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.
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  1. What we are talking about here is one of the greatest and most shameful rip offs in history and one that is so dripping in irony it is sickening. On November 5th, at their home game to Dundee Utd, Rangers are having the brass neck to advertise inviting 300 armed service personnel and veterans to Ibrox. Whilst at the same time scheming to completely shed a multi-million pound tax debt that would have went towards making the working conditions for the 300 propaganda puppets they will be inviting and parading around the stadium safer. In any other country this would be all over the newspapers with people reviled at the audacity. Not here. Not with them. That is what we are dealing with here.



    What Paul has written has transpired. It is a past event. What is to come is the big sell. This has been planned from the very start. It is the reason the very first thing Whyte did was employ 2, yes 2, PR companies.



    As Paul has stated, and this has already begun, the case will begin to be presented. We will be told by the hand picked “on message” poodles of the armageddon that every club in this country will face should Rangers be made to reap the crop sown by their dishonesty. These poodles have been groomed and hand fed from the start, conditioned to behave exactly as required when this day arrives. In fact I will bet you tomorrow morning we will have a James Traynor exclusive along these lines warning of SPLmageddon. With a splash of RIP Scottish football.



    Prepack happens in a matter of days. This is not something that will drag on for weeks. We will hear about it on a Monday, it will be done by the Wednesday. This rapid timescale is what will be used to leverage everyone else.



    Every club will be told a vote against allowing Rangers straight back into the SPL will kill the whole game. They will be told advertising money will die. They will be told TV contracts will be ripped up. They will be told gate receipts will drop off a cliff. It will all be unresearched, unsubstantiated rhetoric. The platform, and the mouths, issuing the rhetoric will make it compelling and convincing.



    Privately the other chairmen will have been offered deals for their votes and greed with a hint of self preservation will win the day.



    Sporting integrity will not be mentioned.


    Cheating the crown will not be mentioned.


    Gaining an unfair advantage for years will not be mentioned.


    Morals will not be mentioned.



    All that will be discussed is death and doom. We are witnessing the low water mark for our game.



    This began with Murray’s ego. Murray’s ego and insatiable moonbeam chasing has destroyed our game. Murray throwing money at foreign “stars” killed our youth programmes. Killed our national side. It has killed all other clubs who were forced to push themselves beyond their means in an attempt to merely treadwater. When Murray overstretched himself his ego did not allow that to be shown so instead he uses any means necessary to maintain his vanity and damn the consequences.



    However let us get this straight, our game is not on life support. Rangers are on life support. Rangers and our game are not one and the same. To cure a cancer you don’t hide it, excuse it then carry on like you don’t have it. You rip it out. Sometimes the surgery has long term effects on the body but you know the cancer won’t kill you. Murray was the first cell in the cancer of Scottish football. The whole body should not be tortured to heal that cancer. To right that wrong. Remove the cancer, swiftly, correctly and the body will heal and get stronger.



    Rhetoric, emotion, threats will not defeat the coming storm. Only 1 thing can defeat the chilling campaign that will be splashed worldwide and that is facts. When they say we are doomed. We can’t just say “we aren’t”. It has to be “we aren’t because….” and a researched financial feasibility model for the Scottish game without Rangers has to be referenced. We have the expertise here to produce one of these. Rhetoric is always defeated by cold hard facts. Facts are our only hope.



    We will not need to persuade the public that Scottish football can survive without Ranger in the SPL. We only need to persuade Celtic and 1 other club that this is the case. That is not a big task.



    Allowing them to cheat, then shed their responsibilities to the other teams in the country and to each and every one of us as taxpayers is morally repugnant and inherently wrong. Every single league chairman who has a vote knows this to be true. If they vote for what is wrong then there will be a bill for that. Karma attaches hefty charges and the interest rate is staggering. I just hope when that bill crystallises it is addressed to individual clubs and not the game as a whole as if this comes to pass the Scottish game will not have enough in the bank to pay her. Karma is a bitch.

  2. JinkyvJohnGreig-saysitall says:


    28 October, 2011 at 11:10


    LiviBhoy says:


    28 October, 2011 at 10:19



    Do you know if there is anywhere to donate to this lads family?



    There are bank details going around but I believe it is Sean’s mothers account details. I don’t think that is wise.


    I will be attending the event tonight so I will find out if a paypal account has been set up. Sean goes on the Criagshill Shamrock CSC. They are on Facebook so they may have something set up or have more details. I will see what I can find out.




  3. Celtic target crocked



    Celtic signing target Alex Milosevic is on crutches after breaking his foot in training. The injury could put paid to the young AIK defender’s hopes of a January move to Glasgow.



    Do we need some sort of exorcism done at Lennoxtown, even just to be linked with Celtic means you can get injured

  4. TheGreenManalishi(WithTheTwoProngedCrown) on




    That’s a novel concept a mobile phone that is just used to make calls !!

