The prepack route for Rangers Newco FC


In the event of Rangers facing financial Armageddon after the resumption of their HMRC tax hearing a quick – very quick – recovery scenario is available to them.  At any point during next month’s hearing they may consider their position is no longer tenable and, unable to meet the tax bill, a new company could be formed which attempts a prepack administration.

A prepack offer from a new company, for example, Rangers Newco FC Ltd, would offer an administrator a deal for all assets of the club, including stadium and offer to meet outstanding player wages.  Deals like this seldom offer unsecured creditors much but even a small percentage might realise more cash than the administrator would gamble on raising in an unstructured sale.

In such circumstances, the administrator could accept as little as £4m for the unsecured creditors.

In normal business Rangers Newco FC Ltd would begin trading and this would be the end of the story but football is not normal business.  Rangers Newco FC would own a stadium and would employ some footballers but they would not be part of any league structure. They would need to apply for membership to the Scottish Football League or Scottish Premier League.

In this scenario, the death of Rangers Football Club would leave a vacancy in the SPL, presenting several financial, logistical and sporting challenges.  Without Rangers, the league would have to invalidate all this season’s results involving the club, one team would be without a game each weekend for the rest of the season, current TV contracts and sponsorship deals could be jeopardised, while future contracts would be worth a fraction of their current values.

Every team in the league would have to downsize and some would have to win fresh support from their bankers, which may or may not be forthcoming.

There is, of course, a resolution to this problem.

Rangers Newco FC Ltd could present an offer to the SPL.  The new company, with its stadium and thousands of potential supporters, could take the obligatory 10 point punishment for going into administration and adopt the place of Rangers FC, complete their fixtures and allow every other team in the league to fulfil commercial obligations.

If these events took place before Christmas, Rangers Newco FC could be debt-free and signing players in January to enhance their league challenge.

To force the deal through, Rangers Newco FC would require 10 of the remaining 11 SPL clubs to vote in their favour.  If any two clubs stand against them, they would have to apply for membership of the Scottish Football League, but, having researched this story for several days, I expect Rangers Newco FC Ltd would get enough support to pick-up the place of the defunct Rangers FC.

Any natural sympathies towards Rangers aside (which will not exist in all places), money talks and, apart from Celtic, this league is neck-deep in debt.  Celtic might be in a position to survive Rangers failing but it would cost our club tens of millions.

Crucially, if the other SPL clubs back Rangers Newco FC, they create a template for a snap recovery from their own troubles.  Instead of repaying your debts, simply get yourself into a safe league position, ditch the company, prepack and start again with a clean sheet.

This would create a clear incentive to stiff creditors.  While the banks will get wise and not offer unsecured facilities in future, HMRC and small traders are likely to become perennial fall guys.   Why would any mid-table team pay millions in tax, rates and policing bills, when they have a sporting incentive to ditch creditors without punitive penalty, freeing income streams to buy football bling in the next transfer window?

This would make a mockery of the Uefa predident Michele Platini’s Financial Fair Play initiative and make our league the poster-boy for Financial Doping.

Scottish football will be mortally wounded if it were to parachute a club straight into the upper echelons of the game while establishing a blueprint for the abandonment of creditors.

It is incumbent on all who care about the game, in Scotland and throughout the world, that we insist Scottish Premier League clubs do not allow a prepack company to phoenix into the shoes of a dead football club.

Celtic fans, as well as those from Aberdeen, Hibernian, Dundee United and St Johnstone, together with fans from Motherwell, who could become genuine championship contenders, and from those clubs who would avoid relegation if Rangers failed, must insist their club votes against any prepack company parachuting into the league.

The SFA executive must use whatever influence it can to prevent the name of Scottish football being brought into disrepute.  Politicians, who either have, or aspire to have, tax raising responsibilities, must register their abhorrence that a self-serving oligopoly should attempt to vote themselves an escape from paying tax.

Fifa and Uefa must explain to the Scottish FA that the days of shady financial deals in football are gone.

