Rangers Football Club 0 Posted February 13, 2012 Share Posted February 13, 2012 (edited) CLUB statement on intention to appoint administrators The Rangers Football Club plc has today announced it has filed a notice of intention to the Court of Session in Edinburgh to appoint administrators. The Club will conduct its business as usual and will not be in administration until it decides whether to formally proceed with an application to appoint administrators. Until such time, the Club will not face any sanction from the football authorities in terms of points deduction within the Scottish Premier League. Sanctions such as a 10-point deduction will only apply if the Club proceeds with the appointment of administrators. It is expected to be 10 working days before a decision is made whether to appoint administrators. Suppliers to Rangers Football Club and the Club's business partners and sponsors are currently being informed of today's announcement and arrangements between the Club, suppliers and creditors will continue as normal. There will be no impact on season ticket holders and shareholders. Season tickets will continue to be valid for this season and any commitment to a season ticket for next season is secure. The Club is continuing to have dialogue with HMRC in the hope that a formal insolvency procedure can be averted and has put forward pragmatic proposals. The Club's owners believe there is no 'realistic or practical' alternative to this course of action in order to secure the long-term future of the Club. Should administration take effect, the Club is proposing a Company Voluntary Arrangement (CVA). The Club wishes to seek the protection of a moratorium from HMRC action whilst a CVA proposal is made to creditors. The Club has put forward a CVA proposal to HMRC in which creditors would be paid and provision made for the legacy HMRC case, commonly known as the 'big tax' case. This, if approved by creditors within a month, would minimise any points deduction and enable the club to participate in European football next season. The Club has engaged Duff and Phelps, a specialist restructuring practice to assist in finding a solution to the present position. Should the Club proceed into administration, the appointed administrators will in all likelihood implement a cost-cutting programme and staffing levels will be reviewed across all departments of the Club's business. Rangers chairman Craig Whyte said there is no 'realistic or practical' alternative to this course of action due to a combination of the Club's ongoing financial situation and the impending result of the HMRC first tier tax tribunal. The tribunal relates to a claim by HMRC for unpaid taxes over a period of several years dating back to 2001, which, if decided in favour of HMRC, could result in liabilities and penalties substantially more than the £50 million reported which the Club would be unable to pay. Further investment in the Club from any source would be impossible as the threat of winding up by HMRC cannot be removed. The Rangers FC Group, the majority shareholder in the Club, is prepared to provide further funding for the Club on the basis the funding is ring-fenced from the legacy HMRC issue. Mr Whyte said: "It is extremely disappointing the Club's finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the Club both on and off the field. The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago. If we do not take action now the consequences and the risks to the Club are too great. "In addition to the HMRC issues, it has been abundantly clear to me the Club faces serious structural and financial issues which will continue unless they are addressed. "There is no realistic or practical alternative to our approach as HMRC has made it plain to the Club that should we be successful in the forthcoming tax tribunal decision, they will 'appeal, appeal and appeal again' the decision. This would leave the Club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC. Even if the Club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen. "Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the Club. "I can, however, reassure Rangers supporters that the Club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect. "At this point I would ask all Rangers supporters to continue to show the tremendous support they have shown to the Club, Ally McCoist, his management team and the players." Edited February 13, 2012 by Zappa 0 Quote Link to post Share on other sites More sharing options...
