Why Rangers Really Went Into Administration…

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With renewed rumours from a certain English journo that Rangers will be in administration again by Wednesday, I thought it prudent to dispel the myths from 2012.

Ever since Rangers went into, and
came out from, administration, my Twitter notifications have been full of SPL
fans ‘telling’ me why Rangers went into admin in the first place.
It seems the biggest experts on
Rangers’ plight are those who had no major interest in the club before that
fateful day in February over two years ago.
Since then, every ego-driven
self-publicist with an eye on extending their career and making a name for
themselves has had something to say, write, or spout regarding what ‘really
happened’ at Ibrox, as if they have a monopoly on the truth.
The most common nonsense I get
thrown at me is that Rangers went into administration due to debt. That the
club owed too much money to too many people and organisations, having spent
‘above their means’ in the 90s onwards.
It is true that Rangers spent a
lot in those days, and it is also true the club was in debt.
What is not true is that any of
this caused Rangers to be thrust into the hands of Duff & Phelps, and
anyone who would suggest otherwise has swallowed far too much media nonsense
with gusto.
First off, let me clarify a few
points:
Yes, it is true the club was in
debt, but the critical debt by the time of administration was…£6M. Not £100M.
Not even £20M. But £6M of short-term debt (caused by Walter Smith’s second
tenure during which the club spend £30M) – the rest had already been cleared –
it is slightly less known how much long-term debt the club was in, but that
does not matter. Long term debt is the stuff you get into with your energy
supplier, the stuff which is in your name but no bailiffs will storm your
property to receive it. Most business have this to their creditors, it is not
uncommon to have plenty of long-term debt.
The short-term stuff is the
important chunk, and while £6M is not ideal, it was not threatening Rangers’
future.
Secondly, the vast sums spent in
the 90s and thereafter were not outwith
Rangers’ means. Because the method used to help fund such expenditure, EBT
schemes, are completely legal, if admittedly dubious.
West Ham owner David Gold is on
record as endorsing EBT’s, and let it not be forgotten the Big Tax Case was
won. Because the law ruled the schemes to be legal – a loan, rather than tax
evasion. So, what did Rangers do wrong there, exactly?
Presumably Old Firm rivals Celtic
endorse the club’s actions given they used EBT schemes themselves? Indeed, did
they not settle an HMRC case regarding Juninho (to name but one) themselves out
of court having also been accused of evasion by the tax man?
But…this is all drifting away
from the main point. None of the above forced Rangers into administration. One
simple crime from ex-owner Craig Whyte did, and that was his deliberate failure
to forward players’ PAYE/VAT/NI payments to HMRC during his tenure.
That is illegal – all employees
have to pay their dues – and Rangers players did. But Whyte stashed it away in
his own accounts which forced HMRC’s hand.
They wanted their money, pure and
simple, over a year of illegally-retained internal payments which Whyte kept
rather than forwarding legally.
Yes. It is really that simple. That is why Rangers went into administration.
Unfortunately misinformation will
continue as too many people want to believe Rangers are the big bad guys and
deserve everything they get.
We know the truth, and I do not
expect this article to make a blind bit of difference to those who would rather
castigate the club at every opportunity.

90 COMMENTS

  1. the anguish is palpable, this thread is testament. keep up your hatred of Scotlands most successful club while part of the Emptihad is closed due to obsessed fhans, too busy reading about The Glasgow Rangers to attend their own teams matches. #FailFail

  2. Ah i see it was give liquidation the red card to the holding company! pmsl.now i ask again please quote me the exact words from regan or ogilvie that rangers are the same club….

  3. Rangers died trying to win a cup that Celtic won.now Tribute Act Fc will possibly win the Ramsden cup.a cup that Celtic will NEVER be in….Neil Francis Lennon will have seen off his patch,TWO Rangers clubs on way to the 10….HH

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