Rangers: Nightmare comes true for man who chased the dream at Ibrox

Yesterday, however, words failed to communicate one former football club owner’s sorrow at what had come to pass just a mile or so away. There was little literary flair in bleak paragraphs containing terms such as ‘top-tier tax tribunal’ and ‘financing and security arrangements’.

The fate of Rangers was sealed at Edinburgh’s Court of Session at shortly after 3pm, following the lodging of an intention to enter administration on Monday. Another burst of drama yesterday saw HMRC seek to appoint its own administrators. In the end, however, current owner Craig Whyte was given time to hand the task to Paul Clark and David Whitehouse from Duff and Phelps. It counted as a minor victory for the beleaguered Rangers owner. It meant little to Murray either way. Who had been given the task of restructuring Rangers’ finances was not important to him. Rather. the fact the club needed to appoint administrators at all is what prompted the former owner to break his silence on Rangers matters yesterday. He recognised he was also culpable.

Murray once dreamed of a time when the Ibrox club would not dominate his business life. He has not even known the comfort of a year without the strain which came to be associated with the club in the later years of his tenure.

Just ten months after Murray brought his 23-year reign to an end, Rangers had swung back into his orbit. He knew he had to address this latest development. Administration did not happen on his watch. However, he recognised that his reign is now defined by the actions of someone Murray was convinced could be trusted with Rangers’ future. “Words cannot express how hugely disappointed I am with news of today’s appointment of administrators to the Rangers Football Club PLC,” is how the statement opened. It was true. Words could not express it, certainly not the ones which were chosen yesterday.

Advised to bring some corporate clarity to the fast-developing situation, Murray’s emotions were hidden behind a shield of legalese. Given the limitations of such vocabulary, it was difficult for Murray to project the distress which he clearly felt on learning of Rangers’ new, diminished status. Murray didn’t make his money from Rangers, but the club has defined his professional life since 1988. He might regret ever responding to Graeme Souness’ suggestion that he train his sights on Rangers, following a failed bid to purchase Ayr United. He will certainly now wish he hadn’t agreed to sell his 85 per cent shareholding in the club to Wavetower, a company wholly owned by Whyte. According to yesterday’s statement, this is what he did “in good faith” in May last year.

Among the pledges made by Whyte was an agreement to take on the liabilities accrued from the recently heard tax-tribunal, with Rangers having fought a claim from HMRC extending to tens of millions of pounds. Murray has already accepted that the arrangements at the centre of this case were put in place when he was in charge. He knows that it will be a further stain on his reputation if the case is lost. The outcome will not be known for some weeks yet. There is nothing he can do about it now. Andrew Thornhill, QC, has already argued the case on Rangers’ behalf.

Murray, however, knows that there was something he could have done to prevent the situation where Rangers have elected to go into administration, even before the tax case verdict is known. This course of action, compelled, we now know, by HMRC’s fresh claim against Rangers for £9 million, is what took Murray by surprise, and led to him gathering his thoughts yesterday. If he hadn’t already suspected he had sold the club to the wrong individual, then he knew it now. He was also alert to the fact that a response from him was now all but compulsory.

The release of a statement from Murray was delayed while the drama unfolded at the Court of Session. At just after 4pm yesterday, Murray delivered his first meaningful words on last May’s takeover. They did not form a cutting critique of the man who some accuse of selling Rangers fans, and perhaps even Murray himself, down the river. The former owner has resisted heavily criticising Whyte on this occasion. It is understood Murray might be more outspoken in the days ahead.

What he has sought to make plain is that he won’t be riding to the rescue. Or at least, there is no legal requirement for him to do so. Some fans believe he has a moral obligation to deliver Rangers from not only the hands of the administrator, but also Whyte. It seems clear from the tone of the statement that Murray believes he has been duped into selling the club.

“Contrary to recent press speculation, there is no legal mechanism in the SPA [share purchase agreement] for MIH [Murray International Holdings] to reacquire the club,” said Murray.

Whyte might have failed in his obligations, as set out in his share offer document, but there is no legal avenue by which Murray can declare the transaction to be null and void. Instead, Murray’s post-sale involvement will be restricted, it seems, to various letters sent to Whyte seeking an assurance that he was complying with the various pledges he had given.

The circular sent out to shareholders by Whyte in June last year confirmed that the new owner was intending to fulfil such undertakings as settlement of the tax liability. Another assurance was obtained by Murray, on request, in early January. Following more worrying reports in the Press, specifically to do with season tickets having been mortgaged for four seasons’ hence, Murray asked for further clarification.

No response has been forthcoming. But then Murray received his answer yesterday in any case.

SIR DAVID MURRAY’S STATEMENT

Words cannot express how hugely disappointed I am with news of today’s appointment of administrators to The Rangers Football Club PLC (the Club).

The timing of the appointment of administrators is especially surprising given two facts. Firstly, there has been no decision, and there is no present indication as to the timing of a decision, from the first-tier tax tribunal concerning the potential claim from HMRC of £36.5million excluding interest and penalties. Secondly, legal opinion on the strength of the Club’s case remains favourable.

Following a protracted sale process over a three-year period, Murray International Holdings Limited (MIH) ultimately sold its 85 per cent controlling shareholding in the Club to Wavetower Limited (“Wavetower” now renamed The Rangers FC Group Limited), a company wholly owned by Craig Whyte, in good faith on 6 May 2011.

In addition, the share purchase agreement (“SPA”) imposed a number of obligations on Wavetower.

These included the retention of £9.5m on behalf of the Club for investment in the playing squad, expenditure on the infrastructure of the stadium and settlement of an agreed tax liability, together with the availability of working capital to fund the Club’s operations. The Shareholder’s Circular issued by Wavetower on 3 June 2011 confirmed these undertakings.

Contrary to recent press speculation, there is no legal mechanism in the SPA for MIH to reacquire the Club.

MIH wrote to Wavetower on 25 August 2011 seeking confirmation that its various obligations were being complied with. A confirmatory assurance was eventually obtained on 3 January 2012.

Following recent speculation concerning the financing and security arrangements put in place by Wavetower, a request was issued seeking further clarity. At the time of this announcement, no response has been forthcoming.

At the time of relinquishing control over the Club, MIH endeavoured to ensure the future of the Club through the various commitments and undertakings of Wavetower.

MIH received no consideration for the sale of its controlling shareholding, but instead agreed terms attaching to the sale of its stake in the Club to ensure an immediate and substantial improvement in the Club’s financial position, as well as a significant investment in the Club and its playing squad.

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 saddened 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 details of the proceedings were fully disclosed by the Club to Wavetower and Craig Whyte in the due diligence process.

EX-PLAYERS’ FEARS

“I’ve been through this 10 years ago at Motherwell and it’s carnage. Total carnage. Everybody will be fearful for their jobs because it’s the grim reaper time. I can’t believe it. I came here 26 years ago and never thought for one minute I would witness Rangers go into this kind of area”

Terry Butcher

“It is just a tragedy. Without pointing fingers at anyone, people have to hold their hands up and say they got their sums wrong in a very large way. I just think it is a case of chasing the dream and it has all come home to roost”

Graeme Souness

“Players are uncertain. I’ve spoken to a number of them already and they are concerned. Suddenly, contracts are perhaps not worth the paper they’re written on”

Fraser Wishart, SPFA

“It’s a horrible situation. At the minute I don’t think anyone’s looking to touch Rangers because it’s in such a bad way”

Neil McCann

“I have never been ashamed to be part of this club, never. But what has happened at Rangers these past few months has been cringeworthy. Ever since the news broke I have had a sickness in the pit of my stomach”

Derek Johnstone