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.
Issue six of CQN Magazine, the Fit and Proper edition, is set to become a landmark collectors item. You can browse the magazine online here but you can buy your own hard copy by clicking on the link below. Read with 20-20 vision…..
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Looking at this from another angle…
If it is deemed (by everyone outside of CFC) that the SPL and Scottish football cannot survive unless Rangers are allowed to write of £50M+ of deliberately unpaid debts and (likely) retain 10-20 trophies that they “won” whilst, and ostensibly because, they did not observe the same rules as their opponents, then Celtic should resign from Scottish football with immediate effect.
Surely if the corrupt, rotten-to-the-core, fabric of Scottish football cannot survive without them, and, as has been suggested, a number of other clubs would go to the wall if the cancerous cheats were expunged from the Scottish leagues, then the Scottish game and those same other clubs would be even harder pressed to survive without Celtic.
Given that the likes of Dundee United and Hearts have not been paid monies due to them from Rangers for games already played, surely they would lose far less by losing future games against the SPL’s default champions than losing future games against Scotland’s biggest and richest club? As things stand one can understand how a vote in favour of admitting Glasgow Rangers (2012) FC straight into the SPL is actually to the benefit of most other SPL clubs. But, if it were effectively turned into a them or us vote, how would that change things?…
Roll on the Celtic Globetrotters’ two year world tour, until their application to join the English Football League is accepted. I’ve already chosen my seat for the game at Valley Parade, Bradford.
jock steins celtic on 8 March, 2012 at 13:05 said:
who is Ralph Topping ?
CEO of William Hill. That’s William Hill sponsor of the SFA Scottish Cup.
Conflict of interest in a strong newco in SPL?
Bunburybhoy – I don’t have an agenda At all and you don’t talk much like a Celtic supporter to me.
The board have my support when they continue to do the right thing which incidentally included when they stood behind Lenny when many Celtic supporters were calling for his head.
I won’t resort to your vulgar kind of words by the way, although I am well capable of doing so.
It was always likely that a Newco would emerge and a Newco operating on a sustainable basis will be nothing to fear. It is a Newco gaining entry into the SPL that is the problem.
And a Newco being a Newco have no right to start at the top or be parachuted into the SPL. They should simply be told to apply for the consequential vacancy that will arise in Div3 as a result of Rangers demise.
A couple of years climbing back up will give any litigation time to be settled and there will be no doubt Rangers did cease to exist and so taxes could not be paid.
However in the scenario painted no judge would be convinced that a NewRangers with the same player pool, playing ON in the same Divison of the SPL in the same colours with the same support using the same season books to gain entry that they paid to Old Rangers are not in fact OldRangers. This is the case HMRC can make and until that is settled there will be no SPL entry and NewRangers will have to apply for the consequential vacancy in Div3 if they want to play football without the unapid tax bill being applied to them and liquidating them also.
Then there is UEFA who inthe interests of sporting integrity might just take the view that there is unpaid tax attached to NewRangers and until that is paid there will be no UEFA football for the foreseeable future, not just 3 seasons. They will also be unhappy about any solution that undermines sporting integrity and the one in Paul’s scenario ticks all those boxes.
In Paul’s scenario what Rangers are attempting is blackmail to add to their other crimes. It is a plan conceived by criminal minds guilty of public theft.
A Newco starting off in Div3 is the only acceptable answer and if there is a vote for anything else Scottish football IS finished.
Paul67 –
You may be trying to play down peoples expectations, but I don’t think Celtic will be alone in objecting to a Newco jumping straight into the SPL.
And apart from anything else, the forming of a new club is very far from straightforward – especially as Whyte owns Ibrox and the training complex. What lies ahead for him are legal battles aplenty – the whole mess could take years to resolve.
Rangers are finished and what will emerge as a replacement will not take any place at the top table – no matter how much the Scottish media wishes for it.
Philvis
“Badder than Kenneth More in “Reach For The Sky”. ”
Coffee-Screen type incident at this end.
Brilliant.
Where would Celtic go?
Where could we go?
Deep down at the bottom of this cesspit is the horrible truth that any foolish and ultimately empty gesture by Celtic could result in our club’s demise because of their rank rotten actions.
This is not an admission that we need them – far from it.
