Bain sues Rangers for £1.3m over contract

LEAKED legal documents have revealed that Rangers Football Club is being sued for £1.3 million by former chief executive Martin Bain.

His lawyers yesterday called in the police after details of his alleged breach of contract case were posted on various football fan websites.

The club, which was taken to the Court of Session over unpaid legal fees on Friday, later claimed it was being targeted by a determined “whispering campaign” and played down fears over its finances.

The documents include new claims about the danger of the club becoming insolvent if it is forced to meet tax liabilities being pursued by HMRC. Bain is seeking loss of earnings and damages from the club.

Ibrox officials yesterday described recent reports of its financial affairs as “ludicrous” and the leaking of the documents as “illegal”, but blamed current problems on the “previous regime” at Ibrox, which was then presided over by Sir David Murray.

The club is being pursued by HMRC over tax liabilities said to date back around 12 years. According to the leaked papers, new owner Craig Whyte is facing about £49m in tax liabilities after taking the helm at Ibrox in the summer. It is claimed the club may “go under” if it loses its battles with HMRC, amid claims it will only be prepared to pay up to £15m. HMRC officers are said to have recently visited the club to warn that it faces being wound up if its tax liabilities are not met.

Bain resigned in late June, several weeks after being suspended in the wake of Whyte taking control of the club, and immediately announced he would be suing for breach of contract. His legal advisers and the Ibrox club say the papers, relating to an action raised at the Court of Session, have been leaked “illegally”. They were posted on several football fan websites yesterday.

Rangers were taken to the Court of Session last week by the Glasgow-based legal firm Levy & MacRae over an unpaid bill arising from the club’s defence against allegations of offensive chanting by its supporters.

Counsel for the firm told the court that there was “real concern” about the club’s solvency. Levy & MacRae is now representing Bain in his case against the Ibrox club. Bain’s lawyer, Peter Watson, last night said Lothian and Borders Police had been called in to investigate the apparent theft of the documents.

“This matter has been reported to Lothian and Borders Police. These documents have either been stolen or obtained by some other illegal means. They were not intended for the public domain,” Watson said.

A spokeswoman for Rangers said: “The problems Rangers Football Club is now having to deal with are historic and the chairman [Whyte] is committed to resolving the issues that are a direct and unwanted legacy of the previous regime.”