[Archived] Glasgow Rangers Begin Administration Process

[Paul]

BBC Scotland

[gumboots]

BBC Scotland

2 years ago I'd have laughed at the comments coming from the fans but now they have only my sympathy. If it can happen to them - I know there is not the same money in scottish football but they are a national institution, a genuine big club - then what hope is there ofr t he many other Scottish clubs who rely on Rangers coming to town to swell their gates and coffers.

[Clitherover]

So the Scottish Premier will become a one horse race instead of a two horse race, didn't think that league could get any more boring...

[RevidgeBlue]

Without pretending to know the ins and ous of the situation is this not simply a legitimate ruse to deprive the taxman of the 40 odd million he claims he is owed?

The Club will either go into administration and lose 10 points, (no great loss for them) or Rangers 1893 will cease to exist and Rangers 2012 (or similar) will miraculously pop up the day after.

[Waggy76]

Without pretending to know the ins and ous of the situation is this not simply a legitimate ruse to deprive the taxman of the 40 odd million he claims he is owed?

The Club will either go into administration and lose 10 points, (no great loss for them) or Rangers 1893 will cease to exist and Rangers 2012 (or similar) will miraculously pop up the day after.

Exactly , that is how things will go ...They will still finish 2nd , thus plaing in europe ..

[McClarky]

Sounds like a bad day for football and for justice. Rangers can take the 10 point hit and still finish 2nd easily. They can then sell their assets back to Craig White and set up again without the debts they have run up through years of dodgy dealing. That just leaves us short of £50M in unpaid taxes which will never be recovered. It's a disgrace that clubs can get away with this but just watch them.

[Baz]

Got to agree on the tax issue, it will also be local busineses (catering, St John ambulance) etc who will lose out, and not those who can afford the losses (the players).

To me this is why the administration route should be tougher on the clubs. Rangers have built up these debts over a long period when they have had a massive income stream, but chose to buy players and chase success rather than pay their debts. A 10 point deduction is a joke. In real business, they wouldnt be kept afloat by the system and would have to start again from the bottom. I know there is no chance of it happening, but if all was fair, then they would have to start from the bottom tier of scottish professional football and build again from their. In the meantime one of the better run clubs could grow any enjoy the glories of european football and potential cup wins, and the scottish 3rd division clubs could generate a bit more income too. I can see no reason whatsoever that the clubs should have a large % of its debts wiped off, because they will generate enough money in the medium term to clear them easily.

I know its a tough stance, and one I may feel differently about if it were Rovers, but in effect the way this seems shows a lot that is wrong with the ethics of football, and the way a lot of business is done in the UK at present.

[ABBEY]

celtic 2 celtic 0, celtic 2 celtic 2, celtic 0 celtic 1

next seasons results

[K-Hod]

I know that David Murray (ex-chairman) and Craig Whyte (current chairman) have been at loggerheads for a while over financial issues.

At any rate, it's one hell of an oversight to not pay £49m in taxes....

[Jock]

Its down to them paying players wages into offshore accounts. They thought they were being clever but its come back and bitten them on the bum.It could lead to other clubs coming unstuck but somehow saggy chops got away with the ignorance defence. 40+ million debt to a SPL Club is like a 400 million debt to an EPL club. Theres no way they could pay it back. You have to feel for all the firms who will be left high and dry tho.

[allanncd]

Get genned up on the administration process for football clubs. 12 months from now that's us..............

[SIMON GARNERS 194]

Confirmed 10 points deducted,rumours of up to 75 Million owed!

Coupled with the news of Pompey,I fear the shyte is about to hit the football fan so to speak...I can only pray this is not us in a few months.

[RoyRover]

As a Celtic fan, I can't say that I'm surprised to see this happen. David Murray's statement a number of years ago that for every £5 that Celtic spend, he will spend £10, has certainly come back to haunt the club. The huge transfer fees paid out on players like Tore Andre Flo, the dwindling television revenue, the payment of players wages into off shore accounts and the general mismanagement of the clubs finances has lead to this.

