Leaders: Rangers FC in administration has implications beyond Ibrox
EVEN for dedicated football fans, the latest turn in the deeply troubled affairs of Rangers Football Club challenges comprehension as to motivation and consequence
It would be tempting to think that the move by Craig Whyte, the club’s majority owner, to file for administration is a matter of limited interest beyond creditors, the players and fans. But administration here has much wider implications. HMRC is owed at least £49 million, a sum accumulated over many years. The latest manoeuvres will be viewed as a critical test case that could set a pattern for other clubs in financial trouble.
For all the talk of “business as usual” and “no change for season ticket holders”, the club faces a ten point deduction if it does not come out of administration quickly, killing its prospects in the Scottish Premier League. More important, the ability of the club to retain existing players, still less buy new ones, will be severely constrained. And given the prominence that Rangers FC has enjoyed in Scottish football over many decades, this would have consequences right across the SPL. There is also the standing of the club as an important icon in the culture of the west of Scotland and indeed Scotland generally. Rangers may now be a private game between Mr Whyte and the HMRC now heading towards a penalty shoot-out. In truth, it is a very public game with wider ramifications.
If the circumstances leading to the filing of administration papers are labyrinthine, they are simple compared with what the outcome might be. For it is how the club emerges from administration that will be the real story.
The move towards administration comes ahead of a critical tax tribunal ruling over the disputed tax bill involving employment benefit trusts to pay players and staff. The virtue of administration to Rangers is that it acts as a debt moratorium, giving it temporary protection from creditors and a valuable breathing space. The club could use this to sell assets and try to force HMRC and other creditors to settle for a partial payment. Creditors representing 75 per cent of the debt by value must give their consent to any deal agreed. HMRC, with its obligations to other taxpayers, would be extremely reluctant to agree any wipe-out settlement on these lines.
A more radical solution would be for Whyte to transfer the club’s assets to a new company, together with the players, and apply to the football authorities for recognition. Not only would HMRC be extremely unhappy at being dumped, but there would also be many elements within the SPL who would contest it. What of all the money Rangers has received from European competitions in the past? Set against this, a ten point fine could be seen as laughable. And it would set a dangerous precedent for other stricken clubs to follow. Mr Whyte may see a wily way to dribble round the taxman. But the taxman is no mood to let football clubs dodge their liabilities. It is, as they say, “game on”.
Is Scotland big enough for Mr Salmond?
Imagine the fuss the SNP would make if a politician from England came north of the Border, quoted one of our great statesmen and lectured the Scots on how to run our country. There would nationalist outrage. That is exactly what Alex Salmond did last night, but in reverse.
The First Minister went to Merseyside to deliver a lecture in which he claimed the English regions would benefit from Scottish independence, with a rebalancing of power and responsibilities in the British isles.
With typical braggadocio, he echoed William Gladstone, who in a speech in Liverpool in 1886 said: “All the world over, I will back the masses against the classes.” Mr Salmond said: “All over England I will back the English masses over the Westminster classes,” repeating his view an independent Scotland would be “a beacon of social and economic progress”, which English voters might find attractive. He further suggested devolution within England, so issues like health were not run from London, though he said this was a matter for English voters.
Mr Salmond’s approach has difficulties on three counts. First, from a nationalist point of view, it contradicts the SNP’s view that politicians from one part of the UK should not interfere in another. Second, it assumes a common left-of-centre cause with English voters – maybe true for Merseyside, but not for the whole of England. Finally, it takes no account of the fact there is little demand for devolution within England – the North East rejected the idea overwhelmingly in 2004. This speech is Mr Salmond at his most bombastic – is Scotland, even independent, a big enough country for him?
Radio Scotland is on the wrong wavelength
Following its plan to scrap the Janice Forsyth show, BBC Scotland is to axe another radio programme. Mary Ann Kennedy’s Global Gathering, which showcases traditional and world music, is set to come off air after some 20 years. The decisions have a lot in common.
First, both programmes are hosted by popular and respected female broadcasters with significant followings. It would be no surprise if the decision to axe the Kennedy show, previously called Celtic Connections, met a similar outcry to that which greeted the bid to take Janny off the tranny.
Second, if the BBC believes these changes are necessary to be more innovative it is deluding itself. Forsyth’s slot will be taken by more sport and Kennedy’s will be filled by classical music. There is already plenty of sport on Radio Scotland, particularly football, and why put on classical music when the BBC already has Radio 3 and there is a commercial rival in Classic FM? If the plan was to broadcast performances by the likes of the RSNO or the SCO there might be justification but this does not appear to be the case.
No-one would argue Radio Scotland should never change, but these plans go against the wishes of the listeners who have no choice but to pay the licence fee. Is BBC Scotland in tune with the Scottish public it is there to serve?