  5. TBB -Samsung Galaxy very good mate,user friendly.A piece on BBC web this morning says Samsung outselling i phone by a distance.

  6. LiviBhoy-might be worth asking Paul 67 if he can add a link for this bhoy on a lead article.HH.

  7. James Forrest is Lennon says:



    28 October, 2011 at 02:23






    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.




    I agree and that is not what I said. I clarified what I meant for you the other day but perhaps you missed it. The reforms I want, I want regardless of Rangers fate as old co or new co, because as long as they around effective curbs on their behaviour are necessary.




    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.




    See above




    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.




    I am scepitcal about boycott as a weapon because it must have stated aims. We both agree that restoring integrity to our game is the sine qua non and if this can be achieved by boycott, it is a weapon but a difficult one to deploy unless it is being organised now as a contingency against an event that might not happpen. It would be useful though if the thoughts of the support at large were articulated to set out what our support would and would not accept to continue to pay to watch Scottish Football.




    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.




    I totally agree which is why I suggest the other means by an EGM which has the same logistical issues as a boycott in preparation terms, but it would also give the shareholders the opportunity to mandate the PLC NOT to fall in line with any “solution” that is unacceptable on integrity restoring grounds.



    In the absence of an EGM, shareholders though can write to Celtic, as I did last May and point out their objections and what stance they would like Celtic to adopt. Letter might not elicit a formal response from Celtic, a resolution at an EGM would.




    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.”




    As one of the movers of the resolution that expressed loss of confidence in the SFA the restoration of integrity has to be the key issue and any solution that looks like an escape route has to be challenged on that basis, repeatedly and in every form and forum possible, on line and on air.



    Get cracking ;)

  8. fanadpatriot says:


    28 October, 2011 at 11:19



    That would be excellent mate. I know a member of your band and have him as a mate on Facebook. I will contact him.



    I will probably pas sit on to the Craigshill lads though as he is one of their Bhoys. A fantastic gesture. Many thanks.




    !!Bada Bing!! says:


    28 October, 2011 at 11:19



    Thanks for re-posting.




  9. googybhoy says:


    28 October, 2011 at 11:02


    greenmaestro says:



    and an oh! It is okay for an athiest can be PM tho.

  10. TheGreenManalishi(WithTheTwoProngedCrown) says:


    28 October, 2011 at 11:21





    That’s a novel concept a mobile phone that is just used to make calls !!






    I got a camera, for photos, I got a laptop for the net and I’ve an MP4 player and a wee cassette/radio for music on the go. Al do what these modern phones do, except a thousand times better.

  11. RogueLeader says:


    28 October, 2011 at 11:19



    Excellent post regarding the realities of the present position



    As for the alternative way ahead based on facts for the movers and shakers in Scottish football……………… none so blind as those who cannot see

  12. MWD @ 11:07,



    “It’s my opinion that Whyte is working on behalf of Sir David Murray.”



    Not so sure not his style, I think he was just glad to get shot.



    DK has all the necessary attributes for the gig.



    Once the pile comes down I’m sure there will be pleading that poor R@ngers fans have been duped and a Scottish Institution has been wiped out at the hands of Tricksters.



    Therefore special allowance must be made for the good of Scottish Football……….



    Hail! Hail!

  13. I’m thinking of doing a DIY pre-pack.



    I can change my confirmation name and leave my mortgage and debts behind me.



    10 out of my 11 neighbours have said they would be happy for me to remain living in my current abode (I always susupected that ginger at the end of the street didn’t like me).



    Árd Macha

  14. RogueLeader says:


    28 October, 2011 at 11:19




    Absoluely Magnificent Stuff as usual M8!



    Please don’t take me the wrong way when i say this but……there is one tiny detail that almost everyone on this blog has either, ignored or is completely ignorant of and that is that…..



    Scotland ARE the huns, the huns ARE Scotland! IMO!

  15. Kevin – and therin lies the problem. They already believe they are the people. If this happens it reinforces that perpetuating all the social issues that walk hand in hand with their supremacist attitude. Another reason to fight tooth and nail against them paying their dues

  16. Moonbeams WD. \o/ Supporting Neil Lennon 100%. C’mon the hoops. says:


    28 October, 2011 at 11:07



    While it defies most rationale, you might be interested to know that is a view shared by some very senior figures in Scottish football.

  17. RogueLeader,



    Spot on mate! I said on here yesterday IF the Celtic Board vote against (surely to God they won’t consider for a second voting for!) Rangers newco getting into the SPL then the odds are with us…..we only need 1 more vote. I’m sure we can manage to get 1 more vote.



    Aberdeen – I reckon their fans will put pressue on the Board not to vote them in


    Hearts – They may be cousins of William but Mad Vlad is a wild card. Also, they could have a chance of CL football if Rangers aren’t in the SPL


    Dun Utd – Again, could have a chance of CL football without Rangers in the SPL and sure McCurry-gate is still a sore one for them?



