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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Joyeux Mardi Gras – let them eat pancake
navanbhoy says:
21 February, 2012 at 07:27
Surely none of that missing money could find it’s way to bankrolling any newco .
IMO that would never happen
hail hail
Knoxy2000
Great news about wee Oscar, please keep us all informed, the wee mans a fighter for sure.
Vinny
HH
Strachan is not surprised by grim plight at Ibrox
Published on Tuesday 21 February 2012 03:20
FORMER Celtic manager Gordon Strachan has admitted he has not been surprised by the plight of Rangers.
Strachan, who was in charge of Celtic between 2005 and 2009, felt a crisis at Ibrox had been coming for the last decade.
He said: “Well it is no surprise to anyone who knows Scottish football that this was going to happen.
“This has been building up for 11 or 12 years and it has been going on and on and on and everybody had an idea that this might happen to Glasgow Rangers. So it has not come as a surprise to anybody. Do we really know what the answers are? Well once the auditors go in and try and find out what has gone on then then you might have some answers.”
Strachan has no doubt that Rangers will survive but he hopes that their plight serves as a warning to the football club owners.
He added: “The first thing is that Rangers will not disappear, they will stay and there is absolutely no problem about that.
“As for people thinking that Celtic are quite happy about this, well they aren’t really because they would miss the derby games. There is nothing better for a Celtic manager, a Celtic player or a Celtic fan to beat Rangers and vice versa to give them that buzz. That’s for sure.
“I think for football clubs all over the place and for people coming into football this is a different business from any other business you have been in. It does not have any rules and if you don’t stick to your business plan then you have a problem.
“If you worry about what people say, fans telling you to spend money just to have a quiet month or so, then you will have a problem. You have to stay strong.
“You ask any Portsmouth fan whether they would swap winning the FA Cup final for stability they would say yes.
“Anyone who takes over a football club does not have responsibility to themselves.
“The have it to the community where they buy that football club. They have to have a strong business plan – don’t be sentimental and don’t be pushed by anybody else.”
Somehow we all missed those articles warning Rankers in the last decade
Strachan, who was in charge of Celtic between 2005 and 2009, felt a crisis at Ibrox had been coming for the last decade.
He said: “Well it is no surprise to anyone who knows Scottish football that this was going to happen
Vmhan Supporting Lenny!:
Re-your question about Wednesday’s game, no it is not being televised mate.
Keep the Faith!
Hail Hail!
fergus slayed the blues says:
21 February, 2012 at 07:26
Well worth a listen.I heard it on the radio on Saturday.Comedy gold it was.
That Jabba one is ignorant reprobate.This is the same comedian,along with the rest of his cronies that has been caling us all paranoid for years,when infact,we were right all along.
And he is still at it during his latest shambles of a show,dismissing callers that present him with fact,as being mental,shouting folk down and telling them to go away and take some medicine.
No harm to him,but if he called me paranoid to my face,i would have to clip him round his fat chops.
Difficult to believe that a national broadcaster allows this behaviour live on air.
greendreamz says:
21 February, 2012 at 05:52
************************
I think you stretched the page there with you’re post, it causes additional work for our host.
ps I can feel voguepunters embarrassment fae here :¬) he copied and pasted that from his armchair :¬)
Victor Wanyama originally wrote it.
V
HH
Good Morning,
So it being reported Whyte really only did have that £1 in his pocket when he bought rangers.
He received the Ticketus money the month before the purchase and used that to pay Lloyds.
Preferred Creditor? I think Ticketus can claim that title now.
CRAIGWHYTECSC
Sandaza: contract would have been ‘waste paper’
Published on Tuesday 21 February 2012 03:20
ST JOHNSTONE striker Francisco Sandaza has admitted that he is glad he did not commit to joining Rangers during last month’s transfer window, after watching the Ibrox club descend into turmoil following administration last week.
great news about wee Oscar…
thanks for keeping us up to date Knoxy… KTF
Sixteen roads to Golgotha says:
21 February, 2012 at 07:44
fergus slayed the blues says:
21 February, 2012 at 07:26
Well worth a listen.I heard it on the radio on Saturday.Comedy gold it was.
That Jabba one is ignorant reprobate.This is the same comedian,along with the rest of his cronies that has been caling us all paranoid for years,when infact,we were right all along.
