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| Version 8 | Version 9 |
|---|---|
| Rangers Football Club enters administration | Rangers Football Club enters administration |
| (40 minutes later) | |
| Rangers Football Club has entered administration - meaning it has been docked 10 points, effectively ending its Scottish Premier League challenge. | Rangers Football Club has entered administration - meaning it has been docked 10 points, effectively ending its Scottish Premier League challenge. |
| The club appointed London firm Duff and Phelps as administrators at 14:50. | The club appointed London firm Duff and Phelps as administrators at 14:50. |
| The move followed an unsuccessful legal bid by HM Revenue and Customs (HMRC) at the Court of Session in Edinburgh to appoint its own administrator. | The move followed an unsuccessful legal bid by HM Revenue and Customs (HMRC) at the Court of Session in Edinburgh to appoint its own administrator. |
| HMRC lodged its petition over alleged non-payment of about £9m in PAYE and VAT following Craig Whyte's takeover. | |
| Mt Whyte confirmed on Monday that the club had filed legal papers to appoint administrators. | |
| Joint administrators | Joint administrators |
| It was initially thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action on Tuesday changed the dynamic of the situation. | It was initially thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action on Tuesday changed the dynamic of the situation. |
| Paul Clark and David Whitehouse from Duff and Phelps were later appointed as joint administrators and take over the day-to-day running of Rangers while addressing its massive debt problems. | Paul Clark and David Whitehouse from Duff and Phelps were later appointed as joint administrators and take over the day-to-day running of Rangers while addressing its massive debt problems. |
| Mr Clark said: "HMRC have been working closely with the club in recent months to achieve a solution to the club's difficulties. However, this has not been possible due to ongoing losses and increased tax liabilities that cannot be sustained. | Mr Clark said: "HMRC have been working closely with the club in recent months to achieve a solution to the club's difficulties. However, this has not been possible due to ongoing losses and increased tax liabilities that cannot be sustained. |
| "We are working together with management and its major creditors, including HMRC, to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned. | "We are working together with management and its major creditors, including HMRC, to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned. |
| "We would like to take the opportunity of thanking the fans for all their past and present support and hope we can rely on them in the future. | "We would like to take the opportunity of thanking the fans for all their past and present support and hope we can rely on them in the future. |
| "Rangers has a long and proud sporting tradition - one we all wish to see continue. All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution." | "Rangers has a long and proud sporting tradition - one we all wish to see continue. All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution." |
| Following Tuesday morning's legal case, 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. | Following Tuesday morning's legal case, 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." | "Any business that fails to meet that basic legal requirement puts the survival of the business at risk." |
| Former Rangers owner Sir David Murray said he was "hugely disappointed" at the club's decision to appoint administrators and expressed surprise at the timing of the decision. | Former Rangers owner Sir David Murray said he was "hugely disappointed" at the club's decision to appoint administrators and expressed surprise at the timing of the decision. |
| Sport Minister Shona Robison said Rangers' current plight was "a concerning situation for everyone involved in Scottish football". | Sport Minister Shona Robison said Rangers' current plight was "a concerning situation for everyone involved in Scottish football". |
| She said: "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: "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." |
| Financial storm | Financial storm |
| Meanwhile, Strathclyde Police said it had now resolved issues over payment for policing which may have affected Rangers home game against Kilmarnock on Saturday. | |
| A force statement said: "We have had a positive meeting with the administrators and received assurances about payment for the provision of police services at this weekend's match. | |
| "We are working with the club and planning for the game as normal." | |
| The financial storm engulfing Rangers has several fronts. | The financial storm engulfing Rangers has several fronts. |
| Mr Whyte has acknowledged that the club has a £10m deficit in annual running costs. | Mr Whyte has acknowledged that the club has a £10m deficit in annual running costs. |
| It was reported last week that the chairman had also borrowed up to £24m against four years of future season ticket revenue from Ticketus. | It was reported last week that the chairman had also borrowed up to £24m against four years of future season ticket revenue from Ticketus. |
| Most serious of all, Rangers awaits a tax tribunal decision over a disputed bill, plus penalties, totalling £49m. | Most serious of all, Rangers awaits a tax tribunal decision over a disputed bill, plus penalties, totalling £49m. |
| Mr Whyte was reported on Monday as saying this potential liability to HMRC could reach up to £75m if the club lost the tribunal. | Mr Whyte was reported on Monday as saying this potential liability to HMRC could reach up to £75m if the club lost the tribunal. |
| HMRC believes the Ibrox club owes cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period. | HMRC believes the Ibrox club owes cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period. |
| It alleges the Ibrox club did not administer the scheme properly and underpaid tax. | It alleges the Ibrox club did not administer the scheme properly and underpaid tax. |
| Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks. | Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks. |
| After the club signalled its intention to go into administration on Monday, Mr Whyte said the best outcome would be to reach a creditors agreement which would allow the club to continue trading. | After the club signalled its intention to go into administration on Monday, Mr Whyte said the best outcome would be to reach a creditors agreement which would allow the club to continue trading. |
| Secured creditor | Secured creditor |
| Mr Whyte is believed to be a secured creditor of Rangers and would have to be paid first ahead of others such as HMRC. | Mr Whyte is believed to be a secured creditor of Rangers and would have to be paid first ahead of others such as HMRC. |
| However, if HMRC holds 25% or more of the club's debt it can block a creditors agreement which is necessary for Rangers to exit administration. | However, if HMRC holds 25% or more of the club's debt it can block a creditors agreement which is necessary for Rangers to exit administration. |
| If a creditors agreement cannot be reached - and if the club cannot be sold - it is possible that Rangers could be wound up. | If a creditors agreement cannot be reached - and if the club cannot be sold - it is possible that Rangers could be wound up. |
| The ramifications for the Scottish game, if this happened, would be far-reaching. | The ramifications for the Scottish game, if this happened, would be far-reaching. |
| It is likely that existing TV deals, which provide significant revenue streams for Scottish clubs, would be scaled back or in extreme cases cancelled. | It is likely that existing TV deals, which provide significant revenue streams for Scottish clubs, would be scaled back or in extreme cases cancelled. |
| The absence of Rangers fans at other grounds in Scotland would also reduce revenue to competitor clubs. | The absence of Rangers fans at other grounds in Scotland would also reduce revenue to competitor clubs. |