Rangers: what next chapter holds


Duff and Phelps will be in possession of final bids for the Rangers tomorrow and soon thereafter will formally select a preferred bidder.  Liquidation, what you have known to be inevitable for many months, has now formally been acknowledged as a possibility by each bidder.

Duff and Phelps have enough cash to keep the club operating until the verdict of the big tax case, which is expected this month.  If Rangers achieve a substantial victory from the First Tier Tribunal they have a fighting chance of survival.  If they incur a substantial loss, The Rangers Football Club established in 1893 and incorporated as a limited company in 1899, will almost certainly cease to exist soon thereafter.  All shareholders will lose their rights and notional value.  Unsecured creditors will take an enormous bath and the secured creditor will acquire Ibrox and Murray Park.

Craig Whyte is, of course, secured creditor and majority shareholder in Rangers, so although some creditors and shareholders face wipe-out, he will emerge with the stadium, giving him an excellent opportunity to form a new football club.

He also has the burden of a liability to Ticketus, to whom he has underwritten payment for the tickets they purchased last year.  So any new club to emerge from this debacle has to be designed by Whyte and Ticketus or acknowledge the rights of both.  I am ignoring reports today that Whyte may hand over his shares in Rangers for nothing if it was in the best interests of the club.

With fresh investment capital likely to be at a premium, a deal which excludes ownership of the stadium is likely to generate most for the unsecured creditors.  Whyte could retain ownership of the stadium and offer Newco a 99 year lease.  This would enable him to receive a suitable return for his year’s work and ensure he has the ability to accommodate Ticketus.  It would also allow Duff and Phelps to offer HMRC and other creditors the bulk of whatever cash is on offer from the organisation bidding to run Newco.

It will be interesting to see what the preferred bid looks like but leaving Ibrox with Whyte has an irresistible look to it.

Newco will play in blue jerseys but the differences between it and Rangers will soon become apparent.  Income for years ahead will not enable them to employ footballers on the kind of money Rangers have employed for the last 20 years.  Even if they are able to acquire Rangers player registrations those on premium money will have to be sold, generating an early cash bonus for the new entity.

If the Blue Knights gain control I expect a reasonably cash neutral forward plan but if an outside investor concludes a deal with Whyte and Ticketus, in particular one who advertise themselves as a joint venture between investment capitalists and a merchant bank, you can expect an onerous return on capital to be extracted from Newco in sunshine or in shadow.

There will be many shadows.

Arguments about which league Newco will play in and an appropriate penalty for any transfer of player registrations, how the SFA punish an insolvent Rangers for Lord Nimmo Smith’s findings, what they do if Duff and Phelps acknowledge void player registrations over many years, or what the SPL do about the same issue remain to be resolved.

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  1. paul76 a lot of guys with a lot of brains think they are going to riggle out of this. my mate reckons they will have a warchest in the summer. he was bang on about white saying he was a diddy. nobody saw that coming everybody thought white was a billionaire business mongol. my mate called that spot on and he says we need to be worried about murray and ticketbus.



    hail hail

  2. Podium chasers… God Loves them.







    The daily press and the telegraph, which in a moment spread inventions over the whole earth, fabricate more myths … in one day than could have formerly been done in a century.



    Karl Marx, 1871



    In old days men had the rack. Now they have the Press.



    Oscar Wilde





    … the attempt is always made to ensure that force will appear to be based on the consent of the majority, expressed by the so-called organs of public opinion — newspapers …



    Antonio Gramsci, Prison Notebooks, 1929-1937




    Media, the plural of mediocrity.



    Jimmy Breslin





    It is the absolute right of the State to supervise the formation of public opinion.



    If you tell a lie big enough and keep repeating it, people will eventually come to believe it.



    The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension,the truth is the greatest enemy of the State.



    Joseph Goebbels, German Propaganda Minister, 1933-1945





    Power without responsibility — the prerogative of the harlot throughout the ages.



    Stanley Baldwin

  3. Why is the large tax case still dragging on?


    I thought March was the expected date of the verdict.


    Why have Rangers not been forced to sell players by the administrators?


    They owe £9m in tax for this season alone……so far.


    It’s all reeking of Hunnery to me. The longer this drags on the more I fear they will get some kind of deal.




