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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james/auldheid
As supporters, if we voted them in, we could hold them to account but we didn’t.
If Rankers fold, it would be in Celtic’s financial interests to agree to their reinstatement.
Why do you think that an arch capitalist like DD would be swayed by any argument other than money, particulary one that is based on political principle?
Or am I too cynical?
HH
.
VHman..
Just seen Your Photo/Tribute to Joe.. Superb..God Bless Him..
001Bhoy
Any Aussietims on yet?
V
HH
hamiltontim:
Yeah mate, I hear you. For me this is not only about punitive action against Rangers. Franky, mate, I could not care if this was Rangers, Hearts, Dundee Utd, Motherwell or Hibs. This is about integrity and fairness, about doing what is right. We had an EBT scheme of our own some years ago, it paid a single player, and Brian Quinn put a stop to it … and at a time when a lot of others were doing it without blinking, I like to believe his reasons were as much about it not being right as they were about it not being legal.
Our club should be – and I believe is – about more than a grubby stinking backroom deal to allow fraudsters and cheats to keep tainted titles and to behave as if the rules were written for someone else.
We are about more. I do think the people who run our club UNDERSTAND that we are about more. It is not simply about this being Rangers, it is about it being wrong, whoever does it. It is about, as Auldheid’s post just then said, about the fans who buy tickets in the expectation that the playing field is level and that no one club has undue influence in the game.
The corpse of Gretna should haunt us, because their fate was sealed the SECOND the RULES were applied fairly. Dundee suffered two administrations in a season, were deducted 25 points and almost DIED as a result of the application of the rules.
In both those cases, it was harsh but it was also correct. How can we maintain the integrity of our national sport if they suffered that fate only to allow a bigger club, a more influencial one, to dodge the bullet?
How can a government which is sending my old man, who has more health problems than a worker at Chernobyl, to a frigging independant panel to assess whether he’s a scrounger, stand back and allow a man with the background of Craig Whyte to defraud the Treasury of tens of millions of pounds whilst he walks away with a profit?
It is purely and simply wrong in every way. It is about justice, not vengeance.
Although I will raise a glass. Or ten.
Vmhan,
I resemble that comment !
come on you bhoys in green
Vinny
CQN has been escapism for me, I’ve used it like an ol’ blanket :)
.
VHman..
Re; Any AussieTims on Yet..?
I Knew You NEVER Read My Posts lol..;o)
Summa ft BhoysOfOzCSC
SOS thanks, wee Derrghirl and I are hurting, we done babysitting for him way……. back more than 35yrs …. ouch!
Yir man (while in Belfast) could close a pub down in Greenock with a word in yir ear, I seen that happen.
Everybody should see that Photo, JF have you seen it sir?
V
HH
Has someone fed Keevins the 25 point deduction to soften a 10/15 point blow ?
‘GG says:
28 October, 2011 at 01:12
================
Big Lance Berkman just sorted out that upstart Hun pitcher Lewis.
There’s life in it yet!
reilly1926:
More likely is that the 25 point idea is being floated from within the SFA or Rangers as the “acceptable” face of the dirtiest deal in Scottish Football History.
You know, it would still leave them in a European spot? What a scandal it would be if it was allowed.
Fred C. Dobbs says:
28 October, 2011 at 01:20
*********************
Now I’m ready to go for Saturday!
For the auld yins.
Liberty…
hamiltontim says:
28 October, 2011 at 01:22
***********************
Ye have you’re friends around ye mate, its the way it should be, you may be gutted in 12 months time or whenever the time , you should know you have friends who are there for you.
V
A point raised on RTC:
What is Gordon Smith’s role at Rangers?
Did he not admit to Jabba on Radio Shortbread that he wasn’t involved with transfer dealings?
Is he just the Chief Wheel Greaser?
merseycelt dumps sadsally says:
28 October, 2011 at 01:18
I cannot see how a PLC could ask its shareholders who are also ticket holders to hold shares in a company or pay tickets to watch games in a competition that punishes playing by the rules and rewards those who avoid them AT THE EXPENSE of those playing fair.
I suspect enough shareholders would feel strongly enough at this principle being breached to ask the club to justify any agreement to any solution that was viewed as unjust. Boycotts are not the way, but an EGM might be.
DD is now in a position to dictate Celtic’s conditons for staying in Scottish Football and use any attempt to bulldoze the club into accepting a prepack type deal to justify leaving the SPL to UEFA, leaving only the problem of where we go. So that and being a supporter with I assume a natural distaste for Rangers, it is by no means certain Celtic will be compliant.
James
I think you make a great point that I and probably others miss, simply due to the nature of the beast.
This is not about rangers, It’s about fairness. Would I boycott Celtic games to see Hibs demise? Would I boycott Celtic to see the extinction of Kilmarnock? Aberdeen? Hearts?
No, no, no and no.
I would stop going only if the outcome of Celtic depended on it.
Vmhan
Cheers big fella, I appreciate those kind words.
Auld Heid …… etc lol
I agree, CFC should be looking at a one time ( cause they’ll be back) opportunity to get CFC out of the SPL.
