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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Awe_Naw_No_Annoni_Oan_Anaw_Noo 18:47
Six hours? Where are you now? Ive missed a few episodes.
Three ahead soon to be four is difficult for games, six cant be good for it.
EN
the celtic board should sell the name of the stadium for a decent some of money….say £10million to a company like … guinness, budweiser etc. so we will have money to buy a couple of players
the only difference will be the stadium will be called “the guinness stadium” and there would be guinness signs about the place
the only bad thing is rankers would then boycott the company (but i don’t think to many rankers fans drink guinness :-) )
it would be class if it was called the guinness stadium or the budweiser stadium :-)
HH + KTF
DB67
MICK 11- and she was very quickly cut off…..
Anyone saying we should boycott our own games if the board decide to help out Rangers needs to take a look at themselves but what should happen is every one of the directors should chased out before their bums can hit their heated seat for the next game.
If another other club keeps them in the league then not one Celtic supporter should financially contribute to that team.
It simply cannot be allowed to happen. I don’t buy that we’d lose huge amounts of revenue if Rangers were to exit the league but even if we did it makes no difference.
And Paul67, sorry but I’m stealing your line for my screen name!
thomthethim says:
27 October, 2011 at 18:52
For me, there is only one course of action for Celtic, if Newco are reinstated into the SPL.
The club must give immediate notice of resignation from the League.
……………..
Great post Thom, one that I’m with all the way.
Vinny
HH to ye!
thomthethim says:
27 October, 2011 at 18:52
I will bet you a cyber pint that IF it comes to a vote we will not vote against…
I respect anybody’s decision to withdraw their support but I will not pull my support over this issue, as long as there is CFC and a team on the park, I will be there to support them as long as I can. That is not to say that I would happy.
Keep the Faith!
Hail Hail!
Whatever part of my club is dependent on Rangers I am willing to lose.
Wonderful sentiment Paul.
We should rally around this.
I see it was picked up on the Huddleboard as well.
‘GG
One Scotland Many Neil Lennons – formerly known as Malone19 says:
27 October, 2011 at 18:58
Now I am with you on your point that IF we did vote to turf them out and other Clubs to keep them then I will never set foot in another football ground apart from Celtic Park…
Keep the Faith!
Hail Hail!
good evening.driving home tonight just after 6 i was listening to radio clyde(forgive me lord)anyway a guy Alack was on saying Neil Lennon was IN His view aggresive when Sproule and Kayal clashed near the touchline.he would have better coming on and saying he hated Neil Lennnon,i thought to myself that as they say the lights on but nobodys in.If he had a decision to make and two people were drowning Robert Black the child killer or Neil Lennon you would no his decision and it would not have been Neil Lennon
Paul67 et al
If the SPL votes to allow Rangers to either remain in the league or worse allow them to re enter under a different guise (wearing Guido Fox masks perchance) then we should resign immediately and rejoin the SFL. The SPL will not survive without us.
Lennybhoy
@18.59
Aye that’s kinda what I’ve been trying to say…….I think :)
I love asking a Hun if they have won a European trophy,tell me of there cup winners cup.Argue Ive never heard of it.Champions league is old European cup,Europa league is old uefa cup never heard of this cup winners cup trophy.OK i know its petty but it really annoys them,imagine if you could do that about all there history.Sorry mate never heard of 5 stars etc,would be brilliant
Personally i don’t think it will happen,they will wriggle out of it somehow.We will moan about bigoted wee country and live will go on.
Thought Celtic started to look a wee bit like there old selves again,loved when Lennie burst out the dugout and squared up to the Hibs player.
Uefa have invited Sion to a consultation meeting to consider their possible re-integration into Europa League Group I.
European football’s governing have already held talks with Celtic, who took Sion’s place in the group, Atletico Madrid and Udinese.
Sion were thrown out of the competition after fielding ineligible players in their play-off matches against Celtic.
But the Swiss club have mounted legal challenges to their expulsion.
Uefa rejected attempts by the club to regain their place via the Swiss civil court in the canton of Vaud, insisting that the Court of Arbitration for Sport is the only authority with jurisdiction over the matter.
Continue reading the main story
If the Court of Arbitration for Sport decides in favour of FC Sion in the dispute between Uefa and the Swiss club, the Uefa Europa League calendar may have to be adapted
Uefa statement
A Uefa statement read: “After having consulted the clubs in Group I of the Uefa Europa League, Uefa has now invited FC Sion to express its views on the potential impact of the club’s possible reintegration in the Uefa Europa League, and on the match schedule in particular.
“Respecting the process as announced, Uefa is pursuing its consultations with the clubs that could be affected by FC Sion’s possible reintegration if the Court of Arbitration for Sport (Cas) should decide in favour of the club.
“Uefa has therefore invited the FC Sion management to discuss the possibilities.
“If the Cas decides in favour of FC Sion in the dispute between Uefa and the Swiss club, the Uefa Europa League calendar may have to be adapted. The Cas wishes to hear both parties on 24 November.
“If accepted by FC Sion, this consultation could take place next week.”
Contingency plans for Sion’s readmission have already been made including an option to annul the group fixtures already played between Celtic, Udinese, Atletico Madrid and Rennes and starting a new five-team group with teams playing each other once.
Others options would see Sion join Group I as it stands and playing each team home and away or the Swiss club moving directly into the last 32 of the competition after an undefined play-off.
Merseycelt
Had my suspicions about you all day,thanks you’ve just confirmed,along with the Idiot,you two are both huns.
J
As many have said better than me! excellent last few lines Paul “whatever part of my club is dependent on rangers i am ready to lose”. Totally agree.
