Rangers FC go into administration
As Rangers are forced to appoint administrators historian Tom Devine tells Channel 4 News that fans will be devastated and that the knighthood of Rangers’ “saviour” Sir David Murray may be questioned.
The Glasgow-based club had been given until 3.30pm today to appoint an administrator after a legal debate at the court of session in Edinburgh.
The club’s administrators will be Duff & Phelps, the court was told.
The Scottish Premier League automatically deducts ten points and imposes a player transfer freeze is a club goes into administration, dashing Rangers’ chances of winning the league and confirming bitter rivals, Celtic, of first position.
Scottish historian Tom Devine, who has researched the history of the ‘Old Firm’ – Rangers and Celtic – told Channel 4 News that it is “inevitable and predictable” that the knighthood given to former club owner, Sir David Murray, will be questioned.
“After the disorientation that the supporters felt yesterday and today, the next stage will be rage and anger, and I think he will be at least one of the two personalities who are going to be attacked systematically over the next few days,” he said.
Rangers had lodged administration papers on Monday and said a final decision would be made within 10 days.
There are many communities in Scotland – not just in Glasgow – who define their identity to some degree, almost in terms of Glasgow Rangers and they must be in a state of complete apoplexy today and disorientation as to what has happened. Tom Devine, Scottish sports historian
But it emerged that the HMRC lodged a court petition soon after, to allow it to appoint its own administrator. Its bid was denied, but the action forced the takeover by an administrator to be made sooner than expected.
Concern over day-to-day costs
Following the appointment, Strathclyde Police said it was seeking urgent talks with the administrators to discuss the club’s ability to pay for officers at future matches – including a Rangers game this Saturday against Kilmarnock.
“Until we have such a guarantee [of payment] we would not be in a position to commit public resources to policing an event unless we had a reassurance that our costs would be met,” said a spokesman.
Mr Devine told Channel 4 News that Rangers is a Scottish institution and the club’s situation is “much more significant and deeper than a sporting event”.
“There are many communities in Scotland – not just in Glasgow – who define their identity to some degree, almost in terms of Glasgow Rangers and they must be in a state of complete apoplexy today and disorientation as to what has happened,” he said.
Judge Lord Menzies gave Rangers until 3.30pm on Tuesday to appoint an administrator – otherwise the HMRC’s bid for a court-appointed administrator would have been upheld.
The Scottish Premier League champion club is locked in a £49m tax dispute with the HMRC over the payment of Employment Benefit Trusts (EBTs) to staff and players over 10 years.
The HMRC alleges that the lbrox club avoided paying tax through its running of the scheme. Rangers dispute the claims.
Duff & Phelps appointed
Speaking after the proceedings at the court of session, Rangers’ counsel, Roderick Dunlop QC, said: “It was agreed that HMRC would withdraw their petition and Duff & Phelps would be appointed as administrators.”
He also confirmed that Rangers FC has accepted liability for the expenses incurred by the HMRC in drawing up the petition.
HMRC’s legal representative, David Thomson, said there was no “unseemly rush” between the club and the tax body about getting petitions in first.
A spokesman for HMRC said: “We can’t discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios must be paid over to HMRC.
“Any business that fails to meet that basic legal requirement puts the survival of the business at risk.”
Demand for ‘transparency’
Craig Whyte took over the club from Sir David Murray last May. He secured funds of £20m from the company Ticketus through advance ticket sales.
Last week, former Rangers chairman Alastair Johnston said that the club’s shareholders were demanding “full transparency” about funding and its financial status.
The Scottish parliament’s sports minister, Shona Robinson, said the situation was “concerning”.
“Football is our national game and it is now for the administrators to take forward the process of assessing the business and securing an outcome in the best interests of the club, its staff, supporters and the game of football as a whole in Scotland,” she said.