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How administrators can avoid redundancies short-term

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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. Videocelts have worked out when we can have the ‘Real Party’

     

     

    Rangers must win their next three matches to ensure that the March 25 visit from Celtic isn’t a title clincher.

     

     

    With Neil Lennon’s side extending their winning run to 15 matches by demolishing Hibs 5-0 at Easter Road not many bookies will be expecting Dunfermline, Motherwell or Aberdeen to take any points off the league leaders.

     

     

    Rangers face a tougher schedule of matches away to Inverness Caley Thistle and Dundee United either side of a home match with Hearts- three clubs that they owe money too.

     

     

    Ally McCoist’s side haven’t won three consecutive SPL matches since the beginning of December when they beat Dunfermline and Inverness at home either side of a 2-0 win away to Hibs.

     

     

    If Rangers can win their next three matches then there is no way that Celtic can clinch the title at Ibrox, if McCoist’s side drop any points then the derby match could turn out to be the clincher causing serious concerns for the police and football authorities.

     

     

    By Saturday evening the chances of such a scenario should be fairly clear once Celtic have hosted Dunfermline and Motherwell.

     

     

    Full points for the home side will see Rangers take on Inverness 23 points behind Celtic.

     

     

    Should both teams win all three matches then Celtic will go to Ibrox 17 points ahead of Rangers with eight games left to play.

     

     

    A hoops win would extend that lead to 20 points with 21 points still to be played for- including the return fixture at Celtic Park.

     

     

    After their trip to Ibrox Celtic host St Johnstone before travelling to Kilmarnock in the final fixtures before the split.

  2. Malorbhoy

     

     

    It was the Jimmy Delaney CSC Bus from Cleland yesterday, however disappointing it wisnae fast and even more disappointingly there was no Katy Johnson, I had to make do with Bhoy from the Village and his brother Raymond :-) who were excellent hosts!!!

     

     

    Thanks on the photos, we had a great laugh on Charlotte Sq – very very funny end to our spectacular day in Edinburgh.

     

     

    Hope you’re well, amazed I noticed your post ;-)

     

     

    hh

     

     

    bjmac

  3. Tombola, Winning Gemmell,

     

    Noticed your posts about Alec Burnett & responded @ end of the previous thread.

  4. The Honest Mistake loves being first on

    gscbhoy 20 February, 2012 at 16:12

     

    Gee whizz, Wigan report losses of £7.2m for the year, and net debts of £72m. Turnover only £50m (an increase of 16% since last year) and wages, wait for it, now 78% of turnover

     

     

    The Portsmouth administrator, while being interviewed on SSN, said that a large percentage of Championship clubs have wage bills in excess of 100% of turnover.

     

    Goodbye football roadmap as we know it.

  5. St Martin De Porres on

    wish it was last monday

     

     

    I need my daily fix of woe

     

     

    its all too quiet. Can we not just make somethiing up

  6. voguepunter says:

     

    20 February, 2012 at 14:39

     

     

     

    Excellent post, with questions that they will never answer.

     

     

    In 1949, my 5 year old brother came into the house and asked his father, ” What is a Fenian Bastard?”

     

     

    My father asked him who it was that called him that.

     

     

    When he told him, he went up to the “high back” where we played and called the boy’s father out. He was wise enough not to go to his door, as he would make himself the aggressor in any ensuing “debate”.

     

     

    The coward never appeared.

     

     

    My brother and I were the only two Catholics amongst the group of kids who played together.

     

     

    This was ok most of the time, but there always seemed to be an occasion every year, when we would be chased, due to some manufactured reason.

     

     

    It wasn’t till I was older that the penny dropped. It always happened around July, when the blood was up.

     

     

    Discrimination in the workplace, is it?

     

     

    After I got married, I got a job with the East Kilbride Development,Maintenance Dept.

     

     

    The reason being to get a house in EK.

     

     

    During one year, from the joiners shop alone, 11 Catholics had been paid off.

     

     

    My mate and I were finally called, on a trumped up excuse, which the union ignored.

     

     

    Fortunately, we had both got our houses.

  7. Voguepunter – what a cutterer and pasterer you are. If I am ever looking for someone to do my cutting and pasting, you Sir will be first on the list…..what a guy.

