Last week we shone a light on why newco may have withdrawn their ill-conceived rant against Dundee United over the SFA’s award of £204k to newco as Training Compensation for Charlie Telfer signed out of contract.
Where Training Compensation is disputed, the SFA are obliged to award the losing club the entire amount of money due according to the set scale, from when the player was still at school. The club which receives the money is then obliged to pay any earlier clubs the according to period they developed the player.
This is where Rangers’ liquidators, BDO, come in. Rangers membership of the SFA expired in August 2012, just a few weeks after newco began life with a cup-tie against Brechin City, but Rangers were the club who developed Telfer between 2006 and 2012, so they are entitled to make a claim on the money newco will collect on their behalf.
It’s unlikely Dundee United have already paid newco, so if newco dispute they owe oldco Rangers this money, BDO are likely to ask a court to freeze the transaction before it is fulfilled. United would be unable to discharge their debt by paying newo until the court made a ruling in their favour.
United chairman, Steven Thompson, may or may not have said “You’re only two years old” when offering a lesser figure for Telfer, but whoever penned the withdrawn statement for newco, they missed the point. Someone should have advised newco, “You’re only two years old, take the money on offer and don’t push for an explicit Training Compensation figure.”
Cognitive Dissonance alert, we now face the possibility of newco paying a football debt to oldco.
In the same article last week, we brought up the subject of Rangers’ as-yet unpaid £250k fine for the illegally avoiding tax and breaking player registration rules. The fine, levied by an SPL inquiry, is almost two years old now. As part of their SFA membership application, newco agreed to meet all football debts, but there was previously insufficient motivation from the SPFL, who assumed SPL assets and liabilities, to enforce the fine on newco.
I hear that attitudes changed the instant newco attempted to rub people’s noses in the dirty stuff with that rant on the Telfer decision.
You can also order the CQN Annual and DVD bundle here. It’s a great offer, check it out – tons of great reading and photos on your favourite indulgence.
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adi_dasler –
Yes I am. How did you know?
KITALBA
I agree that Celtic should have done more to snooker the 5-way agreement,but they were never party to it.
The five were SFA,SPL,SFL,Rangers old and new.
Tom
SDA ?
Kitalba,
The five-way agreement was a dead duck when Sevco “settled” with Hearts for Wallace for less than the full amount.
TOM McLAUGHLIN
If Celtic have nowhere left to go on it football-wise,then your suggestion is pretty much all they can do.
With the proviso that we believe in his innocence of the charge,and will be supportive of the player at all times in whichever method he chooses to clear his name.
(Although don’t be surprised if his address is handed to the police if they ask!)
adi_dasler –
Yes. Back in the day.
Who are you?
Don’t need your full name if you’d rather not. Give me a clue.
bobby murdoch’s curled-up winklepickers
11:06 on 17 December, 2014
KITALBA
But is it not the case that the SFA could only enter into the 5 way agreement with the authority of the Clubs ……(from memory, I seem to recall that CELTIC abstained)… .?
In the network team with BF. Played footers with the SDA team.
Was Self Employed then joined MIS
Also had short spell with Cport
Now we know why they get so many games on the telly.
Rangers have been told to pay a £250,000 fine previously handed to the oldco for using EBT schemes.
The SPFL has rules that the club should be liable for the fine handed to the oldco for the commission of EBTs.
However, Rangers have announced they will appeal the decision by league bosses and that appeal will be “pursued vigorously”.
In response the league has said Rangers signed a written agreement admitting liability for the sum due.
The revelations were made by the Ibrox club in a statement by the board to the London Stock Exchange on Wednesday.
It stated the SPFL intend to recover the oldco fine from Rangers by withholding broadcasting money and other cash due to the club.
An appeal has been lodged by the Rangers board to the Scottish FA and the SPFL’s decision is currently on hold pending the result of the appeal.
The statement to the stock exchange read: “The board of the SPFL has determined that Rangers Football Club Limited (the “Club”) is liable to pay the EBT Commission fine of £250,000 levied on RFC 2012 PLC (previously The Rangers Football Club plc) (in liquidation)
“The SPFL has also decided that this sum will be recovered from the Club by the SPFL withholding broadcasting money and other sums due to the Club but which are paid in the first instance to the SPFL.
