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 Forrest
Who’s fault is it?
Not Craig Whytes, not even the most evil rangers fan but Mr or it Sir David Murray. If we are interested in real justice why is this man not in jail?
The reason is it a good idea to allow new Rangers into the SPL (with European restiction) is very simply without any kind of Rangers in the SPL there is no SPL. What part of that do you not get?
Sponsorships and TV contracts would possibly be ripped up. How many clubs would survive?
merseycelt dumps sadsally:
I would make sure we had the press conference booked for BEFORE we went in to vote. I would make sure we had presented our case for sporting integrity not just to the rest of Scottish football but to the WHOLE WORLD in a very public way before we even entered the room, and I would make sure our delegates were the first people to speak to the press afterwards, to announce our plan of action, which would be the ONLY points I would have them raise at the meeting before the vote itself.
Do not WAIT for a fait accompli to be presented to us, as a done deal. Make our opposition VOCAL before the fact.
Above all else, make sure the world knows that it’s NOT a bluff. That we are deadly serious. In short, I would tell them to wipe their backsides with such a proposal as you have suggested, and I would demand every club in the SFA be given a vote on the matter, as it affects the integrity of the national sport as a whole.
The day rangers are back in the Scottish League is the day turkeys vote for Christmas.
I get all of it and very well.
Craig Whyte did not buy a used car and found out there was a hole in the engine. He knew full well what he was getting so don’t sell me the hooker-with-the-heart-of-gold sob story that none of this is his fault. He bought a heavily indebted company with the absolute intention of screwing the tax payer – the tax PAYER, that’s you, that’s me – out of tens of millions of pounds.
If Rangers were relegated would you want the rules changed then? A national league which is dependant on two teams only for its survival is a bad joke and maybe it needs to die in order to be born again.
I get everything you are saying. And it’s garbage.
kevtic,
they can go fourth and multiply as far as I’m concerned, how many of them made a public statement about the treatment of a fellow professional last season, nope, struggling here myself, cant remember a single one of them. as I like to say, copulate them.
Let them drown in their own bile, me, shoulder to shoulder with Neil Lennon.
There’s been a lot of speculation today and tonight on how our board would act and react to the financial meltdown in Govan.
The predicted actions of PL and DD reflect many of the long held prejudices against particular board members and expressed regularly on CQN and other sites in Celtic Cyberland.
MerseyCelt urges a pragmatic approach arguing it would amount to financial suicide if we exclude Scotland’s Shame from the SPL.
Did he advise Bush, Obama, Bernanke and Geitner, who incidentally didn’t pay his taxes, to throw good money after bad to benefit Goldman Sachs? And look where that has left us.
I refer him to one of Paul’s memorable lines from blog above (let me check what it was he said ;-) )
Whatever part of my club is dependent on Rangers I am willing to lose.
Across t’internet this sentiment is a beacon and rallying cry for a vast majority of our fans.
We Celtic, the incomers, the unwanted, the despised, the tarrier upstarts, will be carrying Scottish football’s financial future on our broad and willing shoulders.
A period of sanity will then prevail and other clubs will see our prudence as a virtue.
The authorities will dare not turn a blind eye to the cheating we have lived with since before even my time.
If you look up the Rangers wiki entry you can find the following:
The club have traditionally been identified with and favoured by the Protestant and Unionist community of Scotland, as well as the Unionist community in Northern Ireland
To allow the morally bankrupt practises from Edmiston Drive to be ignored and therefore encouraged, is to say that the SFA and SPL exists to ensure the greater glory of the establishment team to the detriment of every other club and their fans.
I want to awake tomorrow and read “Rangers no more.”
If I do then I pray that this would mark the beginning of a new era in not just Scottish football but also in Scottish society.
Dream Big or Go Home
‘GG
James
Desperate to support you here as I want to be on your side but how do you think my scenario would be portrayed in the media regardless of clever PR planning by Celtic?
Poor wee rankers couldnae afford to pay their players who are motivated by their desire only to remain part of scotland’s favourite family club. The club have acted with honesty and integrity by agreeing to take it on the chin like dundee and motherwell before them by happily accepting a massive points deduction. Why would any reasonable minded person wish for them to suffer more?
Meanwhile, those bitter, angry, jealous fenians want all the glory of easy league titles, cup wins and euro millions led by the ginger haired evil schemer himself, scotland’s public enemy Number 1…!
I blame catholic schools myself!
HH
‘GG:
I applaud you mate. Fantastically articulated.
THAT’S what I’m talking about.
The Fightback Starts Here as a certain notorious former chairman once said …
merseycelt dumps sadsally:
To every press story I would send out the same statement, over and over and over again.
