Rangers to go into Administration

[SJN-Fox]

Papers lodged according to the Beeb ...

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17015966

 

[FryattFox]

It'll be a tight run race for the title now...

 

[East Anglia Fox]

What is ridiculous about this is that, if they were deducted 10 points, they would still stand a good chance of finishing second. Motherwell or Hearts would still have to have a run of wins on a scale neither club has achieved so far this season in order to possibly overtake Rangers. The SPL must be the most uncompetitive league in Europe.

 

[MerseyFox]

Hmm this stinks of a pre-packed deal. They owe HMRC alot of money which they will try and clear in administration. Come out of the other end with minimal debts. Very popular with business at present.

 

[M17TT C]

Isn't that what happened about 10yrs ago like when we went into admin? I though HMRC still demand full payment even upon administration as they are always classed as the main creditor though I could be miles off!!

Oh well, least its on Rangers!!

 

[Jeff]

Isn't that what happened about 10yrs ago like when we went into admin? I though HMRC still demand full payment even upon administration as they are always classed as the main creditor though I could be miles off!!

We paid HMRC something like 10% of what was owed.

I think the rules have changed since then so clubs can't get away with paying such a small amount.

 

[M17TT C]

Yeah I'm sure they are now always classed as the main creditor for any football club and always have to be paid back in full now as too many clubs like us shafted HMRC as well as other business though I believe it is just HMRC who have the full(ish) protection.

I'm off for a Google anyway!!

EDIT - My bad, it seems that this is the rule HMRC want to push through or at least a change to stop the players salaries being the priority.

 

[Jeff]

Yeah I'm sure they are now always classed as the main creditor for any football club and always have to be paid back in full now as too many clubs like us shafted HMRC as well as other business though I believe it is just HMRC who have the full(ish) protection.

I'm off for a Google anyway!!

When we came out of administration the bulk of the debt was (or is being) paid back in full. It was mainly the stadium loan, the players' contracts and football related debts such as transfer fees owed. Other creditors that got everything (although there was no legal obligation to do so) included ticket holders and people who had booked xmas parties etc.
The people who were shafted were mainly local businesses and the stadium builders who were owed some money that wasn't part of the stadium loan.

 

[Graz]

Yeah I'm sure they are now always classed as the main creditor for any football club and always have to be paid back in full now as too many clubs like us shafted HMRC as well as other business though I believe it is just HMRC who have the full(ish) protection.

I'm off for a Google anyway!!

EDIT - My bad, it seems that this is the rule HMRC want to push through or at least a change to stop the players salaries being the priority.

I think the rule is (or maybe was) that all footballing debts take priority. Which is ridiculous really.

 

[Jeff]

I think the rule is (or maybe was) that all footballing debts take priority. Which is ridiculous really.

Legally there's nothing to say that football debts take priority.

But the Football League won't let clubs keep their place in the league unless football debts are paid.

 

[Siouxsie]

yup - HMRC (or Inland Rev as was) stopped being classed as a preferential creditor about a decade ago and have been very upset about it ever since. Towards the end of last year they took the football league's practice of insisting that footballing creditors had preference to court for a ruling on whether it was lawful but I haven't heard the outcome yet. I may have missed it.

I don't know if the Scottish clubs come under the same rules for insolvency.

 

[MerseyFox]

It will also depend on the structure of the company that owes Rangers. They maybe able to declare the current company insolvent and take over the assets for a nominal amount. Rangers may owe HMRC up to 78 milion!!!!

 

[Darth Vodka]

it's fairly ridiculous

they'll come out of it by March and still play in the Europa League

 

[MerseyFox]

sorry that should be - owns Rangers

 

[Graz]

HMRC have asked for Rangers to be placed in administration. http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17026172

Sounds like it would put HMRC in charge of proceedings, rather than Rangers' way which would've protected them from creditors.

Glad to see HMRC getting tougher.

 

[SJN-Fox]

Rangers have until 3-30 this afternoon to appoint an administrator. ...

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17026172

 

[Rich B]

Already in admin, take the hit and stay in second place.

 

[Mattmeister]

So Craig Whyte's cunning plan has backfired spectacularly.

 

[doolochfox]

So Craig Whyte's cunning plan has backfired spectacularly.

Unlikely, it appears that the administrators are of Rangers choosing, and this has been planned for quite awhile. If they pay HMRC anything less than £75m then he's a winner. A hard line by the HMRC may send a message to other clubs though. Forfeiting 10p in the £ could be considered great advertising.

 

[jb5000]

So Craig Whyte's cunning plan has backfired spectacularly.

I think this may well be part of Craig Whyte's cunning plan. As it stands, HMRC will probably settle for something rather than nothing and leave him with a blank slate to build on. In fairness, it does seem that all of this can be laid at the door of the last owner and to stretch back to spending in the 90s.