Rangers takeover: Powerbrokers left with nowhere to hide by damning report

The panel, which handed Rangers a 12-month transfer embargo, judged the club’s rule breaches second only to match-fixing in their severity and considered banishing the club from Scottish football. Here are other selected findings:

Sir David Murray

SIR David Murray sold Rangers to Craig Whyte at a time when his company Murray International Holdings was under “serious pressure” from their bankers HBoS (later became Lloyds) to reduce their £700million debt mountain. The sale of the football club paid off just £18m of that debt – only 2.5 per cent of the total they were in the red.

The Scottish Football Association’s report into the financial position of Rangers concluded that Murray was well aware of Whyte’s business failings when he made the sale.

Craig Whyte

A private investigation was commissioned by Rangers’ Independent Board Committee (IBC), which found that Craig Whyte was involved with numerous companies which were soon to be wound up owing thousands in unpaid taxes.

Rangers’ chief operating officer Martin Bain showed Murray the results of the investigation, the Rangers owner said he had little option other than to sell. Murray urged Bain to convince the board to back the sale.

The SFA report said Bain was initially apprehensive about raising his concerns about Whyte with Murray because he was worried about possible repercussions.

According to the report, Bain “took the view that once he had crossed the line there would be no way back”.

Bain met Murray in March last year and voiced his concerns that the Murray Group and the businessman himself had “lacked due diligence” when looking at Whyte.

But Murray said that pressure from the bank left him “almost no option” and asked Bain to get the approval of the IBC and the full board. According to the report, Bain refused to do so and the discussion of the subject with Murray “damaged” their relationship.

Chairman Alastair Johnson and the board asked Whyte where he would find cash to repair parts of Ibrox.

Whyte replied that cash had been lodged with his London solicitors Collyer Bristow and that proof of this had been shown to the Murray Group.

The board sought confirmation from Murray Group and were told that Collyer Bristow had provided proof of funds.

This confirmation by the Murray Group was accepted as sufficient proof by the IBC.

The role of the bank

Through Donald Muir, the man placed on the Rangers Board by Lloyds, the report stated that Lloyds were “extremely enthusiastic” about the sale to Whyte for the nominal fee of £1 in cash and clearance of the club’s debt.

As well as IBC and the board being pressured by Murray to sell, the chairman Alastair Johnson was under pressure from Lloyds.

Craig Whyte’s conduct was “intentional and calculated” if not illegal and had a “corrosive effect on the reputation of a proud club”.

The panel also criticised Whyte for refusing to come to Hampden to answer to the panel – a decision that was described as “scandalous and disgraceful”.

The panel added: “There are a number of aspects to his behaviour which will no doubt be the subject of continued investigation by appropriate agencies.”

Other Rangers figures

Financial controller Ken Olverman knew about instances of wrong-doing at the club, but decided not to go public with his concerns, the report said.

Former Rangers players John Greig and John McClelland were among the directors criticised for not reporting concerns to the authorities when they knew the club was in difficulties.