“Rangers Football Club for years operated a scheme who’s sole design was to withold from the fiscal authorities, and thereby the public purse, millions of pounds in legally payable income tax. In doing so, they strengthened their playing side in such a way as it allowed them to deprive other clubs of much needed income from winning trophies, playing in Europe and these policies directly led to spiralling transfer fees, wages and other costs which have left the Scottish game almost financially bankrupt.
“In taking this decision, not only have the other Scottish clubs effectively legitimised fraud, cheated fans, suppliers and others who depend on the financial integrity of our game, but they have tainted our national sport and its reputation forever.
“Celtic, in all good conscience, cannot support such a violation of national law and basic fairness.
“The action we will take will have adverse financial affects on not only other clubs but on our own football related activities. This is a price we are more than willing to pay. Some things are more important than the winning of trophies. Some things cannot be bought, cannot be sold and once gone cannot be replaced. Like our reputation and our integrity.
“These are the things we have chosen to stand by.”
GG
Congrats for grandstanding.
I suggested a pragmatic approach only because the bigots who infest every strata of scottish society wont allow their favourite institution to die. In fact, they will ensure they are punished to the minumum.
Doesn’t the pseudo summit and the proposed anti-celtic supporter legislation tell you anything about this pathetic little country and in whose interests it operates?
You say, “To allow the morally bankrupt practises from Edmiston Drive to be ignored and therefore encouraged, is to say that the SFA and SPL exists to ensure the greater glory of the establishment team to the detriment of every other club and their fans.”
You dont get it! They do! Remember the Myth abandoning the national team for the glory of managing the huns again. Dont recall much criticism of him for this betrayal, quite the opposite, actually!
Listen, I want to read “rangers no more” just as much as you and every other brave rebel and, in another time and another place, this may happen but not today in the most narrow minded wee country in the world!
I hope I’m wrong!
HH
James
Great press release but Celtic cant do as you suggest as HMRC havent yet ruled on whether the huns broke any tax rules or not!
HH
WOW Three dramatic and eventful innings in St Louis.
The Cardinals are making the sieve look like a watertight submarine.
There has been a slew of defensive errors, walks and tag outs.
Texas went 4-3 ahead after a walk and basic error, the kind of lapse of concentration all too common at CP this season.
St Louis, GO CARDS, came back in the 6th with a walk in run to leave the bases loaded and the game tied 4-4 after six innings.
‘GG breathless
Come on Celtic – do the right thing !
At our AGM 2009 the then Celtic chairman said “It’s not an act of character, courage or leadership to get into debt – it’s an act of moral cowardice.”
http://www.guardian.co.uk/football/2009/nov/01/rangers-david-murray-administration-lloyds
Also going back the Scottish government’s summit in March Alex Salmond the police the SFA SPL and Celtic and Rangers agreed a joint statement
http://www.scotland.gov.uk/News/Releases/2011/03/08163336
4. Given the vital importance of protecting the reputation of Scottish football, we believe the values and principles set out above need to be restated and that further action be taken in the short and longer term to ensure that football is seen as a powerful force for good.
5. We therefore agree the following:
To ensure that the existing rules and regulations of Scottish football are rigorously applied and respected
JF and Merseycelt
I didn’t mean to grandstand and pick on anyone in particular.
The wife stuck a soapbox on the flor and I couldn’t resist using it.
Blast Texas just went 5-4 with a home run to right centre field.
‘GG with the wind leaving his sails as Texas hit yet another homer to left field this time.
6-4 to the hunmentionables.
fellow celts
If only James Forrest was the Celtic chairman. I concede defeat. Rankers no more!
I’m away to check out the x-factor goss. I wonder how Gareth Gates is getting on? I hope he wins!
Hail! Hail!
If you’re not catholic the following won’t make much sense, so scroll on by.
If Rangers go bust tomorrow, Friday October 28th, can we petition Rome to change First Friday Devotions to the Last Friday?
‘GG (will I be punished for gloating?)
Even if Dermot Desmond privately wanted Rangers re-instated to the SPL, there is no way in a million years he or the board would vote for such a scenario.
They wouldn’t dare risk the wrath that would come down on them from the vast majority of the Celtic support. I truly believe that such a vote would finish them as they would face the mother of all backlashes. They surely know that to vote Rangers in would cost them their positions.
Having said all that, what I can envisage is a clandestine agreement between all parties which goes something like this . . .
The 10 other clubs agree to support Rangers’ re-instatement, while understanding that Celtic FC cannot risk the consequences of also voting for their rivals, so a 10-1 vote is gerrymandered, Rangers are re-instated and Celtic come out of the circus as having played their hand and everyone is happy, except the Celtic fanbase.
I hope I am wrong, but nothing would surprise me about the politics within Scottish Football.
Tom McLaughlin says:
28 October, 2011 at 04:30
My thoughts exactly
To an indifferent or maybe even non existent audience,
I GLADLY announce that St Louis tied the game at 7-7 with a 2 out 2 run hit from St Louis’ home boy Freece.
