Rangers: No way out of Craig Whyte deal says David Murray

By STUART BATHGATE
Published on Wednesday 15 February 2012 00:00

FORMER Rangers owner Sir David Murray has broken his silence on the club’s predicament to deny ex-chairman Alastair Johnston’s claim that there is a mechanism for him to regain control from Craig Whyte.

Sir David made the move in a statement yesterday immediately after Whyte, to whom he sold Rangers last year, put the club into administration.

The Scottish Premier League imposed a ten-point penalty on the Ibrox club as punishment for going into administration, effectively ending the championship race by giving Celtic a 14-point lead. It marks a 29-point turnaround for Rangers in just over three months, having led Celtic by 15 points on 5 November last year.

Paul Murray, another former director of Rangers, also spoke out last night to call for everyone with the interests of the club at heart to join him in a consortium which could wrest ownership away from Whyte. Murray, no relation to Sir David, insisted that a rival proposal to Whyte which he put forward last year had now been revealed as clearly preferable for the well-being of the Scottish champions.

Sir David was reacting to a suggestion from Johnston that the sale document agreed between himself included a proviso for “rewinding the deal” if its terms were not upheld.

“Contrary to recent press speculation, there is no legal mechanism in the share purchase agreement for MIH [Murray International Holdings] to reacquire the club,” said Sir David, who acknowledged that the financial problems which have led to adminstration began during his time in charge, but insisted Whyte had been fully aware of them when he took over.

“Words cannot express how hugely disappointed I am with news of today’s appointment of administrators,” he wrote.

“In May 2011, the sale to Wavetower presented the best available path for the club’s future and was reasonable given all the circumstances existing at the time. Contrary to numerous reports, there were also no viable alternative offers made in advance of the sale. MIH is saddned by the appointment of administrators, It recognises the tax-tribunal proceedings have stemmed from arrangements put in place during the time of its ownership. However, these arrangements and detials of the proceedings were fully disclosed by the club to Wavetower and Crig Whyte in the due diligence process.”

Johnston. who described the descent into administration as the “darkest hour” in Rangers’ history, had urged Murray at least to re-examine the sale document with a view to possible action. “What can I do about it?,” he asked. “Well, I can go back to the sales purchase agreement and look at the rights that the Murray Group had.

“As much as Craig Whyte’s lawyers might challenge it, the Murray Group do have some recourse if indeed the terms of the sales purchase agreement were not upheld. They do have recourse with respect to unwinding the deal, writing off any investment he has put in the club etc.

“It will take expense and a lot of lawyering. I don’t know if Murray are up for the battle.

“But this is something that has to be looked it. There is language in the agreement that anticipates if he didn’t fulfil the terms of the sales purchase agreement that the Murray Group has a right of recourse. That’s something we have to look at.”

Reacting to Sir David’s statement, Paul Murray contradicted the assertion that “no viable alternative offers” to Whyte had been made, and said that his own offer had been sounder. “My proposal was different from Craig Whyte’s,” he said. “He offered to buy the club for £1, repay the debt, and take responsibility for the tax liability. I said that deal was wrong, because in 25 years’ experience I have never heard of a new owner assuming a tax liability.

“I proposed £25m to go into the club. I felt that the debt at the time was not unsustainable. I guess why my proposal was not accepted was because I thought the tax liability should go to MIH and the Bank of Scotland.”

Murray, who headed a consortium of like-minded supporters last year, hopes that a similar grouping this time can emerge, and offer an alternative future for the champions. “The only practical option is for anyone with an interest in Rangers to come together to form a consortium to buy the club. I would ask Rangers fans, both those who may only have a few pounds to invest and those with far larger sums: Do you want to be a part of that consortium?

“I was strongly opposed to Craig Whyte at the time of the takeover. My interest is still there. But it’s not about me buying Rangers; it’s about me and other interested parties – as many interested parties as possible.”

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