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Social and economic pain for years of neglect

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To give £134m context, it is approximately £3,600 for each Rangers season ticket holder. £18m of the debt is overdue to HMRC with another £75m due the taxpayer subject to the First Tier Tribunal, that’s £93m worth of schools, medicine, operations, social care, policing and roads.  Or Help for Heroes, if you prefer.

This overspend is equal to the value of seven years season ticket income, acquired over 12 years.  How on earth could this football club be so indulgent?  The old board, including the Murray twins, Bain and No Surrender Johnston are responsible for the overwhelming majority of the debt.  Whyte is responsible for the Ticketus debt but he paid money owed to Lloyds Banking Group, so even his portion of responsibility is partially offset.

Duff and Phelps gave an incorrect figure of £1.063m due to Football Creditors, which is the sum due to Scottish clubs, the SFA, SPL and SFL. Curiously they excluded £2.117m due to English and European football clubs, all eight of whom are due more money than seven out of the eight Scottish football organisations.

Football creditors are actually due £3.184m.  It may be that Duff and Phelps are trying to differentiate between football creditors who have a say in how the company exits administration (either way) and those who cannot.  If I was one of the English or European clubs this would alarm me.  There is no ‘Football Creditor’ rule in Scotland as there is in England, obliging clubs to pay all football debts so this distinction seems arbitrary.

The creditors list is a sorry tale of humanity.  Dozens of small businesses with staff and suppliers of their own, many from the Glasgow area.  When a bad debtor of this size runs away from their liabilities the cost is real.  I know one small business on the list, they deserve better, to borrow a phrase.

It was fascinating to read First Minister Alex Salmond’s fawning correspondence with Rangers yesterday, including his view that the 2011 ‘Billy Boys’ League Cup final was “a great showcase for Scottish football”. It would be interesting to know if he has asked any of his correspondents to explain their actions in the light of the social and economic consequences of their actions.

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454 Comments

  1. Art of War, thanks.

     

     

    northbhoy, cheers.

     

     

    Timabhouy, while on the subject…. Feel free to bless Her Maj without the supplementary comment. I have noted your insistence of this theme over many weeks now. Not sure if you are keen to discretely share a bit of love for Her Maj or somewhat overcome with the joys of the alternative, but we are a club open to all.

  2. Auld Neil Lennon heid on

    roy croppie on 6 April, 2012 at 12:43 said:

     

     

    Many thanks. I thought that having frozen the balance of the core it had been “taken” by HMRC in December or so but maybe the vexatious appeal was designed for just that purpose.

     

     

    So after getting a UEFA licence nearly 10 months later only £500k of a £4M tax bill has been paid?

     

     

    I reckon the SFA were sold a pup (or took a pup in) last May. I also reckon that Rangers had a responsibility under FFP rules to tell the SFA in July that the balance had not been paid. Only a full enquiry with the documents of the proof the SFA/FFP rules require showing dates will tell us the truth, and that is what is badly needed here.

     

     

    No more lies!.

  3. myboysnowatim on

    Are any Aberdeen based CQNers heading to Malone’s in Aberdeen to watch the game tomorrow ?

  4. Auld Neil Lennon heid on

    sparkleghirl on 6 April, 2012 at 12:48 said:

     

     

    aye. There is a “football first” creditors rule in England that HMRC are contesting right now and if they win its open season on English Football.

  5. Auld Neil Lennon heid on 6 April, 2012 at 12:38 said:

     

     

    roy croppie on 6 April, 2012 at 12:03 said:

     

     

    I’ve lost track of what has and has not been paid on the wee tax case.

     

     

    looking at the admins report, the frozen money was used to pay overdue VAT and NOT the wee tax case. Looks like £4mill outstanding extract from page 12 of admin report

     

     

    the Small Tax Case

     

    A dispute between the Company and HMRC regarding the Company‟s use of a Discounted Option Scheme. The liability of the Small Tax Case is circa £3m with interest and penalties of circa £1m;

  6. BIG-CUP-WINNERS

     

     

    Celtic v Liverpool post Hillsbough, how many attended? Maybe somebody should let Mark know. I drove from London with some mates for that game.

  7. Auld Neil Lennon heid on 6 April, 2012 at 12:59 said:

     

     

    Thanks, yes I’d heard of that but didn’t connect it with player wages – I only thought of debts owed to other clubs.

