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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Sean69
Thanks mate, CQN has been a great escape and the lovely messages have been a genuine comfort.
Did you make it last night?
Vmhan who Supports Neil Lennon says:
27 October, 2011 at 18:58
Thank you.
That club and all it’s Scottish football affiliations, have been an abomination in Scottish life.
I would be a liar and a hypocrite if I said that I wished for anything other than their complete obliteration.
We are not going to get that, but, if Celtic were to offer any comfort or support, for whatever reason, then the club will have lost my respect, for the one and only time in sixty years.
I do not say this lightly.
Football can and will survive in Scotland without them.
It may involve downsizing to a level that many on here wouldn’t tolerate, resulting in a leveling in the game.
However, we have operated at a lower level for most of our existence, pre- Europe, e.g. and the support was at it’s strongest and most dedicated.
As long as Celtic act honourably and within the ethos of the club, any drop in the support would not be missed.
Maybe the whole game has to go back to basics.
the glorious balance sheet 19:30
Surely not…
Their proud history.
EN
Paul67
After the World Cup 66 final, Sir Alf told Alan Ball – “Young man – you will play plenty more games for your country but you will not play many better”.
Ball said he felt ten feet tall.
Paul – you may write many more articles for CQN – you get the gist…
lemme ask youse all 1 question………
what would the huns do if we were in their position?
i think we all know the answer…….
HH YNWA + KTF
DB67
Malone19, the stadium is owned by a company who have nothing to do with airdrie who rent use of stadium from them – a consequence of airdrieonians financial difficulties
hamiltontim
Hail Hail mate.
Believe or not I didn`t make the game and to say I was peed off is an understatement.
I was down in Newcastle on business yesterday and got severely held up.
Nitemare!!!
Heard the first half on the radio on the way back up the road and caught the secon half on TV.
Very pleased to be in the semi-final.
Just hope we can carry the second half performance into this weekend.
Sandman Is Neil Lennon says:
27 October, 2011 at 17:38
Thanks mate
The sair thumbs back.
Paul67….Excellent article….!!!!!
There is no way any REAL Celtic fan would want RFC to survive….look at their history / culture / fans…….Their arrogance and criminal greed etc led them to defraud the taxman, and justice needs to prevail……they need to pay their taxes, like every other club, and if they decide to go into admin, rename themselves, then the FIFA Process would have to be followed ‘to the letter’ …..THEY WILL NOT BE ALLOWED TO COME STRAIGHT INTO THE SPL….NO OTHER TEAM WOULD BE ALLOWED TO DO THIS….
See if we had pushed for a Celtic B team in the lower divisions the PLC could vote to send them down and still guarentee their precious ‘old firm’ income.
Is that idea dead? Not been upto date but not heard about it for a while, would be a great thing for Scottish football.
DonegalBhoy67…….You have hit the nail on the head…….Celtic would be crucified…. RFC REAP WHAT THEY SOW….
EN
I don’t see why not, whatever happens, football in scotland will forever change.
Bets of both worlds.
just been out to move my car along the road ( double parking story) Real radio was switched on and I just heard the bbiggest fud of all time,some dope called Jimmy calling out Neil Lennon as a “poison” and “disgrace” to Scottish football.He even went on to say “we dont want him in this country!!” note the “we” . Another quote ” the best thing will be when The Glasgow Rangers win this league and we all get rid of him ” Sickening to the nth , and shame on that station for letting him rant on air.
Yet another example of why we must win this league, God willing.
Dear DD,
I I will be king And you You will be queen Though nothing will Drive them away We can beat them Just for one day We can be Heroes Just for one day
And you You can be mean And I I’ll drink all the time ‘Cause we’re lovers And that is a fact Yes we’re lovers And that is that
Though nothing Will keep us together We could steal time Just for one day We can be Heroes For ever and ever What d’you say
I I wish you could swim Like the dolphins Like dolphins can swim Though nothing Will keep us together We can beat them For ever and ever Oh we can be Heroes Just for one day
I I will be king And you You will be queen Though nothing Will drive them away We can be Heroes Just for one day We can be us Just for one day
I I can remember Standing By the wall And the guns Shot above our heads And we kissed As though nothing could fall And the shame Was on the other side Oh we can beat them For ever and ever Then we can be Heroes Just for one day
We can be Heroes We can be Heroes We can be Heroes Just for one day We can be Heroes We’re nothing And nothing will help us Maybe we’re lying Then you better not stay But we could be safer Just for one day
What do you say ?
