General
Tuesday, 14 February 2012 18:25
By a Newsnet reporter
Scotland’s Deputy First Minister Nicola Sturgeon has described as “an anxious time” the news that Glasgow Rangers have entered into administration.
Ms Sturgeon, who is the constituency MSP for the area that includes Ibrox stadium, voiced her concern after news broke this afternoon that administers firm Duff and Phelps had been appointed by the struggling club.
In a statement released this evening Ms Sturgeon said: “In addition to its position in Scottish football, Rangers is also a big employer in my constituency.
“This is an anxious time for everyone associated with Rangers and for all those whose jobs depend on the Club. Now that an administrator has been appointed, I very much hope that a way forward can be found that allows Rangers to meet its obligations, continue in business, and save jobs.”
A meeting is reported to be planned this evening where staff are expected to be told what the immediate future holds for them. The club employs around 250 staff directly and there are other businesses which will be affected by today’s decision.
The Ibrox club had lodged papers yesterday giving notice of their intention to start the administration process, from that moment they had ten days in which to appoint administrators.
It was expected that the club would try to use the ten day period in order to negotiate with HMRC in a bid at reaching some sort of agreement over an estimated £50 – 75 million disputed tax bill.
However HMRC today attempted to seize the initiative by appointing its own administrator. The Ibrox club immediately short circuited this move by appointing their own administrators, London based firm Duff and Phelps.
The firm will now take over the daily running of the Ibrox club.
Rangers will now be deducted an automatic 10 points from their SPL league total and cannot register new players. If the club has not resolved the situation by the end of March then they will not be able to take part in European football competitions.
Strathclyde police are also seeking an urgent meeting with the administrators to seek confirmation that they will receive payment for policing football matches.
The club’s plight stems from a system called Employee Benefits Trusts (EBTs) introduced when Sir David Murray headed the club. EBT’s are typically used in order to minimise income tax payments and National Insurance contributions by paying wages in the form of ‘loans’.
With EBTs, an employer pays money into a trust, usually held in an offshore tax haven, and that money is paid out by the trustee to the beneficiaries in the form of loans. These loans are not subject to income tax or National Insurance.
Crucially, these ‘loans’ cannot be made on a contractual regular basis as that would effectively make them wages, so one would expect the trustee to occasionally refuse to pay a loan.
HMRC believes the system used by Rangers to pay its staff over a ten year period was little more than a tax scam and the Ibrox club owes at least £50 million.
Sport Minister Shona Robison has said that the club’s current plight was “a concerning situation for everyone involved in Scottish football”.
She added: “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.”
It has also emerged that investment high-flyer Paul Murray was looking into the possibility of buying the club from current owner Craig White. Former Rangers Director Murray – who tried and failed in an £18m bid for control with Dave King back in 2009 – confirmed his intention this evening on Radio Scotland.
Comments
2012-02-14 18:58
2012-02-14 19:04
2012-02-14 19:17
2012-02-14 21:01
2012-02-14 22:09
One could take the view that it has all been pre-planned since the day he took over.
The London-based Administrators were in Ibrox holding a press conference within minutes of being appointed. As far as I know, Rangers FC assets do not include a Tardis.
2012-02-15 21:13
2012-02-14 19:54
Well if I was a Rangers fan what better way of getting your revenge on HMRC than by putting THEM out of business by supporting an independent Scotland. If the Rangers fans swing in behind Alex its a done deal.
2012-02-14 20:02
2012-02-14 20:23
Those individuals and companies who utilise these practices mean that either tax payers have to pay more for public services,or cuts have to be made in the level provided or both.
I have great sympathy for tax payers who are going to be directly affected by this but have little time for those who have benefited from a corrupt system designed to serve the wealthy at the expense of others.
2012-02-14 20:28
2012-02-14 20:34
2012-02-14 20:39
2012-02-14 20:42
2012-02-14 21:54
Daft remarks about “blind loyalty to the Queen” and “she wants her money back” contribute nothing sensible to the discussion. Businesses, and football clubs are businesses not clubs, are due to pay their taxes, whatever their fans loyalties. There would be something far wrong were it otherwise.
2012-02-14 20:46
2012-02-14 21:50
2012-02-14 21:59
2012-02-14 20:54
2012-02-14 21:23
Yes undoubtedly, we all share sympathy for the innocent victims who might lose their jobs, but if it is proven that Rangers FC acted illegally, then I believe they should be provided with no favours.
Rangers however may be found completely innocent of any deception…. its not looking too great for them at the moment though!
Ps. Are they going to strip Sir David Murray of his Knighthood?
2012-02-14 21:39
If the HMRC case is upheld and even if Rangers FC manage to wangle out of the situation, we are still talking about serious tax fraud
We could be talking about a genuine belief that the tax affairs were legitimate, rather than a deliberate fraud. In fact, we could still be talking about genuinely legitimate tax affairs.
