Whyte forced to defend his investment in playing squad

RANGERS chairman Craig Whyte has denied using supporters’ money to fund his takeover and defended the decision to sell Nikica Jelavic to Everton as a good return on the club’s investment.

Whyte, now braced for criticism over the sale of his top goalscorer, saw transfer deadline day begin with newspaper revelations that more than £20 million had been borrowed in lieu of season ticket sales.

The businessman confirmed that fact but dismissed further claims that some of the money had been used to secure his deal to take control from Sir David Murray.

Whyte bought Murray’s stake for £1 in May last year but also agreed to pay Lloyds their debt of around £18 million while investing in the playing squad.

In an open letter published on the club’s website, Whyte said: “I can categorically assure supporters that when I launched a takeover bid for the club it was funded entirely from one of my companies and that was demonstrated clearly to the satisfaction of the previous owner, Lloyds Banking Group and professional advisers.”

Whyte, who inherited a potentially crippling and as yet unresolved tax claim when he assumed control, specifically denied reports that £5 million was owed in VAT on the advance income from season ticket sales. Whyte added: “What is true is that Rangers, like many other clubs, has a financing arrangement in place with a company called Ticketus which enables the club to receive revenue from a portion of season ticket sales in advance.

“There is nothing unusual or untoward in this arrangement which was put in place at the club long before my takeover last year and was used by the previous management. Money from season ticket sales goes directly to the club and is used for the club’s operations and that remains the case.”

Whyte hit out at former director Paul Murray, who alleged that fans had effectively paid for the sale of the club. Murray, who launched a rival bid before Whyte’s buyout, said he had seen documents relating to the tickets deal when being quizzed by officials from Her Majesty’s Revenue & Customs.

Whyte said: “I simply ask Rangers fans what these men did for Rangers in the club’s hour of need? They were all talk and no action and presided over the club as it careered to the brink of financial collapse.”