We told you back in October last year that Rangers were likely to be liquidated and a Newco FC would be formed, which the SPL would vote back into the league. Today the SPL issued terms of how the deed will be done as they issued 8 resolutions to be voted on later this month.
The key resolution is 2A, which establishes a procedure to phoenix a Newco into the place of an ex-club. Crucially, this resolution only requires the support of 8 SPL clubs, all 12 of whom will be eligible to vote at the meeting. 5 clubs would be needed to block this proposal and right now there is only one willing to do so.
Resolutions are as follows:
Resolution 1 proposes an increase in the sporting sanction (points deduction) on any Club which suffers or is subject to an Insolvency Event from 10 points to the greater of 15 points and 1/3 of the Club’s SPL points in the preceding season.
This resolution increases the penalties imposed following an insolvency event, it requires the support of 8 clubs to be carried and should be supported.
Resolution 2A proposes further sporting sanctions in the event that any Club undergoes an Insolvency Transfer Event (i.e. transfers its share in the SPL to a new company where this occurs because of the insolvency of the transferor) of 10 points in each of two consecutive seasons from the Insolvency Transfer Event.
This resolution provides for an ‘Insolvency Transfer Event’, defining what happens when a club ceases to exist and a Newco FC is formed. No provisions currently exist for such a scenario and I see no reasons to introduce any. The resolution requires the support of 8 clubs to be carried and must be opposed.
Resolution 2B proposes revisions to the fee payment arrangements i.e. SPL fees to any Club which has undergone an Insolvency Transfer Event will be reduced by 75% in each of three consecutive seasons from the Insolvency Transfer Event.
This resolution provides for a financial penalty in the event the Insolvency Transfer Event resolution is voted through and requires the support of 11 clubs. This is an outrageous and arbitrary increase in support required to impose financial sanctions. All an Insolvency Transfer club needs is the support of one other club to halt financial penalties.
If resolution 2A is passed, resolution 2B should be subject to the same voting criteria and must be supported. The SPL must ensure a financial penalty is imposed for financial misdeeds.
Resolution 3 proposes extending sporting sanctions where an Insolvency Event is suffered by a Group Undertaking of a Member Club of the SPL (Group Undertaking is defined in Section 1161(5) of the Companies Act 2006).
This resolution confirms insolvency events at group owner level are applicable to the club, requires the support of 8 clubs and should be supported.
Resolution 4 proposes updates and extensions to the definition of Insolvency Event in the SPL Rules.
I assume this is an administrative requirement and needs the support of 8 clubs.
Resolution 5 proposes updates and extensions to the definition of Insolvency Event in the SPL Articles and clarifies the process in the event that a Member which is the subject of an Insolvency Event is required to transfer its share in the Company.
This is a technical resolution defining how clubs lose or transfer their share in the League. It requires the support of 11 clubs but it is not clear if has any consequence, more than clarifying administrative procedures.
Resolution 6 proposes a specific requirement in the SPL Rules that Clubs must pay their Players in terms of their Contracts of Service on due dates and places a duty on any Club to report any failure to pay its Players in a timely manner to the SPL. Failure to pay Players and / or to notify such failure to the SPL would be a breach of SPL Rules.
This resolution should enhance fair play, requires the support of 8 clubs and should be supported.
Resolution 7 proposes a requirement in the SPL Rules that Clubs report to the SPL any failure to make payments to HMRC in respect of PAYE and NIC (a Default Event). Any Club suffering such a Default Event will be subject to a Player Registration Embargo. Any failure to report a Default Event shall be a breach of the SPL Rules.
This resolution prohibits clubs in tax arrears from signing players, requires the support of 8 clubs and should be supported.
If only they would pay their taxes we would not need to bother with any of this.
More on the consequences of these proposals later.