It is a very scary thought that ‘they’ could be allowed to get away with the financial cheating to match there over a century of on the pitch cheating.
It would be even more scary if the Celtic board were to even consider voting to allow the new huns to join the spl straight away
Now just get back to telling us when we can celebrate the death of that institution of bigotry!!!!!!!!!!!!!!!
EN
Not in washed out BankoK its not !
HH
lifted fae bbc
dunno if its been posted
if they r reinstated
oor slim slim chance of the title is gone
lennon’s passion 19:06
The bewildered folk with five star tatoos would be even funnier than they are now.
EN
the celtic board should sell the name of the stadium for a decent some of money….say £10million to a company like … guinness, budweiser etc. so we will have money to buy a couple of players
the only difference will be the stadium will be called “the guinness stadium” and there would be guinness signs about the place
the only bad thing is rankers would then boycott the company (but i don’t think to many rankers fans drink guinness :-) )
it would be class if it was called the guinness stadium or the budweiser stadium :-)
HH + KTF
DB67
hamiltontim says:
27 October, 2011 at 19:06
Cheers mate…
How you doing, hope your doing okay, considering the events of the last week?
Keep the Faith!
Hail Hail!
Awe_Naw_No_Annoni_Oan_Anaw_Noo 19:08
Nice, rain? Think I remember that stuff… Miss it, next holiday will probably be close to EK…
EN
Donegalbhoy67
Added to the roll of shame.
Estadio Nacional says:
27 October, 2011 at 19:10
lennon’s passion 19:06
The bewildered folk with five star tatoos would be even funnier than they are now.
EN
as a wiser man than me said,the 5 stars denote the number of continents they are not welcome in.
how do you attach a link to a webpage? anyone?
thomthetim 18.52
totally agree with your sentiments
Please, please, please, let them go under, please let that deluded shower of gutter rats get what their behavior deserves, their arrogant “We Urra Peepil” supremacist bawbags.
Ahh feel a bit better now.
gebhoy
Lennybhoy
Getting there buddy, been kept busy which helps :)
Funeral a week today so need to work on ma speech!!
Hope you’re doing well big fella.
Drummer Bhoy says:
27 October, 2011 at 19:17
Follow the link creator at top of home page and paste your link and name it or e-mail it to me and I will sort it for you lennybhoycfc@gmail.com
Keep the Faith!
Hail Hail!
Could we not take court action against the SFA for lost revenue from them granting European licenses when they shouldn’t have?
What will happen to the league titles when Rangers go bust? Will they go to 2nd place teams or cease to exist?
hamiltontim
Ive not been on for a few days and just wanted to say how sorry I was to hear about your father.
Thoughts and prayers are with you and your family.
HH
Don’t quite see the logic in our democratic society if 10 out of the eleven clubs have to vote for them.Should it not be the same as ‘the ludge’ where a single black ball seals their fate!!!! I normally wait until all is before us before ‘jumping in’ but if Celtic FC support the hun in their time of need, I will not have anything to do with this club I love ever again.
Hail Hail
KINGLuBO
Tinytim, Airdrie whatever-they-re-called will not exist in 2 years from now. Guaranteed :)
jmccormick 19:15
Ha, Im sure they are barred from more than that…
EN
the glorious balance sheet
Don’t know about that. They might not be doing great but they have a very young team who wont be on much money and the stadium makes good money from 5, 7 and 11-a-side pitch rental.
CONFUCIUS DIDN’T SAY…
Man who wants pretty nurse, must be patient.
Passionate kiss, like spider web, leads to undoing of fly.
Lady who goes camping must beware of evil intent.
Squirrel who runs up womans’ leg will not find nuts.
Man who leaps off cliff jumps to conclusion.
Man who runs in front of car gets tired,
man who runs behind car gets exhausted.
Man who eats many prunes get good run for money.
War does not determine who is right, it determines who
is left.
Man who fight with wife all day get no piece at night.
It takes many nails to build a crib, but one screw to fill it.
Man who drives like hell is bound to get there.
Man who stands on toilet is high on pot.
Man who live in glass house should change clothes in basement.
Man who fish in other man’s well often catch crabs.
Finally CONFUCIUS DID SAY. . ..
“A lion will not cheat on his wife, but a Tiger Wood!”
“In The Air Tonight” Ringtones to Cell
I can feel it coming in the air tonight, Oh Lord I’ve been waiting for this moment, all my life, Oh Lord Can you feel it coming in the air tonight, Oh Lord, Oh Lord
Well, if you told me you were drowning I would not lend a hand I’ve seen your face before my friend But I don’t know if you know who I am Well, I was there and I saw what you did I saw it with my own two eyes So you can wipe off the grin, I know where you’ve been It’s all been a pack of lies
And I can feel it coming in the air tonight, Oh Lord I’ve been waiting for this moment for all my life, Oh Lord I can feel it coming in the air tonight, Oh Lord And I’ve been waiting for this moment all my life, Oh Lord, Oh Lord
Well I remember, I remember don’t worry How could I ever forget, it’s the first time, the last time we ever met But I know the reason why you keep your silence up, no you don’t fool me The hurt doesn’t show; but the pain still grows It’s no stranger to you or me
And I can feel it coming in the air tonight, Oh Lord…
HH
hamiltontim
only reading of your sad news now, sincere condolences, 2 weeks ago today saw my mother’s birthday and 6 months to the day after she died. Just remember you will have bad days and slightly better ones and it is true you just have to take each oner of those days as they come
keep the faith
Truth 2-6, 1-7 please dont make incongruous references to the holocaust. You support a team whose ‘travelling support’ made ‘red hand’ nazi salutes in tel aviv of all places. Wasnt that shameful?