We have discussed the Craig Whyte narrative here in some detail since October last year when we first suggested he was preparing to liquidate Rangers and attempt a prepack recovery. I expect this to be put into motion today.
You can ignore any meetings Duff and Phelps hold with prospective buyers of the club, this is window dressing. Craig Whyte and his partner company, Ticketus, are the only people in position to make a viable offer for the business. They hold security on the stadium and Murray Park with Ticketus owning the first 26,000 season tickets (approx.) sold for the next three years. It would cost approximately £40m to release Ticketus security plus whatever is owned to Whyte. No one will offer to cover these costs.
Expect Duff and Phelps to conclude their meetings and report that they are in possession of a genuine offer from Whyte/Ticketus, or their proxy, to buy the assets of the company. The proxy may be required as pretty much everyone who has touched this club in recent years would not be considered a Fit and Proper person and would fail the requirement not to be involved with an insolvency within the last five years.
The offer for all assets will be for a nominal amount and will be conditional on all legal action against Whyte or his companies being dropped. Duff and Phelps will accept the offer.
Whyte cannot afford to allow large scale redundancies as he needs to be able to sell these players in the summer or play those he is unable to sell. With the players not agreeing to a short-term cut in pay, he has to make his move now, despite the enormous risks involved in going early.
Duff and Phelps could have made redundancies 24 days ago and ensured the club would be able to finish the season, or at least survive until the tax verdict, but retaining the football squad was an important part of Whyte’s forward plan – and Whyte’s notional offer will have been known to them from the beginning.
HM Revenue and Customs will take a bath for their £75m, Whyte will emerge with all property assets and the football club, although the club will carry the significant burden of selling tickets for Ticketus.
The SPL board will have to vote within the next week on whether or not to allow Rangers Newco to continue with the same league membership as Rangers FC. Whyte will have to take an enormous chance that his proxy will be presentable enough to allow them to turn a blind eye to the enormously inappropriate behaviour.
The vote could go either way but I expect Celtic will be the only club to object.
The issue is complicated by legacy issues. Neither the SPL nor the SFA have acted on the improper registration of players matter yet. If any of the current Rangers team had their current season contracts registered with the alleged improper procedures, games involving those players will have to be awarded a 3-0 defeat to Rangers.
The SPL will have to come up with a verdict on this matter within days or else revisit the matter in a few weeks, after deciding on what to do with Rangers Newco.
The SPL must also consider the issue of precedent, the consequences of enabling a club to disenfranchise a £75m creditor cannot be underestimated.
HMRC may also have an input here. They stand to lose most from this deal and may seek court intervention, arguing that liquidating the company prior to the FTT verdict is unnecessary and prejudicial to their interests.
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Awe Naw.
An apt analogy. The Legion Of Doom are very much in the house as is the Undertaker.
It looks as if we are entering the end game very quickly. A tawdry attempt to set up a Newco that will act as if it is the current Rangers FC but without the debts. Stiff the taxpayer and carry on regardless.
But this relies on two things: the acquiescence of Scottish football and the tacit agreement of the creditors. And we all know who the largest creditor is.
Can HMRC stop this deal going through? Can they go to court to seek an interdict on the basis that the administrators are not acting in the best interests of the creditors?
Boys why should we walk away, let’s get the boycott out there it’s our only option.
Paul67:
I just asked the question over on RTC a wee while ago regards the HMRC, via court injunctions, still being able to put obstacles in the way of any newco. Even for years depending on the bitterness of their will. Am I correct in thinking this is so?
Paul67
I understand the principle, but I don’t think it will fly in this case. Whyte and the Administrators have underestimated the level of scrutiny they are under, and as you point out, the application to the SPL is complicated by the historic player registration issue. Clearly HMRC will challenge any such deal and D&P have to be able to demonstrate why it was in the best interest of the creditors. As far as we are aware, they have not yet held a creditors meeting which might have been a good starting point for them in establishing support for this course of action.
Pity we won’t get to stuff them on the 25th now.
Paul67
And what of UEFA?