Watch the media coverage of these events carefully.  If and when the decision time comes, the case to acquiesce to Rangers Newco’s demands will be overwhelming.  Sincere ‘impartial’ observers will do their upmost to convince us all we must do whatever necessary to save Rangers for the good of the Scottish game.  Some voices will even tell you Celtic need Rangers Newco.  Whatever part of my club is dependent on Rangers I am willing to lose.

Rangers-HMRC tax hearing resumes next month, when there is also a two week international break.  The most important element of making a prepack offer succeed is to offer a fait accompli: ‘Here is a solution, you have no time and you have no alternative’.

Should Rangers go into administration, I believe this is a very, likely scenario. If you are a supporter of Celtic or any other club, make your views known.

Read issue 3 of CQN Magazine free online here or buy a print version at Magcloud.
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  1. merseycelt dumps sadsally on




    Why dont you leave us and, instead, spend time with your thick, arrogant peers?



    Oh, I see. You’re the clever one. We stimulate you to the point that, deep down, you love us and, really, you want to be one of us.



    Go on, admit it, ya hun parasite!

  2. Paul67:



    Great piece, I am optimistic from your recent contribution that the end is nigh…



    In my opinion our Board, Desmond, Peter et al have a massive opportunity to make one of our great Clnub decisions in our 123 year history, stand up for integrity andrenounce and put down the cheats and fraudsters that are soon to be the defunct rfc…by not paying their taxes and living outwith theirs means

  3. Sandman Is Neil Lennon on

    truth4767 says:


    27 October, 2011 at 17:23






    Got little left to say to you Hun muppets these days except…



    Ha. Ha. And ‘Ha’ again.



    Enjoy oblivion ;))


    TRUTH 1723



    I might be willing to make the odd exception for such as yourself.

  5. James Forrest is Lennon says:


    27 October, 2011 at 17:35



    You people are amazing. Here we are, again, on this site, educating and informing you of how deep the hole you are in, and you want to come on and label insults instead of doing what WE would be doing in this scenario.



    Thick and ignorant sums you up exactly. People like you, the Great Unwashed





    Oh, I am throwing insults, am I? , oh sorry.



    I take it you are being a tad ironic, no?



    Get off your high horse.

  6. Lennon n Mc....Mjallby on

    Ron Bacardi



    First things first- your a hun.



    Secondly,the case you state wasn’t taken to trial so therefore it never became law that the word hun is illegal,the bhoy did not fight the case.

  7. Just logged on an read the article.


    I am really struggling to comprehend that this is in any way a viable solution to their financial problems.


    Surely this would give carte blanche to every single tax payer in this country to not pay taxes knowing that as soon as the taxman comes for his share you simply change your name and carry on debt free. Surely any proposal along these lines would be opposed by the government as a matter of extreme importance.


    This also legitimises cheating because at the end of the day it is what they have done. I cannot see how the Celtic board could in any way support their readmission directly into the SPL. For me this would be the end of Scottish football if it isn’t already on it’s last legs, there would be no integrity in our game.


    For me, I’m willing to accept any loss Celtic FC may incurr if it leads to their demise and retains even a small amount of integrity in our game.


    This is really a doomsday scenario for the SPL and Scottish football, no other club would be afforded this luxury.

  8. James Forrest is Lennon on




    You are a hun, peeing in my swimming pool. I am allowed to label you as such you uneducated, dirty moron.



    Go back to the Shadows …. You Shall Not Pass …



    Stinking, parasitic spawn of Satan. Pay your taxes or face the consequences.

  9. 67 European Cup Winners on



    I accept there is a bigger issue – but I fear they “get out of jail” with various workable penalties and still win the league – just a bit too much to take




  10. Sandman Is Neil Lennon on

    James Forrest is Lennon says:


    27 October, 2011 at 17:44



    Pay your taxes or face the consequences.









    You’re a bit late with that one, James.



    They traded their good little Brit tax-paying citizen souls for tainted title 25 years ago.



