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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Vmham, thanks.
Thindimebhoy, indeed.
Praecepta, worth a shout.
HamiltonTim
:-)
is Bang Olofson similar to Matsui which is popular in ol’ Carluke….
A wee song for my amigos and other friends in Celtic I’ve not met….. maybe some day!
its a especial yin for GL2….. here ye go big mhan!
http://www.youtube.com/watch?v=kIjkW6iyXNo
Vinny
HH
Just because… its there
You’re dressing real funny
and you talk like a child
You spend all your money
and you’re runnin round wild
You’re goin your own way and that just will not do
I’ve gotta say there’s somethin strange about you
You won’t take the money
You won’t take the praise
You won’t take the bribes
and that won’t cut it these days
You won’t be corrupted and that just will not do
I’ve gotta say there’s somethin strange about you
and its
crazy
to wander round life like its
easy
no trouble and strife you’ll get
lonely
when you’re walkin alone and there’s
fear fear fear
no-one near near near
I work every hour
and I save every dime
I’d like to talk more
But I don’t have the time
I’ve got my own reasons and I’m sure you’ll agree
You’ve gotta say there’s nothin strange about me
JimmyQuinnsBits – I wasn’t born a Celtic supporter. My Dad wasn’t interested in football till I pestered him to take me to see Celtic, and my Mum always thought football was stupid, although she’s delighted when we win.
My classmates at school got me hooked on Celtic. Some of the most devout Celtic supporters were kids of Italian descent, who brought Celtic and Irish CD’s into the common room, and introduced me to all the songs, got me interested in the games. Those were hard times for Celtic, and that added to the appeal for me. St. John Ogilvie suffered tremendous pain and hardship for his faith and in our own tiny and comparatively inconsequential way, so did Celtic supporters. Faith of our fathers, and all that.
There is something amazing and unique about Celtic. It’s more than just a football club, it’s a community. A tremendously warm and decent community that spans continents and generations and people from all races and religions and backgrounds.
There is nothing else quite like it.
(thumbsup)
Vmhan
You know there are no strangers in here, only friends you’ve not yet met !!!
If The Huns continued as a new business, how would that impact on a UEFA licence?
I thought there was a timescale for clubs league membership before being eligible.
iain duncan smith giving an insight into what a hun is on questiontime
Thought I would share this with you bhoys, although ajcfc (erstwhile poster) already knows: I am leaving Public Service in the NHS to embark on another career of Public Service at Dundee College in a few weeks :-)
Much pints are being had just now :-) <-quasi lucid smile
My dear,dear,dear,dear,friend..Auld Heid.
Pal.. Ah am talking aboot whit the Pookah said.. REGARDING the method which the G.A. used in Avoiding the Paying of Income Taxes on the earnings of Certain Players in their Employ at the Time.
Ah an no discussing any other Tax Troubles that the G.A. have gotten themsels intae.
Noo, in all honesty.. Ah am a complete Neophyte when it comes to coming to a Sensible Conclusion oan the Legality of whether the G.A. were right or whether they wur wrang,in their Income Tax dealings.
Ah am only passing oan whit the Pookah said regarding the matter of the Upcoming
G.A. Vs The I.R.S. Income Tax Case.
Ah Side with whit the Pookah oan this..
Because….IF Ah Dinnae…
Well..if ye Saw the Size that He is..
Ah wid No hiv tae explain, why Ah am agreeing wi him!
Kojo
yer pal..who likes ye aloater
Burnistoun…superb…just like Blantyre…
sannabhoy says:
27 October, 2011 at 23:15
I very much doubt we could operate outwith the UEFA/ FIFA calendar during any given season – apart from when we had a winter break (example we played Liverpool in Dubai).
Dates are set for Internationals and CL/ Europa ties – arranged tournament games can’t be seen to clash.
Exceptions being 2 teams (out of Europe) – example them .v. Liverpool not clashing with local Euro TV coverage and the odd testimonial games that infrequently crop up.
Pre-season appears to be the only window.
^^ that would be: I went for a job interview this morning and was offered the post by 4pm this afternoon :-) <–less lucid smile.
Off to log off MacOs for a pre-Skyrim blast on Oblivion now.
Night lhads
Bjmac
Living in ML3 I wouldn’t know, I’m strictly a BEKO man mysel :)
philvis
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Who is the Blantyre Butcher?
BT
would you nip wan oaf?
Praecepta , as i said , just flying a kite. i believe Liverpool took games rights and showed it on LTV – what’s to stop a group of teams using the monday’s during CL weeks to play a series of friendlies? Price it right and keep it as a friendly and what can uefa do ?
you could find 8/10 mondays between september (when you know you’re out) and april to have a kick-about with some pals !!
philvisreturns says:
27 October, 2011 at 23:25
In a lot of ways, thats more emphatic than being born into it… I’ve never doubted it was right, but to come to it through your own volition validates what we’re all about.
