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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I’m not sure what the concern is here. The noises from D&P about the language being used and that liquidation doesn’t mean they cease to exist does indeed point to Paul being on the money here. I’m not sure why it seems a surprise to some, isn’t this what we were expecting all along?
HMRC’s ability to drive an objection means one route is Rangers being unable to exist through lengthy litigation, and the MSM’s complete hatchet job on Whyte on behalf of the Blue Knights means the Whyte route to pre-pack is less palatable than Paul Murray’s. How could that possibly be championed or accepted into the SPL now?
This is not a doomsday scenario at all, it is yet another reason to stock up the freezer.
Gordon_J backing Neil Lennon on 8 March, 2012 at 10:53 said:
Could it be that HMRC have deliberately kept th result of the Big Tax Case back to avoid a tipping point, knowing that Whyte would blink first? Or is that too Machiavellian?
Yes is is rather! The FTTT is not controlled by HMRC. As the word tribunal suggests it is independent. Indeed although a result is expected in April the FTTT has, if I remember correctly, until Jan next year before it MUST publish its findings.
Ernie sorry mate just noticed you posted same.
Ernie
It will come to nothing at all…. They will claim not enough evidence or something…
neveralone on 8 March, 2012 at 10:57 said:
Gordon_J backing Neil Lennon on 8 March, 2012 at 10:53 said:
‘Could it be that HMRC have deliberately kept th result of the Big Tax Case back to avoid a tipping point’
No, the tribunal is independent of HMRC.
.
#ProsacAndJelliesWhenRangersSurvive..
Nurse..
Summa
Paul67, a very sobering post, with the SPL and SFA inquires under way, if the fraudsters our found guilty and the SFA and SPL fail to act would UEFA step in, if Uefa did not act , what if anything could Cltic do?
Finding all of this bizzare.
KTF
Moonbeams 09:59
Excellent point mate , hope Celtic F.C and it’s supporters are ready for this .
We must fight this on every front , we must expose this cheating to the world and we must stick together to achieve this.
HH
Gordon
HMRC will get the result at the same time as Rangers and 10 days before publication, they are not in control of the timing, it’s judges of HM Courts and Tribunals Service.
In theory it could already have been delivered to the parties involved.
Awe naw
I know you love to tantalise us with your musings (and I do enjoy your contributions) but, after Paul’s article, I’m bricking myself so, just for today, as a favour, can I ask you to talk straight?
We need to hear the clearly expressed views of clever ghuys like you during these worrying times.
Paddy Gallagher
I agree. Patsies no more (no pun intended)!
HH
Richie, that’s an idea.
Chairbhoy, he is the only one in position to ‘buy’ the club, or flush HMRC, as it is.
Vinibhoy, we could but I suspect we are relying on HMRC.
Awe Naw, asking fans to desist is one thing, but walking over a cliff is something else. It’s Rangers who are supposed to be going out of business, not Celtic.
Folly Folly, cheers.
EmeraldBee\o/, I think vigilance for now.
ernie lynch, as I said, you and I know Celtic have nowhere to go, so would everyone else. Forget empty gestures and live in the real world. This vote is likely to take place next week. Celtic have to decide to play on 25th March or drop out. Bob Kelly never got close to such a decision.
Looking for another league is the only option, or, as you say, going out of business.
kitalba, yes, HMRC are in prime position to block this.
RaRaRasputin, yes, this is not how Whyte wanted the plan to unfold. Huge risks for all.
Cavansam, I don’t expect Uefa to say a word.
MWD, I hear you.
EKBhoy, you make good points.
Jelly And Gelato, the 75% rule only applies to a CVA, not a liquidation.
Malone19, not sure about a boycott. I know the manager is not keen. Celtic First, as someone once said.
merseycelt, Uefa are happy for us to leave for a league elsewhere, it’s finding such a league that is the problem, not Uefa. Resign without another league and it’s Celtic going out of business, not Rangers.
Calling the SPL’s bluff is all fine and well, but they will have a decision to made:
Celtic or Rangers, or
Call Celtic’s bluff (and we all know they have to chose to go out of business if they follow through) and perhaps get Celtic and Rangers.
!*!*
St Martin De Porres, yes they can.
O.G.Rafferty, celticquicknews@gmail.com
Sorry for not responding to other questions, need to fly.
First it was the Whyte Knight, then the Blue Knight, now it’s Night Night !
Fanandpatriot
Totally agree
Newco in spl = end of Scottish football
No matter who Celtic play I will be there.
When the games is corrupt and all rules are broken
Count me out/ game over
Jam67
ernie lynch on 8 March, 2012 at 10:58 said:
neveralone on 8 March, 2012 at 10:57 said:
We agree!
