Bain’s legal action is ‘breathtaking’, says angry Rangers owner

Rangers owner Craig Whyte has hit out at the club’s former chief executive, Martin Bain, after the court proceedings raised by the sacked member of the previous regime at Ibrox prompted a judge to declare that there is a possibility that Rangers could become insolvent.

Whyte has been angered by the public airing of the club’s affairs, and described Bain’s legal action as “breathtaking” because the former chief executive was in office when a possible multi-million-pound tax bill – pursued by Her Majesty’s Revenue and Customs and appealed by Rangers – was racked up.

Whyte yesterday hit out at claims relating to the solvency of the club and insists it is “business as usual” at Ibrox.

A judge ruled earlier this week that Rangers should set aside a sum of money to prepare for the event that Bain wins a claim of unfair dismissal against them.

Judge Lord Hodge froze £480,000 of Rangers’ cash at a hearing at the Court of Session in Edinburgh and said there was a “real and substantial risk of insolvency” if the club were to lose its battle with the taxman.

Rangers are involved in two separate cases with HMRC, both relating to payments made before Whyte took over as owner from Sir David Murray in May.

The club have not paid a £2.8 million tax bill which first emerged in April relating to payments made to staff from 1999 to 2003, but they are believed to be disputing a fine that goes with it. And an ongoing tax tribunal, which could cost the club up to £49m, will resume in November.

Concerns over the club’s solvency were also raised in the Court of Session in Edinburgh on Friday by Glasgow law firm Levy and McRae, who took action to secure payment of a £35,000 bill.

In a statement yesterday, Whyte said: “On behalf of the board of directors at Rangers I believe it is right and proper to inform our supporters of the true financial position of the club in the wake of the recent publicity, much of it generated with the sole intention of damaging this great football club.

“First, the board would like to make it absolutely clear that, at Ibrox, it is business as usual. The club is trading normally and has a strong balance sheet.

“The board finds it reprehensible that the law courts have been used in recent days to suggest the club is on the brink of insolvency. It is not.

“At the Court of Session yesterday during a hearing instigated by the former chief executive, Martin Bain, and his lawyers, the Judge, Lord Hodge, confirmed what has been already reported – that the club will face potentially serious consequences should the HMRC tax tribunal find against the club and recommend the imposition of an unmanageable liability.

“At this point the club’s advice from tax advisors has been that the club has a good chance of succeeding in the tribunal, but it would be wholly irresponsible not to consider the potential consequences for the club should the decision be made against us.

“No-one can say with 100 per cent certainty at this stage what the outcome will be – that is why there is a tribunal. I can say categorically that we will be fighting the club’s case most vigorously.

“We at the club note that during yesterday’s legal proceedings there was no mention of the fact that this potential liability from HMRC came to the fore on the watch of the previous regime.

“As chairman, I find it breathtaking that the former chief executive, who was in post when this issue emerged, has now sought fit to seek legal protection from its potential consequences.

“Much was made in court yesterday of the club’s dispute with the legal firm Levy & McRae yet no mention was made of the fact the club had raised a complaint with the Scottish Legal Complaints Commission with regard to a potential conflict of interest.

“Levy & McRae had acted for Rangers FC on many occasions and the club felt it was inappropriate for them to subsequently act against the club on behalf of the former chief executive. That matter is now with the Law Society of Scotland.”

Whyte assured supporters he will endeavour to ensure continuing success at the club despite warning of tough times ahead.

He added: “As I explained publicly earlier this week, Rangers FC faces challenging times ahead – as do many football clubs.

“The current costs of the club against existing and potential revenue streams make it imperative the club operates within its means. There can be very few businesses today that are not taking this outlook on life.

“This club has a great history and a great future – but we will have to work hard to achieve it.

“It is a great privilege to be the chairman of Rangers Football Club and I will do everything I can to ensure our team and supporters enjoy continuing success in the future.”