Craig Whyte speaks to the Sun and sets record straight

[der Berliner 3,814]

Article in the Scottish Sun

 

Will hopefully calm some nerves and does away with some of the stuff we had to endure these last few days and weeks!

 

RANGERS chairman Craig Whyte has been battered from pillar to post in the toughest week of his Ibrox reign.

Rocked by allegations of using Gers fans' season ticket money to finance his plans.

 

Slaughtered by the old Ibrox hierarchy who accused him of stripping the champions of their dignity.

 

Gutted by the £6million loss of prize asset Nikica Jelavic to Everton and the failure to find a replacement before the transfer window slammed shut.

 

Yesterday the Gers supremo came out fighting. The Rangers fans had demanded answers to the questions haunting them.

 

SunSport turned the spotlight on the under-fire owner of their troubled club.

 

This is what he said...

 

You have been accused of using Gers fans' season-ticket money to finance your regime. How do you react to that?

 

"They throw up this figure of £24.4m and say we have sold off four years of season-ticket money.

 

"The deal is actually for three years but don't let the facts get in the way of a good story, eh?

 

"The deal is also fully underwritten by one of my companies. There is no risk to Rangers fans whatsoever.

 

"I want to tell the fans that the money they put into Rangers stays in Rangers.

 

"I can reassure the fans that any money we get in is used to run the club and nothing else.

 

"I have a personal commitment of £25m in Rangers and I have never taken a penny out of the club.

 

"I don't take expenses and I travel on my own coin â?? unlike those who are sniping in the background."

 

The allegations centre around a deal with the firm Ticketus. Is it the case that they had been used by the Rangers board BEFORE your takeover?

 

"Yes, Rangers had used this company for two years before I was ever involved. I spoke to Ticketus because I knew it was a liability coming up after the takeover.

 

"A ballpark figure for that would be £7m so I spoke to them and we decided we would roll over the facility.

 

"It is a perfectly standard way to operate and I don't criticise the old board for using it."

 

It was claimed by former chairman Alastair Johnston that Ticketus' parent company Octopus was now sole creditor of Rangers and not yourself. Is this true?

 

"No, again, that is total 100 per cent c*** and I think legally actionable.

 

"Octopus are not the secured creditor of Rangers. I am.

 

"That's the sort of thing that is easy to check out but no one even bothered.

 

"That's how you end up with egg on your face, looking stupid."

 

So much of Rangers' troubles with the taxman centre around the use of Employee Benefit Trusts (EBTs) â?? the so-called offshore payments. What can you tell us about those?

 

"The bitter irony here is that former director John McClelland has an EBT and so does the ex-chief executive Martin Bain. The EBTs were stopped the day that I took over. Now we are in a world of uncertainty and if this tax case goes against us we will have a huge problem."

 

 

Can you explain the claim that £5m of VAT has not been paid?

 

"It is absolute nonsense and again I am speaking to lawyers on that one. Over the last two days I have faced claims, 75 per cent of which like that one have simply no basis in fact.

 

"I inherited £18m worth of bank debt and we had a lease on the Albion Car Park which we did a deal for.

 

"Then there are trading debts, transfers and we have spent £4m refurbishing Ibrox."

 

Rangers fans are hurting after the loss of Jelavic with Steven Naismith out for the season and Kyle Lafferty also injured. Can this squad keep the title?

 

"We know it will be tough but we feel on the whole that we have improved the team since the summer. Bocanegra and Goian have been good business and we invested £1.5m in Lee Wallace.

 

"We extended contracts in the summer for Davis, McGregor and Whittaker.

 

"There are big costs in that and hidden ones in £1m of agents' fees.

 

"Now I hate paying that out but you have to it in this business. Few understand that those deals were the equivalent of going out and spending £15m."

 

Is there money to keep the likes of Edu and Lafferty on new deals?

 

"Yes, my caveat though would be that the deals have to be sustainable. If they want double their wages then it won't happen but I want to give us the best team possible."

 

Is Sone Aluko an example of the kind of bargain you have to think of now?

 

"That was a great bit of business and he is one we will certainly be looking to extend a deal with. That was a smart deal and it's the sort of thing we need to look at now.

 

"That has to be part of our business model now because the money is not there as it once was.