    Now Faust’s on his knees and Lucifer’s sitting by the Ibroke fireside warming the poker.

  11. TET



    I grudged not taking my place on the slopes of Parkhead that damp, cold night in 1994 against Kilmarnock. I decided not to go up to the park that night or go to the pub in the Barras that we frequented because I was genuinely worried that the pull of Celtic would have been too much and I would have made a mad, bold dash to watch my team.



    I stayed at home and listened on the radio because deep down I knew it was the right thing to do. It was right, for me, because I could see greedy, egotistical men dragging my club to extinction. I boycotted because I believed it would help save Celtic.



    The current situation is different. It’s not about our survival, its about their demise. As I said, I loathe everything about them and I would love, I mean love, to see them disappear for eternity. But my love of Celtic is stronger even than my loathing of them and consequently I will not stop going to see us if the only result is the demise of them.



    I may be waffling but I hope this explains mate.

  12. I fail to see the lead article as an eye opener. I would bet you any amount of money that Killie, Hertz,Aberdeen,DUFC and DUFC would be forming a disorderly queue to join The Orcs into a pre pack deal. They would be mad not to under current rules,maybe DUFC or Dunfermline would fear relegation ,but after a season in the first divivion ,and debt free they would fancy their chances of getting back in.


    Our main concern should be the standing of Scottish Football if this pre pack frenzy occurred. The SFA/SPL would be tarnished beyond repair in the football world and where would we stand on European competition entry? If the nightmare scenario unfolds,then we,Celtic, should call their bluff and veto any re-structure by threatening to pull out. Then let the fun commence.

  13. Over on the rtc blog there is another hun called Adam, he is trying his best to keep things positive from a hun point of view, and even he admits that losing the big tax case is ineviatable, he is a hun with a brain.

  14. the long wait is over on

    posted this on the last page to no reply



    “Anyone else hearing the big day for Them is tomorrow?”



    Perhaps it was a touch too oblique or maybe I am the only one.



    Really ? No one else heard that they are going into administration tomorrow?



    from a pretty reliable source too.

  15. James Forrest is Lennon on

    Sandman Is Neil Lennon:



    I just hope people realise that there are ways in which the dues can be paid in full, and that if the administrator is willing to be creative that they can realise every penny of the money owed in a way that leaves Rangers alive.



    They say that in the days of slavery, the plantations in the Deep South would feed their charges just enough to keep them working but not enough to enable them to run very far if they decided to escape.



    The concept should be easy enough for the KKK brigade at Ibrox to wrap their brains around …

  16. TET



    Gggrrr I type up my most eloquent explanation and then read back to see that you got it.



    If I was so inclined, I may be flouncing at this moment :)

  17. 67 European Cup Winners on

    James Forrest is Lennon says:


    27 October, 2011 at 17:44



    You wrote – in my opinion – a great piece earlier and I complimented you on it


    The stuff you are spewing out now does you no favours – again just my opnion




  18. Message to all hun lurkers.


    Why do you hate being called huns, huns? You must have heard the word a million times and yet it still upsets you.


    Nothing that you huns call us bothers me at all, and it never has, and it never will. The same applies to the whole Celtic support.


    There’s a reason for this difference in attitude.


    Have a wee lateral think and see if you can work it out.



  19. gebhoy is the taxmans tick tocking clock, tick...tock on

    Excellent article, and very scary scenario painted there Paul.



    If Celtic do anything at all to help skint fc, then thats it for me, they can raffle for anymore money off of me.



    No doubt the laptop loyalists will rally round and spout rubbish about whats best for the Scottish game, never mind do some digging and find out why they were awarded a Uefa Licence for this years Euro football.



    And dont be surprised if the rest of the SPL fall into line begging for “newcohun” to be accepted back into the top flight.



    and if they do the game is well and truly a bogey in this stinking little cesspit of country we live in.




  20. HT



    I understand mi amigo, and I tend to agree with you, as a club we are much more important, without Celtic, I doubt my life would be as complete as it is, Celtic have a major bearing on my everyday life, even that I don’t see them as much these days, they still have a say on my moods etc.