Personally I’d go for the lower levels of the EPL, if there was any potential Euro League then I’d have that first….. but there isn’t :¬(
V
HH
auldheid
Thanks for the response. I feel like I’ve been playing devil’s advocate all day but still dont see an endgame for a pragmatist like DD other than perhaps being allowed to negotiate our own TV deal.
If we could play somewhere else, we would have done so by now with or without UEFA’s approval. Fact is, the EPL dont need us yet although presenting on our own to them is likely to be better received.
I think we’re stuck up here in SPhell but, at least, the financial playing field should be more level after their temporary demise.
HH
merseycelt dumps sadsally says:
28 October, 2011 at 01:48
**********************
Previosly there has been no need , the time is now.
There will be money men in sky e.g. who will look on the demise of the hun as an opportunity, a lesser contract in Scotland, hopefully because the CFC are out of it.
Night all FFS never realised the tim …… that was intended :¬)
V
HH to ye!
merseycelt dumps sadsally says:
28 October, 2011 at 01:48
I agree getting out would be difficult but by going to UEFA on the basis we were being asked to (I paraphrase) swallow it and carry on as if nothing had happened UEFA would either say:
Ok if you can find another league we will support an application.
or
Tell the SFA/SPL UEFA could not approve of its plans and set conditions that were acceptable.
But there is an over reaching principle at play and that is the game’s integrity, lose that and you lose all the value and it would not take long for that value to become £s in lost attendances. DD would know that.
I support Celtic but not at the expense of my own integrity, I’d be a mug paying money just to get angry at Rangers carrying on as usual. No way! I’d want the changes I’ve already set out on referees, licencing and proper ownership to be implemented to restore and maintain integrity.
Vmhan
Scottish football is an irrelevance to Sky. The EPL is where the big bucks are with or without Celtic. I’m sure Sky would rather we were part of the EPL but they wont push for it as there would be too much aggravation from the EPL minnows, of which there are many eg Stoke, Bolton, Blackburn, Norwich, Swansea, Wolves, west Brom etc.
When/if the EPL starts to lose its worldwide appeal, we may get the offer but not before.
I’d love to be wrong!
HH
BQN
Three innings in the book and it’s 2-2.
Cards are swinging for the stands and falling just short.
A couple have been caught on the track. Just a wee bit harder bhoys
auldheid
Is this not the true doomsday scenario?
The hun phoenix rising to popular acclaim, thereby, boosting interest in their club whilst many disenchanted Celtic supporters literally give up the game!
Your fair play rules may be agreed but after the horse (phoenix) has bolted (risen).
I truly, truly, hope I’m wrong on this but scottish football is already corrupt as the past few years have proven withoout doubt and you, my friend, have demonstrated that more clearly to us than anyone.
HH (keep up the good work!)
As much as we detest them it makes sense to instate Rangers2011 into the SPL.
With some provisions ofcourse:
– They must be not be allowed to represent Scotland in Europa for X number of year.
– They must use their new title in all fixture be it Rangers 2011, Rangers54WR, RangersFC (aka Financial Cheats).
Bigger teams than Rangers have been demoted. I’m thinking about Milan and Juventus ofcourse however Italy is a bigger nation with many big football clubs,
Scotland has two. Have a heart it’ll soon be Christmas.
==========
James Forrest is Lennon says:
28 October, 2011 at 01:20
…….For me this is not only about punitive action against Rangers. Franky, mate, I could not care if this was Rangers, Hearts, Dundee Utd, Motherwell or Hibs. This is about integrity and fairness, about doing what is right.
LOL aye right it’s all about sticking the boot into them. Don’t remember the same outcry when Motherwell where allowed to stay in SPL.
Auldheid:
Reform of the game in Scotland will cease to have ANY meaning should a pre-pack NewCo Rangers suffer no more than a ten point deduction. It will be nothing more than putting glitter on a steaming pile of dung.
Scottish Football will enter it’s long, slow death if Rangers NewCo is allowed in the SPL. No reform that we won would be considered a victory because it would be hollow and it would be shallow.
You say boycot is not a weapon you would use. It is the weapon we MUST use, and we must start threatening to use it NOW. Clubs have to be in no doubt as to what a vote to maintain Rangers means.
You vote to bend the rules to benefit Rangers … you LOSE the Celtic support FOREVER. Our club must make it clear that we will withdraw from the 2 domestic cup tournaments and take the financial hit of doing so, rendering those tournaments virtually worthless and killing TV money and sponsorship in them, with trickle down effects for the whole game.
Accepting reform AFTER the dodgiest deal in the history of the game would be to sift through the ashes of Rome looking for flowers. There will be no flowers to be had. Nothing good can grow on a field sown with such poison.
These clubs cannot have their cake and eat it too. To support a pre-pack Rangers will mean each of those clubs living with financial consequences which would, in time, go far beyond those which would accrue to letting Rangers rot in Divison 3 Hell for a year. We cannot defend sporting integrity in the shape of reform when the starting point for that is an act of sheer corruption which we allow to go unanswered.
