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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if you hate the effin newco,hate the effin newco, hate the effin newco clap your hands.
UC
Tiny Tim, I hope you got my birthday wishes early this morning, ………. if not …..
Happy Birthday Tiny Tim aka big mhan :¬)
Vinny
Hail Hail to ye!
Mr Stimpson says:
27 October, 2011 at 22:55
**********************
ahhhhhhh! the auld songs from the jungle….. ye forgot at the end…..
and a na na na na na na na,
na na na na na na , na na na na na na na we are the rangers haters!
:¬)
ps I dont hate the rangers, just like the song lol
V
HH
Dacker, mate,
I tried to defend you, but if you’ve broken the rules of the blog, you need to learn and accept it and move on.
P67 provides this for free, no sookin up, but he deserves a bit of respect for that
You’re not the only one, I’ve had the odd ‘moment’ and been suitably admonished for it – and quite right too. A lot of bloggers kids read the blog
Dacker
You said you would put a hose down the barstewards throat, so would I, but I would have used the word I just used.
Nothing sinister, no need to go to confession :>)
Ulster-Celt
PMSL
MWD
the best thing for Scottish football would be the end of dignity fc for ever , teams like hearts Dundee united or even killie would become the second force in Scottish football, all those ayrshire huns who travel to ipox every week would simply support killy and all the Edinburgh huns who cant afford the train fare would follow follow hearts, its as simple as that ,
i can remember days of running the gauntlet after beating the huns home or away , the worst ever for me was a game at ipox were i had to hit a hun as he ran at me with a bottle as i came out of the main front stand, that was about 1979-80 ,like a lot of Celtic supporters i have many memories of the hatred directed my way just because i wore green going to a game , the sooner they go to the wall the better it will be for Scotland as a whole, they are nothing but a boil on the bummm of humanity
MWD
Are the Olsen twins male…? ;-p
hh
bjmac
I dont hate anyone, not even the huns I like living that way.
Try it.
Re WGS…..more than anything he did in the true football sense…..I have seldom been more moved by anyone or anything than I was when wee Gordon gave a tear stained, from the heart and wonderfully moving tribute to TB the day that great man passed on.
I has always liked Gordon but that day he spoke for us all and was truly wonderful.
THE EXILED TIM says:
27 October, 2011 at 22:56
What no bat signal?
I can quite believe there is a fear factor at play and have no idea how many Adams might exist, but rationally there is an honourable way out, trouble is not enough Tims support Rangers ;)
Vmhan…
We should bring that one back and maybe even the Z cars tune when the polis are on the move.
Minty the Laughing Cavalier all the way to his offshore bank
bjmac
Only in your warped heid.
:o)
Now keep digging.
MWD
My dear,dear,dear,dear,friend.. Lubo.
Been Buy awe day.. jist goat a minute..
Pal.. jist read yer submission ..
Sir Paul has come up wi a very creative financial, “Save the Bear”Scenario..
Howevah…..Concerning the Verdict that shall ultimately be reached,in the ongoing
G.A. Vs the I.R.S. Farrago of hopes, fears, doubts and wishes…
Ah am of the opinion..Unfortunately,one, which is Deifinitely NOT shared by the Majority of Celtic Fans, that the G.A. shall come out of it.. Veritably Unscathed.
Bloody but unbowed.
Still Intact, and very much still alive and Kicking.
Ah am basing my opinion,in this.. after talking it over with the Pookah.
He says that the G.A. shall be found to have acted in a Manner which, although, it was
calculated to LEGALLY AVOID the paying of IncomeTaxes within the Income Tax Laws, the method, which they employed, did not come under the Strict Interpretation of Practising the outright Criminality of…INCOME TAX EVASION.
We will soon find out.. Next month..
Again, we are pre-supposing that an actual Trial shall take place.
A further delay, may happen.
Anywey..that’s whit The Pookah says.. and Ah am going wi’ his opinion.
It may no be a popular wan, aroon the Celtic Fans Campfires.. but,
there it is.
Kojo.
yer pal…who likes ye aloater.
It would be interesting to see what the S.F.A./S.P.L. policy on ‘administration’ is so that when the great day comes, our judgements will be based on fact. We will also see those who want to implement it and those who want to change it. Otherwise we are whistling in the dark.
3inar posts lol , undeserved just like the huns cheating titles which very shortly will be stripped from them.
Message to der hun ….. if you put the same effort into paying the taxes due, as avoiding, then you’d be sweet smelling by now……
unfortunately for you …. I smell something different and its not pleasant :¬)
Moved on, and how
St John Doyle-I think the huns would have to notify the Stock Exchange they are entering Admin.
Bjmac
Bang & Olfsen? :)
Bhoys / Ghirls
Questions:
Who would be their Administrator? Could he/she be a member of the league of funny hand shakers & Trouser Leg shufflers…?
Who appoints the Administrator…? Could the Administrator appointer be a member of the Sheep’s Heed appreciation Society…?
Who appoints the Administrators appointer……….Hmmmm
There’s a bad stench of Hunguffery close by. Make sure you are all upwind when the fans are turned on…..In more ways than one.
