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.
[calameo code=000390171bb1634f4d942 lang=en page=1 hidelinks=1 width=100% height=500]
1,511 Comments- Pages:
- «
- 1
- ...
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- ...
- 36
- »
waco says:
27 October, 2011 at 23:41
Aye, oldest daughter plays it on her laptop too, although she’s somewhat miffed that she’s banned from Fallout3, Bioshock 1&2 and of course the upcoming Skyrim.
Moonbeams WD. \o/ Supporting Neil Lennon 100%. C’mon the hoops. says:
27 October, 2011 at 23:43
One of the mods is on my facebook, I’ll pm her to reinstate it (or message Div for same) – not sure if I’m still part of the P&B ‘clique’ any more though after a social experiment on there (allowed by Dave and a couple of other Mods at the time) that didn’t paint the site in a particularly good light – it involved me masquerading as a fan of my second team for a good while, yet posting the musings of a fan of my first club. The differences in people’s attitudes were absolutely staggering btw.
Anyone on here that is a regular on P&B will know who I am/was on there from a few years back (it’s not a great leap from Dirtymac)
Tbb.
The pre pack route is a risky one for beady eyes. The very behavior you mentioned along with his previous record and statements should be enough for hmrc to report him and try to get him disqualified for up to 15 years. Obviously a patsy.
Hamiltontim,
sounds like he was gem… you’ll know what to say
heart goes out to you matey
JQB
Sannabhoy.
I have the chance of getting a few Celtic caricatures,would you be interested in taking them and trying to get a few quid for charity.
There could be a few people on here that will know what I mean re Celtic caricatures.
They will be free to the Kano foundation.
Sannabhoy
thankz
TT
A wee song for my wifes cousin, we done the babysitting for Joe O’Neils weans 30 odd years ago, this man Joe O’Neil will live long in the memory, ……
If Belfast City Celt or Che is on…….
http://www.youtube.com/watch?v=sdcxGlBZLuc
V
HH
hamiltontim says:
28 October, 2011 at 00:00
Spongebhoy
Just reading your moniker makes me smile, cheers mate.
======================
Jeez, you just made me fill up there.
ImABigSoftyCFC
Guys… I married a Hun too :(
Its the 28th…. are they gone yet…. ??
JD
Bundoran/Sanna
Thank you. He’s in a better place, death held absolutely nae fear for him. Honestly his faith will see him ok pray for my mum she’s in tatters.
Now, what about wee Forests first goal last night!
MWD – where’d you post, can’t find it?
postingfromWin7andfeelingdirtyCSC
Ernie
You raise a good point on ‘conditionality’. I expect, just as the asset values are likely to have been agreed in principle already, so will the mechanism for re-entry into the SPL.
Just a hunch.
hamiltontim says:
28 October, 2011 at 00:05
Prayers for u all buddy
Forrests 1st goal was a SCREEEEAMER ;-)
Like 2 diff teams (1st half to second)
HH
Ernie lynch. I was thinking the same myself. How can you get maximum return for creditors through prepack when the operation of the club as a going concern isn’t guaranteed after admin. In fact that should cause them to be liquidated.
oldtim67, that would be great – thanks/
was talking to wdh last week and he says yo’ve not been great – better now ?
will meet up soon – you out at the dakota still ?
Back page of The Record supposedly interesting.
sannabhoy says:
27 October, 2011 at 23:49
I see where you are coming from – I was starting at the other end assuming we were making somekind of progress in Europe.
Still a difficult shout – assuming quality of participants – you are into September before you can guarantee who can compete.
Problem is most countries (outside of Euro competition) then play in a mid-week national cup competition that guarantees the winner Euro entry the following season.
The calendar tends to be cluttered up to Christmas – so do you wait till then and arrange a competition for the Spring?
Come the Spring – quality clubs are jockying for Euro positions in their various leagues.
Outwith a winter shutdown (of 4 weeks) – I can’t see it being feasible unless 4 teams (not involved in the latter Euro stages) took part in a 2/3 match money-spinner tournament in somewhere like Dubai.
Sannabhoy
Whens the updated table goin on the predictor?
I missed a week n wnt to see where I am now on table lol
HH
dirty mac
They deleted it.
MWD
Seanbhoy
Was posted earlier a link to pic of it
25point deduction for the darkside?
HH
Seanbhoy
See my link above
Moonbeams WD. \o/ Supporting Neil Lennon 100%. C’mon the hoops. says:
28 October, 2011 at 00:10
Explains it. They used to mark the thread as spam.
I’ve left a message on Debs fb page asking her to reinstate it and why you posted it. I’ve assumed you’re not a regular on P&B?
Got tae go…. adeeose, gurra mahagut, annat
fonetiksroolcsc
Bundoran
Could only see the goals on my phone but that’s something we’ve sorely missed, someone who can score from the edge of the box.
I know Ki does it but he doesn’t have the same ability to beat a man then shoot.
I hope we’ve turned the corner, how much would it hurt them to see Neil Lennon win a treble!!!!