But it is a caution to us all that our board might have to do what’s best for our future, our existence…
U
zu Info
Pre pack administration and possible problems with the HMRC
Pre-pack administration or phoenixing can be a useful business rescue solution. However, businesses may be
prevented from taking advantage of this option because of an HM Revenue and Customs requirement for a VAT
deposit.
If a business is in financial difficulty, one of the solutions which may be considered is pre-pack administration
(commonly known as phoenixing). Pre-pack administration enables a new company to be set up which is then used to
buy the assets of the old failing business. The new company can then trade on without the burden of the old
business’s debts.
The pre-pack process is normally implemented by the old company directors with the intention that they will be named
as directors of the new Phoenix business. Generally this does not cause an issue. However, problems may arise
where the old business has significant tax debts.
Where a director of a business has a history of non payment of tax debts, it is possible that HMRC will not grant VAT
registration for any new company that they are involved in without the payment of a security deposit.
Unpaid tax debts part and parcel of phoenixing
A history of no payment of tax is of course extremely likely to occur in the case of pre-pack administration because the
directors of the old business are the same as those starting the new. The old business will have been liquidated
leaving behind unpaid tax debts such as VAT and PAYE which are thus associated with the directors.
It is possible that the requirement for a VAT security deposit can be avoided if the new phoenix company is set up
with different directors. However, this situation is unusual as it will be the old company directors who instigate the
process and want to operate the new company. As such, the requirement for a VAT deposit must be anticipated.
Value of required deposit will vary
There is no prescribed formula for calculating how much the required deposit will be. However, it is likely to be equal
to the amount of VAT which would have been paid by the old business over a period of 4 to 6 months. If this sum
cannot be paid, then the future of the new business will be in jeopardy as it will be illegal to trade.
It is important to stress that a VAT deposit will not always be required and will be down to the discretion of HMRC. If
such a deposit is payable, this will not in itself cause a pre-pack administration process to fail as trading can
commence when it is paid. However, where funds are tight it is certainly an important factor to anticipate and build into
the budget requirements for the new business.
TBB
If you have given your view on these most recent events, I have missed it. Can you please say what you think is going on and what is likely to happen next, or point me to where you have already posted your opinion?
Merci.
jock steins celtic on 8 March, 2012 at 13:05 said:
who is Ralph Topping ?
Choccy’s brother…sorry with all this jelly and ice cream talk. we could all do with some choccy topping :-)
Paul67 – one or two comments about simplifying the reports
As a passionate Celtic supporter who is often out the country your site is my fist point to get the info
I can only talk for myself – its top stuff always interesting always on the button
Keep it up and thank you
67ECW
Off oot again!!!!
This is depressing.
Paul 67
You have a lot to answer for with that – toxic article :o)
May God Bless ‘Every’ Celtic Fan
Hail! Hail!
Our pal Stuart Dougal (of KPMG) has been called into a meeting about Rangers. So it’s all happening.
A little bit in the Daily ranger today about the lights being sold off. The lights being the ones that make the grass grow. Well they haven’t sold off, they have just been moved to Hampden so the grass can be prepared for the League cup final.
So during everything that has been going on in the past few months, the SFA are still calling up Rangers and asking them who much money do they want so they can hire the lights!
You couldn’t make this up!
This is a huge thing for Celtic they will be watching developments from Ibrokes closely I believe if a new co Rangers is formed and they get straight into the SPL Celtic stand to lose thousands of supporters.Why would you pay good money to watch Scottish Football when you know cheats get off with little or no punishment and how long before they would be cheating again.We are at a cross road for Scottish football delt with honestly and properly it can be much stronger but if it favours making it easy for Rangers newco in my opinion it will be the begining of the end.H.H..
Alasdair
Further to Falkirkbhoy’s post, can you please bring us up to date on the discussions around Ross County’s eligibility for SPL membership if, God willing, they are promoted? If the ground needs upgrading, do you know how much it will cost and how many friendlies against Celtic it would take to raise the necessary cash?
Uly
NO QUARTER GIVEN ON A TV DEAL and a permanent away day boycott and Celtic acting as truculent as is possible about ABSOLUTELY everything is not an empty gesture.
Hail Hail
@kerrydalestreet: RT @huddleboard: Lord Nimmo’s recommendation = Booking for Hooper, Penalty for Rangers.
Gordon_J backing Neil Lennon on 8 March, 2012 at 13:02 said:
Has there ever been a precedent anywhere in the footballing world of a club being liquidated and directly replaced in the same division by another club during a season?