If the huns get away pre pack and off the hook im giving up on football. I feel sick at the moment just realising that their existence means more than anything.
!!Bada Bing!! Kano 1000 on 8 March, 2012 at 11:00 said:
First it was the Whyte Knight, then the Blue Knight, now it’s Night Night !
======
Great comment! Still only second best of the day tho!
BRTH
superb post- (as always)
keep them coming,
Paul67:
Is your latest article a wind up ?
Looks like we’re about to get a load of jelly and ice cream on our faces.
MBB smarter than all of us.
If this goes through, I will be ending any interest in Scottish professional football, and I’m sure I won’t be alone.
The cheats will have won. No point after that
Savo @ 10.01
Talking to TFOD supporters / glory hunters Ibrox would be the key to authenticity if a competing clubs sprang up.
However CW is not very popular at the moment so even if he wanted to build a lifeboat he would need to take a very distant back seat.
On the subject of competing clubs I fear WCS would become a war zone I mean just look at the past 40 years in Belfast.
UVF then UDA then LVF? then street by street affiliations.
The only winner would be PT or QP.
Regarding your suggestion on renting stadiums – what is the going rate?
How much did we pay in the 90’s for Hampden?
That was just seat rental, the SFA took all the food money?
My thoughts are £100 per seat per season all in.
That would make Ibrox worth £70mill.
£5mill pa rental at 7% return / yield for a group of real estate investors.
NewCo takes all the hospitality and catering.
As I mentioned before 3D chess is less complicated.
£18mill for Ibrox – bargain?
SFA put in a spoiler bid for Hampden?
SFA impartial if they have to rule on any TFOD issues?
How much is Ibrox worth to the SECC / GCC as an indoor arena / exhibition hall – £10 mill to put on a roof?
Looking at 100K ft2 of floor space in the pitch plus 50K seats / 150K ft2 in the 4 stands plus a marble staircase, listed frontage and a blue carpet.
Failing that how many razor blades could you get from DM’s folly – the big steel beam holding up the roof after the extra tier was put on.
Paul67
what business ?
The games a bogey if this happens.
I´ll take any bet you want and I will give you odds that the professional game in Scotland will end quite quickly if this comes to pass without any outside intervention. At the very least a blanket away day boycott would be necessary with Celtic plc becoming as truculent and as uncooperative as possible with every single transaction that is needed. If they dont THEY ARE DEAD ALREADY
Merseycelt,
encourage your enemy while he is making a mistake if you can.
Hail Hail
Looks like today court case is now being deffered to 29th March and so it goes on
BlantyreKev
It’s not a surprise at all.
My expectations were well managed by the replies I received from Neil Doncaster to my questions.
My position on this has stood since before any of us heard of Craig Whyte.
Any Newco parachute into SPL is unacceptable to me.
If Celtic prove to me they are going to and do do more than vote against it in whatever form the SPL vote take by taking legal action and lobbying UEFA/FIFA to get involved while looking for an escape route then I will gladly accept they are doing everything in their power. But of a singular NO vote at a rigged SPL vote is all that they do then I’m finished.
I will always be proud of being a Celtic supporter and what my club stands for but the day they no longer stand for my perception of what it means to support Celtic then I’m finished. No more throwing money at a corrupt/bias and morally bankrupt league.
MWD
oglach on 8 March, 2012 at 10:37 said:
‘Stay and fight – isn’t that the Irish way!’
#########
“To gain that which is worth having, it may be necessary to loose everything else” —Bernadette Devlin
——————
The Men of A Company 35th Irish Infantry battalion found their morning Mass parade interrupted, and within minutes went from holding rosaries to rifles as they entered the world of combat. This was to be no Srebrencia, though cut off and surrounded the Irish troops at Jadotville held their ground and fought.
‘Siege at Jadotville’ , the Irish Army’s forgotten battle
Brogan Rogan Trevino and Hogan supports Kano 1000 on 8 March, 2012 at 09:54 said:
Fantastic post. Thank you for providing some clarity and reassurance over the possible scenarios as this drama continues to play out. To be honest I was feeling a bit depressed after Paul’s article above.
AWE NAW @ 10 53
“nothing new so why get excited ”
Bang on !
It was always going to pan out like this. Liquidation / Newco and a brass necked attempt at maintaining the status quo
The only exciting thing is whether enough people have the will and the desire to say — Stuff your Hun hegemony -away and play with yourselves !
Decision time
Paul67 on 8 March, 2012 at 10:59 said:
‘ernie lynch, as I said, you and I know Celtic have nowhere to go, so would everyone else. Forget empty gestures and live in the real world. This vote is likely to take place next week. Celtic have to decide to play on 25th March or drop out. Bob Kelly never got close to such a decision.’
