Rangers FC lodges administration papers

The Glasgow-based club said it could be 10 days before a decision is made on whether administrators will take over.

The Scottish Premier League champions lodged legal papers signalling its intention to enter administration with the Court of Session in Edinburgh on Monday.

If Rangers does go into administration, the club will incur a 10-point deduction and a transfer embargo, said a Scottish Premier League spokesman, which would significantly reduce its chances of winning the Scottish league.

The move comes as Rangers is expecting a verdict by a tax tribunal over a disputed bill worth £49m.

In a statement released on Monday, the club said the HMRC bill it faces could be “substantially more than the £50m reported” which the club would be “unable to pay”.

The HM Revenue and Customs case centres around the tax on employee benefits trusts (EBTs) for players and staff.

Craig Whyte, who bought the club from Sir David Murray last May said that losing the tax case could result in the club going into administration.

Earlier this month, Mr Whyte admitted Rangers could be about to face the “toughest few weeks” in the club’s history.

A ‘harsh reality’

Mr Whyte said on Monday the situation was “extremely disappointing” but that the decision to lodge administration papers was part of a long-term survival strategy.

“The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago.

Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen. Craig Whyte, Rangers owner

“If we do not take action now the consequences and the risks to the club are too great,” he added.

He said that the HMRC had made it clear they would launch appeal after appeal if the club was successful in the forthcoming tax tribunal decision.

“This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC,” he said. “Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.”

Demand for transparency

Last week, former Rangers chairman Alastair Johnston said that he had asked the government to clarify “certain financial arrangements” relating to Mr Whyte’s takeover of the club.

Mr Whyte previously said he secured funds of £20m in advance from the company Ticketus in a deal over future season ticket sales.

“Rangers’ stakeholders are now demanding full transparency,” said Mr Johnston.

“I have had numerous approaches following the recent revelations in the press about the acquisition of Rangers Football Club and the use of future season ticket money,” he added.

“I believe this is a prevalent view amongst Rangers’ stakeholders who are now demanding full transparency about the funding of the acquisition of the club, its current financial status, and most importantly, the way forward.”