  8. Steinreignedsupreme on

    jock steins celtic on 6 April, 2012 at 12:33:

     

     

    “Not sure about the oblivion part. You think the Huns under a Newco won’t mention anything Rangers achieved?”

     

     

    It doesn’t matter what any new club tries to do. The facts are a new football club formed in 2012 starts with a blank page of history. Obviously, some people posting on the internet will try and put a brave face on things – incidentally, I’d bet most of these jokers don’t even go to matches.

     

     

    But Rangers supporters I know – including one who has not missed a game for over 25 years – have all said they will not follow a new club. If the history goes, so will they.

     

     

    “I’m still clinging to the hope a Newco won’t get off the ground because if it does I’m not sure if we’ll notice any difference.”

     

     

    I’m with you on this. I see a plethora of legal battles ahead. I’d be very surprised if any new club is ready to play competitive football next season. If they are, then the differences will be obvious – like playing at Hampden or Firhill, no stars on the shirt, no ‘household names in the team.

  9. Amongst the righteous condemnations of Rangers FC, and there are many to be had, we should be careful of not overstretching.

     

     

    So Rangers paid Wallace and Jelavic when they had not paid for them. We also may have players whose transfer fee has not yet been fullly settled. It is common to structure deals across a 3 year period with so much paid each year. Have we paid all we owe to Scunthorpe yet for Gary Hooper? We may still have moneys owed to Stabaek for Rogne and Beerschot for Wanyama.

     

     

    The difference is, of course, that these teams will be paid in full. But Rangers as partial owners of Wallace and Jelavic cannot really send back Wallace’s legs and Jelly’s head as part re-payment. I blame Hearts and Rapid for dealing with such a toxic organisation.

     

     

    However, I don’t know why Bartley is back playing for them. Who is paying his insurance cover and why?

  10. also loving that the EBT tax case is referred to in admin docs as the Big Tax Case , although disappointed to see no reference or explanation of them pesky Internet Bampots

     

     

    the Big Tax Case

     

    An ongoing Tribunal with HMRC regarding the Company‟s use of an Employee Benefit Trust (“EBT”) Scheme. This case is subject to a First Tier Tribunal Hearing and the estimated claim of HMRC, subject to the findings of the Tribunal is circa £50m, with estimated interest and penalties of circa £25m;

  11. Auld Neil Lennon heid on

    DougC on 6 April, 2012 at 13:02 said:

     

     

    Again my thanks. That was the missing piece in my jigsaw.

  12. SFTB

     

     

    correct

     

     

    however it`s a question of intention

     

     

    they “purchsed” Wallace with no intention of paying the transfer fee in full

     

     

    CW ..no intention of paying RV what they were due under his tenure

  13. Andrew Young ‏ @Hullbhoy

     

    RFC* creditors totalled £144m (inc tax cases) in June 2010 before Craig Whyte took over. Yesterday’s creditor figure £134m.

     

    Retwitteado por Celtic Underground

     

     

     

    Is this the Lloyds debt then?

  14. Bartley aka “two bob rocket” is probably following the ingenious “Aluko Payment Plan”.

     

    Shop window stuff, before a bumper move to Tranmere.

  15. Auld Neil Lennon heid on

    Steinreignedsupreme on 6 April, 2012 at 13:04 said:

     

     

    Do not forget the possibility that if they have not registered players properly they might be stripped of titles etc.

     

     

    I think that in time they will want to distance themselves from that history, such of it that is left and worth holding on to.

     

     

    The Nazis are part of German history but the majority of Germans do not wish to be associated with that time.

     

     

    If Rangers2012 build a new honest history that will be much more attractive to cling to.

  16. setting free the bears

     

     

    Correct, and that is why RFC still have some football debtors, teams who still “owe” them money for players.

     

     

    The way I see it, if Hearts allowed Rangers to pay for Wallace in installments then in essence the money isn’t overdue unless they fail to meet the deadline.

     

     

    Mort

  17. …….or Raya Volcano….or somesuch exotic destination dreamt up in

     

    Pathetic Quay……

  18. Auld Neil Lennon heid on 6 April, 2012 at 13:08 said:

     

     

    this is the section in the admin document page 24,

     

    for anyone who has not read it , please find it online it is a must read , my take on it was they were trading as insolvent from day 1 of the MBB takeover.

     

     

     

    9.26 In September 2011 HMRC arrested approximately £2.9m held in the Company‟s accounts with BOS in respect of tax arrears. On 24 November 2011, the Company agreed to release the arrested funds to HMRC, which were used to settle certain outstanding VAT arrears on instruction of the Company.