     

     

    Awra Best

     

     

    J

  8. Joe F’s … @ 15.47

     

     

    Ticketus have lent the TFOD nothing.

     

    They started with 75K tickets being handed over for £24.4mill to CW.

     

    They ended up with another 29K when the original deal was re-negotiated.

     

     

    Therefore they have bought 104K tickets / rights to the revenues from those tickets from the TFOD.

     

     

    It started out as a 3 years deal to get the money to pay of the LBG debt without having to apply for a Provi cheque.

     

     

    When he could not pay the first instalment CW was forced to extend the deal to 4 years.

     

     

    He was supposed to pay £9.5mill in June / July 2011.

     

    He could only pay £3mill and that is why it is now a 4 year deal.

     

     

    Given the half life of the TFOD FC When the deal was struck – less than 12 months tops -and the fact that Ticketus are an established, hard nosed outfit some form of security must be part of the deal.

     

     

    All of this seems to have happened at the TFOD Group level not TFOD FC level so that just clouds the matter and makes it hard for the administrator.

     

     

    CW paid off the debt to the LBG – the floating charge was transferred to him.

     

    Not sure how he would want to structure the Ticketus deal, I think he would want to keep his pole position come administration time* but Ticketus will want their money or their pound of flesh.

     

     

    Hopefully things will become clearer this week.

     

     

    *He gets Ibrox and consequently is in a good position come any re-launch of the TFOD to ask for a chunky rental payment as Ibrox looks to be the USP if rival claimants rise from the ashes.

  9. BJMAC

     

     

    aye very good, lurk every day, always nice to here from you, talking about photographs i have never seen the photos from the Ramie do in Glasgow any idea?

  10. RalphWaldoEllison-is Neil Lennon Season 2011-12 on

    b2k says:

     

     

    20 February, 2012 at 14:47

     

     

    Here is the link to the article mentioned above Article from European Examiner on why we won’t miss Rangers by Nathanbhoy

     

     

    This is a repost from b2k to help relieve the pressure on VogueP.

     

     

    Still fabulous that stuff like this is out there in the Europe like where Uefa folks live and breath.

     

     

    HH

  11. Neil Lennon says NO to BESNA!! on

    St Martin De Porres says:

     

    20 February, 2012 at 16:20

     

    wish it was last monday

     

     

    I need my daily fix of woe

     

     

    its all too quiet. Can we not just make somethiing up

     

     

    Seemingly MBB has used the missing £24M to open a Jelly and Icecream factory to hopefully clear the near £100M debts.

     

    A MBB spokesman has revealed that due to unprecedented sales, for this time of year, the target has nearly been met.

     

     

    LET THE PEOPLE MAKE THINGS UP!!

  12. RalphWaldoEllison-is Neil Lennon Season 2011-12 on

    And the link didn’t copy over..Doh!

     

    Bottom of page one on this article.

  13. The Honest Mistake loves being first says:

     

    20 February, 2012 at 16:19

     

     

    From my simple reading of it, any team with a wage bill larger than their turnover is doing exactly what Murray did at Rangers FC (in administration) and Leeds, i.e. spending money they do not have. Whilst, with the exception of Portsmouth, they appear to be paying their taxes, it is nothing more than yet further examples of ‘chasing the dream’, or financial doping.

     

     

    We have been talking for a while about a ‘house of cards’, expecting the fall of one cheat to have a kock on effect with the rest of them. Will it happen? Probably. Will it be soon? I hope so.

  14. pabloh_AKA_NEIL LENNON on

    Incredible, yet not surprising comments on ‘rangers media’. One of them took the unusual step of extending their hatred to Muslims.

     

     

    I’m so glad I support a great club that has never discriminated against religion, in terms of staff, players and fans.

     

     

    In my opinion their hatred will be more apparent than ever considering their state and the way we are cruising on and off the park. There is no way we will be allowed to win the league at ibrokes!

     

     

    Which is a shame, considering our supporters excellent worldwide reputation and behaviour. Oh well, I’m sure we will celebrate brilliantly WHEN we win the league. And cups, of course.

  15. The Spirit of Arthur Lee on

    All you need is your own imagination

     

    So use it that’s what it’s for [that’s what it’s for]

     

    Go inside, for your finest inspiration

     

    Your dreams will open the door [open up the door]

  16. bunburybhoy says:

     

    20 February, 2012 at 15:44

     

     

    Plod must have been on CQN!

