’: I take it you mean ‘stand up’ as in comedian?




  7. Awe_Naw_No_Annoni_Oan_Anaw_Noo on




    An unbroken line is a line that does not contain a carriage return and exceeds the page width.



    I think the page width is 80



    Paul67 can confirm.



    Dont use down arrow and don’t keep typing without using a carriage return.




  8. ibleedgreenandwhite1 on

    Paul67 says:


    20 February, 2012 at 14:19


    ibleedgreenandwhite1, deleted. Language. Also, why all the unbroken lines? Makes reading on mobile/blog admin so much hassle.




    I wasn’t aware that i had used bad language Paul,but if i have i apologise!!!



    Hail hail

  9. @jocksteinsceltic


    why would Whyte fund the wages from his ‘own’ money ?



    Perhaps the plan was to move all the cash to the holding co. Put the team in admin with no means of paying creditors, get a CVA by a mix of fait accompli and political favour, then bring the team out of admin with playing assets still available (i.e. cause the holding company kept them sweet).



    If that was the plan, I think it went wrong a while back though…..

  10. I thought the red card handed out at Ibrox by Mr Brines was a very interesting development.



    This is the man who gave Elbows only a yellow card when his linesman told him that Elbows had assaulted a young Aberdeen player, with his elbow of course. This is the man who had a perfect view of Naismith elbowing an opponent in the face and chose to do nothing. This is the man who did nothing when a St Johnstone player famously sat on the ground in the penalty area with his hand on the ball for a couple of seconds – against Celtic of course.



    So how do we explain his sudden bravery in red-carding Papac at Ibrox? Is this a Scottish referee “evening things up” after the Tax Dodgers have already lost the league? Or is he an enraged tax payer who has decided to kick them when they are down?

  11. BlantyreKev - Parcel=> on

    I was at a function on Saturday night, went through to watch the Arsenal game in the bar, 8 guys in their 30’s all watching, back from Ibrox. One says ‘what about this scheme for the fans to put £1,000 each in.’



    About 4 ‘aye that’ll be rights’ simultaneously, and then one guys says ‘I love going to see Rangers but they don’t pay ma mortgage when I’m skint, no chance’.



    Hardly a reliable sample of the wider public but 1,000 sign ups would be £1m. I reckon that would be ambitious.

  12. Neil Lennon says NO to BESNA!! on

    79caps says:


    20 February, 2012 at 14:21


    I wouldn’t shed a tear if Elbows is made redundant. He is undoubtedly a millionaire and the SPL will be a safer place without him.



    Im 100% sure if that happened the ginger mullet would be on the phone right away.


    To me elbows has everything to captain m’well.

  13. midfield maestro on

    Keevins, along with the rest of the rat pack, are all the guys who got tore into Joe Ledley for coming out with “if we win all our league games between now & the end of the season, we CAN win the league”. 15 down, 11 to go. Well said Joe Ledley, don’t expect them to apologise.

  14. Malarkey says:


    20 February, 2012 at 14:27




    why would Whyte fund the wages from his ‘own’ money ?’




    To keep the show on the road until the result of the big tax case so Murray takes the blame for liquidation?



    Otherwise his quality of life might be adversely affected.



    I believe the trial of those accused of sending bombs and bullets is due to start on Thursday.



    I suppose it’s all part of the weft and weave of the fabric of Scottish society.

  15. Paul 67



    I just love it when you have the bit between your teeth.



    Keep them coming sir




  16. Paul67



    We were talking yesterday before the game about it being the strangest Administration ever seen. Not only keeping staff but trying to increase the payroll by £7500.00 per week whilst telling fellow SPL teams to go whistle for their money.



    I assume that Whyte was forced to declare Administration early due to action taken by HMRC, in order to safeguard his preferred creditor status, as it looks like there is money still there.



    Also, have you ever know Administrators to have such a public profile and be lording it with supporters before a match.

  17. Awe_Naw_No_Annoni_Oan_Anaw_Noo on




    18bis Third-party influence on clubs



    1. No club shall enterintoa contractwhichenables anyotherpartyto that contract or any third party to acquire the ability to influence in employment and transfer-relatedmatters its independence,its policies or the performance of its teams.



    2. The FIFA Disciplinary Committee may impose disciplinary measures on clubs that do not observe the obligations set out in this article.”

  18. So if going into administration forces Whyte to put money into the club they can keep going for now? But only in the same sorry state as they are at the moment.



    I keep arguing with myself about whether it is better to have the tax tribunal result early and kill them off once and for all or to have it late and let them limp along in a wounded state.

  19. Neil Lennon says NO to BESNA!!



    Right. He would suit a lot of SPL teams, but none better than M’well.

  20. BlantyreKev - Parcel=> on




    What if a holding company was paying players directly because they had a contract with them? I’m not saying this is happening because that would render those players ineligible and would mean all games in which they had played would be forfeited, but in an era when body swerving issues is becoming quite an art this issue would take some avoiding, no?



    Just asking a hypothetical question like.

  21. afternoon all



    as i don’t know how to do the link thingy i would encourage anybody to read the article that is linked on the CSA article on newsnow Celtic.



    If you can follow all that, it is very well written article in the ‘european observer’ about why society would not miss rangers and all that goes with them, if they die away



    Hail Hail and keep it going Bhoys it could be a truly record breaking season for Celtic

  22. BlantyreKev – Parcel=> says:


    20 February, 2012 at 14:30



    I was speaking to a few Rangers fans after Saturday. Most hadn’t been to a game in while. They said they wouldn’t be back. I reckon they won’t see many more sell outs this season. A lot of guys I have spoken to in the last few weeks at work said they weren’t really that interested anymore. They will stick to playing golf or do something else. Their own fans don’t even think they need to stop them dying as they think they should just be saved and if it came to shelling out cash they wouldn’t anyway. What a confused bunch they are.




  23. I am not sure if this has been mentioned but I dont recall much furore when Minty closed all the HUNS shops as a consequence of the JJB deal with about 150 people losing their jobs. A shrewd business move was the squeal in the yellow press at the time I remember.

  24. ArranmoreBhoyLXV11 on

    Great stuff Paul.. Do you do marriage counselling too.? CQN so addictive these days Mrs AB is wondering the attraction!



    I m mystified that THEMS are still talking about Cousin!



    There really is no hope for them.. They just don’t get it..



    Skint, redundancies looming adrift in league and they still talking him up..



    My guess… They want to beat MURDERWELL..




    HH ..

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