    They will survive in one shape or form, and I doubt anyone believes otherwise.



    This IS about Celtic, and the club we love.

  21. gebhoy is the taxmans tick tocking clock, tick...tock on

    And another thing, the skint fc “poppy” day is happening on the 5th Nov at their home game against Dundee Utd, they just dont do irony, 300 members of the armed forces to parade around the ground…….



    I wonder if any of them served in Afghanistan, i wonder what £50 odd million of equipment would have done to save lives or horrific injury……..



    The half wits just dont get it, revel and use “poppy” day but dont pay their taxes…..








    We seem to be arguing in circles here,from entrenched positions which no amount of reasoned argument seem likely to change.



    Some want them gone and some don’t. Some will refuse to return if the PLC support a newco,others say their love of he club will overcome this.



    So,MWD,what’s the scores on the doors with your survey?

  23. merseycelt dumps sadsally on




    You’re not waffling and, despite loads of bluff and bluster on here, your view would eventually prevail because our club would not be held responsible for the behaviour of cheating huns.




  24. thehuddlehound on

    If it transpires that a phoenix club rises out of this, and gains access to the SFL/SPL then I presume it’s a brand new club with an inauguration date of 2011 or 2012 and no history behind them, therefore no five stars on their shirts?

  25. 67 European Cup Winners on

    hamiltontim says:


    27 October, 2011 at 17:49



    You and me both – well said




  26. I do not care how many millions Celtic would lose,we would survive.



    I want an end to Scotlands most bigoted institution.



    Private deals will be done,there is very little if any chance that they wouldn’t get the necessary number of votes.



    Celtic will have to stand alone on this one,i will be devastated if they don’t.




  27. amadeus – The whole “hun” = sectarian thing only arose in the last few years.



    It seems to be a response to the huns being pulled up by UEFA for their sectarianism. In response, instead of, say, changing their behaviour and not being sectarian bigots, a section of the more mentally hilarious Rangers supporters decided to try to rebrand the word “hun” as sectarian so they can drag Celtic down to their level.



    A few years ago Follow Follow started a hate campaign against a BBC weathergirl because she jokingly referred to Ibrox as “Castle Greyskull”. Several huns claimed in emails and letters to the Beeb that “Castle Greyskull” was a slur mocking those who died in the Ibrox Disaster.



    Apparently being a hun means that the truth is whatever you want it to be at any given moment. (thumbsup)

  28. The huddlehound



    Airdrie are still Airdrie.



    Motherwell are still Motherwell.



    Dundee are still Dundee.




  29. Paul 67


    Great article but worrying all the same,it mystifies me how in the “buisness world” they can be on the verge of so much s**t but find a way(with a little help) of coming out the other side in a short space of time in a far more healthy position ! In the SOS last week T.English wrote about how matter of fact


    that he spoke of administration & liquidation with no feeling.Your article may be bang on but surely even your average hun would not want there history


    doon the stank. 5 stars on the jersey gone ? Season tickets with finiance companies worthless ? Aye ready 2012 ? I dont think IMO this will be a seamless move on the part of Mr Shwhyte.HH.

  30. TheGreenManalishi(WithTheTwoProngedCrown) @ 17:03,



    Thanks for that – I’ll have to read the article later though!



    Hail! Hail!

  31. Lennon n Mc....Mjallby on




    The ones on here who don’t want them relegated are huns and the Celtic support needs to start mobilizing itself to threaten bhoycott should a vote take place.

  32. Paul, a splendid article and I would no tlike to bet on the outcome.



    What I would be willing to wager, however, is that the reaction from the Division 3,2 and 1 clubs to Newco Darnel FC starting from the ‘bottom of the pile’ would be almost entirely favourable (from a financial perspective only I imagine).



    I suggest we lobby these clubs to make sure they raise their concerns with the SFA /SFL about the loss of income from not having Newco Darnel FC join the lower leagues.




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