“An appeal has been lodged with the Judicial Panel of the Scottish FA which has confirmed that the decision of the SPFL is suspended pending the outcome of the appeal subject to the SPFL’s right to object.
“The Board is advised that the sum is not due to SPFL and the appeal will be pursued vigorously.”
A statement from the SPFL read: “In February 2013, an independent SPL commission, chaired by the Rt. Hon. Lord Nimmo Smith, fined RFC 2012 PLC (previously The Rangers Football Club plc) (in liquidation)) (“Rangers Oldco”) the sum of £250,000 in respect of multiple breaches of SPL and Scottish FA Rules.
“The Rangers Football Club Limited (“Rangers Newco”) signed an agreement under which they would be liable for sums such as this.
“The Chairman of Rangers FC, David Somers, and on one occasion the club’s then chief executive Graham Wallace, engaged in individual discussions with the majority of current SPFL Board members several months ago acknowledging the liability and suggesting ways of paying the sums due.
“Following such discussions, it was only when no sums actually arrived from Rangers FC that the SPFL Board decided to offset this liability against future sums payable to the club.”
The fine is related to the club’s tax-avoiding Employee Benefits Trust (EBT) scheme and totalled £9m in one season alone.
Former owner Murray International Holdings has largely won two court cases against Her Majesty’s Revenue and Customs over the scheme, with another one planned, but the commission focused on the club’s use of undisclosed side letters to players rather than the legality of the payments.
Newco Rangers assumed liability for the liquidated company’s football debts when the club’s SFA membership was transferred in July 2012 but it was widely thought that the new fine would not affect the current Ibrox regime.
kitalba
10:53 on
17 December, 2014
Where do Celtic stand under Scottish Labour Law, don’t they have a duty to look after their employees?
If Celtic believe Alex Tonev then they must take it the whole way, which to my mind means over and above the CSA, it means a civil court.
Oh! but that would mean possible sanctions from UEFA… oh! oh!
…………………………..
Great post which echos my thoughts, Celtic would wear any sanctions from UEFA like a badge of honour and perhaps highlighting the corrupt SFA to the European Media by taking this this issue whole way.
67 HEAVEN
That I could not say. Sounds highly plausible. Celtic may not have wanted to get their hands dirty,or stand accused of victimisation by merely requesting that the rules be followed.
Wouldn’t be surprise if McCoist is sacked today, no pay off and his bluff called. If he sues, and wins, they will go into admin. That’s if they last that long.
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS :
Are we not part of the SPL? Do the SPL speak for Celtic without any recourse?
We signed up to it by direct or proxy consent. Either way it is academic Scottish football exists on a planet that does not know, or does not recognise, the meaning and value of integrity.
What a way to live a life where obligations mean no obligations, where values mean no values, where morals means no morals, where law is a phantom and justice is cracked by prejudice and envy.
What was it the Bulgarian FA called the treatment of Alex Tonev…
Biased and exaggerated?
We’ve made our bed. Or at least our board have made it for us, all the Celtic family all around the world, our board signed you all up to professional cheating by proxy, and you are paying them for the pleasure.
Why do you think we can’t get a sponsor? Would it be because nobody wants to be tainted by our toxic cheating?
Adi_dasler –
A few names come to mind.
What are your initials?
I think we have to accept that Tonev himself may not wish to take the matter further, footballers taking matters to a civil court rarely ends well for them (see Bosman). I wouldn’t be surprised if Tonev would prefer simply to put the matter behind him, finish his loan spell and get out of Scotland. Rather than enter a long and protracted civil court case, which will probably extend beyond Celtic’s loan and may not bring any vindication (in a Scottish court?). All the while bringing greater exposure to the case and risking his future earnings potential.
While it’s all good and proper to feel Celtic have been smeared by this case the effect on the player will be far greater and last longer, therefore the decision must be his.
Gary67
Wouldn’t surprise me either neebs.
Yogiy, don’t blame me,I voted Yes.