Do we have any factual information that Craig Whyte paid the full £18m for Rangers debt? I was under the impression that he had stated he had cleared Rangers debts to Lloyds, without ever stating the amount paid for these debts. Surely Lloyds would be aware of the tax case and would have taken whatever they could get for the £18m of debt. Also, what rational person would pay Lloyds in full for the debt, in the knowledge that no-one else would want it due to the high risk of liquidation.
If Whyte paid even 40p in the £ then he would turn a profit if he sold Rangers for as little as £8m, which is certainly not as unlikely as if he needed to make back the full £18m
Bundoran Bhoy/Chaplin
Cheers ghuys.
Just got a text regarding it.
Will the Record be banned from ibroke now?
bundorn bhoy, ttt is on the case – don’t worry -the missing of a week won’t affect you too much – you’re still %$% ;-)
JQB
Thanks mate. Your one of my fav posters BTW but don’t tell anyone :)
hamiltontim says:
28 October, 2011 at 00:15
Wld luv it if Lenny won treble :D
Hopefully as u say its a wee corner turned
HH
My word the worry beads are out tonight. Never at any time were they going to fold. The establishment would never allow it. It also shows how bad we are ,that a ten point deduction would still see them above us . I wish we would just concentrate on our own failings ,of which there are many . And as far as im concerned they will not go short of help, and some of it from unlikely or should I say surprising sources. When my fellow celts finally wake up and smell the coffee , they will see how far our once great club has been allowed to fall. Our irish billionaire has a stud farm in ireland , many millions has been spent on it , its purpose is to breed CHAMPIONS, pity he doesnt
Ernie lynch, tbb
If the registration of the new team can’t be guaranteed during admin then the administrator can’t guarantee the newco will be trading as a going concern. They also can’t guarantee the maximum return for creditors which leaves only option 1c.
Purpose of administration
3(1)The administrator of a company must perform his functions with the objective of—
(a)rescuing the company as a going concern, or
(b)achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or
(c)realising property in order to make a distribution to one or more secured or preferential creditors.
(2)Subject to sub-paragraph (4), the administrator of a company must perform his functions in the interests of the company’s creditors as a whole.
(3)The administrator must perform his functions with the objective specified in sub-paragraph (1)(a) unless he thinks either—
(a)that it is not reasonably practicable to achieve that objective, or
(b)that the objective specified in sub-paragraph (1)(b) would achieve a better result for the company’s creditors as a whole.
(4)The administrator may perform his functions with the objective specified in sub-paragraph (1)(c) only if—
(a)he thinks that it is not reasonably practicable to achieve either of the objectives specified in sub-paragraph (1)(a) and (b), and
(b)he does not unnecessarily harm the interests of the creditors of the company as a whole.
Sannabhoy
Hopefully still near the top :p
Has CRC caught up with Mrs CRC n the Young CRCs? lol
HH
Sannabhoy.
No.I’ll never go back there,nice hotel, but away out in the sticks.I’ve booked into the Citizen M in Renfrew St. for the Rennes game,so I’ll be drink a few before and after the game.
Keevins story in tomorrow’s DR saying the huns facing 25 point deduction if they go into administration.
That sounds like a deal has been done to allow newco straight back in.
Goodnight CQN
Must go to bed, must go to work tomorrow, must pay taxes
Now, what’s hard to understand about that?
Hail Hail
Right bhoys gonna head
Sannabhoy text u buddy
HamiltonTim prayers for u all, n if you fancy a gab drop me an email at bundoranbhoy@gmail.com
Hail Hail the Celtic Family
My dear,deara,dear,friend.. Bloke109
Thanks, a heap,palomine..
Ye hiv helped me tae get a better Handle oan My thoughts regarding
the Flow of the Game.
It seems that Ah am right tae be somewhit anxious aboot how we wull go intae
the Parkheid Encounter wi’ the Hibs.
Fur..
It seems that we must always be coming fae behind, lately.
And sometimes.. that canny be done.
Obviously,it wiz, in the First Hibs Game.. but..
Recently, at Parkheid we hiv had some awfull Results.
We seem tae be terribly Lackadaisical at the start of a loat of oor Games.
If ye think aboot it..
We came fae way back agin the Killie.. and Noo.. The Hibs.. and there hiv bin
ither games where we fell behind, in easy confrontos, early oan.
Is this A Trend?
Tae Me. .It sure looks Like one.
Why canny we come oot wi awe guns Blazing.. especially, at Home?
That is a Puzzle.. and one that Oor Back room Bhoys must Solve, P.D.Q.
Fur we canny depend oan being able tae be coming fae Behind, every time..
It is a dangerous Trend..and Ah canny understaun why it is Happening with
such frequency.
In Europe,it is fairly de rigueur, that we always fall behind , early doors..
But, now that that Habit is rearing it’s heid in the S.P.L. ..tae..is
maist ,unsettling.
Thanks fur yer input , pal..
Much Appreciated.
Kojo
yer pal..who likes ye aloater.
Bed calls – bound to get to sleep counting points deductions:
10-15-25!
Night All.
Ernie
It would always be thus…..
Sadly, the rest of Scotland sees them as they see themselves.
They sing about being the people, the rest simply feel that way.