ascender 352 Posted February 13, 2012 Share Posted February 13, 2012 So the statement makes it clear that the amount of financial penalty being discussed as a result of tax case(s) could exceed 51m?!?! And if the tribunal rules in favour of us, HMRC will "appeal, appeal & appeal again". 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,624 Posted February 13, 2012 Share Posted February 13, 2012 I just received a text from a friend who has a lawyer buddy, and I'll quote it: Apparently we have to serve notice in case the tax case goes against us - it's precautionary measure. If we lost the case we could enter administration and the stadium et al would be safe. It's illegal to do it after the outcome of the tax case. If the tax case goes for us we avoid administration. How can it be illegal to go into administration after the outcome of the tax case? How can the stadium be safe if we go into administration? The administrator could sell it if he saw fit to do so. Danny, I think that your mate needs a new lawyer. 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,744 Posted February 13, 2012 Share Posted February 13, 2012 We have the Club's statement now and should relax somewhat ... The Club will conduct its business as usual and will not be in administration until it decides whether to formally proceed with an application to appoint administrators. What is the key issue seems to be the tone of the HMRC people who will proceed with their claim "no matter what" and thus essentially keep the club from operating. IMHO, this borders to extortion and coercion, no matter whether they have the right to do this or not. 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,744 Posted February 13, 2012 Share Posted February 13, 2012 This ... "There is no realistic or practical alternative to our approach as HMRC has made it plain to the Club that should we be successful in the forthcoming tax tribunal decision, they will 'appeal, appeal and appeal again' the decision. This would leave the Club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC. Even if the Club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen. "Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the Club. "I can, however, reassure Rangers supporters that the Club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect. "At this point I would ask all Rangers supporters to continue to show the tremendous support they have shown to the Club, Ally McCoist, his management team and the players." ... is what I expected to read after the initial meltdown. As nothing else can be done today or for the time being, I think I quit the debate for now. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,624 Posted February 13, 2012 Share Posted February 13, 2012 We have the Club's statement now and should relax somewhat ... I'm not any more relaxed than I was before reading it. What is the key issue seems to be the tone of the HMRC people who will proceed with their claim "no matter what" and thus essentially keep the club from operating. IMHO, this borders to extortion and coercion, no matter whether they have the right to do this or not. If it was any other company in the UK that had underpaid their tax then I would be urging HMRC to maximise the return so aid the taxpayers. HMRC can't go easy on us just because we're the Queen's 11. There's also an argument that they can't settle as it would set a precedent which would allow all the other companies that apparently owe billions under EBTs to underpay as well. The issue is a lot bigger than our club unfortunately and we can't expect preferential treatment. 0 Quote Link to post Share on other sites More sharing options...
Zappa 0 Posted February 13, 2012 Share Posted February 13, 2012 I don't see how we can remain calm about this. Rangers chairman Craig Whyte said there is no 'realistic or practical' alternative to this course of action due to a combination of the Club's ongoing financial situation and the impending result of the HMRC first tier tax tribunal. It looks like Whyte can't afford to keep the club running (no matter what the tax case outcome is) without going into administration. 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,744 Posted February 13, 2012 Share Posted February 13, 2012 (edited) ... but Vodafone could? Other companies could? Because their lobby is bigger than ours? I see your point Bluedell, but the way HMRC decided that hardline approach right when it was the worst for us is ... well ... Zappa It looks like Whyte can't afford to keep the club running (no matter what the tax case outcome is) without going into administration. No-one wants to bank or deal with us as it stands now and no-one on here thinks that one man will dig even deeper in his pocket to finance the club for much longer. Running costs are at 3.5m a month ... and Whyte is no sheikh. Edited February 13, 2012 by der Berliner 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted February 13, 2012 Share Posted February 13, 2012 For those looking for shreds of comfort... I have a client who, in the US, went into Chapter 11 bankruptcy (similar to administration in the UK) and the reason behind it was to protect the company from creditors, as RFC are stating they are doing. My client came out of Chapter 11 after about 18 months and with a very healthy balance sheet. Not saying we are even remotely similar but just looking to provide crumbs of comfort - even though they may be ill-conceived crumbs I am offering up. I am numb to be honest. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,114 Posted February 13, 2012 Share Posted February 13, 2012 Take a look at Traynors blog today especially the part on David Grier. http://www.dailyrecord.co.uk/football/spl/rangers/ Low and behold http://www.mcr.uk.com/person.html?id=43 how many David Griers are there out there. 0 Quote Link to post Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.