If we are going to change Scottish Football then lets do it right … “We will destory this village … in order to save it.”
Kevtic:
You’re talking through your backside. It makes the complete opposite of sense to have them in the SPL. It is a mockery, a corruption, a scandal and an outrage.
As to Motherwell, your point is ridiculous. Motherwell lost 19 players whilst in administration and were spared the drop because Falkirk did not have an all-seater stadium. In keeping with the rules. It wasn’t through a dodgy, dirty, stinking Del Trotter style deal with the Devil.
Your point does not stand up to scrutiny.
hamiltontim
Sincere condolences on the loss of your dad.
It doesn’t hit in the immediate aftermath when you are busy consoling and being strong for the rest of the family.
It’s later when everything has been done and you have some time to remember and think about him that it will hit you.
He will never die as long as he is in your heart, thoughts and prayers.
We stand on the shoulders of generations of giants.
‘GG
James
Who will stand with us in our fight for justice?
HH
merseycelt dumps sadsally:
In the interests of basic fairness, every club who has suffered administration and its consequences should be willing to do so in the first instance. In the interests of sporting integrity, there is no club in the land which should support such a deal. In the interest of sporting rivalry, any club who would gain from Rangers removal from the SPL should broadly be in favour …
… and if all else fails we hold, in our hands, the nuclear option of punishing them financially by withdrawing from any financial arrangement which benefits them.
If money is the deciding issue here then let’s take ours off the table. In the end, Scottish football clubs outwith Celtic and Rangers whine constantly about our financial supremacy, about local fans not going to watch their local teams, about the way the Big Two are strangling the rest of the league … etc etc …
Let’s see those for whom it’s all talk. Let’s see those for whom cash is their God, their only God … and make them squeal.
James Forrest
LOL
“..corruption, scandal and outrages”
All part of the modern game you follow follow just look at Man City.
You can write pages and pages of protests to your good friends on CQN but it will not matter when Scottish football chairmen get round a table to vote, Outcome will be 10-1 in favour of them as all 10 other clubs know it could be them next.
Couple of thoughts on the big picture,
If the board make any public statements about the end of the hun, it will deflect attention from the hun.
The hun are lashing out in all directions there will be casualties, the board are being very sensible by keeping out of their business. The hun, the sectarian football association the sectarian premier league and the billy boy corporation along with numerous financial institutions have made sure Celtic know nothing of their business. So the more distance we keep between us, the less chance they have to sling mud and drag us into it. We will soon be getting blamed for all their woes cause some of us went to catholic schools, it is dangerous.
Between them the hun, the sfa, the spl the meeja and the scottish government no less, have shamed scotland by their complicity in stoking sectarian hatred. They just dont know when to stop they’ve been doing it that long they dont know any other way.
Now, no long ago we were being advise not to interrupt your enemy when they are making a mistake.
Recently all our enemies are making major mistakes all over the place its almost like a three stooges movie.
I dont know about shoving a hose down their necks, I think the board might just be asking ” one more teensy weeny waffer thin mint MrCreosote”
Their behaviour is being noticed globally, regardless of how hard they have tried to cover it up.
Greed built them and greed will kill them, could be their last supper, lets leave them to eat it alone you can be sure they’ll be looking for victims so let them gorge on each other, they know who caused their demise, they did. But will they accept that, some how I cant see that changing either, but what we will see is the true nature of scotland, the big picture.
James
Your eloquence and pasion gets my vote.
I hope the chancers and no-marks who make up much of scottish football governance find some integrity.
I will happily eat my words when the rest of scottish football (excluding celtic) decide to oppose the establishment club because they believe in the principles of truth and justice.
Your other option is the threat of financial suicide. What if they call our bluff?
We go down with them?
HH
Kevtic:
Your point is moronic and I’ll tell you why.
What you have advocated is that the SPL become the first football league in the world to accept, as standard, the non-payment of bills. To allow any club which wants one an easy exit from debt. And you think this is a GOOD IDEA?
Banks would not loan money under those circumstances. Traders would not do business with clubs. Local authorities would refuse to take on the responsibilities associated with games. No company worth a bean would deal with Scottish Football based on the notion that any time the clubs decided they didn’t want to pay the bills the door to escape would have been opened.
And you think Scottish football could survive that outcome, long term? It’s pure insanity. What you are talking about would bury the game and hammer nails into the coffin.
merseycelt dumps sadsally:
I didn’t say it was a bluff. The Celtic support is already willing to send some of these clubs to their own downward spiral, over the treatment of our manager, our fans and other issues.
It will not take much to send the boycott snowball rolling down the hill. They can either have Rangers money or ours. In three years Rangers would be back in the SPL. Could they survive that long?
No club would be relegated this season. One of them would go into the qualifiers for the Champions League. Another would enter the UEFA Cup. It would not all be adverse consequences should Rangers not be around.
But it WOULD be adverse consequences if they were allowed a free pass.
That’s the choice we should give those clubs. A carrot … and a very big stick.
James
However, what if you turn it around? The 10 want them back with a 10-25 point deduction. Take it or leave it Celtic?
HH