And he is still at it during his latest shambles of a show,dismissing callers that present him with fact,as being mental,shouting folk down and telling them to go away and take some medicine.
No harm to him,but if he called me paranoid to my face,i would have to clip him round his fat chops.
Difficult to believe that a national broadcaster allows this behaviour live on air.
Long time since i listened to this show as Sportsound is a bigot fest
Circumstances on Saturday meant i heard Jabba deliver analysis so perverter and untruthful on Rankers present and historical financial situation
The BBC charter has been broken by Jabba so many times, he really is the most disgusting scum hack
I like the ethos of the BBC but i would now vote against their protected status if i was allowed to vote on it
Knoxy 2000 – Great news! What a smashing start to the “working”day when I read back. Brilliant!
lionroars67 says:
21 February, 2012 at 08:02
Indeed.
Chick Young also claimed on Sportsound that if Ranges ceased to exist,Celtic would win everything,and Scottish football would become boring.
It’s funny that he didn’t find it boring during the 90’s when they cheated there way to all those tarnished trophies.
Such a hypocrite.
Morning all
Hope you enjoy Fat Tuesday
Knoxy 2000 Good news
On Tea duty today
Good HaHaHahappy Administration Morning CQN.
Just fired this off the the SPL.
Dear Mr. Doncaster,
I hope that you are well.
I am contacting you regarding the situation surrounding Glasgow Rangers at present. As you well know Rangers recently entered administration for unpaid taxes of £9M for this season. The club awaits the outcome of an HMRC decision into unpaid taxes accumulated over a period of ten years, where the club paid players through a dubious Employment Benefit Trust scheme.
The scheme allowed Glasgow Rangers to attract players of a higher caliber than their opposition. By avoiding tax liabilities Glasgow Rangers ensured they could offer higher wages than anyone else. This EBT scheme essentially gave Glasgow Rangers an unfair advantage over their rivals who acted with financial propriety. Mr. Doncaster this is financial doping and if found guilty I must ask that the trophies Rangers won during this period be revoked.
I would like to know what the SPL’s intentions are if the HMRC decision goes against Rangers.
Remember we are talking about a club who are the architects of their own demise here. Who engaged in dubious tax avoidance schemes that effectively gave them an unfair advantage on the pitch as they could afford players that other clubs acting with financial propriety couldn’t. In other words they have CHEATED.
They have cheated every other club they have played against during this period, and they have cheated the tax payer to the tune of £9M for unpaid taxes this season; the £2.8M unpaid small tax bill; and potentially £49M to £75M for the decade the EBT’s were used. There is also the share issue MIH underwrote to the tune of £50M; the £35M debt for equity deal; and another £12M absorbed into MIH, all of which the tax payer eventually has had to pick up the tab on. This is tax payers money that should have been spent on health, education, transportation, and housing.
If Rangers go into liquidation avoiding the debts they have incurred and are reinstated into the SPL debt free the integrity of the game is in question here. Cheats prosper in Scotland would be the message sent out here. You have a responsibility not just to the integrity of Scottish football but society as a whole to ensure that justice is done here. I would like to know if the SPL rules permit a NewCo entry into the SPL? And if so, when was this rule introduced and at whose instigation?
I am also alarmed at the political pressure being exerted on HMRC by First Minister Alex Salmond and other politicians urging them to come to an “arrangement” with the club. To me this is political interference in football which is prohibited by UEFA as it threatens the integrity of the game. Any reduction in the amount owed by Rangers due to this political pressure is tantamount to State Aid, which breaches UEFA guidelines and could see Scottish football face UEFA sanctions.
I would also like to ask a question regarding the Sky contract. This contract was signed by the current incarnation of Glasgow Rangers. If Rangers go into liquidation the club that signed the Sky contract no longer exists. There is no “Old Firm”. My question to you is; how can you honour a contractual agreement when one of the partners no longer exists? The Sky contract isn’t valid if the Glasgow Rangers who signed it go into liquidation! The argument that we need to keep Rangers in the SPL because of the Sky deal is nonsense because the club who signed the contract no longer exists. With regard to the Sky contract there is no financial imperative for keeping a NewCo Rangers in the SPL.
If a club has acted out with the perimeters of financial fair play, they should be punished accordingly, not given a lesser sentence due to political interference or the supposed “good of the game”. Anything less and Scottish football is dead.
