“HMRC has taken the view that the public interest will be better served with the liquidation of The Rangers Football Club plc”
These are the words from a statement by Paul Clark of Duff and Phelps, one of the administrators of Rangers FC PLC (in administration) that spelled the end for the Ibrox club. The widely expected news that the tax authorities would vote against Charles Green’s plan to exit administration through a CVA proposal meant there was nowhere left to go.
Liquidators from accountancy firm BDO will now be appointed to wind up the company after selling off its assets, with a brief of collecting as much money for the many creditors of the club as possible.
Now I was going to try to write a simple factual piece on what to many of us has, for a long time, been the inevitable end to the Rangers story. But I just can’t do it. I have to say it just once:
I told you this would happen!
Way back on 3rd January 2012 in a blog about the year ahead I wrote,” Ally McCoist could go down in history as not only an unsuccessful Rangers manager, but also as the last Rangers manager.”
And on 2nd February 2012, just before the club went into administration. I said, “Rangers Football Club is a dead man walking, just waiting to be put out of its misery.”
So please allow me a moment of gloating now that the death knell has finally sounded. Now that liquidation has been shown to be a reality and not a fantasy. Now that I and other crazy Celtic fans have been shown to be absolutely on the money.
Thank you. So let’s move on. But before looking to the next steps, there is one more part of Paul Clark’s statement that should be considered.
“HMRC consider that the decision will enable a liquidator to instigate a wider investigation into all of the financial affairs and management of the club in recent years and to bring to task those they believe are responsible for its collapse.”
So we now know that not only is Rangers finished but that there will be a full investigation into the gross mismanagement over many years that got it into the state it is right now. And if I was a former Director or senior official of the club I would be very worried right now. I would be expecting some tough questions to be coming my way sometime soon.
In fact, I would not rule out this investigation resulting in criminal proceedings for at least some of those previously involved in running Rangers.
But back to footballing matters.
As expected, a new company is waiting in the wings ready to start a new football club. It currently goes by the name of Sevco 5088. But that will change.
Charles Green believes that this company will now purchase the assets of Rangers FC PLC as the liquidation process unfolds. His new club will then own Ibrox Stadium and (the likely to be renamed) Murray Park. It will apply to the Scottish Premier League to take over Rangers’ SPL place. It all sounds simple.
But there may be a few legal flies in Mr Green’s ointment. The liquidators BDO will probably decide that they can get a better deal for creditors through an open sale of assets than the £5.5M that Green has agreed with Duff and Phelps. The Blue Knights might come back into the picture with an attempt to establish a new club. Craig Whyte may still believe that his charge over the assets should come into play. Director Dave King believes he has some claim too. And Ticketus might also have a part to play.
I believe that a lot of lawyers will make an awful lot of money before this mess is finally resolved.
And there is a great deal more still to unfold in this story. The biggest problem that Mr Green, or indeed anyone else who wants to run a new club, faces is time. It has so much to sort out before it could play football: all of the legal issues, all of the various investigations into contracts and EBTs which will inform a vote on SPL admission, the funding issues, finding new players and all other matter would have to be sorted out quickly.
But one thing is very clear. Rangers FC will cease to exist.
As the BBC put it: “The Rangers Football Club PLC is a public limited company registered in Scotland (company number: SC004276) and was incorporated on 27 May 1899. When the current company is officially liquidated, all of its corporate business history will come to an end.”
Any new club formed will be exactly that: a new entity that will start from scratch with no history and no pedigree. Whether that new club could manage to secure a place in one of Scotland’s football leagues remains to be seen.
But that’s a subject for another day.
Though I read your articles this is my first time posting. I guess I am so caught up in the euphoria I just have to say congratulations on all of your exceptional ‘journalism’ and your expertise. The ride has been brilliant and you, with several others, should have a place in Scottish football folklore, if not even history. In a dark world of lies, all of you were the beacons of light and truth providing the hope we needed to feel vindicated. Thank you and keep us informed.
H H
Thank you, sir!
Gordon_J
Your best yet :O) a beautiful day ,today.
Cheers voguepunter
The “journalists” in this sad little country of ours must look at what you Bhoys have brot to the fore while they dined on the S L now wish they hadnt ate the S L and drank the fine wine and acted like whimps. They know who they are and we know who they are. They will never ever gain our respect again!!
Great stuff Gordon!!
ps Are you the bear on the right? He looks the more aggressive one. lol
Thanks jinky44. The reality is that all of the information needed to predict exactly what was going to happen has been in the public domain for a long time. The mainstream media chose to ignore it – which is why so many people were surprised when they went into administration, never mind being liquidated.
Explain this. The 1872 club had 27 years of history prior to being taken under the control of the 1899 company. After the sale of the 1872 club to a new company, the 1899 company will be wound up.
As there was history of the club before 1899, it stands to reason that said history will continue.
Or are you trying to say that the period 1899-2012 will be completely ignored?
You need to present a coherent argument for it to be taken seriously.
And you would be best to start on the premise that the 1872 Club is not being wound up, liquidated or terminated in any other fashion.
