Craig Whyte speaks to the Sun and sets record straight

[Zappa 0]

Posted a new thread about a Jumbotron - http://www.gersnetonline.co.uk/vb/showthread.php?38961-EX-Rangers-Sony-Jumbotron-for-sale-on-Ebay&p=298369#post298369

[pete 2,499]

Nice one Craig!

 

Couple of minor nit-picks: McKay only cost £300k or just a fraction over £300k and Celik won't cost as much as £300k in compensation, more like round about £200k from all the various reports I've read. Some actually say it could be as little as £150k.

 

Also, as I was saying in my post above, there's no way Whyte paid the full fee up front for Wallace. I don't know what was paid, but it would almost certainly be somewhere between a third and a half of the £1.5m paid initially, so somewhere between £500k and £750k I'd have thought.

WORRIED Hearts chiefs have asked Rangers to settle their £800,000 bill for Lee Wallace immediately â?? and have offered them a huge discount to get the cash up front.

 

Record Sport can reveal the troubled Tynecastle club are prepared to wipe more than £100,000 off Wallaceâ??s £1.5million price tag so long as the Ibrox club â?? themselves staring financial disaster in the face â?? cough up the money in one go.

 

Wallace, right, signed for the SPL champs last summer in a deal which tied Rangers into paying three separate lump sums over a two-year period.

 

The first payment of £700,000 was made when Wallace first made the move across the M8.

 

But Rangers still owe Hearts two further instalments â?? to be paid in July of this year and next â?? of £500,000 and £300,000.

 

At the turn of the year, with Vladimir Romanov struggling to meet his first-team squadâ??s monthly wage bill, Hearts tabled the proposal they believe would suit both parties â?? increasing their cash flow in the short term while handing Rangers a longer- term bargain.

 

But although they were prepared to negotiate and could possibly have been persuaded to slice even more off the overall fee, they are still waiting on a response from Ibrox.

 

Now, with fears growing that Rangers could be forced into administration as they await a verdict from their legal battle against HMRC, Hearts are worried they might receive only a fraction of the cash they are due for Wallace.

 

Rangers could face this nightmare scenario if they lose the tax tribunal, over Employee Benefits Trust payments, which ended in Edinburgh yesterday.

 

A final verdict could be two months away but Hearts are still willing to sit around the table with owner Craig Whyte to discuss some sort of compromise before his own financial situation becomes any more perilous.

 

Hearts are still battling to keep their own heads above water following a bitter wages dispute with their first-team squad.

 

On Tuesday they were hit with an SPL disciplinary charge after failing to pay their players on time for a fourth successive month.

 

A source said: â??There is a danger here that, if the situation at Rangers should worsen and the club tips into administration, Hearts are simply added to a list of creditors. If that happens they could lose a fortune on this deal.

 

â??But Rangers also stand to save a fortune by entering into some kind of compromise agreement.

 

â??Itâ??s a sad reflection on the overall state of the Scottish game when two of the biggest clubs in the country are so desperate for cash at the same time.â?

 

I know it is from the Record and may not be true.

[Zappa 0]

I know it is from the Record and may not be true.

 

Cheers Pete. I was pretty certain that Wallace wasn't paid for in one payment and although it's the D' Record I think it'll be quite close to the truth. Assuming it's accurate, then Whyte only spent £700k from his supposed £5m "investment" in this season's squad on Wallace, not £1.5m. There's £800k for Goian straight away.....

[GovanAllan 0]

Lots of missing pixels after only one game.

 

They were really crap the first game with a lot missing, but I did notice a vast improvement the next time so maybe they take sometime to fine. Most of us see the screens from a crap angle which I don't think helps with the picture quality.

[forlanssister 3,114]

Part 1 .

 

 

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."

 

 

Read more: http://www.thescottishsun.co.uk/scotsol/homepage/sport/spl/4103114/Rangers-fans-demand-answers-so-SunSport-turns-the-spotlight-on-WHYTE.html#ixzz1lHUV0Drq

 

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

[forlanssister 3,114]

Part 2 ( Had to split due to length but needed to include the article der Berliner originally quoted)

 

 

I posted this elsewhere, may as feel post it here

 

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?

 

Technically it is indeed a 3 year deal but equally technically it is now a 4 year deal. Borrow for 3 years fail to pay first years payments as agreed so borrow more and add a year to the deal. A deal which started off as a 3 year deal which a year later still has 3 years to run looks a lot like a f*&king 4 year deal to me.

 

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

 

Which one RFC Group ? doesn't that hold a floating charge over all RFC plc assets?

 

 

"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.

