Rangers crisis: Craig Whyte admits using season ticket cash in takeover

Published on Tuesday 21 February 2012 17:35

RANGERS owner Craig Whyte has admitted using future season ticket sales to complete his takeover of the club, but said he is “personally on the line for £27.5 million in guarantees and cash”.

Addressing reports that he financed his takeover of the club from Sir David Murray last May by selling season ticket incomes to London firm Ticketus for money upfront, Mr Whyte said that the deal was “the best way to protect the club”.

He said: “The arrangement with Ticketus – which was a three-season deal NOT four, as has been reported – was originally to provide additional working capital as had been the case previously under the old board. My corporate advisors came to me with the proposition that it was entirely possible, as well as highly beneficial, to negotiate a deal with Ticketus that would allow us to complete the takeover and maximise working capital for the club’s day-to-day business.

“The Ticketus deal was by far the best way to protect the club given the circumstances in that they have no security over any assets. The only person at risk from the deal is me personally because I gave Ticketus personal and corporate guarantees underwriting their investment; the club and the fans are fully protected. In terms of exposure, I am personally on the line for £27.5 million in guarantees and cash.

• Craig Whyte statement in full

Administrators Duff and Phelps, who took control of the Ibrox club last week, said they are investigating the matter of the Ticketus money.

David Whitehouse, joint administrator, said: “Since being appointed administrators last week there has been widespread concern raised with us, not least by Rangers supporters and season ticket holders, about the agreement between the Club and Ticketus.

“Following information received, it is now apparent that the proceeds from the Ticketus arrangements amounted initially to a sum in the region of £20 million plus VAT. Subsequently, £18 million was transferred to the Lloyds Banking Group.

“The application of the remainder of these proceeds is subject to further examination.

“We are now investigating all the circumstances surrounding both the purchase of the majority shareholding in Rangers Football Club plc and the flow of funds which stemmed from the transaction and were intended to fulfil the purchasers’ obligations at the time of the sale.

“We cannot comment further on these matters while enquiries continue.”

Mr Whyte defended his decision to keep the details of the Ticketus arrangement private: “I regret now not making the arrangements more transparent, but at the time I regarded it as I do with all my other business dealings, as a confidential transaction. In retrospect I should have been completely open about it, but I’m not sure Ticketus would have been very happy about their confidentiality being breached.”

Mr Whyte also confirmed he will stand down as chairman when the club comes out of administration.

‘I will not continue as Rangers Chairman post-restructuring,” he said. “Regardless of administration and irrespective of the tax case, the club had serious long-term structural problems financially and they needed to be addressed with some urgency. I knew that when I stepped up to the plate and, despite the accusations and abuse that I have suffered over weeks and months, I was determined to see things through. I will admit there have been times when I have wished that I had never entertained the idea of taking over Rangers.”

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