  4. Hi all,


    Just to let anyone who lives in and around Swindon that the Swindon Celtic Supporters Clubin Manchester Road is still open, I shall be there on Sunday watching the game and celebrating my 50th birthday, hope to see you there.

  5. 20 years of Celtic dominance to look forward to. Maybe we should look at EPL entry in case we get bored.

  6. swindonbhoy on 3 April, 2012 at 12:24 said:



    Is that the Tap & Barrel? I watched a St Johnstone v Celtic match in there last season.


    Not a bad wee boozer. Few Tims were in. I was working down there.


    Enjoy your birthday. Game is on Saturday though ;-)



  7. kitalba the media arent allowed to tell lies bud. keevans says that all the time on the clyde phone up. that guy has forgotten more than we will know. if he says it that is good enough for me. they would be hauled over the stones if they told lies so why would they. there integritee would be shot to bits if they were caught so it would be a pointless exercise



    hail hail

  8. tomthelennytim on

    Celtic Underground ‏ @celticrumours










    · Close Open Details Huns file MG01 particulars of a mortgage or charge at Companies House.

  9. twatter thing is saying the huns have filed an mg01 at some house. why is that happenig. are they trying to get some money for it. my da had an mg01 you had to stoat the starting motor with a claw hammer to get it going but it went faster than a polis car. he swapped it with the dentist for some new front teeth as some bam knocked them out in the boozer in a fight about a bag of nuts. quality days



    mon the hoops

  10. Auld Neil Lennon heid on

    Declan Is Neil Lennon 1888 Hates being 2nd on 3 April, 2012 at 12:28 said:




    “there integritee would be shot to bits if they were caught ”



    and sew it shood bee, a hingins two guid fur em.

  11. Declan:



    The world is a richer place for your wisdom and humour.



    What is your personal take on the etymological and morphological argument regards the hun and the longevity of the hun in the modern world?

  12. ‘media is the plural of mediocrity’… lol, and rolf and that was funny. Clever too.



    By the way, Declan is easily my favourite poster on CQN ever. Dude, one or two of your posts have been close to genius. That people still don’t know if you’re for real is hugely entertaining. And a little re-assuring for those put upon former CQN regulars.

  13. Joe Filippis Haircut on

    Declan. If ticketus are involved in Rangers or Rangers newco there prime interest will not be football it will be a return of capital plus interest that will be in the forefront of all there thoughts and actions.They will be like a leech sucking the lifeblood out of the club whatever happens from here on in believe me Rangers are in a really bad position.Also remember that Craig

  14. seventyxseven 'gelee et glace' on

    Lol lol lol



    Bargain Hunt on in the background. The Blue team are two Rangers fans. Their expert shows them a gold trinket, tells them they will probably be able to buy it for around £240 and it could make £400 at auction. (£240 is a huge price for this prgramme.)



    Two Rangers guys, “Eh….. mmmmm….. right, lets go for it!!”



    I’ll report back what they got at auction in a few minutes. Might be an omen.

  15. BT



    Nice 1, Might do it myself, Do you know if any of the guys drink in McCuills or the Failte

  16. We reminder that today is the deadline for ST holders to purchase tickets for the semi final against the wee huns. After today tickets will go on sale to the general public.

  17. 7×7



    start of the programme they played just can’t get enough..



    BT laid u p in bed as back has gone again… 0((

  18. Well done Paul on seperating the wheat from the chaff in your excellent article. There is only one way to reap the harvest at RFCIA and the drivers of the harvester are,of course, Duff and Phelps. Thereafter they then have a field available for anyone else to re-seed. Whatever is then best for futures harvests will prevail, as long as every future planter can satisfy the wants of the landowner and his suppliers, C. Whyte & Ticketus.

  19. Auld Neil Lennon heid on




    What are the odds on an SPL 2 for next season with Newco vieing for the title with Partick sizzle?



    One year in the doldrums to pay some sort of aknowledgement to integrity, boost gates in SPL with any increase over x% to be shared with SPL1?



    Newco would be without UEFA money for three years any way and an SPL2 would be at the sort of level of the wages they need to start adjusting to.


    If registration skullduggery Oldco stripped of titles.


    Warm balls for cup draws.



    Any holes in that (apart from logistics/timeframe)

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