UPDATE: Murray agrees to sell to Whyte

[ian1964 10,761]

THE courtship seems to have rumbled on longer than both of Katie Price's marriages and last night Craig Whyte was still swithering about whether to lead Rangers up the aisle.

 

But one of the top movers and shakers in football finance believes Rangers should pray the millionaire venture capitalist doesn't jilt them at the altar.

 

Neil Patey helped broker the deal that put Chelsea in the hands of Roman Abramovich in 2003 and more recently was involved in the negotiations that led to Liverpool and Manchester City selling out to American and Arab ownership respectively.

 

The Edinburgh-based Scot is global audit and accounting giant Ernst & Young's football financial expert and although he has not been involved with the Whyte takeover bid at Ibrox he has been keeping a professional eye on the situation.

 

Patey insists Rangers will NOT fold if Whyte walks away and the club is hit with a massive tax bill but he believes administration is a possibility and years of financial hardship a certainty.

 

He also reckons that if the Motherwell-born venture capitalist does take the plunge - and his gut feeling is that Whyte will - then Rangers can slowly move away from the abyss.

 

However, Patey insists the new man should do his best to hand Ally McCoist more than the �£5million he has pledged as a transfer kitty in his first season.

 

Liabilities The finance expert acknowledged that the proposed deal has dragged on longer than expected but is convinced the major sticking point has been the tax issue - and the fact nobody knows how hard, if at all, it is going to hit Rangers.

 

He said: "I have been involved with the takeovers of Liverpool, Manchester City and Chelsea among others.

 

"Typically, they do become protracted affairs but this one is most definitely taking longer than you would expect and longer than a normal corporate transaction would happen.

 

"There could be a number of reasons for that. One is undoubtedly the whole negotiation of how you clear the Lloyds debt - is it immediately or do they wind it down over time?

 

"Also, there is the issue with the tax liabilities which could arise and those are not insignificant.

 

"They might crystalise not directly into Rangers Football Club but into one of the holding companies of the current owner - but it could be deemed that they were for the benefit of the club.

 

"I am sure those issues are part of the reason why it has taken so long.

 

"You also have to remember Whyte has made his money in venture capital and they are hard negotiators.

 

"That has almost certainly added to the due diligence, both from a financial and legal perspective.

 

"I am sure he will be a hard negotiator who is wringing every last pound of value out of the deal."

 

The Ernst & Young expert paints a bleak picture if Whyte fails to secure the deal he is looking for.

 

He said: "If Rangers aren't sold to Whyte they will have to continue in the same vein as they have done in the last couple of years.

 

"Lloyds will continue not to extend them any more money and will try to reduce the debt over a period of time.

 

"Ally McCoist will need to work with not much money for transfer fees and salaries so it will be a continuation of the situation as is and the squad will be under increasing pressure because of that.

 

"The big issue is the tax situation - it may come to nothing but if it does crystalise it could be settled or adjudicated at any sort of value.

 

"It might come in at a couple of million but if the full penalties and interest are awarded to HMRC there is talk of figures in excess of �£40m. That is a big amount of money and it has to be paid.

 

"If the club doesn't have the money and the bank won't give them it - and if someone like Sir David Murray doesn't give them it, which is probably unlikely - then that is an issue.

 

"It is not inconceivable that they could do a Portsmouth. It was effectively the taxman who forced Portsmouth into administration."

 

While that would be a hammer blow Patey insisted Rangers would not go out of business.

 

Cease "That scenario doesn't mean the club wouldn't exist any more," he said.

 

"It means the administrator would do a deal with the bank and the taxman to pay them off and they would come back out of administration.

 

"The SPL would hit them with a points deduction for going into administration but for Rangers that would probably mean they would still finish second to Celtic that season.

 

"That scenario is not impossible. It is unlikely but there is that possibility.

 

"But I would see them coming back out of administration if it were to happen. Rangers Football Club would still be there - it would not cease to exist."

 

Patey believes, though, Whyte WILL strike an agreement to become the new owner. He said: "Is it going to happen? If you'd asked me a couple of weeks ago I would have been pretty dubious.