———————————
If you were HMRC would you not take legal action to stop such a vote or signal that you would be taking legal action to deem Newco Oldco and continue to pursue your debt?
The political fallout from Rangers escaping all tax liabilities will be enormous and the guys at HMRC will have to be seen to be doing all they can to sfaeguard the public purse.
Who cares what happens to them,they will never be the same again.Dont stress about them
Anyway regarding our four legged friends
Bit of word for a horse at Clonmel 3.40,big priced outsider so each way bet
Its very appropriately named
Hang Up My Boots
It will be trying
HMRC are rubbish in this, why aren’t they throwing there considerable weight around, talk about low profile, there invisible. This morning at the High Court they only asked for 2.8M of the 3.6 available, why didn’t they claim the lot? There worse than the inept administrators. We’re missing a huge piece of the jigsaw here, everyone seems to be pussy footing around to scared to kill them off, what or who are they scared of I wonder.
Joe Filippis Haircut on 8 March, 2012 at 13:04:
I don’t think this is a test case. HMRC are simply looking for their money. The case went to court at the request of Rangers. HMRC had already invoiced them for monies owed.
But you are right that HMRC will not do them any favours. And why should they be expected to? The Huns should pay their debt … it’s not rocket science.
Awe Naw
Don’t fall out with any of that for a second. But people calling for us to leave the SPL???
Baby and bath water.
u
The Battered Bunnet – :) (thumbsup)
and eventually some of the eejits see the light…turn round ,stick two fingers up to the tax dodgers and say .. “tough”
HMRC must have legal resources to stop any avoidance of dues.. Moreover a direct call to HRH telling her some of her subjects cannae be bothered to pay but still want to use her hospitals, schools, etc would be nice.. A few wee knighthoods returned and those deemed unfit sent packing..
HH happy days
BBC are still reporting that the Rangers Administrators are still hoping the top earners take a wage cut !
Whyte is a feckin (evil) genius ! Sign the players on long term contracts on mega wages and then within a few months cut those wages to less than their previous contract and blame all on someone else !
ulysses mcghee on 8 March, 2012 at 12:54 said:
Guys – I think you have to consider the fact that if they can wriggle into a newco skin and relinquish most of their debts then you’ve potentially got heavy hitters like Douglas Park etc who could (free of Whyte or Murray) easily be of a mind to fund the newco enough to be ‘able to challenge’ the top team/s in the SPL.
More importantly there will be a ‘will’ to do so…
==========
First of all you have to acknowledge Douglas Park has a good business. It is however not a business that would appear of sufficient size to fund the type of shortfall required at Rangers if they go as a Newco
His business is cash light….with no cash reserves and an £8 million overdraft. Now don’t take this as a criticism, It is not. He has been a prudent and sensible business man for many years. I would very much doubt that he would risk his own business by borrowing heavily against that. This would leave personal wealth, and no doubt he is very well off. However well-off people generally have a lifestyle to match , with significant overheads, as we have seen in the claims of footballers who earn millions still having mortgages and car loans
Rangers should be very grateful if someone like Douglas Park throws a few million into the pot, however to truly provide a healthy , strong, vibrant and powerful Rangers will require someone with very deep pockets indeed.
The Moon Bhoys
HMRC may have been claiming for VAT that should have been paid following the sale of tickets to ticketus.
Presumably as the money related to the sale of tickets, HMRC couldn’t claim for any more than they were due on that particular transaction.
Mort
WITS – cheers !
Auld Neil Lennon,
If I was HMRC I would be taking every legal action that I could to avoid a company demonstrating that it can successfully avoid paying tax.
If Craig Whyte were so smart and not a desperate desperado, he would surely have failed to fall for the Tommy in Glasgow hoax, or at least have hung up when Tommy at the beginning of their conversation uttered the immortal line: “I’m behind the curve ball here Craig.”
if we the celtic fans would consider abandoning scottish football en mass what of the other scottish clubs fanbase…they too will turn their backs on the “product”.
We have to distinguish between what the other SPL clubs directors want and what the fans want- if possible there has to be a concerted effort for mutual consensus amongst all the fans in SPL and an organized public vehicle to communicate if not propagate that consensus.