We go to the 10th
Real nail biting drama.
‘GG
Morning Bhoys,
Reading the latest on the blog re the huns is fascinating stuff. There are so many different scenarios possible it is a hard job keeping up with them all.
Regarding Whyte I think anything is possible with this shyster.
Jame Forrest – I agree with what your take is on all of this but I am afraid that the Clubs in the SPHell won’t do the right thing and make the huns extinct in Govan.
Hopefully HMRC will have re-course to the courts if the huns go for a pre-pack option.
On a brighter theme thought the Celts were excellent in the 2nd half at Hibs.
If we can build on this part of the display then we could be in for a good season yet.
Hail Hail !
Texas go ahead 9-7 with a 2 run homer to right field.
Cards up against it again as they go to the bottom of 10th.
Fingers cross.
‘GG
Discovered a some pre pack cold meat in the fridge, fung it in the bin.
If you call yourself a Celtic fan you will do the same…
The bhoycott starts here.
St Louis tie the game at 9-9 with a 2 out single.
2 on 2 out winning run at 3rd.
Run out and we go to the 11th
This is riveting stuff.
Quick Question
As dawn nears in Glasgow are there any reports filtering in of rangers players turning away from ATMs with a flustered look?
‘GG
IrishTwoTone says:
28 October, 2011 at 04:58
What about LurPAK?
‘GG
OOPS This game has me distracted.
Estadio Nacional says:
28 October, 2011 at 05:17
Discovered a some pre pack cold meat in the fridge, fung it in the bin.
If you call yourself a Celtic fan you will do the same…
The bhoycott starts here.
——————————
What about Lurpak (seems a bit lame now)
3 up 3 down for Texas.
Bottom of the 11th
‘GG
FREESE does it again with a home run hit to dead centre.
Unbelievable.
CARDINALS win 10-9 and tie the series 6-6.
This was a Chris Sutton type winning home run.
Texas must be deflated
St Louis after being down to their last out in both the 9th and 10th do the unthinkable.
to bed to bed to await Friday’s news.
‘GG
Who do the winners of the US round of the baseball world series play in the final? Europe?
‘GG 05:34
Lurpak is also for the bin, slipped out my hand…
ButterFingersCSC
Estadio Nacional says:
28 October, 2011 at 05:48
Cuba perhaps.
Back on BQN for deciding game 7.
Meet me in St Louis, Louis.
‘GG
A few observations from afar.
Are we believing a DR He knives ugh story ?
All spl clubs are in the state they are in due to chasing hun financial cheating. Is that to be forgotten ?
HMRC don’t decide on anything they follow the law.
Hun FC are appealing a tax case they have already lost. Hence the well informed blog entry from their lawyer grant Thornton that I posted earlier. Note its date.
Can the monies the SNP promised after the summit not be rechanneled to clubs to make up for any shortfall this season if needed.
HH
John pebble of styx enterprises
Get em out by friday! You dont get paid till the last ones well on his way. Get em out by friday! Its important that we keep to schedule, there must be no delay.
Mark hall of styx enterprises (otherwise known as the winkler) I represent a firm of gentlemen who recently purchased this House and all the others in the road, In the interest of humanity weve found a better place for you To go, go-woh, go-woh
Mrs. barrow (a tenant) Oh no, this I cant believe, Oh mary, theyre asking us to leave.
Mr. pebble Get em out by friday! Ive told you before, s good many gone if we let them stay. And if it isnt easy, You can squeeze a little grease and our troubles will soon run away.
Mrs. barrow After all this time, they ask us to leave, And I told them we could pay double the rent. I dont know why it seemed so funny, Seeing as how theyd take more money. The winkler called again, he came here this morning, With four hundred pounds and a photograph of the place he has found. A block of flats with central heating. I think were going to find it hard.
Mr. pebble Now weve got them! Ive always said that cash cash cash can do anything well. Work can be rewarding When a flash of intuition is a gift that helps you Excel-sell-sell-sell. [ Lyrics from: http://www.lyricsmode.com/lyrics/g/genesis/get_em_out_by_friday.html ] Mr. hall Here we are in harlow new town, did you recognise your block Across the square, over there, Sadly since last time we spoke, weve found weve had to raise The rent again, Just a bit.
Mrs. barrow Oh no, this I cant believe Oh mary, and we agreed to leave.
(a passage of time) 18/9/2012 t.v. flash on all dial-a-program services
This is an announcement from genetic control: It is my sad duty to inform you of a four foot restriction on Humanoid height.
Extract from coversation of joe ordinary in local puborama I hear the directors of genetic control have been buying all the Properties that have recently been sold, taking risks oh so bold. Its said now that people will be shorter in height, They can fit twice as many in the same building site. (they say its alright), Beginning with the tenants of the town of harlow, In the interest of humanity, theyve been told they must go, Told they must go-go-go-go.