Will they ban Rangers Newco and Scottish teams from European Competition forever and take sactions against the Scottish National side?
Any Top level division which offers European football as a prize to be gained can’t be seen to be bent in favour of one club and one club only.
Paul67
I will be expecting more than a singular ‘No’ vote at an SPL meeting from Celtic. If there is no legal challenge from Celtic and/or public lobbying of UEFA/FIFA to step in then I’m finished with it all after this season.
No more wasting my hard earned cash on a financially and morally corrupt and bias league.
MWD
I thought you could only resign from the league by handing in two years notice and if not then be prepared for court. (which might not be such a bad thing)
Paul 67
Chill…
The chances of Whyte having a proxy presentable are remote, I believe that when the SFA and SPL investigations are complete Dignity will be placed in a relegation position ………
…… The threat by Duff & Co not to fulfil fixtures is just that , but it is to the players who will either toe the line or Dignity will suffer the humiliation of not fulfilling fixtures ….. so I would expect job cuts soon at Ipox.
Given the cumulative carnage at Ipox, a liquidated club trying to blackmail the SPL to complete its fixtures will not wash…. And they will be thrown out the SPL
IMO the various football authorities (SFA SPL) were waiting for the legal judgement and evidence from the FTT as a basis for throwing the book at Dignity, as this would be a copper bottomed guarantee that their findings would be extremely difficult to challenge.
The delay in the FTT has caught everyone out , MBB’s behaviour well , no rule book had been written to cover that , therefore the SFA SPL will need to go down the monthly financial reporting route you described from the IFA yesterday.
They are toast and a bunch of financial wide boys are not going to save them.
Henrick1
Why should we waste money on a fixed league?
MWD
Paul67 on 8 March, 2012 at 10:13 said:
In all seriousness I would rather Celtic went out of business than be party to what is being proposed. Death before dishonour, if you like.
Though I do not think it would come to that.
I think the other clubs, faced with having to chose between us and the huns, and with the eyes of the world upon them, would see sense.
Even if they didn’t and we did resign I think UEFA would be prevailed upon to allow us to enter another league, possibly the Irish league. Otherwise UEFA’s FFP policy is dead in the water and they are shown to be impotent and without credibility.
Paul67 This is a scary prospect, but there are many unknowns even in this scenario.
1) To prepack, Rangers have to first liquidate. D&D cannot just take the decision to accept a prepack offer arbitrarily. They need 75% support from creditors I believe, and Ticketus are not a creditor.
2) Former directors can’t be involved with the newco I believe. They could get round this by Ticketus owning the club, and Whyte leasing the assets back to them.
3) I believe when liquidation occurs in a member club, the player registrations automatically revert back to the SFA. (It would be great if someone on the blog could confirm this.) So players would not be part of the prepack.
4) Given the big tax case is in ‘appeal’ i.e. the £49M tax bill has already been served, and Rangers are appealing it. Given the magnitude of the bill, surely HMRC could seek an court injunction on any liquidation event, OR the freezing of the assets until the outcome of the FTT. (Any legal eagles here know the feasibility of this? )
And assuming all these issues can get resolved, re-admittance back to the SPL is not a done deal. Is there any precedent of a new club being admitted into the top tier of football in any other country ever?
Well Craig Whyte has a set of balls on him like Buster Gonad
Squeak Squeak
hen1rik on 8 March, 2012 at 10:20 said:
‘Boys why should we walk away, let’s get the boycott out there it’s our only option.’
A boycott in perpetuity?
Talk sense.
Paul67
If the other clubs were to declare their intentions to vote in a NewCo – would you support a bhoycott?
EKBHOY @ 10.24
Sitting here in Mossneuk NOT enjoying my coffee due to Paul’s article then you come along and put a brighter slant on things. May you be correct and our illustrious host be wrong on this matter.
The Messi/Pele/Maradona debate on Talksport now,Peter Reid mentions Jinky as being up there with the best.