Celtic nearly went to the wall a number of years ago but were lucky to get a rich owner to take on the clubs debts, cut costs and make some tough decisions for the long term benefit of the club. It wasn't pleasant, but it needed to be done and Celtic are now in a relatively good place with their finances and with the Celtic brand growing around the world. From a Celtic point of view I think that it's vital that Rangers exist as the rivalry is arguably the fiercest in world football. It doesn't necessarily mean that it has to be a strong Rangers, but as long as the two teams are around, no matter what their finances are like, the hatred and rivalry between the two sets of fans will continue and that's what people want.

[Audax]

In that league, it doesn't seem like a 10 point deduction will severely hamper the Rangers, of course, the finance angle is what is concerning.

[DE.]

Not directly aimed at you Audax, but it does make me chuckle when people say a 10 point deduction won't matter in "that league" ... if Spurs had 10 points deducted they'd still be 3rd!

This was bound to happen sooner or later. Rangers and Celtic both have to adjust their finances accordingly, they aren't even close to being big European teams anymore. Haven't been for quite some time. The Scottish leagues are somehow diminishing even further in relevance. The game up there is sadly in a bad way, but Rangers demise may allow for another team to take their place and finally give Celtic a new challenger (or, alternatively, Rangers could maintain the status quo despite administration).

[Audax]

... it does make me chuckle when people say a 10 point deduction won't matter in "that league" ... if Spurs had 10 points deducted they'd still be 3rd!

You are correct. Well, unlike Portsmouth, a 10 point deduction would not seem to be a crisis that would send a club down. http://www.soccerway.com/national/scotland/premier-league/2011-2012/regular-season/ I guess that is how I was looking at it but it's probably an unwarranted comment all the same.

[brian_gallagher85]

Not directly aimed at you Audax, but it does make me chuckle when people say a 10 point deduction won't matter in "that league" ... if Spurs had 10 points deducted they'd still be 3rd!

Well said, the EPL is as boring and predictable as the rest nowadays. The only "entertaining" part is the scrap for 17th every season.

[Mattyblue]

I take it Rangers will get a CVA and end up paying a fraction of what they owe?

[Aberdeen Blue]

I take it Rangers will get a CVA and end up paying a fraction of what they owe?

Not sure, talk of "Football Creditors" rule not being applicable in Jockland meaning the HMRC going for the lot. I really hope they do!

At least the Aberdeen fans are happy as they hate the Hun

[Miker]

8 Premier League clubs to go bust like rangers

[BiggusLaddus]

I'm sure there must be other clubs who had the same idea as rangers. In fact i'm certain I can remember open talk of off-shore accs in the past.

Let's just hope that a certain club with an historically very high wages to turnover ratio and a managerial connection to rangers is not one of them.

[koi]

I take it Rangers will get a CVA and end up paying a fraction of what they owe?

Very likely. Criminal getting away with it.

[forumquizmaster]

The most worrying aspect from a Rangers fan's point of view must be the startling revelation yesterday that there is £9million due to HMRC SINCE WHYTE BOUGHT THE CLUB!!!! Now you can't go blaming that on the previous administration and it amounts to the princely sum of £1million for every month he has owned Rangers.

Incidentally, I'm told by someone very close to Celtic that Rangers are not guaranteed to lose that court case for the £49million, which made everyone wonder why they filed for administration the other day. Yesterday's £9million announcement gave the answer to that particular question.

As always, it will be the ones who can least afford it who will suffer - staff in the club shop, canteen, offices etc.

[AndyB]

8 Premier League clubs to go bust like rangers

So the question is which English football clubs had the same tax advisors as Rangers.

[Paul]

8 Premier League clubs to go bust like rangers

If ever there was a headline to mislead this is it - sorry Miker. The sooner Murdoch shuts down this shower of sh... the better the country will be.

Back on topic now.