It might not be the most populist thing to say on here of late but I mean this sincerely, I hope Celtic do find the balls to take on any and all powers.
But I’ll go to my bed at best sad in hope because I don’t think Celtic will do anything more than they’ve done to date.
But hey! as they say… hope springs eternal, even sad hopes.
Tom
Worked next to BF all the time. Old man worked there as H&S. Introduced Chic McM to SDA and played golf with DH.
BLANTYRETIM
Glad to hear you are finally on the mend!
Enjoy your Christmas vacation, it will be good to get back full time to work.
Take care…..
RobinBhoy
67Heaven:
Celtic abstained from what?
Brother Stephen worked in OPS there when GGF was starting up……..remember that ?
tonydonnelly67
11:17 on 17 December, 2014
Where did you get that statement from, Young MHAN….?
Ah. I thought of you Robert but didn’t know you were with Cport at any time so that kinda put me off.
How are you?
kitalba
11:25 on 17 December, 2014
By my recollection, the Clubs voted to give the SFA the authority (or not) to proceed with the agreement…..
Here’s what Celtic do re: Tonev – they back him and draw it out until he’s no longer a Celtic player. Then it really doesn’t matter.
KITALBA
I can only refer you to my 1119 reply to 67 HEAVEN. I am not overjoyed if the club stood back for the reasons I suggest,but I do understand if it is so.
If the huns commit suicide,so be it. If there is a way to blame us for it-and opposing the 5-way agreement is a perfect example-we would be absolutely crucified.
Green and the MSM et al would have presented their business case as infallible,we would have been cast as the evil-doers who only wanted to destroy any opposition.
Out of pure bigotry,to quote the Green yin.
I think the path of least resistance may have been quietly acquiesced to,in the sure knowledge that they were still FUBAR’d anyway.
kitalba,”I hope Celtic do find the balls to take on any and all powers.”
The Bunnet would have loved getting his teeth into this and it just emphasis how much we lost with the passing of Paul McBride.
We are slowly and sadly becoming just another football club.
67Heaven:
I’m not sure what you are saying mate, can we go back to the ‘Celtic abstained’?
I don’t recall Celtic abstaining from anything vis-à-vis the bendy-bendy five-way-agreement.
Yogiy, don’t blame me,I voted Yes.
By that do you mean soulless, a faint shadow of our history, a toothless Celtic tiger, a participant in sporting fraud, a disgrace to memories?
Or just a watered down Hibs?
CELTIC are lining up a daring swoop for Scottish international Ikechi Anya in next month’s transfer window.
Hearing this will happen. Also Billy Davies appointed this Friday. Will point this out to the CQNers at the 5s tonight when they could have had 8/1 their money.
kitalba By that do you mean soulless, a faint shadow of our history, a toothless Celtic tiger, a participant in sporting fraud, a disgrace to memories?
Yes
Winning Captains
Davies is now Evens with Willy Hill.
HH
Wc,
I’ll take that. Anya is a tidy wee player.
Would rather Sleekit stayed but you can’t win them all :)
kitalba
11:37 on
17 December, 2014
Here’s the issue though. We need somewhere to play football. Without it we die. Until such time as an alternative appears we’re stuck with the SFA/SPFL.
I’ve stated before that if the club were to make a statement about corruption within the governing bodies we would be slapped with the biggest disrepute sanction possible. Precisely because of that corruption.
Like it or lump it you also have to take into account the league structure is on paper at least a democracy and things will be done in the name of the club that opposite to the club’s view. Much like Blair’s democratically elected Govt taking the country to war, against the wishes of many.
What’s the solution though? We’re a big fish in a wee pond, getting smaller year on year, waiting for some benefactor to fish us out and take us to a bountiful loch, and until that person comes along we’re stuck. Unless we evolve some feet.
A small number of Sevco shares, sold today for 17p. Maybe our sharp-suited investor, is cashing in to buy Roubles!
HH
I remember Davies when at Forest ranting about lack of investment. Good luck at Sevco!
Tom
Fine….worked at cport for about 6 months until I realised they were reneging on promises.
Anyway ..,.you well ?. I work in Glasgow so maybe meet up at some stage.