2012-02-14 21:45
2012-02-14 21:58
It’s always be known that this bill was coming and would have to be paid.
2012-02-14 21:45
2012-02-14 22:09
2012-02-14 22:11
2012-02-14 22:38
2012-02-15 00:29
2012-02-14 22:34
Whilst all talk is directed at oil, the new ‘liquid gold’ will be water and Scotland has copious amounts of it.
dailymail.co.uk/…/…
“ Britain is facing a severe drought this summer after the driest winter on record, experts have warned.
Without heavy rainfall in the immediate future, extreme water shortages could hit many parts of the country – causing parched landscapes, rivers drying up and hosepipe bans in the summer.
Such conditions would have a huge knock-on effect for farmers, food production, tourism and local wildlife. “
The map denoting the areas that are affected is notable. Whereas Scotland is coloured blue the rest are shades of brown.
Maybe after the RUK set up their border a couple of water stand-pipes could be set up at ‘Checkpoint Cammy’ to meet humanitarian requirements.
2012-02-14 23:01
2012-02-15 00:46
This is no joking matter!
The Daily Wail is well behind the times with this report. We in Berkshire have known about the drought problems for some years. As an angler, it has been evident to me from
– increased fungal infections of fish
– unheard of “shoaling” of mixed fish species in tributary streams such as mill races and flooded ditches
– silting up of crayfish beds
– aggressive behaviour by (invasive and nasty) mink
– discovery of dead (starved?) kingfishers
– etc.
Look at the picture of the River Kennett in the Mail report. It is tragic. Some years ago, it was hoped that salmon would return to this river. Indeed, one or two had been caught and released.
It is not appropriate to try to make political points about this serious situation. It only affects the ordinary people of my area, not the politicians in Westminster.
Sorry for the rant,
Don (SNP member)
2012-02-15 23:23
It is not appropriate to try to make political points about this serious situation. It only affects the ordinary people of my area, not the politicians in Westminster.
Sorry for the rant,
Don (SNP member)
Don – quite right and it is something to think of regarding future water supplies to the rest of the UK from Scotland (and the cash accruing). Perhaps linking supply routes to leisure? Worth an article Ed?
2012-02-14 22:47
2012-02-14 22:55
2012-02-14 23:10
2012-02-14 23:25
2012-02-14 23:34
and South.
2012-02-15 00:24
2012-02-15 01:19
You’re absolutely correct, except that, as usual, it’s the ordinary employee, the secretary, cleaner, office boy, etc. who will be the ones who end up kicked out onto the street. The real crooks, the management and the players will be able to move on to just as remunerative jobs as they have now. Why do the SFA/SPL rules protect the players “wages” above all other creditors when they are as guilty as the management in the tax fiddle?
See here and click around what HMRC are trying to do to protect us ordinary taxpayers from these shysters –
hmrc.gov.uk/…/…
Apparently RFC were not paying their players any wages but giving them “loans” instead. These “loans” were paid overseas of course. The number one indicator of a tax fiddle, which HMRC makes clear, is –
“Transactions or arrangements which have little or no economic substance or which have tax consequences not commensurate with the change in a taxpayer’s (or group of related taxpayers’) economic position.”
Exactly what they were doing.
2012-02-15 13:00
2012-02-14 23:11
2012-02-15 09:21
2012-02-14 23:23
Well I never.
telegraph.co.uk/…/…
“ The Chancellor compared the broadcaster [BBC] to the women who used to gather to watch the execution of aristocrats during the French Revolution.
The accusation came during an interview on BBC Radio Four’s Today programme after Britain was warned that its credit rating may be downgraded. “
I wonder if there will be a big a hooray Henry over this as there was over the ‘Gauleiter’ episode. But whilst waiting I will not hold my breath.
2012-02-14 23:44
2012-02-14 23:49
2012-02-14 23:56
2012-02-16 09:15
The unionist football team are being found out for cheating. Just like the unionist politicians.
I agree … Similarities are startling…
2012-02-15 00:28
Its nothing more than thieving off the country.
The country’s money is our money. They were thieving off us. And ‘us’ includes Rangers supporters. Basically, a bunch of over-paid ‘sportsmen’ were pissing all over the people who cheered them on and paid their wages. But they’ll be the ones who easily find other jobs if Rangers go under. It’s the underpaid backroom staff, who paid their taxes, who’ll end up unemployed…and we’ll be paying their benefits.
2012-02-15 01:27
My main problem is that my team are trying to challenge Rangers in cup and league competitions but on an uneven playing field. While they don’t pay their taxes and NI they can then invest in better players and stop us from progressing fairly. Because of their successes due to their dubious practices they get into Europe and on TV more therefore fueling more funding for better players than we can afford.