Gordon_J backing Neil Lennon on 8 March, 2012 at 10:20
UEFA and the ECA would have to acquiesce also.
as well as the UK government
In my book it would mean the end of the ECA organisation. The fact that they still have John Mc Lelland on their executive board would not be an issue for them but Platini would have to resign with UEFA or at the very least do a complete turn around on the FFP
Scotland football would become a Mecca for Russian Oligarchs and the criminal element.
The reason why Craig Whyte has to act so quickly IMHO is that legislation will soon be passed (this summer) that will give HMRC legal powers to prevent them being stiffed in this manner
HAil Hail
Paul
Awe naw’s right. If Celtic say no to playing without the huns being penalised, there would be no SPL (with integrity) without us.
If they dont concede, Surely we can approach UEFA and ask for permission to play elsewhere?
In any event, our club should have been looking at this scenario as a potential outcome and should have already made relevant enquiries. If they haven’t, they have been negiligent.
Surely, someone would have us. If the only option was the League of Ireland then we should go there.
I’ve just called the SPL’s bluff.
Why cant you countenance the club doing this?
Do you honestly believe that Hibs (Rod Petrie), the mad Lithuanian and Dunfermline (who would be relegated) will go along with this proposal?
Great article, BTW!
HH
Never mind the premiership!
If the Orc get away with this scam the premiership clubs will want to come up here!!!
BRTH @9.54
excellently put. I posted less eloquently at the end of the last article in the same vein. The Revenue are still the only serious decision maker here. They will not simply accept a Gotcha.
I also disagree with Paul’s analysis re Whyte/Ticketus. There is no doubt that Ticketus will be making the decisions but I don’t believe that they will want to be involved in any ongoing disputed position.
The only way they will go for pre-pack is if they can sell the assets on and they are confident that they can shake off HMRC. There is too much doubt on all fronts. This is not to even discuss how they will make the necessary cuts in costs, deal with known reduced revenue streams and have very likelihood of the Loyal Bears disappearing like snow off a dyke when they are not winning every week.
No to NewCo is Malone19 on 8 March, 2012 at 10:28 said:
‘Paul67
If the other clubs were to declare their intentions to vote in a NewCo – would you support a bhoycott?’
At the moment Celtic fans would sell their granny for the chance of paying £42 to the huns administrators and you’re talking about a boycott?
So the old switcheroo nears completion.
Years of court cases ahead for Whyte but the new company will have been formed and operating by then.
The SPL and other teams are our hope here.
Paul/Sharp minded people,
Surely the HMRC or Duff and Phelps can/should force the sale of the Bigot Dome to pay off creditors? Unlike any other club that go into administration Glasgow has an empty 50,000 seater stadium just sitting there for the majority of the year. I cannot see how they could stiff their creditors and be allowed to stay at the Bigot Dome when a perfect alternative exists. Interesting note, when Scarborough folded in 2007 two clubs emerged and they still fight over who is the real Scarborough and who owns the legacy. Caould we have the same scenario.
HECTOR – Moonbeams WD. Kano 1000 \o/ Supporting Neil Lennon 100%. Eating Jelly & Ice Cream. Awe Naw… on 8 March, 2012 at 10:23 said:
////
Without in any way being insensitive to the sad passing of, Paul McBride QC, I think that, without our legal guardian…the establishment will waste no time at all in letting it be known that, Celtic FC/PLC are now sitting ducks!
Heaven help us – CSC
HECTOR – Moonbeams WD. Kano 1000 \o/ Supporting Neil Lennon 100%. Eating Jelly & Ice Cream. Awe Naw… on 8 March, 2012 at 10:25 said:
Henrick1
Why should we waste money on a fixed league?
MWD
share
Mate I totally agree with you but why should we suffer.
We always wanted the league so now its in the bag we can get the boycott out there and show Scottish Football we mean business.
Paul
Can D+P liquidate having made NO effort to reduce costs and prove that the buisness can run sustainably? I mean alot of people keep reminding us that D+P have to adhere to strict regulations and codes of practise.
Shocking
merseycelt
it is important FOR US that the SFA & the SPL attempt to parachute a newco into the SPL without worry.