One of the problems for us is that the SPL are “de jure” a PLC and I think the SPL board can decide who or who not to let in subject to the SPL rules and FIFA regs etc. I think they can simply change the rules by a majority vote to let NEWCO in and there isnt a great deal we could do about it if the board and the other clubs vote in NEWCO’s favour.
James Cook @BBCJamesCook Reply Retweet Favorite · Open
£5.9m is missing from an account linked to #Rangers, the high court in London hears: bit.ly/x4SjJT #RFC
I think what many are failing to understand is that the VAT deposit that HMRC will definitely 100% require from Craig Whyte makes them preferred creditor in everything but name.
But shoot it in the right direction (yeah yeah yeah yeah-ee-yeah)
Make making it your intention (ooh yeah, oh yeah)
Live those dreams
Scheme those schemes
Got to hit me (hit me)
Hit me (hit me)
Hit me with those laser beams
Hail Hail
This article has the touch of the succulent lamb about it…
Blue Knight Paul Murray wrestles over next move
By HUGH MacDONALD
Share 8 Mar 2012
THERE are nights when he sits doing the school’s accounts.
Now he is the leader of the Blue Knights and his homework is to draw up a viable plan to rescue Rangers.
Paul Murray, 47, is a businessman who is a director of investment companies and of a firm that sells young plants. He is also the governor of a private school in Melrose. The major question now is whether he is the man to lead the revolution at Rangers?
He is an unlikely hero. He has, of course, been around the club for some time. He has, too, had moves for the club rejected. He has been a determined suitor, but will he win the prize?
As administrators made dire warnings about Rangers being in danger of not fulfilling their fixtures, Murray was last night making the final touches to his bid to save the club from almost certain liquidation.
He is aware that he needs not only the support of businessmen but the approval of fans
‘He is a quiet, sober man,’’ said someone who has had close dealings with the accountant as he has stalked the ailing Rangers.
‘‘He is cautious and does not seek the limelight. He does not enjoy the intensity of the glare of publicity at the moment,’’ he added.
Yet this unassuming personality may have a dram atic role to play. He needs help, however.
‘‘Murray is wealthy, but not Rangers wealthy,’’ said a business associate. Murray has a substantial home in Edinburgh and an extensive family house in Melrose.
He is a director in R Delamore, a company that sells young plants, and MG Investments but his reputation is probably best illustrated by his place on the board of St Mary’s School, Melrose. This is an independent, co-educational preparatory school with pupils aged from two to 13.
He is moving on to a more testing playing field with his tilt at Rangers. His lack of overwhelming wealth and his quiet personality ensure that Murray needs partners. When losing out to Craig Whyte in his attempt to buy Rangers last summer, Murray made it clear he did not have the personal wherewithal to take on Rangers and was keen to bring on board other businessmen.
‘‘He is aware that he needs not only the support of businessmen but the approval of fans if he is to succeed in ousting Whyte,’’ said an associate.
This is the nub for Murray. The major currency, apart from the folding stuff, in any takeover bid will be trust.
Murray is aware that he can be seen as part of the problem as he has a history on serving on a Sir David Murray board.
The link with Murray the accountant to Rangers stretches back to 2004 when he helped finance development of youth players at Murray Park.
But it was formalised when the former Deutsche Bank high-flyer became a non-executive director at the Ibrox club in 2007.
He advised Rangers on business development and also served on the club’s youth development board.
He was respected as a cautious, quiet voice in a boardroom that was dominated by Sir David but he was also crucial in helping reduce the debt to Lloyds Bank when cost-cutting measures were demanded by them. He also believed that there should have been tougher negotiations with the bank in the event of a takeover.
He opposed the bid by Whyte, saying: ‘‘It is vitally important every fan understands what could be about to happen to our club. The wrong move now could lead us down an even more difficult path.
“The fans have a right to know what is happening and to judge bids on their merit.’’
These words now have a compelling resonance but Murray paid a predictable price by being removed by the board within weeks of Whyte taking over. He had come second in a race that only rewards the winner.
He has the chance now to take the main prize. Murray last week sat anonymously in the stand to watch Rangers lose to Hearts. His next entrance to Ibrox could be considerably more high-profile.
‘
Mort – hadn’t thought of that, cheers.
Auld Neil Lennon heid @13 09
” A Newco starting off in Div 3 is the only acceptable answer and if there is a vote for anything else , Scottish football is finished. ”
Yes !
No to a Parachute !