 

"The problem is Rangers fans have not been used to that over the last 15 or 20 years."

 

Fans fear it could be McGregor or Davis next...

 

"We don't have to sell a big player in each window, that's not the position. We could have sought offers for those players in January but we didn't."

 

How have you found the reaction from the fans? Do you feel they are behind you?

 

"I find that many realise what we are going through.

 

"I went to the Family Section in the Broomloan Stand on Saturday and got a great reaction.

 

"That sustains me because I see what this club means to people. Look, someone has to do this job and if it wasn't me then it would be someone else.

 

"It will be satisfying when it is done and I don't regret coming in.

 

"This job is a privilege even if there are days when you wake up and wonder why you did it.

 

"One day I will wake up and know I have helped turn Rangers round and that will be the biggest job of my life. That is what I signed up for."

 

What about an AGM? Why has one not been held so far?

 

"We can't have an AGM until we have the accounts signed off.

 

"We can't get the accounts signed off until we have more clarity on the tax case. It's chicken and egg. The main purpose of an AGM is to sign off the accounts and we can't do that yet.

 

"I still think we will have it before the end of March."

 

Do you have any date from HMRC for an outcome to the Tribunal and an end to the tax saga?

 

"They don't give you a date, that's not how it works.

 

"People under-estimate how tough it is to run the business in these circumstances.

 

"Less money comes in because you have corporate fans who paid a year in advance going game by game.

 

"Then suppliers who gave you 60 days' credit want new deals. It is a battle and we have to get the message across that this is the reality of life at Rangers now.

 

"We have been the whipping boys for long enough, I just want the picture to be clear of what we are trying to work through here."

 

Would you appeal any HMRC decision if it went badly against you?

 

"We will have to assess that but I think Rangers fans are sick of living through this now.

 

"I feel the same as the fans but my sleeves are rolled up and we will get this sorted out."

 

Finally, is administration for Rangers inevitable now?

 

"No, it is not inevitable and if we can avoid it then we will.

 

"On the other hand I can't say that it won't happen either.

 

"All I can say is that I will do all I can in my power to avoid that situation."

[bluebear54 0]

Thanks dB. Don't honestly know what to think just now. CW's certainly more forthcoming with info than past masters. Just dubious as to the veracity of the info. And I'm still in doubt about CW's motives.

However, I'm open to persuasion, and I guess we must just wait to see what unfolds in the end game, which is soon.

Oh yes, and I'm so up for winning this league. This would be the cherry on the top. The one to remember forever.

[Bluedell 5,679]

"They throw up this figure of £24.4m and say we have sold off four years of season-ticket money.

 

"The deal is actually for three years but don't let the facts get in the way of a good story, eh?

 

"The deal is also fully underwritten by one of my companies. There is no risk to Rangers fans whatsoever.

 

He says three years as if it's a good thing, and is not questioning the £24m.

 

There is a risk to Rangers. The risk is that we will have an even bigger shortfall in future years as we are using the cash now and will have to sell even more players.

[Bears 0]

If the Sun had gone along the same lines as the DR we would have dismissed it though. This is where selective reading comes in. The Sun is full of shite and although it makes good reading for us. it IS still the Sun.

 

Pinch of salt comes to mind

[franker 3]

He says three years as if it's a good thing, and is not questioning the £24m.

 

There is a risk to Rangers. The risk is that we will have an even bigger shortfall in future years as we are using the cash now and will have to sell even more players.

 

Bluedell, Can either yourself or Craig tell us based on your professional experience, if there are any circumstances that would allow Grant Thornton to audit and sign off the accounts prior to the FTT ruling?

[Frankie 8,665]

More interesting comments and it's good to see Whyte attempting to explain the situation from the other side of the fence.

 

Unfortunately, without in-depth examination of the accounts and knowing how the HMRC verdict will affect his plans, we're really none-the-wiser. I'd still like to see an EGM where the club board have to give on-the-record answers to the questions we have.

[Tannochsidebear 2,429]

I understand where you are coming from Frankie regarding an EGM, but I dont think it will make much difference to what we are getting just now. Going on the format of previous AGM's, if they didnt want to answer a question openly, they gave a politician's answer and moved on. Putting answers on the record didnt help us hold Murray to account all these years, as their shareholding makes them untouchable.