Keep The Faith Bhoys
Hail Hail
Whatever happens, don’t desert your own club- don’t let us become another (indirect) victim of this.
If this comes to fruition we mobilise- there are several forms of action/campaigning that we can embark upon without hurting Celtic and still bring this to the attention of higher powers.
They will never sweep this under the carpet as we won’t allow it. But we won’t do that by waling away from our own club.
HH
Paul67, BRTH et al.
Can I offer a couple of points that go against some of what has been said.
CW – Useful idiot / patsy / bottom feeder.
He has no long term plans in all of this he is a nickel and dime man looking to bleed the corpse dry.
DM – Needed someone with a pulse to take the liability that the TFOD had become off his hands, nothing was needed regarding “fit and proper person” just a numpty to get some distance between him and the BTC and keep the bank sweet.
DM is scared fartless that his past business tactics get out.
Skeletons in the closet – there are so many there is a bow in the door.
EBTs – Only the start.
Catering firm ramp up.
The infamous stationary contract.
Agent pay offs – Just ask MB how long he had to wait for his “hoose” in the sun, that sorry little episode tells you everything you need to know about the way things worked with DM. He is to blame for the way things turned out everyone else is a bit part player.
As for AJ and his bleatings I think that he is a bigger fan than he is a DM acolyte and he could see that the interests of the club were second to DM making a quick exit.
Consequently I don’t think CW is currently trying to float a lifeboat to save / rebuild the TFOD.
He is only annoyed that he could only lift 9 or 10 months of management fees / sky high interest from the dry husk of the TFOD.
He is only worried about his £18 mill from the floating charge and how much he will have to pay Ticketus to keep them sweet / at arms length.
Ticketus bought TFOD FC tickets.
Ticketus have security with CW / TFOD Group.
TFOD (NewCo) FC are in the clear.
However the tax avoiders who put there bonuses into this specific Ticketus vehicle are the ones who are sweating the most.
What goes around …
How many LBG bonus monkeys put their “legalised theft from the working class” into this specific Ticketus EIS vehicle?
As I have mentioned before D+P are just trying to flush out any interest in the club as a going concern. I fear that they are just going through the motions being seen to be doing something as their fees mount up and the cash runs out. If they start to put the peddle to the metal it is because the working capital is starting to run down to a figure close to their fee total.
Unfortunately it all now fits a pattern.
DM – needs to get clear of the train wreck that is the TFOD.
CW – complete muppet / patsy – totally useless.
D+P – going through the motions.
Consequently I fear that the TFOD will sign out with a flurry of hot auction room action.
The way forward will make 3D chess look easy.
Bhoys lets drop all talk of resigning from the SPL. Where would we go? It will also accomplish something the Huns have dreamed of for decades – No Celtic FC in Scotland. Why should we be penalised for their wrong doings? Stay and fight – isn’t that the Irish way!
EmeraldBee\o/ on 8 March, 2012 at 10:29 said:
No problem … Happy to help!
Relax and enjoy the carnage
Chilledcfc
*walking
Brogan Rogan Trevino and Hogan @ 09:54,
An excellent synopsis – Anyone dealing with NewCo R@ngers, Phoenix R@ngers or anything other than Div III R@ngers will need a lang spoon!
savo01 on 8 March, 2012 at 10:33 said:
Paul/Sharp minded people,
‘Surely the HMRC or Duff and Phelps can/should force the sale of the Bigot Dome to pay off creditors?’
That in effect is what they are proposing. They would be selling the huns assets to pay off creditors. They will argue that selling them as a complete package to a newco will realise the best price.
“Two things in life are infinite, the universe and human stupidity, and I’m not sure about the former.”
-Albert Einstein
HM Revenue and Customs will take a bath for their £75m?
will be conditional on all legal action against Whyte or his companies being dropped? from whom?
much as many would like we will not resign but we can botcott away grounds
what about money owed to hearts, d/utd and others, will they really vote them back in without settlement
will dunfermline vote for relegation
how scabby does that sign above the door at the future tescos already look
Paul, could I have your email – I have someone from the London-based media who who like to speak to you