I look forward to your reply.
Many thanks for your time.
Yours faithfully
B. Obampot
Had to share this.
Craig Whyte explains himself…Where is the MONEY?
If Rangers lose the Big Tax Case, HMRC will immediately go to the courts and lodge a winding-up order.
All this media and administrator talk about HMRC not wanting to liquidate the club is kind of true. They don’t, and would prefer not to, but they want their dues. That is the default stance of ANY creditor. Can you imagine HMRC, when asked that question, saying – Yes, we do want to liquidate the company? Of course they are not going to say such a thing.
HMRC went down the administration road over the 9m PAYE and VAT in the hope of forcing a situation where someone or some entity, with very deep pockets, would take over the club and settle the debts. It was a kind of final warning of what is coming, while giving them a bit of time. If Rangers are not out of administration by the time the big bill arrives, it’s the end of the road. Even if they ARE out of administration by that time, they would be required to make good the new and much bigger debt by a specified date under the terms of the winding-up order, or it will be enforced. HMRC will not settle for administration a second time.
Bottom line . . . unless Rangers win the Big Tax Case, they are doomed.
Alex Salmond will not be able to do a thing about it.
Could they lose all there points accumulated this season?
David Begg @dadbegg Reply Retweet Favorite · Open
Media working on player registration story with massive implications for Rangers. So far they can’t make it stand up.
Hector-MurdochauldandHay
Oh the huns are going down
the huns are going down
the huns are
the huns are
the huns are going down!
:-)
I see Super Sally is the hero of the hour!!!! We don’t do walking away…to be brutally frank…I’ll do whatever, whenever,,blah blah.
I bet he thinks he has got away with being a poor excuse of a football manager, or that up to two weeks ago he was shoulder to shoulder with the MBB!
Clown.
Rangers v Kilmarnock Sing Along
Match Commander—–Where are you ?
SPL/SFA Delegate——-Where are you ?
Kenny McCaskill———Where are you ?
Is it hear no evil, speak no evil , see no evil
We all know it was evil, don’t we bhoys and girls
So come out , come out wherever you are
Hope we will soon be singing ‘The Huns are oot the League’
Apologies for having to post this as a link,but it’s too long to c&p.
Ignore the Rangers-related story,but scroll down past the comments to the heading ADS BY GOOGLE
You won’t believe the name that comes up (I hope it’s not one of those ever-changing loops,btw)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://www.thescottishsun.co.uk/scotsol/homepage/sport/spl/4142438/It-hurt-me-when-Gers-didnt-call-me-back-now-I-know-why.html
Morning, All.
Especially Knoxy … goodly news, mate.
It may already have been posted, but just in case it hasn’t, here, for your delectation, is the latest from rangerstaxcase:
RANGERS’ PR STILL PEDDLING DISINFORMATION
Keeping up fan morale has never been more important at Ibrox. If Rangers simply run out of cash to keep the lights on, the administrators will have no choice but to liquidate the club. While the administration process means that Rangers have great leeway with regards which bills they pay, it is vital for the club that cash continues to come in. Therefore, we need to view all statements emanating from Edmiston Drive as being designed to achieve that goal.
We have heard some strange-sounding statements from the administrators, but it is the story circulating that the tax case has not gone well for HMRC that I found interesting. Scotland on Sunday reported this week that this blog “claimed the ‘smoking gun’ for HMRC was a number of letters indemnifying players from any future tax liabilities on money placed in their EBTs”. I have said no such thing. I did say: “I can only hope for Rangers’ sake that they were not so stupid as to provide written guarantees for players saying that they did not need to repay these loans”.
It was in fact Darrell King on Clyde Superscore Board who told us that Rangers players had two contracts and were given side letters telling them that loans did not need to be repaid. Darrell went further on 10 November, 2011 stating: “I saw the letters the players have got to state that they are not liable for any payments which were part of their contract“. (More recently, Darrell denied actually seeing the letters).
Regardless, a “key witness” at the tribunal reports that no such side letters existed. That would be fantastic news for Rangers if it was true.
I can only assume that the story from this “key witness” is being pushed to keep fan morale up during these difficult days. It may also be a last-ditch effort to try to get anyone in possession of the facts to make a mistake and disclose evidence presented to the First Tier Tribunal (FTT).