    We could offer incentives to the wee clubs too (player loans maybe?) and threaten to not take any away tickets for clubs that vote for.



    If the Celtic Board decide they want to fight this then it’s a very winnable battle.



    PS I’ve been lucky enough to have been invited to a “Meet the management” session at Celtic Park on 17th Nov which Neil Lennon and Peter Lawwell will be attending. There’s a Q&A session and, if I can get my hands on the mic, I’ll be asking Mr Lawwell to publicly and categorically confirm that in the “pre pack” situation, the Celtic Board will definitely vote against Rangers Newco getting into the SPL. If he can’t give an emphatic yes then I’ll be very worried.

  18. Any kind CQNers tell me if oao radio show still going and where to find it.


    Thanks in advance.

  19. lubo1977 – Aberdeen are our best hope IMO. Hearts will be far more interested in a blueprint of a method to get themselves out of their own troubles. Aberdeen are the ones who will likely get as fierce a reception from the customers as our board would if they voted to save them. Aberdeen have a lot of fans still able to remember winning things too, those days could return.

  20. Anyone know when all our injured Bhoys are back?



    Loovens – ?


    Bangura – Start of November


    Wilson – ?


    Izzy – ?


    Sammi – ?


    Brown – ?

  21. greenjedi says:


    28 October, 2011 at 11:43



    can u clear a matter up for me is DoD wan ow thame

  22. The Honest Mistake (Sickened) on

    Would a change in the rules be justification for us to leave the league?


    Could we survive playing in another league say the Irish league?


    Would we be welcome?


    I’ve had enough of this league, it’s a sham!

  23. I have reposted what I said last night below. We are too focused on them and not on ourselves. They are a busted flush for the next few years. However we know that Scotland will not allow the establishment club to die so we need to maximise our opportunity



    Brian Boru says:


    27 October, 2011 at 21:50


    Firstly great article Paul you have certainly given us all food for thought. It has been a while since the blog has generated so many pro Celtic views



    The scenario you have painted is probably the worst case scenario for us all. However the reality is we as a club have the ability to deal with it if we show a little bottle from the top. It is now time for the board to either dip into their own pockets or extend our credit facilities and lead from the front. I don’t want us to go down the route of spending more than we can afford but we do need to be aware that business is a long term game. If the board were to allow Neil to spend an initial £15m next summer and buy genuine quality similar to what happened with Martin O Neil and followed that £15 m with additional funds we would be in. Position to have the loan repaid within 3 or 4 years. We have a real opportunity to almost guarantee champions league revenue for at least 3 years. That is £15 to £18 million pounds in additional revenue and does not take into account further revenue growth in season book sales and merchandising when the team is successful. After the initial outlay and repayment we start the process over again by borrowing and repaying and so on. The risk factor until now has always been higher due to the risk ofno CL revenue. Once we get beyond the first year we can grow the coefficient and it gets a bit easier.



    What astounds me is that we have some seriously astute businessmen on the board who know what it takes to make a business work but have allowed us to decline, thus risking their current investment. As I sId earlier we will never have an opportunity as good as this for some time.



    Now is the time to really set in place our generation of domination









  24. RogueLeader says:


    28 October, 2011 at 11:45




    My Amigo



    I have watched the huns escape from more nooses than i can count over the 40-odd years i have been watching these things like, the way they have rioted all over europe in my lifetime only to recieve a few slaps on the wrist for singing ?



    I know this is different but for me, the outcome will be the same in that, any harm to the huns will be minimal and, given that we have a board/CEO full of nodding churchill-dogs then, don’t expect ‘our’ corner to be fought either. ‘Our’ hierarchy have had, 4 years to pull the trigger on the huns and, haven’t done it. It won’t be any different this time! IMO!



    The establishment will work their, ‘dark-arts’ at the last minute and pull the huns out of the fire! IMO!



    Also, i think that we(Celtic fans) should be looking at, how PL and John Park have been getting away with their, ‘Arthur Daley-type’ of player recruitment right under our noses ? IMO!

  25. philhoopylogue



    If you go to the Hail Hail media page you can find an rss feed for over and over, beyond the waves and lost bhoys.

  26. Modern hand picked “on message” poodles of the armageddon is rubbish…



    …anyways, the ole postie has just brought me a pre-packed parcel containing the latest from The ole Decemberists called ‘The King is Dead’



    Will the circle be unbroken?



    I think not.

  27. greenjedi



    That’s a novel concept a mobile phone that is just used to make calls !!






    I got a camera, for photos, I got a laptop for the net and I’ve an MP4 player and a wee cassette/radio for music on the go. Al do what these modern phones do, except a thousand times better.






    For goodness sake man have you consideration for the environment, you are charging and powering 4 different unecononmic units instead of using one modern alternative.



    The times they are a changing, roll with it.

  28. RL



    quite so



    i only hope our custodians appreciate the depth of feeling of the support on this



    imo our club could be ruined if they vote the wrong way