Rangers: ‘Crisis will soon be over and Rangers FC will survive’

They have spent 24 hours trying to reassure fans, players, police and tax officials. But Rangers chairman Craig Whyte – who ran up a £9 million debt with HM Revenue and Customs (HMRC) because of unpaid VAT and PAYE bills since taking over in May – refused to be drawn on the club’s future at the administrators’ London office last night

The 40-year-old businessman arrived by taxi for a 5pm meeting at the office in Portman Square. As he rushed into the building, Mr Whyte said he had “absolutely no comment to make, not at all”.

However John McFall, former chairman of the Treasury select committee in Westminster, called for him to be investigated by the Financial Services Authority (FSA).

“When you spend money you don’t have and you use HMRC and the taxpayer as your private bank, then it has tragic consequences for Rangers as an institution, Scottish football, fans and for Scottish community,” Mr McFall said.

“Rangers are on the Stock Exchange and there is a renewed case for the FSA looking at this issue. Parliament is just giving the FSA the opportunity to have what’s called judgmental discretion. That means looking at the business models of institutions, and Rangers is a good case.”

Mr Whyte is under growing pressure to explain how the club’s finances reached such a dire state, with fans demonstrating outside Ibrox.

Former director Paul Murray has proposed a supporter-backed takeover, which has proved popular with some fans.However, it would take 75,000 fans investing £1,000 each just to pay the £75m Mr Whyte believes the club will owe HMRC, if it loses the ongoing tax tribunal.

Despite the challenges, Andy Kerr, president of the Rangers Supporters Assembly, said there was a “desire for fans to be involved in ownership”.

Paul Clark and David Whitehouse, of Duff & Phelps, insisted they had made “very good progress” in their first 24 hours as administrators.

“We will be holding meetings with the staff on a weekly basis at least to inform them of developments. We are also in the process of speaking to representatives of supporters’ groups and that will be an ongoing process.”

They did reveal that the club had decided to postpone a Hall of Fame dinner and awards ceremony, which had been due to take place at the Glasgow Hilton, on Sunday, as the timing “was not considered appropriate”.

The club has received support from across the political divide.

First Minister Alex Salmond said: “The most important thing is to get a sensible agreement between Rangers and the HMRC about the extent of what is owed, and that Rangers be able to continue as a football club.

“There’s a tribunal that’s going to make a judgment in a few weeks’ time and it may take that tribunal to reach a decision before people can start to talk seriously about these matters.”

Shona Robison, minister for Commonwealth Games and sport, revealed she held talks with the administrators yesterday. She said: “In a telephone conversation with the administrator, I explained that we want to see an outcome in the best interests of Rangers staff, supporters and the game of football in Scotland as a whole, while enabling the club to meet its obligations.

“A key concern for us is the future of those employed by the club and the potential economic impact of administration.

“The government stands ready to offer assistance to anyone affected by implications for jobs and we will stay in contact with the administrator throughout the process to ensure we are informed of any developments.”

Former First Minister Henry McLeish warned that lessons must be learned from Rangers’ problems for the sake of the Scottish game as a whole.

Mr McLeish, who was commissioned by the Scottish Football Association in May 2009 to compile a review of the game north of the Border, said: “At the end of the day, the government agencies have got to do their job in their interests and we’ve got to do our job.

“That’s why it I think it’s critical that, apart from the short-term consequences of Rangers’ dilemma being tackled, we’ve got to look to the long term and we’ve got to learn lessons now about this whole issue of financial sustainability.”

The club was buoyed by a commitment yesterday from Tennent’s to continue as its main sponsor. A spokesman for the brewer said: “Tennent’s has invested in Scottish football for over 35 years, most recently as the main sponsor of Rangers and Celtic. As such we are saddened to hear the news.

“We have been assured that Rangers will continue to meet all of its fixture and contractual obligations and, if this is the case, our intention is that our sponsorship of the club would continue.”

Experts said at this stage they did not expect a takeover bid.

Stephen Morrow, senior lecturer in football finance at Stirling University, said: “It’s possible, but it’s unlikely, given the position of Whyte and that he is a secured creditor. If he owns more than 25 per cent [of the club’s debt] he could block it.

“At the moment he remains in a strong position because he has the security of £18m worth of obligation, that puts him in the strongest position to negotiate with the administrator.”