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Comments
There are 12 comments to this article
Page 1 of 1
samcoldstream
Wednesday, February 15, 2012 at 08:10 PMAccording to BBC Scotland, over the past few weeks Alex Salmond has been in contact with both HMRC and Rangers regarding the club's predicament? It seems strange that a politician should interfere in a commercial matter between HMRC and a limited company? However, Salmond, is a well know football fan who supports Heart of Midlothian, but may well be taking the opportunity for some cynical electioneering. As already stated, the Scottish Local Elections are coming up and the Labour group on Glasgow City Council are hanging on by a thread and a group of de-selected Labour Councillors have caused a split in the party. It would indeed be ironic IF a Nationalist First Minister was seen to be working on behalf of Glasgow Rangers. One de-selected Glasgow Labour Councillor has already asked why Glasgow City Council have remained silent on this matter?
samcoldstream
Wednesday, February 15, 2012 at 07:55 PMRemember Celtic when it was mismanaged by a board of self-serving families who thought it was there divine right to siphon off unaccounted cash into "biscuit tins" for their own personal bank use. Many forget if it had not been for the wee man with the bunnet that Celtic could well have gone the same way as Rangers. Football clubs everywhere must have financial skeletons hidden away in the board room, and will be watching anxiously to see how HMRC treat Rangers administration. Yesterday, the less glamorous English Championship club Portsmouth Town FC went into administration for the second time in 2 years. Hearts managed to stave off HMRC by paying £500k back tax for the fourth time in 4 years. HMRC may well use Rangers as an example and there must be other football clubs about receive huge demands for unaccounted income tax and NI contributions from HMRC.
gus1940
Wednesday, February 15, 2012 at 09:49 AMRegarding justification for Eck making speeches in England it is quite clear from perusal of the London based media and the disgusting reader comments re Scottish Independence that there is widespread ignorance of the situation and that the population south of the border are being fed an even worse diet of lies and distortion than we receive form the Scottish media. ------------------------------------------------------------------------------------- Speeches by Eck can only be a partial solution to this campaign of misinformation as his coments will no doubt be twisted and misrepresented by said media but at least it is a step in the right direction.
gus1940
Wednesday, February 15, 2012 at 09:43 AMIt would appear that The Glasgow Broadcasting Corporation has morphed into the Rangers Broadcasting Corporation. How much longer are we going to be drowned in saturation coverage of this nonsense which is only of interest to a minority of the population at the expense of coverage of real news. If only Rangers and everything associated with them were to disappear form the face of the earth it would only leave the other lot to disappear and Scotland would be on the path to becoming a mature nation. Does this business not raise again the question of knighthoods and their removal?
McNasty
Wednesday, February 15, 2012 at 08:03 AMIf HMRC drives Rangers out of business they will force many supporters and their families straight into the hands of the SNP.
christelijk_recht
Tuesday, February 14, 2012 at 11:23 PMPending Moderation
THE SILVER CROC
Tuesday, February 14, 2012 at 06:23 PMThankfully due to HMRC's admittedly late intervention, White's (sic) tried and tested pre-packaged "slippery" Administration tactic looks likely to fail on this occasion. By dint of his premeditated actions regarding club assets, White may actually be guilty of attempting to secure a fraudulent preference in favour of none other than....... himself! Interesting to know the true role of so-called Operations Director Ali "Baba" Russell, and whether or not the well-known inanimate plonker will hang on to some or other kind of job under the Administrator. Quite a soap opera - albeit, one without any stars!
lebanon
Tuesday, February 14, 2012 at 04:21 PM....and by the way, Mr.Cameron is duty bound to represent all parts of the UK becuase that is his responsibility just as it was that of Brown and Darling so stop trying to make capital out of the benefit that the Prime Minister does not always come from the same part of the UK.
lebanon
Tuesday, February 14, 2012 at 04:17 PMJPJ2 - as always the SNP response is to abuse the messanger - the points the Scotsman makes in its Leader are completely valid. You may disagree with them but what is suggested is absolutely spot on with me. If anyone from outside Scotland dares to mention Scotland in a political speech the SNP and Mr. Salmond attack and say it is none of their business. I for one Scot am embaressed by the whining of the SNP and their politics of undermining. For example, the BBC is admired all over the world except inside the SNP who are hell bent on destroying it for their own aggrandisment. Mr. Salmond is going to go down in history as the Scot who left a deeply divided and unhappy country - whichever way the Referendum result comes out.
JPJ2
Tuesday, February 14, 2012 at 11:08 AM#1 Yes-MacPravda spins against the SNP and Salmond again.
.The Answer
Tuesday, February 14, 2012 at 07:39 AM#1...... thomas79............. He who pays the piper calls the tune ...........nobody forces scotland to take the English pound! ...... (54,000 Londoners pay more in income tax than the 5.2 million peoples of scotland)
thomas79
Tuesday, February 14, 2012 at 12:48 AM'imagine the fuss the SNP would make if a politician from England came north of the Border, quoted one of our great statesmen and lectured the Scots on how to run our country' ------- Hang on a minute, the UK Prime Minister is an English politician who has no mandate from Scotland and yet not only lectures us on running our country - but actually controls public spending in Scotland, welfare in Scotland and many other crucial areas effecting Scotland. Yet Salmond gives a speech in England and he accused of interfering.
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