 

"But it does look now as if they are edging towards a deal. It could still fall apart but if I were a gambling man I'd say it will happen in the next few days.

 

"Whyte's involvement has to be a good thing for Rangers if he clears the bank debt, gets them moving forward and provides a transfer budget."

 

If that does happen he reckons Whyte has to find a way of juggling his finances to allow McCoist to make a bigger impact on the transfer market in his first year.

 

Patey said: "Whyte appears to be ready to allocate �£5m a year over five years for a transfer budget.

 

"But it would be much better for McCoist if �£15m was put in up front and the remaining 10 over the next four years.

 

"The current squad needs refreshing and �£5m won't do much.

 

"However, while I don't think Whyte's projected transfer allocation is enough to make them a force in Europe it should sustain their fight with Celtic for the SPL year on year."

 

http://www.dailyrecord.co.uk/2011/04/08/football-finance-expert-admits-rangers-takeover-is-dragging-out-longer-than-most-would-expect-86908-23046029/

[Danny 0]

Getting sick of this crap again. When I heard Murray had agreed the sale, I dared to believe this might actually happen.

 

What a fool I was.

 

This is going to fail.

[Gers4Life 0]

And we are still waiting yet again! big announcement followed by sheer quietness

[Danny 0]

Craig Whyte is planning to increase the amount of money he gives to the next Rangers manager Ally McCoist, if he can seal a deal to buy the Glasgow club.

 

BBC Scotland has learned that Whyte has listened to appeals by the club's chairman Alastair Johnston to provide more than �£5m in his first season.

 

"Craig wants that as much cash as possible to go into the club," a source close to the deal told BBC Scotland.

 

"That's been his goal, and one reason why the is taking so long."

 

The Scottish businessman has been in negotiations to buy Rangers since mid-November, with several target dates for a completed takeover having come and gone.

 

BBC Scotland has learned that the deal is unlikely to go through until the middle of next week.

 

One of Whyte's promises was to provide �£25m over five seasons towards strengthening the playing squad.

 

But the source close to the deal close toll BBC Scotland that the businessman has decided to make available "significantly more" than the average sum of �£5m to McCoist when he succeeds current manager Walter Smith at the start of next term.

 

"Craig is determined to get the right deal for Rangers, for the manager, for the club, and the players.

 

"He also wants to make sure it is the right deal for the Rangers fans."

 

The Ibrox club's current owner Sir David Murray and the Scottish businessman have been involved in months of negotiations.

 

Chairman Johnston has insisted progress has been made, although no agreement has yet been reached.

 

 

The latest...

[Frankie 8,663]

I'd much rather Mr Whyte closed the deal and explained his plans for the club as opposed to soundbites about transfer budgets.

[craig 5,199]

Perhaps Frankie - but you have to admire his tenacity in not crumbling to whatever the asking price is. He is negotiating hard, hopefully that tough stance will be utilised in the transfer markets, with media and in defence of our club IF he takes the reigns.

[Zappa 0]

Getting sick of this crap again. When I heard Murray had agreed the sale, I dared to believe this might actually happen.

 

What a fool I was.

 

This is going to fail.

 

I'm not convinced either. Everyone got all excited about the official club statement last week regarding the takeover when in actual fact all the statement was saying was that we'd know one way or another within a few days. That was 7 days ago. Stinks of season ticket sales tactics IMO.

[metlika 0]

Perhaps Frankie - but you have to admire his tenacity in not crumbling to whatever the asking price is. He is negotiating hard, hopefully that tough stance will be utilised in the transfer markets, with media and in defence of our club IF he takes the reigns.

 

I'm hopeful this might be his attitude if he ever does takeover.

[chilledbear 16]

I'd much rather Mr Whyte closed the deal and explained his plans for the club as opposed to soundbites about transfer budgets.

 

No direct quotes.

[craig 5,199]

No direct quotes.

 

Direct quotes from Whyte are more than unlikely as it would probably breach PLUS market rules.