Sir john de pebble of united blacksprings international I think Ive fixed a new deal A dozen properties – well buy at five and sell at thirty four, Some are still inhabited, Its time to send the winkler to see them, Hell have to work some more.
Memo from satin peter of rock development ltd. With land in your hand, youll be happy on earth Then invest in the church for your heaven.
HH
Morning all, one for the Dark Side:
Well… you didn’t wake up this morning
Because you didn’t go to bed
You were watching the whites of your eyes
Turn red
The calendar, on your wall, is ticking the days off
The calendar on your wall is ticking
the days off
You’ve been reading some old letters
You smile and think how much you’ve changed
All the money in the world
Couldn’t bring back those days.
You pull back the curtains, and the sun burns into your eyes,
You watch a plane flying across a clear blue sky.
THIS IS THE DAY — Your life will surely change.
THIS IS THE DAY — Your life will surely change.
You could’ve done anything — if you’d wanted
And all your friends and family think that you’re lucky.
But the side of you they’ll never see
Is when you’re left alone with the memories
That hold your life together like
Glue
HH
Anyone else think the death of Rangers would make an escape route south a feasible option?
Separated from our ‘evil twin’ I suspect we’d get an invite to the party.
The memories of Manchester are a big factor preventing movement on this.
Far from being a disaster, Rangers demise could just be the start of a more successful future for Celtic.
Oh, and of course, there’s that huge party we get to organise; it’ll be the biggest do since the munchkins marked the passing of that witch!
Good morning all and an extra special Big Happy Friday shout to my Celtic friends everywhere.
Damp and cold here in EK at the moment but looking like it should be a nice bright day ahead. Well, for some anyway.
Tomorrow we may only be 7 points behind. Indeed we might even be 3 points ahead.
Jobo
Seems like everybody’s got a price, I wonder how they sleep at night. When the sale comes first, And the truth comes second, Just stop, for a minute and Smile
Why is everybody so serious! Acting so damn mysterious You got your shades on your eyes And your heels so high That you can’t even have a good time.
[Pre-chorus:] Everybody look to their left (yeah) Everybody look to their right (ha) Can you feel that (yeah) We’ll pay them with love tonight…
[Chorus:] It’s not about the money, money, money We don’t need your money, money, money We just wanna make the world dance, Forget about the Price Tag
Ain’t about the (uh) Ka-Ching Ka-Ching. Ain’t about the (yeah) Ba-Bling Ba-Bling Wanna make the world dance, Forget about the Price Tag.
[Jessie J] We need to take it back in time, When music made us all UNITE! And it wasn’t low blows and video Hoes, Am I the only one getting… tired?
Why is everybody so obsessed? Money can’t buy us happiness Can we all slow down and enjoy right now Guarantee we’ll be feeling Alright.
[Pre-chorus]
[Chorus]
[B.o.B] Yeah yeah Well, keep the price tag And take the cash back Just give me six strings and a half stack And you can keep the cars Leave me the garage And all I, yes all I need Are keys and guitars And guess what, in 30 seconds I’m leaving to Mars Yeah we leaving across These undefeatable odds It’s like this man You can’t put a price on life We do this for the love So we fight and sacrifice Every night So we ain’t gonna stumble and fall Never Waiting to see, a sign of defeat Uh uh So we gonna keep everyone Moving their feet So bring back the beat And then everyone sing It’s not about the money
[Chorus x2]
[Jessie J ‒ Outro] Yeah yeah Oh-oh Forget about the price tag
HH
Monday morning feels so bad, Ev’rybody seems to nag me Coming tuesday I feel better, Even my old man looks good, Wednesday just don’t go, Thursday goes too slow, I’ve got Friday on my mind
Chorus
Gonna have fun in the city, Be with my girl she’s so pretty, She looks fine tonight, She is out of sight to me, Tonight….I spend my bread, Tonight…I lose my head, Tonight…I got to get tonight Monday I have Friday on my mind.
Do the five day drag once more, Know of nothing else that bugs me More than working for the rich man, Hey I’ll change that scene one day, Today I might be mad, Tomorrow I’ll be glad, I’ve got Friday on my mind,
HH
Superb article Paul – a real call to arms.
What you outline is our nightmare (and Whyte’s dream) scenario. I think it might be a bit more complicated than that, as I cannot see HMRC allowing themselves to simply be stiffed in this way. The debt RFC owes them dwarves that owed to Whyte, and the asset values of brox and Murray Park are considerable, according to RFC’s own accounts.
I think if they attempt to pull this stunt off, they will land themselves in court again for years.
Another thing- let’s not take ur eye off Hearts. TWO SPL big hitters going into admin would surely prompt immediate league reconstruction. In this scenario, I believe any degree of shenanigans to be possible…