Rangers administrators strike wage deal
Wage cuts of up to 75 per cent have been negotiated with Rangers players which will help to allow the Scottish club to fulfill this season’s remaining fixtures.
Rangers players and administrators have reached a wage-reduction deal that will prevent significant redundancies. It is understood that Scotland pair Steven Whittaker and Steven Naismith have both signed an agreement to accept 75 per cent wage cuts.
Like the rest of the squad, they had agreed in principle to the wage cuts but wanted guarantees that their sacrifices would ensure there would be no job losses among the entire workforce.
Meanwhile, Rangers administrator Paul Clark said there are some prospective buyers lining up. Clark told BBC Scotland: “We’ve got several parties who appear to be asking all the right questions and we are looking for them to move forward to make some bids to us, we hope at some point next week.”
Unfit
The actions and motives of Rangers owner Craig Whyte have come under serious scrutiny and it has been unclear what rights he has as a creditor and what claim he may have over the assets including the iconic Ibrox stadium and club training facility.
Whyte bought his stake for £1 in return for pledges to pay off the £18m bank debt and invest his own money which was £9.5m initially. But Lloyds were paid with money secured on the back of future season ticket sales.
More on the Rangers story: read Alex Thomson’s blog “Scottish football fans contemplate a future without Rangers“
Administrator Paul Clark said: “There is a security that remains on the public record in favour of Craig Whyte. My view is that security has no value.
“There’s no obvious signs, or information, or clarification we’ve seen that would suggest he’s actually paid any personal money into Rangers Football Club, and therefore I don’t see at the moment that he has secured creditor status.”
On Thursday Whyte was declared unfit to operate a football club by the Scottish Football Association.
Tax woes
Rangers’ problems stem from two ongoing investigations into the club’s tax affairs. One probe relates to payments to players via an offshore trust dating from 1999-2003. Previously, a decision was made to remunerate Rangers first-team players via financial vehicles known as Employee Benefit Trusts (EBTs), which HMRC is now investigating. In total, if the club is found to have dodged tax, it could face a bill of up to £75m.
In January 2012, the club’s shares were suspended from the stock market when it emerged Rangers submitted unaudited accounts. Later that month, Craig Whyte admits using three years’ worth of future season ticket sales to secure funds but denies using the money to fund his takeover.
Most recently on 13 February the club announced its intention to go into administration. The following day, Valentines Day, Rangers was deducted 10 points which left them 14 points behind arch rivals and league leaders Celtic.
Adding comparative chicken feed amounts to its mounting financial woes, Rangers is fined £50,000 for failing to disclose Craig Whyte had previously been disqualified as a director.