The 1899 company will be, in due course, after all its assets are sold.
Just wondering. BTW, I am a Geordie fan in England so have no thoughts either way (before any “he must be a bear” stuff is thrown about).
I could have guessed your allegiances from the name! (fine player, btw).
The Rangers Football Club was formed in 1972 as an unincorporated organisation, a simple club, probably with a set of rules or a constitution. The club incorporated, that is became a company, in 1899 and the original rules were replaced by Memorandum and Articles of Association. But it was still the same organisation, simply with a different legal status.
That company has continued to the present day. It has had a lot of different shareholders, a few different owners, etc., but it is still the same legal entity. There is an unbroken line between 1872 and 2012.
The line will end when the company has its assets liquidated and is then wound up. An entirely separate legal entity, Sevco 5088, will become the new club – with a different name obviously.
A similar football situation from England: Aldershot FC was formed in 1926 and wound up in 1992. A new club, Aldershot Town FC, was formed in 1992 and worked its way back into the Football League from non league football. But the two are totally separate football clubs.
Your Aldershot example is actually incorrect. The closet correct example would be Leeds.
The 1872 club had history prior to becoming controlled by the 1899 Company, and will surely have such afterwards.
It brings out more the question -what is the club? Do the fans follow Rangers or Celtic or “Rangers Football Club Plc” or “Celtic Football & Athletic Company Ltd – changed in 1994 to Celtic Football Club PLC”
The club is more than simply the company which is registered to run the finances. The club is the team, the colours, the trophies, the history, the stadium, the other assets, both tangible and non.
SO again, the premise that Rangers will “die” represented by your title is a little misleading.
The 140 year old club will apparently (at the moment) survive, whilst the 113 year old company is wound up.
Ba! must be a bear…wi a sore heed. Talk about clutching at straws! To try and latch on to something that resembled an auld scotch mist in an attempt tae adopt a history…classic! Great stuff again Gordon and once again well done for your honesty and integrity – two commodities that can’t be bought.
Not a bear, and believe me in some parts down here you’d get a slap for that!
And just intrigued by the whole goings on up there, so decided to do some research myself before blindly believing what is written.
It’s a question of belief! Some will say its a new distinct entity and other’s will disagree.
Morally, I would say that those who want to proclaim continuity can only do so if the “club” makes good on all its outstanding financial obligations and also is subject to penalties derived from prior rule breaking!
Ba! Demba Ba,
My view is that the 1872 club became the 1899 company rather than being controlled by it. The club incorporated and thus became a company. Similarly Celtic Ltd became Celtic PLC, which changed its name and legal status, but it was still the same entity afterwards.
What is the club? Now that’s an interesting philosophical question. I think most people would simply equate the club with the team on the pitch actually playing football. But who employs the players, runs the stadium, banks the ticket money, owns the brand and the trade marks, etc? That would be the company.
dombhoy67,
Thanks for your kind comments.
Peter Medewar,
Well, if Mr Green was to buy the business and pay off its debts there would be no arguments that it would still be Rangers! But instead he is buying the assets and forming a new and distinct club.
It seems incredible that neither HMRC, the creditors nor the SFA & SPL have failed to query the inaction of the administrators to recover those outstanding “DISCRETIONARY LOANS”paid via EBTS; if these payments were truly LOANS then the administrators should have sought immediate repayment in the interest of all creditors, that they failed to do this points to the EBT’s being ADDITIONAL TAXABLE WAGE PAYMENTS. Perhaps someone in authority should take this on board when considerring any application made by a newco Rangers for a licence and for re – instatement to any football league.
In closing could someone please clarify if an oldco liquidated Rangers can vote on the acceptance of an as yet unlicenced newco Rangers (if indeed BDO the liquidators fail to block the sale in the interest of the creditors) in the Premier League; if the are not entitled to vote in liquidation then this will negate the iniquitous 11 – 1 voting requirement
UEFA view the new entity as a new club. That is why Club 12 will have to wait three years before being eligible to play in Europe.
However if the new club later try to pass themselves off as the old club I’m sure UEFA will happily oblige them by demanding they pay all the cash the old club owed to its footballing rivals.
God, listen to yourself. Another blogger leaping on the bandwagon to claim some ‘triumph’ over the mainstream media. Fair play to rangers tax case (the dude with the HMRC insider who broke all of this) but for geezers like you, scotzine and alex thomson to claim credit is laughable. The suggestion that people were ‘surprised’ Rangers went into administration because the media had ‘ignored’ the info is dishonest and risible. Exactly the kind of thing I’d expect from the worst excesses of the tabloid press indeed. Wouldn’t pat yourself too hard on the back frankly,
the huns are dead long live the huns. hail hector
Why do people keep referring to club 12 (as will be shown on the fixture list) as THE Rangers Football Club LTD? I take club 12 to mean the twelfth team of the SPL (which has obviously still to be decided). The 12 in club 12 (as on the fixture list) doesn’t represent this year! year of the newco/club.