Rangers: The Situation Explained Simply and Matter of Factly

[SaTan's Evil Twin]

Could it be Rangers themselves which close? The outlook is becoming so bleak for them even that cannot be ruled out with total certainty. Liquidation still seems an unlikely outcome but the prospect of the club going into administration has moved from unthinkable to looking pretty much inevitable. It may not be long now before a statement is released confirming that Rangers, drowning in debt, have been placed in the hands of an administrator.

It's not about whether they win or lose the tax case against Her Majesty's Revenue and Customs. They could sink before the outcome of that is known in March or April, or else they could collapse later even if the verdict goes their way. What's becoming clear is that Rangers are living a hand-to-mouth existence where debt levels are unsustainable, income does not match expenditure, and something exceptional such as the sale of Nikica Jelavic is necessary just to pay the bills and keep the wolves from the door for the next few weeks.

BUT THEN WHAT?

HMRC are all over Rangers. They aren't just interested in the big tax case, or the smaller one for an outstanding £2.8m fee; those are legacies of Sir David Murray's reign. HMRC are also investigating an entirely new set of issues and concerns which pertain totally to the takeover by Craig Whyte and his subsequent actions as owner. They have interviewed former directors about the acquisition and about potentially outstanding VAT sums, including £5m which will be due from what is being referred to as "mortgaging the season-tickets".

Whyte has admitted using season-ticket projections for the next four years to secure loans worth £24.4m from an agency, Ticketus. He has denied using that money to buy Rangers in the first place and claimed that was a separate £18m from one of his companies. But if that is the case, where is the evidence of him investing serious money? Rangers' biggest spend on a player under him has been £1.5m on Lee Wallace, some of which has still to be paid. Madjid Bougherra was sold for £1.7m and Jelavic for around £6m with, it is believed, £3.5m paid up front.

SO HOW IS THIS LIKELY TO UNFOLD?

A club goes into administration either voluntarily or when creditors file a petition. Clubs first pay football-related debts (wages and fees to other clubs), then HMRC gets some of the money it is owed. Whyte may soon have to accept that he can no longer maintain Rangers as a going concern and pay the bills.

WHAT IS THE ADVANTAGE OF GOING INTO ADMINISTRATION?

Going into administration amounts to a rescue package which nearly always allows a club or company to survive. A licensed insolvency practitioner, the administrator's intention is to maintain the club as a going concern. It would secure partial repayment for Rangers' creditors and should avoid the club going into complete liquidation and ceasing to exist. After the administration the club re-emerges with new directors and a refreshed balance sheet. But it is no easy fix: there would be job losses among the off-field staff and redundancies, too, for players.

WHAT HAPPENS IN FOOTBALL TERMS?

Rangers would be docked 10 points in this season's Clydesdale Bank Premier League – no more, no fewer. That is an automatic and mandatory penalty imposed the moment the SPL receives court notice that a club is in administration. No vote or decision needs to be taken. The points come off immediately. Rangers would fall 11 points behind Celtic and be seven ahead of third-placed Motherwell as the table currently stands.

If Rangers believe the league title is a lost cause without Jelavic (or any quality goalscorer, for that matter) it would be in their interests to go into administration sooner rather than later. If administration happens during the close season they would start next season on minus 10 points. Ten points will be docked in every season in which they remain in administration. A club can be docked more than 10 points in a season only if it goes into administration more than once in the same campaign. Rangers would also be prevented from signing any players, either permanently or on loan. They could sell players, though. Much as January was, then.

COULD THEY BE RELEGATED TO THE THIRD DIVISION, AS LIVINGSTON WERE, OR DOCKED 25 POINTS, AS DUNDEE WERE?

No. They'd have to be relegated from the SPL (virtually impossible even with a 10-point deduction) and come under the auspices of the Scottish Football League, which can impose far more severe sanctions for being in administration. The SPL punishment is 10 points.

COULD THEY PLAY IN EUROPE?

Every club needs an SFA licence to compete in the Uefa tournaments. That is granted only if the club proves it doesn't owe money to other clubs, its employees or Her Majesty's Revenue and Customs. The SFA needs to see audited accounts before a licence can be granted to play in Europe. So far, Rangers have not submitted such accounts to the SFA. They have until March 31 to do so, although there is some leeway for up to two weeks after that. But unless those audited accounts land at the SFA Rangers will not play in Europe next season, whether they are in administration or not.

WHAT IS THE HOLD-UP WITH THE AUDITED ACCOUNTS?

This is another question that Whyte must answer. Last month he said that an audit of the finances would be complete "on or around January 31" but yesterday he told the Rangers Supporters' Trust that it had still to be done and, what's more, he could not call an annual general meeting until it had been finalised. Whyte says the delays relate to the HMRC tax hearing. That's a very vague explanation.

IS COMPLETE LIQUIDATION AND THE END OF RANGERS LIKELY?

Rangers going out of business altogether can no longer be entirely ruled out, although it is still thought to be an unlikely conclusion to the current situation. It would depend, if the club did go into administration, on whether agreement could be reached with their creditors over repayment term. If, for example, no agreement could be reached with Ticketus' parent company (if they were the preferred creditor, rather than Whyte) full liquidation would be possible.

MIGHT ALLY MCCOIST RESIGN OVER THIS?

A matter of daily speculation. His chances of winning the league look all but over without Jelavic, although he is in an almost criticism-proof position given supporters realise the conditions he must work under. Eventually he could feel he is on a hiding to nothing and decide to escape the stress of dealing with it. But if McCoist is deeply frustrated about Whyte he might feel he'd be letting him off the hook by walking out. Nothing is likely to happen until the summer, at the earliest.

WHAT IS THE SFA'S ROLE?

The SFA can suspend or terminate a club's membership if it goes into administration, which would prevent it from playing in any league, but it has never previously done so.

WHAT NEEDS TO HAPPEN NOW?

Whyte must explain why Rangers seem to be in meltdown. The biggest question is: if he didn't use the season-ticket money to buy the club, what happened to the £20m-plus of supporters' cash? It hasn't gone on signings . . .

http://www.heraldscotland.com/sport/...-club.16648763

[Trevor Santos]

get a new hobby

[Magic Laudrup 11]

get a new hobby

I suggest danger wanks, starting with the chokey. If that doesn't do the trick, a plastic bag over the head

[SaTan's Evil Twin]

I suggest danger wanks, starting with the chokey. If that doesn't do the trick, a plastic bag over the head

Tried all that. I'm going for the ultimate Gary Speed at the weekend. I reckon when I kick the chair away I'll have about 60-70 seconds to bang out the best ever ejaculation before death kicks in.

I'll tell you about it on Monday

[Magic Laudrup 11]

Tried all that. I'm going for the ultimate Gary Speed at the weekend. I reckon when I kick the chair away I'll have about 60-70 seconds to bang out the best ever ejaculation before death kicks in.

I'll tell you about it on Monday

60-70 seconds? No chance!!

Way to do it is sit in a chair with rope around the neck and tied to an open door (make sure nobody else is in the house). When you are reaching your violent vinegars, slam the door shut. Sudden chokeyness will give the best results (apparently).

Last tip, make sure Noel Edmonds isn't creeping about anywhere.

[anportmorbhoy]

60-70 seconds? No chance!!

Way to do it is sit in a chair with rope around the neck and tied to an open door (make sure nobody else is in the house). When you are reaching your violent vinegars, slam the door shut. Sudden chokeyness will give the best results (apparently).

Last tip, make sure Noel Edmonds isn't creeping about anywhere.

Aye right ye dirty **** - you try this regularly dont you???

[RebelBhoy]

Liquidation still unlikely?.... Ok.