It is time for their previous successes to be cancelled and all success funding from the SPL to be returned?
They should also be relegated as a consequence. How are Dunfermline players and owners going to view this, (and Falkirk and Hamilton from previous years). A team has been kept at the top of the league through dubious concerns while they look likely to be relegated at the present moment due to good management of their finances. How do the owners of the many clubs who were relegated or did not get promotion because they had to get work done to the stadium feel?
My hope is for liquidation, and instead of previous directors buying the club back, Falkirk, Dundee and Dunfermline go into an auction for the remains with the winner gaining Rangers place in the top league.
2012-02-15 01:31
To be fair only about 9% of the tax is our money, the rest being expatriated to a tax haven somewhere down in Middlesex.
If the difference between what we paid in tax and what we get back in expenditure was 91% as you suggest, then there’d be a revolution not a referendum.
2012-02-15 00:31
rangerstaxcase.com/
Very informative.
2012-02-15 03:03
At the end of the day they are Scots and Glasgow Scots at that. Good luck Rangers, I’m sure you’ll come through this eventually, stronger and wiser.
Look at Motherwell, similar situation a few years ago, now 3rd in the League.
VOTE YES.
2012-02-15 16:45
Good to see Nicola in there offering Rangers all the help she can muster despite them being bastions of unionism.
At the end of the day they are Scots and Glasgow Scots at that. Good luck Rangers, I’m sure you’ll come through this eventually, stronger and wiser.
Look at Motherwell, similar situation a few years ago, now 3rd in the League.
VOTE YES.
Didn’t they pull that stunt twice. 3rd in the league, and screw the suppliers.
2012-02-16 10:10
Good to see Nicola in there offering Rangers all the help she can muster despite them being bastions of unionism.
At the end of the day they are Scots and Glasgow Scots at that. Good luck Rangers, I’m sure you’ll come through this eventually, stronger and wiser.
Look at Motherwell, similar situation a few years ago, now 3rd in the League.
VOTE YES.
The wagons are circling… Yes look at Motherwell. Aye and Airdrie and Dundee and Clydebank tae and any other that I have missed aff the tap o’ ma heid…
“We cannot do without them” .. Surely any cheating lies and deceit corruption from any area in life cannot be manipulated by unionism to succeed. In so-called sport or politics and then free from financial obligations
Rules cannot be changed to suit a club who we now know to have spent dosh in a big way . DOSH they laundered through Murray Sport, MIH and anyway possible for success more recently..
It wasn’t even neccessary in Scotland as all our clubs were struggling financially since the early 1990’s
I don’t need to mention all the clubs concerned due to the fact every poster just has to look at the SPL and the 3 divisions to get all the names.. Everyone of them has suffered whilst the so-call richest club in Scotland cheated off the park to win championahips and cups and guess what? Every move being made by them now is to evade paying out to everyone they owe money to.. Forget the tax man for a moment..
They have entered into deals for away tickets for games against Dundee U, Dunfermline and at this time of writing have pocketed thousands in cash.
Money owed to Hearts with 2 further instalment still to be payed for a player.. Money owed to Dundee U in similar circumstances ..Who the hell do they still owe? ..
Rangers chopped 10 points due to administration may only be the start as they wriggle and cheat their way trying to escape debts of near £75m at time of writing ..
Sir murrayunminted is up to his neck in this procedure Whyte has entered into hoping to legally cheat by using laws that seem to have gaping holes.
Is it possible they actually think we as a people are all stupid?
Murray and Whyte when discussing the takeover for £1 quite obviously decided the way out was going down the road Newco Rangers decided earlier this week.
Any sympathies I have is with the previous clubs and their supporters who entered administration not this club Rangers who spent money that was manipulated through MIH and Murray.
Sir D Murray could be compared with BOOM and BUST chancellor and EX-pm Brown .
I could go on but will end by saying what rules were used against other clubs have to be aderred to straight down the line..
Aye the wagons are circling.
I did say on another thread (Shona Robertson?) SNP Government keep out getting involved with this club after saying not a tweety bird in favour of others is wrong.. DAMB WRONG .
Whether in power or not. full-stop fellow citizens.
Yes .. VOTE YES Independance..
Involving ourselves in issues like Rangers is of no help to get that YES vote over the finishing line
2012-02-15 04:05
New tax attack on crisis-hit Rangers
scottishdailyexpress.co.uk/…/…
“ But HMRC officials later revealed the case related to PAYE contributions and VAT collected by Rangers and not passed on to the tax man.
It emerged £9million had been left unpaid over the nine-month period since Mr Whyte, who was last night seen at Glasgow Airport, bought the 140-year-old club for £1. “
2012-02-15 18:25
Ps if it gets paid in the first place.
