The prepack route for Rangers Newco FC


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]

Click Here for Comments >

About Author


  1. The Battered Bunnet says:


    28 October, 2011 at 09:01


    Why would Keevins run an article like that, then finish it up with mis-information?



    Its probably a cut and pace from Media House’s spin mail to the DR, managing expectations, put a story out about 25 point reduction, 10 point reduction looks like a result if/when it happens.

  2. GourockEmeraldBhoy on

    What times the party starting today…



    Vmhan…. Not keen on the champers but got a few strongbow chilling in the fridge.



    No work getting done today



    Hail hail

  3. GiggsyBhoy at 09:10



    Which of these quotes from Stokes do you have an issue with?



    “It’s going to be tough, no doubt but I think we are well capable of doing it,”



    “There is so long left in the season and we have a lot of Old Firm games before the end of the season so we can definitely get the points back. We have to focus on going on a good run and winning every game.”



    Sometimes our players should think before they speak but in most cases they are asked a question and answer it honestly. If he was asked do you think you can still win the league, then these answers are more than acceptable.



    As for Commons, he said we were younger, fitter and stronger than them. We went out and beat them 3-0 quite easily a few days later.




  4. Morning, All.



    By a strange coincidence, the feast day of St Jude, patron of desperate cases and lost causes.






    PS: Awe_Naw: you’re putting in an impressive shift today: can ye no’ sleep. (And I thought you just got married: how’s that going? Or has your wife discovered your predilection/addiction for CQN. Grounds for an annulment, me thinks!)

  5. The Battered Bunnet on

    OK Guys, back to more relevant issues…



    Need a new mobile phone after sitting on the one that’s done a sterling job for the last 4 years. Well done Motorola.



    In addition to the phone, I also use a dongle for mobile internet on the laptop.



    If I get one of these new fangled ‘smart’ phone thingumajigs, can I hook it up to the laptop to substitute for the dongle?



    If so, what’s the CQN Man About Town using these days in the way of cutting edge mobile telephony?

  6. Mort says:


    28 October, 2011 at 09:16






    Mort, I’m just being a grumpy bassa the now buddy – saw the headline and instantly thought, “no again!”. You’re right, on reading it through, he does seem to err on the side of caution with what he says, however I still would rather a blanket ban, and give the media nothing.



    Oh aye, happy Friday!! :-)






  7. Morning CQNer’s.



    I have to say that, theres an over-whelming majority of posters on here in favour of ‘our’ clubs hierarchy voting for the huns to be given the lethal injection!



    I would hazard a guess that, given the board/CEO’s willingness to jump into Tennents bed with the huns and, no doubt PL will use his media puppets to drip the story or indeed, spin the story about how the huns hierarchy came to Celtic FC’s rescue when a, George Graham led SFA tried to put ‘our’ club out of Scottish football for flying the Irish tricolour at CP in the 1950’s ?



    To cut a long story short….if it comes down to Celtic FC to hammer the final nail into der-huns coffin then, my money will be on a hun recovery!

  8. DubaiBhoy (nee LondonBhoy) says:


    28 October, 2011 at 09:19






    Nah, 6′ 3″ or thereabouts, and 5′ 6″ when he jumps…. :-)






  9. If we use our muscule to make sure they get their just desserts the backlash against us will make last seasons shananigans seem like nothing.

  10. johann murdoch on

    DBBIA..Re Wim new book just out worth a read by Paul Larkin.


    Wim’s Tims-The best thing to hit Scottish Football in 10 years.


    blog, celtic, Celtic fans Views, Celtic games, media, tcn 1 Response »








    Thanks to the Celtic Network and James in particular for giving me the opportunity to plug my book Wim’s Tims-The best thing to hit Scottish Football in 10 years.



    If Love Street 86 was our JFK moment, Celtic Park 98 was our VE Day. The period before we won the league, as in the last nine years, was when I grew up with Celtic. With no kids and a succession of failed relationships then, well not for me like, it was the women who failed, I’m kidding, Celtic consumed almost everything I did. I stayed in on Friday nights so to have money for the games, I borrowed a lot, I took gifts with no shame and often went without just to see Celtic.


    Continue reading »

  11. DubaiBhoy (nee LondonBhoy) says:


    28 October, 2011 at 09:19





    no,no,no,no,no, and no



    West missing in the run-in 3 seasons ago




  12. GourockEmeraldBhoy says:


    28 October, 2011 at 09:15




    Got a box o them in the boot of the car, in case Glasgow runs oot of beer on Saturday.



    Got to do a wee bit, can someone text me if/ when the shame get gone, ta!






  13. Let’s get this recorded by the Thai Tims, onto iTunes and number one for November:



    Ladies and Gentlemen……..






    Our orange club is far too old


    And it’s got a Euro ban


    So we spell out the words


    We don’t want fans to understand


    Like e-b-t, or maybe p-a-y-e-&-v-a-t


    But the words we’re hiding from them now


    Tears the heart right out of me





    Our h-m-r-c-f-t-t becomes final today


    Me and little r-f-c will be going away


    I love you both and this will be


    Pure h-e-double-l for me


    Oh, I wish that we could stop this h-m-r-c-f-t-t



    Watch them smile


    They thinks it’s a joke


    Or Robin Galloway


    And they think a r-e-f-e-r-e-e


    Will save, the day


    I spell out all the hurtin’ words


    And I turn my head when I speak


    Cause I can’t spell away this hurt


    And charging a pound for this lot was cheek





    Our h-m-r-c-f-t-t becomes final today


    Me and little r-f-c will be going away


    I love you both and this will be


    Pure h-e-double-l for me


    Oh, I wish that we could stop this h-m-r-c-f-t-t

  14. Gordon J



    The huns have went into administration!
































    Only kidding, but the day is still young




  15. The Honest Mistake (Sickened) on

    What would a 15 year disqualification mean to someone who has previous for ignoring the terms of the disqualification? Starting to think old beady eyes doesn’t care what he does to get the pre pack through as the consequences won’t put a dent in him.

  16. GiggsyBhoy says:



    28 October, 2011 at 09:10



    For a start, the media will distort, misrepresent or torture anything said by anyone at CP. That’s a given. On the Stokes story, had he said nothing or said something downbeat many supporters would have taken it as an admission that the players had given up and the dressing room was lost.

  17. BlantyreKev says:


    28 October, 2011 at 09:18




    Superb Stuff M8!



    I remember the day v’ Dundee at CP when, it was announced on the radio’s that Jock Brown had been sacked. Walking up Springfield Rd that day as the news came through, i seem to remember 6 fans with the green & white ‘jester-type’ hats doing a sort of, Morris dance with fans joining in singing that very song, “Ding-Dong the wicked witch is dead!”



    Maybe it was the GB’s grandfathers cause, the GB would have been so proudof that particular group of fans! IMO!



    Hail! Hail!

  18. The Battered Bunnet says:



    28 October, 2011 at 09:19


    OK Guys, back to more relevant issues…




    I have an HTC Desire. I am sending this now on it sat in my car. Pay £35 pm and get free calls and text and as much web access as I need.