###
As I see it Celtic (the board) have two choices: resign and possibly face oblivion, or do nothing and undoubtedly be forever tainted by being complicit in wrongdoing on an egregious scale.
Sometimes expediency isn’t good enough.
ernie lynch on 8 March, 2012 at 09:58 said:
Paul67
Do you agree that the Celtic board could stop this in its tracks by calling everyone’s bluff and resigning from the league?
………………………………………………
We’d be crazy to do that without an agreed destination pre-arranged.
Ha ha
4 day hearing on 28th march
For collyer bristow money £3.6 million
Will be months before they get decision
Havingapartywhenthehunsdiex csc
CVA ChallengeOne day before the 28 day period was due to end, Bates altered his offer to ensure it was not challenged. He altered the clause stating that if Leeds made the premiership in five years then the creditors would receive an extra 30p in the pound, extending this period of time to 10 years, and increased the amount they would receive from 1p in the pound to 8p in the pound straight away.[24][25] The 28 day period was due to come to a close on 3 July 2007 at 4pm (BST).[25] With just minutes to spare HM Revenue & Customs challenged the CVA. This left a very uncertain future and possibly liquidation of the club.[26] Bates had previously stated “If there is a legal challenge, it could take two or three months to get to court and be decided. In the meantime, who is going to pay to run the club? So far it’s been funded by the ‘new Leeds’, but if there is a challenge, the ‘new Leeds’ won’t do it because it’s a risk. The implications are that the club would close down. It would mean liquidation. Leeds United would cease to exist, and the loss of 500 jobs would be a further drain on government resources.”[27] With the intention to challenge the CVA announced by HMRC, Simon Franks announced he was determined to buy Leeds United through his Redbus investment vehicle. He commented “We are absolutely committed to gaining control of Leeds United and to rebuilding the club, We have already told the liquidator that we will cover short term liquidity problems and that will be standing by our bid and will increase it given certain information. Our bid was significantly better than Ken Bates’ and we are in a position to move very quickly if we are offered the right commercial terms.”[28] Following the challenge by HMRC the club was put up for sale by KPMG, with only offers before 5pm (BST) on Monday 9 July 2007 being accepted.[29] Former Leeds commercial director Adam Pearson also stated he intended to make a bid for Leeds however Ken Bates has stated that he will take legal action if any other bid than his own is successful.[30] After the deadline had passed it was revealed that Simon Franks and Simon Morris had joined forces to bid for the club.[31] After Much deliberation KPMG revealed that once again they had chosen Ken Bates’ bid.[32] The league eventually sanctioned the sale to Bates without the club going through a CVA under the “exceptional circumstances rule” but imposed a 15 point deduction due to not following football league rules on clubs entering administration.[33] On 31 August 2007 HMRC decided not to pursue their legal challenge any further therefore accepting Bates’ final offer.[34]
please excuse my ignorance, but if they pre pack does that mean no european football for 3 years
That makes for dispiriting reading: you really think we’ll be the only ones to object Paul67?
If that’s the case we need to threaten to resign.
Just read the article. Talk about a kick in the nads.
My ice-cream is melting.
Tell you what, if the shyster whyte pulls this off, the hun hordes will love it. He’ll go from zero to re-instated hero!
Dont forget, these people have no shame or dignity!
HH
Whenever SFA/SPL get round to considering whether to allow a Newco in, the view of Celtic FC must be a major consideration.
Remember Scottish football needs Rangers? Well if they’re allowed back in, they will be severely weakened. Scottish football then needs Celtic, and even more than before. Doncaster and Regan better get their notebooks out and start taking Peter Lawell’s dictation
25thmay1967 on 8 March, 2012 at 11:10 said:
yes
Hail Hail
Paul re newco being shoehorned into the SPL would require Dunfermline voting to have themselves relegated or indeed Hibs…Yorkston and Petrie would be dead in the water with their fans if they voted for newco in. HH
Ernie Lynch 10.55
The old co can still be stripped of it’s honours and they can be rightly awarded in retrospect to the cheated runners up.
The cup’s would be more difficult to appoint due to them having cheated in every round.It would have to be the beaten cup finalists who are crowned cup winners.
It would provide some redress for there cheating.
It would be of limited harm to the Newco (rightly?)
The other cheated clubs would also be for it.
The record books can be re written as they were with Ben Jonson.
The issues of integrity and the power of money can be separated in this instance.
Money can talk the Newco back into the SPL,and integrity can ensure that the Oldco is rightly stripped of it’s corrupt titles.
That is on the presumption that they have not properly registered their players.
TT