2012-02-15 20:26
The Sun and BBC Scotland: two widely differing views on the same subject.
tinyurl.com/6r44sov
tinyurl.com/6u44mm4
2012-02-15 20:41
2012-02-16 17:07
Not sure what Jesus has to do with your comment? Would you refer to other faith leaders with such disregard?
Either way the whole football “Hierarchy” are run by grey suits and ego’s be it the Scottish League, SFA, UEFA, FIFA.
Questions’s need to be raised re the role of the London based Administrator’s. Should Rangers be liquidated what fees do they get over creditors (the small businessman and women)? What is their relationship with Mr Whyte? (Former business partners I believe so how can they be independent?) Hope parliamentary questions are asked.
No more deferring payment of Tax—all football companies, charities etc shold pay tax as PAYE as a matter of course.
2012-02-17 13:37
From Aberdeen forum – seems to mirror many’s views. Comments?
Letter to Shona Robison Copied to Alex Salmond –
Dear Ms Robison,
I was shocked and dismayed to learn that you, as Scottish Sports Minister, are meeting with the administrators who have been engaged in the case of Glasgow Rangers FC.
It is the opinion of many, including myself, that it is, at present, extremely foolish for any politician to become involved in this issue until more facts are at hand.
2012-02-17 13:38
It is alleged that Glasgow Rangers, and/or certain directors, have deliberately and knowingly committed the criminal offence of tax evasion over a number of years. Should this be proven to be the case, then Glasgow Rangers are guilty of grand larceny from HMRC.
Or, in other words, Rangers have been stealing money from pensioners, children, the disabled, the unemployed, the NHS, schools, and, every honest taxpayer in the country, in an attempt to forward their own, selfish, ambitions.
If Rangers are proven to be guilty of this offence, then, every politician who is currently attempting to defend them is, by association, condoning this kind of illegal activity. Is this the image you wish to portray?
Let us forget for a moment that the organisation in question is Glasgow Rangers FC.
Supposing some other organisation, based in Glasgow, was to stand accused of defrauding HMRC, and, by definition, the public of this kind of sum. Would you be so keen to rush to their defence? I would hope that the answer in this case would be a resounding “no”. Why then defend Rangers?
I have sympathy for some Ibrox employees, such as ground staff, caterers and office workers, etc. who may lose their jobs. The players and coaching staff have been well paid, should be quite capable of looking after themselves, and many will quickly find new clubs. The junior players and trainees will also find new clubs, or, if they cannot make the grade elsewhere, then it is unlikely that they would have done so at Ibrox in any case.
It is also disappointing to hear so many high profile persons regularly quoting the lie that “..Scottish football needs a strong Rangers..”
Scottish football does not “need” a strong Rangers.
What Scottish football needs is more equitable distribution of wealth, especially of income from external sources, which would provide a more even playing field. With six, eight or even ten teams capable of challenging for the league title every season the product would be more attractive, overall standards would rise, more supporters would attend, and the game would be likely to attract increased outside investment.
The quickest, and surest way for this to happen would be for Glasgow Rangers, in their current format, to cease to exist in the Scottish Premier League. Scottish football does not need Rangers; it would quite certainly be better off without Rangers.
There is a growing opinion amongst supporters of all other clubs that Rangers must be punished severely for their actions, especially if found guilty of tax evasion. The deduction of 10 points this season is entirely meaningless, given their current league position.
Should the current Rangers go into liquidation, then it is also strongly felt that any “phoenix club” rising from the ashes must not receive direct membership into the SPL.
Any other action that is given your blessing would result in the opinion that cheats and thieves are encouraged to thrive under your Government’s administration. Is this really how you want to be perceived?
Let us not forget what Glasgow Rangers and their supporters stand for either. This is an organisation that, for well over one hundred years, actively promoted a discriminatory recruitment policy, which thankfully would now be illegal.
The club, and its supporters are also forcefully vociferous in their support of the union, an issue that is in direct opposition to rationale on which the Scottish National Party was founded.
The behaviour of this club’s supporters has frequently embarrassed Scotland both at home, and in other countries. I am sure you remember the chaos and destruction caused by Rangers supporters in Manchester in 2008. Recently, and closer to home, the Scottish parliament has had to implement laws to tackle sectarian abuse associated with football. This was due almost exclusively to supporters of Rangers, and one other certain club. I am sure that the time and expense of this action in parliament could have been better spent on other issues more important to the majority of our population.
The groundswell of supporters’ opinion is most vehemently opposed to Rangers at this time. I would suggest that you and your colleagues take note of this. Football is important to a lot of people in Scotland, the majority of whom are voters. Please remember this, and take a more circumspect, neutral view when addressing this matter.
Thank you for taking the time to read this letter,
2012-02-17 21:01