  19. timabhouy – OUTED AGAIN BY THE MHAN!

     

    HAHAHAHAHAHAHAHAHAHAHAHA!

     

     

    But as Paul says, we’re a broad church so keep your wee defense of the crown going. Hahahahaha!

     

     

    AoW

  20. sparkleghirl on 6 April, 2012 at 13:18 said:

     

    ———————-

     

    Thank you. Was gonna look for it after lunch and you’ve saved me the hassle!

     

     

    HH

  21. From Garngad to Croy I am Neil Lennon. on

    A new take on Wee Willie Bluenose’s Number !

     

     

    We Don’t Do Paying our Way (copyright protected)

     

    (verse 1)

     

    We are Rangers*…..Glasgow Rangers* We don’t do paying our way.

     

    Let the Celtic know…..they won’t get their dough !

     

    We don’t do paying our way.

     

    We are Rangers*…..we are strangers

     

    To paying silver…..in May

     

    We will knock your pounds, we steal from the crown

     

    We don’t do paying our way

     

    (chorus)

     

    Oh we don’t pay, we don’t pay our way

     

    We were the Queen’s eleven

     

    Off to skint Blue Heaven

     

    We don’t do paying our way.

     

    (verse 2)

     

    We are Rangers*…..Glasgow Rangers *

     

    We don’t do paying our way

     

    Any day or night…..we won’t pay for flights

     

    We don’t do paying our way

     

    We are Rangers*…..we face dangers

     

    But, we don’t care…..who we pay

     

    And Dunfermline knew….we stole from them too

     

    We don’t do paying our way

     

    (chorus)

     

    (verse 3)

     

    (1st three lines of this verse is the accordion solo)

     

    We don’t do paying our way ‘cause we’re the Rangers*…..Glasgow Rangers*

     

    We don’t do paying our way

     

    Let the Celtic know…..they won’t get their dough

     

    We don’t do paying our way

     

    (chorus)

     

    We don’t pay…..

     

    We don’t pay our way, we will

     

    Keep…on…knocking

     

    We don’t do paying our way…..

     

     

    (*) In Administration

  22. up_over_goal on

    Canny wait for tomorrow – all the injustice Celts fans have had to contend with in the last 4 years will be wiped away by the sight of Neil Lennon, the man they tried to drive out of this country, embracing his team as Champions of Scotland. The footballing authorities can’t even find it within themselves to allow the trophy to be presented – no doubt the image of Lenny holding it aloft would have upset those suffering bears. No matter – it’ll be all the sweeter in May.

     

     

    As to them, there are few words left to describe their shame, although this seems apt:

     

     

    “A celebrated people lose dignity upon a closer view.” Napoleon Bonaparte.

     

     

    (And now I go and spoil it all by saying something stupid like ‘Zaluska’)

     

     

    My XI for tomorrow:

     

     

    ::::::::::::::::::::::::::::::::::::::: Zaluska ::::::::::::::::::::::::::::::::::::::::::

     

     

    Cha ::::::::::::::: Wanyama ::::::::::::::::: Mulgrew ::::::::: Izaguirre

     

     

    :::::::::: Brown ::::::::::::::::::::: Ki ::::::::::::::::::::: Ledley :::::::::::::::

     

     

    ::::::::::::::::::::::::::::::::::::: Commons :::::::::::::::::::::::::::::::::::::::::

     

     

    :::::::::::::::::::::::: Hooper ::::::::::::::::::: Samaras :::::::::::::::::::::::

  23. Many years down the road Craig Whyte may actually be seen as the man who saved Rangers (he said this about himself in the conversation with Tommy of Glasgow).

     

    Whyte took over, cleared out the old board and then started the process of trying to steer the club in the right direction, albeit towards liquidation, while also trying to make a few bob for himself.

     

     

    Now just why the Rangers (IA) fans want to bring back P Murray I cannot understand. Why not invite AJ and that beacon of light, Ogilve as well? These guys were there when the crazy financials were going on. Why did they not do something?

     

     

    The old king is dead. Long live the old king.

  24. pggtips2 on 6 April, 2012 at 10:25 said:

     

     

     

    Paul67

     

     

    These letters from Alex Salmond say nothing.

     

     

    Nothing more than getting a christmas card.

     

    —————————

     

    I don’t think so. The whole tone of fat Alex’s letters suggests his next question will relate to Smith’s underwear.