Sean69
Didn’t get to see it all but by all accounts the second half showing was more like last season than this.
Who knows maybe the last few weeks will be the making of Lenny’s Lions!
These pundits on the phone-ins are REALLY worried about Celtic……it really is good to know that they are anxious to see us doing well…..!!!!!!!!!!!!!…LOL….
KOJO KOJO my auld mucker, Are you lurking?
Would love your thought on current brilliant article by Paul
HailHail
KINGLuBO
THE EXILED TIM 19:45
Bringing big crowds to the lower divisions, cash to lower league clubs who can develop players, giving Celtic kids good real experience, I cant see a genuine reason against it. Guess the huns cant do it much like the defunct reserve league so we are being told its a no go and accepting it.
EN
hamiltontim
Here`s hoping mate, here`s hoping.
hamiltontim says:
27 October, 2011 at 19:31
Sent you a message mate…
Keep the Faith!
Hail Hail!
McCormick
And that’s exactly why Neil should be given longer and properly backed,they are hoping against hope they win the league to get Neil sacked,even if we lose this one,I say he stays until he wins the league.
Lennon mjalby……..absolutely……NEIL stays
Lennon n Mc….Mjallby says:
27 October, 2011 at 19:08
Merseycelt
Had my suspicions about you all day,thanks you’ve just confirmed,along with the Idiot,you two are both huns.
—–
With respect, you dont read very closely, do you?
There is no logic in the punish celtic for rankers’ wrongdoing argument. Someone else on this blog said that we should resign from the SPL if they are reinstated. So, because they do not get relegated, we relegate ourselves; because they do not get financially punsished, we punish ourselves financially.
I would love it if they ceased to exist but this is sad, bigoted little scotland where, outside of our club, most people who would be categorised as fair minded think that “we’re as bad as each other”.
Others say we should resign because to reinstate the hun would mean the death knell of scottish football; as if scottish football had any integrity left. Reference last season, anyone?
Celtic have been fighting the bigots and cheats since 1888. It is because of cheating that they have more trophies than us.
If it was up to me, I’d have Ms Findlay, James Forrest and Auldheid to represent the club but, unfortunately, the custodians of the club don’t agree!
Of course, we should fight to portray them as the cheats they are and to continue to seek natural justice but, if we dont win, we fight them on the pitch as we have been doing for over 120 years with our support!
And dont call me a hun again, you fool!
HH
Paul67
if dignity go for receivership now the the entire takeover and due dilligence fiasco will be shown up for exactly that. I suspect that the revenue would come after the newco for the unpaid tax as what is going on here is a scam hatched by SDM , lloyds and CW.
If the cashflow spreadsheet on RTC is anywhere near correct and CW has pumped little money in, going against his committments, surely HMRC can still chase these chancers.
I appreciate that the law and commonsense don’t always tie-up but would appreciate legal view from the bhoys.
inanticipationofamesscfc
Lennybhoy
I’ve replied. You keep your head up mate, God Bless.
Merseycelt
Your a hun,now crawl back to FF.
hamiltontim says:
27 October, 2011 at 19:57
Got it, hopefully see you soon…
Keep the Faith!
Hail Hail!
had a dream that i won the Euro lottery bought the dark side flattened Ibox Built a Cathedral there and everybody lived happily ever after.Sorry i then woke up
TomtheTim @1934
I can see that came straight from your heart. I agree totally in all you said.
No matter what happens CELTIC is too big in all of us but we must do the right thing
KINGLuBO
BTW
I am having a party. Right now !
