Rangers to go Bankrupt?

Tuesday, February 14th, 2012 at 3:55 pm

Its not only regular folk who are feeling the pinch recently. Rangers Football Club has entered administration. The move was announced after an unsuccessful legal bid by HM Revenue and Customs at the Court of Session in Edinburgh to appoint its own administrator.

HMRC believes the Ibrox club owes cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period. It has accused Rangers of not administering the scheme properly.

The announcement will mean that that Glasgow Giant will be docked 10 points. Given Celtics resurgence, this will effectively end its Scottish Premier League challenge. Manager Ally McCoist said the club would rally together to find a way forward.

Sport Minister Shona Robison said Rangers’ current plight was “a concerning situation for everyone involved in Scottish football”.

Paul Clark and David Whitehouse from Duff and Phelps take over the day-to-day running of Rangers as they have been chosen as joint administrators.

Following Tuesday’s legal case, a spokesman for HMRC went on record as saying: “We can’t discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios, must be paid over to HMRC.

Former Rangers owner Sir David Murray expressed surprise at the timing of the decision and said he was “hugely disappointed” at the club’s decision to appoint administrators.

It was widely reported that the Rangers chairman had borrowed up to £24m from Ticketus, against four years of the potential future season ticket revenue.

If the club cannot be sold and a creditors agreement cannot be reached – it is possible that Rangers Football Club may be wound up with the implications far-reaching.

Supporters fear the decision to appoint an administrator may eventually see the club liquidated. The Rangers Supporters Club warned it could have major consequences.

If Rangers is liquidated, there is a possibility that a new club could be formed. This new club could take on the Rangers FC name, although it would have to reapply to get into the Scottish league and may have to start at the very bottom of the league structure.

Ally McCoist said he would continue to work hard after Rangers entered administration. He said:
“Everybody is of the same opinion; that we must rally together and take this great club forward.”