Let us look objectively at this “source”. The Scotland on Sunday report stated: “The source, who is not connected to Rangers but had clients who benefited from EBTs“. This is a key witness? Someone who did not participate in the EBT personally? Someone who is not connected to Rangers? Given the long list of players and executives who participated in the EBT scheme, this is the best witness available to refute Darrell King’s claims?
If this person was indeed a witness at the tribunal, he will have been called as a witness by Rangers. He will have been initially examined by Rangers’ counsel, cross-examined by HMRC’s lawyer, and then possibly re-examined by Rangers’ counsel again. Then he will have been made to leave the hearing. He would not know anything about what evidence was presented other than his own.
Of course, nothing in life is absolute. This blog never said that defeat for Rangers in the tax case is 100% guaranteed, but I believe that the evidence is overwhelmingly against the club. We are close to the end of this process and it is probably best that those with an interest in learning the facts remain patient and simply wait for the FTT result. The significance of this case is no longer in dispute, and there is little need to bang the drum for more publicity for Rangers’ difficulties. After all this time, we can wait a little while longer for the final outcome.
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS at 09:19
Thos Google Ads won’t be the same on everyone’s computer.
Mort
bmcd48
This is what John Beattie said on his show yesterday.
“I was disgusted with what I saw, I was amazed at what I saw in terms of what happened in the stadium, the songs they sung. When I was there I thought I don’t feel part of this at all. As I sat in the stadium, and I’m from that background, you know my father was from that background, I sat there on Saturday thinking THIS IS NOT PART OF WHAT I’D LIKE SCOTLAND TO BE …I turned up actually thinking, I thought there would be a, you know a big show of togetherness, which I was expecting as it was a major cultural event, you know people’s who’s club is struggling, I thought there would be a major positivity in the face of background troubles, it then became ANTI-CATHOLIC, it then became not about the football game.”
I pointed this out to my MSP, who replied that he “publicly condemned” this but doesn’t seem to realise that public figures who do so in private are in all actuality condoning the situation. Shameful capitulation from the SNP again.
MORT 0922
That’s what I was concerned about. Pity really,as I got the page I first looked at.
For anyone else who does-they’ll know when they see it,I can’t believe how brazen they are to have their name associated with a Rangers-related story.
Can’t see very many huns giving them business ahead of anyone else!
Assuming Whyte has gone never to return. The administrators will run Rangers but only until the money runs out, which will probably happen soon. Then if no one ‘buys’ Rangers they will be wound up ?
Making the tax case in some respects irrelevant ?
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
If the first duty of the adminstrators is to act in the creditors’ best interests, why haven’t they immediately laid off players, freeing up money to pay back debts? Negotiations could carry on meantime, but why are they currently being allowed to continue running up costs through a massive wage bill?
Voguepunter, I meant you no ill will, and respect you’re posts for the talent which they potray.
This message sent from iPhone to yir armchair!
knoxy2000 eating Jelly and Ice Cream and supporting Neil Lennon says:
20 February, 2012 at 23:02
—–
Unbelievable news – that really is fantastic. All the best to the young lad.
HH
Giggs
“Media working on player registration story with massive implications for Rangers. So far they can’t make it stand up. ”
Can anyone clarify, who can’t make it stand up (ooer)? The media or Rangers? And what is ‘it’?
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS at 09:26
What was it?
Do you also realise that a company who takes out ads with Google has no control where the ads end up, the ads are randomly generated depending on the story and the users past preferences.
Mort
Barrach Obampot
Thanks for that
The press gave it full coverage ( first time )
So where are the people that matter
So the Daily Mail’s Whyte story turns out to be the old one about the Ticketus money being used to pay off the bank debt. How long ago did we know that?
There was talk of today being a big one for employees of Rangers. Perhaps the axe is about to fall? Mind you, if you don’t actually own players (allegedly) I suppose you can’t then make them redundant.
Fassreifen
The implication is that players were registered under a company other than Rangers FC, rendering them ineligible to play, cancelling out all points this season (except the 10 deducted ones, naturellement).
Paddy Power have ICT at 5/1 to beat Rangers*. I would advise to get your boots filled now before Duff & Phelps do their stuff……
up_over_goal says:
Thanks.
HH