A bit like religion I s’pose…. and that from an atheist!
Philvis
Your best ever post on here, stick to Celtic my friend :)
OK, Last bit of nonsense…to the tune of the laughing policeman
There was sad old orangeman, his name was billy pratt
He headed of to sunny spain and acted like a tw*t,
He thought the Spanish polis really were quite thick
He shouted out ‘F T P’ and ended in the nick
Oh ha ha ha……
He stood there with his Hitler tache, his right hand in the air
He screamed and shouted out his bile but said it wisnae fair
When Juan the copper belted him an’knocked him tae the ground
and though they searched for half an hour, his brains they never found!
Oh ha ha ha ……..
And now that sad old bigot has found his club is on trial
And so he’s gone and promised no more to sing ‘seigheil’
He’s changed his views forever, he’ll stick to all the rules….
With just one final wee request…. Tae close those fenian schools!
Oh ha ha ………
The sadness of this story, is plain for all to see
Evolution’s passed him by , he’s stuck up in his tree
From European travel his club will soon be banned
Unless he tries his hero’s plan …… invade Sudetanland!
Oh ha ha
Just posted on RTC blog
@Pmacgiollabhain “heard from reliable source,CW,accountants,and lawyers in meeting at ibrox”
top post philvis
praecepta says:
27 October, 2011 at 23:29
Did we not have like a millionty goals chalked off in one of the Dubai Super Cup games? (ok, it was four) and the game finished 1-1 with the lessers winning on pens?
hazyCSC
Interesting contrast between English football and it’s sports media reference their handling of racist remarks by a footballer on TV and Scottish football and it’s sports media’s handling of racist remarks by a fottballer on TV.
John Terry, England captain, Chelsea captain, facing allegations by fans and being called to account.
Andy Goram, Rangers goalkeeper, was alleged to have made racist remarks toward Pierre van Hooijdonk by fans, having just saved his penalty. Swept under the carpet.
Different era? Perhaps. Perhaps not. Different attitudes? Undoubtedly.
philvisreturns says:
27 October, 2011 at 23:25
************************
You maudling? I already liked ye ….. even though nah not going there!……. I already like ye and now even more sir!
Been there wae the Italiands in Greenock, most would tend towards the Celts and some very passionate about CFC, I did however meet a few hun Italians…. I mean that they favoured the team who hate Catholics, Irish people , Polska people and anybody that doesn’t conform to the Protestant supremacy NAZI model….. some of them don’t know its a NAZI model, but there ye go!
Anyway I likes ye and yir defo not a Nazi and Defo a TIM so HH to ye Philvisreturns. If you’ve returned, where ye been? am I the 1st to ask :¬)
V
HH to ye Phil
hamiltontim
My timing is out, saw the posts late, – but deepest condolences on your loss, and you’ll find solace in this community
Kind regards
bourne
JimmyQuinnsBits says:
27 October, 2011 at 23:34
philvisreturns says:
27 October, 2011 at 23:25
Two great posts, guys.
Now Philvis, you’ll ruin your reputation with stuff like that, you may want to ask Paul67 to delete, alternatively get some posts on quickly, in your more regular style (thumbsup)
hh
bjmac
Sabre67 says:
27 October, 2011 at 23:37
Different era my @r$€, it was utterly unacceptable in PvH’s time with us to come out with those type of comments (unless the victim was of Timmydom and the perp was an Orc of course, in which case, it’s banter)
BT
You got no tribs tomorrow, you’re up late? ;-)
dirtymac are you an oblivion fan , reinstalled it last week to get me ready for skyrim ,it looks awesome cant wait to try it
Right, defo loggin out of MacOs and into Win7
feelsdirtyCSC
Greenlion2
Nothing but praise for WGS, that touchline image just came to mind, as I said, not the best. And I think our press were worth his putdowns.
sannabhoy says:
27 October, 2011 at 23:34
It’s possible if your team was out of all meaningfull competition bar the league.
Take our position – we are still in 4 + our kids are in the NextGen – when could we fit it in?
GL2
THANKS.
TT
dirty mac
I signed up to Pie & Bovril. Posted my survey. Was reported as spam 6 times within 5 mins. Account suspended.
Pie & Bovril was a site I have always peeked in at. Pretty broad community from array of Scottish clubs. Thought I’d be able to gather more response from all over rather just the Tim vote.
Can you help?
MWD
Estadio
Genius mate!
BCR
still bedridden with bad back… 30/500 medication at the moment…
spaced oooot