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Rangers liquidation unlikely within days

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“However, no one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the Club will not be able to fulfil its fixtures throughout the remainder of the season.”

Statement from Rangers administrators, Duff and Phelps.

Lots of speculation that this is the end.  I don’t think so.  Duff and Phelps have made practically no cuts for 23 days, it would be professional negligence for them to fail under these circumstances.  They must have enough cash available to pay rates, electricity, police, around 20 youth players and various small invoices between now and the end of the season.

Unless an event happens that has yet to manifest, they will almost certainly survive until the tax tribunal verdict.  It will not be pretty, and unless you are older than 35, it will not look like any Rangers you have known, but they will linger for a few weeks yet.

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394 Comments

  1. Glendalystonsils likes a mr whippy with his lime green jelly on

    The big hoose is trembling on it’s foundations. Watch out for falling mason(ry)!

  2. Better get your “Are rangers dead yet?” in the now. We wont be able to do it after Friday… :)

  3. Paddy Gallagher on

    Third Lanark say no to charity match at Ibrox car-park unless cash up front.

  4. philvisreturns on

    it will not look like any Rangers you have known, but they will linger for a few weeks yet.

     

     

    Best get out the vanilla scented candles. (thumbsup)

  5. paranoidbyexperience on

    Is it possible Jabba / the DR knew the huns required the Celtic ticket money…… Just to get through to the end of the month ?

     

     

    justdessertsareus

  6. Auld Neil Lennon heid on

    Paul 67

     

     

    Two things. Might accelerate the sale not mean bringing forward the date that offers to buy must be in by and on the other bit of the D&P statement re UEFA license…

     

     

    Duff & Phelps statement: “As regards the club playing in European competitions next season, there is no realistic prospect of the Club being able to fulfil its obligations prior to the March 31 deadline set by UEFA.

     

     

    “There are four main reasons for this and they lie in the stewardship of the club prior to going into administration. First, as we have stated from the outset, the likelihood of the club being able to emerge successfully from administration before this deadline as indicated by the chairman was, at best optimistic given the perilous financial situation at the club at the time of insolvency…

     

    “Second, the company accounts cannot realistically be signed off by auditors in a manner that would meet the criteria required by the footballing authorities. Even if the audited financial statements are issued prior to the end of March 2012 we would expect them to be qualified by the auditors such that under UEFA requirements the club will have to satisfy a going concern test confirming how it will continue to be funded until the end of next season. Without knowing who will be the owner of the Club at 31 March, it is impossible to provide suitable comfort in this respect.

     

     

    “Thirdly under UEFA regulations the club must have paid or come to a satisfactory settlement with all social taxes that were outstanding at 31 December 2011. We estimate those social taxes (being PAYE and NIC) to be at least £5m. We cannot now see a scenario where those taxes will have been paid or compromised to the satisfaction of HMRC by the end of March 2012.

     

    ==================================

     

    I telt them that months ago.

     

     

    There are a number of articles in the latest SFA Licensing Rules published by the SFA on 28th December surrounding unaudited accounts OR unaudited interim accounts OR audited accounts/audited interim accounts but with a qualification from the auditors re Rangers being a “going concern” that will be more difficult to hurdle than the unpaid tax issue.

     

    Here is how I see the hurdles lining up

     

    Rangers could be refused a licence on any of the grounds under the following articles.

     

     

    A 47

     

    Audited Accounts and

     

     

    A 47

     

    Audited Accounts and Minimum Disclosures (If they have no audited accounts of any description ready by 8th April)

     

     

    A 48

     

    Reviewed Interim Financial Statements (the ones at A47 are the unaudited accounts currently overdue. The ones at A48 are those that will be required (audited) for licensing purposes in the coming round and so are dependent on getting the current full set audited and themselves (the interims) being audited by 8th April.

     

     

    A 50

     

    No Payables Overdue Towards Employees and Social/ Tax Authorities.

     

    This is the one that covers unpaid tax. The wee tax bill core appears to have been paid so no problems for next licensing round on that one, however we now know that VAT and NI due monthly has not been paid since May and has been bankrolling the payroll. HMRC has threatened winding up on this new “medium” tax bill and unless it is settled before 31 March the original wee tax bill is likely to be replaced by a medium sized unpaid brother in licence refusal terms..

     

     

    The big EBT bill might not crystallise until after the 31 March when the FTT gives its ruling, so it is likely to be viewed as exempt from being treated as unpaid tax under Article 50 and so will not be a reason of itself to refuse a licence..

     

     

    If it crystallises before 31 March but Rangers appeal, the SFA still have the discretion under the A50 rules to ignore the appeal if they think it is only a procrastination device and is vexatious. This gives them leverage to get answers from Rangers on other questions.

     

     

    If it crystallises before 31 March and is unpaid on 1st April then the Art 50 hurdle needs to be negotiated.