 

Very uncomfortable to hear confirmation that we have a facility with Ticketus for 3 years season ticket money up front. I dont like that one bit and this will certainly lead to cashflow problems going forward, unless we continue with a 3 year rolling agreement to keep it pushing along.

 

I did love the dig at the former board members where he said he hasnt taken a penny out and pays for his own travel, unlike those sniping. This is a direct hit at AJ who hit the club with enormous travel cost bills, allegedly for far more travel than just club business. I am very uncomfortable with ex-board members going public in the Daily Rhebel and having continued pot-shots at our new owner, when they oversaw the whole goddam mess under Murray with not a comment. It seems it was ok as long as they were getting paid, but now the golden egg has moved on they have become very bitter.

 

Not half as bitter as we, the fans, should be about their involvement in our club.

[Frankie 8,665]

I think that's all very fair TB...

 

I understand the former board's concerns but to bleat about them in the press instead of working with supporters privately is incredibly arrogant and instead of delivering sympathy it merely alienates them further.

[Bluedell 5,679]

Bluedell, Can either yourself or Craig tell us based on your professional experience, if there are any circumstances that would allow Grant Thornton to audit and sign off the accounts prior to the FTT ruling?

 

Good question.

 

There are a number of issues as to why the accounts have not been signed off:

 

1. The directors are unhappy producing accounts that don't include a provision for the tax. However given that they have published unaudited accounts, I'd suggest that this is not the most probable answer.

 

2. The auditors have said that they would sign off the accounts with an "emphasis of matter" statement in respect of the tax case (this is not a qualification) abnd the directors do not want this. That's possible, but I don't see what the big deal would be but CW may feel differently.

 

3. The auditors have reviewed the tax case and feel that the likelihood of us losing is such that provision should be made and are therefore unhappy with the accounts as they stand, and if they were to stand then they would need to qualify them. This is also possible but I can't comment on the likelihood. However they signed off the previous year's accounts with it being provided, but their opinion could have changed.

 

4. There are some other possibilities falling inbetween points 2 and 3 but they depend on where the directors and the auditors stand on the likeihood of success of the case and we don't know where either party stand so it's difficult to say exactly whether the auditors could sign off or not.

 

I have been advised that going concern is possibly not the reason why they are not being signed off. It seems that it's a bit more problematic that I had initially thought.

Edited February 2, 2012 by Bluedell

[der Berliner 3,814]

IMHO, and this very much based on next to no knowledge about how it is being done anywhere else ...

 

- Ticketus deal is being done as we have no other "facility" running (which bank would do this right now, HMRC looming?) to deal with everday costs et al; Ticketus themselves have said that this is usual practise and has been done for years, even with us; Assumption: Ticketus and Rangers assume season ticket sales to be at around at least 30k per season, no matter whether we face administration or not - neither expect that Rangers cease to exist (which IMHO is a ludicrous idea planted by you know who in the press). I wouldn't go so far as to assume that Whyte, Ticketus and Rangers have a good idea about the result of the case, but Thornton et al might (just might!) have told them how the HMRC people wanted to deal with the stuff and what chance they have to pull this off.

 

- Calls for the AGM. Now, call me a simpleton, but I simply cannot undrestand why people demand an AGM when it is clear since last November that there won't be any until we know about the tax case. So keeping on demanding one right now seems to be a touch foolish - no insult intended here, BTW. There won't be results until after the verdict ... and we have time till end of March 2012, have we not?

 

- No money ... IMHO is clear too. He obviously wants to have a neat sum ready should we face a small HMRC bill from the big case, or pay of the small one in one go.

 

- It smacks you in the face that those people criticising Whyte these days also had EBTs running, e.g. Bain, McClelland, and its use only stopped with Whyte.

 

On a sidenote - and the sceptics on here will tell me that his words are just that so far, i.e. cheap words - should he indeed waive the debt he has placed in the RFG, will those snipers and doom-singers really eat as much humble-pie as they have to?

 

IMHO, Whyte has been acting like he had to in these circumstances and much of what has been thrown against him has come from people well groomed and fed by the negative hysteria press and mhedia ever since the Ellis attempt. People should calm down and try to remain on an objective level. No head in sand or the like, but not envisaging the evil business shark at each corner either.

Edited February 2, 2012 by der Berliner
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