 

Prove it by showing us the books, audited and signed off ones. So when we pay in full to renew our season tickets Rangers FC will receive 100% of that monies or does any of it go to Ticketus?

 

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

 

In what way? in the way that you fully own Liberty Capital BVI which in turn owns RFC Group which in turn holds a floating charge over all RFC plc assets?

 

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

 

Good for you, I'm impressed. By the way has any shareholder been to Ibrox and inspected your Director's Contract as is their right in law?

 

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.

 

Roll over would indicate that the facility would be used on an annual basis yet you said it was 3 years, are you intending to roll over 3 years season ticket monies every season.

 

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

 

You would say that wouldn't you?.....

 

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.

 

Let me get this bit straight are you saying that Octopus does not hold a charge against RFC Group (or even Liberty Capital BVI) which ultimately holds the floating charge over RFC plc's assets which would effectively give Octopus a de fact charge over the assets of RFC plc?

 

Oops nearly forgot have you once again engaged the services of Carter Ruck?, my guess is no.

 

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

 

Not so easy when the ultimate "owner" is hidden behind the tax haven of the BVIs is it? but then that's the whole idea to hide things from fans and shareholders ain't it ?

 

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."

 

Hell mend those who did.

 

"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.

 

Simple question are both RFC Group and RFC plc fully up to date with their VAT liabilities?

 

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

 

How much of that £4m came from mortgaging our future catering income to Close Leasing?

 

"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.

 

What was the actual (not the reported) transfer fees paid for A Bocanegra and B Goin. How much of the £1.5m have we actually paid and how much is still outstanding?

 

"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."

 

Oh no it's not!

 

"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."

 

We concur!....

 

"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."

 

Then why did you just employ Kenny Moyes to flog Jelavic to Everton when the player is adamant he would have stayed with Rangers if you hand wanted him to.

 

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.

 

Are you sure about that? The accounts need an AGM to pass them but an AGM doesn't need a set of accounts in order to be held does it?

 

Anyway you can call a (E)GM at any time you wish can't you? in fact if 5% of the shareholders request one the law says you have to hold one doesn't it?

 

"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.

 

You can easily get the accounts signed off if you really wished though couldn't you ? Getting them signed off to your personal satisfaction well that's a different thing altogether.

 

It's not a chicken and egg it's a red f*&king herring isn't it?

 

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

 

Yup they're not so easily to fool as yer average punter in the Enclosures (like moi!).

 

"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.

 

Suppliers insurance companies aren't stupid shocker!

 

"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."

 

Aye you need a decision from the FTT in order to start the Liquidation process, what would the fans think if we were to go bust before the FTT decision, who could they possibly blame then, surely not a world renowned venture capitalist with an unblemished track record of using his own funds to rescue and reinvigorate distressed companies, na don't think that either.

 

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."

 

Well technically it could be argued liquidation isn't administration is it?

[Frankie 8,663]

Many valuable points mate and these are exactly the type of questions Mr Whyte should be answering. I don't think the answers would necessarily prejudice the HRMC case (or our strategy upon its decision) either.

 

I, like most bears, want to support Craig Whyte and appreciate the difficult job he has. But he has to be more transparent and show us why he is indeed capable of turning round our club's fiscal fortunes.

[der Berliner 3,809]

As I wrote in another thread:

 

Whyte must, Whyte has to, Whyte needs to ... yes. And preferably to the press first and foremost.

 

Does or did Dermond Desmond ever explain anything to the press? Did Fergus McCann? Does any other owner of a football club? Or ever has?

 

The press jumps on that huge HMRC bandwaggon, the support follows suit and cries even louder when Whyte does what all chairmen do: tell them what he has to and keeping the information he thinks no-one has a right to know - himself and some directors aside.

 

People should get real with what chairmen "have to" tell people about what they are doing.

[Frankie 8,663]

There's a rather large gulf between telling us every single intricate plan and deliberately misleading those that invest most into the club.

 

Perhaps those at other clubs aren't as candid as they could be. But, then again, I don't care about them.

 

I care about our club and how it is run. Over the last 12 years, because one owner wasn't open with his board and the fans, it has been led to the brink of ruin. The new owner to his credit has taken on the difficult task of leading us back from that brink. Yet, he chooses to do so via less than clear means while his own background is less than comforting.

 

Given the money our fans do invest every season, why shouldn't we look to find out more about those who run the club on our behalf? It may not be the norm but that's no reason not to change - for the better.

[Bluedell 5,679]

People should get real with what chairmen "have to" tell people about what they are doing.

 

So Whyte should be given carte blanche to do what he wants the support should not expect to be told anything and should not question anything?

 

Have we learned nnothing from the Murray years?