Every one is so serious. It’s 2 in the morning here I am well and truly oiled. Thought I would make the live fitba at 2.30 but the lemongrass soup was just too potent. One for the DJ on Sat.
d “Seasons In The Sun” Ringtone to your Cell
Goodbye to you my trusted friend We’ve known each other since we were nine or ten Together we’ve climbed hills and trees Learned of love and ABC’s Skinned our hearts and skinned our knees
Goodbye my friend it’s hard to die When all the bird’s are singing in the sky Now that the spring is in the air Pretty girls are everywhere Think of me and I’ll be there
We had joy, we had fun We had seasons in the sun But the hills that we climbed Were just seasons out of time
Goodbye Papa, please pray for me I was the black sheep of the family You tried to teach me right from wrong Too much wine and too much song Wonder how I got along
Goodbye Papa, it’s hard to die When all the birds are singing in the sky Now that the spring is in the air Little children everywhere When you see them I’ll be there
We had joy, we had fun We had seasons in the sun But the wine and the song Like the seasons have all gone
We had joy, we had fun We had seasons in the sun But the wine and the song Like the seasons have all gone
Goodbye Michelle, my little one You gave me love and helped me find the sun And every time when I was down You would always come around And get my feet back on the ground
Goodbye Michelle, it’s hard to die When all the birds are singing in the sky Now that the spring is in the air With the flowers everywhere I wish that we could both be there
We had joy, we had fun We had seasons in the sun But the stars we could reach Were just starfish on the beach
We had joy, we had fun We had seasons in the sun But the stars we could reach Were just starfish on the beach
We had joy, we had fun We had seasons in the sun But the wine and the song Like the seasons have all gone
All our lives we had fun We had seasons in the sun But the hills that we climbed Were just seasons out of time
Love you all to bits
HH
Much has been said about whether the member clubs would or should vote to keep newhunssameoldstory fc in the spl
we can argue the rights wrongs and indifferences of it,
we can quote ghandi and his stance on peace love and reconciliation, we can comment on the financial gurus whose opinion may be that scottish football would die on its knees without the dignity of dignity fc
Moi?
I think the Daleks had the right idea…
EXTERMINATE! EXTERMINATE! EXTERMINATE!
Question
If Rangers go pre pack and get away with it, what happens to the European co-efficient
Does Scotland lose the accrued points of Rangers FC. Does that mean the national co-efficient suffers. Do Rangers start with a co-efficient of 0 plus the country average, in other words the same as Brechin would have if they get European entry
Clearly this is a minor issue, against the moral outrage of a Newco in the SPL, however I just wondered if anyone knew
Lennon n Mc….Mjallby
You are evidently a sad little man who is unable to appreciate an opposing point of view.
I will refrain from further cheap shots whilst hiding behind a cyber blog except to say that you are evidently the type who wouldn’t have the guts to call me a hun to my face!
Now, if you dont like what I have to say, scroll on!
Lennon n Mc….Mjallby says:
27 October, 2011 at 19:59
if he is a hun, what does that make you?
Tiny Tim
Happy Birthday!
Is it a front loaded pre pack?
EN
Whatever anyone says, we have scottish football by the short and curlies, we are in a position to demand what we want, and we will get what we damand, we hold the full deck.
I think the club should demand that a public transparent referee system be introduced, this will help the game untold, for a start footballers will be allowed to play the game again,and referees will find it very dificult to cheat.
I don’t know where the club are with league reconstruction, but having a team in the lower divisions makes perfect sence for all involved, the extra money generated for the smaller clubs may well see them staying afloat.
The befefits to the club will also be untold, we could see how the youngsters are developing in a competitive enviroment, and any that look like making the grade, promote them, and sorry to be ruthless, punt those who won’t live up to our standard.
It’s a win win for Celtic, it’s a win win for the sfl, but I doubt there are many enlightened enough out there who will ultimatly decide.
Pity really, as this is an oportunity that will never come to pass again, and for football in scotland to survive, the oportunity must be taken, or, lights oot I’m afraid.