     

     

    HOWEVER

     

    A 51 Written Representations Prior to the Licensing Decision

     

    requires that written representation be provided of information to the Licensing Committee on any events or conditions of major economic importance that have occurred and that may have an adverse impact on the licence applicant’s financial position since the balance sheet date of the preceding audited annual financial statements or reviewed interim financial statements (if applicable )

     

     

    AND

     

     

    A 52 Future Financial Information

     

    Refers to information in respect of the financial performance and position of the club in the reporting periods ending in the years following commencement of the UEFA club competitions, i.e in this case up to the end of season 2012/13.

     

     

    The last two are to protect UEFA from a club going belly up in the middle of a CL or EL tournament next season and the UEFA by now are very much aware of Rangers situation and what a risk they represent.

     

     

    If the term “going concern” appears in either full or Interim Accounts this is a RECOGNISED AND FORMAL Indicator defined by UEFA that means Article 52 has to be observed. (The term actually gets 14 mentions in the UEFA FFP rules that the latest SFA rules incorporate.)

     

     

    I do not fancy Rangers chances of getting a licence for any UEFA competition in the circumstances they find themselves. I’m not even sure the have the administrative dexterity/experience to even supply or adhere to the rules which the SFA will have to apply with rigour to satisfy UEFA.

  7. Administrators say there will be NO European football next season.

     

     

    Who would want to buy this mob?

     

     

    HH

  8. D&P latest statement just in – “There is no realistic propect of the club making the European competition deadline on the 31st March!”

     

     

    Happy Daze.. appetite returning. :ob

     

     

    HH

     

    /Bishop B

  9. stpatricksbhoy on

    Duffer & Duffer heard to shout on leaving Poundland “O Lord My God! Is there no help for the widow’s son?”.

     

    Hail Hail

  10. Sir Paul

     

    Ah concur wi’ yer thoughts in this..

     

     

    The End Game,is still tae be Played.

     

     

    Ma Idea is that..

     

     

    Paul Murray..the Scion o’.. David.. the Elder..

     

     

    Wull Mak a SUCCESSFUL Bid ..fur the Return of the Family

     

    Jewels.

     

     

    And The G.A. wull Return..

     

     

    That is Awe she wrote…

     

     

    Kojo

  11. Paddy Gallagher on

    SSN ‘Rangers won’t be in Europe next year’!

     

    FFS mate, they won’t even be in Govan.

  12. Reposted from yesterday- Jelly & Ice Cream Party at Swindon Town FC (party hats optional).

     

    A shout out to anyone in the Swindon area and beyond. There is a Charity ‘ An Evening with John Hartson’ event at Swindon Town FC on Thursday 22nd March 7pm. Price is £15 per ticket which includes supper, comedian and auction including Celtic items. Proceeds go to Great Western Hospital Breast Cancer Unit.

     

     

    Would be good to show BBJ the Celtic support in the area and what we think of a guy who donned the hoops and is now one us. If interested please leave a message on here and I will get Paul to send me your email.

     

     

    Pass the Parcel CSC

  13. CultsBhoy loves being 1st on

    Duff and Phelps have approved purchase of Goalkeeping gloves for Ibrox tea lady and xxxl strip for Coisty in preparation for 25th….we should be looking to break records with score lines…,

  14. am so happy ah dont no weather to sh** masell

     

    or put ma boot through the big drum

  15. sparkleghirl on

    Yet again the best bits happen when I’m between work and home (and I don’t have a fancy phone). And then the blog falls over.

     

    ————————————————————————————————

     

    1) seanbhoy69 on 7 March, 2012 at 17:00 said:

     

    Anyone looking for tickets for the game on the 25th March? :)

     

    Collectors items!!!!

     

    ———-

     

    Oh yes!

     

    —————————————————————————

     

    2) ernie lynch on 7 March, 2012 at 17:31 said:

     

    The ideal denouement is that the result of the tax case is announced the day after they are liquidated.

     

    And they’d won.

     

    —————

     

    Oh yes indeed!

  16. Paul67

     

     

    Think you will have to post a spreadsheet next for all threads of news breaking on Ragers.

  17. RaRaRasputin on

    James Forrest, last thread.

     

     

    Agreed that Whyte will not want to sell. Only complication is I think in theory a sale can be forced by a court eventually. Not 100% on that, but would take longer than Rangers have in any case.

  18. Does this mean the Legneds game Vs Milan will be cancelled: that’s European fitba is it no’?

     

    ;o)

  19. Are you saying that they will be able to put out a team to play us, Paul67? Is that team likely to comprise a lot of young lads? I can’t see that being allowed to happen. They would be on the rampage to prevent such a scenario occurring.

     

     

    Let them go to the wall and fast.

     

     

    Has anyone chinned Chick Young for his “Celtic fans are evil” comment?

     

     

    WE SHALL NOT BE MOVED (and they are going to die).

  20. sparkleghirl on

    So the stumbling block is that their players want clauses in their contracts which will allow them to leave in the summer.

     

     

    So the players don’t expect Rangers, in any shape or phoenixed form, to be in the SPL next year? (But they don’t do walling away)