     

    —————————————————-

     

    BBB

     

     

    They have a difficult job – Which will cause the greatest civil disorder

     

     

    a) Postponing the game with the result that Rangers are liquidated because they absolutely need the cash ? or

     

    b) Allowing the game to go ahead with the chance that Celtic win the league at Ibrox?

     

     

    VertWolf

  17. Joe Filippis Haircut on

    MadMitch. Whyte in my opinion is one step ahead of the posse he has generated a lot of smoke and has used plenty of mirrors as did his predecessor imo there is a lot to come out of this story we are only at the begining of a murcky trail. However,you look at it Rangers are in the brown stuff right up to there chin and there is more than one individual who is guilty.H.H.

  18. Bromley … @ 15.29

     

     

    Repayment vs NewCo

     

     

    I also would prefer the TFOD to re-pay all the money they owe.

     

    It would be fair on everyone and it would stretch their punishment into the medium term.

     

     

    Any NewCo / Auction room lash up would be in much Steiger position financially if all they had to worry about was the £18mill floating charge / Ticketus deal.

  19. Can anybody point me in the direction of where I might buy the Celtic away top of the early sixties?

     

    The white one with the shield emblem with the shamrock inside it?

     

    HH

  20. Malorbhoy says:

     

    20 February, 2012 at 16:24

     

     

    I remember seeing them somewhere, I thought may Gordon J’s facebook page, but just checked and they’re not there.

     

     

    I’ll drop him a note and see if he can put up a link for you, it was he who took all the “official” photos ;-)

     

     

    hh

     

     

    bjmac

  21. ibleedgreenandwhite1 on

    Ghuys could someone point me in the direction of Vogue punters previous post,,,would love to have a read !!!

     

     

    Hail hail

  22. The Battered Bunnet on

    Getting way ahead of myself…. Given the troubles in Mordor, and the likely loss of some players shortly, Lenny and the kids might have only 2 remaining chances to top the Seven.

     

     

    We’re scoring pretty freely at the moment.

  23. bunburybhoy says:

     

    20 February, 2012 at 16:36

     

     

    Do you mean the white one with emerald green sleeves and collar? My old man got me that from Toffs for Xmas. They’re online and also might have a shop in Glasgow. Celtic shops might even stock them, not sure though.

     

     

    HH

  24. The Honest Mistake loves being first / gscbhoy

     

     

    The points you make are I think the very reason why HMRC should not and will not let The Shame get away with anything here.

     

    If they do there will be a plethora of clubs trying the same tact resulting in massive losses to the exchequer.

     

     

    HMRC more than any of us know this fact.

     

     

    An example must be made here and IMHO liquidation of THEM would put the brakes on any other clubs trying the same.

     

     

    HH

     

    /Bishop B

  25. Whyte on a return flight from Buenos Aires pure raging and clutching a suitcase full of money…

     

     

    RENOWNED worldwide for their sublime skills, Argentina’s footballers are a source of great pride to their countrymen. Yet few law-abiding Argentines hold their football league in similar high regard. Many of those involved in it are tainted by corruption, from club presidents down to security guards at matches. Money laundering in the system is thought to be rife. In a long-overdue effort to clean up the game, the government this month introduced new financial-disclosure requirements for the league and its teams. But these still pale in comparison with the scale of the problem.

     

     

    Argentina has been under pressure to combat corruption since last June, when the Financial Action Task Force (FATF), an international body set up to fight money laundering, placed it on a “grey list” of countries whose efforts to root out wrongdoing do not measure up. Although the FATF did not single out football, it had expressed its concerns about money laundering in the game in a report published in July 2009, which made reference to Argentina. Inclusion on the grey list carries an implicit warning that a country risks ending up on the FATF’s notorious “black list” unless it makes progress. Countries in that category have, in the past, found it extremely difficult to do business with any of the FATF’s 34 members, which include big economies like America, Britain and France, as well as Mexico, another Latin American heavyweight.

