What next for Rangers players, fans and creditors

Published on Tuesday 14 February 2012 00:00

The answers to the pressing questions

What will happen if Rangers go into administration?

It is likely Craig Whyte will take full control of the assets in lieu of the debts he’s owed, which will enable him to set up a new company holding the Rangers brand, team and stadium.

What will happen to the players?

They are listed as employees, therefore their contracts would remain intact. But if they can be sold on, they will count as part of the club’s assets. In the wake of administration, the club may not be able to cover the payroll and this will mean some players would be made redundant, or sold to raise funds.

What difference will the fans see?

Fans will smart at the automatic deduction of ten league points for going into administration, but will not see any visible difference on the pitch, other than a thinning of the pool of available players and the attendant loss in performance. Also, if they do not come out of administration by March, then Rangers will not be able to get the proper licensing needed to play European football this year, hitting their revenue further.

What will happen to other creditors?

They have to wait in line, as the administrator gives priority to paying off the secured creditor’s debt, and unsecured creditors are then awarded a share of whatever else can be realised from the assets, proportionate to their share of the total unsecured debt. This includes HM Revenue and Customs.