If it does happen, stay at home and celebrate Bhoys & Ghirls, Orc’s are bad enough with their little white stars….. 0 and counting would probably be far too much for their imaginary superiority complex to take and tip them over the edge into their Hooligan abyss for good.
Isn’t it so exciting…. :D
GIRUT
Thumbs up
TLJD
What happened to this” press F5 for admin”
keys are worn out here
Mr Stimpson says:
27 October, 2011 at 23:05
**********************
:¬)
all the lovely looking polis lassies that we used to wind up, they must be well….. old by now (like me MWD afore ye say it).
V
HH
WGS was mocking a Hearts player who dived to waste time,wee stocky midfielder, foriegner.Possibly Skacel…….
Paul67 says:
27 October, 2011 at 22:45
Praecepta, ah, I see. Not aware of the smaller deals.
Thinking out the box – say X Mobile phone company pays each club £100K per annum. Their marketing people are hardly likely to sanction a similar payment if they are banished to Div 3 – are they? All those little logos on TV during interviews etc.
If we (as favourites) were to appear in wall-to-wall coverage (unlike them) – it would make sense for us to renegotiate the released funds from any joint contracts (as currently applied by that sponsor).
Yes?
The Legend Johnny Doyle says
I am sure Whytemare has Administrators on speed dial, going by his previous. ….
jimmci says:
27 October, 2011 at 23:04
great point… thing that strikes me with GS, is that he came to the club quite obviously not a supporter, but left as one. That was down to, I think the influence of Tommy, but also – as GS has said – the atmosphere around the club. Jock Stein had a similar conversion – although I’m not comparing them in managerial terms.
Most of us don’t experience that. We’re lucky enough to have been almost ‘born’ Celtic supporters – allegedly, I was at my first game when I was 7. It re-affirms my view that there is something special about this club when what happened with GS, happened.
Anyone logged onto FF recently. Are they actually discussing what is going on or are they doing the “ostrich”
Haven’t Rankers already been found guilty of evading tax, i.e. the ‘wee tax’ case which has been admitted to but with just the penalty being disputed?
Kojo says:
27 October, 2011 at 23:06
The RTC blog gave me the impression that although HMRC had enough to pursue a criminal case they chose the alternative that EBTs were used inappropriately to avoid tax and if the FTT agree (and there is evidence that payments were contractural not trust based) then the tax will be due to be paid (but no criminal proceedings).
If Rangers go into administration, they will continue as normal with a 10 pt deduction.
If they are taken over by Newco Ltd to avoid all creditors, watch out for a restructure of the league.
I always said that a 38 team SPL was the way ahead.
Not read back much so apologies if this is a repeat of previous views.
If rangers go bust and have to form a new co then I’d be happy to say bye bye.
We all know that’s unlikley and everything will be donw to ensure they stay in the league. Paul suggests that RFC NewCo will approach the SPL/SFA with an offer. No problem, but you have to take a 60 point deduction and good luck with the relegation fight.
Rico
its no coincidence that all the darkknights friends are insolvency experts,
as for the administrator i think RTC said the darkknight would apoint him or her ,i could be wrong though mind not as sharp as it used to be lol
Praecepta ,
apologies if this has been covered – jumping in and out and maybe missed any developments.
Re your sponsorship/revenue generating idea .
In the unfortunate situation where we don’t have any competitive euro football (which has it’s own positive cash benefits) , could Celtic look to other , high-profile, clubs who also didn’t qualify and organise a friendly league similar to CL and EL ? Or would that cheese Uefa off ? Imagine picking another 4/5 teams of the quality of Liverpool (this season) , Feyenoord , Juventus and Stuttgart and playing them on a home/away basis throughout the season ?
4/5 home games , package of say £100 adults (£30 kids) could generate up to £4-6M in gate receipts alone . play games on monday/friday so it doesn’t clash with CL/EL and sell the rights or have it as ppv on C67 .
just back-of-fag-packet figures but the options are there .
Sanna
Shieldmuir Celtic says:
27 October, 2011 at 23:06
Many posters in partivular TBB have analysed the rules of both SPHell & SFA, there is still a number of options open to the huns, it will largely depend on the type of insolvency event, which depends on CW’ strategy.
Those Craigneuk bhoys are lazy readers ;-)
hh
bjmac
Came on to talk about Celtic.
Fair enough.
I’ll leave youse wae this. (Vmhan See you Saturday)
Somethin’ hopefully to get us in the mood!
Can you feel it in your heart, can you feel it in your soul
Can you feel the rising tide of pride as the breakers peak and roll
Can you hear the those urging whispers turn to roaring calls and cheers
Can you see the Hoops and Paradise shine bright and vanquish fears
Can you taste the Celtic sweetness can you touch the Celtic sky
Can you stride with hope and glory with your Celtic head held high
Can you hold the burning dream fire, can your smile light up the dark
Of course you can and so can I as we march to Celtic Park!
Hail Hail
hail hail
Estadio
Moonbeams WD. \o/ Supporting Neil Lennon 100%. C’mon the hoops. says:
27 October, 2011 at 22:35
Used to, until Div banned the word Hun. Why?