Rangers FC enter administration

[Junkers]

FOLLOWING today's court proceedings in Edinburgh, Rangers Chairman Craig Whyte issued the following statement.

"As a consequence of court proceedings instigated this morning by HMRC, the board of Directors has regrettably taken the decision to appoint administrators with immediate effect.
"The Club did not want nor anticipate having to take this course of action today but had no option. We had hoped that continued dialogue with HMRC would mean that a decision on administration would not have to be taken for 10 days while all other avenues were explored.


"Due to its cost structure, the Club has been loss making for many months.This situation has resulted in increasing liabilities and the Club has been in discussion with HMRC regarding these liabilities.
"These liabilities combined with the threat of the outcome of the first tier tax tribunal left the Club no option but to formally restructure its financial affairs.
"It goes without saying that administrators will work towards a solution that will be in the interests of the Club and its creditors. At no stage has a solution been sought where my personal interests were put before the Club's. The Club and our supporters come first.
"It remains our firm belief that the Club's future can be secured and we hope this period of administration will be as short as possible.
"As Chairman and a Rangers fan, it is very painful to see the Club being deducted 10 league points but I would urge all Rangers supporters to rally round Ally McCoist and the team in these difficult times."
David Whitehouse and Paul Clark, of Duff and Phelps, will conduct the administration.
Paul Clark said: "As administrators we have a statutory duty to act in the best interests of all creditors and we will fulfil that function diligently.
"We fully recognise the great history of this club and what it means to people throughout the world.
"Whilst today is a sad day for Rangers, it also addresses the terrible uncertainty that has been hanging over the Club. The administration period, while difficult for all involved, will give stability to the Club in order to move forward.
"I can assure all Rangers supporters that all aspects of the administration will be carried out with the interests of the Club firmly in mind. As a first step, the administration team will ensure that Saturday's match at Ibrox will proceed as planned and all other routine Club business will continue."


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So the 140-year-old Scottish champions have entered administration after it emerged the club owes Her Majesty's Revenue & Customs (HMRC) £49m in tax which could total £75m with penalties included. It also emerged since new owner and chairman Craig Whyte took over in May, Rangers have failed to pay £9m in PAYE and taxation to HMRC.


So, any thoughts?

 

[LittlePea]

It's a bit of a sad day for Scottish football. I'm not a Rangers fan, and don't particularly like them, but it's disappointing to see because of Rangers' standing in the SPL. It's been coming but it's a shame.

It shows the problem with the league right now though; the lack of funds overall and the fact that, despite a 10-point reduction (the least of their worries), they're still going to finish in exactly the same position anyway (probably), shows a problem too.

You have to wonder how it happened, though. They've been at the top of the SPL for season after season and have always been in Europe, it seems. Surely their income was fairly consistent? Poor management.