     

     

    Largely in response to the FATF’s criticisms, the government this month forced the Argentine Football Association, the sport’s national governing body, to adopt a new set of rules. For a start, it must file an annual report on every member of staff paid at least $13,800 a year (including bonuses, prizes and gifts), as must every club in the top two divisions of the league. They also have to provide details of payments they make to corporate sponsors, government officials and anybody else with whom they do business. Failure to disclose this information can result in a fine of up to $23,000. And if reports uncover evidence of illegal payments, the fine can be as much as ten times the sum involved. Unless the Argentine Football Association strictly enforces the new rules, the government says it will withdraw the $200m it provides each year so that football fans can enjoy televised matches free of charge.

     

     

    None of this is likely to be sufficient to stop the rot. Corruption has flourished due largely to the activities of the so-called barrabravas, violent groups of fans with interests in organised crime. The story of their rise dates back to the 1950s, when officials started trading free tickets for fans’ votes, which they needed to win election to a club’s board. As these fans grew more powerful and demanding, they began to take illicit control of club affairs like ticketing and the sale of refreshments during matches. Today, club directors often owe their positions entirely to barrabravas. Footballers are also under their control, sometimes splitting wages with them. Players from Boca Juniors, Argentina’s most popular club, even visited Rafael Di Zeo, the former boss of the team’s barrabrava, when he was in jail (he was released in May 2010 after serving more than three years for assault).

     

     

    Barrabravas have already taken some blame for the decline of several big clubs in recent years. The most notable case is that of River Plate, one of the oldest teams in Latin America, which was relegated to the second division last year for the first time in its 110-year history. Its demotion followed years of mismanagement and corruption—exacerbated by infighting between members of the club’s own barrabrava—that left it saddled with huge debts, forcing it to sell its most gifted players to wealthy European clubs.

     

     

    The new rules are certainly a step in the right direction for Argentina. Besides making it harder for miscreants to launder money with impunity, the government has given the Argentine Football Association an incentive to police the system effectively by threatening to withdraw its funding of television coverage. But having shown scant regard for existing laws and regulations, the barrabravas seem unlikely to pay much heed to new rules on financial disclosure. If Argentina’s government is serious about ending the corruption, it will need to confront the gangs on the terraces and in the streets. That is an altogether tougher prospect.

  26. Whilst reading the book by John Cairney ,The Sevenpenny Gate, (With thanks to DBBIA) on Page 33 it says that the first Celtic match in 1888 there was a player called Neilly Mc Callum from the Renton who went by the Nickname of The Shadow a right winger who scored Celtics first goal and had an Ice -cream named after him called The McCallum the dish was an ice-cream with raspberry sauce poured over it, as if to represent the first blood taken by Celtic

     

     

    How apt at this time

     

     

    trivialfact csc

  27. Just finished listening to John Beattie’s show today on the iplayer (rarely hear it as I live in England).

     

     

    I always thought he was a Rangers man and a regular at the bigotdome but it turns out that he was there on Saturday and it was only his third visit to Ibroke.

     

     

    In a discussion with Speirs and at regular intervals during the show he declared his astonishment and disbelief at the behaviour of the huns on Saturday.

     

     

    Even if he has only been there 3 times I am shocked that any individual with a modicum of intelligence who has lived in Scotland (he is clearly an intelligent man) would be surprised by what he heard on Saturday.

     

     

    Having said that it was good to hear the the truth being laid bare by someone who (by his own admission) comes from the Rangers ‘tradition’ and who has an audience (probably substantial in Radio Scotland terms) that goes beyond the football community.

  28. Voguepunter

     

     

    Busy day so just catching up.

     

     

    That is honestly one of the best posts I’ve ever read on these fine pages, truly excellent mate!!

  29. St Martin De Porres on

    All this week ive been wondering what my late father would make of the demise of Rangers

     

     

    Although a veteran of Lisbon and founder member of our local supporters club he was in fact a fan of Third lanark until i think around 1962. He blamed George Young ( ex rangers) for his part in the demise of his first love. Young had influenced the building of a new stand that made little sense to fans at that time or so he told me. In fact he had a general dislike for the ethos of the club under George Young although I believe as a manager he was quite successful. He eventually gave into the pressure of his 3 brothers to follow the hoops.

     

     

    He often cursed george young when passing him in the street. ( i grew up near were young lived)

     

     

    I hope my father is afforded a we smile….Karma

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